Emma RadmoreThe FCA has published a further series of portfolio supervision letters. They are addressed to:
- data reporting services providers;
- custody and fund services providers;
- contracts for differences providers;
- trading venues; and
- benchmark administrators.
The letters look at the roles of the providers and the services and the risks to markets if their standards fall. Key themes, similar to other letters, are operational resilience, cyber resilience, third party management, change management, and for some issues such as depository oversight, CASS compliance, the Consumer Duty, market abuse and capital and liquidity. It also highlights issues such as there being around 20% of firms in the CFD portfolio who are “halo” firms – and also that some distributor firms may be using their AR status as a halo.