On October 26, the UK Financial Services Authority (FSA) published a further policy statement (PS07/18) on its conduct of business regime. The statement includes measures applicable to incoming firms from late-implementing EEA states and feedback on two previous consultations, CP 07/9 - Conduct of Business Regime: Non-MiFID Deferred Matters issued in May 2007 and CP 07/16 - Consequential Handbook Amendments issued in July 2007. The FSA stated that this Policy Statement "substantially completes" its consultation program arising from the implementation of the EU Markets in Financial Instruments Directive and its conduct of business reform. PS07/18 also addressed FSA’s proposals for mandatory telephone recording which had attracted widespread concern. The FSA stated that, in light of concerns expressed particularly about the cost-benefit analysis of its proposals, it would defer a final policy decision and rule-making until 2008, in order for further consideration, in discussion with industry, to be given to the issues raised by respondents to the earlier consultation.

 http://www.fsa.gov.uk/pubs/policy/ps07_18.pdf