| Link(s): | Handbook Notice 113 (fca.org.uk) |
Context
The FCA has published Handbook Notice 113. It introduces Handbook changes in relation to the remuneration codes rules in SYSC 19D and changes to a number of areas of the Handbook to introduce the new Financial Promotions Approver Permission rules and guidance.
Key points to note
- The SYSC 19 rule changes came into force on 31 October 2023, and are primarily aimed at the investments and banking sectors. They strengthen the effectiveness of the remuneration regime by increasing the proportion of compensation that can be subject to the incentive setting tools within the framework.
- The Approver Permission rules initially come into force on 6 November 2023, with the full deadline being 7 February 2024. Firms approving financial marketing for unregulated firms (so financial marketing about the unregulated firm) will have to demonstrate they have the necessary skills and expertise to approve adverts. Those signing them off must understand the product, to ensure the promotion is accurate and fairly balances risk and reward.
- This will not affect authorised firms (referred to as ‘authorised persons’ in the Policy Statement) that only approve:
- their own financial promotions (“FPs”) for communication by an unauthorised person (including their ARs and IARs) – so FPs about the authorised firm itself;
- their own FPs that they intend to use and communicate themselves;
- the FPs of their Appointed Representatives (ARs – including IARs) – so FPs about the AR or IAR, for the regulated activities the Principal firm has accepted responsibility for; or
- the FPs of unauthorised persons within their corporate group.
Next actions
Any firms wishing to apply for the new approver permission by way of a Variation of Permission should do so within the three-month application window (6 November 2023 to 6 February 2024). Annex 2 of the Policy Statement sets out the question set that will be used in the VoP application form to add the ‘Approver Permission’.