The Treasury Committee has published correspondence with the FCA in relation the FCA’s investigation into the collapse of the LF Woodford Equity Income Fund. In its update letter, the FCA advises that all key...
Category - Investments
Lucy HadrillFCA 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...
Emma RadmoreFCA 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...
ESMA publishes guidelines on delayed disclosure under MAR
ESMA has published its final report into the review of the Market Abuse Regulation (MAR) guidelines on delayed disclosure. This follows its consultation on review of the MAR guidelines on delay in the disclosure of...
Emma BondInsurance Europe responds to ESMA call for evidence
Insurance Europe has published its response to ESMA’s call for evidence on aspects of retail investor protection. Key points in the response include: insurance-based investment products (IBIPs) account for c.90%...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
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...
ESMA publishes call for evidence on DLT pilot regime
ESMA has published a call for evidence on distributed ledger technology (DLT). This forms part of the Regulation on a pilot regime for market infrastructures based on DLT. It is seeking input from stakeholders on the...
EU reaches political agreement on DLT Regulation
The Council of the EU and European Parliament have reached a final compromise on a Regulation on a pilot regime for market infrastructures based on DLT. The regime: sets out the conditions for acquiring permission to...
ASA upholds complaints about promotion of unregulated cryptoassets
The Advertising Standards Authority (ASA) has upheld two separate complaints relating to the promotion of unregulated cryptoassets. The first related to a Facebook post and website for Arsenal Football Club PLC. ASA...
FCA fines BlueCrest Capital for conflicts of interest failings
The FCA has published a Decision Notice against BlueCrest Capital Management (UK) LLP (BlueCrest), setting out its decision to impose a £40,806,700 fine on the hedge fund. The FCA considers that BlueCrest failed to...
EESC publishes opinion on Commission’s Sustainable Finance Package
The European Economic and Social Committee (EESC) has published its opinion on the European Commission’s Sustainable Finance Package. The package consists of: the Communication from the Commission to the European...
FCA extends 10% depreciation notification waiver
FCA has extended the temporary measures it put in place in March 2020 that mean it will not take action against firms who breach the requirement to issue 10% depreciation notices to retail investors under COBS so long...
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...
UK-US Financial Regulatory Working group holds fifth meeting
The fifth meeting of the UK-US Financial Regulatory Working group was held on 15 December 2021 and focussed on the following 7 themes: international and bilateral cooperation; sustainable finance; crypto-assets and...
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...
FCA fines for conflicts and gift & entertainment breaches
FCA has fined GAM International Management Limited £9.1m and Timothy Hayward £230,037 for issues relating to conflicts of interest and gifts and hospitality. Both the firm and Mr Haywood agreed all issues and qualified...
FCA writes to Treasury Committee following Swift Review
The FCA recently published an independent “lessons learned” review (the Swift Review). The FCA has now written a letter to the Treasury Committee, noting that it accepts almost all of the Reviewer’s...
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...
Treasury consults on amending Fin Prom exemptions
20 years since the FPO was made, and more than 15 since it was amended to facilitate exemptions from the financial promotion restriction for high net worth and sophisticated individual investors, Treasury is consulting...
FCA publishes review of supervisory intervention on IRHPs
The FCA has published an independent “lessons learned” review (the Swift Review), which it commissioned John Swift QC to produce, into the supervisory intervention on interest rate hedging products. The...
FCA issues final LIBOR publications for end-2021
FCA has reminded firms of the remaining actions they need to take as the end of the year approaches and, with it, the cessation of calculation of most LIBOR rates. From 1 January 2022, 24 of the 35 LIBOR settings will...
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...
Treasury provides update on Wholesale Markets Review
John Glen MP delivered a speech to the UK Finance Annual Dinner in which he provided an update on the Wholesale Markets Review. Mr Glen noted that there has been a broad consensus on the vast majority of the issues...
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...
Investment Association updates principles of remuneration
The IA has published amendments to its principles of remuneration for 2022. The main changes are on the following topics: ESG – companies should use ESG metrics that are quantifiable, appropriately stretching and linked...
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...
Market Watch looks at web-based trading platforms
The latest edition of Market Watch focusses on web-based trading platforms and sets out the FCA’s concerns about gaps in users’ surveillance of web-based platform activity. Highlights include: Market abuse...
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 levies further fine for cum-ex trading controls
FCA has fined Sunrise Brokers LLP £600,000 for poor AML systems and controls in relation to cum-ex trading, dividend arbitrage and withholding tax reclaim schemes. It found the firm did not properly identify and...
Government sets out net zero transition plans
The government has set out its plans for the UK to be the world’s first net zero aligned financial centre and has called for other countries to follow suit. The government has confirmed it will be introducing...
Treasury and FCA publish LCF compensation rules
Treasury and FCA have published the Scheme rules and consequent FCA rules on compensation arrangements for bondholders with outstanding investment in LCF which has not already been compensated by the FSCS. The scheme...
ESMA makes statement on investment recommendations on social media
ESMA has made a statement on investment recommendations on social media. Following a rise in these types of promotion, and concerns that retail investors do not understand the risks involved in following these...
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;...
AFME publishes “Anti-Money Laundering Transaction Monitoring in the Markets sector”
The Association for Financial Markets in Europe (AFME) has published a paper entitled, “Anti-Money Laundering Transaction Monitoring in the Markets sector” in collaboration with Ernst & Young. Recognising the key...
FIN. TeamNAO 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...
Chancellor publishes green financing roadmap
The Chancellor has published ‘Greening Finance: A Roadmap to Sustainable Investing‘. The document lays out the government’s ambition to align the financial system with the UK’s net-zero...
EBA publishes final draft RTS on investment policy disclosure
The European Banking Authority (EBA) published today new regulatory technical standards (RTS) on disclosure of investment policy by investment firms. The final draft RTS provides for: specified information that...
Bank of England launches first public CCP supervisory stress test
The Bank of England (BoE) has today launched its first public supervisory stress test (SST) of UK central counterparties (CCPs) to take place over 2021-22 with the clearing services of all in-scope UK CCPs: ICE Clear...
FCA modifies list of derivatives subject to derivatives trading obligation
The Financial Conduct Authority (FCA) has modified the list of derivatives subject to the derivatives trading obligation (DTO) in line with Articles 28 and 32 of UK MiFIR in the newly released PS13/21 in response to the...
BoE looks at financial stability risks of crypto
Jon Cunliffe has spoken of the potential risks to financial stability of crypto assets such as bitcoin and stablecoins. Crypto assets have grown by 200% in 2021 alone. Mr Cunliffe feels that they have the potential to...
ESMA seeks stakeholder input on retail consumer protection
The European Securities and Markets Authority (ESMA) today publishes a call for evidence on a number of retail investor protection topics under MiFID II. ESMA is seeking information from stakeholders on three topics:...
PIMFA welcomes guidance on ways to structure relationships between advisers and discretionary investment managers
The Personal Investment Management and Financial Advice Association (PIMFA) welcomes the publication of an industry guide by threesixty services LLP, with input and collaboration from PIMFA and DFM Connect, a group of...
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...
IAIS reports on first quantitative study on climate change impacts on insurers’ investments
The International Association of Insurance Supervisors (IAIS) has published the 2021 special topic edition of its Global Insurance Market Report (GIMAR). As a first global quantitative study, the report “The...
ESMA seeks input on retail investor protection
ESMA has published a call for evidence on various retail investor protection topics under MiFID II, the results of which will feed into ESMA’s technical advice to assist the Commission in the development of its...
FCA portfolio letter to wealth management and stockbroking firms
FCA has published its portfolio supervision letter to the wealth management and stockbroking portfolio. The letter focuses on FCA’s plans for the Consumer Duty and what it would mean for firms. It also notes the...
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...
FIA releases principles for cross-border regulation
The Futures Industry Association (FIA) has released a policy paper outlining seven principles to guide the regulation of cross-border activities in the derivatives markets. The paper addresses the threat of market...
ESMA consults on changes to MiFID II best execution reporting
ESMA is consulting on proposals for improvements to the MiFID II framework on best execution reports. The proposals include technical changes to: the reporting obligations for execution venues: aimed at simplifying the...
ECA calls for more consistent action to redirect finance towards sustainable investment
The European Court of Auditors (ECA) has published a Special Report calling for the Commission to take more consistent action in the redirection of finance towards sustainable investment. In particular, the Report...
ICMA updates on the EU sustainability disclosure regime
In April 2020, the International Capital Market Association (ICMA) published a document summarising the various the new and amended EU legislation on significant sustainability and ESG related disclosure requirements...
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...
ESMA speaks on retail investment in capital markets
Natasha Casenave of ESMA has spoken on the investor protection safeguards that are needed to deal with the increasing retail participation in capital markets. She said ESMA welcomes both the increased investment and...
Complaints Commissioner rejects unregulated investments complaint
The Complaints Commissioner has published its decision to reject a complaint made about the FCA’s failure to regulate unregulated investments. The complainant, who suffered financial loss having invested in...
FCA speech: proposals for a new listing regime
Clare Cole, Director of Market Oversight at the FCA, has delivered a speech on the FCA’s proposals for a new listing regime. Highlights include: the UK Listing Review, chaired by Lord Hill, achieved unprecedented...
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 supervisory notice against Dolfin Financial
FCA has published a supervisory notice sent to Dolfin Financial (UK) Limited in March. The requirements in the notice have now largely been cancelled as Dolfin entered special administration. FCA has also redacted parts...
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 writes to investment-based crowdfunders on supervision
FCA has published its Dear CEO letter on its portfolio strategy for investment-based crowdfunders. It notes that if any firm that has received the letter is not currently active in the market it should apply to remove...
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...
Court of Appeal supports FCA on unauthorised business action
The Court of Appeal has supported FCA in upholding findings that Alexandra Associates (UK) Limited, trading as Avacade Future Solutions, and Craig and Lee Lummis carried out unauthorised activities both in arranging and...
ESMA publishes calls for advice on PRIIPs and wider retail issues
ESMA has published: a call for advice it has received on certain aspects of retail investor protection in which the Commission asks ESMA to advise on: addressing and enhancing investor engagement with disclosures;...
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...
Treasury consults on SMCR for Financial Market Infrastructures
HM Treasury is consulting on proposals to create an SMCR for financial market infrastructures (FMIs). The proposed regime would mirror the existing SMCR and would give the BoE new rule-making, supervisory and...
FCA consults on amendments to the PRIIPs Regulation
The FCA is consulting on proposed amendments to the PRIIPs Regulation. The proposed changes aim to address the lack of clarity on the PRIIPs scope and address concerns with performance scenarios, summary risk indicators...
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...
FCA consults on modifying derivatives list on LIBOR transition
FCA is consulting on modifications to the list of derivatives subject to the derivatives trading obligation in line with Articles 28 and 32 of UK MiFIR in the light of interest rate benchmark reform and BoE’s...
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...
G20 Finance Ministers and Central Bank Governors meeting
The G20 Finance Ministers and Central Bank Governors (FMCBGs) have had their third official meeting under the Italian G20 Presidency. Highlights include: The global outlook has improved, mainly thanks to the roll out of...
FCA consults on reforms to improve the effectiveness of UK primary markets
The FCA has launched a consultation on proposed reforms to improve the effectiveness of UK primary markets in combination with a discussion about how the FCA might continue to develop the listing regime to ensure the UK...
Hannah FrostPRA 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...
EBA publishes standards for supervision of investment firms
The EBA has published final draft regulatory technical standards (RTS) on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms. The draft RTS provide...
ESAs report on F&P, internal governance and remuneration
EBA and ESMA have reported on: assessment of suitability of members of the management body and key function holders under CRD V and MiFID 2. The guidelines focus on the revisions brought in by the IFR and their affect...
Appeal refused on FCA action against unauthorised firm
The application to appeal has been refused in the case of FCA v 24 Hr Trading Academy. In this case, the High Court had held that 24 Hr Trading Academy had beached the regulated activities and financial promotion...
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...
Treasury Committee calls for FCA culture shift
The Treasury Committee has published a unanimously agreed report on FCA’s regulation of London Capital and Finance, in which it expresses the view that FCA cannot justify expecting firms it regulates to comply...
EBA report: management and supervision of ESG risks for credit institutions and investment firms
The EBA has published its Report on Environmental, Social and Governance (ESG) risks management and supervision. The report provides institutions with common definitions of ESG risks and their transmission channels and...
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...
Treasury publishes outcome of IFPR consultation
HM Treasury has published the outcome of its consultation on the UK’s approach to the implementation of the Investment Firms Prudential Regime (IFPR). The consultation outlined how the government proposed to...
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...
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