The FCA may choose to review a temporary product intervention rule during the term for which the rule is in force. Such a review will generally depend on the perceived risk the rule seeks to mitigate. These reviews may be informed by market monitoring and feedback from stakeholders, including product manufacturers, distributors and clients.
Reviews are likely to consider whether a rule is functioning as intended, including whether:
there have been any breaches of the rule; or
there are any unintended consequences, such as an impact on products that were not intended to be caught by the rule; or
there is evidence suggesting firms are avoiding or seeking to avoid the rule rather than complying with it, for instance where new products enter the market or new features are added to existing products that expose clients to the same or similar potential detriment; or,
new evidence demonstrates that the rule is not necessary or detriment is unlikely.
However, the FCA may consult on a new rule to replace the temporary product intervention rule from the date on which the temporary product intervention rule ceases to have effect. This exercise would be subject to the FCA’s standard rule-making procedure including market failure analysis, cost benefit analysis and consultation to which all stakeholders, including manufacturers, distributors and clients would be invited to reply.