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UK Financial Services Regulators Warn Firms About Risks of Exposure to Crypto-assets

Both the FCA and the PRA have written to firms to warn about certain risks associated with exposures to crypto-assets, and to advise firms of the measures they should consider implementing to mitigate such risks. The FCA...more

Private Banking Newsletter: Issues Impacting the Private Bank Sector

The FCA’s Business Plan for 2018/19, published on 9 April 2018, outlined key priorities for the upcoming year. Although the Business Plan revealed that the FCA’s Brexit-related workload will mean a dearth of new initiatives,...more

The MiFID II Inducements Regime

MiFID II contains a number of inducements requirements, including rules relating to conflicts of interest, research, hospitality, corporate access, and payment for order flow. This Client Alert outlines these requirements and...more

Commission Publishes Study of EU Market in Retail Investment Products

The Commission shares the results of a 2017 study into the current functioning of European markets for retail investment products. Key Points: ..The European Commission’s Final Report is the result of examining a broad...more

Cryptocurrencies and Prepaid Cards Face Closer AML Regulation in the EU

New EU anti-money laundering measures have been approved by European legislators. The European Parliament and Council have finally signed off on the text of the fifth Anti-Money Laundering Directive (known as MLD5)....more

Opening Up Access to UK Payment Schemes

Bank of England announces that, for the first time, a non-bank payment services provider has accessed the UK payments system directly. The Bank of England has announced that a regulated payment services provider (PSP) has...more

Next Steps in the Asset Management Market Study

FCA publishes final rules and further consultation on outstanding remedies under its asset management market study. Key Points: ..The FCA has published a Policy Statement (PS18/8) setting out final rules and guidance...more

FCA Statement on Cryptocurrency Derivatives

FCA warns providers of cryptocurrency derivatives of their regulatory obligations. The UK Financial Conduct Authority (FCA) has issued a statement reminding businesses offering cryptocurrency derivatives of the requirement...more

First Use of ESMA Temporary Product Intervention Measures

ESMA to introduce measures to restrict the provision of CFDs, and prohibit the provision of binary options, to retail investors in the EU. The European Securities and Markets Authority (ESMA) has announced the first use of...more

FCA Proposes New Guidance on Financial Crime Systems and Controls

The FCA is proposing to add a new chapter on insider dealing and market manipulation to its Financial Crime Guide. Key Points: ..The FCA proposes to add a new Chapter 8 to Part 1 of its Financial Crime Guide, outlining...more

March 2018 Private Banking Newsletter: Issues Impacting the Private Bank Sector

On 23 February 2018, the FCA published a Policy Statement with new perimeter guidance on what amounts to a personal recommendation in relation to advising on retail investments. The guidance came into effect on the same...more

UK Government’s First FinTech Sector Strategy Launched at the International Fintech Conference

The Strategy emphasises the UK government’s continued push to create a world-leading FinTech sector. At the second International Fintech Conference held on 22 March 2018, Philip Hammond, Chancellor of the Exchequer,...more

Transforming Culture in Financial Services - The FCA Renews Its Approach

New FCA Discussion Paper demonstrates how the regulator’s thinking in relation to culture has evolved. Introduction - In Discussion Paper (DP) 18/2, the FCA has taken an unusual approach to a topic that has received...more

FCA Sets Expectations on Algorithmic Trading

The FCA has published a report, clarifying its expectations of firms that develop or use algorithmic trading strategies. On 12 February 2018, the FCA published a report on algorithmic trading compliance in wholesale...more

Swiss Regulator Publishes ICO Guidelines

The Swiss Financial Market Supervisory Authority (FINMA) has published a set of guidelines, setting out how it intends to apply its financial markets legislation in the context of initial coin offerings (ICOs). Despite the...more

Global Ambitions for the FCA’s Sandbox

The FCA seeks industry feedback to capitalise on global regulatory sandbox trend. The regulatory sandbox was pioneered by the Financial Conduct Authority (FCA) back in November 2015 — a “safe space” in which businesses can...more

What Next for Distributed Ledger Technology?

The FCA has published a Feedback Statement on Distributed Ledger Technology, setting out its views and proposed next steps. Key Points: ..Respondents to the FCA’s initial Discussion Paper were supportive of the FCA...more

FCA to Take a Closer Look at ICOs

Following on from the Financial Conduct Authority’s (FCA’s) consumer warning on Initial Coin Offerings (ICOs) in September, the FCA has announced a deeper examination of this area in its Feedback Statement on Distributed...more

FCA Confirms Reform to the UK IPO Process

The new rules are designed to improve the availability of information during the UK IPO process. Key Points: ..New rules will be introduced from 1 July 2018 to change the timing and sequencing of the availability of...more

ECB Announces Support for Fintech Bank Applicants

On 15 November 2017, the European Central Bank (ECB) published a newsletter containing an article on how the ECB is dealing with the increasing number of fintech bank applications. The ECB is the banking supervisor, alongside...more

Regulatory Sandboxes - a Global Stocktake

Regulatory sandboxes are becoming a global trend, providing plenty of opportunities for innovative businesses. Pioneered in the UK as part of the Financial Conduct Authority’s (FCA) “Project Innovate”, a regulatory sandbox...more

ESMA Clarifies Third Country Transitionals Under the EU Benchmarks Regulation

ESMA has published a new Q&A clarifying the transitional arrangements for third country benchmarks under the EU Benchmarks Regulation (BMR). Key Points: ..Non-EEA benchmarks that are being used in the EEA before 1...more

MiFID II Research – Relief at Last?

US and EU authorities have finally moved to solve the cross-border issues arising from MiFID II rules on research unbundling. Key Points: - The US SEC has published three temporary “no action” letters, which are...more

The (Potentially) Long Arm of the SMCR

Firms will need to consider whether any individuals in group entities require approval as Senior Managers. Introduction - Much has already been written on the proposed extension of the Senior Managers & Certification...more

Policing the Robots — Robo-Advice Under MiFID II

Do robots give suitable advice? ESMA proposes updates to suitability guidelines to address robo-advice. Given the technological evolution of the advice market, firms offering a robo-advice service are faced with a...more

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