Laura WilesThe FCA is inviting applicants for a bond consolidated tape provider. The UK bond consolidated tape will collate data such as price and volume of transactions, combining information on trades executed on trading venues...
Category - Investments
Michael Lewis
Emma RadmoreFCA discusses approach to non-bank leverage and importance of data
Sarah Pritchard of the FCA has spoken to the Investment Association Roundtable event. She looked at the FCA’s approach to non-bank leverage. She focussed on how targeted improvements to public and private...
CMA reaches settlement with banks over gilt information
The CMA has reached settlement with 5 banks in relation to exchanges of information by traders on buying and selling gilts on specific dates. Individual traders shared competitively sensitive information in one-to-one...
FCA pleased with firm conduct on ongoing advice
The FCA has published the results of a survey of 22 firms, in which it checked whether firms that are charging their clients for ongoing advice and relating services are meeting their regulatory obligations and had been...
FCA publishes skilled persons data for Q2 / Q3 2024
In the quarter ending September 2024, the FCA commissioned 14 skilled persons reports: 6 reports related to consumer investments, 2 to insurance, 2 to wholesale markets (buy-side) and 4 to wholesale markets (sell-side);...
FCA delays “polluter pays” decisions
The FCA is still considering the feedback to its consultation on requiring firms to set aside capital resources for potential redress liabilities. While it is continuing to carry out increased monitoring of firms and...
FCA delays decision on SDR extension
The FCA has confirmed that it will no longer imminently be publishing its feedback statement on the proposed extension of the SDR and investment labels regime to portfolio management. The FCA is aware that fund managers...
FCA reforms commodity derivatives framework
The FCA has published a policy statement on reforms to the regulatory framework for commodity derivatives. The 2023 consultation covered key pillars of the regime, including position limits and related exemptions...
FCA proposes changes to listing and public offer rules
The FCA has issued two consultation papers proposing changes to the listing and public offer rules. The first paper sets out changes intended to align disclosure requirements for low denomination bonds with those for...
Duncan ScottFCA publishes Handbook Notice on collective investment schemes sourcebook updates
The FCA has published a Handbook Notice describing changes to COLL as set out in the Collective Investment Schemes Sourcebook (Concentration Limits) Instrument 2025, which came into force 31 January 2025. Following a...
FCA fines for MiFIR transaction reporting failures
The FCA has imposed its first fine for failing to report transactions as required by MiFIR. Infinox Capital Limited failed to submit transaction reports for single stock CFD trades executed through one of its corporate...
PRA speaks on prime brokerage developments
Rebecca Jackson of the PRA spoke to UK Finance about recent dynamics in the prime brokerage sector, and the results of a recent PRA thematic review. Key points included: that the core of prime brokerage is financing...
FCA outlines wholesale broker supervision strategy
The FCA has published a Dear CEO letter to wholesale brokers, setting out its new supervision strategy for firms. In the last 2 years, the FCA has engaged with firms on issues including risk management, financial crime...
FCA highlights simplification as means of supporting growth
The FCA’s letter in response to the Prime Minister setting out how the FCA wants to collaborate with the Government to encourage growth highlights the work the FCA has already done in the wholesale markets to...
AIC writes to FCA about Saba investment trust action
The Association of Investment Companies has written to the FCA to express concerns about US activist investor Saba Capital Management’s requisition of general meetings at 7 investment trusts. The AIC is concerned...
ASA upholds complaint against investment training programme
The ASA has upheld a complaint against Zimran Ltd t/a Prosperi Academy. Prosperi Academy is an app offering financial investment training courses. The ad showed an individual’s bank account balance increasing in...
Designated Activities enforcement Regs take effect
The Regulations amending FSMA to give the FCA necessary supervision and enforcement powers in respect of the new Designated Activities have been made and take effect on 14 January. The new powers apply in respect of the...
Court refuses JR application on mis-advised SIPP investment
The High Court has refused an application for judicial review of the FSCS’s refusal to reconsider a compensation determination in respect of three investors who lost money after transferring funds from their...
FCA sets out updates to the National Storage Mechanism
Following a consultation, the FCA has set out its enhancements to the National Storage Mechanism (NSM). The changes will introduce more comprehensive metadata requirements to improve functionality, making it easier for...
FCA consults on CCI framework
The FCA is consulting on how it plans to build the new UK regulatory framework for Consumer Composite Investments, brought in to replace the EU PRIIPs concept. As we’ve previously reported, legislation creates a...
FCA charges former WealthTek partner
The FCA has brought criminal charges against John Dance, the principal partner at WealthTek LLP, in relation to 9 criminal offences, including multiple counts of fraud and money laundering. WealthTek, then known as...
FCA looks to appoint bond consolidated tape provider
The FCA is starting a tender process to appoint a bond consolidated tape provider. It will publish all tender documents by the end of January, and invite bidders to ask questions before it issues the final tender...
Treasury makes Singapore equivalence decision
The Markets in Financial Instruments (Equivalence) (Singapore) Regulations 2024 take effect on 31 December 2024 and designates a list of 18 Singaporean trading venues as equivalent to the UK in terms of regulatory...
FCA updates derivatives trading obligation
The FCA has updated its direction relating to the Derivatives Trading Obligation (DTO) with effect from the end of 2024. The DTO came from MiFID, and the FCA is now modifying the UK’s DTO from the transitional...
FCA consults on MiFID Org Reg transfer to Handbook
The FCA is consulting on how it plans to transfer the firm-facing requirements of the MiFID Org Reg into its Handbook. It doesn’t intend to change the policy behind the Regulation, but some of the provisions will...
PRIIPs disclosure change confirmed
The Regulations that take investment trusts outside the scope of the current PRIIPs disclosure requirement (current until the PRIIPs regime is repealed in favour of the new Consumer Composite Investment regime) have...
Tribunal disagrees with FCA on fine amount
The FCA had found Arian Financial LLP had breached Principles 2 and 3 in respect of failings in its financial crime prevention systems and controls in relation to business introduced by the now infamous “Solo...
Government makes Consumer Composite Investment Regulations
The Regulations to create the Consumer Composite Investments regime, and set the designated activities relating to them have been made effective from 22 November 2024 for the purposes of setting out the regime and...
FCA updates market cleanliness measures
The FCA has revised its methodology for its market cleanliness statistic, to make it more accurate. Going forwards it will be able to detect abnormal price movements that happen on the same day as an announcement, use a...
FCA reacts to Mansion House speech
The FCA has reacted to several announcements from the Mansion House speech. It has reiterated that it is committed to supporting growth and says it has fully embraced its secondary international competitiveness and...
Treasury and FCA set out next steps for MiFID
HM Treasury has set out its plans for changes to the assimilated MiFID regime, to make changes to the wholesale markets framework. Its immediate plans are: to ensure the FCA has the necessary tools to oversee off...
FCA updates on Advice Guidance Boundary review
Following the Mansion House speech, the FCA has updated on the next steps in its Advice Guidance Boundary Review. It is going to focus first on pensions, and will consult in December on high-level proposals for targeted...
FRC consults on Stewardship Code updates
The FRC is consulting on significant updates to the Stewardship Code, with a view to streamlining reporting requirements while ensuring a clearer focus on the purpose of Stewardship and delivering increased transparency...
Treasury publishes draft Designated Activities supervision regulations
The Treasury has published draft Regulations to give the FCA supervisory and enforcement powers over certain activities which are to become Designated Activities for the purposes of FSMA following the changes introduced...
Market Watch looks at MiFID transaction reporting
The latest edition of Market Watch focuses on FCA’s supervision of the UK MiFID transaction reporting requirements, including the findings from skilled persons reviews commissions to look into compliance. On the...
FCA makes market rules to support growth
A new set of transparency rules for bond and derivatives trades will take effect on 1 December 2025. The FCA says the rules will both provide more information to investors and also reduce costs for firms, and will also...
FCA portfolio letter for SIPP operators
The latest in the current series of FCA portfolio supervision letters is aimed at the CEOs of SIPP operators. The FCA has recently completed its 2024 SIPP data request and will be using the information from it in its...
FCA publishes SDR and investment labels disclosure examples
The FCA has published examples across a section of investment labels to demonstrate how firms might meet disclosure requirements under the Sustainability Disclosure Requirements (SDR) and investment labels regime, which...
FCA speaks on private market growth.. and motor finance
Nikhil Rathi, speaking at the Investment Association, spoke of the growth of private markets and the FCA’s support for initiatives that get companies the best options for financing. In an interesting segue, he...
FCA speaks on vulnerability in the wealth management sector
Graeme Reynolds, director of competition at the FCA, delivered a speech on competition and vulnerability at the Personal Investment Management & Financial Advice Association’s (PIMFA) Wealth Vulnerability...
FCA restricts ISA Manager business over platform failings
The FCA has placed restrictions on Business Agent Limited in respect of failings related to its “Nextcrowd” platform. As a result the form can no longer act as an ISA manager. The FCA’s concerns...
FCA updates regulatory initiatives grid
The FCA has published an interim update on its Regulatory Initiatives Grid. It had postponed the scheduled 8th edition because of the election and says that the replanning required as a result means that there...
Treasury publishes draft PRIIPs replacement regulations
The draft Consumer Composite Investments (Designated Activities) Regulations 2024 have been published. The Regulations will repeal all assimilated law relating to PRIIPs and create a UK regime of “consumer...
FCA speaks on supervisory strategy
Nick Hulme, head of the FCA’s advisers, wealth and pensions, consumer investments department, has spoken on the FCA’s tweaked supervisory focus. He said the FCA continues to focus on good client outcomes and...
Market Watch focuses on SYSC 6 and UBOs
The latest edition of Market Watch looks at how firms can ensure compliance with SYSC 6.1.1R when dealing for overseas clients who operate aggregated accounts that provide no visibility of the UBOs. Firms will often...
Treasury publishes draft PRIIPs disclosure amendment Regulations
Treasury has published a draft Statutory Instrument that will take investment trusts that are UK listed outside the scope of PRIIPs disclosure requirements. Once the Regulation is made, Treasury wants it to take effect...
FCA speaks on “predictable volatility”
Nikhil Rathi has spoken on the volatility of capital markets and on how one small “blip” can have a significant ripple effect. He noted how things that used only to happen rarely now happen more frequently...
FCA sets out financial adviser expectations
The FCA’s latest portfolio supervision letter to financial advisers and investment intermediaries sets out where it sees the most potential harms that the sector could generate and its expectations on firms...
FCA succeeds in BlueCrest redress scheme appeal
Following an Upper Tribunal decision in June 2023 which upheld an application by BlueCrest Capital Management (UK) LLP to summarily strike out a redress requirement imposed by the FCA for its purported breaches of...
FCA confirms forbearance in relation to investment trust disclosure requirements
Following the Treasury’s announcement that it would be excluding certain investment trusts from the PRIIPs Regulation and other EU-assimilated law, the FCA has confirmed it will be applying new regulatory...
Regulators publish joint statement on the end of LIBOR
The FCA, BoE and the Working Group on Sterling Risk-Free Reference Rates have issued a joint press release on the end of LIBOR. On 30 September 2024, the remaining synthetic LIBOR settings were published for the final...
FCA speaks on evolving rules
Sarah Pritchard has spoken of the need for the FCA to adapt its rules as regulation changes – with particular reference to adopting a less prescriptive and more outcomes-focussed approach in the light of the...
Treasury announces reforms to retail disclosure requirements
The Government and the FCA have announced plans to replace EU-inherited retail disclosure rules with a framework tailored to UK markets and firms. HMT previously consulted on replacing the PRIIPs Regulation with a new...
FCA reports on cash savings progress and price and value outcomes
The FCA has published its latest analysis of fair value in the cash savings markets. Key highlights are: average interest on easy access savings accounts rose from 1.66% last July to 2.11% in June 2024; while firms were...
FCA takes action for reckless pension transfer model
The FCA has published decisions against 3 individuals and fined and banned a fourth in relation to a pension transfer advice model that the FCA consider put guaranteed retirement benefits at risk. Its action relates to...
FCA reminds firms of LIBOR deadline
The FCA has reminded firms that the 1-,3- and 6-month synthetic USD LIBOR settings will cease permanently after their final publication on 30 September.
FCA seeks views on EMIR reporting
The FCA is asking for views on its guidance for UK Trade Repositories on guidance on the changes to the derivative reporting framework under EMIR. Most of the new requirements take effect from 30 September, and the new...
FCA releases latest skilled persons stats
In the quarter to end March 2024, the FCA commissioned 27 skilled persons reports. 10 related to retail investments, 7 to wholesale financial markets and 5 to retail banking and payments. 12 related to controls and risk...
Tribunal backs FCA on Saranac/Kalaris decision
The Upper Tribunal has made its decision on the reference to it by Saranac Partners Limited in respect of the FCA’s decision not to approve its application for Thomas Kalaris to be its CEO and an executive...
FCA fines auditor for failing to report suspected fraud
The FCA has fined PwC £15m for failing to report suspicions of fraud that arose during its 2016 audit into London Capital & Finance. As PwC had been carrying out the audit, it had been faced with aggression from a...
FCA consults on enhancing the National Storage Mechanism
Following the announcement earlier this year that it would be refreshing the National Storage Mechanism (NSM), the FCA is now consulting on proposals to change the requirements for submitting regulated information to...
Asset manager to pay €250m to investors in high risk investments
The FCA has announced that H2O AM LLP is to pay €250m to investors who have been unable to access their funds for 4 years after the firm failed to carry out proper due diligence on certain introduced investments...
FCA refuses application on fit and proper concerns
The FCA has published a decision notice setting out its intention to refuse to authorise an applicant firm Ancean Limited, whose sole director and proposed sole approved person would be an individual who was previously...
FCA publishes final rules for Dormant Assets Scheme
The FCA has published a policy statement setting out its final rules for the second stage of the Dormant Assets Scheme. The scheme provides for banks and building societies to pay dormant monies into an authorised...
Harry WellsFCA announces raft of measures for UK wholesale markets
The FCA has announced a variety of measures with the aim of strengthening the UK’s capital markets. 1. New public offers and admissions to trading regime A key aspect of the package includes proposals (CP24/12) to...
Bond administrator enters liquidation
The FCA has announced the liquidation of London Court Limited, a bond administrator and ISA manager. The firm had been restricted from doing any new business since August 2023 after the FCA determined that the firm had...
FCA bans individuals for mistreatment of customer funds
The FCA has taken action against 3 individuals who were involved in running SVS Securities Plc, a discretionary fund manager. SVS used a complex business model intended to maximise the flow of customer funds into high...
FCA keeping trading apps under review
The FCA has carried out an online experiment involving over 9,000 consumers, involving a trading platform app that the FCA created. It wanted to test the effect of different digital engagement practices on trading...
Court rejects application for JR review of FOS decision
The Court has dismissed an application made by Linear Investments Limited for judicial review of a FOS decision. The FOS had heard that a customer of Linear (Professor W) was an eligible complainant under its rules...
Tenet firms enter administration
The Tenet Group Limited is winding down its operations, which has now resulted in two of its hosting firms entering administration. The firms closed to new business at the end of March, and most of their advisers either...
FCA sustainability disclosure and labelling regime takes effect
The FCA’s new anti-greenwashing rules and guidance took effect on 31 May. Firms must make sure any claim about the sustainability of their products and services is clear, fair and not misleading. They should also...
Court decides fiduciary duty can be owed even where no negligence
A Court has dismissed a claimant’s claim for damages for negligent financial advice but has upheld a claim for breach of fiduciary duty in respect of commission paid to the adviser. The Claimant, Mr McHale, has...
FCA updates on plans for asset management sector
Ashley Alder, FCA Chair, has a delivered a speech on the FCA’s agenda for the UK asset management sector. Key highlights include that FCA: wants to ensure that feedback from all stakeholders, including from their...
BoE responds on requirements on FMIs consultation
BoE has provided feedback following responses received during its consultation on its proposed approach to statutory notice decisions for use of its requirements powers. BoE has been given new powers under FSMA 2023 to...
FCA and PRA fine £60m for failures in trading systems and controls
The FCA and the PRA have imposed fines totalling over £60m on Citigroup Global Markets Limited (CGML) for failures in its trading systems and controls between April 2018 and May 2022. The FCA, which fined CGML...
Treasury speech: reform of capital markets
Bim Afolami, Economic Secretary to the Treasury, has delivered a speech on reforms to reinforce the UK’s capital markets. The speech highlighted that the Government is committed to building on the strong...
Court of Appeal dismisses JR application over SIPP challenge
The Court of Appeal has dismissed an application from Options UK Personal Pensions LLP for judicial review of a FOS decision in respect of investments made into an execution only SIPP. The FOS had held that the firm...
FCA updates on implementing Consumer Duty for closed products
The FCA has written to firms in the following sectors on implementing the Consumer Duty for closed products and services by 31 July 2024: Asset management; Consumer finance; Consumer investments; Life insurance; Retail...
FCA charges 8 finfluencers with making unlawful promotions
The FCA has brought charges against 7 “finfluencers” and two other individuals in relation to an unauthorised FX trading scheme. It alleges that Emmanuel Nwanze and another used Instagram to provide advice...
Treasury updates CFTC equivalence determinations
The Treasury has updated its equivalence determination in respect of CFTC regulated contract markets and swap execution facilities with effect from 4 June.
FCA writes to Committee on investment trust disclosure
The FCA has written to the Financial Services Regulation Committee explaining its thoughts on the need for reforms to the disclosure regime. It explains why the FCA has taken the stance it has, including why it does not...
Market Watch focuses on surveillance
The latest edition of Market Watch looks at the effectiveness of surveillance arrangements, systems and controls. The FCA looks at the impact of failures when firms’ systems do not work as intended and the length...
FCA fines and bans individual for incorrect info on client cash
FCA has fined James Lewis, former CEO of Shard Capital Partners, £120,300 and has banned him for providing false information once to auditors and once to a client about the amounts of cash balances the firm held. The...
BoE looks at AI and financial stability
Jonathan Hall of the FPC has spoken on whether increasing use of AI models could have a negative impact on financial stability. He sees two key risks: that deep trading agents could lead to a brittle and highly...
JMLSG consults on wholesale market guidance update
The JMLSG is consulting on changes to chapter 18 in Part II of its guidance, for wholesale markets. The changes generally update references, and: clarify that as market abuse is a predicate offence, settlement of...
FCA publishes Q1 fin proms data
The FCA has published its financial promotions data for Q1 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 2,211...
Government responds further on progress of Edinburgh reforms
The Government has published a second formal response to its December 2023 report on the progress of the Edinburgh reforms. This response is more detailed than the Government’s initial response and includes an...
FCA updates complaints data
The FCA has published updated complaints data based on returns from then nearly 300 firms reporting at least 500 complaints within 6 months or 1000 within a year. Key findings from the 2023 H2 data include: Complaints...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
BoE outlines CCP stress test for 2024
BoE has set out the key elements of its 2024 supervisory stress test for UK central counterparties. The clearing services of all three UK authorised CCPs (ICE Clear Europe Ltd, LCH Ltd and LME Clear Ltd) will be in...
FCA publishes Link findings
The FCA has published its findings against Link Fund Solutions, explaining its conclusion that the firm failed to manager the liquidity of the Woodford Equity Income Fund from 31 July 2018 to 3 June 2019 and therefore...
FCA consults on new way to pay for research
The FCA is consulting on a range of ways in which asset managers might choose to pay for investment research. It says that, while firms are generally getting the research they want under the current rule format, the...
Market Watch focuses on instrument reference data
The latest edition of Market Watch looks at completeness and accuracy of instrument reference data. It looks at the most common rejection messages and the number of rejections, and suggests best practice for submitting...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
FCA makes minor rule changes
The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...
BoE consults on enforcement changes
The BoE, including the PRA, is consulting on proposed changes to its SOPs and procedures for enforcement, following the additional responsibilities FSMA 2023 has placed on it. The changes relate to enforcement policy...
HNWI/SCSI Fin Prom limits change again
We’ve written an article explaining the effects of the Budget reversal of the January increase on limits that high net worth and self-certified sophisticated investors need to meet to make use of financial...
FCA updates social media guidance
The FCA has published its updated guidance on social media advertising. The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...
Government sets out third phase of Smarter Regulatory Framework
Following its Smarter Regulatory Framework (SRF) delivery plan, Treasury has published a follow-up paper which sets out the progress made so far and the government’s approach to the next phase of the SRF programme...
FCA calls for improvement in Retirement Income Advice
The FCA has published a Thematic Review and written to CEOs of financial advisers, asking them to assess the compliance of their retirement income advice, and take steps to address any shortcomings they find. It...
FCA decides to fine and ban for sham trading
The FCA has published a Decision Notice setting out its decision to fine Nailesh Teraiya £5.95m and ban him, in its latest enforcement case involving “cum ex” payments. Mr Teraiya was formerly the sole...
FCA Practitioner Panel responds to PIFs capital deduction for redress proposals
The FCA’s Practitioner Panel has responded to the consultation on proposals to require personal investment firms (PIFs) to set aside capital for potential redress liabilities. The Panel generally supports the...
FCA fines and bans over pension transfer advice and oversight
It’s been a while since the last published notice, but FCA continues to take action against firms and individuals relating to pension transfer advice. It has fined Inspirational Financial Management (in...