A synopsis of the Financial Conduct Authority’s (FCA) latest news and publications issued in April and May 2018.
With GDPR and MiFID II processes now firmly embedded in our daily lives, many of our readers will look back at the months of April and May with a sense of relief.
Periodic Reporting - Ask Securities Lawyer 101Brenda Hamilton
Companies become subject to the SEC’s periodic reporting requirements a number of ways including by filing a registration under the Securities Act of 1933, as amended or pursuant to the Securities Exchange Act of 1934. The SEC periodic reporting rules require that publicly traded companies disclose a wealth of information to the public. Periodic reporting also requires that these reports… Read More
These amendments redefine the scope and administration of the Economic Substance regime in the UAE, subject to a retrospective effect from 1st January 2019.
Legal shorts 05.12.14 including Chancellor’s 2014 Autumn statement and FCA up...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Periodic Reporting - Ask Securities Lawyer 101Brenda Hamilton
Companies become subject to the SEC’s periodic reporting requirements a number of ways including by filing a registration under the Securities Act of 1933, as amended or pursuant to the Securities Exchange Act of 1934. The SEC periodic reporting rules require that publicly traded companies disclose a wealth of information to the public. Periodic reporting also requires that these reports… Read More
These amendments redefine the scope and administration of the Economic Substance regime in the UAE, subject to a retrospective effect from 1st January 2019.
Legal shorts 05.12.14 including Chancellor’s 2014 Autumn statement and FCA up...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Objectives & Agenda :
To know the background of Abu Dhabi Global Market (ADGM) and the kinds of business that can be set-up in ADGM. To understand the procedure for setting-up business in ADGM and the benefits of operating from ADGM. To analyse the restrictions placed on persons operating in ADGM. To know the rules governing ADGM and finally the webinar will cover the compliances that has to be done while carrying out operations in ADGM
Attached is the May 2021 publication of the Technical Brief for Investment Funds, a newsletter developed by the Loeb Smith Cayman Islands Investment Funds Technical Team. As regulatory compliance becomes increasingly a key focus for both Cayman investment funds and CIMA as regulator, this Technical Brief covers, among other things:
FATCA/CRS Summary and Update
Considerations for Directors of Cayman Regulated Open-ended Funds
Cayman Islands’ Rule on Cybersecurity for Regulated Entities
New Administrative Fines for breach of Regulatory Laws.
If you have any questions, please reach out to your usual Loeb Smith contacts or any member of our Investment Funds Technical Team shown in the Bulletin
Key Takeaways:
Common Issues in Transfer Pricing
Issues relating to Transactions and Specified Items
Issues relating to Comparable and Assesments
Issues arising pursuant to Covid-19
Public Company Reporting (Series: Securities Law Made Simple (Not Really) Financial Poise
Once public, a company is subject to a continuously evolving landscape of disclosure and reporting requirements. Recent disclosure developments have addressed everything from executive compensation to cybersecurity. In addition, the prevalence of social media has made it such that a company must now consider not only the nuances of what to disclose but also how to deliver that disclosure. Is your company tweeting its earnings reports; are you using your corporate Facebook page to make Regulation FD disclosures?
In this webinar our expert panel provides you with a high-level overview of key public company reporting and disclosure requirements, including the latest developments brought about by the Dodd-Frank Act, JOBS Act, FAST Act and, most recently, the SEC’s Disclosure Effectiveness Initiative, as well as provide you with tangible examples and practical advice on how to comply with the ever-changing means of delivering that disclosure.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/public-company-reporting-2020/
Willkie Farr & Gallagher Corporate Crime Bulletin September 2017Paul Feldberg
Welcome to Willkie Farr & Gallagher’s Corporate Crime E-Bulletin. This publication provides an update on recent developments in the UK and the US with respect to financial crime and regulatory enforcement, including bribery and corruption, fraud, sanctions, money laundering, market abuse and insider dealing.
Private Offering Exemptions and Private Placements (Series: Securities Law Ma...Financial Poise
The private capital markets have become an increasingly important source of funding for both private and public companies alike. Today total capital raised through private placements surpasses total capital raised in public offerings. What’s more, in recent years legislation like the JOBS Act has made a number of significant changes to laws and regulations governing private capital markets. Consequently, understanding the myriad private offering exemptions and how to properly conduct a private placement is crucial for not only for lawyers, but also for executives, managers, directors and anyone involved in corporate finance transactions.
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/private-offering-exemptions-and-private-placements-2020/
Prepared by CA Sandesh Mundra - An exhaustive presentation on Consolidation of Accounts covering the Standards - AS 21, AS23 and AS 27 with indepth analysis of the finer aspects involved.
Substance as an important element of tax planning and global trends in exchange of information.
CONTENT
-Information exchange: general facts.
-AEOI: brief chronology.
-AEOI: general ideas.
-AEOI: scheme.
-AEOI: specifics.
-Practical example: Cyprus.
-What is “substance” and where does it come from?
-Today`s substance requirements.
-Actions and measures, indicating “substance”.
-Issues to be considered during the obtainment of Cyprus tax residency certificate.
-Questions asked by tax authorities investigating into substance over form.
OmniPro\'s Company Law Spring Update 2011. Includes review of the European Communities (statutory Audit Regulations) 2010, Criminal Justice (Money Laundering & Terrorist Financing) Act 2010 & Multi-Unit Development Act 2010
In this edition of Regulatory Focus, Duff & Phelps provides a synopsis of the FCA's latest news and publications issued in May 2017.
Highlights include:
MiFID II Topics and Challenges
FCA's increased focus on cyber resilience
Guidance on the Criminal Finances Act 2017
Like the rest of the financial services industry, insurers are subject to increasingly complex and prescriptive regulations and standards. In the year ahead, insurers will need to focus on the new U.S.Department of Labor fiduciary standard, which is likely to have a significant effect on how insurance products are sold. Moreover, global developments, especially those related to the developing International Capital Standard, will require insurers to closely monitor – and ideally contribute to – official discussions about how globally active insurers should manage capital
Objectives & Agenda :
To know the background of Abu Dhabi Global Market (ADGM) and the kinds of business that can be set-up in ADGM. To understand the procedure for setting-up business in ADGM and the benefits of operating from ADGM. To analyse the restrictions placed on persons operating in ADGM. To know the rules governing ADGM and finally the webinar will cover the compliances that has to be done while carrying out operations in ADGM
Attached is the May 2021 publication of the Technical Brief for Investment Funds, a newsletter developed by the Loeb Smith Cayman Islands Investment Funds Technical Team. As regulatory compliance becomes increasingly a key focus for both Cayman investment funds and CIMA as regulator, this Technical Brief covers, among other things:
FATCA/CRS Summary and Update
Considerations for Directors of Cayman Regulated Open-ended Funds
Cayman Islands’ Rule on Cybersecurity for Regulated Entities
New Administrative Fines for breach of Regulatory Laws.
If you have any questions, please reach out to your usual Loeb Smith contacts or any member of our Investment Funds Technical Team shown in the Bulletin
Key Takeaways:
Common Issues in Transfer Pricing
Issues relating to Transactions and Specified Items
Issues relating to Comparable and Assesments
Issues arising pursuant to Covid-19
Public Company Reporting (Series: Securities Law Made Simple (Not Really) Financial Poise
Once public, a company is subject to a continuously evolving landscape of disclosure and reporting requirements. Recent disclosure developments have addressed everything from executive compensation to cybersecurity. In addition, the prevalence of social media has made it such that a company must now consider not only the nuances of what to disclose but also how to deliver that disclosure. Is your company tweeting its earnings reports; are you using your corporate Facebook page to make Regulation FD disclosures?
In this webinar our expert panel provides you with a high-level overview of key public company reporting and disclosure requirements, including the latest developments brought about by the Dodd-Frank Act, JOBS Act, FAST Act and, most recently, the SEC’s Disclosure Effectiveness Initiative, as well as provide you with tangible examples and practical advice on how to comply with the ever-changing means of delivering that disclosure.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/public-company-reporting-2020/
Willkie Farr & Gallagher Corporate Crime Bulletin September 2017Paul Feldberg
Welcome to Willkie Farr & Gallagher’s Corporate Crime E-Bulletin. This publication provides an update on recent developments in the UK and the US with respect to financial crime and regulatory enforcement, including bribery and corruption, fraud, sanctions, money laundering, market abuse and insider dealing.
Private Offering Exemptions and Private Placements (Series: Securities Law Ma...Financial Poise
The private capital markets have become an increasingly important source of funding for both private and public companies alike. Today total capital raised through private placements surpasses total capital raised in public offerings. What’s more, in recent years legislation like the JOBS Act has made a number of significant changes to laws and regulations governing private capital markets. Consequently, understanding the myriad private offering exemptions and how to properly conduct a private placement is crucial for not only for lawyers, but also for executives, managers, directors and anyone involved in corporate finance transactions.
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/private-offering-exemptions-and-private-placements-2020/
Prepared by CA Sandesh Mundra - An exhaustive presentation on Consolidation of Accounts covering the Standards - AS 21, AS23 and AS 27 with indepth analysis of the finer aspects involved.
Substance as an important element of tax planning and global trends in exchange of information.
CONTENT
-Information exchange: general facts.
-AEOI: brief chronology.
-AEOI: general ideas.
-AEOI: scheme.
-AEOI: specifics.
-Practical example: Cyprus.
-What is “substance” and where does it come from?
-Today`s substance requirements.
-Actions and measures, indicating “substance”.
-Issues to be considered during the obtainment of Cyprus tax residency certificate.
-Questions asked by tax authorities investigating into substance over form.
OmniPro\'s Company Law Spring Update 2011. Includes review of the European Communities (statutory Audit Regulations) 2010, Criminal Justice (Money Laundering & Terrorist Financing) Act 2010 & Multi-Unit Development Act 2010
In this edition of Regulatory Focus, Duff & Phelps provides a synopsis of the FCA's latest news and publications issued in May 2017.
Highlights include:
MiFID II Topics and Challenges
FCA's increased focus on cyber resilience
Guidance on the Criminal Finances Act 2017
Like the rest of the financial services industry, insurers are subject to increasingly complex and prescriptive regulations and standards. In the year ahead, insurers will need to focus on the new U.S.Department of Labor fiduciary standard, which is likely to have a significant effect on how insurance products are sold. Moreover, global developments, especially those related to the developing International Capital Standard, will require insurers to closely monitor – and ideally contribute to – official discussions about how globally active insurers should manage capital
In this edition of Regulatory Focus, the experts in Duff & Phelps’ UK Compliance and Regulatory Consulting team, provide a detailed synopsis of the latest news and publications issued by the Financial Conduct Authority during May and June 2018.
https://www.duffandphelps.com/insights/publications/compliance-and-regulatory-consulting/regulatory-focus-july-2018
The global view on offshore financial centres remains as volatile as ever. With a seemingly growing concern on the legitimacy of previously accepted tax avoidance measures/schemes across the EU and US, as well as the introduction of requirements to maintain directories of beneficial owners for corporate entities incorporated within the EU1 expected to come into force by the end of June 2017 (and the subsequent extension of such to the UK Overseas Territories and Crown Dependencies2), there is a renewed interest to see what the impact of these requirements will be in practice – particularly insofar as it relates to offshore financial centres.
In this edition of Regulatory Focus, the experts in Duff & Phelps round up the latest news and publications issued by the Financial Conduct Authority. Read more
The biggest accounting changes coming out of the third quarter affected not-for-profit organizations, but other projects received minor updates, too. In addition, several exposure drafts have been issued, including the expected exposure draft of targeted improvements to hedge accounting.
201502 accenture automatic exchange of information regime an emerging compl...Francisco Calzado
publicación acerca de la norma internacional sobre el intercambio automático de información, elaborada por la OCDE junto con el G20 y la colaboración de la Unión Europea.
Este informe pone de manifiesto los nuevos retos en materia regulatoria a los que se enfrentan las entidades financieras tras la adopción de la norma, con especial foco en el impacto que supondrá el cumplimiento de los requerimientos exigidos por el CRS.
In this edition of Regulatory Focus, the experts in Duff & Phelps round up the latest news and publications issued by the Financial Conduct Authority. Read more
The second quarter of 2017 brought only two accounting standards and might represent the calm before the next storm. The Financial Accounting Standards Board (FASB) currently has 24 projects in various stages of development on its agenda and 10 research projects.
Major projects, including accounting updates to hedging, consolidation and the disclosure framework are still in the works, and research projects indicate that the FASB may be taking a closer look at accounting for intangibles, distinguishing liabilities from equity, inventory and cost of sales, subsequent accounting for goodwill and financial performance.
Response to Call for Input on Crowdfunding: BWB ComplianceBWB Compliance
It's been almost two and a half years since the FCA's regime for crowdfunding platforms came into being and now the regulator is starting its review of how well the regime is working. BWB has been very involved with the crowdfunding industry since 2012 and we've given the regulator our feedback. We've worked with 37 investment-based and loan-based platforms and also provide support to the UK Crowdfunding Association.
In 2016, the Financial Accounting Standards Board (FASB) released 20 accounting standards updates (ASUs). Among the more significant were changes to leasing, financial instruments and the not-for-profit reporting model.
Despite the completion of many significant projects, the FASB will likely remain active during 2017. Presently, it has 26 active projects, the most significant of which may be considered the proposed changes to hedge accounting originally issued in the third quarter of 2016. During the fourth quarter of 2016 and first couple weeks of 2017, the FASB issued seven accounting standards updates.
In this edition of Regulatory Focus, the experts in Duff & Phelps’ UK Compliance and Regulatory Consulting team, provide a detailed synopsis of the latest news and publications issued by the Financial Conduct Authority during March 2018.
How can hospitalist programs manage the ongoing shift to value-based care, along with operating costs and the challenges of managing, recruiting and retaining high-quality physicians? Read the report to find out.
Capital Markets Insights – Late Fall 2018Duff & Phelps
What’s been an increase in growth and acquisition-related financings and recapitalization transactions? Read the fall edition of Duff&Phelps’ Capital Markets Insights.
Read Duff & Phelps’ detailed synopsis of the latest news and publications issued by France’s AMF affecting the asset management industry during the third quarter of 2018.
Healthcare Services Sector Update – October 2018Duff & Phelps
healthcare m&a advisory, best performing sectors in healthcare, healthcare services industry, m&a advisors in healthcare industry, Healthcare Services Index
Medical Device Contract Manufacturing Update – Fall 2018Duff & Phelps
The global medical devices contract manufacturing market was valued at $70 billion in 2017, and is forecasted to increase to $115 billion in 2022, a compound annual growth rate (CAGR) of 9.5%. Read the Medical Device Contract Manufacturing Update Report for market trends impacting the contract manufacturing organizations (CMO).
The Duff & Phelps cost trend update is now available for both the Construction Cost and Equipment Cost indices. This trend update dates back to 2015 and shows how the last four years has been relatively stable for construction after a decade of volatility, while the equipment cost indices continues to show moderate year-on-year changes. Please be reminded that these indices are just average indicators of change and they are not absolutes. Duff & Phelps advises that after five to seven years, you should establish a new replacement cost basis by using a qualified valuation professional. Please contact Brad Schulz at Duff & Phelps to discuss establishing a new replacement cost basis.
Hedge Fund and Private Equity Fund - Structures, Regulation and Criminal RisksDuff & Phelps
Duff & Phelps Managing Directors Ann Gittleman and Norman Harrison discussed structures, regulation and criminal risks in hedge fund and private equity fund at the Annual FBI conference in Washington, D.C. Read more in this report.
Food and Beverage M&A Landscape - Summer 2018Duff & Phelps
M&A deal activity in the food and beverage industry remains active, with more than 270 deals closed over the last twelve-month (LTM) period ended July 31, 2018. Mega-sized deals continued to make headlines, with several North American transactions closing at multibillion values since our Spring 2018 report. The largest transaction seen was the merger between Keurig Green Mountain Inc. and Dr. Pepper Snapple Group, at a value over $25 billion. Other large transactions include, Conagra Brands’ $10.9 billion acquisition of Pinnacle Foods Inc., a manufacturer and distributor of branded convenience food products in North America, as well as General Mills’ acquisition of Blue Buffalo Pet Products, Inc., a natural pet food company for $8.0 billion.
Buildup in dry powder is driving appetite for new issues and resulting in increasingly issuer friendly spreads and structures. For more detail, read the Duff & Phelps Capital Markets Insights – Summer 2018 report.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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1. Regulatory Focus Issue 114
With GDPR and MiFID II processes now firmly embedded in our daily lives,
many of our readers will look back at the months of April and May with a sense
of relief.
In relation to MiFID II, firms subject to the MiFID II best execution and disclosure
rules had to publish their RTS 28 disclosures for the first time by 28 April 2018.
This had to be completed on a best endeavours basis this year, with the aim that
by next year, firms will have collected all the information that they need to make
complete and accurate disclosures.
In relation to GDPR, in our individual capacity, most of us will have received
emails such as ‘We don’t want to lose touch’, whilst simultaneously data
mapping and co-ordinating the release of those very same emails in our
professional roles. We would like to remind readers that, even though the GDPR
implementation date (25 May 2018) has now passed, firms can still contact us
for assistance with GDPR.
The FCA will have contacted many of our readers in recent weeks with respect
to the Financial Services Compensation Scheme (FSCS) levy, reminding
managers that a ‘look-through’ approach to underlying investors of collective
investment schemes must be applied when distinguishing between eligible and
noneligible claimants. This is relevant to assess whether firms can rely on the
FSCS levy exemption, and if not, where they should be reporting eligible
income. We have provided further details on this in the main content of the
newsletter below.
A s y n o p s i s o f t h e F i n a n c i a l C o n d u c t A u t h o r i t y ’s (F C A )
l a t e s t n ews a n d p u b l i c a t i o n s i s s u e d i n A p r i l a n d M ay 2 018
I N S I D E
2 SUPERVISION MATTERS
Financial Services Compensation
Scheme (FSCS) levy
Criminal Finance Act 2017
Asset management: A regulatory
perspective
FCA Director of Competition delivers
speech on the risks blockchain
technology poses to consumers and
competition
Brexit: What does it mean for financial
markets to be open?
FCA publishes its business plan for
2018/19
Cryptocurrency derivatives
The FCA’s Asset Management Market
Study
7 ENFORCEMENT MATTERS
Individual banned by the FCA for
misappropriating client money
FCA secures confiscation orders
totaling £1.69 million against
convicted insider dealers
FCA and PRA jointly fine a chief
executive of a large banking
group £642,430 and announce
special requirements regarding
whistleblowing systems and controls
at that bank
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S U P E R V I S I O N M AT T E R S
The FCA recently contacted firms that currently claim an exemption
from the Financial Services Compensation (FSCS) levy. The rules
have changed, and firms now need to consider when undertaking
protected investment business whether they have eligible income
derived from underlying investors in any collective investment
scheme (CIS) they manage.
The FCA initially required firms to respond by 6 June 2018 and
either confirm that the exemption is still valid, with an explanation
why, or if not, to report eligible income for 2017. The FCA
subsequently contacted firms on 7 June and stated that, after
discussions with a number of trade bodies, it had agreed to extend
the deadline to 15 June 2018 to allow firms more time to provide
data.
FCA Rule COMP 12A.3, which came into effect in April 2018, aims
to bring greater consistency and clarity to when the FSCS can
compensate investors in a CIS if an operator, investment manager,
manager or depositary is declared in default.
Investment managers, Alternative Investment Fund Managers
(AIFMs) and any other firms caught by these rules should check that
any exemption claimed from the FSCS levy is still appropriate in light
of COMP 12A.3 by applying the relevant look-through to their
underlying investors.
Firms need to assess whether those investors are eligible claimants,
and if they are, to report eligible income derived from them. As a
reminder, firms can refer to FCA Rule COMP 4.2 to establish who is
eligible to claim from the FSCS.
The look-through provisions are relevant only where firms undertake
‘protected investment business’. FCA rule COMP 5.5 defines
protected investment business as designated investment business
covered by the compensation scheme. Both these elements are
relevant when assessing the obligation to pay the FSCS levy.
Firms should identify where they manage investments both directly
or indirectly for eligible claimants. For example, circumstances in
which a firm acts as a delegated investment manager of a CIS that
is operated by an authorised fund manager still need to be
considered.
Firms may still be able to claim an exemption if they do not undertake
protected investment business as defined in COMP 5.5 or do not
have clients or investors in the funds they manage who would be
eligible claimants under COMP 4.2.
Please note that for firms with the permission of ‘managing an AIF’,
the activity would still be exempt from the FSCS levy unless the fund
(AIF) is an authorised fund, has its registered or head office in the
UK, or is domiciled in the UK. Therefore, if a firm is an AIFM that
purely manages a Cayman fund and is not carrying on any other
delegated investment business, it will continue to be exempt from
the FSCS levy, and the look-through will not apply.
In addition, it appears that most private equity firms would still be
exempt from the FSCS levy as they would not have to look through
Limited Partnerships that are CISs.
When analysing the fee tariff data, if firms are not able to establish
the annual eligible income, an alternative option is to declare all
annual income for the applicable regulated activity in calculating the
FSCS levy.
Financial Services Compensation Scheme
(FSCS) levy
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Failure to prevent the facilitation of tax evasion has been a criminal
offence since 30 September 2017. The legislation set out in CFA
2017 introduced two new criminal charges: failure to prevent the
facilitation of the evasion of UK tax and failure to prevent the
facilitation of foreign tax evasion.
The offence is committed by incorporated bodies (companies and
partnerships) when they fail to prevent persons associated to them
from committing tax evasion. A defence exists where businesses
can prove that they have reasonable procedures in place to prevent
the facilitation of tax evasion, or that it is not reasonable or
proportionate to put such a procedure in place. As a result of the
introduction of these provisions, businesses should have completed
a risk assessment of their current group operations and should have
updated their policies and procedures to try to mitigate any risks
identified as part of the risk assessment. In addition to these steps,
businesses should also provide their staff members with training to
communicate the prevention policies and procedures that have been
implemented. To the extent that the facilitation of tax evasion occurs,
and no reasonable prevention procedures were in place at the time
the facilitation occurred, this could result in a criminal conviction and
unlimited fines for the relevant body.
Experts at Duff Phelps have already assisted a number of clients
to design robust policies and implement proportionate preventative
procedures. Should you require any assistance to ensure your
business is compliant with the above requirements, please do not
hesitate to contact us.
F O R M 42 R E P O R T I N G D E A D L I N E –
6 J U LY 2 0 18
Form 42 reporting refers to reporting in relation to employment-
related securities to HMRC. Your business is required to complete
reporting if it has been requested to complete a return by HMRC, if
a ‘reportable event’ occurred in the 2017/18 tax year (that is, the
award of an employment-related security) or if the disposal or partial
disposal of the security occurred in the 2017/18 tax year. Note that
all reporting must be completed via HMRC’s online filing system,
which requires log-in details to be obtained in advance of the
completion of the reporting. We would therefore recommend that
this is completed well in advance of the deadline.
S U P E R V I S I O N M AT T E R S
Criminal Finance Act 2017
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S U P E R V I S I O N M AT T E R S
26 April 2018
Andrew Bailey, chief executive at the FCA, delivered a speech at the
London Business School Annual Asset Management Conference. In
his speech, he highlighted the market-wide risks and changes that
have impacted the asset management industry, including the
following:
• The changing expectations of investors, which have influenced
the type of financial instruments they invest in.
• The challenges facing the asset management industry, such as
an ageing population and the advancement of new technology.
• The structural shift from banking to market-based finance.
M A R K E T- W I D E R I S K S
Mr Bailey stated that, since the financial crisis 10 years ago, there
has been a major structural shift away from financial activity taking
place within the traditional banking sector towards market-based
finance and particularly asset management. Mr Bailey said that,
before the crisis, the balance had gone too far the other way,
incentivised by weak capital and liquidity standards in bank
regulation. This led to banks holding relatively illiquid assets to back
bank deposits, where the capital standards were inadequate to
cover changes in the value of those assets. When customers
required the full return of their bank deposits plus interest, there was
a risk that the banks had insufficient funds to return that money.
Since the crisis, both regulation and risk management have
strengthened within firms, and there has been a shift towards
market-based finance. Assets held by financial intermediaries other
than banks, insurance companies, pensions funds or public-sector
firms account for 30% of total assets held, and the largest growth
has been in the asset management industry.
O P E N - E N D E D F U N D S A N D E XC H A N G E -
T R A D E D F U N D S
In his speech, Mr Bailey discussed the ability of open-ended funds
and exchange-traded funds (ETFs) to absorb systemic shock in
stressed conditions.
The EU referendum was the first test, and in relation to open-ended
funds, Mr Bailey said that ‘many funds chose to suspend
redemptions, making use of a safety valve that is foreseen in
agreements between asset managers and their investors’. This
enabled funds to suspend redemptions until conditions calmed
down, allowing the shock to pass so funds could stabilise and
resume normal operations. Mr Bailey stated that when funds reduce
asset holdings in stressed conditions, so do forced sellers in a
falling market, which amplifies market movement. This risk is
amplified where a fund holds illiquid assets and promises high-
frequency or daily redemptions to investors. Mr Bailey questioned
whether the offering of daily redemptions in illiquid assets that
cannot be valued daily is appropriate, and he stated that funds with
longer redemption periods did not experience the same issues.
Mr Bailey stated that ETFs have grown substantially since the crisis,
and we know relatively little as there has not been a stress scenario
to test the liquidity and risks within the market in stressed
conditions. However, he stated that the global financial system is
more resilient than it was prior to the financial crisis. As such, he
concludes that the structural shift towards market-based finance as
opposed to banking means that the risks and vulnerabilities to the
financial system will be different to those before the financial crisis.
C U R R E N T C H A L L E N G E S O F A S S E T
M A N AG E M E N T I N T H E U K
In the second half of his speech, Mr Bailey highlighted the
challenges facing asset management and some of the resolutions
the FCA has adopted, which are listed below.
B R E X I T
There remains uncertainty surrounding the impact that Brexit will
have on asset managers such as the deregulation of activity,
passporting of funds and segregated account arrangements for EU
clients. Due to the global scale of asset management fund activity,
Mr Bailey argued that the current arrangements that asset managers
have in place with clients work well, and it is important that these are
maintained post Brexit.
Asset management: A regulatory perspective
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S U P E R V I S I O N M AT T E R S
D E M O G R A P H I C C H A N G E
Mr Bailey talked about the changing demographic patterns of
society, such as the ageing population, persistent low interest rates
and increased costs of care, particularly in old age. The asset
management industry is at the forefront of these issues as it
provides the means for saving for old age. However, the choices are
becoming more complex for consumers, and the responsibility for
those choices is being increasingly transferred to consumers. The
decline of defined benefit pensions and the growth of defined
contribution schemes was also mentioned. Whilst greater choice for
individuals makes sense, it places greater responsibility on the
industry and on the regulator to ensure these choices can be made
securely and confidently.
D E V E LO P M E N T S I N R E G U L AT I O N
Mr Bailey focused on three main areas of regulatory change: the
asset management market study mentioned elsewhere in this
newsletter, MiFID II and the Packaged Retail and Insurance-Based
Investment Products (PRIIPs) regulation.
MiFID II
In his speech, Mr Bailey stated that one of the biggest challenges
for the FCA was ensuring that MiFID II was implemented
successfully without stopping the effective functioning of the
markets. FCA supervisors have a work programme to assess
compliance with MiFID II and to evaluate how effective the
regulations have been in meeting their aims.
PRIIPs
The PRIIPs regulation establishes standard disclosure obligations,
and asset managers are required to provide consumers with a KID
(Key Information Document) on their PRIIPs product, which is
designed to help investors make informed decisions by being able to
compare key features, risks and rewards of PRIIPs. Firms have
raised concerns about the PRIIPs regulation. Mr Bailey made it clear
that he is also concerned about this area, and it is a subject that we
all should take seriously.
Technology
Mr Bailey stated that technology is leading to various changes in the
asset management sector. There have been technological
advancements, such as straight-through deal processing (STP) and
distributed ledger technology (DLT), which should increase
efficiencies in front and back offices. Another growth area is
artificial intelligence (AI), which is being used in risk management,
compliance, investment decisions, securities trading, monitoring and
client relationship management. Investment managers may have to
increase their spending on technology to keep up with
developments. Supervision of AI remains a challenge and may also
raise issues of accountability.
C O N C L U S I O N
Mr Bailey concluded that although he had discussed a daunting list
of issues, these showed the importance of the asset management
industry to society. He stated that the industry is inevitably affected
by the different elements of the world today, such as retaining open
markets for financial services, dealing with an ageing population and
low interest rates, technological innovation, the shift towards
market-based finance and providing the best service to consumers.
These are all important issues for the FCA.
The full speech can be accessed here.
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26 April 2018
Mary Starks, director of competition at the FCA, delivered a speech
that highlighted the work the FCA is doing on blockchain and
distributed ledger technology (DLT) and highlighted the risks and
potential benefits to consumers and competition arising from this
new technology.
The FCA noted the numerous useful applications blockchain
provides but equally expressed concerns about the potential risks to
consumers and competition. In particular, crypto assets, which are
one of the more familiar applications of blockchain technology, may
require further monitoring because of the risks identified.
The shift of cryptocurrencies from being considered as a medium for
exchange to being recognised as an asset class has generated
many public policy decisions. The FCA is working jointly with the UK
Government, through its participation in a cryptocurrency taskforce,
to assess whether further regulatory action is required and to
monitor international developments.
DLT has been broadly defined by the FCA to include a wide range of
applications involving a single cryptographically secure record that
can be interacted with by various participants, including uses such
as records of contracts, transactions, asset holdings and proof of
identity.
The FCA acknowledged that DLT applications demonstrate promise
to improve the financial services market but notes that the benefits
need to be balanced against any risks to competition that may
emerge. The FCA is committed to understanding the intricacies of
blockchain technology to encourage technological development
while remaining mindful to the potential risks.
The FCA has confirmed through firms’ participation in the regulatory
sandbox that some innovative applications are emerging that provide
solutions to inefficiencies in the market. The regulatory sandbox
allows businesses to test innovative products, services’ business
models and delivery mechanisms in a safe environment with real
customers. The FCA has observed potential for improvements
based on the use of DLT in three areas:
• Improving operational resilience,
• Using distributed digital transaction records to improve
transparency, and
• Providing savings in costs and time through removing the need
for intermediaries.
Ms Starks concluded by stating that she is optimistic about the
promise for DLT to improve financial services markets. The FCA will
seek a much better understanding of this technology, its strengths
and vulnerabilities, and its implications for competition before the
FCA is comfortable enough to entrust it with significant portions of
the UK’s financial infrastructure. However, as a regulator, its role will
be to try to balance the risks of this promising technology without
inhibiting its potential benefits.
To read the full speech, please click here.
FCA Director of Competition delivers speech on the risks
blockchain technology poses to consumers and competition
S U P E R V I S I O N M AT T E R S
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24 April 2018
Andrew Bailey delivered a speech at City Week titled ‘The
International Financial Services Forum’. In it, the FCA’s chief
executive commented that he is pleased that a decision has been
made to have a transition or implementation period prior to the UK’s
full withdrawal from the European Union (EU). Firstly, this approach
makes sense to mitigate cliff edge risks to financial stability, such as
contract continuity, data sharing and market disruptions. Secondly, it
makes sense for firms and authorities to put into effect their plans
once they know what the steady state agreement looks like.
Moreover, the speech emphasises that financial stability is a
common goal, and one that is of equal importance to both the UK
and the EU. He noted that the government is working on legislation
to allow a temporary permission regime for firms that passport their
services into the UK from the EU.
It is Mr Bailey’s opinion that ‘closing access to financial markets
which are global not regional will undermine and not enhance
financial stability’. He has no doubt that the City of London will
remain open for business. Thus, a key question for him is whether
EU parties will be allowed to continue to do business in the UK from
an EU perspective. He noted that regulatory and supervisory
co-operation between the EU and third countries has so far proven
to be beneficial to the global economy and its resilience to financial
shocks.
Mr Bailey noted that international agreements, along with
equivalence decisions, have a role to play in providing mutual
access between the EU and third countries. Whilst the Chief
Executive stated that the UK and the EU will retain their autonomy
with respect to rule-making, he also expressed a desire for the FCA
to co-operate with ESMA and other national competent authorities
with the goal of establishing common standards.
The full speech can be accessed here.
S U P E R V I S I O N M AT T E R S
Brexit: What does it mean for financial markets to be open?
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9 April 2018
The FCA has published its business plan for 2018/19, in which it
sets out its key priorities and objectives for the forthcoming year.
This year’s plan is made up of seven themes spread across the
seven specific sectors that the FCA regulates. Unsurprisingly, the
FCA’s focus is on the UK’s withdrawal from the European Union
(EU). The regulator’s work in this area will involve:
• Working closely with the Government to convert EU legislation
into domestic law;
• Creating the new regime for the regulation of EEA firms;
• Carrying out a review of firms’ contingency plans for when the
UK ceases to be an EU member;
• Continuing to cooperate effectively with the regulator’s
international partners; and
• Ensuring that the regulator’s own operations, including its
systems and technology, are suitably prepared.
Aside from Brexit, the FCA will be concentrating on the following
‘cross-sector priority’ areas:
Firms’ culture and governance — Finalising the rules to extend the
Senior Managers and Certification Regime (SMCR), establishing a
public register and focusing on the remuneration arrangements of
firms.
Financial crime and anti-money laundering — Continuing to
tackle money laundering by issuing publications on findings,
embedding the new Office for Professional Body Anti-Money
Laundering Supervision (OPBAS), raising awareness of fraud and
scams, and improving intelligence sharing with partners/agencies in
this area.
Data security, resilience and outsourcing — Conducting a
supervisory assessment of firms’ operational resilience and
monitoring the implementation of technology and resilience data, as
part of the Open Banking and the second Payment Services
Directive.
Innovation, big data, technology and competition — Developing
its relationship with the Information Commissioner’s Officer (ICO)
following the implementation of the General Data Protection
Regulation (GDPR); this will be followed by the publication of an
updated Memorandum of Understanding that looks at how the
bodies will work together going forward. The FCA will continue to
assist firms through the FCA Innovate programme, allow firms to use
the regulatory sandbox for new concepts and ideas, test and apply
RegTech/advanced analytics to regulation and review firms’ use of
data. The regulator will also publish new crowdfunding rules and
conduct a review of cryptocurrencies as part of the Treasury, Bank
of England and FCA Taskforce.
Treatment of existing customers — Ensuring that existing clients
are not treated less favorably than new customers, focusing on retail
general insurance firms and claims management companies and
paving the way for more small and mid-sized enterprises to access
the Financial Ombudsman Service.
Long-term savings and pensions and intergenerational
differences — Publishing the finalised Retirement Outcomes
Review, as well as collecting data from firms that provide pension
transfer advice and intervening if there is any evidence of unsuitable
advice being given.
Alternatives to high-cost credit — Finalising the high-cost credit
products review, which looks at products such as arranged and
unarranged overdrafts, including the monthly maximum charge
(MMC).
In addition to the business plan, the FCA has also published its
annual fees consultation paper, sector views and a discussion paper
on the impact of the regulator’s interventions.
To read the business plan in full, please click here.
S U P E R V I S I O N M AT T E R S
FCA publishes its business plan for 2018/19
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6 April 2018
The FCA has issued a statement on the requirement for firms
offering cryptocurrency derivatives to be authorised.
Cryptocurrencies are not currently regulated by the FCA unless they
form part of other regulated products or services. However, the FCA
is aware of an increasing number of UK firms offering
cryptocurrencies and cryptocurrency-related assets.
The FCA indicates that cryptocurrency derivatives are capable of
being financial instruments under the Markets in Financial
Instruments Directive II (MiFID II), although it doesn’t consider
cryptocurrencies to be currencies or commodities for regulatory
purposes under MiFID II.
Dealing in, arranging transactions in, advising on or conducting any
other regulated activity in relation to a financial instrument is subject
to authorisation by the FCA. Regarding derivative cryptocurrencies,
this will include:
• Cryptocurrency futures — contracts in which parties agree to
exchange cryptocurrency at a future time at a mutually agreed-
upon price.
• Cryptocurrency contracts for differences — contracts in which
parties agree to exchange the cash difference between the
current value of a cryptocurrency asset and its value at a future
time.
• Cryptocurrency options — contracts that grant the beneficiary
the right to acquire or dispose of cryptocurrencies.
Each firm is responsible for ensuring that it has the appropriate
authorisation and permission to carry on each regulated activity. It is
a criminal offence for firms not authorised by the FCA to offer
products and/or services that require authorisation. FCA-authorised
firms that offer these products without the relevant permission may
face enforcement action.
Those who are unsure about whether they require authorisation may
refer to the FCA’s general guidance on the regulatory perimeter in
the Perimeter Guidance Manual (PERG). The FCA also encourages
firms to seek expert advice if they remain uncertain.
S U P E R V I S I O N M AT T E R S
Cryptocurrency derivatives
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5 April 2018
The FCA finalised its long-running Asset Management Study in June
2017 and published a final report, which we summarised in our
Regulatory Focus at the time. The key elements of the FCA’s results
are listed below.
• Competition in pricing
The FCA found that there is weak price competition in several
areas of the asset management industry. Despite large
numbers of firms operating in the market, the FCA found
evidence of sustained high profits over a number of years.
• Performance
Fund performance is not always reported against an
appropriate benchmark.
• Clarity of objectives and charges
Concerns were also raised about how asset managers
communicate their objectives to clients, particularly retail
investors. The FCA found that investors are not always clear
what a fund’s objectives are. In addition, investors’ awareness
and focus on charges is mixed and often poor.
• Investment consulting and lack of competition
The FCA has concerns about the way in which the investment
consulting market works.
S U M M A RY O F R E M E D I E S
In the final report, the FCA proposed a package of remedies,
including the following:
• Measures to protect investors who are less able to find
better value
The FCA proposed to strengthen the duty of fund managers to
act in the best interests of investors by increasing
accountability and introducing a minimum level of
independence in governance structures. The FCA also wants
to make it easier for fund managers to switch investors to
cheaper share classes.
• Measures to drive competitive pressure on asset
managers
The FCA’s proposals seek to enable those investors who can
to exert greater pressure on asset managers. The FCA has
issued recommendations to both investors and representatives
to agree on a standardised disclosure of costs and charges for
both retail and institutional investors.
• Proposals to improve the effectiveness of intermediaries
The FCA recommended that the Treasury consider bringing
investment consultants into the regulatory perimeter. However,
this is subject to the outcome of the provisional market
investigation reference to the CMA (Competition Markets
Authority).
In April 2018, the FCA issued the first policy statement (PS18/8)
that includes remedies to protect investors from the results of weak
competition. Whilst this is applicable to Authorised Fund Managers
(AFMs), the FCA says that the requirements will be of interest to the
entire asset management sector. This includes the following
requirements:
• That fund managers assess annually whether charges are
justified in the context of the overall value;
• That independent directors make up at least 25% of an
Authorised Fund’s Board (with a minimum of 2 independent
directors);
• A new prescribed responsibility for fund managers under the
Extension of the Senior Managers and Certification Regime;
• Rules to prevent fund managers from retaining risk-free box
profits; and
• That revised guidance be published to make it easier for fund
managers to switch investors to cheaper share classes when it
is in their best interests.
S U P E R V I S I O N M AT T E R S
The FCA’s Asset Management Market Study
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Alongside PS18/8, the FCA issued Consultation Paper CP18/9 in
April 2018 in relation to the rest of the package of remedies. Again,
this applies to AFMs, but will be of interest to the rest of the asset
management industry. This covers the following:
• Making fund objectives more useful to investors,
• Consideration of and greater clarity over the use of
benchmarks, and
• Performance fees.
C O N C L U S I O N
Overall, the study highlights the FCA’s overreaching objectives of
ensuring that markets function well by ensuring the integrity of the
UK financial system and promoting effective competition in the
interests of consumers.
The various requirements of PS18/8 will be staggered from 1 April
2019 onwards. CP18/9 is open for consultation until 5 July 2018. In
addition, other work continues in relation to the study.
For the Asset Management Market Study final report, please click
here.
For PS18/8, please click here.
For CP18/9, please click here.
S U P E R V I S I O N M AT T E R S
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21 May 2018
The FCA has banned an individual from working in any regulated
activity in the financial services sector. He was found to show a lack
of honesty and integrity and therefore was not deemed fit and
proper.
The individual used £322,500 of client money to buy a debt
management firm. The individual from whom the company was
purchased and her husband were also banned by the FCA in
October 2017 for dishonestly misappropriating client money from
the debt management firm. The firm ultimately went into
administration, with a client money shortfall of over £7 million GBP.
The FCA made a case that the individual proceeded knowingly and
ignored the fact that the money he used to fund the purchase should
have been used only to settle creditors’ claims or should have been
returned to customers.
The full article can be found here.
E N F O R C E M E N T M AT T E R S
Individual banned by the FCA for misappropriating
client money
FCA secures confiscation orders totaling £1.69
million against convicted insider dealers
11 May 2018
Between November 2006 and March 2010, two individuals put
together a strategy and a process whereby they could use insider
information to trade stocks and generate profits for themselves.
One of the individuals held senior positions at three investment
banks over a number of years. He obtained inside information gained
from his employment, which he passed to his close friend, who
traded for both of them.
In May 2016, both individuals were sentenced to imprisonment: one
for 4.5 years, and the other for 3.5 years. Using the pair’s detailed
records, the FCA was able to prove that their conspiracy was
meticulously planned and thought out, easily proving both their
intent and the criminal activity itself.
Southwark Crown Court has now made confiscation orders totaling
£1.69 million against them. It is interesting to note that whilst the
evidence could support insider trading in relation to only five stocks,
the £1.69 million includes profits from an additional 23 stocks.
Given the extent of their planning (which includes unregistered
mobile phones, encrypted records, etc.), the court was able to
reasonably accept that trades made by the individuals in a particular
timeframe were also of a criminal nature.
The full article can be found here.
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11 May 2018
The Financial Conduct Authority (FCA) and the Prudential
Regulation Authority (PRA) have jointly fined the CEO of one of the
UK’s biggest banks £642,430 for attempting to uncover the identity
of the writer of an anonymous letter who made various claims
against the bank and the CEO himself in June 2016.
The investigation found that the CEO had made ‘serious errors of
judgement’ and had breached Individual Conduct Rule 2 by failing
‘to act with due skill, care and diligence’. It was concluded that the
CEO should have identified his conflict of interest and maintained
distance from the compliance department’s investigation,
recognised there was a risk that he would not be able to consider
the bank’s response independently or objectively and understood
the importance of the compliance department’s jurisdiction over the
investigation process. However, the FCA and the PRA did not find
that the CEO had breached Individual Conduct Rule 1, which
requires senior management function holders to act with integrity.
Mark Steward, the FCA’s executive director of enforcement and
market oversight, reminded firms that ‘whistleblowers play a vital role
in exposing poor practice and misconduct in the financial services
sector. It is critical that individuals are able to speak up anonymously
and without fear of retaliation if they want to raise concerns’.
In addition to the fine, the FCA and the PRA are enforcing ‘special
requirements’ against the bank as part of ‘enhanced monitoring and
scrutiny’ of the firm’s whistleblowing systems and controls. Until
2020, the bank must annually report to the regulators on its
whistleblowing measures and cases, and senior managers in charge
of whistleblowing procedures must provide personal attestations in
respect of their soundness.
The CEO’s original fine of £917,800 was reduced by 30% to
£642,430 because he agreed to settle early. Whilst recognising
that the CEO ‘made no personal gain’, the regulators imposed a
penalty of 10% of his annual income. This was the first case brought
under the Senior Managers Regime, and the special requirements
imposed were the first of their kind against a regulated firm in
relation to whistleblowing.
You can read more on the story here.
R U L E S
FCA and PRA jointly fine a Chief Executive of a large
banking group and announce special requirements
regarding whistleblowing systems and controls at that bank