FCA publishes quarterly consultation

FCA’s latest quarterly consultation, quarterly consultation no.16 proposes changes to:

  • DEPP and EG reflecting the FCA’s powers following the Bank Recovery and Resolution Order 2016:  these would set out the decision-making procedure to be followed for decisions made under the amended sections of FSMA by the BRR order around removal of directors, senior executives and managers;
  •  MAR relating to ESMA’s guidelines on commodity derivatives: FCA proposes to add two signposts to the commodity derivative guidelines in MAR, and to update guidance to mirror the definition of inside information in article 7(1)(b) of the Market Abuse Regulation;
  • SUP and EG arising from the extended Immigration Act provisions: SUP 16.19 and the FIN-A form will be amended to require firms to comply with the new immigration checks. EG 19.29 will also be amended to include regulating compliance with this new requirement; 
  • PR 1.2.3R in anticipation of the Prospectus Regulation coming into force and minor consequential amendments: FCA proposes to amend relevant rules to refer  to the new exemptions in the Prospectus Regulation and update other references to it and to the ESMA FAQs; 
  • REC 3.9 and MAR 5.6, and minor amendments to REC 2.3. FCA proposes to make amendments to reflect proposals to introduce a standard template for the notification of liquidity incentive schemes (in relation to RIEs and MTFs respectively);
  • COBS and MCOB to improve firms’ communication with consumers: FCA plans new Handbook guidance to clarify that firms can provide relevant information to consumers in addition to the information they must provide in required disclosure documents. New guidance in COBS 14.2 will clarify FCA’s view that firms are able to provide information to consumers at pre-purchase or point-of-sale stages (including, but not limited to, face-to-face discussions) which is in addition to the information in the relevant required disclosure documents. FCA is also consulting on the removal of the prescribed text in MCOB 7.5 regarding risk warnings on interest-only mortgages;
  • FCA regulatory reporting requirements. FCA plans to correct the reporting requirements for consumer credit firms. .

Comments are due by 3 April except for those to refer to the new Prospectus Regulation exemptions, which are due by 3 March.



Emma Radmore