Transaction Reporting & Execution

As you’ll know from SUP 17.2, provided certain conditions are met then portfolio managers are relieved from the responsibility of transaction reporting and instead rely on third parties e.g. the broker to the transaction report to the FSA.

The Transaction Reporting Users Pack (TRUP) [see Regulatory Roundup of 29 September for details and a link] noted on page 12 that there was the possibility of this exemption ceasing, pending “… the outcome of CESR’s consultation on defining ‘execution of a transaction’ …”

Obviously many firms rely on this exemption and any change here could have a big impact on firms’ procedures and systems.

Oddly, the CESR website has been completely silent on this consultation.

Having discussed the matter with the FSA we are pleased to report there is no such consultation in being; we are informed that it was pulled after TRUP went to print.