SIFA 3.4 Structure of each sourcebook or manual

You will find transitional provisions in each sourcebook. Transitional provisions are rules that tell firms in business on or before 30 November 2001 (the date the FSA received its statutory powers known as N2) how to deal with the transition between the FSA rules and the equivalent rules of a previous regulator. There are some TSPs (Timeless Saving Provisions) that apply to your existing clients at 30 November 2001. These allow you to continue to use, or rely on documentation or compliance work undertaken in line with a previous regulator's rules provided the work remains valid and up to date. The Conduct of Business (COB) rules relating to terms of business, client agreements and client classification benefit from TSPs.

There are also some transitional rules for depolarisation which apply to the COB rules as amended by the Depolarisation Instrument 2004 and by the implementation of the Distance Marketing Directive. These state the period during which the transitional rules are to be in force.

Each chapter and most sections of the Handbook begin with a rule that sets out which firms the chapter or section applies to. For example, COB 5.4.1 R states 'This section applies to a firm that conducts designated investment business with or for a private customer but does not apply to a firm when providing basic advice on a stakeholder product'. We recommend that you read the application rule first before moving on, checking the terms in italics with the Handbook Glossary, where necessary. Any word that is in italics in the Handbook will be defined in the Handbook Glossary.