By Simon Miller
The Financial Services Authority (FSA) has today issued a combined consultation paper and discussion paper that proposes a number of changes to the client money and custody assets regime for firms that undertake investment business.
In addition to some changes required by the European Markets Infrastructure Regulation (EMIR), the FSA proposes changes that could lead to a radical shift in how firms protect client money. The FSA also seeks comment on some wider issues in relation to its fundamental review of the client assets regime with the aim of producing better results in the insolvency of an investment firm.
Richard Sutcliffe, FSA’s client assets unit leader, said: “The protection of client assets remains a key priority for the FSA and today’s proposals will go a long way to ensure confidence in UK markets is maintained. In addition to the changes required by EMIR the FSA proposals will lead to the most radical change in the client assets regime in over 20 years with the introduction of client money sub-pools that are designed to bring further safeguards to the industry. Furthermore, the fundamental review of our client assets regime also invites debate on the changes required following the lessons learned from ongoing insolvencies.”
The consultation can be found on the FSA website.