December 2007

The Financial Services Authority invites comments on this Consultation Paper. Comments should reach us by 19 March 2008.

You can send your response by electronic submission using the following form or by emailing us at the address shown.

Alternatively, please send comments in writing to:

Nigel Sherwin
Institutional Business Policy
Individual, Mutuals and Policy Department
25 The North Colonnade
Canary Wharf
London E14 5HS

Telephone: 020 7066 0400
Fax: 020 7066 9734

E-mail: cp07_23@fsa.gov.uk

It is the FSA's policy to make all responses to formal consultation available for public inspection unless the respondent requests otherwise

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Submission Details









as an individual
as a representative of an authorised firm
as a representative of a professional firm
other (please specify):

 

Chapter 1 - Overview

 

Do you agree with our proposal to extend the common platform to non-scope firms predominantly as guidance and disapply SYSC 2 and 3 to them? If not, please tell us why.

 

Chapter 2 – General organisational requirements

 

Do you agree with our proposal to extend the common platform provisions on business continuity to non-scope firms as guidance? If not, please tell us why.

 

Do you agree with our proposal not to extend the SYSC 4 accounting requirements to non-scope firms? If not, please tell us why.

 

Do you agree with our proposal to extend this monitoring rule to non-scope firms as guidance only? If not, please tell us why.

 

Do you agree with our proposal to extend SYSC 4.2.1 to non-scope firms as guidance and disapply the current SYSC 3 provisions?

 

Chapter 3 – Employees, agents and other relevant persons

 

Do you agree that we should extend this guidance on segregation of duties to non-scope firms? If not, please tell us why.

 

Do you agree with our proposal to extend as guidance the provision that firms ensure relevant persons are aware of the procedures they must follow to discharge their responsibilities? If not, please tell us why.

 

Do you agree with our proposal to extend SYSC 5.1.14 to non-scope firms as guidance? If not, please tell us why.

 

Chapter 4 – Compliance (including internal audit) and financial crime

 

Do you agree with our compliance proposals? If not, please tell us why.

 

Do you agree with our proposed guidance on internal audit? If not, please tell us why.

 

Chapter 5 – Risk Control

 

Do you agree with our proposed guidance on risk control? If not, please tell us why.

 

Chapter 6 - Outsourcing

 

Do you agree with our proposed rule that, where outsourcing a critical or important function, a firm must remain responsible for discharging its regulatory obligations? If not, please tell us why.

 

Do you agree with our proposal to apply these SYSC 8 provisions as guidance for non-scope firms? If not, please tell us why.

 

Chapter 7 – Record-Keeping

 

Do you agree with our proposal to extend the high level record keeping provisions in SYSC 9.1.1R to non-scope firms and disapply the current provisions? If not, please tell us why.

 

Do you agree with our proposal to extend the SYSC 9 guidance on providing records in English to non-scope firms and disapply the existing provisions? If not, please tell us why.

 

Do you agree with our proposal to delete the record-keeping provisions in INPRU (INV) 3, 5 and 13? If not, please tell us why.

 

Chapter 8 – Conflicts of interest

 

Do you agree with the modification of the SYSC 10.1.8R requirement for insurance mediation activity?

 

Do you believe disclosure in a durable medium would be too disruptive to established practice in other areas?

 

Do you agree with our proposal on conflicts of interest? If not, please tell us why.

 

Do you agree with our proposal to extend SYSC 10 to non-scope firms that produce investment research? If you do not, please tell us why.

 

Do you agree with our analysis of the impact on section 150 rights of action? If not, please tell us why.

 

Chapter 9 – Apportionment and oversight

 

Do you agree with our proposal to disapply SYSC 2 and CF8 and to extend SYSC 4.3 to those non-scope firms which have at least one governing function under the approved persons regime? If not, please tell us why.

 

Chapter 10 – PRIN and client categorisation

 

Do you agree that we should continue to allow firms conducting business other than designated investment business to classify clients as eligible counterparties for the purpose of the application of PRIN? If not, please tell us why.

 

Annex 2: Cost benefit analysis

 

Do you have any comments on the nature and scale of the costs and benefits arising from our proposals?

 

Do you agree with our view that areas not covered here are not material for CBA? If not, can you identify which changes you think will have material impacts and are not covered by our analysis?