The Financial Services Authority issued their Consultation Paper CP11/25 entitled 'Distribution of retail investments - RDR Adviser Charging and Solvency II disclosures'. The FSA invites comments on this Consultation Paper by 10 January 2012.
The FSA is consulting on three matters:
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issues relating to facilitation of payment of adviser charges under the Retail Distribution Review (RDR) rules;
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whether product providers should, when reporting data under the FSA's data requirements such as Product Sales Data (PSD), report investment amounts on a basis that is net or gross of any adviser charges being facilitated; and
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minor changes to the disclosure requirements in Chapters 13 to 16 of the Conduct of Business sourcebook (COBS) to implement Solvency II Directive requirements.
The proposals relating to the facilitation of payment of adviser charges arise from queries the FSA has received on the RDR Adviser Charging rules, which were published in March 2010, and which will come into force on 31 December 2012. Changes to the RDR rules made following this consultation will come into force on the same date as the RDR rules, and rules on how product providers should report investment amounts will apply to firms’ first full reporting period after 31 December 2012.
The proposals on changes to the disclosure requirements in COBS are necessary to implement certain disclosure provisions in Solvency II. The rules transposing these provisions were originally scheduled to come into force on 1 January 2013. However, the FSA has revised its implementation assumptions in the light of discussions in Europe about implementation of the Directive. Under these assumptions, 1 January 2013 remains the date at which the responsibilities of supervisors and the European Insurance and Occupational Pensions Authority (EIOPA) would be switched on (i.e. transposition of the Directive would have to be complete by 1 January 2013), and 1 January 2014 is when the Solvency II requirements would be switched on for firms. The FSA is consulting now on the disclosure changes, to give firms as much time as possible to prepare.
© FSA - Financial Services Authority
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