FCA publishes quarterly consultation

FCA has published its regular quarterly consultation.

It proposes changes to:

  • the schemes regime under s272, and consequential changes to COLL, the Glossary, DEPP and EG. The changes specifically relate to what FCA considers to be a “material alteration” which needs to be notified to it, and how it will exercise its powers of public censure;
  • reporting requirements under SUP in respect of the FSA035 form which relates to firms subject to IPRU(INV) and to correct some labelling errors;
  • PERG, CONC and MCOB to align with recent perimeter changes in respect of agreements with high net worth borrowers: the changes, which took effect on 21 July, have the effect of enabling certain credit agreements that were outside the scope of the HNW exemption to fall within it if the borrower can meet certain residential requirement. In particular, “article 3(1)b) credit agreements can now be treated as exempt. Currently, an article 3(1)(b) credit agreement entered into with an HNW borrower cannot be exempt unless permitted to be so by the MCD. Other borrowers could effectively opt out of most of the regulatory regime except what the MCD mandated.  Now, FCA proposes that in addition to what was previously allowed, borrower who do not meet the new residency requirements can still benefit from the lighter touch regime, even if not newly exempt; and
  • clarify what it means by a “significant SYSC firm” following the unintentional confusion caused by the implementation of the IFPR. The IFPR was not intended to change the scope of the definition.

Comments are due on various dates in late September and early October on the specific proposals.

Emma Radmore