FIN.

Category - Investments

FCA still concerned about wholesale data

FCA is to continue to investigate the markets for benchmarks, indices, credit ratings and trading data after responses to its call for input highlighted concerns that there is limited competition in the markets and that...

FCA outlines new authorisation fee structure

The FCA has set out the new structure for authorisation application fees which takes effect on 24 January 2022. The current charges are being condensed into 10 simple pricing categories and the following additional...

FCA confirms end-2021 LIBOR changes

FCA has reminded firms that publication of 24 LIBOR settings has ended – that is, all euro and Swiss Franc, all overnight/spot next, 1-week, 2-month and 12-month sterling and Japanese yen and 1-week and 2-month US...

EU updates on PRIIPs

The Council of the EU ha published details of the extension of the transitional arrangement that allows UCITS to choose whether to use the KID or the KIDD. The transitional arrangement was due to end in July 2022, but...

FCA publishes IFPR newsletter

The FCA has published a newsletter on IFPR which, among other things, reminds firms that the obligation to collect certain data in connection with the firm’s SNI status and K-factor calculations has begun (see...

CLLS considers Fin Prom onshoring

The City of London Law Society has published a letter written to the Treasury in July expressing concerns about how the “onshoring” of the Financial Promotion Order post-Brexit has affected the exemptions...

PRA updates on designating investment firms

The PRA has published policy statement 27/21 which sets out: the PRA’s updated Statement of Policy – designation of investment firms for prudential supervision by the PRA (at Appendix 1); and the instrument making...

FCA publishes quarterly consultation paper

The FCA has published its 34th quarterly consultation paper. The proposed changes to the FCA handbook include: Amending the Enforcement Guide to reflect the EU Exit Passport Regulations by providing information about...

EU fines banks for FX spot cartel

The European Commission has fined UBS, Barclays, RBS, HSBC and Credit Suisse a total of €344m for their participation in a foreign exchange spot cartel.  The first 4 banks settled (with UBS receiving full immunity for...

FCA finalises UK MiFID changes

FCA has finalised its proposals on changes to the research rules and removal of the best execution reporting in RTS 27 and 28 in relation to UK MiFID. FCA remains of the view that the changes were necessary to ensure...

FCA publishes final policy statement on IFPR

Following its first two policy statements, the FCA has published its third and final policy statement marking the completion of its rules to introduce the UK Investment Firm Prudential Regime (IFPR). The final rules...

ESMA reports on MAR sanctions

ESMA has published a report on the sanctions imposed by various member states under MAR during 2020.  Over the year, €17.5m in fines were imposed for over 500 breaches. The number of administrative actions was...

FCA updates on IFPR

The FCA has published the following additional MIFIDPRU applications forms under IFPR: Application under MIFIDPRU 2.3.1R to be exempt from disclosure requirements in MIFIDPRU 8 (disclosure by investment firms) for SNI...

Dormant Assets Bill under inspection

The Dormant Assets Bill is making its way through the House of Lords, where members have voted on two changes to the Bill at report stage. It will now has its third reading on the Lords before moving to the Commons. The...

FCA confirms more LIBOR rules

FCA has confirmed its new rules for: legacy use of synthetic LIBOR rates; and no new use of USD LIBOR. It will allow temporary use of synthetic sterling and yen LIBOR rates in all legacy LIBOR contracts other than...

FCA publishes IFPR amendments

FCA has set out several amendments it has made to the original text of the near-final IFPR Instrument, including changes to: The glossary definition of ‘UK parent investment firm’; MIFIDPRU 4.14.1R(2)(b) and...

FCA publishes updated complaints data

FCA has published its six-monthly set of data on complaints that firms receive.  Its latest findings include: a 7% decrease in complaints from H2 2016, with the 2.04m complaints being the lowest level since late 2016;...

NAO updates on BSPS

The National Audit Office has set a timescale for reporting in Spring 2022 on its investigation into the activities FCA has undertaken to regulate financial advice in relation to the restructure of the British Steel...

FCA publishes final IFPR rules

The FCA has converted the near-final rules from its first two policy statements on IFPR into final rules, which are set out in the legal instruments FCA 2021/38 and FCA 2021/39. The FCA will publish a third policy...

FCA publishes 2020/21 Perimeter Report

The FCA has published its latest Perimeter Report, in which it calls for greater consumer protection and legislative change to address concerns beyond its remit. Highlights include recommendations that: duties on...

PRA consults on trading activity wind-down

The Prudential Regulation Authority’s (PRA) has published the Consultation Paper CP20/21: “Trading activity wind-down“, which sets out the proposed expectations in respect of firms’ engagement in trading...

ESMA publishes 2022 work programme

ESMA has published its Work programme for the next year.  It plans to focus on: its supervisory powers over benchmarks, DRSPs and CCPs; the CMU; sustainable finance and innovation; convergence of supervisory and...

Court finds FSCS entitled to reject claim

The High Court has ruled on an application for judicial review of a decision by FSCS to refuse to compensate investors after an investment firm failed. The investors had bought wind bonds, initially before the firm in...

FCA publishes consumer investment strategy

The FCA has published a new strategy to give consumers the confidence to invest and to tackle investment harm. By 2025, the FCA aims to: reduce by 20% the number of consumers who could benefit from investment earnings...

Government and FCA respond on LCF Report

The Treasury Committee has published responses from the Treasury and the FCA to its report on the FCA’s regulation of London Capital & Finance plc (LCF). Highlights from the government’s response...

Commission updates PRIIPs KID standards

The European Commission has adopted new technical standards for the PRIIPs KID, which will apply from 1 July 2022 (so long as approved by the Council and Parliament), and will finally apply to all retail products. The...

Treasury consults on Banking Act amendment

Following the decision to remove FCA regulated 730k investment firms from the scope of the UK resolution regime, the government is now consulting on whether short-term liabilities owed to FCA investment firms should...

IOSCO publishes AI usage guidance

IOSCO has published guidance for supervisors of intermediaries and asset management firms when they use AI and machine learning.  It notes both the benefits and the risks of usage, and says that as use is growing...

FCA Chair speaks on risks of token regulation

Charles Randell, Chair of the FCA and PSR has delivered a speech on the risks of regulating crypto tokens. Speech highlights include: whilst platforms’ efforts to crack down on fraudulent advertisements are welcome, a...

FCA publishes requirements on SIPP operator

FCA has published the second supervisory notice it made in relation to DAC Pensions Limited, a small SIPP operator. The firm had accepted significant business from two EU-based introducers, operating in the UK under...

FCA, PRA and SEC enter derivatives MoU

The FCA, PRA and the US SEC have entered into a Memorandum of Understanding (MoU) in relation to consultation, cooperation and the exchange of information in the supervision and oversight of certain over-the-counter...

FCA launches third IFPR consultation

The FCA has published its third and final consultation on the IFPR. The IFPR creates a new regime for solo-regulated MiFID investment firms. The first consultation introduced the IFPR and focussed on the categorisation...

FCA updates on MIFIDPRU applications

Following the publication of various MIFIDPRU application forms on 27 July, the FCA has made further application forms available on its website. The FCA intends to make the remaining application forms and all...

FCA updates on IFPR

FCA has updated a number of pages on its website to reflect the forthcoming IFPR. Among other things, it has updated its pages on: authorisation applications for wholesale investment firms capital requirements...

FCA publishes second set of IFPR rules

FCA has published its second “near final” rules on elements of the new IFPR.  These rules cover : own funds requirements firms acting as clearing members and indirect clearing firms basic liquid assets...

FCA writes to authorised fund managers on ESG

The FCA has written to the chairs of authorised fund managers setting out its expectations on the design, delivery and disclosure of environmental, social and governance (ESG) and sustainable investment funds. The FCA...

FCA publishes Business Plan

FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...

ESMA warns of PFOF risks

ESMA has issued a warning to remind firms of the investor protection concerns around receipt of payment for order flow. It has previously said that it is unlikely that the receipt of PFOF would be compatible with MiFID...

PRA consults on designating investment firms

The PRA is proposing minor changes to its policy on designating investment firms. This includes a proposal to increase the base capital resources requirement for PRA-designated investment firms, thereby aligning it with...

FCA publishes first policy statement on IFPR

Following its consultation in December 2020, the FCA has published the first of its policy statements (PS) on the introduction of the UK Investment Firms Prudential Regime (IFPR). In general, the FCA has implemented its...

FCA bans crypto exchange Binance

Binance Markets Limited is not permitted to carry on any regulated activity in the UK without the prior written consent of the FCA. The FCA has also issued a warning about Binance.com, advising consumers to be wary of...

FCA publishes VOP refusal

FCA has published its final notice explaining its reasons for refusing a firm’s application to vary its permission. Gedik International Limited was authorised in February 2020 as an agency brokerage with a set of...

More of FS Act comes into force

The second Commencement Order under the FS Act 2021 brings into force: on 28 June the provisions on forfeiture of money in relation to EMIs and payment institutions, as they extend to Northern Ireland; and on 1 July...

Taskforce reports on regulatory reform

The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...