Recent Articles

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  11/04/2024

  Lexology Masterclass: The future of AI in financial services, where innovation meets regulation

  On 29 February, our CMS Financial Services Regulatory team and Nextwave hosted a Lexology Masterclass on the future of AI in financial services.In this webinar, we offered practical insights into how financial institutions are navigating the AI landscape, and looked at the challenges to regulating AI, how firms are approaching AI and how they can leverage existing technologies.By using the link below, anyone who wants to learn more or revisit the session can view the webinar on demand: Watch webinar  

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  10/04/2024

  FCA Consultation on Payment Optionality for Investment Research (CP24/7)

  On 10 April 2024, the FCA published a consultation on Payment Optionality for Investment Research (CP24/7). In the consultation, the FCA proposes a new option for asset managers when paying for investment research, in addition to existing options.  Under the current UK rules, which stem from the legacy EU MiFID II regime, there are two ways in which UK asset managers can currently pay for investment research: By agreeing a separate research charge with each of their clients, with the payment for research made from a Research Payment Account (the “RPA model”); and By paying...

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  02/04/2024

  ESMA feedback statement on shortening the EU settlement cycle reveals widespread industry concern

  The European Securities and Markets Authority (ESMA) has released a feedback statement summarising comments received from market participants during its consultation on shortening the EU settlement cycle.Under the EU Central Securities Depositories Regulation (CSDR), all transactions in transferable securities and other similar instruments executed on a trading venue must be completed no later than the second business day following the trade date. The CSDR also established a settlement discipline regime, which includes measures to prevent failed settlements.Since its adoption, financial markets...

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  28/03/2024

  UK Cryptoasset Regulation – 2023 developments and what’s to come in 2024 (Part 2)

  In Part 1 of this two-part series, we provided an overview of the myriad developments in the regulation of cryptoasset activities in the UK in 2023 and the first two months of 2024, and looked ahead to what is still to come.In Part 2, we take a step back to assess what these developments mean in the round for cryptoasset businesses providing services in or to the UK, and how that is set to change.A. Overview of the current and future landscapeCurrent position  Key takeawaysNon-security tokens: A business currently needs to be registered...

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  28/03/2024

  FCA Publishes Finalised Guidance on Financial Promotions on Social Media

  The Financial Conduct Authority (“FCA”) has published its finalised guidance on financial promotions on social media (FG24/1) (the “Guidance”). This follows a consultation carried out by the FCA in July 2023 and replaces previous guidance (FG15/4). The Guidance clarifies the FCA’s regulatory expectations for firms and others, including influencers, regarding compliance with the UK’s financial promotions regime. Additionally, it explains how communications on social media might fall within the scope of the financial promotions regime and how the rules will function...

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  19/03/2024

  After many postponements, the Council of the European Union reached an agreement on the Corporate Sustainability Due Diligence Directive (CSDDD)

  As part of the European Green Deal, the European Commission proposed the Corporate Sustainability Due Diligence Directive (“CSDDD” or the “Directive”) on 23 February 2022, with the aim to introduce a new requirement on companies to conduct sustainability due diligence across their operations, subsidiaries and value chain. Under the CSDDD, in-scope companies will be required to establish due diligence processes to identify, prevent, mitigate and address the potential negative impacts on the environment and human rights. In-scope companies will also be required to report on...

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