On August 5, 2014, the FCA announced a temporary restriction on authorized firms in the UK from distributing, promoting or intermediating transactions in contingent convertible instruments (known as "CoCos") to retail investors. The restriction will apply from October 1, 2014 to October 1, 2015. The FCA intends to consult in September 2014 on proposed permanent rules on CoCos. The restriction is the first time that the UK regulator is using its consumer protection powers which came into force last year when the FCA and Prudential Regulation Authority took over from the Financial Services Authority. The announcement also follows statements by the European Authorities expressing concerns about the potential risks of investing in CoCos.
The FCA announcement is available at: http://www.fca.org.uk/news/restrictions-in-relation-to-the-retail-distribution-of-contingent-convertible-instruments.
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