FSA publishes consultation on changes to client asset rules
31 March 2010 at 15:30
The Financial Services Authority (FSA) has published a consultation on changes to its client asset rules, to ensure that clients are confident their money and assets are safe.
It will also look to assure clients that their assets will be returned within a reasonable timeframe in the event that a firm becomes insolvent.
Talking about the consultation, FSA director of prudential policy Paul Sharma commented: "It outlines a number of areas where we believe the client assets sourcebook can be strengthened to ensure greater protection of client assets and financial stability as a whole."
The consultation focuses on a number of areas including the introduction of a client money and assets return, which will be reviewed and authorised on a monthly basis for medium-large businesses and twice a year for small firms.
In a recent development, the FSA published new rules to remove commission bias from advice on retail investment products, designed to help improve consumer confidence in this market.