Of relevance to: All firms carrying out algorithmic trading in wholesale markets The Financial Conduct Authority (“FCA”) and Prudential Regulation Authority (“PRA”) have been reviewing firms’ algorithmic trading activity and issued supervisory publications. For firms solo-regulated by the FCA, please refer to the FCA supervisory publication. Firms regulated by the [...]
Of relevance to: All firms, particularly those within groups of companies The Financial Action Task Force (FATF) have issued additional guidance on Private Sector Information Sharing which aims to improve effective information sharing, one of the cornerstones of the FATF Recommendations. Information sharing is crucial for combatting money laundering, terrorist [...]
If you feel like your business is constantly fixing problems and you’re worried about your legal or regulatory obligations, then perhaps your Governance, Risk management and Compliance (GRC) is weak and systems need improving. Here’s what we would suggest you look at: 1. Errors Your firm is making errors, whether [...]
Of Relevance to: To all firms FCA Business Plan: 2016/17 The FCA has published its Business Plan for 2016/17, which also includes the ‘Risk Outlook’ (page 12) which effectively feeds into the Business Plan. The purpose of the Plan is to set out the FCA’s priorities for the year ahead. [...]
Sound practices in Governance, Risk and Compliance (GRC) are the key to engaging senior management in cyber security planning. This is the key conclusion from recent consideration of cyber security risks by IT giant IBM and by attendees at forums in London and New York run by the Alternative Investment [...]
HM Treasury has published the first money laundering and terrorist financing (AML/CTF) national risk assessment (NRA). It may be recalled that earlier this year it published a supervision report on AML/CTF for 2013-14 – see Regulatory Roundup 64. Chapter 6 concerns the ‘regulated sector’; for the purposes of the paper [...]
Under Article 17 (‘simplified due diligence’) and Article 18(4) (‘enhanced due diligence’) of the fourth Money Laundering Directive (2015/849), the European Supervisory Authorities (ESAs) are required to issue guidelines to both firms and competent authorities on the risk factors to be taken into consideration when applying the required due diligence. [...]
In July Tracey McDermott, director of supervision, at the FCA, delivered a speech at the British Bankers’ Association Conference. Aimed at the wholesale market, the speech gives clues to the questions all firms should expect to be asked in the context of conduct risk. First, how do you identify the [...]
Around this time of the year the FCA publishes its Risk Outlook (identifying the most important areas of focus) and its Business Plan (setting out the Regulator’s priorities for the year ahead). In a break with tradition the FCA has decided to combine the two in the publication of its [...]
This will be of particular interest to those firms responsible for the management of AIFs and UCITS (and occupational retirement schemes – IORPS – that are subject to Directive 2003/41/EC). To counteract a perceived over-reliance on credit ratings when investing in debt instruments, Directive 2013/14/EU will be applicable from 21 [...]
When the FCA took over from the FSA, it introduced a new approach to supervision, albeit that for many small firms it may have been difficult to spot any practical difference. Most firms (around 25,000) will fall within supervision category C4 (with the largest firms falling under C1, currently 11 [...]
The publication of the FCA Business Plan 2014/15 (see separate article in this Regulatory Roundup) was accompanied by the FCA Risk Outlook 2014. The FCA Risk Outlook identifies potential issues which require monitoring by the FCA to determine when and how it should intervene whereas the Business Plan sets out [...]
The FCA is now a year old and has recently published its second Business Plan, which provides an insight into the areas that the FCA will concentrate on, including by way of thematic visits. In addition to the expected work associated with implementation of the AIFMD and preparation for MiFID [...]
As we know, certain risk mitigation techniques relating to OTC derivative trades not cleared by a CCP came into force on 15 September 2013, namely: Dispute resolution: a firm must tell the FCA about any disputes between counterparties relating to an OTC, its valuation or the exchange of collateral for [...]
The European Commission has adopted Regulatory Technical Standards on the identification of ‘material risk takers’, being those staff whose professional activities have a material impact on a firm’s risk profile – see ‘Remuneration code staff’ in SYSC 19A.3.4 and which is effectively a copy-out of Article 92(2) of the CRD. [...]
The FSA has published the findings from the latest Hedge Fund Survey (HFS) and Hedge Fund as Counterparty Survey (HFACS). As will be known from earlier Regulatory Roundups e.g. issue 9, the FSA carry out these surveys every six months or so in order to analyse the systemic risk posed [...]
As mentioned in the previous article, CP11/2 contains a summary business plan for 2011/12. Traditionally the FSA issues an annual Financial Risk Outlook (FRO) late January/early February – although last year’s FRO for 2010 wasn’t released until 10 March (see Regulatory Roundup 10) with the annual Business Plan (BP) following [...]
The FSA has published proposed guidance on derivative risk management practices following a survey of twelve asset managers. Although a ‘derivative risk management process’ is normally associated with authorised funds (COLL 5.2.24), the thematic review looked beyond COLL (‘taking a holistic and outcomes approach ..’) with the survey taking in [...]
And to round off a heavy FRO 2010 the FSA recommend the Asset Management Sector Digest 2010. There are nine key messages in the publication, four of which are deemed ‘priority risks’ being: Controls over client money and assets; The valuation of assets in funds; Platforms; and (of course) The [...]
Somewhat later than usual the FSA has published its 2010 Financial Risk Outlook. The FSA’s 2010/11 Business Plan (‘BP’) will follow in the next few days. It should cover the period 1/4/10 to 31/3/11, although page 73 of the FRO does refer to 2011/12. The purpose of the FRO is [...]
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