Stressed

And third, and finally, we have PS09/20 “Stress and Scenario Testing Feedback on CP08/24 and final rules”. This CP is actually linked to CP03/30 (‘Buffers’),as both emanate from CP08/24 (“Stress and Scenario Testing”) issued in December 2008, and focuses primarily on improvements that the FSA expects to see in a [...]

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Bonus

In the current uncertainty with the new bank bonus tax it would seem that the rules will be rewritten. Asset management firms, advisers and family offices will not be hit by the new tax rules. [...]

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Give me strength

It has been a few weeks now since we last had a paper on prudential matters from the FSA so it was good to see that three new papers have just been released. “Strengthening Capital Standards 3” (CP09/29) sets out proposals for implementing changes to the Capital Requirements Directive (if [...]

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Buffers

And following hard on the heels of CP09/29 we have CP09/30 – “Capital Planning Buffers” – which is mercifully 300 pages or so shorter. A ‘capital planning buffer’ relates to the ICAAP requirements set out in BIPRU 2.2 and is the amount and quality of capital resources that a firm [...]

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FSA Fee Changes

The FSA has published a Consultation Paper (‘Regulatory fees and levies: policy proposals for 2010/11’ – CP09/26) which includes proposals to change the way that the FSA calculates the fees payable by firms. It is proposed that fees will consist of two components: a basic minimum fee plus a straight [...]

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Getting Closer

This month the FSA published “Close links – feedback on CP07/21” (PS09/17) which contains the new draft rules governing close links reporting. It must qualify as one of the slower feedback Policy Statements given that the original Consultation Paper (CP07/21) was published in December 2007, with the consultation period ending [...]

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FATF and the UK

The Financial Action Task Force (FATF) has acknowledged the work done by the UK in remedying deficiencies found in 2007. In that year FATF issued a report on the UK’s compliance with FATF’s 40 Recommendations (and the 9 Special Recommendations). Although hardly a damming report there were a few modest [...]

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US Regulatory Developments

As you will be aware, AIMA has recently reiterated its support for the proposed registration of hedge fund managers in the US in the interests of financial stability. The move comes as the Private Fund Investment Advisers Registration Act of 2009 won support from the House Financial Services Committee. In [...]

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Cumming and Going

The Regulatory Roundup of 5 November reported on the £8m fine imposed upon UBS (AG) after four employees carried out unauthorised transactions involving customer money ‘on at least 39 accounts’. The FSA has now released details of the ban and fine it imposed on Andrew Cumming, a former client adviser [...]

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Broker abuse

Another FSA fine on an individual, this time for abuse of inside information. Alexei Krilov-Harrison was a broker at Pacific Continental Securities (the latter, as you may be aware, was itself subject to Public Censure in January of this year and only escaped a proposed fine of £2,000,000 because by [...]

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A Reminder

A previous Regulatory Roundup included an article on the new liquidity rules affecting BIPRU firms (BIPRU 12). A reminder that although there are some transitional provisions, the majority of the rules come into force on 1 December 2009. If you have not yet given consideration to the issue then reference [...]

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Sukuk and see

HM Treasury and FSA have issued a joint document on ‘alternative finance investment bonds’ (‘AFIBs’). These are a subset of the sukuk market, which in turn are financial instruments that conform to the principles of Islamic law (Shariah). The structure of some sukuk instruments means that they will be regarded [...]

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Fine time

UBS (AG) has been fined £8m for failures in systems and controls that enabled four employees to carry out unauthorised transactions involving customer money ‘on at least 39 accounts’. As is the norm, the fine would have been larger (£10m) but for UBS agreeing to settle at an early stage. [...]

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UK rules OK

A survey by the World Economic Forum shows that the UK is now the top financial centre out of 55 of the world’s largest financially-focussed countries. The previous holder was the US but has now slipped to third place behind Australia. The rankings are based upon more than 120 different [...]

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