Comments on the draft amended Fiduciary Rules and draft amended Capital Adequacy Rules (together “the Rules”) were received from three respondents. Some minor changes have been made to the final rules to ensure consistency of drafting but there has been no change to the substance of the requirements.
The Commission has now issued the amendments which give effect to the amended rules. The amending instruments include transitional provisions concerning insurance arrangements which enable licensees to make any necessary changes to comply with the amended rules at the point at which their insurance renewal falls due. The rules and guidance have been updated. Consolidated versions of the rules are available on the Commission’s website.
Background
In our December 2021 Consultation Paper on Professional Indemnity Insurance we asked for feedback on the proposed changes to requirements concerning professional indemnity insurance (“PII”) for the fiduciary and investment sectors, as set out in the Consultation Paper on Professional Indemnity Insurance Fiduciary and Investment Sectors (“CP”).
A feedback statement on the CP can be found at the link below. Alongside the feedback statement the Commission has issued final drafts of the relevant amended Rules wording, taking into account comments received during the consultation. A final eight-week consultation period is being offered to provide an opportunity to identify any “fatal flaws” in the draft amended Rules, after which amendments will be formally adopted. Copies of the draft amended Fiduciary Rules and Guidance, 2021 and draft amended Capital Adequacy Rules and Guidance, 2021 are available at the links below.
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