On 11 October 2023, Ashley Alder, Chair of the FCA, delivered a speech on the FCA’s priorities for updating and improving the UK regulatory regime for asset managers. Covering a number of interesting angles, the speech sets out a sketch of the FCA’s vision for the UK asset management regime going forward, and includes some helpful clarity for the industry about the direction of regulatory reform. The speech highlights in particular the following priorities for reform: ensuring a more proportionate approach to the regulation of AIFMs; updating the retail funds regime; and supporting technological innovation in the sector.

On 11 October 2023, Ashley Alder, Chair of the FCA, delivered a speech on the FCA’s priorities for updating and improving the UK regulatory regime for asset managers. Covering a number of interesting angles, the speech sets out a sketch of the FCA’s vision for the UK asset management regime going forward, and includes some helpful clarity for the industry about the direction of regulatory reform. The speech highlights in particular the following priorities for reform: ensuring a more proportionate approach to the regulation of AIFMs; updating the retail funds regime; and supporting technological innovation in the sector.

The FCA’s final rules for cryptoasset financial promotions, published in June 2023, will take effect from Sunday, 8 October 2023. Those marketing in-scope cryptoassets to UK consumers, including those based overseas, will need to ensure without delay that preparations are in place for the start of the rules.

The UK financial services regulator, the Financial Conduct Authority (FCA), has published a consultation to update its guidance on social media financial promotions.

On 28 June 2023, the EU Commission published its long-awaited package of reforms to the EU payments regulatory regime. Deeming the package an “evolution not a revolution” of the EU payments framework, the Commission has published proposals for:
• A third Payment Services Directive repealing and replacing the Payment Services Directive and Electronic Money Directive
• A new Payment Services Regulation, which will harmonize and directly apply most of the conduct obligations imposed on payments firms
• A new Regulation on a framework for financial data access, relating to open finance
• A new Regulation on the establishment of a digital euro

In this edition of Bite-size Briefings, we take a bite-size look at the latest developments concerning AI regulation as it affects financial services in Australia, the EU, Hong Kong SAR, Thailand, the UK and the US.

On 6 July 2023, the European Securities and Markets Authority (ESMA) announced the launch of a Common Supervisory Action (CSA) with EU National Competent Authorities on sustainability-related disclosures and the integration of sustainability risks in the investment fund sector. Asset managers with EU touchpoints should have regard to the CSA and its output when considering emerging enforcement risk in this area.

On 25 November 2021, the European Commission published its long-awaited proposals to amend the Alternative Investment Fund Managers Directive (AIFMD), along with changes proposed to the UCITS Directive and ELTIF Regulation (AIFMD II). The Commission’s proposals follow ESMA’s August 2020 letter of recommendations for changes that could be made to the AIFMD framework. Tripartite negotiations on AIFMD II are ongoing, following agreement by the Council of the EU on its general approach in June 2022, and adoption by the European Parliament’s Economic and Monetary Affairs Committee of its negotiating position in January 2023.

The Financial Conduct Authority has recently reiterated that its new Consumer Duty represents a significant shift in its expectations of affected firms. Good customer outcomes must be at the heart of firms’ business strategy and objectives. In an article for Thomson Reuters Regulatory Intelligence, Annabel Mackay and Kimberly Everitt provide an overview of the employment law implications of the Consumer Duty and lists next steps firms should take to ensure compliance.

A series of briefings that take a bite-size look at international trends in different jurisdictions, drawing on Baker McKenzie’s expert financial services practitioners with local market knowledge. This edition takes a bite-size look at the latest environment, social and governance developments in Brazil, the European Union, Belgium, Hong Kong SAR, Japan, Singapore, Thailand, and the United Kingdom.