Companies have been given seven months to switch over to the FSA's new conduct of business rules, wh...
Companies have been given seven months to switch over to the FSA's new conduct of business rules, which come into effect from midnight on November 30, 2001. Most firms will have until 30th June 2002 until they have to adhere to the new regime.
The new rules apply to all regulated firms and govern how firms interact with their customers. The FSA has supplied transitional provisions to help firms achieve a smooth transfer from the previous regulatory regimes to its new one. Firms will not have to reissue documents relating to their customers.
Michael Folger, Director, Conduct of Business Standards said: "The seven month grace period from the introduction of the conduct of business rules in November represents a good balance between allowing firms time to complete the transition and ensuring that consumers can be clear about the regulatory standards which apply. The transitional rules should help reduce the paperwork associated with the changeover and enable firms to concentrate their compliance resources in areas of genuine benefit to consumers."
There are special arrangements for professional firms that need to come under FSA authorisation to continue doing investment business. The key feature of this is that professional firms will be allowed more time to complete preparations.
The detailed rules are set out in the FSA's policy statement "Transitional arrangements for the Conduct of Business Sourcebook" which can be found at www.fsa.gov.uk
SLA's share price has almost halved since merger
Three shifts in sector
Takeover rumours continue
Raised £116m in total
Protecting and dividing family wealth