FCA has published its latest Handbook Notice with new rules. Most of the changes are minor, and update terminology and cross-references. FCA is also making changes to:
- SYSC and SUP, including adding a new Annex to SUP, to ensure solo-regulated and optional exemption MiFID firms can continue to comply with MiFID and CRD requirements once the SMCR takes effect;
- various parts of the Handbook but mainly COLL, to reduce the risks to investors in NURS that hold inherently illiquid assets. The changes will mean investors must get clear and prominent information on liquidity risks, and the circumstances in which access to their funds may be restricted, and will oblige managers to have in place plans to manage liquidity risk. Other changes include measures to try to prevent “fire sales” and some investors gaining at the expense of others, and allow for a new category of fund that invests in inherently illiquid assets – with attendant rules specific to these funds. The changes take effect on 20 September 2020