FSA’s latest quarterly consultation includes proposals to:

  • amend the Senior Management Arrangements, Systems and Controls sourcebook (SYSC) to require financial conglomerates to include recovery and resolution arrangements and plans within their risk management process;
  • amend the appropriate qualifications for undertaking pensions transfer activity and managing investments, and to explain its approach to reviewing examination standards;
  • make minor changes to the liquidity rules in the Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU) and guidance on liquidity reporting in the Supervision Manual (SUP), which will change the definition of a small- and medium-sized enterprise deposit, change the treatment of collateral held with a central bank in excess of requirements and clarify reporting guidance;
  • broaden the scope of “settlement decision makers” in enforcement cases and, if respondents agree, make appropriate Handbook changes;
  • amend Collective Investment Schemes Sourcebook (COLL) in relation to:
    • the rules on funds of alternative investment funds within Non-UCITS Retail Schemes;
    • winding-up rules for investment companies with variable capital;
    • new guidance on syndicated loans as permitted investments for authorised funds; and
    • consequential changes stemming from UCITS IV;
  • amend the Disclosure and Transparency Rules (DTR) to clarify an issuer’s duties in respect of notifications of voting rights received from investors;
  • amend the Perimeter Guidance Manual (PERG) to clarify that sale and rent back activities require FSA authorisation, even where they are not the relevant firm’s main business; and
  • amend SYSC to ensure that voiding rules, which say that provisions of contracts that breach certain provisions of the Remuneration Code are void, are limited to firms of systemic importance and with higher risk business models.

FSA needs comments on these respective proposals within certain dates between 6 October and 6 December. (Source: FSA Consultation Paper 11/18*)