FCA has published the form firms that already hold certain investment-related permissions should use to notify it that they wish to sell or advise on structured deposits once MiFID 2 takes effect. Only firms with...
Category - Investments
Emma RadmoreFCA publishes near final MiFID 2 trading rules and consults on others
FCA has published a near final version of many of the rule changes to implement MiFID 2. The rules it has now more or less finalised relate to: data reporting services providers (DSRPs) – a new category of firm;...
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...
Treasury makes investment advice change
Treasury has published the statutory instrument amending article 53 of the RAO to make the change to the definition of “investment advice” on which Treasury had consulted. As promised, it does not amend the...
MiFID 2 RAO amendments made
The FSMA (Regulated Activities) (Amendment) Order 2017 has been made. It makes several amendments to FSMA and secondary legislation, primarily the RAO, as part of the UK’s implementation of MiFID 2. Key...
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...
FIN. TeamSuper trade body gets a name
The new trade body, which will be formed from the merger of the BBA, CML, Payments UK, the UK Cards Association, the Asset Based Finance Association and Financial Fraud Action UK, is to be called UK Finance. Bog Wigley...
“Same business, same risks, same rules” – ECB comments on regulation of Fintech
In a statement made at an ECB Fintech Workshop, Sabine Lautenschläger (Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB) told the audience how the ECB sees some of the...
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...
European Commission releases public consultation on FinTech as part of Consumer Financial Services Action Plan
In a statement released today, the European Commission has presented an Action Plan that sets out ways to provide European consumers with greater choice and better access to financial services across the EU. At its...
MiFID 2 essential checklist
We have written an article for Law360.com setting out a MiFID 2 essential checklist for arrangers/advisers and wealth managers.
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...
Commission adopts PRIIPs delegated act
The European Commission has finally adopted the delegated Regulation on RTS under the PRIIPs Regulation, specifying the presentation, content and format of the PRIIPs KID, the methodology for presenting risk and reward...
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 concerned on dealing commission use
FCA is concerned that firms are failing to meet expectations on use of dealing commission. It carried out a review of 31 investment managers, to see how they had responded to its 2014 discussion paper on the use of...
FCA concerned on best execution
FCA has warned investment managers it may take further action after finding that they have failed to meet expectations on securing best execution for their clients. FCA is concerned the majority of firms have not taken...
In the FCA pipeline
FCA has updated its policy development webpage for March 2017. Key publications due before the summer include: March/Q1 2017: IDD Implementation – CP1 MAR 1 changes: inside information relating to commodity derivatives...
Emma RadmoreEuropean Commission speaks on Fintech
European Commission Vice President Valdis Dombrovskis spoke at a Fintech and Digital Innovation Conference. He noted the need to keep up with change and for regulators to fully understand new technologies and regulate...
Treasury updates on financial advice
Treasury has published the outcome of its consultation on the definition of financial advice. It has decided to amend the definition so that: regulated firms will be giving advice only where they provide a personal...
Article on Treasury MiFID 2 feedback
Following FIN’s report that Treasury had published its feedback and draft legislation for MiFID 2 implementation, we have now written an article on the feedback.
Court dismisses judicial review application of FOS decision
The court has dismissed an application for judicial review by Full Circle Asset Management Ltd (FCAM), a firm of financial advisors, of a decision by FOS. FOS had upheld a complaint made by an FCAM’s client, Mrs King...
Government announces Fintech week
The Government has announced the date of the 2017 Fintech week. It will take place in the week of April 10, and will include: Innovate Finance’s Global Summit the Government’s first International Fintech...
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 and Ontario regulator sign up to innovation cooperation
FCA and the Ontario Securities Commission have signed a co-operation agreement to help Fintech businesses in each other’s jurisdictions get help from the local regulator when seeking to enter their market. The...
EU Fintech report to be debated in May
The EU legislative observatory indicates the EP’s report on Fintech is to be debated in committee session in mid-April and in plenary in mid-May. The draft opinion focuses on the benefits of Fintech for SMEs and...
MiFID 2 application guide
We’ve written an article on FCA’s recent MiFID 2 application and notification guide.
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.
MiFID 2 record keeping requirements
We’ve prepared a summary of record keeping requirements and the obligations of firms around recording of calls under MiFID 2. It’s one of many articles we’ve written (and will keep on writing) on...
Our FinTech predictions for 2017
Read the predictions of Bond Dickinson partners Claire Coleman and Simon Richardson on the year ahead for FinTechs.
FOS focuses on complainant age
The latest edition of Ombudsman News looks at the types of complaints FOS addresses from people under 25. PPI is not a concern for them, with the majority of “millennial and post millennial” complaints...
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 looks at treatment of acquired clients
FCA has carried out a supervision review of how investment advisory firms treat clients they acquire from other firms. The sample in its study was small, and FCA recognises it may not be representative of the wider...
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...
FCA updates on unauthorised business risks
FCA has reminded firms of the risks of accepting business from unauthorised introducers or lead generators. It stresses that authorised firms may be held responsible for unsuitable advice given by an introducer, and has...
FCA consults further on CASS 7A changes
FCA is consulting on changes to CASS chapter 7A and, in particular, on proposed changes affecting the return of client assets. The consultation follows Treasury’s proposals on changes to the Special...
Commission consults on CMU action
The European Commission has published a consultation document on the CMU action plan in connection with its planned mid-term review. The consultation provides an opportunity for stakeholders to provide targeted input to...
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...
FCA publishes MiFID 2 application guide
FCA has published an application and notification user guide on MiFID 2. The guide deals with applications for new authorisation as investment firms or data reporting providers, recognition of investment exchanges...
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...
ESMA finds best execution improvements
A report from ESMA on the standard of regulatory supervision of best execution requirements under MiFID shows national regulators have improved the level of attention they pay to compliance with best execution...
Law Society responds on financial advice
The Law Society has published its response to HMT’s consultation on amending the definition of financial advice in Article 53 of RAO. Generally, the Law Society supports the policy objective of appropriate regulatory...
Government consults on single body for public financial guidance
The Treasury has issued a consultation on proposals to establish a single advisory body to replace, and bridge perceived gaps between, the Money Advice Service, the Pensions Advisory Service and ‘Pension...
WMA responds on product governance
WMA’s response to ESMA’s consultation on draft guidelines on product governance under MiFID 2 highlights: that execution-only firms are not clear on what is expected of them, given the restricted information...
CLLS responds on financial advice
The City of London Law Society (CLLS) has published the response of its Regulatory Law Committee to HMT’s consultation on amending the definition of financial advice in Article 53 of RAO. It notes there is considerable...
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;...
ESMA publishes MAR FAQs
ESMA has published an updated questions and answers document on MAR. New questions cover whether transactions should be aggregated for the purpose of the trigger for the notification obligation for PDMRs and their...
FCA publishes fourth MiFID 2 consultation
FCA has published its fourth consultation on changes to its rules to implement MiFID 2. This consultation is in many ways a sweep-up to cover all changes not previously covered in FCA’s other consultations. To a...
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”...
Presentation disclaimers do work after all
On 8 December, the Court of Appeal overturned the Commercial Court’s decision in relation to s.2(1) of the Misrepresentation Act 1967 (negligent misrepresentation), and standard disclaimers in written publications...
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...
EP publishes Brexit briefing
The European Parliament has published a briefing on the impact of Brexit on the financial services industry. The briefing describes the prominent role of the UK in the single market for financial services and highlights...
FOS looks at mental health and complaints
The latest issue of Ombudsman News focuses on complaints firms have received in respect of customers with mental health issues.
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 explains RMAR
FCA has published a summary of why it collects data for the RMAR and how it uses it. Its key purpose is to help it supervise firms in a way to minimise poor consumer outcomes in the retail investment market. The data...
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 retail CFD changes
The FCA is proposing stricter rules governing retail CFD products after identifying a number of concerns. It is worried retail customers are opening and trading CFD products that they do not adequately understand. A...
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...
What’s coming up from FCA
FCA’s latest Policy Development Update indicates we can expect its fourth consultation paper on MiFID 2 implementation soon, maybe before the end of the year. It then promises feedback on consultations to date...
FCA makes it crystal clear that 2016/2017 Remuneration must be directly linked to Effective Risk Management
The FCA will crack down hard on firms which incentivise behaviours that are not in the best interests of consumers, market integrity or fair competition and will look closely at Material Risk Takers, bonus pools and...
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.
PRA consults further on MiFID 2
PRA has published its second consultation paper on changes it needs to make to its rules as a result of MiFID 2. This paper focuses on the changes needed to take account of the requirements in the MiFID 2 Delegated...
Autumn Statement financial services round up
The Chancellor’s Autumn Statement contained several statements relevant to financial institutions and insurers – some announcements of initiatives already planned or even implemented, and some new promises. We...
European Commission publishes proposals to complete reform of financial regulatory system
The Commission has put forward a package of proposals including amendments to the Capital Requirements Regulation (CRR) and Directive (CRD), the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution...
FCA updates PRIIPs timetable
FCA has announced it will publish its final rules on disclosure requirements to reflect the PRIIPS Regulation during the first part of 2017, and expect them to take effect from January 2018.
ESMA updates funds FAQs
ESMA has published updates to its FAQs on: the AIFMD: this includes questions on whether creating a new share class of an AIF which is to marketed cross-border with existing share classes, constitutes a material change...
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...
ESMA’s MiFID 2 product governance guidelines
Andrew Barber and Emma Radmore gave an interview to Lexis PSL on ESMA’s draft product governance guidelines for manufacturers and distributors of products covered by MiFID 2. We have now published the contents of...
Commission to delay PRIIPs
The European Commission has proposed to delay the implementation date of the PRIIPs Regulation by one year to 1 January 2018. The proposal follows the European Parliament’s rejection of the RTS to be made under...
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...
FCA updates on sandbox use
FCA has published a list of firms who it allowed to begin testing new products in its regulatory sandbox. It received 69 applications in its first wave, of which it accepted 24. Successful applicants range from the...
FCA sets out its mission
FCA has started a discussion on its “future mission”. It sets out how it thinks it should prioritise its energies and resources in terms of ensuring the smooth functioning of markets, protection of...
PRIIPs delegated regulation regarding product intervention published in OJ
The Commission Delegated Regulation (EU) 2016/1904 supplementing the PRIIPs Regulation was published in the Official Journal on 29 October 2016. Under the PRIIPs Regulation, national competent authorities and EIOPA have...
FCA publishes final report on corporate and investment banking
The FCA has published the final findings from its thematic review into corporate and investment banking. The study was designed to foster competition in the industry and has concluded that whilst many clients are well...
EP to approve new prospectus rules
The European Parliament has backed the European Commission’s proposals for a new Prospectus Regulation, which will significantly increase the ability of SME’s to seek funding without having to publish a...
Treasury confirms new advice body
Treasury has confirmed it is to set up a new public body offering debt advice, money and pensions guidance to replace the MAS and bring together the existing pensions advisory bodies. The body has not yet been designed...
FCA updates on smarter communications
FCA has updated its guidance on smarter communications with customers. It has removed some ineffective disclosure requirements from its rules, and published feedback on its discussion paper, looking at how firms can...
ESMA publishes MiFID 2 investor protection FAQs
ESMA has published a new set of FAQs on investor protection issues under MiFID 2. The initial questions cover best execution, suitability and appropriateness, recording telephone conversations and electronic...
City publishes Brexit report
On 5 October, the City UK published a report by Oliver Wyman looking at the potential impact of Brexit on the UK-based financial services sector. The report looks at the potential consequences of various possible Brexit...
FCA fines Aviva for client money failings
FCA has fined Aviva Pension Trustees UK Limited and Aviva Wrap UK Limited £8,246,800 for failings in oversight of outsourced service providers for client assets. It found that Aviva had not put appropriate controls in...
ESMA consults on product governance guidance
ESMA is consulting on draft guidelines for supervisors to help them assess whether product manufacturers and distributors have properly complied with MiFID 2’s requirements on product governance. The guidelines...
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 consults on major MiFID 2 changes
FCA has published its third, and longest, consultation paper on implementing MiFID 2. The paper includes analysis of, and proposed Handbook changes for , the key conduct of business and related requirements within the...
Treasury consults on financial advice amendment
Treasury is consulting on amending the definition of “giving investment advice” under the Regulated Activities Order to bring it into line with MiFID. The current definition is broader than MiFID, and the...
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...
Read our articles on MiFID 2
We have recently written several articles on MiFID 2: MiFID 2: FCA gathers steam Post Brexit: What to do about MiFID 2? Conduct of Business under MiFID 2 – getting the gap analysis right FCA consults on major MiFID 2...
ECON rejects PRIIPS RTS
ECON has unanimously rejected the Commission’s draft KID for PRIIPS. It said much of the proposed content contained flaws, and could lead investors to think an investment would more profitable than was likely...
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...