| Link(s): | Handbook Notice 122 (fca.org.uk) |
Context
The FCA has published Handbook Notice 122, in which it has confirmed updates to the Dispute Resolution Sourcebook (DISP) in relation to the pause on the requirement for firms to provide a final response to Discretionary Commission Arrangement (DCA) complaints, and SUP 11 in relation to the prudential assessment of acquisitions and increases in control.
Key points to note and next actions
- The amendment to DISP is straightforward, covering the extension of the ‘pause’ (to December 2025) in dealing with DCA complaints, which we have covered in earlier Regulation Updates.
- Chapter 11 of the Supervision Manual (SUP 11) sets out rules and guidance for controllers and close links. It also refers to the EU guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector (3L3 Guidelines).
- The amends to SUP 11.3 and SUP 11 Annex 6G refer readers to the final non-Handbook guidance in relation to the prudential assessment of acquisitions and increases in control, and removes duplicative text in relation to guidance on the aggregation of shares / voting power and acting in concert.
- The FCA is replacing the 3L3 Guidelines with non-Handbook guidance on the prudential assessment of acquisitions and increases in control (Change in Control Guidelines), and intends to issue final non-Handbook guidance in Q4 2024.
- The FCA is aiming to provide clarity on the factors it would consider when applying the assessment criteria and deciding when a proposed acquirer is suitable to control and / or direct a UK authorised firm. The changes will make the FCA Handbook requirements clearer and more transparent to persons proposing to acquire or increase control over a UK authorised firm.