PS07/4: Reforming the Approved Persons Regime - Feedback on CP06/15 (Merging the Customer Functions) and final rules

In August 2006 the FSA published Consultation Paper 06/15, Reforming the Approved Person Regime. The Consultation Paper was divided into 3 parts which:

  • Set out proposals to simplify the Approved Persons regime.
  • Described the impact of the Markets in Financial Instruments Directive on the Approved Persons regime and set out proposals for action to be taken.
  • Set out proposals to merge the existing customer functions (CF21 to CF27) into one generic customer function (CF30). The FSA has now published Policy Statement 07/4, Reforming the Approved Persons regime which focuses on the proposal to merge customer functions and includes final FSA Handbook text.

The FSA has now published Policy Statement 07/4, Reforming the Approved Persons Regime - Feedback on CP06/15 (Merging the Customer Functions) and final rules. The FSA states in PS07/4 that there was strong support for its proposal to merge the customer functions and it will proceed on the basis outlined in CP06/15. The FSA also reports that by deleting CF7 (Sole Trader function) from 1 February 2007 and by its continuing work on better regulation it believes that it can disapply other relevant controlled functions to the Sole Trader community. The FSA will be performing a cost benefit analysis and if the benefits outweigh the costs it will consult in the April 2007 Quarterly Consultation Paper with a view to implementing on 1 November 2007.

CP07/4: The Training and Competence Sourcebook Review

The FSA has published Consultation Paper 07/4: The Training and Competence Sourcebook Review. CP07/4 seeks views on proposals to introduce a more outcome-focused Training and Competence (T&C) regime, including a new and significantly shorter Training and Competence Sourcebook for retail firms only. It reflects the outcome of the review of the current T&C requirements which the FSA has been undertaking as part of the general FSA Handbook Review. The closing date for responses on the consultation is 23 May 2007.

Annotated presentation of regulated markets and national provisions implementing relevant requirements of ISD

In the Official Journal of the European Union there has been published an annotated presentation of regulated markets and national provisions implementing relevant requirements of the Investment Services Directive. The list that has been published in the Official Journal of the European Union indicates the title of the individual markets which are recognised by national competent authorities as complying with the definition of ‘regulated market’. In addition it sets out the entity responsible for managing these markets and the competent authority responsible for issuing or approving the rules of the market.

FSA plans would give foreign firms an easy ride at expense of UK investors

The Consumer Panel has written to the FSA to express their views on the proposals to amend the Stock Exchange Listing Rules for offshore investment companies. The Consumer Panel expresses the concern that the FSA’s proposals will threaten to undermine investor protection for the sake of attracting non UK based companies to list in the UK.

The Chairman of the Financial Services Consumer Panel stated:

"We think that, with its current proposal, the FSA is at risk of making a serious mistake that will be damaging for investors and damaging for the confidence of the market. Indeed, a consequence would be that there would be a lighter touch regime for the companies which pose the greatest potential risk for investors – a reversal of the FSA's normal risk-based policy."

FSA acts to stops UK firm from assisting overseas boiler rooms

The FSA has published a press notice stating that the High Court has placed Inertia Partnership LLP (Inertia) into compulsory liquidation. The press notice states that the order was made against Inertia as a result of a winding-up petition presented by the FSA on the basis that the company assisted boiler rooms that were unlawfully promoting and selling shares to UK customers.

AIC Conference - keynote speech

On 27 February 2007 Dan Waters (FSA Sector Leader for Asset Management) gave the keynote speech at the AIC Conference. In his speech Mr Waters discusses more principles based regulation and the FSA’s consultation on the listing regime for investment entities. 

FSA imposes a public censure on Cathedral Motor Company Limited

The FSA has issued a Final Notice to Cathedral Motor Company Limited (trading as Arbury). The Final Notice relates to the FSA imposing a public censure on Cathedral Motor Company Limited for failures relating to its sale of Payment Protection Insurance in connection with vehicle finance agreements.

FSA fines investment firm £14,000 for 'income withdrawal' failings

The FSA has issued a Final Notice to Regency Investment Services Limited (Regency). The Final Notice relates to the FSA imposing a fine of £14,000 on Regency in respect of breaches of the FSA Principles for Businesses and related FSA Rules between January 2005 and March 2006. The breaches related to Regency for not collecting sufficient personal and financial information from customers with small pension pots before advising them on income withdrawal.