CMA has announced an investigation into the supply and acquisition of investment consultancy and fiduciary management services following a referral by FCA. FCA has decided to reject the undertakings in lieu offered to...
Category - Funds
Emma RadmoreHFSB changes name
The Hedge Funds Standards Board has changed its name to the Standards Board for Alternative Investments, to reflect the evolution of the alternative investment industry.
FIN. TeamFCA Regulation round – up for August
This month’s edition of Regulation round-up discusses: the consultation to extend SM&CR to all financial services firms; the Threshold Conditions Team taking enforcement action and cancelling the...
eba publishes fintech discussion paper
The European Banking Authority has published a Discussion Paper on its approach to financial technology (FinTech). The EBA sets out in the Discussion Paper the results of the first EU-wide FinTech mapping exercise and...
FCA foresees the demise of LIBOR in favour of SONIA
Andrew Bailey’s speech today on the future of LIBOR discussed the recent developments that had been made and interestingly, the decision to move away from the benchmark and towards one that is based on factors...
FCA releases details of consultations on the extension of SM&CR to all firms
The long-awaited consultations on the extension of the SM&CR have been released: CP17/25 – Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms. Banks are...
ESMA publishes opinion on asset segregation and depositary delegation
On 20 July ESMA published its opinion on asset segregation and the application of depositary delegation rules to central securities depositaries (CSDs). In the opinion, ESMA outlines its view on: the optimal approach to...
FCA finds funds should consider external risks
FCA’s review of fund suspensions and pricing adjustments following the Brexit vote has indicated that property funds should plan better to take external events into account so they can deal with liquidity risks. ...
FCA publishes Investment Platforms Market Study ToR
FCA has published MS17/1.1 as part of its assessment into the potential competition issues outlined in the Asset Management Market Study interim report and in its 2016/17 Retail Investment Sector View. FCA was concerned...
FMLC looks at Brexit third country issues
The Financial Markets Law Committee has published its views on the legal uncertainties related to the future classification of the UK as a third country in respect of the EU. The purpose of the paper is not to make...
FSCS annual report and accounts 2016/17: compensation costs total £375m
FSCS has published its annual report and accounts and annual report and class statements 2016/17, which set out its vision and strategy. The publications detail that FSCS paid out for over 37,000 claims 2016/17 in the...
Brexit: European Union (Withdrawal) Bill presented to Parliament
The Government presented the European Union (Withdrawal) Bill to Parliament on 13 July for its first reading. The Bill seeks to repeal the European Communities Act 1972 on the day when the UK leaves the European Union...
ESMA updates funds FAQs
ESMA has updated its FAQs in relation to UCITS and the AIFMD. The additions relate to: on the AIFMD, reporting requirements for loans purchased on the secondary market, conversion of total value of AUM and currency of...
The conundrum of open-ended property funds
Property Funds can be either closed ended or open ended. In a closed ended fund (such as a Real Estate Investment Trust or “REIT”), the amount of equity invested is fixed and investors may gain liquidity by...
IOSCO consults on fund liquidity risk management
IOSCO is consulting on recommendations and good practices in liquidity risk management for funds, and has accompanied the consultation with examples of good and bad practices. The consultation builds on a report in 2013...
FCA publishes annual report
FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s...
Treasury publishes financial guidance responses
Treasury has published the responses it received to its consultation on creating a single financial guidance body. The new body has now been legislated for under the Financial Guidance and Claims Bill and will: be a non...
EBA launches consultation on implementation of EBA Guidelines on methods for calculating contributions to DGSs
Article 13(3) of the Deposit Guarantee Schemes Directive (DGSD) requires the EBA to issue guidelines on methods for calculating DGS contributions by 3 July 2015, to ensure that the DGSD is consistently implemented in...
WFE encouraged by Commission consultation on FinTech
The World Federation of Exchanges said it was encouraged by the Commission’s consultation on FinTech as it believed that it was important to get policy right in this area to avoid the rush to regulate. These...
FCA publishes final asset management market study report
FCA has published the final findings from its asset management market study. It has considered the responses it received following its interim report and is now proposing a package of remedies falling into three broad...
fca publishes asset management market study final report and consultation paper
FCA has published the final findings of its asset management market study. As part of this, FCA set out a package of remedies to address the concerns identified. Alongside the market study, FCA has published...
John Griffith – Jones leaving the FCA
John Griffith – Jones has confirmed that he will leave both the FCA and the PSR at the end of his term of office on 31 March 2018.
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes changes to: TC to update the list of appropriate qualifications; SUP to clarify how the requirement to have a client assets report applies to loan-based crowdfunding...
ESMA responds on Fintech
ESMA has responded to the Commission’s consultation on Fintech. It sees Fintech as a positive evolution so long as business models continue to aim to improve the customer experience and financial inclusion. It...
ECON publishes draft retail FS plan
The EP has published a draft report on the Action Plan for retail financial services. The report: says the EU retail financial services market is still underdeveloped and fragmented, but recognises that such a market...
ESMA sets out principles for regulating migrating UK firms
ESMA has published a set of principles that the regulators in the “EU27” should follow when assessing applications from UK institutions seeking an EU authorisation post-Brexit. Key principles include: that...
ESMA updates funds FAQs
ESMA has updated its FAQs on the AIFMD and the UCITS Directive. Both address the exemption for intra-group transactions for the purposes of EMIR. The AIFMD set also addresses notifications of AIFs domiciled in another...
ESMA speaks on Regtech
ESMA has spoken on how the financial services industry has adopted Regtech. Patrick Armstrong looked at the changes in how we work that have been subject to almost constant change in the past 10 years. Yet, he said...
FCA updates on PRIIPs
FCA has updated its website with examples of products it considers will, and will not, be PRIIPs, and explaining the duties of manufacturers, distributors and advisers in relation to them.
Up next from FCA
FCA’s latest Policy Development Newsletter promises only a policy statement on enhancing COB rules for firms providing CFDs to retail clients following before the end of June. Many other papers are due later in...
FCA makes PRIIPs disclosure rules
FCA has made the rules that will change disclosure requirements on application of the PRIIPs Regulation, which should be from 1 January 2018. FCA has provided as much clarity and certainty as it can, to help firms...
FCA publishes first new-form complaints data
FCA has published the first set of complaints data (covering the second half of 2016) that firms have reported since last year’s rule changes that give firms 3 days to address a complaint to a consumer’s...
FCA publishes Mission Statement and Business Plan
FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA...
FCA looks at consumer behaviour and advertising
FCA has published an occasional paper that looks at the behaviour of consumers and the consequences it has on their reaction to financial promotions. The paper considers: how consumers will look for and find promotions...
FSCS confirms £363m levy for 2017/18
FSCS has announced its levy for 2017/18. The £363m is less than forecast in the FSCS’ 2017/18 Plan and Budget in January, but more than the 2016/17 levy. The 2017/18 levy includes: no change to the £100m levy on...
FCA speaks on the next phase of Project Innovate
On 10 April 2017, Christopher Woolard, the FCA’s Executive Director of Strategy and Competition delivered a speech at the Innovate Finance Global Summit in London. The speech considers the work of the FCA’s...
FCA publishes discussion paper on distributed ledger technology
The FCA has published a discussion paper on distributed ledger technology (DLT). The discussion paper describes DLT and acknowledges blockchain as a type of DLT. The FCA invites a discussion on two sets of issues: What...
ESMA reports on fund notifications
ESMA has published a report on notification frameworks and home-host responsibilities under the UCITS and AIFMD regimes. It carried out a study looking at the cross-border management and marketing activities of UCITS...
ESMA updates funds FAQs
ESMA has updated its FAQs on AIFMD and UCITS. The additions focus on: clarifying that the AIFMD marketing passport under Article 32 AIFMD can be used only for marketing to professional investors as defined in AIFMD and...
Private Fund Limited Partnerships introduced
The Legislative Reform (Private Fund Limited Partnerships) Order 2017 comes into force on 6 April and amends the Limited Partnerships Act to introduce the “private fund limited partnership”. Treasury has...
FCA makes new rules
FCA made several changes to its rulebook at its Board Meeting on 30 March. Key changes include: changes to fees relating to the FOS and periodic fees for exchanges and benchmark administrators; changes to the FSCS...
Investment Association consults on disclosure
The Investment Association is consulting on an industry code for standardising disclosure for charges and transaction costs. The Code is designed to help trustees and governance committees of pension funds to access and...
NUMBER OF CONSUMER COMPLAINTS MADE TO REGULATORS RISES – BONDS AND OTHER DEBT SECURITIES NOW MOST COMPLAINED ABOUT
ESMA’s recent report on trends, risks and vulnerabilities (TRV) reveals that the total number of complaints reported across the EU was 7,026 in 1H16 compared to 5,152 in 2H15. The three most common causes among...
Treasury speaks on Fintech
Simon Kirby, Economic Secretary to the Treasury, spoke at the LSE Global Fintech Investor Forum where he emphasised UK dominance in Fintech innovation. Mr Kirby gave three examples of what others envy in the British...
UK and Japan to co-operate on innovator firms
In the latest co-operation agreement between UK and AsiaPac regulators, FCA has exchanged letters of co-operation with the Japanese Financial Services Agency, under which the regulators will provide a...
Spring budget recommendations for regulators
Philip Hammond’s Spring Budget has not sprung any surprises on financial regulation. The Chancellor is required to write to FCA and PRA (to be operated by the Prudential Regulation Committee) each year with...
IA updates authorised funds guidance
The Investment Association (IA) has published an updated version of its guidance for members on authorised funds. This is a document designed for use by investors who are considering investment in a UK authorised fund...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation, quarterly consultation no.16 proposes changes to: DEPP and EG reflecting the FCA’s powers following the Bank Recovery and Resolution Order 2016: these would set out the...
FCA to consult on SMR extension
FCA is to consult on the extension of the SMR to all authorised firms during the second quarter of 2017.
FCA invites views on website
If you, like us, have views on FCA’s recently revamped website, you have a chance to let FCA know. It has invited views, in an online survey.
FCA looks at illiquid asset risks
FCA has published a discussion paper looking at the issues that arise when open-ended funds invest in illiquid assets, such as real estate, infrastructure and unlisted securities. It seeks views generally, but also...
Government publishes Brexit White Paper
The Government has published its White Paper on building a new relationship with the EU after Brexit. The paper looks at the basis on which the Government wants to address the 12 principles Theresa May set out on 17...
FCA updates on skilled persons reviews
FCA has published the figures showing the number of skilled persons reviews it initiated in Q3 2016. Of the 15 reviews, 5 concerned asset management and 5 concerned insurers/
FCA publishes Regulation Round-up
FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim...
Emma RadmoreTreasury proposes limited partnership changes
Treasury has published a draft legislative reform order to amend the Limited Partnerships Act 1907 in respect of private investment funds, such as venture capital and private equity funds. The proposals include the...
May confirms Brexit Plan
Industry has reacted to Theresa May’s speech of 17 January, when she confirmed Britain would leave the single market. In her speech, the Prime Minister reiterated that it is for the Government alone to invoke...
FSCS publishes plan and budget
FSCS has published its plan and budget for 2017/18. FSCS estimates that firms are likely to have to pay a total levy bill of £378 million to cover its costs. Points of interest include that FSCS: intends to raise...
PRA and FCA consult on FSCS levy limit
FCA and PRA have issued a joint consultation paper on the management expenses levy limit (MELL) for the FSCS for 2017/18. The MELL provides the FSCS with adequate resources to process compensation claims resulting from...
Brexit Committee calls for Parliamentary vote on Brexit deal
The first report of the committee on exiting the EU calls for the Government to publish its Brexit plan by mid-February, and says that plan should set out the Government’s position on membership of the single...
House of Commons looks at legislating for Brexit
The House of Commons Library has published a report looking at how many EU laws are directly applicable in the UK (around 5,000), and will therefore cease to apply in the UK once the European Communities Act 1972 is...
Scotland’s Place in Europe
On 20 December 2016, the Scottish Government published what is would like to see happen after Brexit in its discussion paper on “Scotland’s Place in Europe”. The paper sets out the importance of continued European...
FCA’s Future Mission: key themes from feedback
FCA has published initial feedback from the consultation process into its proposed mission statement. Key themes include: a desire for a clearer rationale for FCA decisions, and what FCA chooses to do and not to do;...
Parliament urges FS transition after Brexit
The EU Financial Affairs Sub-Committee has published its report on Brexit and financial services. The report says it is critical to agree a transitional period for financial services to avoid a “cliff edge”...
FOS consults on plan and budget
FOS is consulting on its plan and budget for the year ahead. It expects record numbers of PPI complaints, with a steady level of complaints in the banking, insurance and investment sectors. It plans to keep the case...
FCA consults on FSCS changes
FCA is consulting on changes to FSCS rules and funding. It is considering introducing mandatory terms to make PII more effective for firms that FCA requires to hold it, and also exploring introducing new levy categories...
Article: FinTech firms navigate regulatory uncertainty
Current laws and regulations weren’t designed with FinTech or InsurTech in mind, so startups must – on top of their business proposition – implement appropriate compliance procedures and grapple with legal uncertainties...
LSB calls for data on digital
LSB is calling for evidence as part of its Standards Development project to look at firms’ digital capabilities. It asks: What are the main challenges faced when developing products and services for digital...
FCA announces HK cooperation
FCA has signed a MoU with the Hong Kong Monetary Authority to enable the authorities to collaborate on a number of initiatives such as referrals of innovative firms, joint innovation projects, information exchange and...
FCA consults on regulatory fees and levies
FCA is consulting on policy proposals for regulatory fees and levies in 2017/18. The main areas in which it proposes to increase its fees are to cover its costs of tackling illegal money laundering and of implementing...
EP votes on PRIIPs delay
The European Parliament has voted to delay application of the PRIIPs Regulation to 1 January 2018, but the EU process must work fast to ensure the official measures are in place before the original implementation date.
FCA publishes interim asset management market study
The FCA has today published interim report MS15.2.2 in connection with their Asset Management Market Study. The FCA’s chief objective for the market study was to ensure that the market works well and that...
FinTech bridge to China agreed
Announced as part of the 8th annual UK-China Economic and Financial Dialogue at Lancaster House in London this month, the FCA has signed a Co-operation Agreement with the People’s Bank of China in a bid to share...
Government launches FinTech one stop shop
Treasury has announced the launch of the Department for International Trade’s new FinTech “one stop shop”The service is part of the FinTech bridge program the UK has in place with Singapore, Korea and...
FCA summarises financial services under WTO
Andrew Bailey has written to the Treasury Committee outlining what the regulatory landscape for financial services would be if the UK were a “third country” in respect of the remaining EU27, with access...
ESMA publishes fund remuneration guidelines
ESMA has published its guidelines on remuneration practices under the AIFMD and for UCITS. The guidelines are new for UCITS management companies, and amended for AIFMs to address how to apply the rules in a group...
ESMA updates funds FAQs
In early October, ESMA updated its FAQs on the AIFMD in respect of the impact of the SFTR on AIFM reporting, and its FAQs on UCITS in respect of this and other questions including on regulated markets and reinvestment...
Removal of ineffective disclosure requirements from FCA Handbook
The FCA’s policy statement PS16/23 follows its consultation paper CP15/32 which contained its proposals to remove certain disclosure requirements from the Handbook. The policy statement confirms the removal of...
FCA publishes passporting figures
In response to the Treasury’s Committee’s investigation into the potential effects of Brexit, FCA has revealed details of the number of single market passports used by UK firms to passport into other EEA...
LSB reports on outsourcing
LSB has published a report on how 7 members and key third parties control outsourcing of business covered by the Lending Code. It concludes the sample showed good controls. We think the report has some useful checklists...