FSA has published its final rules extending its common platform principles to firms that fall outside the scope of MiFID and the CRD. Its idea was to apply the same requirements to both "scope" and "non-scope" firms, but to treat the requirements only as guidance for non-scope firms. Many respondents to CP07/23, especially the seven trade associations that commented, were worried supervisors would treat the so-called guidance as binding rules. FSA has stressed this is not the case – if appropriate, non-scope firms may meet FSA’s expectations on high-level systems and controls by complying with the guidance. However, they may also comply by other methods. FSA has agreed to highlight this even more in its final form rules. Other comments respondents raised, with which FSA disagreed, were:
- non-scope firms would now have fewer certain rules;
- FSA was trying to extend MiFID without giving its proposals proper consideration; and
- the plans would push more firms to outsource compliance.
The paper gives FSA’s response to comments it received and confirms its plan to make rule changes as proposed. FSA has agreed to give firms more time to comply with the rules as it wants them to concentrate on dealing with the current turmoil and meet the yearend TCF deadline. So it has made new rules that will come into force on 1 April 2009. They amend mainly SYSC, but also APER, FIT, MIPRU, IPRU(INV), IPRU(BSOC), COBS, ICOBS, SUP, COLL, CRED, ELM and PERG.