IOSCO has published guidance on sound practices in complaint handling procedures for retail customers. The guidance includes a comparative analysis of processes and IOSCO hopes it will help jurisdictions identify and...
Category - Investments
Emma RadmoreUK makes Swiss MiFIR equivalence rules
The Markets in Financial Instruments (Swiss Equivalence) Regulations 2021 take effect on 3 February, and designate BX Swiss AG and SIX Swiss Exchange AG as “equivalent” for the purposes of trading under...
ESMA reminds firms about MiFID 2 reverse solicitation and Brexit
ESMA has written to firms noting that some “questionable practices” around reverse solicitation in the context of MiFID 2 have become apparent since Brexit. It gives as an example, pop up “I...
UK Government announces expansion of the Dormant Assets Scheme
The UK Government has announced the expansion of the Dormant Assets Scheme, which is a major boost as the UK recovers from the coronavirus pandemic. £800 million is set to be made available to communities across the UK...
Angie BamboulisMarket Watch on recordings and alternative working arrangements
The latest edition of FCA’s Market Watch looks at FCA’s expectations on firms on recording telephone conversations and electronic communications while alternative working arrangements are in place. FCA had...
PRA consults on supervision of international banks
The PRA is consulting on proposals regarding its approach to supervising the UK activities of PRA-authorised banks and designated investment firms that are headquartered outside of the UK. This includes those firms...
Lucy HadrillFCA 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...
FCA fines Charles Schwab over client asset failings
FCA has fined Charles Schwab UK Ltd nearly £9m for failing adequately to protect client assets, carrying out a regulated activity without permission and making a false statement to FCA . FCA found the firm changed its...
ESMA publishes cloud outsourcing guidelines
ESMA has published its final report on outsourcing to cloud service providers. The guidelines cover: risk assessment and due diligence on providers; governance, organisational and control frameworks for monitoring CSP...
Final reports on FCA supervision of LCF and Connaught make damning reading
The Government has published its final report on the outcome of the Independent Investigation into FCA’s regulation and supervision of London Capital & Finance plc. Dame Elizabeth Gloster delivered her report...
Treasury updates special resolution code
Treasury has updated its code of practice that sets out the tools and powers available under the Banking Act 2009 in respect of the special resolution regime.
FCA makes Remuneration Code changes
FCA has published its final rules on updating the dual-regulated firms’ Remuneration Code to reflect CRD V. It has finalised its guidance on proportionality for the dual-regulated firms code, and published a set...
FCA fines and bans individual for market abuse
FCA has fined a former portfolio manager, partner and CIO £100,00 and banned him as a result of market abuse. Corrado Abbattista worked for Fenicial Capital Management LLP. FCA found he had created a false and...
BoE Financial Stability Report
The Bank of England published the Financial Stability Report for December. The report sets out the Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or...
FCA consults on prudential regulation of MiFID firms
FCA is consulting on the first phase of its proposed rules for the UK Investment Firm Prudential Regime, aimed at simplifying the prudential requirements for solo-regulated firms that fall within MiFID and are subject...
FCA fines firms for unsuitable pensions advice
FCA has fined LJ Financial Planning Ltd £107,200 for recommending that 114 customers transfer their pensions to the value of around £6m into SIPPs over a period of nearly 3 years from March 2010. FCA found the firm...
FCA confirms mini-bond marketing ban
FCA has confirmed that it will permanently ban marketing of speculative illiquid securities, including mini-bonds, to retail investors, from 1 January 2021. The permanent rules will also include a ban on listed bonds...
PRA consults on designating firms within certain banking UK consolidation groups
The PRA has published a consultation paper setting out its proposed approach to designating entities within certain banking UK consolidation groups as responsible for ensuring that consolidated prudential requirements...
PRA publishes feedback on recovery planning consultation
The PRA has published a Policy Statement providing feedback to responses to the PRA’s consultation on simplified recovery planning, as well as the PRA’s final policy decision. The respondents were supportive...
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...
FCA updates on MAR and Brexit
The FCA has updated its website to explain what will happen to the EU Market Abuse Regulation (EU MAR) after 31 December 2020. At the end of the transition period, EU MAR will be onshored into UK law by virtue of the...
FCA publishes RDR and FAMR evaluation
FCA has published an evaluation of the impact of the RDR and FAMR. On the whole, it found a positive impact. It notes that the FAMR has: led to a small increase in the number of adults who receive financial advice, and...
FCA launches UK Benchmarks Register
In preparation for the end of the Brexit transition period, FCA has announced the launch of the new UK Benchmarks Register. The Register, which can be accessed from 11pm on 31 December 2020, will replace the ESMA...
FCA writes portfolio letters to SIPP operators
FCA’s latest portfolio supervision letter is to SIPP operators. In the letter, FCA notes that, when SIPPs were originally launched, they were designed for higher net worth individuals looking to manage their own...
FOS loses judicial review hearing
The Court has found against FOS in a judicial review hearing brought by a forex firm. TF Global Markets (UK) Ltd has suspended a number of accounts, including those of three individuals who subsequently complained to...
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...
EU statement on EU-Japan Joint Financial Regulatory Forum
The European Commission has published a statement on the second meeting of the EU-Japan Joint Financial Regulatory Forum which took place on 20 November. Topics of discussion at the meeting included the impact of Covid...
LCF report due to be published before Christmas
In a statement to Parliament, John Glen confirmed that Dame Elizabeth Gloster has delivered her final written report on her investigation into London and Capital Finance to FCA. He has asked FCA now to work with...
FCA fines FX options broker for market misconduct
FCA has fined TFS-ICAP Ltd £3.44m for communicating misleading information to clients. It found that over a 7 year period brokers at the firm had “printed” trades – which meant the told clients a trade...
FCA consults on use of FSB Benchmark powers
FCA is consulting on how it proposes to use its new powers under the FS Bill to ensure an orderly wind-down of LIBOR, following the announcement by ICE Benchmark Administrations that it plans to cease its euro...
ECON reports on proposed amendments to MiFID II
In July 2020, the European Commission published a proposal for a Directive to amend the MiFID II Directive (2014/65/EU) to assist the EU’s economic recovery from the Covid-19 pandemic. The European Parliament’s...
FSB publishes 2020 Resolution Report
The Financial Stability Board (FSB) has published its 2020 Resolution Report which highlights the need for resolution preparedness. It also looks at lessons learnt from the Covid-19 pandemic, which stressed the...
Regulators update on FS Bill reforms
Treasury, PRA and FCA have updated the industry on the planned timelines for the introduction of the UK Investment Firms Prudential Regime and implementation of remaining Basel 3 reforms. The targeted implementation...
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...
FCA confirms new rules
FCA has issued a Handbook Notice summarising rule changes finalised over recent months. Key among them are: the new section on COBS (22.6) to ban derivatives and ETNs that reference certain cryptoassets to be marketed...
FCA and PRA fine GSI for 1MDB risk management failures
FCA and PRA have fined Goldman Sachs International a total of £96.1m for risk management failures connected to its role in three fund raising transactions for 1Malaysia Development Berhad, a Malaysian state-owned...
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 publishes EU work programme 2021
The European Commission has announced its focus for 2021. As well as continuing to work on managing the effects of the pandemic, its priorities will include: a “Fit for 55” packages to reduce emissions by...
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...
BoE speech: financial markets and the fight against climate change
Andrew Hauser, BoE Executive Director for Markets, has spoken about the role capital markets, including asset managers, have to play in the fight against climate change. In his speech, Mr Hauser explored the challenges...
Lords seeks clarification on EU crowdfunding legislation
Lord Kinnoull, Chair of the European Union Committee, has written to John Glen MP in response to HM Treasury’s letter of 11 August which set out the Government’s views on the EU Crowdfunding Regulation. The...
FCA fines for short selling disclosure breach
FCA has issued its first fine for breach of the Short Selling Regulation. It fined Asia Research and Capital Management Limited, an asset management firm based in Hong Kong, nearly £875,000 for failing to notify FCA and...
FCA speaks on market abuse in the time of COVID-19
Julia Hoggett has spoken on the importance of regulators maintaining focus on ensuring markets work well for consumers and are orderly and clean, whatever the challenges. She spoke about how FCA aims to place the...
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 bans retail sales of crypto-derivatives
FCA has published final rules to ban the sale to retail customers of derivatives and ETNs that reference certain types of crypto-assets. The new rules define “unregulated transferable cryptoassets” as...
FCA extends 10% depreciation guidance
FCA is giving a further 6 month extension to its measures on 10% depreciation notifications. Its first set of measures expire on 30 September, and it is extending them such that it will not take action for breach of...
FCA writes to investment and insurance CEOs on client assets and Covid-19
FCA has written 2 Dear CEO letters to firms that hold client money or custody assets, whether in the context of investment or insurance business, to remind them of their obligations under CASS. The letters stress that...
FCA updates on Brexit preparations
FCA has urged firms to make sure they have considered how the end of the transition period will impact them and their customers. It has updated its webpage to include stressing that firms with any client money or...
EU to recognise UK CCPs from 1 January 2021
The European Securities and Markets Authority (ESMA) has announced that it will recognise the three central counterparties (CCPs) established in the UK as third country CCPs (TC-CCPs) from 1 January 2021. The decision...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
ESMA publishes draft third country RTS
ESMA has published draft RTS and ITS for third country investment firms under MiFID 2/MiFIR. It needed to make changes following the IFR and IFD, which requires information to go to ESMA even where the third-country...
ESMA issues report on MAR
The European Securities and Markets Authority (ESMA) has published its first in-depth review of the Market Abuse Regulation (MAR) since its implementation in 2016. It is expected that the report will feed into the...
PRA publishes proprietary trading review
PRA has published a report required by law that looks at the extent of proprietary trading by deposit takers and dual-authorised investment firms. The report looks at: the extent of trading; the risks trading poses to...
Jonny WilliamsFCA plans £100,000 penalty on individual for market abuse
FCA has published a decision notice imposing a £100,000 penalty on an individual for market abuse and banning him from performing any functions in relation to any regulated activity. It found that Corrado Abbattista...
FCA launches call for input on consumer investment market
FCA has published a Call for Input to help it look at improving consumer outcomes in the investment market. FCA is concerned that consumers often get sold unsuitable products with high fees and is looking at: what it...
BoE updates on LIBOR transition
The Bank of England has updated its website on the transition from LIBOR, and what it is doing to catalyse using SONIA as the primary interest rate benchmark in sterling markets. The Working Group on Sterling Risk-Free...
FMSB reviews trade execution challenges
The FICC Markets Standards Board (FMSB)’s latest Spotlight Review explores the challenges faced in measuring quality of trade execution and how this varies across market participants and segments. FMSB says that...
FCA censures individual for market abuse
FCA has publicly censured the former CEO of Worldspreads and banned him from any roles linked to regulated activity, as as result of market abuse. It originally fined Conor Foley around £650,000 but imposed a public...
FCA reminds firms of market abuse investigation protocol
In its latest edition of Market Watch, FCA focuses on how market participants should act when they receive information requests from FCA when it is investigating possible market abuse. It stresses that: if firms handle...
Complaints Commissioner upholds complaint on FCA cloned firm process
The Complaints Commissioner has ordered FCA to pay £200 compensation to an aggrieved investor who invested in a clone firm which was not at the time listed on the FCA Register. A scammer had cloned the details of a...
FCA looks at transaction reporting and Brexit
In the latest edition of Market Watch, FCA looks at how MiFID firms should be preparing for the end of the transition period. It: explains the temporary transitional power, noting why it is not appropriate to use it for...
London and Capital report delayed
Dame Elizabeth Gloster has explained to FCA that she will need until late November to complete and report on her investigation into FCA’s regulation of London and Capital Finance. FCA is happy to work with her...
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...
Glen outlines stance on EU crowdfunding legislation
John Glen has written to Sir William Cash and Lord Kinnoull explaining the Government’s views on the EU Crowdfunding Regulation. He notes that the Regulation takes effect after the end of the transition period...
FCA stresses client money protection priorities
FCA has written a Dear CEO letter to firms that provide non-discretionary investment services. It notes that clients may have rebalanced their portfolios to mitigate volativity during the pandemic, which has resulted...
Up next from FCA
FCA’s latest Policy Development Update heralds: consultation on financial crime reporting during Q3; PS on debt advice levy rates in Q4; CP on exit fees in investment platforms and comparable firms during 2021; PS...
FCA speaks on challenges of LIBOR transition
Edwin Schooling Matter, FCA’s director of markets and wholesale policy, has spoken at ISDA’s event on LIBOR transition. He stressed that the time to act is now, as the next 4-6 months are critical. ISDA is...
FCA consults on Remuneration Code
FCA is consulting on proposals to update its Dual-Regulated firms Remuneration Code and guidance as part of CRD V implementation. The consultation largely follows PRA’s and proposes: changes to SYSC 19D in respect...
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...
PRA consults on simplified recovery planning
PRA is consulting on a plan to reduce its expectations on some firms in relation to recovery planning. The BRRD gives regulators the discretion to do this for firms whose failure would not be expected to have a...
Government extends 3rd country benchmark transition
Treasury has published a policy paper explaining why it is extending the transitional period for third country benchmarks to 31 December 2025. The extension will allow UK supervised entities to carry on using these...
ESAs finish PRIIPs KID review
The ESAs have reported to the European Commission on the outcome of their review of the PRIIPs KID. A draft Final Report following public consultation was submitted to the boards of the 3 ESAs for approval, but...
EU Council adopts new rules for crowdfunding platforms
The Council of the European Union (“the Council“) has announced that it has adopted new rules to improve the way that crowdfunding platforms operate across the EU. The new framework is part of the capital...
Amelia GreenTreasury consults on CRDV, prudential regime and Brexit
Treasury is consulting on the UK’s approach to implementation of those parts of CRD V that fall to be implemented into national law by 28 December. The Government has long said that it will transpose all EU...
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...
ESMA issues second report on sanctions under MiFID 2
The European Securities and Markets Authority (“ESMA“) has published its second report on sanctions and measures imposed under MiFID 2, which provides an overview of the applicable legal framework and the...
Commission says no MIFIR equivalence by year end
The European Commission has published a Communication to the EP, Council, EESC and the Committee of the Regions on preparations for the end of the transition period. The Communication looks at: changes happening in any...
International bodies concerned about LIBOR transition
A report published today by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) has raised concerns about the apparent lack of commitment of financial markets to move away from...
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...
Commission consults on CMU roadmap
The European Commission is consulting on its roadmap toward capital markets union. The “roadmap” is a short, high-level document, setting out the reasons for and priorities of the initiative. Consultation...
FCA confirms open-access trading extension
FCA has confirmed that the agreed extension to the deadline for applying the open access rules of MiFIR to trading venues and CCPs that offer trading and clearing of exchange-traded derivatives will apply equally in the...
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...
FSB comments on benchmark reform and Covid-19
The Financial Stability Board has been monitoring closely the impact of Covid-19 on global benchmark transition. It recognises the challenges, but still thinks that both financial and non-financial sector firms across...
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...
FCA gets judgment against unregulated introducers
FCA has won a case in the High Court against Avacade Limited and Alexandra Associates (UK) Limited and their three directors. The companies provided a pension reports service and made misleading statements as a result...
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...
IOSCO consults on AI use
IOSCO is consulting on the use of AI and machine learning by market intermediaries and asset managers. It has produced guidance for its members to help them supervise its use. IOSCO notes the key potential benefits of...
FCA updates on Covid-19 delayed activities
FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...
Government encourages LIBOR transition amid legislative plans
Rishi Sunak has made a written statement to Parliament on the Government’s proposals for ensuring LIBOR transition. The statement referenced previous statements that underline the importance of firms migrating...
Chancellor updates on FS laws and Brexit
Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...
Treasury updates on Financial Services Bill prudential intentions
Treasury has provided some detail on the legislative approach it will take on prudential standards in the Financial Services Bill. The statement goes alongside the FCA discussion paper on the prudential regime for...
FCA looks to better prudential rules for investment firms
FCA has published a discussion paper on a bespoke prudential regime for investment firms. FCA has long wanted to introduce a better regime for firms, but has been constrained largely by MiFID. The EU is now introducing...
EP issues draft report on further development of the CMU
On 19 June, the European Parliament (“EP“) published a draft report on the further development of the Capital Markets Union (“CMU“), improving access to capital market finance, in particular by...
FCA consults on high-risk investment marketing
FCA is consulting on marketing of speculative illiquid securities including speculative mini-bonds. It wants to make its ban (which it introduced in January without consultation) on mass marketing of these products to...
ESMA updates work programme
ESMA has updated its 2020 work programme to include its work on its immediate reaction to the Covid-19 crisis and what may be deprioritised as a result. It has also published its 2019 annual report.
Randell speaks on supporting the recovery
Charles Randell has spoken to a virtual roundtable of bank chairs on how the financial services industry can work to support recovery from the Covid-19 pandemic. He noted the great efforts that banks and other market...
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