FIA Submits Public Comments on the IOSCO Customer Protection Consultation Consultation Report, Particularly Principle 5 (with YouTube Link)

The Futures Industry Association ("FIA") submitted comments to IOSCO regarding its recommendations in its Protection of Client Assets Consultation Report. In the letter, FIA states that while it generally supports the principles, it has concerns with two proposals.

• Principle 5 would require intermediaries, such as futures commission merchants, to highlight to their customers the material differences in client asset protection and/or insolvency regimes outside of their home jurisdictions. FIA cautioned that the intermediary is not in the position of a legal advisor to its clients.
• FIA also raised concerns about a proposal that would require intermediaries to be able to provide client asset calculations at any time. FIA cautioned that intraday runs would be "a major drain on technology resources and would cause many other essential systems to slow or fail," suggesting that such a requirement is even more difficult in the case of bunched orders.

Click here to view letter in full (links externally to FIA website).Related News: "IOSCO Publishes Recommendations Regarding the Protection of Client Assets (with Lofchie Comment)" (Feb. 8, 2013) and "NFA Submits Public Comments on the IOSCO Customer Protection Consultation Consultation Report" (March 27, 2013).See also: Al Jarreau, Take Five (links to youtube)