Our Thinking

FCA consulting on use of side pockets for retail funds affected by Russian invasion of Ukraine

by Victoria Smith|8 June 2022|Our Thinking

The Russian invasion of Ukraine has affected financial markets in many ways. Sanctions have been imposed in response to Russia’s invasion, and the Russian government has applied trading restrictions. Some securities, including some Ukrainian assets, have become illiquid or untradeable. Normal mechanisms for determining accurate and reliable valuation for some securities have stopped operating. The FCA’s […]

Australia: Federal Court fines adviser for failure to manage cybersecurity risks

by Victoria Smith|31 May 2022|Our Thinking

summary The Federal Court has found that financial adviser, RI Advice, has breached its Australian Financial Services (“AFS”) licence obligations. RI Advice failed to have adequate risk management systems to manage its cybersecurity risks and as a result, breached its AFS license obligations to act ‘efficiently, honestly and fairly’ as required by section 912A of […]

Queen’s Speech 2022: Implications on financial services

by Victoria Smith|17 May 2022|Our Thinking

Background On 10 May 2022, her Majesty the Queen set out the UK Government’s legislative priorities for the upcoming parliamentary session in the Queen’s Speech. Following the Queen’s Speech, the Government published background briefing notes unveiling details of the key reforms it plans to make over the course of the next parliamentary session. Among the […]

Time to explore the great southern land: Opportunities in Australia for UK financial services providers

by Victoria Smith|12 May 2022|Our Thinking

If you are considering raising funds or providing other financial services in Australia, you may qualify for relief as a “Foreign Financial Services Provider” (“FFSPs”) due to having comparable obligations in your home jurisdiction. As a welcome development following its consultation in June 2021, the Australian Securities and Investments Commission (“ASIC”) announced that it would […]

FCA finalises scope rules and amendments to UK PRIIPS

by Victoria Smith|11 May 2022|Our Thinking

background Packaged Retail and Insurance-based Investment Products (“PRIIPS”) can be either (or both) (a) investments issued by special purpose vehicles where, regardless of the legal form, the amount repayable to retail investors is subject to fluctuation because of exposure to reference values or to the performance of one or more assets that are not directly […]

The UK funds regime: a summary of the ‘call for input’

by Victoria Smith|4 May 2022|Our Thinking

WHAT IS THE ‘CALL FOR INPUT’? The UK government announced at Budget 2020 that it would review the UK’s fund regime (the “Review”). In January 2021, the HM Treasury published the Review which set out the objectives and invited stakeholders to provide views on which reforms should be taken forward. On 10 February 2022, the […]

LIBOR transition update: UK and Australia

by Victoria Smith|26 April 2022|Our Thinking

summary Interest rate benchmarks are widely relied upon in global financial markets by fund managers, investment banks and other important financial counterparties. They are referenced in contracts for derivatives, loans and securities. They are also used by market participants to value financial instruments, and by investment funds as benchmarks for assessing their performance. In response […]

FCA changes to MiFID II research rules and an end to RTS 27 and RTS 28 best execution reporting

by Victoria Smith|21 April 2022|Our Thinking

On 30 November 2021, the Financial Conduct Authority (“FCA”) published Policy Statement PS 21/20, which sets out its changes to the research rules and best execution reporting in RTS 27 and RTS 28, in a move likely to be welcomed by market participants… FCA reforms: end of best execution reporting The RTS 27 and RTS […]

Initial Margin Requirements: Be ready or be ready to cease trading in OTC! Phase 6 starts 1 September 2022

by Victoria Smith|10 April 2022|Our Thinking

This September, the final phase of initial margin (“IM”) requirements, Phase 6, for uncleared derivatives transactions will come into effect. Uncleared margin rules have been co-ordinated by regulators globally, including APRA in Australia and FCA /ESMA in the UK and EU. After a year’s delay to the final implementation for IM requirements, APRA is continuing […]

New Advertising Standards Authority guidance on advertising cryptoassets

by Victoria Smith|5 April 2022|Our Thinking

cryptoassets: why the attention? Cryptoassets are defined by the Financial Conduct Authority (“FCA”) as “cryptographically secured digital representations of value or contractual rights that use technology and can be transferred, stored or traded electronically”. Cryptocurrencies (such as Bitcoin) are an example of a particularly widely used cryptoasset taking the form of a digital currency and it uses […]