Update

UK Business Conduct Regulation

	Look out for…

The latest edition of the FSA's Handbook Development newsletter (No 90), indicates, inter alia , that the following consultation papers, discussion papers and feedback statements, which are likely to be of interest to FOA members, are due to be published over the coming months:

* As explained in Handbook Development newsletter No 47, 3 star CPs are “high-profile consultations, and major policy changes affecting a large number of consumers or financial sectors,” 2 star CPs contain “other important policy changes” and 1 star CPs contain “minor changes.”

	Conduct of Business regime

Final feedback on CP06/19: Reforming Conduct of Business Regulation

The FSA has published final feedback on CP06/19: Reforming Conduct of Business Regulation.

The purpose of PS07/14 is to explain the FSA's "final decisions in the light of the agreement we have reached with the Commission on our Article 4 notifications, and to provide feedback on the responses to our Article 4 proposals as set out in CP06/19."

A copy of PS07/14 is available here

	PS07/15: Best Execution - Feedback on DP06/3 and CP06/19 (part)

The FSA has now published a Policy Statement - PS07/15 "Best Execution - Feedback on DP06/3 and CP06/19 (part) - which provides feedback on DP06/3:Implementing MiFID's best execution requirements and on the best execution section of CP06/19: Reforming Conduct of Business Regulation.

The Policy Statement:

•  comments on the remaining issues raised by respondents to these papers, referring where appropriate to the CESR Q & A on Best Execution under MiFID (a copy of which forms Annex 1 to the PS);

•  provides feedback on scope issues (e.g. fpr quote-driven markets and spread betting and CFDs), referring where appropriate to the Commission's opinion on scope (which forms an appendix to the CESR Q&A); and

•  considers how MiFID's best execution requirements might apply to particular specialist regimes.

A copy is available here

	CP07/16: Consequential Handbook Amendments (including proposed extension of scope of new transaction reporting requirements

The consultation period for the majority of CP07/16: Consequential Handbook Amendments (arising from implementation of MiFID and creation of NEWCOB ), closes on 14th September. A copy of the CP is available, please click or see:
http://www.fsa.gov.uk/pubs/cp/cp07_16.pdf

A joint associations' response has been submitted on the Post-trade transparency and trade data monitors proposals in Chapter 6 of the CP, which had an earlier deadline: this response foreshadows some of our concerns in respect of the proposal in para 5.3 of Chapter 5: Transaction Reporting:

"to extend new SUP 17.1.4 to ensure continued reporting of transactions in instruments admitted to trading on exchanges outside of the EEA the value of which is derived from, or otherwise dependent upon, an equity or debt related instrument admitted to trading on a UK regulated market or prescribed market."

Members wishing to submit feedback on CP07/16, in particular on Chapter 5 should email Jane Green and Devrim Baki as soon as possible.

	Have you read…?

	CP 07/10: Notification Obligations under the Investment Exchanges and Clearing Houses Act

The FSA proposes in CP07/10 to make amendments to

•  the Recognised Investment Exchanges and Recognised Clearing Houses sourcebook (REC); and

•  related definitions in the Glossary of definitions;

by introducing:

•  notification obligations for rule changes proposed by recognised bodies; and

•  rules on the form of notification and information in support.

Members wishing to submit feedback on CP07/10 should email Jane Green and Devrim Baki as soon as possible.

A copy is available, please click here

	CP07/17: Integrated Regulatory Reporting (IRR): Changes to reporting requirements affecting most firms

The FSA proposes in CP 07/17 to introduce new data items for integrated reporting related to a number of topics of which the following may be of particular interest to members:

•  Internal Ratings Based (IRB) portfolio risk (FSA045);

•  Securitisation (FSA046); and

•  Sectoral information and arrears (FSA015) and asset and deposit maturity (FSA044).

Members wishing to submit feedback on CP07/17, in particular chapters 5, 6 and 7, should email Simon Andrews and Devrim Baki as soon as possible.

A copy is available, please click here

Financial Services Skills Council consultation on National Occupational Standards for Wholesale Securities and Derivatives Distribution.

The FOA and LIBA have responded jointly to the Financial Services Skills Council consultation on National Occupational Standards for Wholesale Securities and Derivatives Distribution. A copy of the response is available from the website. Click here