Proposed rule changes
We are proposing to make rule changes that will affect your firm.
Some of the key areas we are proposing to make changes to are listed below. This is aimed at firms that do not hold client money.
If you hold client money you should view the Investment management and securities & futures firms pages as our proposals will affect you differently.
Our impact table indicates where changes are likely to have the greatest significance for you.
Information about the firm, its services and remuneration
- simplify rules on scope and range
- remove rules that allow firms to make 'out of range' recommendation
Identifying client needs and advising
- removing the obligation to recommend the most suitable product from the range
- replace the suitability letter with a less prescriptive suitability report
Product information
- replace many of the detailed and prescriptive requirements on key feature document content (and risk warnings) with high level requirements
Training and competence
- remove requirement for employees to pass exams in specified time (and associated record keeping)
Complaints
- change criteria for 'eligible complainants';
- reduce prescription on firms' acknowledgements and holding replies;
- no longer requiring a firm which forwards a complaint (to another firm to deal with) to tell the complainant of this in a 'final response';
- shorter module focusing more clearly on firms' central obligation to treat complaints promptly and fairly.
For full details you can look at the 'Reforming COB Regulation' and 'Financial promotion and other communications' consultation documents.
