FCA Issues Final Rules on Contingent Convertible Securities

The Financial Conduct Authority issued final rules on retail distribution of contingent convertible securities, among other recent regulatory developments, as outlined below.

Financial Conduct Authority (FCA)

FCA Issues Final Rules on Retail Distribution of CoCos

FCA has published its final rules on retail distribution of regulatory capital instruments — or contingent convertible securities (CoCos).

FCA regards CoCos and common equity Tier 1 share instruments issued by mutual societies as particularly susceptible to inappropriate distribution to retail investors. Its temporary product intervention rules restricting retail distribution of these instruments came into force on October 1, 2014, for a year. FCA consulted ...