FCA makes new rules

FCA has published new rules on:

  • conduct of business in what it refers to as “speculative illiquid securities” (taking effect on 1 January 2020 and 1 December 2020). These rules create a temporary product intervention to restrict marketing of certain high risk investments to retail investors.  The changes to various parts of COBS will permit promotion only to HNW and sophisticated investors for whom they are suitable, and will require enhanced risk warnings and disclosures;
  •  conduct of business rules on switching of platform investments (taking effect at the end of July 2020), to make it easier for consumers to switch between platforms and minimse the risks of them incurring losses or tax liabilities;
  • changes relating to the AIFMD (taking effect on 1 January 2020) to help firms submit better information to FCA; and
  • changes to fees for AML supervision (taking effect immediately).

Emma Radmore