From the beginning of April 2013, the Financial Services Authority (FSA) has been replaced by 2 new regulatory bodies: the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
The impact of this change will affect all regulated financial services companies, with the ultimate aim “To make financial markets work well so consumers get a fair deal”
Prior to this change all external communications from authorised companies had to disclose the companies FSA authorised status. With the move from the FSA to the FCA, this will be changed to ‘authorised and regulated by the Financial Conduct Authority’. Therefore such things as letterheads, email footers, product literature etc will all have to be updated to reflect this new requirement.
The task of updating the range of documentation and marketing material for many firms shouldn’t be underestimated. Whilst it may appear to involve only a minor wording change, the sheer number of products that require the new wording can be significant. To help with this there will be a six month transition rule.
In addition to changes required in disclosure text, the permission for companies to use the (trademarked) FSA logo on certain disclosure documents will be removed and existing documentation will need to be updated.
If not already in progress, regulated companies should put in place an implementation plan to ensure that all relevant documentation is updated within the transition period.
We’re already helping firms with the transition, and expect the demand to grow as the transition clock counts down.
There may be interesting times ahead as the scale of the task becomes clearer, so we are bracing ourselves for some busy times ahead.