UK: Weekly Financial Services Regulatory Update - Week To 31.08.12

Consultation papers:

30 August: Short selling regulation - Handbook changes. The FSA has published a Consultation Paper relating to the EU Short Selling Regulation (SSR) which applies from 1 November 2012. The paper invites comments on the implementation of the SSR which introduces requirements for reporting net short positions in shares and sovereign debt. The SSR follows a background of concerns that short selling was aggravating the downward spiral in share prices and posing a threat to individual financial institutions and wider financial stability. The SSR is directly applicable in the UK but there are some areas where Member States have discretion about how to exercise their powers and the FSA is seeking views and comments on how this discretion should be exercised. Online responses to the paper are invited by 20 September 2012 and changes to the Handbook will be finalised in light of responses received.

28 August: Review of the client money rules for insurance intermediaries. The FSA has published a Consultation Paper following its review of the regulation of insurance intermediaries, with particular emphasis on how client money is held. The paper consults on the proposals that have been drawn up as a result of this review, to amend the CASS 5 rules so that they are clear, simply and easy to apply. The paper further clarifies and explains the CASS 5 rules for firms and insurers. The deadline for responses is 30 November 2012 and final rules are expected in the second quarter of 2013.

Discussion papers:

No new developments this week.

Policy statements:

No new developments this week.

Press releases:

No new developments this week.


No new developments this week.

Bulletins and newsletters:

30 August: Retail Distribution Review (RDR) Newsletter - Issue 7. The FSA has published issue 7 of its RDR Newsletter series which covers:

  • The importance of holding the right permissions
  • Templates for disclosure documents
  • Information about gap-fill requirements for structured products
  • A reminder about its process for waivers to RDR requirements
  • Its final guidance on replacement business and centralised investment propositions

Templates to help with the disclosure of charging and advice services have also been updated.

Final notices:

29 August: Yan International. The FSA has issued a Final Notice, dated 29 August 2012, cancelling Yan International Communication Ltd's ("Yan International") registration as a small payment institution pursuant to Regulation 13 of the Payment Services Regulations 2009. The FSA took this action because Yan International failed to respond to the FSA's request for further information about its Managing Director's previous convictions which was considered necessary to enable it to determine the application for registration as a small payment institution.

Application refusals:

No new developments this week.

Approved person refusals:

No new developments this week.

Research publications:

No new developments this week.

Consumer research:

No new developments this week.

Other FSA publications:

30 August: Financial Advice changes guide. The FSA has published a new guide, 'Financial Advice Changes 1-2-3', on its website to explain to investors the changes to the way in which they will be paying for financial advice. It includes an explanation of the difference between independent and restricted advice and how commission works.

31 August: Policy Development Update (Issue 150). The FSA has published its latest policy development update containing details of publications issued since the last edition, information about recent Handbook-related developments and an updated timetable for forthcoming publications. The newsletter recaps previous Consultation Papers issued, including the review of the client money rules for insurance intermediaries, restrictions on the retail distribution of unregulated collective investment schemes and close substitutes, data collection on remuneration practices, and packaged bank accounts. It also reviews Policy Statements including mortality assumptions for pension Key Features Illustrations (KFIs), and financial resources requirements for Recognised Bodies.

31 August: Retail Investments Product Sales Data (PSD) Trends Report 2005-2012. In December 2005, the FSA made a commitment to the industry to publish aggregate Product Sales Data ('PSD'). For ease of analysis, the 30 retail investment products on which the FSA has collected PSD have been grouped into five product categories (pensions, investments, endowments, ISAs, and long-term care insurance). Reporting firms are required to submit PSD reports quarterly. PSD provides an important source of information that helps the FSA's risk-based supervision strategy in relation to retail firms and markets. The dataset supports the identification of risk in individual firms and the wider market, and supports FSA policymaking.

31 August: Pure Protection Contracts - Product Sales Data (PSD) Trend Report 2005-2012. Since 1 April 2005, product providers have been required to give the FSA transaction-level data on all sales of regulated mortgage contracts, retail investment products and certain pure protection products to retail and private customers. The FSA's analysis focuses on the developments it deems most insightful when interpreting the main trends in the pure protection contracts market. It focuses primarily on the volume of transactions, not the value. Pure Protection Contracts PSD is collected for a limited number of product types – that is, products with complexities that increase the potential risks to consumers.

31 August: Mortgages Product Sales Data (PSD) Trend Report 2005-2012. This publication contains information on the data available from mortgage PSD. Only completed transactions (where the funds have been transferred from lender to borrower) are reported in mortgage PSD and the report focuses largely on the volume of transactions, not the value. It contains details on the overall trends in mortgage sales.

29 August: Wealth Management - FSA to commence further thematic work. In June 2011, the FSA wrote to all Chief Executive Officers of firms that offer wealth management services to retail clients to highlight that it had identified significant, widespread failings. It has continued to work with firms in the sample to mitigate the risks identified, principally around record-keeping and/ or suitability. This has led to enforcement referrals, skilled person's reports, and significant remediation programmes. The FSA intends to interview key individuals from firms that formed part of its previous work to assess how those firms have sought to remediate the problems identified, and in particular whether they have taken sufficient steps to deal with past detriment that any customers may have suffered. The FSA will then consider whether it needs to take further regulatory action. Further updates on this work will be provided in 2013.

UKLA publications:

No new developments this week.

Upper Tribunal (Tax and Chancery Chamber) (formerly Financial Services and Markets Tribunal (FSMT)):

No new developments this week.

Financial Ombudsman Service (FOS):

No new developments this week.

London Stock Exchange (LSE):

No new developments this week.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.