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UK Government and Regulators Launch SMCR Review

The tone of the papers suggests that a fundamental reform of the Regime will be unlikely. 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...more

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. On 14 February 2023, HM Treasury published its consultation and accompanying draft...more

Consumer Duty Update: FCA Issues Dear CEO/Director Letters Setting Priorities for Sectors

The letters ask senior management to prioritise implementing the Duty. On 3 February 2023, the FCA published Dear CEO/Director letters underscoring the immediate (i.e., during the implementation period up until 31 July...more

FCA Implements Strategies to Clamp Down on Illegal Social Media Financial Promotions

The regulator described the steps it is taking to increase scrutiny of advertisements about financial products and services on social media platforms. On 3 February 2023 the FCA published an analysis of its financial...more

The “Edinburgh Reforms”: Timetable of Key Changes

The timetable sets out three tranches of extensive regulatory changes to UK and EU law in 2023 and 2024. The “Edinburgh Reforms”, a series of announcements made on 9 December 2022 by the Chancellor of the Exchequer, set...more

The FCA’s Approach to Non-Financial Misconduct - A Further Twist

The FCA stated that the perpetrator’s character is key to non-financial misconduct investigations, which suggests a mismatch with recent case law. In last year’s Frensham case, the Upper Tribunal considered how relevant...more

FCA Recommends Measures Encouraging Diversity and Inclusion in Financial Services

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...more

The FCA’s Approach to Non-Financial Misconduct - Latest Cases and Observations

The FCA has long since regarded non-financial misconduct as potentially relevant to the integrity and reputation elements of a regulated individual’s fitness and propriety. While not formally defined, non-financial misconduct...more

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. Socioeconomic backgrounds of employees and socioeconomic...more

FCA Finalises Rules to Improve Transparency Around Diversity of Boards and Executive Management

The new rules provide issuers with flexibility to report on representation of women by reference to either gender identity or sex. On 20 April 2022, the FCA published its final policy decision on the proposals set out in...more

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. On 7 April 2022, the FCA released its new Business Plan as part of a package including...more

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

The consultation response heralds innovation-friendly reform to the UK wholesale capital markets regime. On 1 March 2022, HM Treasury published its response to the July 2021 consultation on the Wholesale Markets Review...more

UK to Regulate Cryptoasset Promotions

HM Treasury has confirmed that it will bring certain unregulated cryptoassets within scope of the financial promotions regime. On 18 January 2022, the UK government confirmed its intention to bring the promotion of certain...more

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. The French and Dutch financial services regulators (the AFM and the AMF) have published a joint position...more

UK FCA Publishes Detailed Plans for New Consumer Duty

FCA makes clear that it expects a cultural shift in how firms focus on consumers. On 7 December 2021, the FCA published its second Consultation Paper (CP21/36) on introducing a new Consumer Duty....more

Recording Requirements for Mobile Devices, Electronic Communications, and Videoconferencing

MiFID II introduced obligations to record telephone conversations and any electronic communications that are intended to lead to a transaction. Records must be kept for at least five years. The COVID-19 pandemic, which...more

Court of Appeal Takes Expansive View of Regulated “Arranging” Activities

This decision shines a spotlight on the activities of unregulated introducers. In a recent decision, the Court of Appeal upheld the FCA’s findings that unregulated introducers had been carrying on regulated activities...more

Private Bank Briefing - September 2021

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...more

FCA Proposes Enhanced Disclosures on Diversity and Inclusion for Listed Companies

Proposals reflect growing investor focus on the ESG performance of listed companies. The UK Financial Conduct Authority (FCA) has launched a consultation setting out proposed changes to its Listing Rules (LRs) and...more

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. The UK, acting through the Financial Conduct Authority (FCA), will implement a new SPAC listing regime from...more

HM Treasury Initiates Post-Brexit Review of the UK’s AML and CTF Regime

Recent publications come in light of UK’s “greater autonomy” in setting AML and CTF regulations following Brexit. Background to the review - On 22 July 2021, HM Treasury published both a Call for Evidence on a review...more

FCA Business Plan 2021/22: Firms Should Expect a More Assertive FCA

FCA signals that it aims to take a tougher stance. The FCA published its Business Plan for 2021/22 on 15 July 2021. The Plan, and accompanying remarks made by Nikhil Rathi, FCA CEO, suggest that the FCA intends to take a...more

ESMA Publishes Guidance on SPACs

ESMA warns against investor protection risks and provides guidance on expected disclosures. On 15 July 2021, ESMA published a statement on the prospectus disclosure and investor protection issues raised by special...more

ESMA Statement Warns on Payment for Order Flow

New ESMA guidance less strict than the established UK position on PFOF. On 13 July 2021, ESMA published a statement on payment for order flow (PFOF), the practice of brokers receiving payments from third parties for...more

UK Regulators Launch Discussion on Diversity and Inclusion

Discussion Paper opens debate on potential new rules to improve diversity in financial services. On 7 July 2021, the FCA, the PRA, and the Bank of England published a joint Discussion Paper on diversity and inclusion in...more

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