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.

Home     More News

Other stories you may find of interest:

A very British Complex
Greater complexity leads to greater risks for banks according to Professor Simon Collinson, Warwick Business School and the Simplicity Partnership

Impacting on investment
With emerging markets looking for investment, Simon Miller looks at the rise of impact investment and what risks entails in this socially aware vehicle

Journey’s end for Solvency II?
Solvency II, the long-mooted new capital adequacy regime for Europe’s insurers, is nearing implementation. Graham Buck reviews its progress

Financial Risks Today Beta Banner

This website is a part of Perspective Publishing Limited, registered in England No 2876166.
By using this website you agree to our COOKIE POLICY.