Welcome to the UK Regulation Round Up, a regular bulletin highlighting the latest developments in UK regulation for alternative asset managers.
The start of 2017 saw a number of regulatory developments including important updates on use by the FCA of its consumer credit powers.
Key developments in January 2017:
11 January
The FCA published a statement drawing attention to Chapter 4.3 of the Code of Market Conduct which relate to “cold-shouldering” following the statement issued by The Panel on Takeovers and Mergers on 10 January 2017.
13 January
The FCA announced details of a Warning Notice issued to an unnamed individual engaged in market abuse.
13 January
The FCA published its MiFID II: application and notification user guide to help firms decide which applications and notifications relating to MiFID II they should make and to explain how to do so. Firms will be able to apply for authorisation and variations of permission (VoPs) from 30 January 2017, and for passport notifications from 31 July 2017.
16 January
The FCA and PRA launched a joint consultation paper on the management expenses levy limit for 2017/18 in relation to the Financial Services Compensation Scheme.
17 January
The FCA commenced its first prosecution relating to unlicensed consumer credit lending.
17 January
The third deferred prosecution agreement to be concluded in the UK (between the UK Serious Fraud Office and Rolls Royce plc) was approved by the Court.
19 January
The FCA’s Director of Enforcement used a speech to reiterate that numbers of investigations may rise.
19 January
The FCA issued finalised guidance on default notices under guarantor loans.
23 January
The FCA issued a consultation paper seeking feedback on aspects of the operation of the client assets regime, with particular reference to the client money distribution rules and the special administration regime.
24 January
The FCA published an alert highlighting its requirements for firms advising on pension transfers.
26 January
The FCA published its Handbook Notice for January 2017. Among the changes, the FCA confirmed that from 29 June 2017, full-scope UK AIFMs will, in certain circumstances, need to provide Annex IV reports for non-EEA AIFs that it manages but does not market in the EEA. From the same date, above-threshold non-EEA AIFMs marketing feeder AIFs into the UK will, in certain circumstances, be required to provide Annex IV reports on the master AIF as well.
30 January
Andrea Enria, chairman of the European Banking Authority, said in a speech that the EU should create a taxpayer-backed fund to buy bad loans from struggling lenders at their “real economic value” — a level to be determined by the fund after doing due diligence on the loans to enhance transparency of non-performing loans.
Further afield, on 23 January, the US Federal Reserve Chair Janet Yallen emphasised the importance of blockchain technology. Similar comments were echoed at the London Blockchain 2-day Expo on 26 January, with a particular focus on smart contracts and digital disruption in the FIG sector.
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