Global Financial Regulatory Blog

Category Archives: Markets and Investments

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Wholesale Markets Review Consultation Response Aims for “Tailored” UK Approach

The consultation response heralds innovation-friendly reform to the UK wholesale capital markets regime. By Rob Moulton and Dianne Bell On 1 March 2022, HM Treasury published its response to the July 2021 consultation on the Wholesale Markets Review after considering the feedback received. The consultation response sets out changes that are expected to “liberate businesses … Continue Reading

UK Government Announces Fundamental Overhaul of the UK Prospectus Regime

The changes indicate a more dynamic and flexible UK prospectus regime with the FCA to play a central role through enhanced rule-making powers. By Chris Horton, James Inness, Anna Ngo, and Johannes Poon On 1 March 2022, the UK government (through HM Treasury (HMT)) announced the outcome of its consultation to reform the UK prospectus … Continue Reading

Top 5 Focus Areas for UK Equity Capital Markets in 2022

Broad reform to listing regimes, growing ESG scrutiny, and increasing retail participation in fundraisings are among the areas to watch. By Chris Horton, James Inness, Anna Ngo, and Johannes Poon Last year was memorable for UK equity capital markets (ECM). The IPO market was at its busiest since 2014, and we encountered innovative deal structures … Continue Reading

China Securities Regulatory Commission Proposes Major Expansion of Shanghai London Stock Connect Programme

The expansion would include Shenzhen Stock Exchange and potentially European stock exchanges, and would permit overseas issuers to raise capital in China through CDR listings. By Chris Horton, James Inness, Anna Ngo, Terris Tang, Cathy Yeung, and Johannes Poon On 17 December 2021, the China Securities Regulatory Commission (CSRC) launched a consultation that proposes a … Continue Reading

FCA Confirms New Rules to Remove Barriers to Listing

The new rules aim to make London a more attractive listing venue for founder-led and other innovative IPO candidates. By Chris Horton, James Inness, Anna Ngo, and Johannes Poon On 2 December 2021, the UK Financial Conduct Authority (FCA) published a Policy Statement (PS21/22) confirming the following key changes to its listing rules that took … Continue Reading

UK to Adopt a New SPAC Listing Regime From 10 August 2021

The revised criteria allow UK-listed SPACs to avoid a suspension of their shares when announcing a de-SPAC deal. By Nicola Higgs, David Berman, Chris Horton, James Inness, Rob Moulton, Anna Ngo, and Charlotte Collins The UK, acting through the Financial Conduct Authority (FCA), will implement a new SPAC listing regime from 10 August 2021. This follows a consultation launched in April … Continue Reading

ESMA Publishes Guidance on SPACs

ESMA warns against investor protection risks and provides guidance on expected disclosures. By Nicola Higgs, Chris Horton, James Inness, Rob Moulton, Oliver Seiler, Isabella Porchia, and Charlotte Collins On 15 July 2021, ESMA published a statement on the prospectus disclosure and investor protection issues raised by special purpose acquisition companies (SPACs). SPAC activity in the … Continue Reading

ESMA Statement Warns on Payment for Order Flow

New ESMA guidance less strict than the established UK position on PFOF. By Rob Moulton, Axel Schiemann, Thomas Vogel, and Charlotte Collins On 13 July 2021, ESMA published a statement on payment for order flow (PFOF), the practice of brokers receiving payments from third parties for directing client order flow to these third parties as … Continue Reading

Private Bank Briefing – June 2021

By Rob Moulton, Nicola Higgs, Anne Mainwaring, and Charlotte Collins The latest edition of our Private Bank Briefing provides a roundup of legal and compliance issues impacting private banks and their clients from Q2 2021. In this edition, we cover sustainable finance developments, the regulators’ expectations regarding operational resilience and outsourcing, and the PRA’s plans … Continue Reading

SEC Staff Issues No-Action Relief to Broker-Dealers From Reg BI and Form CRS Obligations Related to Certain Family Offices

The no-action relief applies to family offices with at least US$50 million in total assets (Institutional Family Offices) and requires broker-dealers seeking to rely on the relief to establish and maintain specific additional policies and procedures. By Dana G. Fleischman, Stephen P. Wink, Naim Culhaci, and Deric Behar On December 23, 2020, the Staff of … Continue Reading

Podcast – Brexit & Financial Services: Preparing for the End of the Transition Period

FCA’s Stephen Hanks discusses onshoring and how to ensure regulatory compliance before the year’s end. With the end of the Brexit transition period looming, many financial services firms are asking what they need to do between now and the end of the year to ensure regulatory compliance. In this episode of Connected With Latham, Anne … Continue Reading

UK Chancellor Outlines Future for Financial Services Post-Brexit

Equivalence decisions for EEA states, green finance and fintech initiatives are at the forefront of the UK government’s priorities. By Rob Moulton, Anne Mainwaring, and Anna Lewis-Martinez On 9 November 2020, the UK Chancellor of the Exchequer, Rishi Sunak, delivered a statement setting out plans for the start of a new chapter for UK financial … Continue Reading

US Department of Labor Puts ESG Investing on Ice

In its finalized rule amending ERISA, the DOL makes financial factors paramount in a fiduciary’s responsibility to investors. By Paul A. Davies, Nicola Higgs, Kristina S. Wyatt, and Deric Behar On October 30, 2020, the US Department of Labor (DOL) published Financial Factors in Selecting Plan Investments (the Rule) and a related Fact Sheet, a … Continue Reading

HM Treasury Policy Statement Addresses Pressing Concerns With PRIIPs Regulation

The UK government has proposed amendments to the UK PRIIPs regime with performance information in the KID to differ from the EU “performance scenario” requirement. By Nicola Higgs and Anna Lewis-Martinez On 30 July 2020, HM Treasury published a policy statement on amendments to the Packaged Retail Investment and Insurance-based Products (PRIIPs) Regulation. The policy … Continue Reading

European Commission Proposes Changes to MiFID II Due to COVID-19

Many of the wide ranging amendments address the perceived barriers MiFID II introduced in capital markets and are likely to be welcomed by industry. By Nicola Higgs, Anne Mainwaring, Gabriel Lakeman and Anna Lewis-Martinez The European Commission (the Commission) has adopted a legislative proposal for a directive amending Directive 2014/65/EU on markets in financial instruments … Continue Reading

SEC Proposal: Will You Still Be a 13F Filer?

The SEC proposes a significant increase in the 13F reporting threshold from US$100 million to US$3.5 billion. By Stephen P. Wink, Naim Culhaci, Jacqueline Marie Rugart, and Deric Behar On July 10, 2020, the US Securities and Exchange Commission (SEC) released a proposed rule amendment to increase the Form 13F reporting threshold from US$100 million to … Continue Reading

European Parliament Approves CRR “Quick Fix” to Mitigate Economic Consequences of COVID-19

The measures grant relief for EU banks to enhance bank lending to companies and households. By Axel Schiemann and Dominik Schöneberger On 18 June 2020, the European Parliament approved the so-called CRR “quick fix” to Regulation (EU) 575/2013 (Capital Requirement Regulation (CRR)) and Regulation 2019/876 (Capital Requirement Regulation 2 (CRR2)) to mitigate the economic consequences … Continue Reading

European Commission Report Assesses AIFMD Application and Scope

The European Commission has published its long awaited report that assesses the application and scope of AIFMD. By Carl Fernandes and Kishore Bhindi On 10 June 2020, the European Commission published a report assessing the application and scope of the Alternative Investment Fund Managers Directive (AIFMD). The report was prepared pursuant to Article 69 of … Continue Reading

MiFID’s Transparency Rules: ESMA Confirms Equivalence of Numerous Non-EU Venues

Implications for users of third-country trading venues as ESMA confirms the list of venues who meet the criteria in its updated opinions on transparency and position limits. By Rob Moulton and Anna Lewis-Martinez On 3 June 2020, ESMA published updated versions of its opinions on post-trade transparency and position limits for third-country trading venues (TCTVs) … Continue Reading

Staying Inside — FCA’s New Guidance on Market Conduct During COVID-19

New guidance for issuers and market participants on capital raising events and alternative working arrangements, and additional time allowed for filing half-yearly financial reports. By James Inness, Nicola Higgs, Connor Cahalane, and Anna Lewis-Martinez On 27 May 2020, the FCA published its Primary Market Bulletin 28, which provides an update for issuers on temporary relief … Continue Reading

EU Short-selling Bans Lifted

While regulators in the EU have lifted the temporary COVID-19-related short-selling bans, they will monitor the markets and impose further restrictions if required. By Carl Fernandes and Sherryn Buehlmann Regulators in Austria, Belgium, France, Greece, Italy, and Spain announced that the temporary short-selling bans imposed in those jurisdictions expired on 18 May 2020 at 11.59pm. … Continue Reading

SEC and FINRA Take Action to Address COVID-19 Impacts

In the wake of COVID-19, the SEC and FINRA are taking steps to support markets and market participants. By Dana G. Fleischman, Stephen P. Wink, and Deric Behar The US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc. (FINRA) continue to monitor and address ongoing impacts of COVID-19 to US capital … Continue Reading

Federal Reserve Provides Additional Resources for Financial Markets Participants

Further economic measures provide support for small and mid-sized businesses, as well as state and local economies facing pandemic hardships. By Alan W. Avery, Pia Naib, and Deric Behar The Federal Reserve, in its continuing efforts to safeguard financial markets, provide stability to the financial system, and support the flow of credit in the economy, … Continue Reading
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