The FCA has published a consultation (CP21/34) proposing changes to the Appointed Representatives (AR) regime. In parallel, HM Treasury (HMT) has published a Call for Evidence on possible legislative reforms to the AR regime. These papers present significant, wide-ranging changes that have the potential to seriously impact the way that AR arrangements operate, and the burdens placed on principals in particular.
On 7 December 2021, the FCA published its second consultation on the Consumer Duty, setting out more developed proposals for rules and guidance following feedback from its first consultation. The proposals set out in the first consultation have been mostly carried forward, though the FCA has made some important amendments and clarifications in response to feedback received. For more detail on the first consultation, including background to the introduction of a Consumer Duty.
On 30 November 2021, the FCA published PS21/20 on reforms to UK MiFID’s conduct and organisational requirements, setting out changes to the research rules and, in a move that will no doubt be welcomed by market participants, the removal of the best execution reporting in RTS 27 and RTS 28.
The European Commission has sent a letter to the European Parliament and the Council of the EU announcing a delay to the date of application of regulatory technical standards (RTS) under the Sustainable Finance Disclosure Regulation (SFDR). The Commission has now deferred implementation of the SFDR RTS to 1 January 2023.
On 21 October 2021, HM Treasury published its much-anticipated consultation on the regulation of buy-now-pay-later products. The consultation arrives nearly seven months after the Treasury confirmed that it would formally consult on bringing BNPL products into the regulatory perimeter “as a matter of priority”.
Financial crime remains at the top of the regulatory agenda across the globe. As responses to the pandemic stabilise, and following some high-profile global incidents, regulators face renewed pressure to manage financial crime more effectively through robust supervision and enforcement. In the October 2021 edition of the City Library’s Compliance Officer Bulletin, our business crime, regulatory and cybersecurity lawyers explore the latest developments in anti-money laundering and financial crime in a series of articles
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.
On 20 July 2021, the European Commission presented a package of legislative proposals establishing a new framework for the EU’s anti-money laundering and countering terrorism financing (AML/CTF) regime. The package will create an EU-wide AML supervisory authority, establish a new directly applicable single rulebook, and extend the scope and requirements of the regime including, significantly, to all cryptoasset service providers. In this briefing we explore the Commission’s proposals in more detail. We also set out considerations for UK firms, including HM Treasury’s recent consultations on the UK AML/CTF regime
The FCA has written a letter to the chairs of authorised fund managers on improving the quality and clarity of authorised ESG funds, setting out guiding principles on compliance with ESG obligations. The FCA’s letter is driven by concerns about the number of poor quality applications for funds marketed with a sustainability and ESG focus making claims that do not hold up under scrutiny. In the letter, the FCA criticises “the number of poor-quality [ESG/sustainable] fund applications we have seen and the impact this may have on consumers”, and requires material improvements to be made.
On 22 June 2021, HM Treasury (HMT) confirmed that it will take forward legislation to introduce a gateway for the approval of financial promotions of unauthorised persons. Once the gateway is in place, only firms which have successfully applied to the FCA to approve financial promotions will be permitted to approve the financial promotions of unauthorised persons.