In this blog post, we round-up key forthcoming developments in the UK and at EU and International levels in financial services regulation which are expected to happen in March and April 2023.
Proposed amendments to MLRs – New change in control regime for cryptoasset businesses
At the moment, the FCA’s only powers over crypto businesses which do not carry on investment, payment services, e-money or other UK regulated business come from its role as their anti-money laundering and counter-terrorist financing supervisor. Continue reading
FCA’s data lead sets out the regulator’s data agenda
On 2nd November 2021, Jessica Rusu, the Chief Data, Information and Intelligence Officer at the Financial Conduct Authority (FCA) spoke at the Chief Data Officer Exchange for Financial Services Forum. Continue reading
Bank of England and HMT announce CBDC Taskforce amid new plans to accelerate digitalisation of UK financial services
Yesterday the Bank of England (BoE) and HM Treasury (HMT) released a statement announcing the joint creation of a Central Bank Digital Currency (CBDC) Taskforce. The Chancellor has also announced ambitious and complementary plans to encourage growth of UK fintechs and “cement the UK’s position as the world’s pre-eminent financial centre.”
FCA publishes technology change management review
On 5 February 2021, the Financial Conduct Authority (FCA) published a report titled ‘Implementing Technology Change’, which sets out findings from its review into how financial services firms manage technology change, the impact of change failures, and industry practices to help reduce the impact of incidents resulting from change management. Continue reading
FINTECH REGULATION – WHAT’S COMING UP?
Fintech is a rapidly developing area where developments in the regulatory regime are ongoing. We have created a timeline of key UK and European regulatory milestones to watch out for over the coming months and years.
HMT consultations on financial promotions: approving promotions and promoting cryptoassets
HM Treasury has announced two consultations on possible changes to the UK financial promotions regime:
- a consultation on limiting the scope of firms that can approve financial promotions of unauthorised persons; and
- a consultation on extending the financial promotions regime to include unregulated cryptoassets.
The deadline for responses to both consultations is 25 October 2020.
These consultations reflect the continued focus by the Financial Conduct Authority (FCA) on marketing and the related risks to consumers, particularly following the mini-bond scandal, as well as the continued focus on the regulation of fintechs and cryptoasset technologies. Continue reading
FCA finalised guidance for payments firms: safeguarding customer funds and Covid-19
The FCA recently issued its finalised guidance for payments and e-money firms on safeguarding customer funds and Covid-19. The guidance is designed to mitigate, in the short-term, concerns that some firms are not complying with the Payment Services Regulations 2017 (PSRs) and Electronic Money Regulations 2011 (EMRs) safeguarding rules in the way the FCA expects. It is also designed to help prevent potential harm to customers in the event of insolvencies caused by Covid-19.
Charles Randell considers the FCA’s role in supporting the financial system’s recovery from Covid-19
On 16 June 2020, Charles Randell, Chair of the FCA and PSR, delivered a speech addressing a virtual roundtable of bank chairs, hosted by UK Finance. Mr Randell considered the immediate impact of Covid-19 on the financial services sector in the UK and the FCA’s role in the recovery of the industry. Continue reading
IOSCO proposes updated Outsourcing Principles as Covid-19 drives operational resilience to the top of the agenda
Having initially delayed its planned consultation exercise to allow the financial services sector to focus on responding to Covid-19, the International Organization of Securities Commissions (IOSCO) subsequently found the pandemic a catalyst to proceed. Therefore, at the end of May, IOSCO launched its consultation on proposed updates to the 2005 Outsourcing Principles for Market Intermediaries and the 2009 Outsourcing Principles for Markets; feedback on the proposed new Outsourcing Principles (OPs) is requested on or before 1 October 2020. The decision to proceed reflects the acknowledgement that outsourcing is a key element for consideration when assessing operational resilience across the sector.
This post gives a high level summary of the consultation, with a link to our briefing that focuses in more detail on: the scope of application; IOSCO’s definition of outsourcing; intragroup arrangements; concentration risk; and access and audit rights. To provide additional context to IOSCO’s proposals, the associated briefing also catalogues relevant proposals and initiatives which are running concurrent to the consultation exercise.