UK FCA quarterly consultation paper no. 53

The UK Financial Conduct Authority (FCA) has published its quarterly consultation paper No. 53 inviting feedback on proposed amendments to its Handbook across financial promotion rules, banking conduct of business requirements, the new cryptoasset regime, complaints reporting, money market fund (MMF) reporting and the consumer composite investment (CCI) rules.

Key proposals include:

• Amending the financial promotion rules applicable to fractional shares, by amending the readily realisable security definition to include fractional shares that meet specified conditions.
• Removing an expired reference to the British Bankers' Association/Building Societies Association Code of Conduct for the Advertising of Interest Bearing Accounts in BCOBS 2.3.9G and replacing the reference in BCOBS 2 Annex 1, Note 1, to the latest Annual Equivalent Rate practice note published by UK Finance and the Building Societies Association.
• Making deferral arrangements for parts of the new cryptoasset regime (effective 25 October 2027), including relating to the admission process of qualifying cryptoassets on UK qualifying cryptoasset trading platforms, the execution venue requirements on UK-authorised dealers and arrangers, and the execution policy requirement for these firms.
• Correcting complaints data reporting rules by removing a duplicate data point on claims management fee cap redress in the Consumer Credit Return and clarifying the Handbook Glossary definition of "firm" for the purposes of DISP 1.10 and DISP 1.10A to ensure that payment services and e-money firms are within scope of these requirements.
• Removing the reference in DISP to the two-stage complaints process for the Society of Lloyd's.
• Updating MMF reporting requirements to ensure a proportionate approach that allows for effective monitoring of financial stability risks and is integrated into wider funds reporting requirements.
• Making minor amendments to the CCI rules in the DISC and COBS sourcebooks following feedback to PS25/20.

The deadline for comments is 12 October, and the proposed amendments are set out in draft instruments contained in the appendices to the consultation.

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