RISK AND GOVERNANCE

Firms using a transitional provision for MIFIDRU disclosure will now no longer be able to, with the full disclosure requirements now in force. Firms who do not make their public disclosures in a timely fashion or include the required information, will eventually attract the attention of the FCA. This may lead to a review of…

The Financial Conduct Authority (FCA) is seeking comments on recently published draft guidelines regarding financial promotions on social media. These draft guidelines will update and replace the 2015 Finalised Guidance ‘Social media and customer communications’ (FG15/4) that was primarily based on ‘character-limited’ media such as Twitter. The stated aim of the draft guidelines is to…

The Consumer Duty marks a notable change in the standards expected by the FCA. Companies should have been working diligently and many have, which will enable them to meet the requirements set out by the Duty with enhancements to multiple aspects of their operations, in particular processes and policies. The latest survey conducted by the…

Those aiming to make use of marketing and promotions of crypto assets in the UK will need to dedicate considerable effort in the coming months to adapt to the new regulations. FCA guidelines indicate that firms will need to seek full authorisation or register under anti-money laundering regulations, a potentially complex process considering the deadline…

The Financial Conduct Authority (FCA) has released a Policy Statement (PS 23/4) outlining changes to equity secondary markets. These changes are part of the broader Wholesale Markets Review and have been developed in consultation with the government. The FCA’s amendments cover various aspects, including post-trade transparency reports, a new designated reporter status for over-the-counter (OTC)…

On 10th May 2023, Sheldon Mills delivered a speech to Ernest and Young in relation to the Consumer Duty (the Duty) in which he highlighted the anticipated benefits and elaborated on ‘fair value’. The benefits of the Duty The FCA believes the outcomes of the Duty should align with the objectives of firms by promoting…

The Financial Conduct Authority (FCA) recently published it’s observations on the implementation of the Investment Firm Prudential Regime (IFPR) which has been in effect for 15 months. We have found through our work with clients that the complexity and nuance involved in the new rules have led to some uncertainty about whether they have fully…

Chief Executive, Nikhil Rathi has set out the FCA’s strategy in a short introduction to the “Our Strategy 2022-2025” publication. It explains how authorisation applicants and existing firms will face higher scrutiny, resulting in more intervention and enforcement which will focus on results and outcomes rather than processes. The FCA will have 3 primary focal…

On 10 March, the FCA published a new multi-firm review (found here) focusing on FGFs, specifically CFD providers, wealth managers and payment services providers. Firms that the FCA has identified as being an FGF should take full notice of this review. For firms not considered part of the FGF group, the feedback is also relevant,…

As we start the new year afresh, we thought it would be helpful to share four of the most common things that firms might forget that can lead to problems later! Dates of regulatory returns due – Check RegData periodically (at least monthly) to see when items need to be submitted by. Some returns require…

On 22 July the FCA published PS22/9 its final rules and guidance for the new Consumer Duty (“the Duty”). The FCA’s aim is to set higher and clearer standards of consumer protection across financial services requiring firms to put their customers’ needs first. The Duty comprises of three elements: a new Consumer Principle that requires…

Regulatory Update July 2022 In this issue we cover: FCA Consumer Duty rules FCA fines for failures in AML and financial crime controls Changes to FCA firm reference Numbers (FRNs) and product reference numbers (PRNs) CryptoSprint outputs LIBOR latest news FCA regulated fees and levies 2022/23 Improving equity secondary markets Compromises for regulated firms FCA…

Regulatory Update June 2022 In this issue we cover: PRA speech – Supervisory expectations on operational resilience   FCA speech – Improving financial inclusion New FCA appointments Data reporting services providers FCA speech – Innovation and Regulation Future of financial services regulation FOS future funding model Updated FCA webpage – Accessing and using wholesale data HM…

Regulatory Update May 2022 In this issue we cover: Critical issues in regulation Implementing operational resilience frameworks: PRA speech Investment platforms: costs and charges Financial promotions: FCA Dear CEO letter FCA reminds consumers of cryptoasset risks Queen’s Speech: implications to financial services FCA CryptoSprint PSR Panel’s digital payments initiative FCA unveils new reporting platform for…

In light of the FCA’s ongoing consultations on Consumer Duty (CP21/13 and CP21/36) we summarise the important points that FCA regulated firms dealing with retail clients need to be aware of. Firms dealing with retail clients need to prepare immediately for the incoming Consumer Duty regulations to avoid the severe penalties of non-compliance. The regulations…

Regulatory Update April 2022 In this issue we cover: FCA Thematic Review – Observations on wind-down planning FCA confirms PRIIPs regulations FOS finalises plans and budget for 2022/23 Financial sanctions and notification obligations – latest FCA update ESMA Guidelines on aspects of the MiFID II appropriateness and execution-only requirements The FCA publishes its review in…

Regulatory Update March 2022 In this issue we cover: AI report signals future financial services regulation MiFID II UK Shake Up Barclays fined £783,800 by FCA for oversight failings with Premier FX Increase to Financial Ombudsman Service award limits ESMA issues specific recommendations to CySEC over its supervision of cross-border investment activities FCA publishes portfolio…