FCA publishes CRD 4 reporting update: FCA has published a new page on its website explaining the 317 new validations it and PRA will activate in respect of reporting under CRD 4 on 17 December. The page explains how validations will be applied and when FCA may ask firms to resubmit files. (Source:FCA Publishes CRD 4 Reporting Update)
FCA publishes quarterly consultation: In FCA's latest consultation, it proposes:
- changes to the rules in chapter 16.6 of the Supervision Manual on compliance reports, by removing the requirement for occupational pension scheme firms to submit compliance reports;
- changes to the Prospectus Rules to implement changes in the Prospectus Directive on final terms;
- to revoke the Building Societies Regulatory Guide, and merely move those parts of it still within FCA's remit to its page on building societies; and
- changes to the Training and Competence Sourcebook (TC) list of appropriate qualifications.
It asks for comment on the TC changes by 5 January 2015 and on the other proposals by 5 February 2015. (Source: FCA Publishes Quarterly Consultation)
FCA consults on simplifying MIPRU: FCA is consulting on changes to its rules to simplify the Prudential Sourcebook for Mortgage and Home Finance Firms and Insurance Intermediaries (MIPRU). It proposes to simplify MIPRU 4 in respect particularly of the credit risk capital requirements for non-bank lenders. In particular, it proposes to remove all current references to rules in the Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU) currently in MIPRU, while keeping the same policy overall. It asks for comment by 19 January 2015. (Source: FCA Consults on Simplifying MIPRU)
FCA publishes Davis review and response: FCA has published the review by Simon Davis into the handling of FCA’s announcement of proposed supervisory work on the fair treatment of long-standing customers in life insurance. The report makes significant criticism of FCA. It says its intentions in speaking to the press about its proposed work were well meant, but were carried out badly, with poor supervision and control, and that FCA's response when the strategy failed was badly controlled and did not come up to the standards it would expect of its regulated community. The report considers in detail FCA's objectives, its business plan and why it decided to brief media. It also looks at why FCA did not consider its actions might amount to price-sensitive information and its reaction when publication had an effect on life insurance company shares. It looks at the responses of key FCA personnel, and makes several recommendations for change. It addresses accountability of all FCA senior figures involved, but stresses the author believes they all intended to act in the best interests of FCA, firms and consumers. The key conclusion is that there was lack of necessary communication between several members of FCA senior management. The recommendations include that FCA should now appreciate that thematic review announcements may contain price-sensitive information. FCA welcomed the report and said it would act on the recommendations. (Source: FCA Publishes Davis Review)
FCA adopts new strategic approach: FCA has carried out a review of its structure and will introduce a new structure and strategic approach from 6 January 2015, to be fully in place by April 2015. Key changes in the approach will see:
- the Authorisations and Supervision Divisions combining, alongside specialist supervision functions such as financial crime and client assets. This will be split into two divisions, one for large firms and one for small. Tracey McDermott will manage this transition and one of the new divisions;
- Christopher Woolard will lead a new Strategy and Competition Division;
- there will be a new Risk Division, of which Richard Sutcliffe will be the acting Director;
- David Lawton will lead a new Markets Policy and International Division;
- Marc Teasdale will lead a Market Oversight Division, which will incorporate FCA's UKLA and Market Monitoring functions. Other specialist market supervision functions will be part of the supervision function.
(Source: FCA Adopts New Strategic Approach)