At FSA's February Board Meeting, it made the following new rules:

  • the Prudential Sourcebook for Insurers (Amendment No 2) Instrument 2011 amends INSPRU from 6 March to clarify the rules on elimination of reciprocal financing when insurers calculate group capital resources;
  • the Market Conduct Sourcebook (Amendment No 10) Instrument 2011 amends MAR from 6 March to remove the evidential provision in MAR 1.3.4 so MAR is consistent with the European Court of Justice's decision in the Spector case;
  • the Decision Procedure and Penalties Manual and Enforcement Guide (Amendment No 2) Instrument 2011 amends the Glossary, General Provisions (GEN), DEPP and EG from 6 March to state a firm must not pay a financial penalty imposed on an employee and generally to update on FSA's enforcement policy. FSA also published a Policy Statement on the DEPP and EG review;
  • the Collective Investment Schemes Sourcebook (Winding Up and Sub-fund Termination and Miscellaneous Amendments) Instrument 2011 amends COLL from 6 March to align requirements on winding up or termination of authorised unit trusts and to clarify how FSA expects firms to report to it under this process;
  • the Employers' Liability Insurance: Disclosure by Insurers Instrument 2011 amends the Insurance: Conduct of Business Sourcebook (ICOBS) and the Supervision Manual (SUP) from 6 March to require insurers offering employers' liability insurance to provide appropriate details so potential claimants can trace insurers and claim compensation. FSA has also published a policy statement following its consultation on these changes; and
  • the Banking: Conduct of Business Sourcebook (Amendment No 2) Instrument 2011 amends the Glossary and BCOBS from 6 March to give guidance to deposit-takers on exercising rights of set-off.

(Source: FSA 10/8 – 13, PS11/3: Decision Procedure and Penalties manual and Enforcement Guide review, PS11/4: Tracing employers' liability insurers and Handbook Notice 107)