FCA has announced the start of civil proceedings against Avacade Limited, which traded as Avacade Investment Options, and Alexandra Associates (U.K.) Limited, trading as Avacade Future Solutions, and against Craig...
Category - Investments
Emma RadmoreESMA publishes MiFID compliance function peer review
ESMA has published the results of its peer review on the guidelines on certain aspects of the compliance function under MiFID 1. The review covered a 2 year period and assessed the approaches of 31 NCAs. It included...
Financial Stability Report, November 2017
The Bank of England (BoE) has published its financial stability report, issue number 42. The report sets out the Financial Policy Committee’s (FPC), a sub-committee of the BoE’s Court of Directors, views of...
FIN. TeamIAIS extends the deadline for comments on various insurance core principles
The International Association of Insurance Supervisors has extended the deadline for submitting comments on various insurance core principles (ICPs) and the ComFrame material integrated with ICPs to: 15 January 2018 in...
FCA publishes a statement on LIBOR panels
The FCA has confirmed that all 20 of the panel banks for LIBOR (the London Interbank Rate) have agreed to support the LIBOR benchmark, ensuring the sustainability of the rate until 2021. The confirmation follows Andrew...
Initial coin offerings: regulation and the risks
We’ve written a briefing on recent regulatory warnings about ICOs, and how they may fall within the UK’s regulatory perimeter.
Autumn Budget 2017: Key points for the financial services sector
Philip Hammond, Chancellor of the Exchequer, has delivered the Autumn Budget 2017. Key points for the financial services sector include: Asset management – the Government will publish a new long-term strategy to...
ESAs update PRIIPs FAQs
The ESAs have updated the FAQs on the PRIIPs KID to include a number of new questions, including guidance on: confirming that the categorisation of a retail investor should follow the MiFID 2 definition and not take...
ABI publishes guide to help firms identify and support vulnerable customers in the long term savings market
ABI has published a guide to help firms operating in the long term savings market better understand, identify and support customers who may be vulnerable, to ensure all customers are supported through the whole customer...
ESMA publishes MiFID II Q&A clarifying trading obligation for shares
ESMA has updated its MiFID II Q&As to clarify the application of the trading obligation for shares to trade certain instruments on-venue. ESMA confirms that all EU investment firms that are part of a chain of...
Emma RadmoreFCA warns consumers on risks of cryptocurrency CFDs
Following ESMA’s recent warnings to consumers and firms on the dangers of participation in initial coin offerings (ICOs), FCA has continued the regulatory focus on cryptocurrencies by issuing a consumer warning...
FCA consults on fees
FCA has published its annual consultation paper on regulatory fees and levies. Key proposals include: the proposed tariff data FCA will use to calculate insurers’ FCA periodic fees and the FOS levies, building on...
ESMA warns investors and firms on dangers of ICOs
ESMA has become the latest body to denounce initial coin offerings (ICOs), issuing statements directed at investors and firms highlighting the distinct risks involved. Echoing FCA’s previous warnings , ESMA has...
Capita faces public censure and £66m pay-out
FCA has issued a final notice against Capita Financial Managers Limited (CFM), publicly censuring the firm and ordering it to pay up to £66m in compensation to investors that suffered as a result of CFM’s...
ESMA updates MiFID 2 FAQs
ESMA has updated its set of FAQs on MiFID 2 investor protection. New questions cover: post sale reporting – to confirm that the duty to report on depreciation of portfolios applies to professional clients, and not...
FCA publishes MiFID 2 guide and updates IFPRU
At FCA’s latest board meeting, it made a new guide, the MiFID 2 Guide (to be known as M2G). The Guide takes the form of regulatory guidance under FSMA. FCA had consulted on the guide, which comprises two sections...
Financial Exclusion: UK government publishes response to Lords Select Committee final report
Following the appointment in 2016 by the House of Lords of a Select Committee to investigate financial exclusion and access to mainstream financial services, the Committee published its final report, ‘Tackling...
CMA investigation in the investment consultancy services market
Following the referral of the investment consultancy services market by the FCA to the CMA earlier this year, the CMA is now entering the phase of further information gathering and has updated its investigations page...
Treasury Committee inquiry into household finances
On 8 November, the Treasury Committee announced the launch of a new inquiry that will examine problematic indebtedness, inter-generational issues, lifetime financial planning and the effectiveness of the market in...
Insurance broker loses authorisation over non-compliance with FOS award
The Upper Tribunal (Tax and Chancery Chamber) has upheld FCA’s decision to cancel the permission of Larksway Investments (an insurance broker), following non-compliance with a FOS award. FOS had upheld a complaint...
FCA publishes latest Market Watch
FCA’s latest Market Watch newsletter highlights: the fast approach of the deadline for ensuring all entities that need an LEI have one; ESMA’s reference data files that are available to download; the...
Up next from FCA
FCA’s latest Policy Development Update promises, before the end of the year: policy proposals for regulatory fees and levies policy statement on the second consultation on FAMR implementation policy statement on...
FCA reminds principals of AR risks
FCA has issued a further warning to firms that act as principal to appointed representatives or IARs. The warning follows an alert it published last year because of concerns over introducers having an inappropriate...
FCA speaks on robo advice
Bob Ferguson has spoken on FCA’s take on robo advice. FCA supports automated advice, as it sees its use to consumers who are “unserved” or “underserved” by traditional models. FCA is keen...
FCA consults on market conduct codes
FCA has published a consultation paper setting out its approach to supervising and enforcing the SMCR, and a wider discussion on extending Principle 5 (standards of market conduct) to the unregulated activities of...
Interest Rate rises for the first time in 10 years
For the first time in more than 10 years the Bank of England (BoE) has raised interest rates. At its meeting on 1 November, the BoE’s Monetary Policy Committee (MPC) voted by a majority of 7-2 to increase the...
FCA bans firm for failure to comply with FOS award
FCA has cancelled the permission of Foreman Financial Services Limited for failure to remain fit and proper and specifically for breach of DISP rules and Principles 6 and 11. The firm had advised a customer to transfer...
FCA consults on FSCS funding
Following its December 2016 consultation for views on how FSCS funding could be reformed, FCA has published a further consultation paper seeking to ensure FSCS continues to provide the right protections, works...
Prudential requirements for credit institutions and investment firms
The European Commission (Commission) has announced that it will vote on a proposal to amend the existing Capital Requirements Regulation (CRR) during the October II plenary session. The Commission said that the new...
ESMA publishes MiFID II consultation responses
The European Security and Markets Authority (ESMA) has published the responses received to the Consultation on Guidelines on certain aspects of the MiFID II suitability requirements. The draft Guidelines are intended...
FCA’s first Financial Lives Survey: 50% of UK adults potentially vulnerable
After collecting responses from over 13,000 UK consumers, FCA has revealed the results of its largest tracking survey of consumer behaviour and use of retail financial products and services. Aiming to tell the financial...
Commission asks ESAs for retail product evaluation
The Commission has published its formal request to the ESAs to report to it on the cost and past performance of the main categories of retail investment, insurance and pension products. It notes the reporting should be...
ESMA launches financial instrument database
ESMA has announced the launch of the second phase of its Financial Instrument Reference Database (FIRDS). It provides access to reference data that will eventually allow market participants to identify instruments...
ESMA speaks on financial markets
Steven Maijoor has spoken on the state of European financial markets. He spoke not only about Brexit, focussing on the need for a strong supervisory culture, but also on the importance of building the CMU and improving...
FCA speaks on the ageing population
Linda Woodall has spoken at an event to launch FCA’s Occasional Paper on the ageing population. FCA has for some years been aware that the financial services needs of older consumers are generally not being met...
FCA launches Asset Management Authorisation Hub
As promised, in an attempt to aid new entrants to the market and allow those entrants to better understand FCA as an organisation, FCA has launched its asset management authorisation hub. The hub provides information on...
Bond Dickinson financial services team ranked in Legal 500
The Bond Dickinson financial services team is delighted to have achieved a Legal 500 ranking. The new directory described the team as providing ‘responsive, practical, commercial and cost-effective’ advice to a wide...
ESMA issues post-trading FAQs
ESMA has published a set of Q&As on post-trading issues under MiFID 2 and MiFIR. There is currently only one question, on rules for straight-through processing.
ESMA highlights Brexit and MiFID 2 issues
Steven Maijoor spoke to ECON as part of the annual hearing of the chairs of the ESAs. He focussed on 3 main priorities for ESMA: MiFID 2 implementation and ESMA’s efforts to ensure regulatory convergence. He...
ESMA highlights importance of LEI
ESMA has published a briefing highlighting the importance of the LEI in an attempt to ensure market participants have done what they need to to comply with the LEI requirements under MiFID 2 by 3 January 2018. Its EMIR...
FSB’s workplan for 2017/2018
On 6 October 2017, the Financial Stability Board (FSB) published its workplan, setting out the following areas of work for the remainder of 2017 and 2018: evaluating the effects of reform – the plenary agreed that...
ESMA publishes 2018 work plan
ESMA’s 2018 work plan continues its focus on supervisory convergence and risk assessment. Unsurprisingly, it will place particular emphasis on consistent application of MiFID 2 and MiFIR by firms and regulators...
Up next from FCA
FCA’s latest Policy Developments Update lists several key publications due before the end of the year: policy proposals for next year’s fees and levies policy statement on FSCS funding policy statement on...
ESMA updates MiFID 2 FAQs
ESMA has updated the MiFID 2 FAQs in respect of: investor protection and intermediaries. It has added 12 new questions, focusing on client categorisation, post-sale reporting, recording of calls and communications, best...
FCA updates on defined benefits concerns
FCA has updated on its work looking at how firms are advising customers on defined benefit pension transfers. It had noted the risks that many firms refer their customers to specialist transfer firms. FCA is concerned...
ESMA finalises MiFID 2 derivatives trading obligation
ESMA has published its final draft RTS implementing the trading obligation under MiFIR. The standards, part of the move to make OTC trading in liquid derivatives take place on organised venues, covers interest rate...
FCA speaks on asset management regulation
Meghan Butler has spoken on how FCA is clarifying its supervisory approach to asset managers. She looked at FCA’s mission and its recognition of the importance of the asset management industry. She spoke of the...
FCA publishes streamlined advice guidance
FCA has published feedback on its consultation on guidance on streamlined advice and the fact find process. The guidance stems from two of the FAMR recommendations – and includes materials from existing guidance...
ESMA and NCAs agree waiver and position limit plans
ESMA and the national regulators in EU member states have updated their work plan for the opinions MiFID 2 requires on pre-trade transparency waivers and position limits. Around 700 of the former and 110 of the latter...
FCA publishes IDD papers
FCA has published its policy statement on its first consultation on IDD implementation, including near final rules, and has also published its third consultation with further proposals. The IDD must be implemented by 23...
FCA looks at ageing population
FCA has published an Occasional Paper looking at the ageing population and financial services. FCA’s research has found there is a risk that the financial services needs of older people are not being fully met...
EU plans CMU reforms
The Commission has proposed a package of reforms to further develop the CMU. The package comprises: EU-wide supervisory priorities set by the ESAs, which will also take a greater role in supervising the work of national...
Lords publishes Brexit FS evidence
The House of Lords Select Committee on the EU has published the uncorrected oral evidence of its heading on financial services supervision after Brexit. The hearing looked at the differences between international...
FCA warns over MiFID 2 deadlines
FCA is pleased that it has received and determined several applications under MiFID 2 already. However, it is also concerned that it has notified many applicants that their applications are incomplete, and that there...
FCA responds on leaked RBS report
FCA has responded to Nicky Morgan’s letter about the leaking of a s166 report on RBS’ treatment of customers in its global restructuring group. Andrew Bailey has reiterated that FCA does not think it is in...
CMA starts investment consultants market investigation
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...
ESMA updates MiFID 2 FAQs
ESMA has updated its FAQs on MiFID 2 and MiFIR market structures. The updates relate to access to CCPs and trading venues and address timings of notifications and applications for exemptions by trading venues. ...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made rules amending: TC to update the qualification table COBS and MCOB in respect of the smarter communications initiative, in particular to address the risks of over...
FCA warns on risks of ‘ICOs’
The FCA has today made a statement on Initial Coin Offerings or ‘ICOs’. The FCA has said that ICOs, which can vary widely in design, are ‘very high-risk, speculative investments.’ They went...
ESMA updates MAR FAQs
ESMA has updated its FAQs on MAR. The additions clarify: the scope of firms subject to the requirement to detect and support suspicious orders and transactions the scope of financial instruments subject to the market...
AFME confirms MiFID 2 share trading obligation views
AFME has published a note setting out its views as to why the share trading obligation under MiFID 2 applies to a MiFID investment firm only when it is the final entity in the chain of execution. It says a firm that...
AFME calls for Brexit transition clarity
AFME has called for early clarity on the Brexit transition. It says that while it is critical that transition arrangements are agreed soon, it agrees with the European Commission that they must be clearly defined...
Hong Kong Securities and Futures Commission makes statement on initial coin offerings
Much like the recent investigative report from the SEC in the USA in relation to the DAO token issuance, in which it was determined that a token sale amounted to the issuance of securities, this statement from the...
FCA consults on miscellaneous changes
FCA’s latest Quarterly Consultation Paper covers: amendments to FEES in respect of fees when firms apply for a VOP for provision of payment initiation and account services. FCA needs to charge fees as it has...
Up next from FCA
FCA’s latest Policy Development Update promises several publications over the coming quarter: during September, papers will include finalised guidance on FAMR implementation and a consultation on insurers’...
Commission clarifies Systematic Internaliser rules
The Commission is urgently making an amendment to clarify the scope of the MiFID 2 systematic internaliser category. It has noted certain technological developments which risk undermining what should be a clear...
When is an AR an agent?
A recent case looked at the extent to which there is an agency relationship between an AR and its principal. In the case, an AR entered into a client agreement with the claimant under which it arranged an investment in...
Commission consults on post-trade services and the CMU
In 2001, the European Commission identified certain barriers relating to post-trade services, and although major changes have taken place in the capital markets such as EMIR, CSDR and SFTR), no review had been...
Treasury responds on pension scams
Treasury has confirmed its plans to ban cold calling, emails and texts in respect of private pensions as part of its measures to address pension scams. It will also tighten rules to ensure that only active companies...
ESAs publish further Q&As on the Key Information Document for PRIIPs
Further guidance on the Key Information Document (KID) under PRIIPs was published by ESAs today in the form of questions and answers (Q&A). The Q&A includes additional questions and answers to those published on...
FCA 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...
Minor amendment to PRIIPS RTS published in the Official Journal
Background A corrigendum to Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment...
Treasury Committee and PRA exchange Brexit letters
Nicky Morgan, new Chair of the Treasury Committee, and Sam Woods of PRA have exchanged letters on Brexit planning. The PRA response explained PRA’s work in assessing the scenarios that might have the biggest...
Tribunal upholds IFA ban
The Upper Tribunal has upheld FCA’s decision to ban a former CEO of an adviser network. FCA has banned Charles Palmer and fined him over £86,000 for failing to act with due skill, care and diligence. The network...
FCA updates guidance to firms on applications and notifications under MiFID II
The FCA has updated its user guide to provide the following notifications: Ancillary activity exemptions Under MiFID II, firms who trade in commodity derivatives may be able to make use of an exemption from...
PRA consults on fees and levies for insurers and designated investment firms
PRA has published a consultation paper on model transaction fees, fees and FSCS levies for insurers and fees for designated investment firms. The consultation paper is relevant to insurers and designated investment...
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...
Up next from FCA
FCA’s latest policy development update promises several papers before the end of September: consultation on market infrastructure provider fee rates consultation on insurers’ tariff data finalised guidance...
FCA consults on CASS change for unbreakable deposits
FCA is consulting on a change to CASS to help firms that are having difficulty placing deposits with banks because of a combination of a current CASS rule that prevents firms placing client money in bank accounts with...
FCA consults on FAMR: implementation Part II and insistent clients
The FCA has today published its consultation paper (CP17/28) on implementing two of the recommendations made in the final report of the Financial Advice Market Review (FAMR), which was published in March 2016. FAMR was...
MiFID 2 Article 3 firms
We wrote an article for Financial Adviser on the impact of MiFID 2 on article 3 firms.
ESAs advise the Commission on PRIIPs with environmental or social objectives
The European Supervisory Authorities (ESAs) have submitted their technical advice to the European Commission (the Commission) to set minimum requirements, which manufacturers of PRIIPs with environmental or social (EOS...
PRA releases consultation on the minimum requirement for own funds and eligible liabilities (MREL) – buffers – CP15/17
The PRA has today published a CP on its proposed expectations regarding the relationship between MREL and buffer requirements, including the consequences of not meeting these. The CP is relevant to all PRA regulated...
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...
EIOPA creates webpage on product intervention powers under PRIIPs regulation
The webpage is available here.
Product intervention powers will come into force as of 1 January 2018.
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...
FCA reminds firms that recommended MiFID II authorisation and VOP application date has passed
In an announcement today, the FCA is reminding firms that need to submit applications, do so without further delay. FCA will determine complete applications received after 3 July 2017 within 6 months, but cannot...
FCA publishes new rules – CASS 7A & the special administration Regime Review Policy Statement (PS17/18)
In the FCA’s consultation paper CP17/2: CASS 7A & the Special Administration Regime Review (SAR), it proposed changes to CASS in relation to an investment firm failure and its interaction with the SAR...
HM Treasury publishes final ILS Regulations
Following two consultations in 2016, HM Treasury has published the final rules for a new tax and regulatory framework for insurance linked securities (ILS) business in the UK. The Risk Transformation Regulations 2017...
EC publishes draft Delegated Regulation on insurance-based investement product requirements under IDD
EC has published for consultation a draft Delegated Regulation supplementing the IDD concerning information requirements and conduct of business rules applicable to the distribution of insurance-based investment...
FCA makes new rules
At FCA’s July Board meeting it made several new rulebook instruments. Key changes are: to make minor changes to approved persons application forms with effect from 12 September; to set the fees payable to the PSR...
UK Finance and AFME publish guidance on the use of league tables
League tables are used to illustrate the ranking of investment banks and financial advisors in different activities. League tables can be aggregated to encompass all investment banking activities, or split according to...
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 Regulation Round-Up for July
The FCA published its July edition of Regulation Round-Up this week. Highlights of some of the “hot topics” covered include: interim report of the FCA’s Retirement Outcomes Review; the publication of...
UK Finance publishes updated Access to Banking Standards
UK Finance (the new industry association including, among others, the BBA) has updated its Access to Banking Standards in relation to bank branch closures. It is hoped that these changes will help banks provide...
FCA publishes Memorandum of Understanding with Hong Kong SFC
FCA has published a supervisory memorandum of understanding (MoU) with the Hong Kong Securities and Futures Commission. The MoU is an agreement between the Regulators to collaborate on some of their mutual supervisory...
FCA launches Market data processor (MDP) entity portal webpage
FCA uses the webpage to explain the purpose of the MDP. MiFID II involves large changes in the volumes and range of data that certain entities need to submit to the FCA. As a result, the FCA has developed a new MDP...
Financial Guidance and Claims Bill reaches Committee stage
The Financial Guidance and Claims Bill has reached the Committee stage in the House of Lords in the parliamentary process. The Bill started in the Lords so, after it has finished the Lords stages, it will need to go to...
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...
FCA publishes MiFID 2 passporting forms
FCA has published a new page on its website outlining how a firm can apply for a passport under MiFID 2. It also includes details of deadlines and links to the relevant application forms. Firms need to use these forms...