PDF《consumers. 2》

1 FCA statement of policy - making temporary product intervention rules Introduction 1.

1. This statement sets out the Financial Conduct Authority'

s (FCA) policy on the making of temporary product intervention rules.1 1.2. The FCA may consider that it is necessary or expedient to make temporary product intervention rules where the delay involved in complying with the requirements for public consultation would prejudice the interests of consumers.2 1.3. Temporary rules will be limited in duration, but may be necessary to offer protection to consumers in the short term, while allowing either the FCA or industry to develop a more permanent solution to address the source of detriment. 1.4. Temporary product intervention rules sit alongside other regulatory tools, such as general rules (including non-temporary product intervention rules), guidance, Variations of Permission3 and supervisory and enforcement action. The choice of which approach is used in any particular situation will be made based on the facts of the case. However, if firms follow our existing principles, rules and guidance, we expect that the need to use temporary product intervention rules will be limited. 1.5. Decisions to make any rules, including temporary product intervention rules, will be taken by the FCA Board. 1.6. In publishing temporary product intervention rules, the FCA will also publish the rationale for introducing these rules. 1.7. Below and in the annexes we provide a summary of the process that the FCA will use to develop temporary product intervention rules, and give some examples of the factors the FCA will consider when making these rules. Temporary product intervention rules 1.8. The FCA is normally obliged to consult the public before making any rules. However, the Bill provides a general exemption to this requirement if the FCA considers that the delay involved in complying with the requirement would be prejudicial to the interests of consumers.4

1 This statement is required by s.138O of the Financial Services and Markets Act

2000 (as amended) (FSMA). For the purposes of this document, Temporary product intervention rules are product intervention rules made without prior consultation as defined in s.138M.

2 For instance, because there is a risk of significant consumer detriment that is likely to grow or materialise if consumers enter (or continue to enter) into binding arrangements involving the product in question.

3 By the regulator, known as Own Initiative Variations of Permission (OIVoP).

4 The interests of consumers are defined in s.425A.

2 1.9. The FCA may make rules about product intervention without consultation if it considers that it is necessary or expedient not to comply with such requirement for the purpose of advancing: a) the consumer protection objective;

b) the competition objective;

or c) if the Treasury makes such an order, the market integrity objective. 1.10. Product intervention rules made without consultation are limited to no more than

12 months'

duration and are known as '

temporary product intervention rules'

. 1.11. The FCA will discuss any proposed rule, including temporary product intervention rules, with the Prudential Regulatory Authority (PRA) and give their comments due weight and consideration before making the rules. Factors the FCA will consider when making temporary product intervention rules 1.12. In making temporary product intervention rules (as with any other product intervention rule), the FCA will have regard to whether such rules would be: a) an appropriate and effective means of addressing actual or potential consumer detriment associated with a particular product or group of products;