Today (just to note TR19/4 was published on 4/6), the Financial Conduct Authority (FCA) published its latest thematic review, TR19/4, which looks at money laundering (ML) risks in capital markets. The FCA visited 19 market sector operators, including investment banks, recognised investment exchanges, clearing and settlement houses, trade bodies, inter-dealer brokers, trading firms and a custodian bank. The report noted that while the nature of some of the products and markets may be considered…

On 14 May 2019, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2019/758 of 31 January 2019 supplementing Directive (EU) 2015/849 with regard to regulatory technical standards for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries. The Delegated Regulation lays down a set of additional measures, including minimum action, that…

Our Financial Services team invite you to attend our 40 minute briefing on the future of market conduct. We are now in a critical period where the FCA is focussing on how firms have embedded the reforms that were introduced in 2018. For example, the FCA’s CEO, Andrew Bailey, has recently stated that the regulator has been carrying out a multi-firm review into the MiFID II rules on investment research and that formal feedback will…

One key governance aspect of the FCA’s 2019/20 Business Plan is the extension of the Senior Managers & Certification Regime (SM&CR) to all solo-regulated firms in December this year. SM&CR is seen by the FCA as a “catalyst for change and an opportunity to establish healthy cultures and effective governance in firms by encouraging greater accountability and setting a new set of personal conduct”. A core aim is to reduce consumer harm and strengthen market…

In our extended briefing this Wednesday, we are joined by David Blunt (Head of Conduct Specialists Department, FCA) who will discuss the purpose of the SM&CR and the importance of preparing for the new regime, ensuing that it is embedded into firms’ DNA as a business as usual process. Breakout sessions will follow involving colleagues from our employment law and compliance teams. For more information on the event, or to register your attendance, please click…

On 15 April 2019, HM Treasury published its consultation on the steps the UK Government proposes to take to meet the UK’s expected obligation to transpose the Fifth Anti-Money Laundering Directive (5MLD) into national law. The 5MLD makes a number of changes to the Fourth Anti-Money Laundering Directive which was mentioned in our update last year (see here). In implementing the 5MLD, the UK Government is catering for the scenario where an implementation period…

On 1 April 2019, the FCA began regulating claims management companies (CMCs) in England, Scotland and Wales. The FCA reports that more than 900 CMCs have registered for temporary permission to continue operating while they go through the FCA authorisation process. The following firms were required to register with the FCA for temporary permission: firms that were authorised to carry on claims management activity under the Compensation Act 2006; firms that would have been required…