The Financial Services Authority (FSA) today published its proposals for a radical simplification of the rules that firms must follow in carrying out investment business with customers.
The reform of the Conduct Of Business (COB) rules is a flagship project for the FSA in the move towards more principles-based regulation and away from detailed prescriptive rules. The FSA is aiming to remove around half the content of the old rulebook with the end result being a new conduct of business rule book - NEWCOB - which will be substantially shorter. This is being carried forward at the same time as implementing the relevant provisions of the Markets in Financial Instruments Directive (MiFID).
The FSA's Conduct of Business rules for investment business have been in operation since the FSA took on its regulatory responsibilities in December 2001. The rules cover, among other things financial promotions, how firms provide information and advice to clients, non-advised services, and dealing in and managing investments.
See full Press Release.
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