FCA has written to the CEOs of firms that offer CFDs reminding them about the potential for substantial losses to be suffered by those who invest in them. FCA says around 80% of customers lose money when investing in...
Category - Investments
Emma RadmoreFCA consults on pension dashboards and makes rules on non-workplace pensions
FCA has published proposals to enable pension dashboard operators to offer additional services that will improve engagement with pensions, provided they meet required standards. The additional services could include...
FCA consults on simplified advice regime
FCA is consulting on a proposed simplified advice regime, which will allow firms more easily to give consumers advice about certain mainstream investments within stocks and shares ISAs. It proposes, as part of its...
FCA fines JBI for breaches of Principle
FCA has fined Julius Baer International £18,022,500 for breaches of Principles 1, 3 and 11 at various times between 2007 and 2014. It has also decided to ban 3 individuals – all of whom have taken their case to...
FCA worried about trading app design
FCA is concerned that certain stock trading apps include game-like elements which risk prompting consumers to take actions beyond their risk appetite and not in their interests. It has highlighted practices which...
New FSMB Amendments published
The House of Commons has published an amendment paper for the FSM Bill, tabling two new additional clauses. The new clauses relate to stewardship reporting requirements for OPS and for large institutional investors...
Principals to respond to AR requests by 28 February 2023
Following confirmation that it will be sending principal firms that have ARs a s165 information request in December, the FCA has updated its webpage to let firms know that they should expect to receive this via Connect...
TPT launches ‘gold standard’ for climate transition plans
The Transition Plan Taskforce (TPT) has published its Disclosure Framework and accompanying Implementation Guidance. The Framework makes recommendations for companies and financial institutions to develop gold-standard...
FCA prosecutes individuals for investment fraud
Following FCA application, there will be a trial of 4 defendants in February 2023 for alleged investment fraud. FCA alleges the 4 individuals were involved with a London-based company called Bespoke Markets Group...
Highlights of FSMB debates from 25 October
The 3rd and 4th sittings of the Public Bill Committee debate on the FSM Bill took place on 25 October. After the evidence sessions from witnesses on 19 October, the line-by-line scrutiny of the Bill has now started...
Emma RadmoreCourt finds mortgage adviser had no duty to investigate underlying investment
The High Court has ruled on a case brought by investment fraud victims in a clarification of mortgage advisers’ duties. The judgment in Taylor & Anor v Legal and General Partnership Services Ltd [2022] EWHC...
Nicola RadfordFCA consults on anti-greenwashing rules
FCA is consulting on new rules to tackle greenwashing. Following its commitment in its ESG strategy and business plan, FCA is now addressing the concerns that the increasing exaggerated, misleading or unsubstantiated...
Further FSMB revisions released
Parliament has published the latest raft of proposed amendments to the FSM Bill. These include: a change to the very first sub-clause, replacing the revocation of the EU and EU-derived legislation in the schedule so...
FCA updates on Consumer Investments Strategy
FCA has published an update on its Consumer Investments Strategy, tracking what has happened in the past year. Highlights are that FCA has: prevented 1 in 5 applicants wanting to enter the consumer investments market...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...
FSMB Committee stage scheduled for 19 October
An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October. After the line by line debate is complete, the Bill will be republished for report...
BoE stress test finds UK CCPs resilient to stresses
BoE has published the results of its first supervisory stress-test of UK central counterparties. The exercise involved all UK CCPs, ICE Clear Europe Limited, LCH Limited and LME Clear Limited. The CCPs showed...
FCA fines and bans for market abuse reporting failures
FCA has fined Sigma Broking Limited and has banned and fined its former directors. The firm failed to make reports, or accurate reports, on 56,000 CfDs over a period of just over 18 months to August 2016, and also...
Market Watch focuses on transaction reporting
The latest edition of Market Watch looks at how many firms have accessed FCA’s Market Data Processor Entity Portal over the past 4 years – and there has been a gradual increase. There has however been a...
Ombudsman News and new FOS UCIS pages
The latest edition of Ombudsman News highlights the recent complaints data we’ve previously reported on, and gives guidance on complaints relating to UCIS. FOS is seeing increasing complaints about advice to...
Court dismisses JR application on FOS decision
The High Court has refused a renewed application by Charles Street Securities Europe LLP for permission to apply for judicial review of a FOS decision made in February 2021. The dispute focused on whether Mr R, a client...
FCA speaks on role of regulation in growth
Sarah Pritchard, Executive Director at FCA, has spoken on the regulator’s role in encouraging growth. Key points in her wide-ranging speech included: FCA’s commitment to showing speed and agility, providing...
FOS publishes H1 complaints data
FOS has published its regular half-yearly update on complaints data relating to individual businesses. 212 businesses feature, with an average uphold rate of 37% (the same as the previous period). FOS has also reported...
FCA consults on trading venue perimeter
FCA is consulting on clarifications to the regulatory perimeter for trading venues and related services. The consultation is part of the wholesale markets review and reflects concerns expressed as part of the feedback...
FCA updates on Link Fund Solutions investigation
FCA has confirmed it has now issued Link Fund Solutions Ltd with a draft Warning Notice following its investigation into the circumstances leading up to the suspension of the Woodford Equity income Fund. The firm has 14...
FCA imposes conditions on CiC
On 12 September, FCA announced that it has imposed conditions on a proposed change in control. Dye & Durham is looking to take over the Link Group, which involves the acquisition of 7 FCA-authorised firms. One of...
FOS publishes latest complaints data
FOS has published its latest quarterly data on complaints in relation to financial products. The data covers the period of April to June 2022, and can be accessed in full as a spreadsheet. Over the period, the average...
FCA to send AR requests in December
FCA has confirmed it will be sending principal firms that have appointed representatives a s165 information request in December. The request (which FCA had previously said it would issue later this year) will seek...
FCA fines for failure to have trade surveillance requirements
FCA has imposed a fine of over £12.5m on Citigroup Global Markets Limited, for failing to comply with MAR trade surveillance requirements. MAR introduced a requirement from 2016 to monitor orders and trades to detect...
FCA to consult on SMCR enhanced scope coverage
FCA is to consult shortly on changes to clarify the scope of firms that fall within the scope of Enhanced Scope SMCR firms. When it renamed and moved the definition of “Significant IFPRU firm” as part of...
FCA urges further transition of LIBOR-linked bonds
FCA is continuing to encourage issuers and bondholders of outstanding LIBOR-linked bonds to take whatever action is necessary to transition them to fair alternative rates. Wherever consent solicitation is practicable...
UKJT consults on legal statement for digital securities
The UK Jurisdiction Task force is looking at the way in which English law can support the issue and transfer of equity or debt securities on blockchain and DLT systems. The statement will follow its work over recent...
FCA publishes “alternatives” supervisory letter
FCA has published its supervisory strategy letter for “alternatives” – that is firms that are predominantly active in the alternative investment sector. Although the letter, as usual, is addressed to...
PRA makes new rules
PRA has made changes to its rules, supervisory statements, statements of policy and technical standards following its Occasional consultation 3/22. The changes affect: Solvency II firms: in respect of the Statement of...
FCA confirms new AR rules
FCA has confirmed its new rules to make principal firms more responsible for their ARs. The package of rules, which will take effect from 8 December, will: require principals to notify FCA of future AR appointments 30...
FCA consults on widening access to the LTAF
The FCA has outlined proposals to market the Long Term Asset Fund (LTAF) to a wider group of retail investors and pension schemes, whilst also introducing enhanced investor protections. Highlights include plans to:...
Lucy HadrillFCA finalises high-risk fin prom rules
FCA has published its policy statement with final rules on firms that are publishing promotions of high-risk products. The new rules will require firms that are issuing and approving the materials to have appropriate...
FCA publishes Carillion decision notices
FCA has published its decision notices in respect of Carillion plc and three of its former executive directors. As the company is in liquidation, FCA has imposed a public censure, which has not been appealed. However...
Need more detail on the Financial Services and Markets Bill?
We’ve produced a detailed summary of the key aspects of the Financial Services and Markets Bill, following up on our headline post. While the Bill won’t be having its second reading until September, keep an...
FCA publishes fin proms data
FCA has published its quarterly data for the quarter ending June 2022 on its actions against firms that breach financial promotions restrictions and requirements. Key statistics include: review of 451 promotions...
New Financial Services and Markets Bill in Parliament
The Government has introduced the Financial Services and Markets Bill into Parliament. The Bill was introduced on 20 July and had its first reading, but no date was set for the second reading. In his first Mansion House...
Complaints Commissioner publishes Annual Report
In this year’s report by the Complaints Commissioner dealing with complaints against the Financial Services Regulators, Amerdeep Somal outlines what her office dealt with, and how it compared to last year. 935...
FCA fines failed firm for financial crime failings
FCA has fined the TJM Partnership, which is now in liquidation, £2,038,700 for financial crime compliance failings in cum-ex trading business. This is the third fine in this area, and the largest. FCA found the firm...
High Court finds that Robert Tchenguiz was correctly classified as an elective professional client and that there was no breach of COBS rules
Background Investor Robert Tchenguiz (T) had opened a spread betting account with CMC Spreadbet plc (CMC), and CMC had elected to treat T as a ‘professional client’. T’s classification as an elective...
Harshil PatelTreasury Committee launches inquiry into cryptoassets
The Treasury Committee has launched a new inquiry into cryptoassets. The inquiry will cover the opportunities and risks that cryptoassets may bring to consumers, businesses and the government. It will also examine the...
ESMA announces consultation on MiFID II product governance guidelines
ESMA has announced a consultation on reviewed MiFID II product governance guidelines following the outcome of its 2021 common supervisory action (CSA) on the same theme. The results of the CSA revealed that: firms...
Duncan ScottBoE speech: lessons from the “crypto winter”
Sir Jon Cunliffe, BoE Deputy Governor – Financial Stability, has delivered a speech in which he set out what he thinks are the lessons from the recent instability and losses in crypto markets (also known as the...
FSB updates on international regulation and supervision of crypto activities
The FSB has published a statement on international regulation and supervision of cryptoassets activities. Highlights include: the FSB will continue to facilitate cross-border and cross-sectoral cooperation amongst...
ESMA consults on the DLT Pilot Regime
Following its call for evidence earlier this year, ESMA is consulting on draft guidelines on standard forms, formats and templates to apply for permission to operate a DLT market infrastructure. The proposed draft...
FCA consults on improvements to equity secondary markets
FCA has published a consultation paper outlining its proposals to improve the functioning of UK equity secondary markets. The changes form part of the Wholesale Markets Review and would be designed to: improve the...
FCA publishes rules to protect investors in authorised funds following the invasion of Ukraine
Following its consultation earlier this year, the FCA has published final rules and guidance to allow authorised fund managers to create side pockets for retail investment funds affected by the Russian invasion of...
FCA plans to consult on sustainability disclosure requirements in autumn 2022
In response to growing consumer demand, firms are providing an increasingly diverse range of products that target various sustainability objectives, themes or characteristics. FCA acknowledges that there is also a risk...
FOS publishes annual complaints data for 2021/22
FOS has published its annual complaints data for April 2021 – March 2022. Highlights include: FOS received 165,263 new complaints which is a decrease on the previous year (279,146). Of these, there were 5,369 PPI...
FCA publishes quarterly consultation
The FCA’s latest quarterly consultation covers: a minor amendment to DEPP to reflect changes to the FCA’s decision-making processes implemented on 26 November 2021; amendments to the Compensation rules relating to...
Court finds introducer in breach of FSMA but allows commission to stand
Kinled Investments Limited introduced an investor to Zopa Group Limited. Kinled claimed a £4.2m fee from Zopa for its intermediary work when the investor made a second investment, while Zopa counterclaimed £345,000 as...
ESMA provides guidance on sustainability risks
On 31 May 2021, ESMA published a supervisory briefing setting out guidance on the integration of sustainability risks in the area of asset management. The guidance is aimed at national competent authorities (NCAs) to...
FIN. TeamFCA proposes further reforms to the listing regime
FCA has published the feedback to its discussion paper on proposed reforms to improve the effectiveness of UK primary markets and the listing regime. In a second discussion paper, published alongside this feedback, the...
HM Treasury speech on credit unions reform
On 24 May 2022, in a speech delivered at the Association of British Credit Unions annual conference, John Glen, Economic Secretary to HM Treasury, announced reforms to the legislative framework for credit unions. In the...
ESMA publishes final report on investment firm best execution reporting
The European Securities and Markets Authority (ESMA) has published its Final Report on the review of the MiFID II framework on best execution reports by investment firms. MiFID II requires execution venues and...
ESMA updates Q&As on crowdfunding
On 20th May 2022, the European Securities and Markets Authority (ESMA) has updated the Questions and Answers on the European crowdfunding service providers for business Regulation. The changes specifically address...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
FCA fines and bans firms and individuals over pensions advice
FCA has issued final notices to two firms in relation to their pension advice business and misleading the FCA. The fact pattern for both firms was similar, involving their use of a Pension Review and Advice Process...
FCA publishes issue 69 of Market Watch
On 17 May 2022, the FCA published Market Watch 69, its newsletter on market conduct and transaction reporting issues. The newsletter focuses on firms’ arrangements for market abuse surveillance, drawing on the...
FCA consults on expanding dormant assets scheme
On 13 May 2022, the FCA published a consultation paper on expanding the dormant assets scheme (the Scheme). The Scheme allows banks and building societies to pay dormant monies to an authorised reclaim fund which then...
FCA refuses to authorise compliance firm to operate investment network
The FCA has refused to authorise Alexander Jon Compliance Consulting Limited (AJCC) to provide regulatory hosting services. AJCC applied to take responsibility for appointed representatives (ARs) carrying out regulated...
EU reaches deal on DORA
The EU Commission, EU Council and EU Parliament have reached agreement on the Commission’s proposal for a Digital Operational Resilience Act (DORA). The new rules aim to harmonise and strengthen digital...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
Queen’s Speech 2022 – FS elements
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
ESAs call for improvements to PRIIPs KID
The ESAs have issued a joint supervisory statement regarding the ‘What is this product?’ section of the KID for PRIIPs. It aims to improve the quality of descriptions provided by PRIIPs manufacturers and thereby...
FMSB is changing its name
FMSB has announced that it is changing its name from the FICC Markets Standards Board to the Financial Markets Standards Board. It will continue to use “FMSB”. FMSB says the change will help support...
PRA issues policy statement on trading activity wind-down
Following the four responses received to its consultation paper, the PRA has published its final policy on trading activity wind down. The policy statement is relevant to all PRA-authorised UK banks, their qualifying...
FCA launches new IFPR webpage
The FCA has launched a new webpage which sets out how to submit MIFIDPRU applications and notifications. It also includes information for IFPR firms about MIF returns.
FCA publishes investment platforms market study findings
As part of its Investment Platforms Market Study in 2019, the FCA said it would keep the role of platforms in helping consumers understand their investment costs under review. The FCA has now published a new webpage...
European Commission calls for views on consumer participation in capital markets
The European Commission has opened a call for evidence on a proposed Regulation to improve market outcomes and increase consumer participation in capital markets. The consultation period is short, lasting only until...
ESAs propose PRIIPs KID changes
The ESAs have published their technical advice to the European Commission on making the PRIIPs Key Information Document more user friendly, The advice recommends several changes and encourages the Commission to...
ESMA issues recommendations to improve investor protection
ESMA published its final report to enable investors to get the key information required to make well-informed investment decisions both quickly and easily, whilst also protecting them from aggressive marketing...
FCA issues consultation on protecting investors in authorised funds affected by the invasion of Ukraine
FCA is consulting on rules which will allow Authorised Fund Managers to create separate unit classes (side pockets) for retail investment funds affected by the invasion of Ukraine. The Russian invasion of Ukraine has...
Post-Trade Task Force publishes report
The industry led Post-Trade Task Force has published its report on the future of post-trade. Its work will now be taken forward by the FICC Markets Standards Board (FMSB). The report looks at key challenges which it...
Permission to apply for judicial review of 16 FOS decisions refused
In the case of Portal Financial Services LLP v Financial Ombudsman Service Limited [2022] EWHC 710 (Admin) the court has, on appeal, refused Portal permission to apply for Judicial Review of 16 decisions of FOS. The...
Scott NodderFCA publishes thematic review on wind-down planning
FCA has published its thematic review looking at wind-down planning across different business models, with a focus on liquidity needs during wind-down, intra-group dependencies and wind-down triggers. It has reiterated...
EU adopts additional equivalence decisions for US exchanges
The European Commission (EC) has adopted a decision declaring that a number of US exchanges supervised by the US Securities Exchange Commission (SEC) are equivalent to EU regulated markets. Derivatives traded on such US...
FCA, Bank of England and PRA joint statement on LME and LME Clear
The London Metal Exchange (LME) suspended nickel trading on 8 March 2022, having concluded that a disorderly market had arisen due to challenging commodity market conditions following the events in Ukraine. Nickel...
FSCP backs FCA’s plans to strengthen fin prom rules for high risk investments
The Financial Services Consumer Panel (FSCP) has published its response to the FCA’s consultation on how to improve its financial promotion rules for high risk investments, which closed on 23 March. The FSCP...
ESMA addresses asset management industry on sustainable finance and systemic risk
On 24 March 2022, Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), delivered her keynote speech to the participants of the ICI Investment Management Conference 2022. In her...
FCA fines asset manager and former investment director
FCA has fined GAM International Management Limited £9m, and its former Investment Director and Business Unit Head Timothy Haywood £230,000 following failure to conduct business with due care and attention, and failure...
FCA confirms changes to PRIIPs regulation
Following its consultation in 2021, the FCA has confirmed it is making changes to the PRIIPs regulation to: clarify the scope of the PRIIPs regulation for corporate bonds, making it clearer that certain common features...
ESMA extends recognition decisions for UK CCPs
ESMA has announced that it has decided to extend the application of the recognition decisions under Article 25 of EMIR for three CCPs established in the UK. As such, the recognition and tiering decisions in relation to...
FCA portfolio strategy letter on custody
FCA’s latest letter on its portfolio supervision strategy relates to custody and fund services. It sees 4 areas of potential harm: disruption to consumers and market participants, or the loss, compromise, or lack...
IOSCO consults on retail market conduct
IOSCO has published a consultation report from the Retail Market Conduct Task Force. The report looks at recent retail investor trends and the development of a regulatory toolkit to help regulators consider emerging...
Consumers warned on the risks of crypto-assets
The European Supervisory Authorities (EBA, ESMA and EIOPA – the ESAs) warn consumers that many crypto-assets are “highly risky” and speculative. The ESAs advised that sufficient measures are needed to...
FMLC letter to Treasury: Financial Promotions Rules for Cryptoassets
The Financial Markets Law Committee (FMLC) has issued a letter to Treasury following the Treasury’s response to its 2020 Consultation on cryptoasset promotions. The letter highlights that the FMLC has identified...
FCA responds on LCF Complaints
FCA has set out its response to the Complaints Commissioner’s report on its handling of the failure of LCF in respect of assessing complaints against it. It says it is sorry for the mistakes it made. It has...
European Commission adopts RTS on disclosure of firms’ investment policy under the IFR
Following the EBA’s publication of draft RTS last year, the European Commission has now adopted a Delegated Regulation containing RTS on the disclosure of firms’ investment policy under the IFR. Article 52...
ESMA publishes peer review on cross-border supervision
ESMA has published its peer review on cross-border supervision of investment firms, and. It found many shortcomings, and says that “home” regulators need to make significant improvements to their approach...
FCA portfolio letter for Credit Unions
The FCA has published a portfolio letter to Credit Union Boards setting out the usual key risks of harm that are present for Credit Unions, their members and the markets in which they operate. The letter asks firms to...
FCA consults on miscellaneous rule changes
FCA’s latest quarterly consultation covers: proposed changes to PERG in respect of the MiFID 2 ancillary activities test; making collective investment portfolio managers subject to the same research and inducement...
Former Redcentric CFO sentenced to five and a half years imprisonment
Following the guilty verdict back in February of the two former finance chiefs at a London-listed IT firm found to be misleading investors after they falsified the company’s accounts, Tim Coleman has now been sentenced...
FCA publishes Consumer investments data review
The FCA has published its third Consumer investments data review. The review provides an overview of FCA’s work to protect consumers from investment harm between April and September 2021. This follows FCA’s...
Emma BondFCA notes impact of invasion of Ukraine on financial markets
FCA has noted the multiple impacts that financial markets will feel following the Russian invasion of Ukraine itself and the wide range of sanctions imposed by numerous jurisdictions on Russia, Russian individuals and...
Treasury publishes prudential consultation outcome
Treasury has published the outcome of its consultation on implementation of the IFPR and Basel 3. The latest update looks at how to amend the definition of “investment firm” in s48D Banking Act 2009 to...