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This article examines the scope of the FCA 's general nile-making power in s. 137A of FSMA. It sets out two core arguments showing that economic purposes and principles are central to the FCA 's objectives andgeneral functions: (1) the argument from "market function expertise "; and (2) the argument from "competition expertise. These economic purposes and principles shape the rule-making power, and limit the subject matter of the regulator 's rules. [ABSTRACT FROM AUTHOR]

The UK Financial Conduct Authority (FCA) has published a discussion paper on potential future proposals for regulating fiat-backed stablecoins. Under the proposed regime, firms would need to be authorized by the FCA to issue stablecoins and provide custody services. The FCA is considering requirements for maintaining stablecoin value, custody arrangements, and organizational controls. The FCA also discusses the use of stablecoins in payments and the expectations for banks innovating in digital money, including the need for separate entities and protections for retail customers. [Extracted from the article]

This article considers whether collapsed Financial Conduct Authority (FCA)-regulated investment firm London Capital & Finance Pic (LCF), an alleged Ponzi scheme, could have been regarded as operating a "collective investment scheme" and how that concept has been applied to debt instrument-based schemes. The article highlights uncertainties with the collective investment scheme regime in this context, with implications for both the supervision of schemes and enforcement actions. [ABSTRACT FROM AUTHOR]

The UK Financial Conduct Authority (FCA) has published guidance on its anti-greenwashing rule, which requires licensed firms to ensure that references to the sustainability characteristics of products or services are fair, clear, and not misleading. The FCA's guidance sets out expectations for firms subject to the rule, including that sustainability references should be correct, clear, complete, and make fair comparisons. The FCA is also consulting on extending sustainability disclosure requirements to portfolio management firms, with proposed labeling and disclosure requirements coming into force in December 2024 and 2025. [Extracted from the article]

The FCA's Approach The FCA reviewed each of the retail financial services markets in turn, considering the factual background, particularly Big Tech's entry in the market to date. Keywords: Financial Conduct Authority; FCA; discussion paper; Big Tech; financial services EN Financial Conduct Authority FCA discussion paper Big Tech financial services 59 63 5 04/04/23 20230101 NES 230101 In October 2022, the Financial Conduct Authority (FCA) issued a discussion paper on the potential competition impacts of Big Tech entry and expansion in retail financial services (the Discussion Paper). Part II describes the purpose of the Discussion Paper and Big Tech's activities in the financial services markets in the UK to date, and summarises the FCA's conclusions. [Extracted from the article]

The article discusses the publication of the Public Offers and Admissions to Trading Regulations 2024 in the United Kingdom. These regulations implement a new regime for public offers and admissions to trading, which is part of the designated activities regime (DAR). The DAR gives the Financial Conduct Authority (FCA) rulemaking powers over financial sector activities, such as public offers and listing. The regulations introduce a general prohibition on public offers of securities, but also include exceptions to this prohibition. The FCA will have enhanced powers to make rules for the admission of securities to trading on UK-regulated markets. The article also mentions changes to the scope of the regulatory perimeter, which were influenced by lessons learned from the London Capital & Finance scandal. [Extracted from the article]

The article discusses two separate topics related to the UK financial industry. The first topic is the UK Financial Conduct Authority's (FCA) consultation on proposals for improving transparency in bond and derivatives markets. The FCA is proposing minimum transparency requirements for trading venues and investment firms dealing with certain financial instruments, with waivers and deferrals available for orders above certain thresholds. The second topic is the FCA's final framework for a consolidated tape (CT) for bonds, which aims to collect post-trade information and make it available to the public. The FCA's rules and guidance on the bond CT are expected to come into force in April 2024. [Extracted from the article]

The article discusses the regulatory framework for commodity derivatives in the UK. The UK Financial Conduct Authority (FCA) has launched a consultation on proposed reforms to the framework, which covers position limits, exemptions, reporting, and ancillary activities. The FCA aims to enhance risk identification, respond to market changes, and relieve unnecessary burdens on firms. The proposed reforms include narrowing the application of position limits, amending criteria for setting position limits, establishing accountability thresholds, and introducing new exemptions. The changes are set to take effect on January 1, 2025. [Extracted from the article]

The UK Financial Conduct Authority (FCA) has outlined the future of digital regulation in the country. The FCA's Chief Executive, Nikhil Rathi, discussed the priorities of the Digital Regulation Cooperation Forum (DRCF), which brings together various regulatory bodies to collaborate on digital regulation. The key areas of focus include digital technology, researching digital identity, addressing the issue of Big Tech and data asymmetry, supporting responsible AI, and enhancing transparency and accountability through enforcement investigations. The FCA aims to work with industry and overseas authorities to improve financial services and respond to the challenges presented by AI. [Extracted from the article]

The UK Financial Conduct Authority (FCA) has published a consultation paper on the possibility of extending the Sustainability Disclosure Requirements (SDR) and labeling regime to portfolio management firms. The SDR regime, which was introduced in November 2023, applies sustainability disclosure rules to all FCA-authorized firms and includes labeling and marketing requirements for UK asset managers. The FCA is proposing to extend these requirements to UK-based portfolio management firms, excluding services for overseas clients or funds. The proposed labeling, naming/marketing, and disclosure requirements would come into force in December 2024 and December 2025 for product-level disclosures. The FCA plans to consider feedback and publish final rules in Q2 2024. [Extracted from the article]

The UK government has released a draft version of the Short Selling Regulations 2024, which will replace the existing UK Short Selling Regulation. The new regulations broaden the scope of shares covered and eliminate requirements for short positions in sovereign debt or sovereign CDS. The Financial Conduct Authority (FCA) will have emergency powers to address market risks, such as banning short sales or imposing conditions on them. Additionally, the government has published the Future of Payments Review report, which recommends developing a National Payments Vision and Strategy to improve the UK's payments landscape. Other recommendations include improving bank transfer processes, accelerating reform of Strong Customer Authentication requirements, prioritizing consumer protection and clarity in Open Banking, developing an Open Banking alternative payment journey, and reviewing regulatory requirements for FinTechs. [Extracted from the article]

The UK Financial Conduct Authority (FCA) has published its final framework for a consolidated tape (CT) for bonds. The CT is a requirement introduced by MiFID II for transactions in equity and non-equity instruments. The FCA's policy statement sets out the rules and guidance for the bond CT, which are expected to come into force on April 5, 2024. The tender process for the bond CT provider will begin in 2024. The FCA is also seeking feedback on a CT for equities and proposals on payments to data providers. [Extracted from the article]

The UK regulators, including the Bank of England, Prudential Regulation Authority, and Financial Conduct Authority, have proposed rules and expectations for the supervision of critical third parties in the financial sector. This comes in response to concerns about the heavy reliance on unregulated service providers, particularly in the IT sector, whose failure could have systemic consequences. The regulators' rules would only apply to critical third parties that provide services to authorized firms, their service providers, and financial market infrastructures. The proposed approach includes high-level fundamental rules and more detailed operational risk and resilience requirements, as well as self-assessment, testing, and disclosure requirements for critical third parties. The regulators emphasize that the responsibility for assessing risks and conducting due diligence remains with the regulated firms and financial market infrastructures. [Extracted from the article]

In this article, we look at the contested role of in-house lawyers in regulated organisations in the financial sector. A recent Financial Conduct Authority consultation on whether to designate the head of legal of banks, insurance companies and other financial firms as 'Senior Managers' and the decision which flowed from it, reflected a flawed view of lawyers as a neutral technocracy of mere legal technicians; we show how the FCA's decision is potentially damaging to the public interest and failed to take into account that in-house lawyers are often important decision-makers and influencers within their organisations. We put the case for an alternative view; that in-house lawyers are professionals, with agency that requires them to act in accordance with ethical norms and means they should be made more accountable for their conduct. [ABSTRACT FROM AUTHOR]

An argument of frustration, force majeure and/or other legal excuses may be attempted in the event that one or more of the parties to legacy contracts referencing LIBOR entered into before July 2017 that extend beyond 2021 are not treated fairly. Parties incorporating into the legacy contracts a new risk-free rate plus a conversion factor is also not without litigation risks. [ABSTRACT FROM AUTHOR]

Tackling non-financial misconduct is an increasing focus for financial regulators internationally. This legal analysis examines the statement action by the UK Financial Conduct Authority (FCA) in November 2020 to ban three individuals from working in financial services for non-financial misconduct. The FCA's broad approach is likely to present difficulties to defend actions. Equally, the cases reveal considerations for attractive counter-arguments. Both sides are left with room for manoeuvre. [ABSTRACT FROM AUTHOR]

The UK's Financial Conduct Authority (FCA) has been leading the way in nurturing and regulating FinTech. Its "Sandbox ” is one o f the innovative supervisory solutions that helps traditional and new entrants test a range o f innovative products, services and tech prior to releasing it upon the wider regulated financial services market. This article assess why, despite many calls from market participants and policymakers across the EU 27, no pan-EU Sandbox exists as o f yet and what lessons or transferable solutions the UK can offer the EU and the 27 individual Member States. [ABSTRACT FROM AUTHOR]

This article seeks to assess whether a single redress mechanism for complexfinancial disputes would provide fairer consumer outcomes than the current ad hoc Financial Conduct Authority (FCA) redress schemes. Secondly, it proposes that the most appropriate mechanism would be an improved Financial Ombudsman Service (FOS) scheme. Thirdly, this article briefly considers whether, irrespective of establishing a single redress mechanism, there are likely to exist more fundamental obstacles to achieving fairer consumer outcomes. [ABSTRACT FROM AUTHOR]

A consideration of whether the FCA ought to have the power to direct private opt-out collective redress actions to manage widespread interest rate hedging product misselling claims. [ABSTRACT FROM AUTHOR]

Following the financial crisis and a series of mis-selling and ‘rigging’ scandals in the financial services, organisational culture, and particularly the risk culture of organisations, has come to be regarded as a key issue for both financial firms and their regulators This paper considers the extent to which regulatory published notices, ‘Final Notices’ (FNs), relating to breaches of the regulatory Handbook, are able to provide lessons, or pointers, in the development of ‘appropriate’ cultures. By undertaking a qualitative content analysis of all the FNs in 2012, we examine the extent to which FNs draw attention to issues of culture, and to the regulator’s analysis of the drivers of culture published as part of its treating customers fairly (TCF) initiative. The analysis finds that, although not easy to extract, there are important learning points in FNs relating to organisational culture, and in particular to the factors driving behaviours and outcomes that are signs of poor culture. This paper suggests that, whilst it may not be for a regulator to dictate firms’ culture, it could do much more to make use of the content of FNs as a learning tool for firms; particularly in the context of its cultural framework for TCF. This would support the ‘outcomes-based’ approach being espoused by the UK’s regulators. [ABSTRACT FROM AUTHOR]

Delisting refers to cancelling a company's authorisation to be listed on a stock exchange. It combines questions of company law and securities law. In late 2013, the two most important financial markets in Europe saw significant changes to rules on shareholder protection in delisting situations. While the 2nd Senate of the German Federal Court of Justice abolished shareholder protection in delistings under company law, the United Kingdom Financial Conduct Authority bolstered minority shareholder protection based on securities regulation. This paper examines the policy reasons and the approaches in the United Kingdom and in Germany. It argues that the former is a good example of modern policy-making, in terms of both procedure and content, while the latter displays an old-fashioned understanding of financial markets regulation. The paper argues that the main reason for the Federal Court of Justice's decision was to take a step back from acting as a de facto legislature in company law, thereby accepting inconsistencies in the new legal framework. The paper concludes that there is a serious need for regulatory reform in Germany, undertaken either by the legislature or by the stock exchanges. [ABSTRACT FROM AUTHOR]

In the aftermath of the global financial crisis, financial regulation and supervision has been significantly reformed in the UK. As an important part of this reform, consumer credit, including payday loans, has been transferred to the new conduct of business regulator and supervisor, the Financial Conduct Authority. This paper considers the key rules on responsible lending and product regulation, introduced to protect the payday loans consumers. It shows that the responsible lending regime now reduces the risk that payday loans will be given to those who cannot afford the high costs involved, although responsible lending will only be fully effective if credit reference agencies hold up-to-date and correct information. Product regulation, in the form of a rollover restriction and a price cap, should make payday loans cheaper and safer for those who do use them, although, for the price cap to be most effective, steps must be taken to enhance price competition in the space below the cap. Finally, it is shown that firms are now subject to interventionist, rigorous, and consumer-centric supervision, which seems to stand a good chance of securing compliance with the new rules. [ABSTRACT FROM AUTHOR]