SFA issues rule waiver for electronic brokers

Clifford Chance, London

The UK Securities and Futures Authority (SFA) has issued a rule waiver for electronic brokers providing share dealing facilities. Currently SFA rule 4-144 requires a firm to provide each client with annual statements of the client`s custody business (which should include information required by SFA rule 4-113(1)). The SFA believes that requiring brokers to send this information to each client would result in duplication of effort where clients have access to this information on a website. It has therefore decided to grant a general waiver provided the brokers meet certain conditions.