FSA flagship project in the regulator's move towards more principles-based regulation, reform of the FSA's investment rules, came into force yesterday. The Conduct of Business Sourcebook (COBS) is designed to move away from reliance on detailed prescriptive rules and will be about half the length of the old rulebook.

The new rulebook incorporates the implementation of the relevant conduct of business provisions of the Markets in Financial Instruments Directive (MiFID), but also covers firms and business outside MiFID scope.

‘The new rulebook will be easier for firms to understand and comply with, and we are committed to working with the industry, as well as consumer bodies, to achieve successful implementation of these significant changes,’ Dan Waters, FSA director of the retail policy and themes division, said yesterday.

‘Although the introduction of COBS is being co-ordinated with MiFID implementation, COBS covers non-MiFID firms as well, and it is vital that all firms subject to the regime implement the necessary changes.’

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