UK:
FCA To Restrict UK Firms From Distributing CoCos To Retail Investors
28 August 2014
Shearman & Sterling LLP
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On August 5, 2014, the FCA announced a temporary restriction on
authorized firms in the UK from distributing, promoting or
intermediating transactions in contingent convertible instruments
(known as "CoCos") to retail investors. The restriction
will apply from October 1, 2014 to October 1, 2015. The FCA intends
to consult in September 2014 on proposed permanent rules on CoCos.
The restriction is the first time that the UK regulator is using
its consumer protection powers which came into force last year when
the FCA and Prudential Regulation Authority took over from the
Financial Services Authority. The announcement also follows
statements by the European Authorities expressing concerns about
the potential risks of investing in CoCos.
The FCA announcement is available at: http://www.fca.org.uk/news/restrictions-in-relation-to-the-retail-distribution-of-contingent-convertible-instruments.
The content of this article is intended to provide a general
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