New European legislation will have an impact on FSA rules relating to Systems and Controls. Both the Markets in Financial Instruments Directive and the Capital Markets Directive contain provisions relating to organisational controls. Most organisations which conduct business subject to the CRD requirements (and that includes CAD organisations) are also subject to MiFID requirements as well as business falling outside of the directives such as insurance which is covered by existing standards.
This development could potentially create a complex set of organisational obligations for multi-function organisations and groups organisations. In light of this potential problem the FSA is proposing to establish a common platform. Its proposals are to be set out in Consultation Paper 06/09 'Organisational Systems and Controls: Common Platform for firms'.
The common platform provisions will be located in the FSA’s SYSC sourcebook in new topic-specific chapters covering matters such as Conflicts of Interest, Outsourcing and Risk Control. Although these changes will fundamentally alter the provisions of the FSA’s rules on organisational control, the FSA envisage minimal impact for organisations that already have good practices and procedures supporting management oversight, effective risk management and other internal controls.
How we can help
- Provide induction, ongoing or remedial training and coaching to your staff on emerging MiFID regulation and what it may mean to your business,
- Review your current senior management systems and controls and your ability to deal with emerging MiFID related rules as they emerge
- Review and report on the effectiveness of your arrangements to implement MiFID regulation
- Supply you with interim/seconded compliance resource to support your work on assessing and advising on new regulatory issues and how they are implemented within your organisation
- Project management to support your MiFID initiatives
- Provide you with technical assistance to support your understanding of your MiFID regulatory obligations.
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