FCA is consulting on a proposal to transfer parts of the IDD that are currently in legislation into its rules, as part of the Future Regulatory Framework following Brexit. Treasury has announced its plan to repeal the delegated acts made under the IDD. As a result, FCA is proposing to incorporate within its rules:
- the IPID Regulation
- the POG Regulation
- the IBIPs Regulation and
- the PII regulation.
FCA proposes to import the relevant parts of the legislation into:
- SYSC – for the conflicts and record keeping provisions for IBIPs
- COBS – for the remaining IBIPs material – and in conjunction with its MiFID 2 review
- ICOBS – for the IPID material and
- PROD – for the POG Regulation.
The provisions will mainly simply be imported as rules, but FCA will take the opportunity to make defined terms consistent and adjusted some of the language to make it more consistent with the Handbook style. It has also split some provisions where it thinks it makes sense to make only some of the provision a rule and the rest guidance, and is deleting defined terms from the EU legislation which are no longer needed. Overall, however, the intention is not to change the requirements that currently apply.
FCA has asked for comment by 9 October.