FSA has published the first of several planned consultations on the transition to the new regulatory regime. This paper deals with the changes it plans to make at “legal cutover”,which it says will be only the changes necessary to implement the new structure, and other more fundamental changes. Many of the changes it proposes will mainly affect dual-regulated firms. The key proposals include:

  • changes to the General Provisions Sourcebook (GEN) to refer to the appropriate regulator and to amend the statutory status disclosure wording. However, the current licence to use the FSA logo will not carry over to the new regulators as FSA feels it is unnecessary (although firms will be able to use the Financial Conduct Authority (FCA) logo on their key facts documents). FSA proposes to give firms a six-month transitional period within which to make these changes;
  • changes to the Supervision Manual (SUP) to reflect:
    • the new powers relating to the use of Skilled Persons, and applications for variation of permissions from the appropriate regulator;
    • the new powers to grant waivers or modifications;
    • the changes in close links and controller notifications, mainly for dual-regulated firms;
    • changes to passporting requirements and to specify the appropriate regulator under the key Single Market Directives;
    • changes to notification requirements for dual-regulated firms and to reporting requirements; and
    • changes to the guidance on insurance business transfers;
  • changes to other parts of the Handbook, including a list of provisions that will be deleted or will be adopted by only one regulator.

FSA asks for responses by 12 December.(Source: Regulatory Reform: PRA and FCA Regimes Relating to Aspects of Authorisation and Supervision and Factsheet)