FSA to develop ‘consistent’ policy for RDR waiver requests
Discussion Paper due to be published this year will set out options to make it easier for the FSA to refuse approved persons applications.
As most of you will know the FSA published probably its last Business Plan at the end of March. Like previous Business Plans there are some nuggets hidden away and in this article here are a few which I have found:
As the end-2012 deadline approaches for the RDR the FSA is aware that it may receive waiver applications from firms unable to meet the deadline
1. The FSA expects the twin peaks regulatory model which has been operating since 2 April 2012 to last until March 2013 when the cutover to the PRA and FCA is expected.
2. The FSA and the Bank of England have committed to publish two further documents setting out in more detail how the PRA and FCA supervisory regimes will function.
3. The FSA will work with the government concerning the implementation of the main recommendations of the Independent Commission on Banking - namely that high-street banking activities be separated from investment banking activities by a ring fence, that banks hold a higher capital buffer and that competition in the banking sector be strengthened. Primary and secondary legislation for the retail ring-fence is to be completed within this parliament but separately from the Financial Services Bill.
4. A Discussion Paper is due to be published in the first half of 2012 which will set out options which are intended to make it easier for the FSA to refuse an application for approved persons status on the basis that the person’s previous role as a director of a bank that failed raises fundamental questions concerning their competence and capability.
5. The FSA has promised to conduct a wholesale review of the client assets regime which will include a regulatory response following the Supreme Court judgement regarding Lehman Brothers International (Europe).
6. The FSA expects to consult on aspects of its product intervention approach late in 2012/13.
7. As the end-2012 deadline approaches for the RDR the FSA is aware that it may receive waiver applications from firms who may be unable to meet the deadline. The FSA is committed to having a policy in place so that it may consistently deal with these applications.
8. The final rules concerning the Mortgage Market Review are scheduled for publication this summer. However, the FSA does not plan to implement the rules before summer 2013 and may defer implementation even longer if market conditions require it to do so.
9. The FSA expects negotiations on the level 1 MiFID review legislative proposals to be completed by Q4 2012.
Simon Lovegrove is a lawyer with the financial services team at Norton Rose
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