FCA Confirms Dealing Commission Rule Changes – Rob Moulton from Ashurst shares his briefing with us.
The FCA has now confirmed the rule changes that it will make following its consultation on the dealing commission rules in CP13/17. The FCA emphasises that the final rule changes “should ensure the use of commissions is interpreted correctly as a narrow exemption”, and the changes will certainly have that effect.
However, some of the changes, in particular new wording on mixed-use payments, are complicated and will not bring additional clarity to this important area.
Whilst the FCA says that “we do not see the change to the rule and evidential provision as marking a significant departure from the standards of compliance and record keeping we would expect compliant firms to already have in place”, the volume of feedback should have given the FCA an indication that the industry does not share this view.