At FSA's September and October Board Meetings, it made several sets of new rules:

  • the Mortgage Market Review (MMR) (Conduct of Business) Instrument 2012: this takes effect on 26 April 2014 and implements the MMR into FSA rules. It amends several parts of the Handbook, including making significant changes to the Mortgage and Home Finance: Conduct of Business Sourcebook (MCOB).  See FReD 26 October for further details of the MMR reforms;
  • the Prudential Sourcebook for Mortgage and Home Finance Firms and Insurance Intermediaries (MIPRU) (Non-Bank Lenders) Instrument 2012: this also takes effect on 26 April 2014 and amends the Glossary and MIPRU in respect of capital requirements for non-bank lenders. The new rules, part of the MMR reforms, will apply the same requirements for credit risk, credit risk mitigation and securitisation to non-bank lenders as apply to banks and building societies, and will introduce new requirements to improve loss absorbency and liquidity;
  • the Short Selling Regulation Instrument 2012: this took effect on 1 November 2012 and amended several parts of the Handbook, particularly the Financial Stability and Market Confidence Sourcebook (FINMAR). It repeals the former domestic short selling regime and replaces it with requirements on firms that allow the UK to comply with the EU-wide regime;
  • the Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU) (Large Exposures) (Amendment) Instrument 2012: this took effect on 2 November 2012 and amends BIPRU in respect of assessments of groups of connected clients. The change brings FSA rules closer to European Banking Authority (EBA) guidance on the term;
  • the Capital Requirements Directive (Handbook Amendments No 5) Instrument 2012: this also amends BIPRU from 1 November. It amends BIPRU 13.7.6R in respect of the three legal conditions a contractual netting agreement must satisfy in order to be considered a valid agreement. As all conditions must be satisfied, the change replaces the word "or" with "and" between the conditions;
  • the Prudential Requirements for Insurers (Amendment No 6) Instrument 2012: this amends several prudential sourcebooks relevant to insurers from 31 December 2012 ‏in respect of increases in base capital resources requirements. The changes take account of European Commission changes to amounts under relevant directives that reflect changes in the European index of consumer prices;
  • the Conduct of Business Sourcebook (COBS) (Pension Transfer Value Analysis (TVA)) (Amendment) Instrument 2012: this amends COBS from 1 January 2013. The changes amend the rules and guidance on TVA assumptions;
  • the COBS (Projections) (Amendment) Instrument 2012: this also amends COBS from  6 April 2013 and 6 April 2014 respectively to change projection rates;
  • the COBS (Pension Scheme Disclosure) Instrument 2012: this also amends COBS from 6 April 2013 to require firms to provide information to help consumers and advisers understand the costs and benefits of different pension options;
  • the Client Assets Sourcebook (CASS) (Firm Classification, Operational Oversight, and Mandate Rules 2012: this amends CASS, the glossary and the Supervision Manual (SUP) from 1 January 2013. The changes clarify the requirements of Chapters 1A and 8 of CASS, and improve the guidance on the Client Money and Assets Return (CMAR);
  • the SUP (Remuneration Reporting) Instrument 2012: this amends SUP, the glossary and the Senior Management, Systems and Controls Sourcebook (SYSC) from 1 November 2012 on the collection of data on remuneration practices for sending to EBA;
  • the Recognised Auction Platforms (RAPs) (Penalty and Censure Policy) Instrument 2012: this amends the Decision Procedure and Penalties Manual (DEPP), the Enforcement Guide (EG) and the Recognised Investment Exchanges and Recognised Clearing Houses Sourcebook (REC) from 1 November 2012. The amendments reflect a change to the RAPs Regulations that gives FSA power to penalise or censure RAPs that breach certain rules; and
  • the Financial Crime Guide (FC) (Amendment) Instrument 2012: this amends FC from 1 November 2012. See separate item below.

FSA has also published feedback statements on many of the changes. (Source: Handbook Notice 124, Data Collection on Remuneration Practices, CP 12/19 – Personal Pensions, Policy Statement 12/17 Product Projections and Transfer Value Analysis and Policy Statement 12/20 – CASS Firm Classification, Oversight, Reporting and the Mandate Rules)