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Topic: Regulation and compliance

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IOSCO good practices aim to foster cooperation through global supervisory colleges

On 18 January 2022, the International Organization of Securities Commissions (IOSCO) issued a final report on lessons learned from the use of global supervisory colleges. The report is based on previous IOSCO work on market fragmentation and provides a framework for securities regulators seeking to create new global supervisory colleges for sectors of financial markets … Continue Reading

FCA CP22/2: Strengthening our financial promotion rules for high risk investments, including cryptoassets

On 19 January 2022, the FCA published Consultation Paper 22/2: Strengthening our financial promotion rules for high risk investments, including cryptoassets (CP22/2). The proposals in CP22/2 build on the questions the FCA asked in Discussion Paper 21/1 (DP21/1) on how it could strengthen the financial promotions rules. The proposals in CP22/2 are a key part … Continue Reading

Summary report – ‘Targeted consultation on taking stock of the framework for supervising European capital markets, banks, insurers and pension funds: supervisory convergence and the single rulebook’

On 17 January 2022, the European Commission issued a summary report ‘Targeted consultation on taking stock of the framework for supervising European capital markets, banks, insurers and pension funds: supervisory convergence and the single rulebook’. The targeted consultation was issued last year and feeds into the preparation of a report required by the Capital Markets … Continue Reading

IOSCO consults on lessons learned from the operational resilience of trading venues and market intermediaries during the pandemic

On 13 January 2022, the International Organization of Securities Commissions (IOSCO) issued a consultation report seeking feedback on the lessons learned regarding the operational resilience of trading venues and market intermediaries during the COVID-19 pandemic. The consultation report concludes that these regulated entities largely proved to be operationally resilient and continued to serve their clients … Continue Reading

RT Plus – PS 21/16 on issuing statutory notices: A new approach to decision makers

A new episode of RT Plus is available now to stream and download. In this episode, Katie Stephen, Co-Head of the Contentious Financial Services Group in London, is joined by Rebecca Dulieu, Senior Associate, to discuss the FCA’s recent Policy Statement on issuing statutory notices, under which the FCA is reforming its decision-making process. Katie … Continue Reading

FCA Feedback Statement 22/1 ‘Accessing and using wholesale data’

Introduction On 11 January 2022, the Financial Conduct Authority (FCA) published a Feedback Statement in relation to accessing and using wholesale data to gather information. In response to a call for input in March 2020, the FCA received concerns that limited competition in the markets for benchmarks and indices, credit ratings and trading data may … Continue Reading

Happy New Year

Happy New Year to all our readers. We set out below further developments that occurred over the Christmas period. UK JMLSG consultation: syndicated lending – On 16 December 2021, the Joint Money Laundering Steering Group (JMLSG)  published a proposed revision to Part II Sector 17 (Syndicated Lending) of its guidance. The proposed revision is a … Continue Reading

Financial Institutions – Regulatory outlook for 2022

As 2021 draws to a close, we look ahead to the trends and new requirements that we may see over the next twelve months for financial institutions (FIs) in the white collar crime sphere as regulators, legislators and individuals continue to adapt to the pandemic and prevailing public opinion. 1. An increase in fraud-related investigations … Continue Reading

HM Treasury consults on financial promotion exemptions for high net worth individuals and sophisticated investors

On 15 December 2021, HM Treasury published a consultation on the financial promotion exemptions for high net worth individuals and sophisticated investors. Specifically the consultation considers three specific exemptions under the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO): Certified high net worth individuals (Article 48 of the FPO). Sophisticated investors (Article … Continue Reading

PRA PS27/21 – Designating investment firms

On 15 December 2021, the Prudential Regulation Authority (PRA) published Policy Statement 27/21 ‘Designating investment firms’ (PS27/21). In PS27/21 the PRA sets out its final update to its Statement of Policy ‘Designation of investment firms for prudential supervision by the PRA’, and final rule in the Definition of Capital Part of the PRA Rulebook following … Continue Reading

PRA statement – Guidance on changes to banking reporting requirements

On 15 December 2021, the PRA issued a statement explaining how a number of changes to banking regulatory reporting requirements are being implemented in the Capital Requirements Regulation reporting modules. The changes include: PRA Capital Requirements Regulations: the PRA has incorporated the entire body of the UK version of COREP and FINREP requirements, into PRA … Continue Reading

U.S. Strategy on Countering Corruption: Key points for international companies

On 6 December 2021, the Biden Administration released its strategy on countering corruption (the Strategy) along with an accompanying fact sheet, building on President Biden’s earlier announcement that he viewed the fight against corruption as one of the core U.S. national security priorities.  The five-point strategy places particular focus on a coordinated international approach to … Continue Reading

PRA / FCA Dear CEO letter – Supervisory review of global equity finance businesses

On 10 December 2021, the PRA and the FCA co-published a Dear CEO letter concerning a supervisory review of global equity finance businesses. The annex to the Dear CEO letter sets out the PRA’s and FCA’s main observations and expectations for these businesses in the following areas: business strategy and organisation; onboarding and reputational risk; … Continue Reading

FSB seeks feedback on how existing national and regional data frameworks affect cross-border data flows

On 10 December 2021, the Financial Stability Board (FSB) launched an online survey as part of its work under Building Block 6 of the Roadmap for enhancing Cross-border Payments. The FSB intends to use the survey to gather stakeholders’ feedback in order to better understand how requirements applicable to data could affect (either enabling or … Continue Reading

New MiFIDPRU forms

On 9 December 2021, the FCA published the following forms: Notification under MIFIDPRU 4.12.7R Notification under MIFIDPRU 5.9.3R of the concentration risk hard limit breach Notification under MIFIDPRU TP 7.4R(2)(b) Notification under MIFIDPRU TP 1.8R Notification under MIFIDPRU 4.12.10R and 4.14.20R of the intended use of own delta estimates Notification under MIFIDPRU for which there … Continue Reading

Transforming data collection communication to firms

On 8 December 2021, the Bank of England issued a communication to provide an update on the progress of the joint transformation programme, which is being led by it, the FCA and industry to transform data collection from the UK financial sector. The communication describes what has been achieved so far and the proposed activities … Continue Reading

ABC Compliance Survey 2021: five key areas to consider enhancements

Since the UK Bribery Act 2010 came into force in July 2011, standards and scope of anti-bribery and corruption (ABC) compliance programmes have evolved significantly in many jurisdictions. Norton Rose Fulbright recently carried out a global survey to assess how companies’ ABC compliance programmes compare against current global best practice expectations, as documented in guidance … Continue Reading

The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021

On 7 December 2021, there was published on the legislation.gov.uk website The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021 together with an explanatory memorandum. The amendments that the statutory instrument makes fall into three categories: Further revocations of provisions in the Capital Requirements … Continue Reading

IOSCO consultation report – The use of innovation facilitators in growth and emerging markets

On 7 December 2021, the International Organization of Securities Commissions issued a consultation report, The use of innovation facilitators in growth and emerging markets. The consultation report covers three types of innovation facilitators: innovation hubs, regulatory sandboxes, and regulatory accelerators. The consultation report proposes four recommendations for emerging market member jurisdictions to consider when setting … Continue Reading

FCA publishes second consultation on new Consumer Duty

On 7 December 2021, the FCA published Consultation Paper 21/36 ‘A new Consumer Duty – Feedback to CP21/13 and further consultation (CP21/36). CP21/36 follows Consultation Paper 21/13: A new Consumer Duty (CP21/13) which the FCA published in May. In CP21/13 the FCA set out a package of proposals for a ‘Consumer Duty’ consisting of: A … Continue Reading

FCA proposes stronger requirements on oversight of appointed representatives

On 3 December 2021, the FCA published Consultation Paper 21/34 ‘Improving the Appointed Representatives regime’ (CP21/34). On the same date HM Treasury issued a call for evidence on how market participants use the appointed representatives (ARs) regime; how effectively the regime works in practice; potential challenges to the safe operation of the regime; and possible … Continue Reading

Speech by Mairead McGuinness: Structured Dialogue with the ECON Committee in the European Parliament

On 3 December 2021, the European Commission published the opening remarks made by Mairead McGuiness at the Structured Dialogue with the ECON Committee in the European Parliament. Among others things the remarks mention that: An extension of the equivalence decision for UK CCPs will be proposed early in 2022. The goal is to set up … Continue Reading

FCA PS21/20 ‘Changes to UK MiFID’s conduct and organisational requirements’

On 30 November 2021, the Financial Conduct Authority (FCA) published Policy Statement 21/20 ‘Changes to UK MiFID’s conduct and organisational requirements’ (PS21/20). In PS21/20 the FCA sets out its final policy position and rules on changes to the research rules and the removal of best execution reporting in Regulatory Technical Standards (RTS) 27 and 28. … Continue Reading

FSB report on good practices for Crisis Management Groups

On 30 November 2021, the Financial Stability Board (FSB) issued a report on good practices for Crisis Management Groups (CMGs). The report sets out good practices that have helped CMGs to enhance preparedness for the management and resolution of a cross-border financial crisis affecting a global systemically important bank (G-SIB) consistent with the FSB’s Key … Continue Reading
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