COBS and CoCos

A new chapter in COBS came into force on 1 October – COBS 22 “Restrictions on distribution of contingent convertible instruments”. The provisions are effectively a copy of the short-lived COBS 4.14 (and which is now deleted) which was brought in as temporary product intervention rules. Under COBS 22.1.1(4) the [...]

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Corporate Governance

The Financial Reporting Council (‘FRC’) has updated the UK Corporate Governance Code (‘Code’). Although all companies can use the Code as a source of reference in establishing their corporate governance arrangements, compliance with the Code is a regulatory requirement for listed companies. By way of example, in the Handbook LR [...]

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FCA: Enforcement and Supervision

No sooner had the FCA issued its policy statement on Enhanced Supervision (‘Tackling serious failings in firms‘ – see previous article in this Regulatory Roundup) than the Regulator published its ‘Enforcement-focussed’ June Regulation round-up . The Welcome page, written by Tracey McDermott, Director of Enforcement and Financial Crime, reminds us [...]

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Soliciting in the US

In a statement made by Mary Schapiro, Chairman of the SEC, the possibility of removing the current prohibition against general solicitation and general advertising in certain securities offerings was raised. The proposal stems from the Jumpstart Our Business Startups Act (‘JOBS Act’), the aim of which is to increase the [...]

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CASS Update

The FSA is consulting (CP12/15) on changes in two areas of CASS: firm classification and oversight (CASS 1A) and mandates (CASS 8). The changes to CASS 1A will include clarification on the CASS firm type effective date. Identified technical issues will result in some minor changes to the CMAR. The [...]

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Training and Competence

The publication CP12/8 ‘Changes to the Training and Competence Sourcebook’ proposes to add three qualifications to the ‘appropriate qualifications tables’ in the Training and Competence (TC) sourcebook as well as amending details for three qualifications. As far as designated investment business is concerned, TC is only applicable to relevant activities [...]

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Financial Promotions

The FSA has published ‘Finalised guidance’ on financial promotions. ‘Financial Promotions , Fund Performance and Image Advertising’ is probably self-explanatory from its title. For most investment firms, the performance rules (COBS 4.6) will only be relevant where the recipient is likely to be a retail client. Having said that, the [...]

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Non-Executive Directors

As will be known, the FSA has always attached importance to sound corporate governance within authorised firms and has looked to Non-Executive Directors (NEDs) to provide a necessary degree of challenge (for example see Regulatory Roundup 26). The FSA has published (consultative) guidance setting out to firms its expectations of [...]

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