On May 20, 2016, the Financial Conduct Authority published a
consultation paper outlining proposed changes to the rules and
guidance in the Client Assets sourcebook and the Collective
Investment Schemes sourcebook (COLL), following the adoption of the
UCITS V (the Undertakings for Collective Investment in Transferable
Securities V Level 2 Regulation). The consultation paper also
proposes minor changes to the Senior Management Arrangements
Systems and Controls sourcebook (SYSC) and consequential amendments
in COLL and the Investment Funds sourcebook (FUND) to reflect
certain measures in the Securities Financing Transactions
Regulation. The UCITS V Level 2 Regulation sets out additional,
detailed requirements for UCITS management companies and
depositaries and will apply to UCITS management firms from October
13, 2016. Requirements include, for example, minimum terms in the
contract between a management company and depositary, detailed
oversight, cash monitoring and safe-keeping requirements for
depositories and requirements for independence between management
companies and the depositaries.
The FCA has proposed consequential amendments to CASS, including
disapplying certain CASS rules and guidance to ensure consistency
with requirements under the UCITS V Level 2 Regulation. The FCA has
also proposed guidance to signpost the conditions for meeting the
independence requirements under the UCITS V Level 2 Regulation.
Minor amendments to SYSC will set out circumstances where a UCITS
management company must appoint a remuneration committee. Lastly,
the FCA is consulting on transplanting SFTR provisions into COLL
which require managers of UCITS and Alternative Investment Funds to
disclose details of their use of Securities Financing Transactions
and total return swaps in funds' pre-contractual documents and
periodical reports to investors. Responses to the consultation are
due by July 19, 2016. The FCA intends to publish a policy statement
between July and September 2016.
The implementation of the mandatory exchange of initial and
variation margin for non-cleared OTC derivative trades in the EU
commenced on 4 February for financial counterparties with the
largest derivatives portfolios.
On February 9, 2017, HM Treasury published a paper summarizing responses to its consultation on the transposition of the revised MiFID and three draft statutory instruments to facilitate transposition.
We consider below the circumstances in which a person may hold an "unpaid vendor lien", the effect of such a lien following the Supreme Court case of Menelaou v Bank of Cyprus UK Ltd  EWHC 2656...
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