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Thinking - Blog

Abridged Advice and Workplace Pension Schemes - digging deeper into the FCA's Latest Pension Transfer Consultation Paper

Published on 15 Aug 2019.

Now that the dust has settled on the FCA's latest Consultation Paper on Pension Transfers (CP19/25), is there more to the regulator's proposals than first met the eye?

Thinking - Blog

The Senior Managers and Certification regime: The Final Countdown

Published on 08 Aug 2019. By Lucy Kerr, Senior Associate

With only a few months to go until the Senior Managers and Certification Regime (SMCR) is extended to apply to all sole-regulated firms, the FCA has released further near-final rules and produced a report on its findings as to how firms in the banking sector have embedded the regime since March 2016.

Thinking - Blog

Court of Appeal guidance on liability of financial advice networks for appointed representatives

Published on 31 Jul 2019. By George Smith, Partner

In what circumstances is a financial advice network liable for the acts and omissions of its appointed representatives (ARs)? The Court of Appeal has today provided valuable guidance for those operating this business model. The decision will be welcomed by financial advice networks in confirming, in particular, that they are able to place restrictions on the business of ARs for which they have accepted responsibility.

Thinking - Blog

FCA announces new rules on peer-to-peer lending

Published on 08 Jul 2019.

The FCA has published its policy statement on peer-to-peer (P2P) lending following a lengthy public consultation into the crowdfunding industry in general. The policy statement introduces a large number of new rules for P2P platforms and includes restrictions on direct marketing to non-sophisticated / high net worth investors unless they are receiving regulated advice, and ensuring such investors do not place more than 10% of their investable capital in P2P platforms.

Thinking - Blog

Brexit: A blessing or a curse for accountants?

Published on 08 Jul 2019. By Matthew Watson, Partner

A recent survey has indicated that the accountancy profession is well placed to accommodate the uncertainties surrounding Brexit.

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New pension transfer data – FCA's concerns remain

Published on 20 Jun 2019. By David Allinson, Partner

The FCA has published the results of data received from firms carrying out DB transfers and set out the next steps in its supervisory work.

Thinking - Blog

FCA and PRA jointly fine bank for repeated outsourcing failings

Published on 12 Jun 2019.

R. Raphael & Sons PLC (Raphaels), one of the UK's oldest lenders, has been criticised and fined jointly by the FCA and PRA after it was found that the bank had failed to manage its outsourcing arrangements properly.

Thinking - Blog

Financial Reporting Council considers the test for "misconduct"

Published on 20 May 2019. By Robert Morris, Partner and Matthew Watson, Partner

A recent Financial Reporting Council (FRC) Tribunal decision provides some welcomed clarity on the distinguishing features of misconduct and negligence for those in the accountancy profession.

Thinking - Blog

All bets are off for binary options

Published on 04 Apr 2019. By Lucy Kerr, Senior Associate

Following consultation, the Financial Conduct Authority (FCA) announced on 29 March 2019 that, as of 2 April 2019, the sale, marketing and distribution of binary options (including securitised binary options) to retail consumers will be prohibited indefinitely.

Thinking - Blog

FCA promises "greater clarity" over Crypto regulation

Published on 31 Jan 2019.

The Financial Conduct Authority (FCA) has made further progress in relation to the regulation of cryptocurrencies such as bitcoin, in an attempt to tackle the growing market. The aim of regulation will be to provide greater clarity to both the industry and consumers.

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Pension Transfers – FCA provides an end of year report

Published on 14 Dec 2018. By Matthew Watson, Partner

As the end of the calendar year approaches the FCA's recent publication indicated that the regulator remains concerned as to the suitability of pension transfer advice. If the FCA's recent review was an end of term school report this would be best summed up as "could do much better".

Thinking - Blog

Regulation of cryptocurrencies inches ever closer

Published on 21 Nov 2018.

The long awaited regulation of cryptocurrencies has moved one step closer, with the Financial Conduct Authority (FCA) announcing plans to consult on regulation before the clock strikes twelve on 31 December 2018. The news comes after pressure for regulation has grown following a $15 billion crash.

Thinking - Blog

The Barclays Case – Criminal Corporate Liability

Published on 20 Nov 2018. By Sam Tate, Partner and Lucy Kerr, Senior Associate

The UK Serious Fraud Office's (SFO) final attempt to prosecute Barclays in connection with Qatari loans ended on October 26 with the rejection of its High Court application to reinstate criminal charges against the bank.

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Anti-money laundering legislation meets the art market

Published on 19 Nov 2018. By Davina Given, Partner

The art market is often described as the last unregulated market. Even if that is true, it is set to change in the next couple of years, with the market being brought firmly within the ambit of European Union anti-money laundering legislation.

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Crypto Assets and ICOs as seen by the SMSG - Part 2

Published on 09 Nov 2018. By Ella Shanks, Senior Associate

On 19 October 2018, the Securities and Markets Stakeholder Group (SMSG) published a report on initial coin offerings (ICOs) and crypto assets. The report is a useful one-stop shop for relevant definitions, classifications and statistics and we summarise the highlights in this two-part series.

Thinking - Blog

Interest-only mortgages - the new PPI?

Published on 08 Nov 2018.

A new wave of complaints is hitting the mortgage market, concerning interest-only mortgages taken out before the financial crisis. Why is this happening and what should we look out for?

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Crypto Assets and ICOs as seen by ESMA's SMSG

Published on 05 Nov 2018. By Ella Shanks, Senior Associate

On 19 October 2018, ESMA's Securities and Markets Stakeholder Group (SMSG) published a report on initial coin offerings (ICOs) and crypto assets. The report is a useful one-stop shop for relevant definitions, classifications and statistics and we summarise the highlights in this two-part series.

Thinking - Blog

FCA proposes FOS award limit increase to £350,000

Published on 17 Oct 2018. By David Allinson, Partner

The FCA has announced plans for an increase in the current FOS compensation cap. Currently standing at £150,000, the changes would see the limit increase to £350,000, an increase of 133%. It is also proposed that the limit will further increase automatically each year in line with inflation.

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Relief for Skilled Persons as the Court of Appeal rules they are not amenable to judicial review

Published on 04 Oct 2018. By Davina Given, Partner and Lucy Kerr, Senior Associate

In what circumstances might skilled persons appointed under FSMA be subject to judicial review? The Court of Appeal recently explored the vulnerability of skilled persons to judicial review and dismissed an application for judicial review against KPMG, acting as a skilled person on behalf of Barclays Bank, as it found the framework in which KPMG operated was not sufficient to bring it into the public law arena.

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ESMA renews restrictions on CFDs and binary options

Published on 02 Oct 2018. By Lucy Kerr, Senior Associate

The European Securities and Markets Authority (ESMA) has decided to renew intervention measures, which restrict the sale of contracts for difference (CFDs) and binary options to retail investors, for a further three months.

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Pension watchdogs launch joint advertising campaign to warn against scammer tactics

Published on 20 Aug 2018. By Sarah Dowding, Senior Associate

The Financial Conduct Authority and The Pensions Regulator have launched a joint TV advertising campaign to raise awareness about pension scams and the common tactics deployed by fraudsters.

Thinking - Blog

EIOPA Report on Cyber Insurance raises awareness and understanding of cyber risk in the European market

Published on 08 Aug 2018. By Bethan Griffiths, Senior Associate

The European Insurance and Occupational Pensions Authority ("EIOPA") has published a report "Understanding Cyber Insurance – A Structured Dialogue with Insurance Companies", which heralds its first attempt to enhance understanding of cyber risk with a focus on the European market.

Thinking - Blog

New rules for peer-to-peer lending announced by FCA

Published on 01 Aug 2018.

The popularity of peer-to-peer (P2P) lending has increased exponentially in recent years, with nearly £10 billion being transferred through such platforms in the past ten years. In an attempt to fix "increasingly complex business structures", the FCA has announced new plans for new rules for peer-to-peer (P2P) lending.

Thinking - Blog

Accountants, auditors and actuaries beware: the FRC continues to show its teeth, as its future stands in the balance

Published on 18 Jul 2018. By Rachel Ford, Partner

In widely publicised news, the Financial Reporting Council (FRC) continues to levy record high fines and has cast criticism on a number of firms. What appears to be an unforgiving stance taken by the regulator seems to come in the wake of the review into whether or not it should be disbanded, or folded into another regulatory organisation.

Thinking - Blog

The future of SIPPs – FCA responds to the Work and Pensions Committee

Published on 05 Jul 2018. By Rachael Healey, Partner

A couple of weeks ago we reported on 5 pointed questions raised by the Work and Pensions Committee of the FCA in relation to the SIPP market. Those questions included whether or not the FCA was considering banning non-standard investments in SIPPs. The FCA has now responded. The response includes the FCA's views on the due diligence it expects of SIPP providers when it comes to non-standard investments.

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IMF provides framework to analyse cyber risk for the financial sector

Published on 26 Jun 2018.

The increased risk of cybercrime is well known to all. Attacks against large companies has meant that the International Monetary Fund have taken action by publishing a working paper which predicts the average annual losses to financial institutions.

Thinking - Blog

Action required: mandatory disclosure of cross-border tax planning arrangements – effective (very) soon

Published on 12 Jun 2018. By Ben Roberts, Partner

New EU rules providing for mandatory disclosure of certain cross-border tax planning arrangements by intermediaries and taxpayers will enter into force on 25 June 2018. Although reports to tax authorities will not be required until July/August 2020, the retrospective nature of the new rules means that reportable arrangements implemented after 25 June could be reportable in this first batch of (2020) reports. Preparations for the new regime should therefore begin now.

Thinking - Blog

ESMA formally adopts new measures to restrict the sale of binary options and CFDs

Published on 08 Jun 2018. By Lucy Kerr, Senior Associate and Charlotte Thompson, Associate

On 1 June 2018, the European Securities and Markets Authority (ESMA) formally adopted new measures to prohibit the sale of binary options and to place restrictions on the provision of contracts for difference (CFDs) to retail investors. The measures will apply to binary options from 2 July 2018 and CFDs from 1 August 2018.

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EFAMA publishes revised Stewardship Code

Published on 08 Jun 2018.

On 31 May 2018, the European Fund and Asset Management Association (EFAMA) published its Stewardship Code, setting out best practice principles for asset managers (the Code).

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Pension watchdogs formalise information sharing

Published on 31 May 2018. By Sarah Dowding, Senior Associate

The Pensions Ombudsman and The Pensions Regulator have signed an information-sharing agreement in light of the recent rise in pension scams. The agreement will see the organisations share information about complaints and concerns with the aim of protecting scheme members.

Thinking - Blog

SIPPs – the work and pensions committee asks some pointed questions of the FCA

Published on 31 May 2018. By Rachael Healey, Partner

The Work and Pensions Committee has sent a letter to the FCA following its review of defined benefit pension transfers raising 5 pointed questions in relation to SIPPs.

Thinking - Blog

Crypto and Blockchain

Published on 25 May 2018.

In February, the House of Commons Treasury Committee announced an inquiry in to digital currencies. The inquiry covers the role of digital currencies in the UK and the potential impact of distributed ledger technology (blockchain) on financial institutions and financial infrastructure.

Thinking - Blog

Cybercrime and its impact on D&O insurance

Published on 15 May 2018.

Cybercrime has risen in recent years, perhaps more than anybody ever expected. For a long time, the focus was on defending businesses against such crimes. Now, with more people aware of cybercrime and the risks, insurers are becoming increasingly aware of the impact such crime may have on D&O policies.

Thinking - Blog

FSCS – reviewing the funding of the fund of last resort

Published on 09 May 2018. By Sarah Dowding, Senior Associate

In its third consultation paper on this topic, the FCA has recently confirmed that: - FSCS claims in respect of investment advice will benefit from an increased compensation cap, from £50,000 to £85,000; - product providers will have to start making contributions to FSCS funding for insurance and investment advice claims; and - it proposes new rules to prevent personal investment firms' insurers excluding cover for claims where the firm or a third party becomes insolvent.

Thinking - Publication

Cryptocurrency pre-ICO funding – a regulatory overview

Published on 04 May 2018.

The FCA has issued a discussion paper targeted at the non-workplace pension market. The paper marks the start of the FCA's work looking at whether there is harm in the non-workplace pension market and to better understand the potential presence, nature, extent and cause of any harm.

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The FCA publishes its 2018/19 Business Plan

Published on 23 Apr 2018. By Charlotte Thompson, Associate

On 9 April 2018 the FCA published its Business Plan for 2018/19, demonstrating its continued focus on culture and governance in firms, tackling financial crime and the role of technology in the financial services industry.

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FCA success in the High Court: Compensation of £16.9m awarded to misled investors

Published on 16 Apr 2018. By Lucy Kerr, Senior Associate

A five-year court battle between the Financial Conduct Authority ("FCA") and Capital Alternatives Limited concluded on 26 March 2018 when the High Court used its restitution powers under the Financial Services and Markets Act 2000 to award compensation to investors who lost money invested with Capital Alternatives.

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ESMA cracks down on the sale of binary options and CFDs to retail investors

Published on 29 Mar 2018. By Lucy Kerr, Senior Associate

The European Securities and Markets Authority (ESMA) has announced its intention to prohibit the sale of binary options to retail investors and to place restrictions on the sale of contracts for difference (CFDs). This is the first use of ESMA's new intervention powers under MiFID II.

Thinking - Blog

FCA reviews approach to enforcement and penalties

Published on 28 Mar 2018. By Sarah Dowding, Senior Associate

The FCA has announced plans in its recent consultation paper on enforcement to review how it applies penalties which have gone from record highs to record lows over the past 5 years.

Thinking - Blog

Changes on the horizon - FCA consults on non-workplace pensions

Published on 22 Feb 2018. By Rachael Healey, Partner

The FCA has issued a discussion paper targeted at the non-workplace pension market. The paper marks the start of the FCA's work looking at whether there is harm in the non-workplace pension market and to better understand the potential presence, nature, extent and cause of any harm.

Thinking - Blog

ESMA to use new powers to attack the sale of CFDs and binary bets to retail investors

Published on 25 Jan 2018. By Lucy Kerr, Senior Associate

ESMA has launched a public consultation on measures to protect retail investors investing in contracts for difference (CFDs) and binary bets. Potential changes include wide-ranging restrictions on the marketing and sale of CFDs, and a complete prohibition on the sale of binary bets to retail investors. An intervention would mark ESMA's first use of its new powers under MiFID II, which came into force on 3 January.

Thinking - Blog

The FCA pledges to take action against providers of contracts for difference

Published on 12 Jan 2018. By Lucy Kerr, Senior Associate

The FCA has concluded that consumers are at "serious risk of harm" due to the poor practices of some providers and distributors of CFDs. The regulator will take further action against at least one firm in its latest crack-down on these "complex, high-risk" products.

Thinking - Blog

Initial Coin Offerings – the digital financing process under global scrutiny

Published on 08 Dec 2017. By Rachel Ford, Partner

In an era of social media platforms and the like, the technological world creeps into its corporate counterpart of today. Initial Coin Offerings (ICOs) storm the corporate world by force, but what does the future hold for the new phenomenon?

Thinking - Blog

FCA revisits FSCS funding proposals, and abandons plans for significant changes to professional indemnity insurance requirements

Published on 01 Nov 2017. By Robert Morris, Partner

The FCA has published a second consultation paper on the thorny subject of FSCS funding. Although not widely reported so far, the new consultation makes it clear that the FCA will not, after all, consult on significant changes to personal investment firms' professional indemnity insurance requirements.

Thinking - Blog

FCA allows confidential report to be scrutinised by Treasury Select Committee

Published on 31 Oct 2017.

The FCA has allowed the Treasury Select Committee to review its s.166 report into RBS' Global Restructuring Group (GRG) and has published an interim summary of the report. It is possible that the threat of publication will play on the minds of firms subject to s.166 reports, which may reduce cooperation with skilled persons and therefore the efficacy of this investigatory power.

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The FCA makes clear its expectations of financial advisers

Published on 18 Oct 2017. By Charlotte Thompson, Associate

FCA, regulatory, financial services

Thinking - Blog

FCA criticised by Complaints Commissioner for its handling of enforcement limitation issues

Published on 04 Oct 2017. By Lucy Kerr, Senior Associate

The Office of the Complaints Commissioner recently upheld two complaints against the FCA for making a "serious mistake" in its management of limitation issues for two connected investigations. The Commissioner criticised the FCA not only for its mismanagement of the limitation issue, but also for the unnecessary delays in concluding its own internal investigation into these complaints.

Thinking - Blog

DB Transfers - now what?

Published on 04 Oct 2017. By Rachael Healey, Partner

We know that the FCA is looking closely at defined benefit transfers; we already have the FCA's review of redress methodology and the defined benefit transfer rules. We now have the results of the FCA's review, into defined benefit transfers and it makes for uncomfortable reading for the financial services industry.

Thinking - Blog

MiFID II & Inducements

Published on 21 Sep 2017. By Matthew Watson, Partner

FCA MiFiD Inducements Consultation Paper

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Courtney So

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