Dear client,
As of 18th January 2023 it is no longer a requirement to send clients a 10% drop notification.
As you may recall, rules surrounding the requirement to provide clients with a 10% drop notification (also referred to as a 10% depreciation notification) were relaxed during covid-19, with a 12-month extension announced in December 2021. This was to allow time for the HM Treasury to carry out and complete their wholesale markets review. The Treasury proceeded with recommending revoking the 10% drop notification requirement in its entirety. Interim measures remained in place between December 2022 and 18th January 2023. Further information is available here: 10% depreciation notifications.
10% depreciation notifications | FCA
Since March 2020 we have adopted temporary measures on the requirement for firms to issue 10% depreciation notifications to investors. This requirement arises from Article 62 of the MiFID Org Regulation as reproduced in COBS 16A.4.3 UK. The measures were put in place initially to help firms support consumers during market volatility linked to coronavirus (Covid-19) and the Brexit transitional ...
Kind Regards
Douglas Boyce
Managing Director
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