As part of its review, the regulator will publish consultation papers on ‘Reforming Conduct of Business Regulation (COB)’, and on ‘Financial Promotion and Other Communications’, which will form the move towards principles-based regulation.
A ‘Permissions and Notifications Guide’ for firms during the first quarter of 2007 will also be published, giving more information on the circumstances, arising from MiFID implementation, with further consultations planned throughout the year following the January 2007 launch of the regulation.
Although MiFID is set to deal predominantly within other financial sectors, Bill Warren, director at Complete Loans and Mortgages, admitted that there could be a period of crossover into the mortgage market. He said: “MiFID in itself will have little impact on the mortgage market, but what is not known is the impact it will have on other areas, which will then have an indirect impact on the mortgage sector. MiFID will impact on other sections of FSA rulings that may then have to be changed to adopt the MiFID principles.”
Speaking at the British Bankers Association’s (BBA) supervision conference, John Tiner, chief executive at the FSA, indicated that the regulator would continue to look for opportunities to increase the proportionality of regulation and its relationship with the rest of Europe.
He said: “It is clear that the UK cannot act alone, but we look forward to close co-operation with our colleagues in Basel and Europe and to the constructive contributions from industry.”
