The FSA has released a 122 page bumper edition of the latest Quarterly Consultation (CP10/10).
Proposed changes in SUP include a rewording to SUP 10 Annex1 (FAQs) so removing the reference to up to seven business days the FSA allows itself to process an application for approved person status; guidance added to SUP 11 on when holdings need to be aggregated in determining controllers; and some changes to SUP 16 – Reporting requirements.
With regard to the latter it is mostly clarification but firms that are subject to the ICAAP requirement should note that the FSA 019 data return (‘Pillar 2 information’) will be more probing as a result of additional questions being included. Four of these relate to a wind down of the firm and ask about the costs and what length of time has been assumed for an orderly wind down. Although this is an area that should have already been addressed in the ICAAP, firms may wish to review the document to ensure that this is true so that, when the time comes, the additional questions can be answered.
Changes are proposed to BIPRU 12(Liquidity standards) which will be of relevance to ILAS firms that wish to adopt the simplified approach set out in BIPRU 12.6.
There are also changes to COBS 4 (Communicating with clients, including financial promotions).Mostly these simply involve rewording which the FSA believes helps clarify those rules applicable/not applicable to MiFID business. One change that may be of importance to some firms is in COBS 4.9 (Financial promotions with an overseas element).COBS 4.9.3(2) now places greater onus on a firm to satisfy itself that the overseas person in question will deal with retail clients in the UK in an honest and reliable way.