1st November 2007

New FSA rule book arrives today

The FSA’s new conduct of business sourcebook comes into force today in parallel with the introduction of the Markets in Financial Instruments Directive.

The new rulebook incorporates the implementation of the relevant conduct of business provisions of Mifid and will cover all advisers both inside and outside the scope of the directive.

The FSA says the new rulebook will benefit consumers by enabling firms to better tailor their products and services to their target audience whilst maintaining robust standards of consumer protection.

There will be an emphasis on more principles-based regulation means focusing on the outcomes that matter, rather than processes and procedures. COBS gives firms the flexibility to achieve the regulatory outcomes the FSA expect in a way that suits them best, but this comes with greater responsibility on firms' senior management to meet these outcomes.