The FSA today published its findings of a months-long review of how asset management firms deal with conflicts of interest. The FSA found that many firms had failed to establish an adequate framework for identifying and managing conflicts of interest, due mainly to the office culture at these firms. In most cases, senior management was found to be ultimately responsible for this adverse office culture. The FSA is considering enforcement action against the worst offenders and is planning a second round of thematic visits on conflicts of interest.

In CP12/15, FSA consulted on the following areas of client assets policy: CASS firm classification, oversight and reporting, and the mandate rules (CASS 8). Having considered the responses to that consultation, in this PS it summarises them, describes the key changes made to FSA’s proposals and sets out the amended rules. Most of the rules will come into force on 1 January 2013, affecting both regulated firms and their auditors. The technical changes to the CMAR and changes to the CMAR guidance notes will come into force on 28 February 2013.

ESMA considers that there are adverse developments which constitute a serious threat to financial stability and to market confidence in Spain.

This summarises responses to the proposed changes to the Handbook needed to comply with the Short Selling Regulation from 1 November 2012, as well as policies regarding the exercise of the discretions the Regulation gives FSA. It is stated that, overall, the instrument does not differ significantly from the consultation draft. Rules come into force on 1 November 2012.

The FSA Board made changes to the Handbook in instruments which implement the EU Short Selling Regulation (Short Selling Regulation Instrument 2012/58)

The FSA Board made changes to the Handbook in instruments which clarify the requirements of Chapter 1A and Chapter 8 of CASS and improve the CMAR and CMAR guidance so that firms will be able to manage their CASS oversight and reporting responsibilities more effectively and apply the rules in a more consistent manner (Client Assets Sourcebook (Firm Classification, Operational Overnight, and Mandate Rules) Instrument 2012 /65)

The EU Short Selling Regulations come into force today, and the FSA has issued a Policy Statement to summarise the responses to their consultation on the proposed changes that are needed to be made to their handbook to ensure compliance with the SSR.

ESMA considers that there are adverse developments which constitute a serious threat to financial stability and to market confidence in Greece.

FSB has published its third progress note on the above.

Further to the May 2012 consultation, a short feedback document has now been published.