UK Regulatory Update — Issue 2: product and promotion intervention

Download document:

UK Regulatory Update — Issue 2: product and promotion intervention - .PDF file.

In the second issue of our eight step-by-step guides to the new regulatory landscape, we take a look at two of the significant new powers granted to the new conduct regulator, the FCA. In keeping with the judgement-led and interventionist approach promised by the new regulators, from 1 April 2013 the FCA will be able to intervene on the sale of products with immediate effect and ban firms from making particular financial promotions.

These new powers support a profound shift of regulatory focus that positions the FCA as a product regulator. To date, a narrow list of products such as UCITS aside, the FSA has not played this role. Its rules have been promotions and sales focussed resulting in an over-reliance on TCF and Customer Outcomes to address product issues. The obvious challenge to setting up a ‘product regulator’ is that an all-encompassing rules-based product regime is impracticable to operate and stifles innovation. The new FCA power navigates cleverly around this issue by allowing the FCA to swiftly impose product focussed rules on a surgical basis where it sees mischief develop…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.