The period of grace allowed to advisers for transition to the FSA's N2 regulatory regime governing...
The period of grace allowed to advisers for transition to the FSA's N2 regulatory regime governing the interaction between firms and their clients, closes on 30 June.
Put in place for N2, the date last year on which the FSA assumed its full powers, the period of grace was designed to allow firms a reasonable period of time to switch from the old regulatory regimes they worked under to the new FSA rules.
During this period intermediary firms have been immune from enforcement action under the Conduct of Business Rules. After 30 June, adhering to the old rules will no longer protect a firm.
As well as the requirement for firms to reconcile client records with product providers every 25 days, as reported in Investment Week in May, a whole new raft of rules will apply.
These cover the revised standards for terms of business with clients and client agreements, client classification, as well as the revised rules covering financial promotion, client money rules and commission disclosure.
Despite the requirement for terms of business to be written under the revised rules from 30 June, terms of business with existing clients do not have to be altered, unless the client specifically requests it.
The rules, set out in the FSA's Conduct Of Business Sourcebook, are available online at www.fsa.gov.uk.
Three years at Wells Fargo
Effective from 9 December 2019
One firm with permission suspensions left
Continuing the Architas education series for clients.
Needs to apply for authorisation