CP15/28: Quarterly Consultation Paper No. 10

Once a quarter, we consult on proposed miscellaneous amendments to our Handbook. These tend to be minor changes but we still want to get your feedback on our proposals.

What we are consulting on this quarter

We are proposing to:

  • make changes in relation to offshore life insurance bonds
  • make minor changes across our Handbook to implement the Mortgage Credit Directive
  • make minor changes to the TC list of appropriate qualifications
  • update FSA guidance on Consumer Redress Schemes and incorporate it into CONRED
  • make minor amendments to SUP Chapter 16 to improve the data collection process for both firms and the FCA
  • make changes to our DISP rules to make complaints reporting requirements more consistent and clear
  • make changes to the Glossary, LR, DTR, PR, GENPRU and SUP in light of the SAAD and make some miscellaneous amendments to these sections
  • make technical amendments to provisions in GEN

CP15/28: Quarterly Consultation Paper No. 10 [PDF]

Who this consultation is for

This will be relevant if you or your firm has any interest in the subjects mentioned above.

Offshore bonds - update on consultation in CP15/28

In chapter 2 of CP15/28 we consulted jointly with the Financial Ombudsman Service on rule changes designed to give policyholders receiving advice or a discretionary management service as agent of an offshore insurer some of the same protections as consumers receiving advice or a discretionary management service directly. The rule changes would have brought these policyholders within the scope of the suitability rules and would also have brought them within the definition of ‘eligible complainant’ for the purpose of making a complaint to the Ombudsman.

Since publishing our consultation, the MiFID II Delegated Regulation has been published and it now makes specific reference to the identification of the subject of a firm’s suitability assessment where the firm’s client is a legal person (Article 54(6) of the Delegated Regulation). The final text of the Article refers to this determination being made by reference to a policy established by the firm itself. The UK is not permitted to impose additional requirements in relation to its transposition of this Article. As such, we concluded that it would not be possible (post-MiFID II) for the FCA to maintain a rule requiring suitability to be assessed in relation to the policyholder of an offshore bond.

In view of this, we have concluded that we should not take forward any changes to our rules following the September 2015 consultation.