Training Courses
FSA Regulatory Workshop for Property Firms
Category: Property
Course level: Introductory to Intermediate
In house
This 3-hour workshop is designed for the senior managers and surveyors in property firms, as well as property investment managers in asset management firms.
It will look at what business activities are regulated by the FSA and best practice to adopt to ensure compliance.
It will explore the boundaries of FSA regulation with non-regulated activities and the differing approaches to anti-money laundering by the RICS and the FSA.
The workshop will also look at the individual responsibilities of senior managers and penalties for failing to ensure well-regulated markets.
Objectives
By the end of this workshop, delegates will have a better understanding of:
- perimeter guidance – i.e., which activities are affected by the FSA regulations?
- dealing with the new principles-based approach of the FSA
- responsibilities of senior managers and Approved Persons
- risk-based systems and controls
- impact of MiFID on property funds and financial promotion
- new products in the property markets – REITS and property derivatives
- Market Abuse regime
- anti-money laundering procedure
Length
3 hoursCourse Content
Role of the Financial Services Authority
The Financial Services & Markets Act 2000
Regulatory objectives
Key principles for firms
FSA powers – investigation, authorisation, enforcement
New principles-based approach
Which activities require a firm to be authorised?
Which activities and instruments are affected (perimeter guidance)?
Designated vs non-regulated business
Regulated investments
Dealing in shares of property companies (quoted and unquoted)
Authorised and unauthorised Collective Investment Schemes
Partnerships
MiFID
What is MiFID? An overview of the directive and peripheral guidance for property firms
Client classification
Best execution
Market transparency
Suitability
Implementation deadline
Recent FSA consultations
Gap analysis
What does MiFID mean for your firm and its activities?
Financial promotion rules
When do they apply?
Which type of investment do they apply to?
Client classification
Changes under MiFID
Ch 14 and Ch 15 listing rules – impact of MiFID
Scope for property funds
Risk warnings
Approved Persons regime
Controlled Functions – when does this apply to the property team?
FSA Principles for Approved Persons
FSA Enforcement against Approved Persons
Employing a new Approved Person
What documentation is required?
Credit checks and other references
Training & Competence regime
Record keeping
Changes to the Approved Persons regime under
PS 06/01 & 07/03 and 07/04
Senior management / Significant Influencers
Who are ‘Significant Influencers’?
FSA Principles for Significant Influencers
Responsibilities of Significant Influencers and penalties for failure
What are their individual responsibilities and penalties for breaches?
Systems & Controls
Defining risk-based supervision
Apportionment of responsibility
Evidence and record keeping
Audit committees, internal audit, risk and compliance functions
Disaster recovery
Property funds
Collective Investment Schemes
New FSA COLL Sourcebook
Wider investment powers for Authorised Investment Funds
Wider use of derivatives
REITS
What is a REIT?
Advantages of REITs
Impact on the property market
HMT Treasury consultation, July 2007
Property derivatives
Common tools used – swaps and futures
Using derivatives to manage risk in a property portfolio
Case studies
Market Abuse regime
What constitutes market abuse?
What are the penalties?
Which type of property deals might be covered?
Market Abuse Directive – insider lists
The Money Laundering regime and property companies
Third Money Laundering directive
The Law vs Regulation (FSA vs RICS guidelines, including areas of conflict)
Identifying the counterparties to a deal:
What information is required and where can it be sourced?
Record keeping
Can you rely on third-party comfort letters?
This course would be suitable for:
- Property specialist
