Global Financial Regulatory Blog

Tag Archives: FCA

FCA Recommends Measures Encouraging Diversity and Inclusion in Financial Services

By David Berman, Sarah Gadd, Nicola Higgs, Rob Moulton, Becky Critchley, and Nell Perks The FCA’s latest report into D&I highlights the need for additional metrics, social mobility, firm culture, staff development, data quality, and systematic strategies. In 2021 and 2022, the FCA carried out a survey of firms in respect of their approach to … Continue Reading

10 Key Focus Areas for UK-Regulated Financial Services Firms in 2023

Monitoring the progress of the Financial Services and Markets Bill and regulatory divergence between the UK and the EU will continue as a key theme in 2023.  The Financial Services and Markets Bill leaves a significant amount of the essential regulatory detail to be developed later by HM Treasury (through regulations), followed by development of … Continue Reading

FCA Issues Final Notice to Former Banking CEO Over Anti-Money Laundering Failures

The case provides instructive practical examples of the “reasonable steps” companies can take according to the FCA and a reminder of the FCA’s cultural expectations of CEOs. By David Berman, Jonathan Ritson-Candler, and Sean Wells On 16 November 2022, the FCA issued a final notice (Final Notice) to the former CEO of Sonali Bank (UK) … Continue Reading

FCA Proposes New Labelling and Disclosure Rules to Combat Greenwashing in the UK

The FCA hopes the proposals will protect consumer trust in ESG-related financial products and help consumers navigate the increasingly complex ESG-related financial market. By Paul A. Davies, Nicola Higgs, Michael D. Green, James Bee, and Anne Mainwaring On 25 October 2022, the UK’s Financial Conduct Authority (FCA) issued a consultation paper (the Consultation Paper) on Sustainability Disclosure Requirements (SDR) … Continue Reading

Reducing Socioeconomic Bias in the UK Financial Services Sector: Emerging Best Practice

The Financial Services Skills Commission has issued an insight paper outlining how companies can collect and evaluate data on employees’ socioeconomic backgrounds. By David Berman, Nicola Higgs, Rob Moulton, and Dianne Bell Socioeconomic backgrounds of employees and socioeconomic diversity at senior levels across the UK financial services industry is beginning to feature more prominently in … Continue Reading

Major Reforms to UK Secondary Capital Raising Processes

The landmark UK Secondary Capital Raising Review Report takes a holistic approach in making bold and comprehensive recommendations to improve the UK secondary capital raising processes and ecosystem. By James Inness, Anna Ngo, Ryan Benedict, and Johannes Poon On 19 July 2022, HM Treasury published the UK Secondary Capital Raising Review Report (the Report) that … Continue Reading

FCA Proposes to Unify the Listing Regime for Commercial Companies Under a Single Listing Segment

The regulator continues its Primary Markets Effectiveness Review to promote the competitiveness of a UK listing. By Chris Horton, James Inness, Anna Ngo, and Johannes Poon On 26 May 2022, the FCA published a discussion paper (DP22/2) to seek further views on how to make the UK listing regime more effective, easier to understand, and … Continue Reading

FCA’s 2022/23 Business Plan: Key Highlights

As the FCA’s remit continues to grow, the regulator pledges flexibility in the face of global financial and geopolitical headwinds. By Rob Moulton, Anne Mainwaring, Jaime O’Connell, and Dianne Bell On 7 April 2022, the FCA released its new Business Plan as part of a package including  a three-year strategy document setting out the outcomes … Continue Reading

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

UK to Regulate Cryptoasset Promotions

HM Treasury has confirmed that it will bring certain unregulated cryptoassets within scope of the financial promotions regime. By Stuart Davis, Rob Moulton, and Charlotte Collins On 18 January 2022, the UK government confirmed its intention to bring the promotion of certain cryptoassets into scope of regulation. HM Treasury has been considering for some time … Continue Reading

French and Dutch Regulators Propose Tighter Supervision of Cross-Border Retail Activities

The regulators suggest improvements to the supervision of firms passporting retail products and services in the EU. By Rob Moulton, Thomas Vogel, and Charlotte Collins The French and Dutch financial services regulators (the AFM and the AMF) have published a joint position paper on strengthening conduct supervision of cross-border retail financial services. The regulators are … Continue Reading

10 Key Focus Areas for UK-Regulated Financial Services Firms in 2022

This annual publication outlines some of the primary focus areas in 2022 for UK-regulated financial services firms. There has been a marked shift away from dealing with immediate post-Brexit priorities to more fundamental consideration of the direction of travel of UK financial services regulation, and this is borne out across many of the topics covered … Continue Reading

Review of UK Appointed Representatives Regime to Increase Burden on Principal Firms

UK regulators are considering how they can strengthen the regime to enhance standards and reduce risk. By Nicola Higgs and Charlotte Collins On 3 December 2021, the FCA published a Consultation Paper (CP21/34) on changes to its rules regarding the Appointed Representatives (AR) regime. HM Treasury simultaneously published a Call for Evidence, seeking views on … 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

Private Bank Briefing – September 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 Q3 2021. In this edition, we include a summary of the latest sustainable finance developments, and pinpoint areas of post-Brexit regulatory divergence in relation … Continue Reading

FCA Proposes Enhanced Disclosures on Diversity and Inclusion for Listed Companies

Proposals reflect growing investor focus on the ESG performance of listed companies. By Chris Horton, James Inness, Rob Moulton, Anna Ngo, and Johannes Poon The UK Financial Conduct Authority (FCA) has launched a consultation setting out proposed changes to its Listing Rules (LRs) and Disclosure Guidance and Transparency Rules (DTRs). The proposals seek to: (i) … 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

FCA Consults on Post-Brexit Changes to PRIIPs Regulation

UK rules will diverge from the much-criticised EU framework. By Nicola Higgs and Charlotte Collins On 20 July 2021, the FCA published a Consultation Paper (CP21/23) on amending the UK PRIIPs Regulation. The FCA has long held concerns about the PRIIPs framework, and pre-Brexit had been heavily involved in efforts to persuade EU lawmakers to … Continue Reading

FCA Seeks to Improve Quality of ESG Fund Disclosures

FCA has published guiding principles on the design, delivery, and disclosure of ESG and sustainable investment funds. By Nicola Higgs, David Berman, Paul Davies, Anne Mainwaring, and Charlotte Collins On 19 July 2021, the FCA published a letter sent to chairs of authorised fund managers, which sets out the regulator’s expectations regarding disclosures by funds … 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
LexBlog