Hello everyone and welcome to this week’s financial services updater.
The two highlights in this week’s financial services updater both concern FSA publications.
The first highlight is FSA Consultation Paper 12/19: Restrictions on the retail distribution of unregulated collective investment schemes and close substitutes.
In this Consultation Paper the FSA is proposing a ban on the promotion of unregulated collective investment schemes and products of a similar nature to the majority of retail investors in the UK.
The Consultation Paper follows a recent FSA review of unregulated collective investment schemes sales which found only one case in every four appeared suitable for the customer. In addition the FSA found that almost two-thirds of distributors in the review failed to understand the existing restrictions on the promotion of these products to retail customers.
The proposed rules generally mean that in the retail market, the promotion of unregulated collective investment schemes and similar products will be restricted to sophisticated investors and individuals with a high net worth for whom the products are more suitable.
The deadline for comments on the Consultation Paper is 14 November 2012.
The second highlight is another FSA Consultation Paper, Consultation Paper 12/21: Short selling regulation - Handbook changes (CP12/21).
You might remember that the EU Regulation on short selling and certain aspects of credit default swaps comes into force on 1 November 2012 and is directly applicable in the UK, so it does not require specific implementation in domestic legislation and FSA rules.
However, there are some areas in the Regulation where Member States have discretion about the exercise of their powers or the Regulation requires matters to be dealt with in accordance with national law.
The purpose of the FSA’s Consultation Paper is to seek industry views and comments on the FSA’s policies regarding the exercise of discretion and how it will implement the Regulation in the UK.
The deadline for comments on the Consultation Paper is 20 September 2012.
That’s this week’s highlights. In addition we also have released this week the online invite for the next series of 40 minute briefings.
I hope you find this week’s updater helpful, good bye.
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