This week the Compliance Zone tackles some perimeter issues. Many are unclear as to the limits of FSA regulation and are not sure whether certain activities fall within the FSA's regulatory ambit.
…
This week the Compliance Zone tackles some perimeter issues. Many are unclear as to the limits of FSA regulation and are not sure whether certain activities fall within the FSA's regulatory ambit.
The problem is particularly acute for those who are dealing with secondary intermediaries. As more brokers start to look for opportunities in this channel, there is a greater need to understand the regulatory status of secondary markets.
Whether a secondary intermediary is performing a regulated activity or not is an important issue for any broker looking to deal with it post-January 2005. If the activity is regulated, the secondary intermediary will either need to be directly authorised or an appointed representative of the broker.
While many secondary intermediaries will not be performing regulated activities, some will. If they do, they may be able to rely on an exclusion from the rules.
It is the exclusions that we look at this week.
Michael Faulkner
If you have received a minded to authorise letter, email:
michael.faulkner@instimes.co.uk
