GISC said it has introduced restrictions on companies applying for membership in order to prevent exploitation of the FSA’s offer of ‘due credit’ for GISC members applying for FSA authorisation.
Under the changes, firms considering applying for GISC membership will have until 1 July 2004 to submit their applications.
Existing applicants must also ensure that GISC has all the information required by this date or risk having their applications rejected, it warned.
GISC chairman Anthony Howland Jackson, said: “GISC will, of course, continue its regulatory activities until 14 January 2005, including monitoring GISC-regulated firms to ensure compliance with the Rules, and taking actions to enforce compliance, until the FSA takes over these responsibilities.
“I am determined that GISC retains its credibility as a regulator and maintains the value of the commitment member firms have made to GISC’s standards of good practice.
“Firms that have had ample opportunity to commit to voluntary regulation should not benefit from FSA “due credit” where we believe there is insufficient time in which to prove their commitment.”
But Howland Jackson said GISC would continue to recognise exceptional cases, such as star-ups and existing members who were restructuring their organisations.
“GISC recognises the value offered by membership, and will consider an application where it is clear the firm meets GISC regulatory requirements and was genuinely not eligible to apply earlier,” he said.
Applications for GISC membership which are incomplete on 1 July 2004 will be rejected and the membership fees will be returned to the applicant.
GISC said the decision follows confirmation in November 2003 from the FSA that applications from GISC members in good standing will receive “a level of scrutiny which reflects the standards set by GISC”.
