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FCA deem attempting to collapse a country’s economy ‘Not acting with integrity’

Summary The Financial Conduct Authority has announced a series of fines for Banque Havilland SA and three of its employees for breaching principles of integrity in a recent Decision Notice. In 2017, Qatar was engaged in a diplomatic and economic dispute with other Gulf States, primarily Saudi Arabia and the United Arab Emirates. Banque Havilland drew […]

FCA on Consumer Duty – “Get on with it!” (Updated)

Update from the FCA – the velvet glove goes back on Following on from the FCA’s warning of 25th January that firms needed to ramp up their preparations for the incoming Consumer Duty, on the 3rd of February the regulator has provided a package of advice tailored to specific sectors in the form of a […]

A Christmas present you may have missed

Headlines The 15th December joint policy statement from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) follows the consultation paper published in July, which received two responses. This policy statement has adjusted aspects of margin requirements for OTC derivatives contracts that are not transacted through central counterparty clearing, as well as making a […]

FCA consults on final LIBOR funeral dates

Yesterday, The FCA published a promised consultation on the winding down of synthetic GBP and USD LIBOR. 31 December 2021 famously marked the funeral for 24 LIBOR settings. However, in order to allow more time for “tough legacy” contracts to transition to the replacement RFRs, the FCA continued to compel publication of synthetic LIBOR rates […]

FCA LIBOR powers in force

Today marks the entry into force of Section 2 of the UK Financial Services Act 2021 (FSA). The second of seven “Commencement” phases, the second is primarily notable for the application of the new FCA LIBOR powers, although it does contain a number of other provisions. A brief summary follows: Benchmarks (sections 8 to 21 […]

Temporary UK reprieve for EU UCITS

The PRA and FCA yesterday published a joint policy statement on margin requirements for non-centrally cleared derivatives, making amendments to Binding Technical Standard BTS 2016/2251. The amendments temporarily extend the period during which EEA UCITS are eligible collateral under the UK margin regime, until end-December 2022. “2.9 The PRA has given due regard to the […]

UK Regulators issue “Guidance” on securities settlement risk

On 2 June 2021, the PRA and FCA published an open letter reviewing good practice in relation to the commonly-used Delivery vs Payment (DVP) mechanism. DVP is a long-standing market convention, requiring that cash payment for securities is made either very shortly before or simultaneous with delivery of securities. Although an effective mitigant for a […]

MiFID II- FCA cancels BestEx reporting and rationalises Research Rules

The FCA has issued proposals to partially reverse MiFID II research and best execution requirements. Consultation paper CP 21/9 follows the OJ publication of the EU’s MiFID “Quick Fix”, which went some way to addressing criticism of Research and BestEx rules; the FCA proposals go further, representing a further instance of UK-EU divergence. Best Execution […]

UK gets round to IM timetable update

The PRA and FCA yesterday launched a joint consultation on whether to align UK EMIR margin requirements with the rest of the world and continuing market practice. One would hope that if any responses are received by the 19 May 2021 deadline, they would be unanimously supportive. The consultation covers the following aspects: IM phase- […]

LIBOR cessation date set

The FCA has today issued the official death knell for LIBOR. The announcement constitutes an index cessation event under the IBOR Fallbacks Supplement and the ISDA 2020 IBOR Fallbacks Protocol for all 35 LIBOR settings. 5 March 2021 is therefore the date on which the fallback spread adjustment will be fixed. Publication of 26 LIBOR […]

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