FCA speaks on asset management regulation

Meghan Butler has spoken on how FCA is clarifying its supervisory approach to asset managers. She looked at FCA’s mission and its recognition of the importance of the asset management industry. She spoke of the findings of the asset management review and said FCA is still working through responses. In the meantime, the CMA has asked for submissions on its investigation by 12 October. FCA will consult again on transparency-related points.

Separately, she spoke on the asset management hub which FCA is launching to support new market entrants. She said phase 1 is launching next month, and the support the hub offers will gradually expand. It will use the PRA’s new banks model to work on, and FCA will consider whether to expand a similar service to other sectors in time.

She moved on to discuss the extension of the SMR and MiFID 2, stressing the benefits they will bring – and noting that firms should check that all their underlying clients are aware of the need to get an LEI for trading under MiFID 2.

Finally she spoke about Brexit and emphasised FCA’s belief that there must been sensible outcomes on delegation so nothing is unnecessarily complicated.

She finished by outlining 5 questions firms should ask themselves to assess the conduct they expect and require.