Financial services update September 15 2014 feature: U.K. Financial Conduct Authority developments

New Rules

The Financial Conduct Authority (FCA) issued final capital rules for Self-Invested Personal Pension operators. The new rules are effective September 1, 2016.

Proposed Rules and Requests for Comments

The FCA issued proposed rules that would require the establishment and maintenance by workplace pension schemes of independent governance committees (IGCs). The IGCs would provide governance oversight of defined contribution workplace personal pensions, such as group personal pensions, and act in the interests of scheme members by providing credible and effective challenge to providers on the value for money of their pension schemes. Comments should be submitted on or before October 10, 2014.

The FCA asked the industry to comment on how market development is affected by the retrospective application of regulations. Specific examples are sought by October 10, 2014.

The FCA also issued proposed miscellaneous amendments to its Handbook. The proposed amendments concern the Consumer Credit Act, the Listing Regime, and alternative investment fund managers. Comments should be submitted on or before November 5, 2014.

The FCA asked for comments on how it should supervise the use of social media in promotions. The proposed FCA guidance is intended to clarify and confirm its approach to the supervision of financial promotions in social media, help firms understand how they can use these media and comply with FCA rules, remind firms that the rules are intended to be media-neutral, ensure that consumers are presented with certain minimum information in a fair and balanced way, and provide some solutions and illustrative examples. Comments should be submitted on or before November 6, 2014.

Guidance

In a letter from Clive Adamson, FCA Director of Supervision, the FCA clarified its use of attestations and the outcomes it expects when requiring them. Attestations have been introduced as a formal supervisory tool to gain personal commitment from an approved person at a regulated firm that specific action has been taken or will be taken.