This edition of Market Watch discusses failures of market abuse surveillance caused by issues with factors such as data and automated alert logic and FCA’s recent peer review of firms’ testing of front-running surveillance mod­els.

TSC has now published the following: (i) letter from TSC to Nikhil Rathi setting out seven questions on the proposals in the CP; (ii) letter from Therese Chambers and Steve Smart to TSC responding to the questions, including an annex which sets out some details on investigations opened in 2023/24 and (iii) letter from Nikhil Rathi to TSC sent ahead of yesterday’s TSC standard “work of FCA” hearing which he was attending with Ashley Alder.  In this letter, he discusses the proposals in broad terms and “hope[s] for a measured debate as this engagement continues”.

Fur­ther to recent correspondence with FCA, the Committee is now seeking views on the proposals contained in FCA’s consultation on publicising enforcement investigations ahead of taking evidence from the FCA on these proposals.  Responses are required by 4 June 2024. 

FOS has provided an update on how it is handling car finance commission complaints.  FOS states that it currently has around 20,000 open complaints related to car finance commission and notes ongoing legal proceedings and FCA’s review of the historical use of motor finance discretionary commission ar­range­ments.

The EC is seeking EIOPA's technical advice on: (i) the methodology to be used when classifying undertakings as small and non-complex, and the conditions for granting or withdrawing supervisory approval for proportionality measures to be used by undertakings not classified as small and non-complex undertakings (ii) the standard formula capital requirements for exposures to CCPs when they become direct clearing members; and (iii)the standard formula capital requirements for investments in cryptoassets.  It has asked EIOPA to respond by 31 January 2025 with regard to (i) and (ii) and by 30 June 2025 with regard to (iii).