Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: UK Developments

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FCA Publishes “Dear CEO” Letter on Cryptoassets and Financial Crime

Posted in Digital Assets and Virtual Currencies, Financial Markets, UK Developments
The UK Financial Conduct Authority (FCA) has published a “Dear CEO” letter dated June 11, on cryptoassets and financial crime. The purpose is to ensure that banks adequately manage the financial crime risks associated with cryptoassets. The FCA defines cryptoassets as any publicly available medium of exchange that features a distributed ledger and a decentralized… Continue Reading

FCA Publishes Findings From Its Review of Automated Investment Services

Posted in Financial Markets, UK Developments
On May 21, the UK Financial Conduct Authority (FCA) published a webpage on its findings from its review of firms offering automated investment services. The aim of the review was to monitor developments in financial innovation to help inform the FCA’s regulatory strategy, as set out in its 2017/18 Business Plan. The FCA reviewed the… Continue Reading

Treasury Committee’s Virtual Currencies Inquiry Publishes FCA and Bank of England Evidence

Posted in Digital Assets and Virtual Currencies, UK Developments
On May 22, the UK’s House of Commons Treasury Committee (Treasury Committee) updated its webpage on its inquiry into what it refers to as “digital currencies.” The webpage now provides links to written evidence the Treasury Committee has received from the UK Financial Conduct Authority (FCA) and the Bank of England (BoE) in which they… Continue Reading

US and UK Announce New Financial Regulatory Working Group

Posted in Brexit, Brexit/UK Developments, Financial Markets, UK Developments
On April 19, HM Treasury and the US Treasury Department published a joint statement announcing the formation of a US-UK Financial Regulatory Working Group (Working Group). The joint statement explains that Brexit provides an opportunity for the Working Group to formalize existing US-UK regulatory cooperation. The Working Group will include staff from the respective treasury… Continue Reading

FCA Adds New Interactive Tools to Asset Management Authorization Hub

Posted in Financial Markets, UK Developments
On April 20, the UK Financial Conduct Authority (FCA) updated its asset management authorization hub (Hub), which launched on October 16, 2017, as detailed in the Corporate & Financial Weekly Digest edition of October 20, 2017. The updated Hub includes a number of new interactive tools, complementing existing ones, to support firms through the regulatory… Continue Reading

FCA and PRA Publish 2018/19 Business Plans

Posted in UK Developments
On April 9, the UK Financial Conduct Authority (FCA) published its business plan for 2018/19. The business plan divides key priorities for the FCA over the coming year into three main areas: (1) the United Kingdom’s withdrawal from the European Union (Brexit); (2) cross-sector priorities; and (3) sector-specific priorities. The FCA’s business plan anticipates that… Continue Reading

FCA Publishes Statement Regarding the Requirement for Firms Offering Cryptocurrency Derivatives To Be Authorized

Posted in Digital Assets and Virtual Currencies, UK Developments
On April 6, the UK Financial Conduct Authority (FCA) published a statement on the requirement that firms trading in cryptocurrency derivatives may need to be authorized. The statement confirms that performing activities or providing services that amount to regulated activities in relation to derivatives are likely to require FCA authorization when performed in relation to… Continue Reading

FCA Adopts Senior Managers Regime for Its Own Senior Management

Posted in UK Developments
The UK Financial Conduct Authority (FCA) has published a document setting out its intention to self-apply the principles of the Senior Managers Regime (SMR) to strengthen transparency and “reinforce the standards,” noting that certain differences in the application of the principles are inevitable due to the FCA’s status as a regulatory authority and public body,… Continue Reading

FCA Publishes Changes Affecting Authorized Fund Managers and Proposes Further Changes

Posted in UK Developments
On April 5, the UK Financial Conduct Authority (FCA) published a policy statement with the final rules from its consultation paper 17/18 on asset management market study remedies and changes to the FCA Handbook. The policy statement announces the following prominent changes, among others: Authorized Fund Managers (AFMs) must assess the overall value delivered to… Continue Reading

House of Commons Committee Publishes Report on Post-Brexit UK-EU Relationship

Posted in Brexit, Brexit/UK Developments, UK Developments
On April 4, the House of Commons Exiting the European Union Committee published a report on the future UK/EU relationship following the United Kingdom’s withdrawal from the European Union. The report examines existing EU relationships with Canada, Ukraine, Switzerland, Norway and Turkey, the impact of trading on World Trade Organization terms (i.e., without a trading… Continue Reading

FCA Welcomes Agreement on Terms of Brexit Implementation Period; BoE Announces “Dear CEO” Letters and PRA Policy Statements

Posted in Brexit, Brexit/UK Developments, UK Developments
On March 28, the UK Financial Conduct Authority (FCA) published a statement on the withdrawal of the United Kingdom from the European Union (Brexit) following UK-EU agreement in relation to aspects of the transition period—notably the end date for the transition period of December 31, 2020.… Continue Reading

ESMA Further Updates Its Q&As on the Benchmarks Regulation

Posted in Brexit, Brexit/UK Developments, EU Developments, Financial Markets, UK Developments
On March 22, the European Securities and Markets Authority (ESMA) updated its Q&As on the European Union (EU) Benchmarks Regulation (BMR). The Q&As aim to promote common supervisory approaches and practices in the day-to-day application of the BMR. The updated Q&As on the BMR add one new question and answer which considers the application of… Continue Reading

FMSB Releases Draft Standard for Compensating Trade Errors

Posted in Financial Markets, UK Developments
On March 20, the Fixed Income, Commodities and Currency Markets Standards Board (FMSB) published a draft of its transparency standard on Secondary Market Trading Error Compensation, setting out expected behaviors for the payment of compensation for trading errors. The transparency standard proposes three methods, subject to these complying with applicable local law, for paying compensation… Continue Reading

UK Government Launches Fintech Sector Strategy

Posted in Digital Assets and Virtual Currencies, Financial Markets, UK Developments
On March 22, the UK government held its second annual International Fintech Conference. The Conference forms part of the UK’s plans to maintain its world leading position in technology-enabled innovation in financial services (FinTech). The Conference follows the launch of the European Commission’s FinTech Action Plan, further details of which are available in the Corporate… Continue Reading

UK Government and EC Publish Draft UK/EU Withdrawal Agreement

Posted in Brexit, Brexit/UK Developments, EU Developments, UK Developments
On March 19, the UK government and the European Commission (EC) published a draft withdrawal agreement (Latest Draft Agreement) which includes the legal text agreed by negotiators on the transition period following the UK’s withdrawal from the European Union (EU).… Continue Reading

FCA Launches Survey of Firms that Passport Into the UK

Posted in Brexit, Brexit/UK Developments, Financial Markets, UK Developments
On March 9, the UK Financial Conduct Authority (FCA) launched a short online survey for firms providing cross-border services into the UK from other European Union/European Economic Area (EEA) jurisdictions (“passporting”), or marketing funds in the UK. The survey follows the UK government’s December 2017 announcement that, if necessary, it will legislate to provide a… Continue Reading

FCA Publishes Webpage on Review of Closet Trackers

Posted in Financial Markets, UK Developments
On March 14, the UK Financial Conduct Authority (FCA) published a webpage in relation to its review of potential closet tracker funds and closet constrained funds. The review forms part of the FCA’s supervision to protect investors and maintain a competitive market. On its webpage, the FCA explains that both types of funds look like… Continue Reading

FCA Webpage on Capital Requirements Adds Important Transitional Arrangement

Posted in UK Developments
On March 5, the UK’s Financial Conduct Authority (FCA) published a webpage explaining that Article 493 of the Capital Requirements Regulation (CRR) has been updated by Article 1(2) of the IFRS 9 Regulation (an International Financial Report Standard promulgated by the International Accounting Standards Board). The CRR now incorporates a transitional arrangement,  allowing firms such… Continue Reading

UK Government Guarantees Gibraltar Financial Services Firms’ Access to UK Markets

Posted in UK Developments
On March 8, the UK government’s Department for Exiting the European Union (DExEU) published a statement guaranteeing Gibraltar financial services firms with continued access to UK markets from now until 2020. DExEU goes on to state that, in the meantime, the UK government will work closely with the government of Gibraltar to design a replacement… Continue Reading

FCA Confirms Amendment to the LEI Validation Rule Effective March 2018

Posted in UK Developments
On March 2, the UK’s Financial Conduct Authority (FCA) updated its webpage for firms subject to transaction reporting obligations under the revised Markets in Financial Instruments Directive. The European Securities and Markets Authority’s (ESMA) statement on December 20, 2017, regarding transition measures (for further information please see the January 5 edition of Corporate & Financial… Continue Reading