FATF has published a short note setting out issues discussed by the Plenary and publishing its public statement on jurisdictions with strategic AML/CFT deficiencies. FATF adopted and published other reports, available to download via the following link, on, amongst other matters, the key definitions and potential AML/CFT risks of virtual currencies

FCA has published this PS which provides feedback to CP13/5 and final CASS rules affecting all firms that are subject to CASS because they conduct investment business and hold client money, custody assets, collateral and/or mandates in relation to that investment business (or rely on an exemption contained within CASS). This includes loan-based crowdfunding firms who recently became subject to the client money rules in CASS 7, but does not apply to GI intermediaries that only hold client money in accordance with CASS 5 or debt management firms that only hold, or will only hold, client money in accordance with CASS 11. FCA will not proceed at present with the main proposals consulted on around client money distribution rules due to feedback received and implications arising from the Investment Bank Special Administration Regulations 2011 review. It will consult further on the topic later on in the year. FCA further notes that is liaising with HMT about notifying the EC under Article 4 of MiFID, due to the change to the rules which will require firms to provide the same information on safeguarding of client assets, as already required for certain client types, to all clients regardless of is additional to the relevant provisions within that Directive. The EC is also aware that FCA intends to notify it, on a precautionary basis, about three changes being introduced in this PS which might be interpreted as additional. FCA has set out a table at paragraph 2.4 of the PS which provides a summary of the changes being introduced in this PS (also available to download separately via the second link below) and the rule references implementing the changes (rules will come into force over the following dates: 1 July 2014, 1 December 204 and 1 June 2015).

Text of this speech, given at Bloomberg, follows. He discusses the relationship between the regulator and the regulated at the present time; investment advice; retail products and disclosure and “Project Innovate”, described as “a project to help support industry innovation: from smaller start-ups to mass market with new models”. He notes plans for a scoping document which will look at how innovation can be supported more effectively and set out FCA’s expectations of firms.

ESMA has published a position paper prepared by its Securities & Markets Stakeholder Group which sets out recent international trends in the sector and areas of concern such as the lack of a clear and uniform definition of crowdfunding and regulatory responsibility.

FCA has published the minutes of its meeting held on 27 February 2014. Topics include: FCA’s quarterly performance report; a report on the retail banking sector; the crowdfunding consultation and consumer credit issues.

FCA has published details of instruments passed at its Board meeting on 27 March 2014. These are: Handbook Administration (No 33) Instrument 2014/21; Financial Services Compensation Scheme (Management Expenses Levy Limit 2014/2015) (FCA) Instrument 2014/22; Capital Requirements Directive IV (Capital Buffers) Instrument 2014/23; Conduct of Business Sourcebook (Mutuals) Instrument 2014/24; Consumer Credit (Debt Management Client Money Supplementary Amendments) Instrument 2014/25; Client Assets Sourcebook (Amendment No 4) Instrument/26; Supervision Manual (Waiver Process) (Amendment) Instrument 2014/27; Consumer Credit (Statutory Notices) Instrument 2014/28. In addition, it passed FEES Manual (Financial Ombudsman Service Case Fees 2014/15 and notes the passing of three other Instruments which will be detailed at a later date. The Notice also sets out information on Crowdfunding and the Promotion of Non-Readily Realisable Securities Instrument 2014/13 (passed at the 27 February 2014 meeting, but not included in last month’s Handbook) The Instruments will be available to download via the second link.

The EC has published a Communication subtitled “unleashing the potential of crowdfunding in the EU” and focusing on key challenges crowdfunding presents. In addition, it has published a report summarising responses to its October 2014 consultation, an FAQ and a press release. All are available to download via the following link.

FATF has published a press release providing a synopsis of this meeting, held in Brussels on 25-26 March 2014. Topics discussed included: FATF’s guidance on a risk-based approach to the banking sector; virtual currencies and recent FATF work.

Reform of the ISA system has been announced. The New ISAs (NISAs) will mean that savers can transfer previous years’ funds from stocks and shares ISAs into cash ISAs. The annual investment limit for the NISA will be £15,000 a year. Limits for junior ISAs and CTFs will be raised from £3,720 to £4,000. These changes will be introduced from 1 July 2014. ISA eligibility will be extended to peer-to-peer loans, and all restrictions around the maturity dates of securities held within ISAs will be removed. The Government will look at extending the ISA regime to include debt securities offered by crowdfunding platforms. From April 2015 the 10% savings rate will be reduced to 0%. The government will also increase the band of savings income that is subject to the 0% rate to £5,000. NS&I is to launch a choice of fixed-rate savings bonds for people aged 65 or over, available from January 2015 and allowing inflows of up to £10bn. Interest on the bonds will be taxed in line with all other savings income, at the inpidual’s marginal rate, meaning that pensioners who do not pay savings tax will be eligible to receive the interest tax-free. The cap on investments in premium bonds is to be raised from £30,000 to £40,000, from 1 June 2014. It will then be lifted again to £50,000 in 2015-16. Links to policy papers and guidance in respect of ISAs/CTFs and junior ISAs and on taxation of savings are available via the second link.

Further to the recent Handbook Notice which included details of Instruments passed at its Board meeting on 27 February 2014, FCA has now published Crowdfunding and the Promotion of Non-Readily Realisable Securities Instrument 2014/13, which was passed at that board meeting. In addition, PRA’s Handbook Administration Instrument (No 1) 2014/4, which was approved on 28 February 2014, is now available via the following link.