Global Financial Regulatory Blog

Tag Archives: UK

FCA Board Focuses on AI

A new publication from the UK’s financial regulator signals to firms that they should take steps to manage risks in the use of AI. By Stuart Davis, Fiona M. Maclean, Gabriel Lakeman, and Imaan Nazir The UK’s Financial Conduct Authority (FCA) has published its latest board minutes highlighting its increasing focus on artificial intelligence (AI), … Continue Reading

Pension Superfunds Return to the De-Risking Menu

The UK government has signalled the importance of introducing a permanent superfund regulatory regime. By Victoria Sander After the excitement around Clara-Pensions’ approval as a “superfund”, or pension consolidator, in late 2021, the market generally expected that other pension superfund structures would soon follow suit. Last year’s mini-budget and the ensuing liability-driven investment (LDI) crisis, … Continue Reading

The Edinburgh Reforms — Where Are We Now?

As the pace of reform increases, we take a look at key developments and the timeline ahead. Significant progress has been made on the Edinburgh Reforms since they were announced in December 2022, with developments gathering pace before the summer break. Given the breadth and speed of the reforms, now is a good time to … Continue Reading

UK Supreme Court Clarifies the Scope of the Quincecare Duty

The Court held that banks do not owe this duty to customers deceived into instructing their banks to transfer money to fraudsters. By Nell Perks and Callum Rodgers On 12 July 2023, the UK Supreme Court handed down its highly anticipated judgment in Philipp v. Barclays Bank UK PLC [2023] UKSC 25, allowing the appeal … Continue Reading

FCA Publishes Further Engagement Papers on Prospectus Reforms

The FCA reveals its initial thinking on the regulatory framework for primary multilateral trading facilities and public offer platforms. By Chris Horton, James Inness, Anna Ngo, and Johannes Poon On 13 July 2023, the FCA published its fifth and sixth engagement papers to solicit discussion and feedback on the regulation of public offer platforms and … Continue Reading

HM Treasury Publishes UK Investment Research Review’s Final Report

The Review recommends scrapping research unbundling, but also proposes a range of other changes to the UK research landscape. By Rob Moulton, Chris Horton, Sean Wells, Charlotte Collins, and Johannes Poon On 10 July 2023, HM Treasury published the final report produced by the independent UK Investment Research Review (Review). The Review was launched on … Continue Reading

FCA Publishes Final Guidance on the Trading Venue Perimeter

UK regulator follows the European Securities and Markets Authority in clarifying the scope of the trading venue perimeter. By Nicola Higgs and Sidhartha Lal On 5 July 2023, the FCA published its Policy Statement (PS23/11) containing final guidance on the trading venue perimeter, following its September 2022 consultation on the same matter. The new guidance … Continue Reading

HM Treasury Consults on Reforms to UK Anti-Money Laundering Supervision

The consultation sets out four potential models for reform, and also considers reform to sanctions supervision. By Rob Moulton, Jonathan Ritson-Candler, Thomas F. Lane, and Charlotte Collins On 30 June 2023, HM Treasury published a consultation on reforms to anti-money laundering (AML) and counter-terrorism financing (CTF) supervision in the UK. HM Treasury is consulting on … Continue Reading

The Consumer Duty — One Month to Go

With the implementation deadline looming, the FCA has set out some additional guidance for firms. By Nicola Higgs, Becky Critchley, Effie Stathaki, and Charlotte Collins With one month to go until the Consumer Duty (Duty) implementation deadline of 31 July 2023 (for new and existing products and services that are open for sale or renewal), … Continue Reading

FCA Consumer Duty Update: Assessing Fair Value

The FCA has published the findings from its review of firms’ fair value assessment frameworks and set out implementation priorities for firms. By David Berman, Nicola Higgs, Rob Moulton, Becky Critchley, and Charlotte Collins On 10 May 2023, the FCA published a speech by Sheldon Mills, FCA Executive Director, Consumers and Competition, on the countdown … Continue Reading

The FCA’s Consumer Duty — Determining “Material Influence”

The Consumer Duty applies to firms that materially influence consumer outcomes. By Becky Critchley and Effie Stathaki The Consumer Duty (Duty) (as set out in the FCA’s Policy Statement PS22/9 and guidance document FG22/5) will come into force at the end of July 2023. The Duty applies across the distribution chain – namely, to all … Continue Reading

FCA Publishes Business Plan for 2023/24

The Future Regulatory Framework and Consumer Duty will be key areas of focus for the coming year. By Rob Moulton, Nicola Higgs, David Berman, Becky Critchley, and Charlotte Collins On 5 April 2023, the FCA published its Business Plan for 2023/24. The Business Plan sets out a number of priority areas for the regulator, tied … Continue Reading

UK Government Kicks Off Investment Research Review

The tone of the Call for Evidence indicates the controversial research unbundling rules could be primed for reform. By Rob Moulton, Gary Whitehead, and Charlotte Collins On 3 April 2023, HM Treasury published a Call for Evidence as the first step in the independent review of investment research and its contribution to the competitiveness of … Continue Reading

UK Government Consults on Regulation of ESG Ratings Providers

The consultation considers what a potential regulatory regime would look like, and its proposed scope. By Nicola Higgs, Paul A. Davies, Becky Critchley, Anne Mainwaring, Ella McGinn, and Charlotte Collins On 30 March 2023, HM Treasury published a consultation on regulating ESG ratings providers, which ties in with and was published alongside the UK government’s … Continue Reading

UK Government and Regulators Launch SMCR Review

The tone of the papers suggests that a fundamental reform of the Regime will be unlikely. By Rob Moulton, David Berman, Jonathan Ritson-Candler, and Charlotte Collins On 30 March 2023, the PRA and the FCA published a joint Discussion Paper (FCA DP23/3 and PRA DP1/23) seeking feedback on the Senior Managers and Certification Regime (SMCR). … Continue Reading

HM Treasury Publishes Draft Legislation to Regulate BNPL Lending

A consultation that will remain open until 11 April 2023 offers further clarity on the proposals to regulate buy-now-pay-later products. By Rob Moulton, Becky Critchley, Ella McGinn, and Dianne Bell On 14 February 2023, HM Treasury published its consultation and accompanying draft legislation on the regulation of buy-now-pay-later (BNPL) lending. The consultation follows the proposals … Continue Reading

UK Government Releases Roadmap to Sustainable Investing

The roadmap introduces sustainability disclosure requirements for UK companies and reveals further developments in relation to a UK Green Taxonomy. By David Berman, Paul A. Davies, Nicola Higgs, Michael D. Green, Anne Mainwaring, and James Bee On 18 October 2021, the UK government released a report titled “Greening Finance: Roadmap to Sustainable Investing” (the Roadmap), which is intended to encourage UK businesses and … 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

FCA Proposes New Consumer Duty

The FCA is proposing to set higher expectations for firms operating in retail markets. By Andrea Monks, David Berman, Jon Holland and Charlotte Collins On 14 May 2021, the FCA published a Consultation Paper (CP21/13) on introducing a new Consumer Duty. This consultation is intended to fulfil the FCA’s new statutory obligation to consult on … Continue Reading

UK to Regulate Buy-Now-Pay-Later Market

The Woolard Review emphasises the urgency to bring all BNPL products under FCA supervision and sets out recommendations for the unsecured credit market. By Stuart Davis, Becky Critchley, and Anna Lewis-Martinez The UK government has announced that interest-free buy-now-pay-later (BNPL) credit agreements will be regulated by the FCA. Currently, the BNPL market operates under an … Continue Reading

PRA Publishes Findings on Its Evaluation of the SMCR

The PRA has released a largely positive report, along with nine follow-up actions and recommendations on the SMCR for PRA-regulated firms. By Rob Moulton, Katy Sanders, and Anna Lewis-Martinez The PRA reviewed the operation of the Senior Managers and Certification Regime (SMCR) against its original objectives and examined whether there have been any unintended consequences. … Continue Reading

Landmark Judgment Rules in Favour of Latham Client, Rothesay Life Plc

Court of Appeal sets out correct approach to transfer of long-term Insurance. Victoria Sander, Jon Holland, Alex Cox, and Duncan Graves Latham & Watkins has won an appeal on behalf of Rothesay Life Plc (Rothesay) in an unprecedented challenge to the High Court’s refusal to sanction the transfer of around 370,000 annuity policies in August … 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
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