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FCA CP20/23 – Quarterly Consultation Paper Number 30

FCA CP20/23 – Quarterly Consultation Paper Number 30

Background

  • The Financial Conduct Authority (FCA) published its CP20/23: Quarterly Consultation Paper No. 30 on 4 December 2020.
  • The FCA webpage link is https://www.fca.org.uk/publications/consultation-papers/cp20-23-quarterly-consultation-paper-no-30
  • Once every quarter, the FCA consults on proposed miscellaneous amendments to its Handbook; these tend to be minor changes but the FCA is still keen to get firms’ feedback on its proposals
  • This consultation is important for all organisations within UK financial services that have an interest in any of the topics mentioned in the summary below

Impacts

This quarter, the FCA is proposing the following:

  • To clarify the FCA’s expectations for temporary, long-term absences;
  • To remove references to collective investment schemes being able to issue bearer certificates, in line with draft Government legislation banning the use of bearer certificates;
  • To amend the rules in COBS 4.5.12R to COBS 4.5.15R to narrow the scope of their application to communications which could influence a retail investor’s investment decision;
  • To make changes to the minimum levels of professional indemnity insurance (PII) cover to align FCA rules with the revised limits as published in Commission Delegated Regulation (EU) 2019/1935 amending the Insurance Distribution Directive (IDD);
  • To make changes to the cancellation form in SUP 6 Annex 6 to improve the cancellation application process;
  • To Transpose Article 1(16) of the Bank Recovery and Resolution Directive II ((EU) 2019/879) into FCA rules;
  • This Chapter does not propose changes to the FCA Handbook, and instead seeks views from interested stakeholders about whether the Global Precious Metals Code meets our Codes Recognition Criteria.

Timeline with relevant dates to be logged on regulatory calendar

  • Comments should reach the FCA by 4 February 2021 for Chapters 3, 4, 5, 7 and 8, and 4 January 2021 for Chapter 6.
  • The FCA and the Prudential Regulation Authority (PRA) invites comments on Chapter 2 of this Consultation Paper, which should reach us by 4 January 2021.
  • Any comments received on Chapter 2 will be shared with the PRA for joint consideration.

Next steps

Any comments must be sent to the FCA as indicated, either using the online form (follow the website link) or by e-mail to cp20-23@fca.org.uk

If anyone has specific questions or needs any advice, contact our specialists.