FCA delays statutory trust plans but confirms new safeguarding rules. Firms must comply by May 2026, with early planning key to readiness.
The Financial Conduct Authority (FCA) has listened to the industry and decided not to implement its proposals for a statutory trust and requiring the receipt of relevant funds directly into a designated safeguarding bank account, for now.
The FCA states that once a full audit period has been completed (approximately Q4 2027) under the new rules, it will review its implementation and consult on further proposals if changes are necessary. However, the FCA is sending a clear message that it expects the industry to play its part by complying with its new rules for safeguarding.
Firms now have until May 7, 2026, to comply with a wide range of new requirements. This is an extension by the FCA of the previous 6-month implementation period to 9 months.
Key to preparing for the new regime effectively will be early planning, engagement of the board and senior management, adequate resourcing, and evidence of compliance.
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