The Financial Services Authority says it is delaying changes to the FSA Handbook on Training and Competence and the Approved Persons regime as a proposed EU directive could affect regulatory rules.
The FSA had been expected to publish a policy statement today detailing changes to its handbook, as part of its promise to review some rules governing T&C and APs.
However, a statement just issued by the regulatory authority reveals those decisions are being hindered by implementation of the Markets in Financial Instruments Directive and the FSA cannot make the necessary changes until the European Commission has decided what MiFID rules will be.
“Today's Policy Statement does not include feedback on [T&C and Approved Persons] proposals. This is due to the need for the FSA to take into account the possible developments in the European Commission's measures in implementing the Markets in Financial Instruments Directive and the impact this may have on the two regimes. The FSA expects to publish feedback on these issues once the European position is clear and they have been able to determine how it may affect what they should do,” says the FSA statement.
Industry sources say the latest draft of MiFID proposals is now overdue, and has affected the FSA’s timetable for regulatory reforms as a result.
It is anticipated the earliest formal publication of MIFID proposals could now be June, providing rules are put in front of EU Parliament by March and the subsequent consultation is completed in time.
Alterations to the retail Conduct of Business regime will also be published later this year - despite being part of the original CP O5/10 discussion - as a separate consultation.
While two aspects of FSA handbook reforms have been delayed, some alterations have been made to the anti-money laundering rules, says the FSA, removing the use of the ML book in favour of senior management high-level 'principles'.
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