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The JMLSG has published revised versions of the sector specific additional material for asset finance (12) and syndicated lending (17) in Part II of its Guidance on the prevention of money laundering and the financing of terrorism.
In a speech on 22 May 2018, the FCA revealed that 2,100 firms, including all the major banks and life insurers, had responded to the annual financial crime data return by 31 December 2017.
The Data Protection Act 2018 replaces the Data Protection Act 1998 and provides a comprehensive legal framework for data protection in the UK, supplemented by the GDPR until the UK leaves the EU.
The Sanctions and Anti-Money Laundering Act 2018 creates a new sanctions regime for the UK after Brexit, needed to keep UK Anti-Money Laundering (“AML”) and Counter-Terrorist Financing (“CTF”) measures up to date.
GDPR removes the requirement for data controllers to register with the ICO; however, new regulations require all data controllers to continue paying the ICO an annual fee.
The FCA are consulting on changes to the Financial Crime Guide to keep it up to date, proposing to add a chapter on insider dealing and market manipulation and make miscellaneous changes.
In its Business Plan for 2018/19, the FCA shows mitigating the effect of Brexit is its key priority for the coming year, supplemented by seven priorities across the financial sectors it regulates and other priorities within each of those seven sectors.
The FCA has published new rules on pension transfer advice and is seeking views on additional changes, including adviser charging structures. The new rules and areas for discussion aim to improve the quality of pension transfer advice to help consumers make informed decisions for their individual circumstances.
ESMA has announced a ban on the provision of binary options to retail investors in the EU and placed restrictions on the provision of contracts for differences, including rolling spot forex and financial spread bets, to retail investors in the EU. The FCA supports ESMA’s application of EU-wide temporary product intervention measures and expects to consult on whether to apply these measures on a permanent basis.
Are you ready? On 25 May 2018, the GDPR will come into effect for all firms operating within Europe as well as firms outside of Europe which have data come in from, go through, or end up in, the European Union. As part of this regulation, individuals will be afforded enhanced rights regarding their data.
The FCA and PRA have been reviewing firms’ algorithmic trading activity and have issued supervisory publications. For firms solo-regulated by the FCA, please refer to the FCA publication. Firms regulated by the PRA and FCA should refer to both publications. Firms operating in wholesale markets increasingly use algorithms for a number of purposes across their trading activity. In particular, driven by the rise in electronic trading platforms and the increased availability of data, algorithms are now often used for making both execution and investment decisions. It is essential that key oversight functions, including compliance and risk management, keep pace with technological advancements.
The Financial Conduct Authority (“FCA”) have stated that compliance with the EU General Data Protection Regulation (“GDPR”) is now a board level responsibility, and that firms must be able to produce evidence to demonstrate the steps that they have taken to comply.
Under SM&CR proposals, only Senior Managers will appear on the FS Register; CF10As for Core and Limited Scope firms, CF28s, CF29s, and CF30s would not appear. FCA will consult on maintaining a central public record of these important individuals in FCA-regulated firms.
The biggest change to Europe’s Data Protection rules in 20 years will come into force in May 2018. The General Data Protection Regulation (“GDPR”) will give people new rights to access the information companies hold on them, require firms to better manage the data they have and bring new (and potentially much higher) fines. Having been discussed for the past four years, companies will need to be ready to adhere to the rules under GDPR from 25 May 2018.
The FCA seems happy with the outcome of a review of suitability it undertook last year which captured 1,142 individual pieces of advice given by 656 firms.