This weekly update from Clyde & Co's Financial Services Regulatory Team summarises new developments as reported by the FCA, the PRA, the UKLA, the Upper Tribunal, the Financial Ombudsman Service and the London Stock Exchange over the past week, with links to the full documents where these are available.
We hope that you will find this update useful.
Consultation papers:
No new developments this week.
Discussion papers:
No new developments this week.
Policy statements:
No new developments this week.
Press releases:
7 May: Statement on consultation paper 12/19: Restrictions on the retail distribution of unregulated collective investment schemes and close substitutes. The FCA has published a statement providing an update on their approach to a consultation on proposed restrictions to the marketing of unregulated collective investment schemes and close substitutes. It states that there are still important issues to consider and that proposals were not submitted to the FCA Board in April as originally planned. However, the final policy statement will be published as soon as possible this year, and implementation dates for any new rules will be amended accordingly. Furthermore, the FCA noted that whilst it remains committed to providing clarity for firms as soon as possible, this is a complex area and it is important to allow the time to get it right.
http://www.fca.org.uk/news/firms/statement-on-consultation-paper-12-19
Speeches:
No new developments this week.
Bulletins and newsletters:
No new developments this week.
Final notices:
10 May: Montague Capital Limited. The FCA has published a Final Notice cancelling Montague Capital Limited's permission following a decision that it was failing to satisfy the threshold conditions. This was because Montague Capital Limited failed to pay regulatory fees and levies owed to the Authority totalling GBP 1,886.73. In addition to this, the FCA found that Montague Capital Limited had not been open and co-operative in all its dealings with the Authority, in that it failed to respond to the Authority's repeated requests for the overdue balance. The FCA concluded that Montague failed to comply with Principle 11 and satisfy the Authority that it was ready, willing and organised to comply with the requirements and standards required under the regulatory system. These failures, lead the Authority to conclude that Montague Capital Limited has failed to manage its business in such a way as to ensure that its affairs are conducted in a sound and prudent manner, that it is not a fit and proper person, and that it is therefore failing to satisfy the threshold conditions in relation to the regulated activities for which it has had a permission.
http://www.fca.org.uk/static/documents/final-notices/montague-capital-limited.pdf
Application refusals:
No new developments this week.
Approved person refusals:
No new developments this week.
Research publications:
No new developments this week.
Consumer research:
No new developments this week.
Other FCA and PRA publications:
9 May: Applying for a waiver. The FCA has published information on when it will consider granting a waiver or modification to a regulatory rule. It has noted that if a waiver were to be granted, then it is likely that conditions would be attached. The FCA will consider granting a waiver or modification where a firm can demonstrate that:
- Compliance with the rule would be unduly burdensome or would not achieve the rule's purpose; and
- The direction would not adversely affect the advancement of any of the FCA's operational objectives
However, waivers or modifications cannot be granted for rules that implement European Directive requirements. Applications for a waiver or modification should be made by completing the waiver application form which can be found on the FCA website. A full list of waivers that have been granted is published and updated every month.
http://www.fca.org.uk/firms/being-regulated/waiver
UKLA publications:
No new developments this week.
Upper Tribunal (Tax and Chancery Chamber) (formerly Financial Services and Markets Tribunal (FSMT)):
No new developments this week.
Financial Ombudsman Service (FOS):
No new developments this week.
London Stock Exchange (LSE):
No new developments this week.
Legislative updates
No new developments this week.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
