The FCA’s business plan 2020/2021 Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our fifth video diary, John Coley examines the key aspects of the FCA’s business plan for the forthcoming year, which focusses on the regulator’s ongoing…

Financial services: Regulation tomorrow

FINRA (and selected SEC) regulatory matters at a glance: What compliance officers need to know

By Glen Barrentine (US)

April 7, 2020

Glen Barrentine is Of Counsel in the New York office of Norton Rose Fulbright. His practice focuses broadly on SEC regulated financial service clients, including broker-dealers, securities exchanges, municipal advisors and investment advisers. Glen frequency represents clients in connection with SEC and FINRA enforcement proceedings and other contentious regulatory inquiries, purchases and sales, and the preparation and negotiation of common industry agreements. He also provides clients with counseling and advice across the full range of…

Financial services: Regulation tomorrow

Japanese Financial Services Agency and the Bank of Japan – Summary of Survey Results on the Use of LIBOR and Main Actions Needed

By Claire Edwards & Davide Barzilai (UK)

April 7, 2020

The Japanese Financial Services Agency (JFSA) and the Bank of Japan have published the results of a survey on the use of LIBOR by financial institutions (including banks, securities companies insurance companies and others), their LIBOR exposures and LIBOR transition progress. The survey enables supervisory authorities to quantify the number of contracts that reference LIBOR and preparedness for the transition away from LIBOR to alternative reference rates. Key findings include: contracts referencing EUR, GBP and…

Financial services: Regulation tomorrow

New FCA client assets webpage

By Hannah Meakin (UK)

April 7, 2020

On 6 April 2020, the FCA published a new web page concerning client assets and COVID-19. The FCA reports that it has received queries on client assets (CASS) compliance related to the current disruption caused by the COVID-19 pandemic. On the web page the FCA summarises queries received on the following topics and its position on them: Handling cheques; CASS audit reports; Physical asset reconciliations; Depositing client money; Notification of CASS breaches; CASS firm classification;…

Financial services: Regulation tomorrow

FCA expectations regarding funds in light of coronavirus

By Iona Wright (UK) & Imogen Garner (UK)

April 7, 2020

On 6 April 2020, the FCA published a webpage setting out its expectations regarding funds in light of the COVID-19 pandemic. The FCA reports that firms have raised queries that focus mainly on the associated challenges that they are facing both operationally and as a result of significantly increased volatility in global markets. The web page covers: delaying annual and half-yearly fund reports; virtual general meetings; ensuring compliance with limits on value at risk (VaR);…

Financial services: Regulation tomorrow

FCA Business Plan: Retail and consumer observations

By Lisa Lee Lewis (UK) & John Coley (UK)

April 7, 2020

On 7 April 2020, set against a backdrop of unprecedented challenge, the FCA released its Business Plan for 2020/21. From a retail consumer perspective the FCA notes its main priorities are to ensure that financial services businesses give them the support they need and that customers don’t fall for scams. Key actions the FCA has taken recently include: Proposing guidance around a range of temporary measures to support users of consumer credit products Setting…

Financial services: Regulation tomorrow

Regulating in a time of unpresented challenge: FCA 2020/21 Business Plan

By Jonathan Herbst (UK), John Coley (UK) & Lisa Lee Lewis (UK)

April 7, 2020

On 7 April 2020, the FCA published its Business Plan for 2020/21. The document is perhaps shorter and higher-level than seen in the past, but this also has to be set against the context of the evolving impact of Coronavirus and the difficulties and uncertainties this is creating. Indeed, the FCA recognises it may need to update the plan if necessary depending on how the situation develops. Taking the key parts in turn, the…

Financial services: Regulation tomorrow

Bank of England consultation on credit adjustment spread methodologies for fallbacks in cash products referencing GBP LIBOR – Summary of responses

By Claire Edwards & Davide Barzilai (UK)

April 7, 2020

The Working Group on Sterling Risk-Free Reference Rates (Working Group) has published a consultation paper for the sterling cash market (including loans, bonds, and securitisations) considering four methodologies that could be used to calculate the credit adjustment spread for fallbacks from GBP LIBOR to SONIA in cash products maturing beyond the end of 2021. The consultation was open from 16 January 2020 to 6 February 2020 and attracted 39 responses from a range of market…

Financial services: Regulation tomorrow

Coronavirus: business continuity and outsourcing

By Hannah McAslan (UK)

April 7, 2020

The FCA expects all firms to have business continuity arrangements and contingency plans in place to deal with major events. The FCA’s expectations for firms dealing with the impact of COVID-19 sits within this broader regulatory context. The FCA and the PRA are currently consulting on a specific operational resilience regime (see in particular, Consultation Paper CP19/32, which is now due to run until 1 October 2020). “Operational resilience” means “the ability…to prevent, adapt, respond…

Financial services: Regulation tomorrow

Coronavirus and shareholder rights

By Hannah McAslan (UK)

April 7, 2020

The coronavirus outbreak has upended the AGM season, which traditionally commences in April in the northern hemisphere. Many companies are grappling with whether to stage the events when most countries have restricted travel and banned mass gatherings, or to postpone the meetings until restrictions are lifted. We set out below, a summary of some of the issues that firms are facing. Hold a virtual AGM or postpone the meeting Whilst as a matter of English…

Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

Blog Authors

Adapting to change is business as usual: keeping you connected throughout the pandemic

FINRA (and selected SEC) regulatory matters at a glance: What compliance officers need to know

Japanese Financial Services Agency and the Bank of Japan – Summary of Survey Results on the Use of LIBOR and Main Actions Needed

New FCA client assets webpage

FCA expectations regarding funds in light of coronavirus

FCA Business Plan: Retail and consumer observations

Regulating in a time of unpresented challenge: FCA 2020/21 Business Plan

Bank of England consultation on credit adjustment spread methodologies for fallbacks in cash products referencing GBP LIBOR – Summary of responses

Coronavirus: business continuity and outsourcing

Coronavirus and shareholder rights

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