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Use it or lose it: FCA accelerates crack down on unused regulatory permissions

By Chris Webber and Mariyam Harunah on Posted in Regulation
The Financial Conduct Authority’s new powers to more swiftly cancel or change firms’ regulatory permissions have now come into effect. These powers are particularly aimed at firms that have permissions they are not using. Firms can be required to prove they are carrying out the regulated activities they have permissions for, or risk losing their … Continue Reading

FCA consults on guidance for firms who seek to limit their liabilities

By Chris Webber and Mariyam Harunah on Posted in Regulation
The Financial Conduct Authority has published proposed guidance on the use by firms of compromises to manage their liabilities. Compromises include arrangements with creditors and/or shareholders, such as Schemes of Arrangement, Part 26A Restructuring Plans, and Creditors Voluntary Arrangements (CVAs). The Guidance is aimed at FCA-regulated firms that seek to limit their liabilities by using … Continue Reading

A ‘Fundamental Shift’ in Financial Regulation – Further FCA Consultation on New Consumer Duty

By Chris Webber and Katherine Wakeham on Posted in Regulation
2022 looks set to be a busy year for regulated firms dealing with retail customers. Following its initial consultation in May 2021, on 7 December 2021 the FCA issued a further consultation (CP21/36), announcing its desire to “fundamentally shift” the mindset of regulated firms, by implementing a new consumer duty later this year.… Continue Reading

The FCA Perimeter Report 2020/21 – Key Points for Firms

By Chris Webber and Michael Davar on Posted in Regulation
The scope of the FCA’s powers and remit is not a simple matter, as the FCA readily acknowledges. The FCA’s regulatory “perimeter” derives primarily from from FSMA and the universe of secondary legislation surrounding it, particularly the Regulated Activities Order (“RAO”). However it also derives powers and responsibilities from various UK and on-shored EU-legislation in … Continue Reading

PRA increases pressure on firms to improve regulatory reporting processes

By Chris Webber and Rose Chaudry on Posted in Banking, Regulation
The Prudential Regulation Authority (PRA) recently a Dear CEO letter titled “Thematic Findings on the reliability of the regulatory reporting“, outlining the current inadequacy of finance firms’ regulatory reporting procedures and the importance of comprehensive processes. The letter summarizes the PRA’s findings following its investigations carried out since October 2019, and a number of s.166 … Continue Reading

LCF mini-bond holders withdraw appeal against FSCS

By Chris Webber and Maria Shorter on Posted in Investment Management, Regulation
The Financial Services Compensation Scheme (FSCS) confirmed on 23 August that London Capital and Finance (LCF) mini-bond holders have withdrawn their appeal against an important March 2021 High Court decision dismissing their judicial review claim.  FSCS confirmed that the litigation had been concluded without any change to any of its earlier decisions on LCF claims.… Continue Reading

FCA Business Plan 2021/22 – transformation, accountability, and regulatory priorities for the coming year

By Chris Webber and Jack Wood on Posted in Regulation
The FCA’s annual business plan is a closely watched indicator of what we can expect from the regulator in the coming year. The recently published Business Plan for 2021/22 indicates the FCA’s focus on continued transformation and greater accountability as a regulator. It also sets out key priorities for the FCA for  the coming years … Continue Reading

FCA issues updated statement on insurers making deductions for Government support from COVID-19 business interruption settlements

By Sarah Pollitt and Billi Chamberlain on Posted in Insurance, Regulation
Last month, the Financial Conduct Authority (“FCA”) published updated guidance regarding COVID-19 business interruption settlements and deductions made for Government support. The FCA first commented on this issue in August 2020, following reports that some insurers were making deductions for Government support received by policyholders, when calculating payments for business interruption insurance claims. The FCA’s … Continue Reading

GameStopped? Regulators react to the “short squeeze”

By Chris Webber on Posted in Investment Management, Regulation
While trading frenzies are as old as the markets themselves, the novelty of widespread retail trading in obscure US stocks fueled by Reddit chat forums has prompted recent interventions by regulators on both sides of the Atlantic. Unfortunately the FCA’s terse 29 January statement on “recent share trading issues” gave little insight into how it … Continue Reading

Findings of the FRC’s Audit Committee research point towards audit sector reform

By Mariyam Harunah and Charlotte Farnsworth on Posted in Regulation
The Financial Reporting Council (FRC) has just published the outcome of new research into the approach that Audit Committee Chairs (ACCs) take to audit quality. The findings suggest inconsistency among ACCs on what constitutes audit quality, and how it should be approached, which the FRC says “lends weight to the proposals for reforms in the … Continue Reading

BI Insurance Update – FCA publishes draft guidance on proving the presence of COVID-19

By Rose Chaudry on Posted in Insurance, Regulation
At the end of last week, the FCA announced that it had commenced a consultation exercise on a piece of draft guidance it has prepared to assist policyholders, insurers and insurance intermediaries to prove the presence or otherwise of COVID-19 in a particular area, which is a requirement of some Business Interruption (BI) policies.… Continue Reading

FCA reminds firms to review value of their insurance products in light of impact of COVID-19

By Sarah Pollitt and Charlotte Farnsworth on Posted in Insurance, Regulation
The FCA has just released a statement reminding insurance firms of the guidance that it published back in June, which set out its expectations for insurers and insurance intermediaries to consider the value of their products in light of the exceptional circumstances arising from the pandemic.… Continue Reading

Court decides that litigation privilege does not apply to accountant’s reports  

By Mariyam Harunah and Charlotte Farnsworth on Posted in Regulation
The High Court has decided that a series of reports prepared by the accountants Deloitte LLP (“Deloitte”) for Sports Direct International PLC (“Sports Direct”) (now known as Frasers Group Ltd) in relation to a proposed tax structure were not prepared for the sole or dominant purpose of litigation, and were therefore not protected from disclosure … Continue Reading
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