FCA has published details of instruments passed at its Board meetings on 3 and 18 January 2018. These are: Enforcement (Packaged Retail and Insurance based Investment Products Regulations 2017) Instrument 2018/1; Conduct of Business Sourcebook (Projections) (Amendment No 2) Instrument 2018/2 and Client Assets (Term Deposits) Instrument 2018/3. In addition, it notes FCA's pre-approval of instruments made at its 7 December 2017 meeting for FOS: Dispute Resolution: MiFID 2 Complaints (Voluntary Jurisdiction) (Financial Ombudsman Service) Instrument 2017 (FOS 2017/6); Advising on Investments (Article 53(1) of the Regulated Activities Order) (Consequential Amendments) (Financial Ombudsman Service) Instrument 2017 (FOS 2017/7) and Risk Transformation Regulations 2017 (Consequential Amendments) Instrument 2017 (FCA 2017/81, FOS 2017/8). Instruments may be downloaded via the second link.

FCA has published details of instruments passed at its Board meeting on 7 December2017. These are: Handbook Administration (MiFID 2) Instrument 2017/65; Conduct of Business Sourcebook (Insistent Clients) Instrument 2017 2017/66; Advising on Investments (Article 53(1) of the Regulated Activities Order) (Consequential Amendments) Instrument 2017/67; Financial Services Compensation Scheme (Extension of Scope to Recognised Investment Exchanges) Instrument 2017/68; Periodic Fees (2017/18) and Other Fees (No 2) Instrument 2017/69; Fees (Consumer Financial Education Body Levy) Instrument 2017/70; Fees (Payment Services) (No 3) Instrument 2017/71; Fees (Payment Systems Regulator) Instrument (No 5) 2017/72; Supervision Manual (Amendment No 23) Instrument 2017/73; MiFID 2 Approved Persons and Senior Managers (Form Amendments) Instrument 2017 2017/74; Supervision Manual (Reporting No 7) Instrument 2017/75; Conduct of Business Sourcebook (Packaged Retail and Insurance-based Investment Products Regulation) (Amendment) Instrument 2017/76; MiFID 2 (Deferred Matters) Instrument 2017/77; Banking (Information About Current Account Services) Instrument 2017/78 and Client Assets (Indirect Clearing) Instrument 2017/80. Chapter 3 of the Notice sets out details with regard to changes where no policy statements were published. Instruments may be downloaded via the second link, once available.

The CP consults on minor amendments to CASS intended to address potential harm to consumers resulting from difficulties being experienced by some investment firms depositing client money at banks in accordance with CASS requirements. The proposals will not apply to GI intermediaries that only hold client money under CASS 5 or debt management firms that only hold client money under CASS 11. The proposals will also not apply to client money received by a firm in its capacity as a trustee firm. Responses are required by 1 November 2017.

IOSCO’s thematic review identifies the implementation progress of 38 IOSCO members from 36 jurisdictions in adopting legislation, regulation and other policies in relation to intermediaries holding client assets addressed by IOSCO’s principles for the protection of client assets.

Further to CP17/2, FCA has published this PS containing feedback and final rules. The PS is described as also forming the conclusion of FCA’s review of the distribution regime under CASS. It is noted that FCA is not proceeding with the proposals consulted on the EMIR and MiFIR regulatory technical standards at present because the standards are still in draft form. Rules come into force on 26 July 2017.

FCA has published details of instruments passed at its Board meetings on 30 June, 6 and 20 July 2017. These are: Glossary (MiFID 2) Instrument 2017/36; Fees (Data Reporting Applications) Instrument 2017/37; Markets and Organisational Requirements (MiFID 2) Instrument 2017 2017/38; Conduct, Perimeter Guidance and Miscellaneous Provisions (MiFID 2) Instrument 2017/39; Prospectus Rules (Miscellaneous Amendments) Instrument 2017/40; Approved Persons (Amendment to Application Forms) Instrument 2017 2017/41; Fees (Payment Systems Regulator) Instrument (No 4) 2017/42; Conduct of Business Sourcebook (Pension Projections) Instrument 2017/43; Client Assets (Client Money and Custody Assets Distribution and Transfers) Instrument 2017/44; Trading Venues Instrument 2017/45; Client Assets Supervision (P2P CASS Audits) Instrument 2017/46; Immigration Regulations (Amendment) Instrument 2017/47; Retirement Income Data (Regulatory Return) Instrument 2017/48 and Fourth Money Laundering Directive (Enforcement and Consequential Amendments) Instrument 2017/49. In addition, the Board approved the FOS instrument Dispute Resolution: Complaints (Payment Protection Insurance Complaints) (Voluntary Jurisdiction) Instrument 2017/3. Instruments may be downloaded via the second link, once available.

This PS on the implementation of MiFID II sets out final rules on, amongst other matters, client assets, complaints handling, inducements, client categorisation, disclosure requirements, independence, suitability, appropriateness, dealing and management, underwriting and placing, investment research, client agreements, product governance, taping, knowledge and competence, structured deposits and aspects of SUP, GEN, DEPP and COBS 18. FCA notes particular areas where proposals have been revised in the following areas: inducements in relation to research (FCA will apply these provisions to collective portfolio managers and not only to the investment firms that are subject to MiFID I)I; client categorisation (with regard to local authorities); best execution (FCA will not apply the changes in the best execution rules in MiFID II to AIFMs); taping (FCA will not apply a requirement for recording phone conversations and electronic communication to all investment services and activities carried out in relation to corporate finance business).

In its regular CP, FCA proposes changes with regard to the TC sourcebook list of appropriate qualifications; to SUP to clarify the application of the requirement to have a client assets report to loan-based crowdfunding platforms and SUP regulatory reporting requirements. Responses are required by 12 July 2017; apart from the proposals on SUP regulatory reporting requirements for which responses are required by 12 August 2017:

FSB has published reports on hypothecation and collateral re-use. The first describes potential financial stability issues associated with, and explains the evolution of market practices and current regulatory approaches relating to, re-hypothecation of client assets and collateral re-use, including possible arguments for and challenges of harmonising regulatory approaches to re-hypothecation of client assets and possible residual financial stability risks associated with collateral re-use. The second incorporates input from a consultation held in February 2016 and finalises the measure and metrics of non-cash collateral re-use in securities financing transactions that authorities will monitor for financial stability purposes. FSB will collect national aggregated data related to the measure and metrics from January 2020.

The CP seeks feedback on proposed changes to the CASS rules affecting the return of client assets, against the backdrop of the amendments to the SAR Regulations; explains why certain proposals in CP13/5 and DP16/2 are not being taken forward and seeks feedback on minor consequential changes to CASS 7 and CASS 7A to address the forthcoming indirect clearing requirements under EMIR and MiFIR regulatory technical standards. Responses are required by 23 February 2017 with regard to the EMIR and MiFIR standards proposals and 24 April 2017 in relation to all the other proposals.