In FSA’s latest quarterly consultation on minor changes to the FSA Handbook, it is consulting on:

  • changes to the Conduct of Business Sourcebook (COBS) and Glossary in respect of the Retail Distribution Review (RDR) exemption for some, but not all, Holloway sickness policies;
  • changes to the Senior Management Systems and Controls Sourcebook (SYSC) to make the rules on voiding and recovery in Chapter 19A consistent with how FSA applies the remuneration principles proportionality rule;
  • changes mainly to SYSC to reflect the revised Basel Core Principles in respect of transactions with related parties;
  • updates to the Training and Competence Sourcebook (TC) in respect of appropriate qualifications;
  • changes to the RDR adviser charging and remuneration rules in relation to referrals to discretionary investment managers (DIMs). FSA says the amendments are intended to clarify that adviser firms should not be remunerated by, or receive commissions, remuneration or benefit of any kind from, DIMs for referrals to the DIM, or for any other activity the adviser firm may perform for a client in relation to its investments being managed on a discretionary basis;
  • changes to COBS to clarify that a cost-neutral approach is not prohibited for new business in a with-profit fund;
  • changes to various parts of the Handbook to make necessary clarifications and deal with out-of-date references;
  • changes to the Enforcement Guide (EG) and Decision Procedure and Penalties manual (DEPP) to introduce investigation and enforcement powers for financial and non-financial counterparties under the Regulation on OTC Derivatives, CCPs and Trade Repositories (the European Market Infrastructure Regulation or EMIR) and the EMIR statutory instrument, which Treasury plans to make. FSA says only minor changes to its Handbook will be necessary to implement EMIR. FSA also plans changes to the Recognised Investment Exchanges and Recognised Clearing Houses Sourcebook (REC) to set out how parts of the current regime will interact with EMIR and EMIR SI. FSA wants to make these changes in early 2013, to coincide with the new UK regulatory structure taking effect; and
  • changes to the Listing Rules (LR) for depositaries issuing global depositary receipts and the appointment of a sponsor for the submission of supplementary circulars.

FSA asks for comments by 5 November for around half the proposals, and 5 December for the others. (Source: Quarterly Consultation Number 34)