Emma RadmoreFCA has published a statement confirming the broad approach it intends to take to complaints made to it in relation The Connaught Income Fund Series 1 and connected companies. The majority of complaints received from...
Category - Funds
Duncan ScottESMA updates funds FAQs
ESMA has updated its FAQs in respect of the AIFMD and the UCITS Directive, both in respect of performance fees.
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
Lucy HadrillFCA gives speech on diversity and inclusion
Georgina Philippou, Senior Adviser to FCA on the Public Sector Equality Duty gave a speech at the launch of a report by the Investment Associate and Eversheds entitled “Building Ethnic Diversity and Inclusion in...
FS Bill finishes Lords Committee stage
The Financial Services Bill has finished its discussions at Committee Stage in the Lords. The next stage, the Report stage, has not yet been announced.
Proprietary injunction and Bankers Trust Order made in fraud case involving cryptocurrency
In the unreported case of Ion Science Ltd v Persons unknown and others (21 December 2020 – Commercial Court), the Commercial Court granted a proprietary injunction, worldwide freezing order and ancillary...
Scott NodderFCA publishes MiFID 2 product governance review
FCA has published the results of a review that looked at product governance in 8 asset management firms who are manufacturers of products. It examined particularly how the firms take into account the interests of end...
ESAs agree PRIIPs KID changes
The ESAs have suggested to the European Commission a package of changes to the PRIIPs KID. The main proposals for change are: new methodologies to calculate appropriate performance scenarios and a revised presentation...
ESMA publishes fund distribution ITS
ESMA has published a report with implementing standards under the Regulation on cross-border fund distribution. The ITS focus on: publication on national regulatory websites of national requirements for marketing of...
Treasury calls for Input on UK funds regime
Treasury has published a Call for Input on the UK funds regime. It views Brexit and the emergence from the pandemic as an opportunity to improve the funds regime to give a wider range of more efficient investments...
Barry StimpsonFCA publishes Covid resilience survey results
FCA has published the results of the survey it sent to 23,000 forms on the real-time effect the pandemic is having on their resilience. Among its conclusions are: failures of firms due to the economic downturn are...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
Angie BamboulisFCA censures firm in relation to Connaught investments
FCA has publicly censured Blue Gate Capital Limited and ordered it to pay £203,000 in restitution to investors who invested in the Connaught Income Fund, Series 1. The Fund was a UCIS, which Blue Gate took over as...
PRA notes FCA “long-term absence” consultation
PRA has drawn the attention of firms to a joint chapter in FCA’s latest quarterly consultation on clarifying regulatory expectations for temporary long-term absences. The regulators plan to clarify what they...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
ESMA speaks on challenges for fund managers
Verena Ross has spoken on the challenges for fund managers. She spoke briefly of how the sector has responded to the pandemic so far, but focussed on Brexit. She said that firms have now had 4 years to prepare for the...
ESMA consults on fund marketing communications
ESMA is consulting on draft guidelines to specify the requirements for marketing communications promoting both UCITS and AIFs under the Regulation on facilitating cross-border distribution of collective investment...
Government heralds future financial services regulation
Rishi Sunak has announced a range of measures the UK is now to take to ensure the financial services industry moves forward. In a speech, he praised all the measures the industry has taken to date and through the...
FCA updates on EEA regulator Brexit guidance
FCA has put together an information page sharing links to the websites of EEA regulators on which they have published guidance about the effects of Brexit on UK firms operating in their jurisdictions. Some of the pages...
Second Bill reading due 9 November
The second reading of the Financial Services Bill in Parliament is scheduled for 9 November.
Commission consults on AIFMD review
The European Commission has launched a consultation on its review of the AIFMD. The consultation is open until 29 January 2021. The Commission wants to gather views from AIFMs, distributors, industry representatives...
Financial Services Bill starts Parliamentary passage
The Financial Services Bill was introduced into Parliament on 21 October. The key aims of the Bill are: to implement the remaining Basel 3 standards; to create a more proportionate investment firms’ prudential...
Commission consults on ELTIF Regulation review
The European Commission has launched a consultation in relation to its review of the Regulation on European long-term investment funds (ELTIFs). The Commission is seeking views on various issues grouped under the...
HMT consults on financial services regulatory framework post-Brexit
HM Treasury has published a consultation paper in relation to Phase II of its Financial Services Future Regulatory Framework Review. HMT is seeking views on proposals for the financial services regulatory framework post...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
Lords responds to HMT on equivalence
Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...
HMT writes to House of Lords on equivalence
The Economic Secretary to HM Treasury, John Glen MP, has responded to the House of Lords EU Services Sub-Committee’s queries on UK-EU regulatory cooperation for UK financial services post-Brexit. In its letter to...
FCA reopens TPR window and tells fund managers to update
FCA has reopened the TPR window for EEA firms and fund managers that have not previously done so to make notifications if they wish to use the regime. The window will close on 30 December. Fund managers are also able...
FCA speaks on culture in investment management sector
Marc Teasdale has spoken on FCA’s work with the asset management sector, and how it is intended more closely to align the sector with its essential purpose – that is, protecting and growing the capital and...
FCA confirms fund reporting extension deadlines
FCA has announced its plans to end the temporary reliefs it had given to fund managers to give them more time to produce their periodic reports. It plans: to keep the relief in place for funds with an annual or half...
FCA launches open-ended funds survey
FCA has published a survey to kick-start the joint review it and the BoE are carrying out of liquidity mismatch in open ended funds. The survey was originally due to launch in March. It has asked asset managers to...
FCA to reopen TPR window
FCA has updated its website pages on the Temporary Permissions Regime. It plans to reopen the TPR notification window on 30 September to allow for further new notifications, and to allow fund managers to update...
ESMA recommends priority topics in Commission’s AIFMD review
The European Securities and Markets Authority (“ESMA“) has written to the European Commission (“the Commission“) highlighting areas to consider during its review of the Alternative Investment...
Amelia GreenFCA consults on open-ended fund improvements
FCA is consulting on reducing the potential for investor harm from the liquidity mismatch in open-ended property funds. Investor harm is caused by the fact that investors can redeem frequently, often daily, yet the...
Treasury amends PRIIPs requirements
Treasury has published a policy statement on how it proposes to amend the PRIIPs Regulation as it onshores it. It plans early changes to address the most pressing concerns and to ensure the regime provides more...
Commission updates Brexit preparedness notices
The Commission has added more notices to stakeholders on preparing for Brexit and the consequences of loss of the passport. Among the notices now updated are those for: asset management consumer protection credit rating...
FCA speaks on investment management role in recovery
Christopher Woolard has spoken to the IA on the role investment managers could play in the post-Covid recovery. He said he is very proud of what FCA has managed to achieve during the crisis to provide the regulatory...
Commission begins Brexit warning notices
The European Commission has stated the process of sending Stakeholder Preparedness Notices, to summarise for stakeholders the effect of Brexit on over 100 sectors. It had originally published these notices during...
FCA reformats Brexit advice
FCA has revamped its information page on Brexit. The page gives advice to firms on what they should be considering in preparation for the end of the transition period. Much of the information is not news, and includes a...
Up next from FCA
Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...
Treasury agrees future UK/Switzerland relationship
Rishi Sunak has confirmed that he and his Swiss counterpart have signed an agreement to develop a deep agreement on financial services once the Treasury acquires its new “equivalence” powers after the end of...
Barnier speaks on Brexit
Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations. He noted the desire to give the EU/UK negotiations “every chance of succeeding”. He noted he had rescheduled many other meetings...
FCA makes new rules
FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...
Identity of lenders in peer-to-peer lending platform protected by Chancery Appeals Court
In Andrew Milne v Open Access Finance Ltd [2020] EWHC 1420 (Ch) the Court rejected an appeal against the making of a representative order under CPR r. 19.6 but allowed the appeal challenging the identity of that...
Commission reports on AIFMD impact
The European Commission has published the report required by the AIFMD on the effects the Directive has had on the alternative investment funds industry. Its review covered 13 Member States, selected to give a broad...
Commission consults on green finance preferences
The European Commission is consulting on a set of draft delegated Regulations that would oblige AIFs and other investment funds, investment firms, insurance firms and brokers, (re)insurers and mutual funds to advise...
ESMA opines on compliance function
ESMA has given new guidance on the MiFID 2 compliance function, replacing 2012 guidance. The new version aims to provide more clarity and more convergence in implementation and supervision of the requirements of MiFID...
Up next from FCA
FCA’s latest Policy Development Update highlights the following publications due over the next few months: CP on marketing speculative illiquid securities to retail investors (including speculative mini-bonds); CP...
ESMA consults on cloud outsourcing guidelines
ESMA published a consultation paper today on guidelines for outsourcing to cloud service providers. The consultation, which closes on 1 September, looks at the detail of the proposed guidelines which will provide...
Jonny WilliamsGovernment publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
FCA updates on Covid-19 and complaints
FCA has updated its webpage on how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...
FMLC responds on Overseas Funds Regime
FMLC has published its response to Treasury’s consultation on a new Overseas Funds Regime. It notes: the uncertainty around the timing of the start of the new regime – and whether the new regime will overlap...
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
FCA speaks on response to Covid-19 and Brexit
Nausicaa Delfas has spoken on FCA’s national and international response to Covid-19 and Brexit. On Covid-19, she noted: FCA’s priority to keep markets open and orderly, help firms continue to operate...
Complaints Commissioner decides on Connaught Complaint
The Complaints Commissioner has published his decision in relation to complaint brought by Mark Bishop about the actions of the FCA’s Chair and Chief Executive in relation to the establishment of the independent...
Government sets out equivalence views
John Glen has written to the Chair of the European Scrutiny Committee explaining the Government’s stance on equivalence in financial services. The Government cannot provide great detail given the early stage of...
UK and Switzerland work to strengthen ties
Economiesuisse and The CityUK have been working on a joint position paper setting out how to strengthen the countries’ relationship in the time of coronavirus and in the future. In terms of financial services, the...
COVID-19: the Future Fund – bridge funding for UK start-ups
The Government is setting up a co-investment fund, known as the “Future Fund”, to provide convertible loans of between £125,000 and £5 million to UK high growth companies. The Future Fund should provide...
Suzanne GadoRegulator Covid-19 update 23 April
On 23 April: PRA followed up on its letter to insurers, noting that all insurers should consider carefully the previous letter and guidance on use of unrated assets and assessments of creditworthiness, and the...
Financial Services Bill measures
I wrote an article for Compliance Monitor on the current consultations and plans for financial services regulation under the Financial Services Bill initiative.
EU Council adopts sustainable finance taxonomy
The Council of the EU (“the Council“) has adopted a regulation setting out an EU-wide classification system which will enable businesses and investors to identify economic activities which are considered...
FCA updates on funds expectations
FCA has updated its website in respect of funds and Covid-19. It has added sections on: its flexibility around statements on 10% portfolio value reporting – which is the same as for retail business as outlined by...
Regulator Covid-19 update 9 April
On 9 April, in addition to FCA’s confirmation of its new measures to help retail banking customers: ESMA told national regulators to adopt a risk-based approach where fund managers are unable to prepare periodic...
FCA consults on fees
FCA has published its fees and levies proposals for 2020/2021. Covid-19 has affected FCA’s plans, and it is taking action to protect small and medium sized firms from the burden of regulatory fees. Comments are...
ESMA publishes fund performance fee guidance
ESMA has published guidance on performance fees in investment funds, applicable to UCITS and AIFs that are open-ended (but not EuVECAs). The guidelines are designed to harmonise the way fund managers charge performance...
Parliament Committee seeks equivalence answers
The Third Report of Session of the House of Commons European Scrutiny Committee seeks clarification on the Government’s intentions for negotiations of equivalence arrangements with the EU from the end of the...
FOS confirms case fees and releases 2020/21 budget
FCA has confirmed FOS’ 2020/21 budget. Key elements include: continuing to allow 25 “fee” cases for firms outside the group account fee arrangement – so 90% of firms will pay no case fees; 50...
Lords calls for UK/EU cooperation
The House of Lords EU Financial Affairs Committee has written to Rishi Sunak urging the government to set up a structured dialogue with the EU that will support cross-border financial services. It wants: to minimise...
Regulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Government confirms extension of TTP
In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...
FCA makes statement on fund suspensions
FCA has noted that some managers of commercial real estate funds have suspended dealings on the basis of current material uncertainty over the value of the underlying property, and says that suspension is likely to be...
PIFMA concerned about Open Finance
PIFMA has responded to FCA’s call for input on open finance. While it applauds FCA’s stance on encouraging innovation, and feels the financial services sector has lagged behind other sectors in adopting...
EU writes to Chancellor on equivalence
Valdis Dombrovskis has written to Rishi Sunak on equivalence assessments. The letter merely notes that both sides should start to assess equivalence as soon as possible, on the basis of the Political Declaration, with a...
Treasury consults on overseas funds regime
Treasury is consulting on the process for allowing overseas investment funds to be marketed in the UK. It says the current regime (Brexit apart) is not viable in the long-term, and proposes two new regimes, one for...
Treasury consults on UK/Gibraltar FS access
Treasury is consulting on the post-Brexit market access arrangements between the UK and Gibraltar. Constitutionally, Gibraltar is an Overseas Territory with internal self-government. Responsibility for financial...
Treasury Committee calls for better carbon footprint awareness
The Treasury Committee, as part of its inquiry on decarbonisation and green finance, is concerned that consumers need better help to understand the carbon footprint of financial products and has written to BoE and FCA...
Up next from FCA
FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...
FCA feeds back on Patient Capital
FCA has published feedback on its discussion paper on Patient Capital and authorised funds. The paper had asked whether there are any unnecessary barriers to investing in long term (patient) assets through authorised...
FCA writes to CEOs on end of LIBOR
FCA has written a Dear CEO letter to asset management firms on preparing for the end of LIBOR. It expects firms to take all reasonable steps to ensure the end of LIBOR does not lead to markets being disrupted or...
Rebecca JonesMore UK/EU policies revealed
The Government has published a policy paper on its approach to the future relationship with the EU. It sets out the Government’s suite of proposals, based around the desire for a comprehensive Free Trade...
Barnier to be EU negotiator on post-Brexit issues
The Council of the EU has adopted a decision authorising negotiations between the EU and UK towards a new partnership and authorising the European Commission, in the person of Michel Barnier, as the EU negotiator. The...
Financial services after Brexit updates
The EU Financial Affairs Sub-committee has opened an inquiry into financial services after Brexit and has been taking evidence. Most recently it has been questioning the BoE and FCA. They largely discussed the key...
ESMA Chair delivers speech on sustainable finance issues
On 12 February, Steven Maijoor delivered a keynote speech on sustainable financial markets at the European Financial Forum in Dublin. In his speech, Mr Maijoor discussed the role of regulatory authorities in tackling...
EP publishes negotiating mandate with UK
The European Parliament has published its proposed mandate for a new partnership with the UK. The declaration acknowledges that the “close relationship” that will subsist and which, according to the...
Up next from FCA
The latest Policy Development Update highlights the following publications before the end of Q1 2020: policy statement on fees and levies; consultation on exit fees in investment platforms and comparable firms;...
ESMA outlines sustainable finance strategy
On 6 February, ESMA published its sustainable finance strategy which sets out how ESMA plans to focus on sustainability. ESMA’s key priorities include: completing the regulatory framework on transparency...
FCA writes strategy letter to platforms
FCA’s latest portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...
FCA updates further on post-Brexit issues
FCA has further updated its website with information on Brexit and Temporary Directions. It explains how: It will not need to use the Temporary Transitional Power it had previously made directions under, as the...
DExEU updates on FS equivalence post-Brexit
The Department for Exiting the EU has published an updated communication from the European Commission on equivalence in the area of financial services. The documentation notes that temporary equivalence decisions are...
FCA updates on asset management supervisory strategies
FCA has: written a Dear CEO letter about its asset management supervision strategy. The letter outlines FCA’s view of the key causes of harm asset managers can post to their customers or the markets in which they...
Financial institutions raise concerns about PRIIPs RTS review
Insurance Europe, AMICE, the EBF and EFAMA (the Group) have raised concerns about The Joint Committee of the European Supervisory Authorities (the ESA’s) consultation on potential changes to the regulatory technical...
Rachael PrestonFCA publishes portfolio management tool review
FCA has published a report from its review of how a sample of 10 asset management firms selected and used risk modelling and other portfolio management tools. Key conclusions were: firms found it hard to assess whether...
Queen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
EVENT: Retail Banking Mixer
Bringing together professionals in the insurance, banking and other financial services sectors, we will be hosting the first of our quarterly RETAIL BANKING MIXERS at our Edinburgh office on 9th January from 4pm –...
Europe reaches agreement on ‘green taxonomy’ regulation
Negotiations between the European Parliament and Council have reached agreement on environmental objectives for determining the sustainability of an economic activity. The Commission proposal for a ‘taxonomy...
FPC publishes latest Financial Stability Report
In its latest Financial Stability Report, the FPC has published its latest stress testing results and current view on the stability and state of the UK financial system. In addition to its comments on open-ended funds...
FCA calls for input on open finance
FCA has launched a Call for Input on Open Finance. The concept builds on the principles of open banking and extends it to a wider range of products. FCA has a vision that open finance will allow consumers and...
Open-ended funds review progresses
The Bank of England and FCA have issued a joint statement following a report by the FPC of the progress of their joint investigation into risks poses by liquidity mismatches of open-ended funds. The FPC noted a number...
FCA makes new rules
FCA has published new rules on: conduct of business in what it refers to as “speculative illiquid securities” (taking effect on 1 January 2020 and 1 December 2020). These rules create a temporary product...
FCA makes platform transfer rules
FCA has made new rules to make it easier for consumers to move between investment platforms and thereby improve competition. The rules form part of the Investment Platforms Market Study remedy package and will take...
Extension of the Senior Managers and Certification Regime comes into force
The FCA has extended the Senior Managers and Certification Regime (SM&CR) to solo-regulated firms, including senior managers and certification staff in those firms. The SM&CR already applies to the banking and...
FUNDamentals Series: Event 2
This Tuesday we hosted the second seminar in our FUNDamentals series in our Edinburgh office. The session was jointly hosted with NCM Fund Services and Aberdeen Standard Investments and focussed on exploring Real...
Regulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
Roseyna Jahangir