The FSA has published Policy Statement 07/18: Conduct of Business Regime (PS07/18). In PS07/18 the FSA sets out feedback on:

  • Consultation Paper 07/9: Conduct of Business regime: non-MiFID deferred matters.
  • Consultation Paper 07/16: Consequential Handbook Amendments.
  • The FSA’s proposed measures for incoming firms from late implementing EEA States (published as part of the updated MiFID Permissions and Notifications Guide).

Some the key feedback in PS07/18 includes:

  • On telephone recording the FSA has decided to defer final policy decisions and rule making until 2008.
  • On rights under section 150 Financial Services and Markets Act 2000 (section 150 rights) the FSA proposed in CP07/9 that private persons should have a right of statutory action in relation to breaches of all of the rules in the New Conduct of Business sourcebook. The FSA has decided that such rights should apply with one exception. The FSA will modify section 150 rights for the MiFID derived rule that requires firms to ensure that all their communications to clients are fair, clear and not misleading. Section 150 rights will only apply if firms have not taken reasonable steps to ensure this outcome.
  • The FSA’s proposed measures for incoming firms from late implementing EEA States that were set out in the updated Permissions and Notifications Guide received strong support and have been implemented unchanged. The FSA believes that these measures are also consistent with the CESR Statement on practical arrangements regarding the late transposition of MiFID.

View Policy Statement 07/18: Conduct of Business regime, 26 October 2007