As a result of recent changes announced by HM Treasury to the Senior Managers and Certification Regime, the FCA has published a consultation paper setting out a number of proposed technical rule changes.
These changes reflect the removal of the requirement on firms, as set out under section 64B(5) of the Financial Services and Markets Act 2000, to report known and suspected breaches of its Rules of Conduct to the FCA.
As part of these changes it is amending the associated forms to remove references to notifications of known and suspected rule breaches. The forms will only require firms to inform the FCA of disciplinary action taken against staff as a result of breaches of one or more Rules of Conduct. The pre-existing obligation to report material breaches of its rules under SUP15.3 of its Handbook will however remain. Firms will still therefore be required to notify the FCA of the most serious issues concerning their staff.
Comments should be submitted to the FCA by 5 February 2016. The FCA will then consider feedback and publish its rules in a Policy Statement in March 2016.