On 6 December 2024, the FCA published Consultation Paper 24/26: Quarterly Consultation Paper No 46 (CP24/26).

In CP24/26 the FCA sets out the following miscellaneous amendments to the Handbook:

  • Minor amendments to the anti-greenwashing rule and the Sustainability Disclosure Requirements including:
    • Amend ESG 4.1.19R(2)(a) to clarify that where distributors are using the terms set out in ESG 4.3.2R(2) in either the name of a recognised scheme or a financial promotion relating to the scheme, they need to comply with both ESG 4.1.19R(2)(a) and ESG 4.1.19R(2)(b).
    • In ESG 4.3.1R(1)(a), remove the Glossary term link from the word ‘communicates’.
    • ESG 4.3.1R(1)(b), the FCA proposes to make clear its policy intention that the anti-greenwashing rule should be read consistently with COBS 4.2.1R(2)(b)(i) and (iii) by replicating the exclusions with respect to ‘an excluded communication’ and ‘a third-party prospectus’.
    • Amend ESG 4.3.7R to add the words ‘where it is not using a sustainability label’ to make clear that the manager of a feeder fund must only comply with ESG 4.3.5R(3) when they are not using a sustainability label.
    • Amend ESG 5.3.3R(6) to make clear that, where a manager is using a sustainability label, it must disclose the KPIs it is using under ESG 4.2.3R(3). Additionally, all managers, whether using a sustainability label or not, must include details of any metrics that a retail client may reasonably find useful in understanding the manager’s investment policy or strategy for the relevant product.
  • Amendments to SUP 16.11, SUP 16 Annex 20G and SUP 16 Annex 21R, to clarify or improve the wording for better understanding in relation to consumer credit product sales data reporting.
  • Increase the £100 medical condition premium trigger point for firms to signpost customers with pre-existing medical conditions to a directory of specialist providers and futureproof the threshold in line with inflation. To limit the number of entries in a medical cover firm directory to a single brand per firm.
  • Remove the requirement for UK insurance special purpose vehicles to comply with SYSC 3.2.8R and to allocate the SMF16 Compliance Oversight Function.
  • Update references to the new edition of the UK Corporate Governance Code in the Handbook.
  • Amend SUP 3.1.2R(5B) to address a gap in our rules that currently allows debt management firms to avoid submitting a Client Assets Sourcebook (CASS) audit.