The FSA are seeking comments on proposed changes to the T&C regieme by 23 May 2007.
The implementation of the MIFID directive on 1 November 2007 has meant that the FSA need to move the goal posts again to avoid inwardly passporting MIFID firms from having a competative advantage over UK based firms.
The move to principles based regulation means that the FSA are looking to :-
- Remove detailed requirements for Firms involved in the Wholesale sector.
- Place greater emphasis on outcomes
- Require Firms to "employ personnel with the skills, knowledge and expertise necessary".
- Place responsibility for implementation on the Senior Management of the Firm
- Abolish the "2 year" rule for completing the approved examinations
- Abolish the distinction between Supervision and Monitoring
- Require Firms to retain evidence (records) for 5 years of assessments etc.
The proposed changes will see a 66% reduction in the size of the T&C rulebook.
