1. EIOPA highlight risks of a no-deal Brexit
The Joint Committee of the European Supervisory Authorities published its latest report on Risks and Vulnerabilities in the EU Financial System. The report highlights uncertainties surround the UK's exit from the EU. It states ‘Although there seems to be a “Brexit fatigue” in the financial sector, supervisors continue to encourage institutions to prepare...
1. BoE:The impact of Brexit on UK firms
This BoE staff working paper assesses the impact of Brexit on UK firms with regard to levels of uncertainty, investment and productivity.
Anti-money laundering, terrorist financing, and know your client obligations
FCA-authorised firms are required, pursuant to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on Payer) Regulations 2017 (“MLRs”), to implement anti-money laundering (“AML”) measures.
HoC: Brexit and financial services
HoC has updated its Library briefing paper which considers equivalence and the potential impact of no-deal Brexit on the sector.
Systems and control
FCA-authorised firms must have appropriate systems and controls in place taking into account the nature, scale, and complexity of the business. This creates numerous obligations, primarily relating to:
Suitability assessment obligations
An online advice platform will need to consider whether an investment is suitable for a client when providing investment advice.
The purpose of the Shareholders Rights Directive II (“SRD II”) is to encourage long-term shareholder engagement and transparency between traded companies and investors. These changes came into force on 10 June 2019 and Member States have transposed the SRD II's provisions into national law. These require UK companies with shares admitted to trading on a regulated market in the UK or EU to have safeguards...
Under the Financial Services and Markets Act 2000 (“FSMA”) a person cannot carry on any “regulated activities” unless they are authorised by the FCA, or unless it falls within an exemption or exclusion. Any contravention of this prohibition is a criminal offence.
EC: EQUIVALENCE IN THE AREA OF FINANCIAL SERVICES
The EC has set out its approach on equivalence and on recent legislative improvements in terms of how it grants equivalence to non-EU countries. It also describes how the EC and ESAs monitor the situation in those countries after equivalence decisions have been taken and how recent EU legislative changes have strengthened the equivalence framework....
The proliferation of online platforms in financial services has created a new mechanism for distributing financial services. This article sets out the legal and regulatory challenges faced by an online financial services platform.