The FSA published guidance today explaining how authorised firms, individuals and products will...
The FSA published guidance today explaining how authorised firms, individuals and products will be transferred from the existing regulatory regime to N2, the new unified FSA regime later in the year.
The paper is called 'Preparing for N2: Grandfathering'. Grandfathering refers to the process where companies already holding regulatory status will not need to reapply for permission or approval again and can continue operating as usual.
David Kenmir, director of the FSA explained that although the grandfathering process is automatic in law, the regulations made by the Treasury require the FSA and firms to agree the precise terms of the firms' new permission.
Kenmir added: "In September we will be sending firms statements setting out their permissions. Firms will then have three months to agree them with us. However, our main aim will be to agree permissions by N2. So we are asking firms to send their responses to us by the end of October if possible. This will help us to resolve any issues in good time."
The guidance includes a timetable of what material companies and individuals can expect to receive over the transitional period and what they will be required to do.
The date when N2 comes into effect has been set at 1st December 2001 when the main provisions of the Financial Services and the Markets Act 2000 will take place, replacing existing legislation. This will unify the structure of financial regulation in the UK and will give powers to the FSA as the sole regulator of financial activities.
Preparing for N2: Grandfathering is available on the FSA website at www.fsa.gov.uk
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