FSA Annual Report 2006/07 - Better Regulation Ltd

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Section six – Appendices
Appendix 6b
▲ 10
▲ 17
▲ 21
▲23
▲38
▲ 39
▲ 44
▲ 51
▲ 56
▲ 58
▲ 64
▲ 65
▲ 69
▲70
▲ 73
Appendix 6b EXPLANATORY NOTES
▲ Milestone changed (explanation provided here) ▲ Milestone met early (explanation provided here)
Current Status Comment on progress
(1) Delayed more
than a quarter
Consultation Paper on information supplied to consumers at the point of sale including feedback on projection requirements and new proposals for key facts: this milestone
was moved from Q1 to Q4 as a result of the shift in the MiFID negotiating timetable and the results of the cost-benefit analysis. The CP was published in October 2006.
(2) Delayed
one quarter
Consultation Paper on Integrated Regulatory Reporting for deposit taking and principal position takers: publication was deferred to May 2006, due to the fact that CRD
impacts on all scope firms from January 2007, rather than just those that chose to switch to new approaches. CP06/11 Integrated Regulatory Reporting (IRR): Credit
institutions and certain investment firms was published on 31 May.
(3) Minor delay Trading transparency in the UK secondary bond markets - Feedback on DP05/5: the feedback statement was published a few days late on 5 July.
(4) Removed
TCF Complaints DP: we have decided to hold back on the production of a DP (and CP in Q1 2007, see milestone 65 below) and are currently reviewing the best way
to communicate this work stream.
(5) Ahead by
one quarter
Consultation Paper on Implementing the Reinsurance Directive: the CP was published ahead of schedule on 20 June.
(6) Minor delay Consultation Paper on Listing Rules: delayed by one week due to dependencies on limited resources. The CP was published on 5 October.
(7) Delayed more
than a quarter
Consultation Paper on FSCS Funding Review: the FSCS Funding Review has been a highly complex issue requiring extensive review and analysis. The Discussion Paper
published in March 2006 received the highest number of responses to any DP or CP issued by the FSA. The work undertaken by Oxera, the external consultants, also
took longer to finalise than originally anticipated. We have also engaged key stakeholders in the lengthy discussions and analysis to ensure active engagement in the
review. The Consultation Paper was published on 20 March 2007.
(8) Removed
Feedback Statement to the CP on information supplied to consumers at the point of sale including feedback on projection requirements and new proposals for key facts:
as the CP has been moved from Q1 to Q4 (see note 1 for milestone 10 above), we anticipate that the Feedback Statement will be published in the next financial year.
(9) Delayed
one quarter
Effectiveness Review: GI stage 1 report: following agreement at RPC, this was moved from Q4 2006 to Q1 2007, to take account of expansion of the original
effectiveness review to include a fundamental review of the regime. ICOB Review Interim Report: Consumer Experiences and Outcomes in General Insurance Markets was
published on 21 March 2007.
(10) Ahead by
four months
The Better Regulation Plan Progress Report: we had planned to issue an update to our Better Regulation Plan in Q4 2006, to outline the progress we have made and our
plans for further work. We decided to publish this early, at the end of Q2 2006, alongside the Cost of Regulation and administrative burden studies in order to better
explain to stakeholders how we would be using the results of these studies to further improve regulation.
(11) Amended
Implementation of the Transparency Directive and Investment entities review: the Transparency Directive was implemented on 20 January 2007. However, the Transparency
Directive and the Investment entities review have been de-coupled, with the implementation of the Investment entities review now expected in the summer of 2007.
(12) Removed See note 4 for milestone 23 above.
(13) Amended
Consultation Paper on UCITS – eligible assets/permitted links: the European Commission has delayed publication of its eligible assets instrument, so this will not
be covered in the Q1 2007 CP. It is likely to be dealt with in a separate paper in Q2 2007. CP07/6 Funds of Alternative Investment Funds (FAIFs) was published
on 27 March and CP07/7 Permitted Links for Long Term Insurance Business was published on 28 March.
(14) Amended
Home reversions and Ijara home purchase plans – Implementation: in the 2006/07 Business Plan, we had tentatively suggested a delivery date of Q1 2007. However
HM Treasury subsequently set an implementation date of 6 April, and this is reflected in the 07/08 Business Plan.
(15) Delayed
one quarter
Financial Reporting by CRD Firms – Implementation: the Early Reporting System (ERS) went live at the end of January as planned. The BI has been delayed due to a fault
with the transfer of submitted data to the ERS data store, affecting the accuracy of the BI outputs, which was discovered during the testing process. A fix has been
identified and a plan is being worked on to ensure that this is dealt with as quickly as possible. Supervisors are aware of the delay and have view access of the data.
Implementation is currently expected to be at the end of April. This will be reflected in the relevant quarterly update against the 2007/08 Business Plan milestones.