FCA Market Watch 79

FCA Market Watch 79

In May, FCA Market Watch 79 discussed failures in market abuse surveillance attributed to issues with data, automated alert logic and testing of surveillance models. The FCA believes that firms may find these observations useful for enhancing the implementation, testing, and oversight of their technical systems for market abuse surveillance, thereby reducing the risk of […]

FCA Market Watch 77

Financial Crime, Market Watch 77, OCG

Introduction FCA Market Watch 77[1] was published in February shedding some light on the trading activities of organised crime groups (OCGs) within equity markets. The UK regulator emphasises the risks that OCGs pose to market integrity and the actions firms can take to mitigate these risks. This article is a bitesize recap for busy professionals. […]

Top 5 regulatory priorities in 2024

regulatory priorities

Looking to the year ahead, we explore the regulatory priorities that are likely to have a significant impact for firms in 2024.   Consumer Duty Annual Report   Firms should be gearing up for their first annual report on retail customer outcomes, a key aspect of complying with the Consumer Duty. The inaugural report is […]

Market abuse peer review (FCA Market Watch 73)

trade surveillance system

The UK Financial Conduct Authority (“FCA”) published its latest Market Watch newsletter on 26th April 2023, following a market abuse peer review of firms offering Contracts for Difference (“CFDs”) and spread bets (“CFD providers”). Many of the findings are equally applicable to firms offering other financial instruments. This article provides a summary of the key […]

UK cryptoasset regulation

UK cryptoasset regulation

On 1 February 2023, HM Treasury (“HMT”) published a consultation[1] setting out proposals for the UK’s financial services regime for cryptoassets. The UK government has highlighted its ambition to make Britain a global hub for cryptoasset technology. Rishi Sunak previously asserted that “effective regulation” would encourage “the businesses of tomorrow to invest, innovate and scale […]

FCA publishes letter to wholesale brokers

The FCA has published a portfolio letter setting out a new strategy for supervising wholesale brokers. The letter notes that periods of sustained volatility since 2019 have heightened financial, credit, liquidity and operational risks. The FCA observed that some firms’ liquidity risk management and stress testing was not fit for the current market environment. The […]

The FCA’s largest fine of 2022 – a lesson in regulatory change management

The FCA fined Citigroup Global Markets Limited (“CGML”) £12.6m for failing to properly implement the Market Abuse Regulation (“MAR”). Regulatory change is coming thick and fast for financial services firms, making effective change management controls more important than ever.  Below we look at some of the underlying failures in this case, in the hope that […]