On 18 March 2024, the Investment Association (IA) published a guide ‘Operational resilience: severe but plausible (SBP) scenarios’. The guide directly builds upon the IA’s previous member guidance on scenario testing from December 2021 and this new guide represents the IA’s continued contribution to building a common understanding and establishing best practice with regard to … Continue Reading
On 18 March 2024, the Financial Stability Board (FSB) published a revised version of its 2016 guidance on arrangements to support operational continuity in resolution. The 2016 guidance assists supervisory and resolution authorities, and financial institutions to evaluate whether financial institutions that are subject to resolution planning requirements have appropriate arrangements to support operational continuity … Continue Reading
On 15 March 2024, the Financial Conduct Authority (FCA) announced a review into firms’ treatment of customers in vulnerable circumstances. The supports the FCA’s 2021 commitment. The announcement is in parallel with the Consumer Duty’s overarching objective, as firms are required to act to deliver good outcomes for all customers, including those with characteristics of … Continue Reading
On 14 March 2024, the FCA published a speech by its CEO, Nikhil Rathi, entitled ‘Investing in outcomes: a regulatory approach to deliver for consumers, markets and competitiveness’. In his speech Mr Rathi touches on some of the big issues investors have on their minds: In relation to the Consumer Duty, Mr Rathi notes that … Continue Reading
On 11 March 2024, the Financial Conduct Authority (FCA) published a statement updating its position on cryptoasset-backed Exchange Traded Notes (cETNs) for professional investors. The statement explains that the FCA will not object to requests from Recognised Investment Exchanges (RIEs) to create a UK listed market segment for cETNs. These products would be available for … Continue Reading
On 8 March 2024, the Investment Association (IA) issued a report ‘Insights and Suggested Actions on the FCA’s TCFD Rules for Asset Managers: Lessons from Year 1 Reporting and Recommendations Going Forward’. The report sets out the IA’s review of investment managers’ entity, product and on-demand reporting, some of the key challenges faced in implementing … Continue Reading
On 7 March 2024, the Financial Conduct Authority (FCA) published a statement regarding changes to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO). The statement highlights that the FCA and industry implemented the changes to the high net worth exemption by 31 January 2024, as required under the law. The changes … Continue Reading
On 7 March 2024, Statutory Instrument 2024 No.301 – the Financial Services and Markets Act 2000 (Amendment and Transitional Provision) Order 2024 – (the SI) was published. Background The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO) contains exemptions from the restriction on communicating financial promotions, including exemptions that enable financial promotions … Continue Reading
On 7 March 2024, the Bank of England’s (BoE) Executive Director for Data and Analytics Transformation and Chief Data Officer, James Benford, delivered a speech on the steps being taken by the BoE to update its data and analytics strategy. Mr Benford explained that the BoE is carrying out a seven-step approach to refresh its … Continue Reading
In March 2022, a year after Russia’s invasion of Ukraine, the Treasury Committee published a report regarding the development, implementation and impact of economic sanctions on Russia (the 2022 Report). In brief, the 2022 Report found that: The UK’s sanctions framework has continued to evolve, with businesses left to navigate the increasing complexity of implementing … Continue Reading
On 5 March 2024, the Financial Conduct Authority (FCA) published its response to the super-complaint it received from the Federation of Small Businesses (FSB) in December 2023, regarding the use of personal guarantees (PGs) by lenders to support loans to certain small businesses. In the response, the FCA committed to investigate these practices. The super-complaint … Continue Reading
On 4 March 2024, the National Audit Office (NAO) published a report examining whether the Bank of England (BoE) has efficient and effective systems and processes to manage risks of non-compliance with legal, ethical and staff policy requirements (referred to as ‘compliance risks’ in the report). The report focuses on compliance risks within these areas … Continue Reading
On 29 February 2024, the Financial Conduct Authority (FCA) published its final report on the Wholesale Data Market Study (MS23/1.5), which was launched in March 2023 to investigate persistent user concerns about how well wholesale data markets are working. The FCA highlights in its report the important role that wholesale data plays in wholesale financial … Continue Reading
On 29 February 2024, the Financial Services and Markets Act 2023 (Commencement No. 5) Regulations 2024 were made and published on legislation.gov.uk. This statutory instrument (SI) contains the fifth set of commencement regulations made under the Financial Services and Markets Act 2023 (FSMA 2023). The explanatory note to the SI provides further information on those … Continue Reading
On 28 February 2024, the Quoted Companies Alliance (QCA) published its response to the FCA Consultation Paper CP23/31 on the Primary Markets Effectiveness Review. The response overall welcomes the FCA’s proposals for widening the sponsor competency requirements in the new listing regime. However, it flags that the proposals would benefit from being more extensive so … Continue Reading
On 27 February 2024, the Financial Stability Board (FSB) published a Peer Review Report on the Thematic Review on Money Market Fund (MMF) Reforms. The peer review takes stock of the measures adopted or planned by FSB member jurisdictions in response to the 2021 FSB report Policy Proposals to Enhance MMF Resilience. Background MMFs are … Continue Reading
On 20 February 2024, the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2024 (the Order) was published, along with an explanatory memorandum. The Order amends the regulatory framework, to make operating a pension dashboard service which connects to the Money and Pensions Service (MaPS) dashboards digital architecture a regulated activity. Such dashboards … Continue Reading
On 26 February 2024, a draft statutory instrument (SI) – the Financial Services and Markets Act 2023 (Disapplication or Modification of Financial Regulator Rules in Individual Cases) Regulations 2024 – was published on legislation.gov.uk, along with a draft explanatory memorandum. One of the tools introduced by Financial Services Markets Act 2023 (FSMA 2023) is new … Continue Reading
Global Consultations closing for comments: European Union New legislation: Consultations closing for comments: Public hearings: United Kingdom New legislation: Consultations closing for comments:… Continue Reading
On 22 February 2024, the Prudential Regulation Authority (PRA) published Policy Statement PS4/24, which provides feedback to responses to Consultation Paper CP11/23 on its proposed approach to reviewing its rules. PS4/24 also contains the PRA’s final statement on the review of rules, which the PRA is required to publish under section 3RB of the Financial … Continue Reading
On 21 February 2024, Ashley Alder, Chair of the Financial Conduct Authority (FCA), delivered a speech on ‘Open regulators and open markets’. The speech centred around the importance of effective global cooperation in enabling the FCA to manage the considerable risks that accompany extremely large volumes of cross-border financial activity. This includes activity between the … Continue Reading
On 15 February 2024, the Financial Conduct Authority (FCA) requested information from several financial services firms concerning their delivery of ongoing services, for which their clients continue to be charged after advice has been given. The survey asks whether firms have assessed their ongoing services in light of the introduction of the Consumer Duty, and … Continue Reading
On 15 February 2024, the Economic Secretary to the Treasury Bim Afolami appointed Bryan Zhang to the board of the Financial Conduct Authority (FCA). Mr Zhang, who is a Co-Founder and the Executive Director of the Cambridge Centre for Alternative Finance at the Cambridge Judge Business School, will take up a role as Non-Executive Director … Continue Reading