Sean Edwards

Our very own Claire Rees DipFCP, DipAML, Financial Crime Regulatory Specialist takes a closer look at the proposed FCA guidance for transaction monitoring in our recent blog: https://hubs.li/Q02z2DBj0 #AML #financialcrime #amlcompliance #FCA #TransactionMonitoring

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If you have to look at commercial or financial contracts, in particular, force majeure clauses which contain reasonable endeavours provisos, read on.... In RTI Ltd v MUR Shipping BV, the UK Supreme Court unanimously overturned the split Court of Appeal decision and held that reasonable endeavours does not require a party to accept non-contractual performance (in this case payment in another currency), providing much needed clarity on this very fundamental point as a matter of principle. https://lnkd.in/euWvapN4

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The UK Financial Conduct Authority (FCA) has set out its five-year strategy to support the competitiveness of the UK economy. Key priorities include improving market resilience, reducing financial crime and fostering competition. However, city lawyers have expressed scepticism, labelling the approach as overly familiar and questioning its effectiveness. Meanwhile, a report by the All-Party Parliamentary Group on Investment Fraud and Fairer Financial Services has criticised the FCA as "incompetent at best, dishonest at worst." They cited a lack of accountability and a failure to protect consumers after an examination of the regulator spanning nearly three years.   They called for a supervisory council, similar to that created in Australia; changes to the way the FCA is funded; the removal of the FCA’s immunity from civil liability to consumers; and a new leadership team, if necessary. https://lnkd.in/dzQpCQSq

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Nuance? I just published “Expect Continuity In 2025 Anti-Money Laundering Policy” in Law 360 with my White & Case colleagues Mari Diouf and Olivia Hussey. And then….. in the Banker… https://lnkd.in/enwxC8dY It depends on the question and topic.

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Financial Crime Partner, Jessica Cath, features in Citywire's article: FCA clamps down on platforms and advice firms for AML failings Jessica provides her expert insight on anti-money laundering (AML) systems and controls, that investment platforms AND advice firms using the platforms need to consider in light of the FCA's examinations. Click here to read the article: https://hubs.la/Q02-WwkK0 The FCA's AML focus on platforms and partnering advice firms has led to the issuing of voluntary requirement notices (VREQs) and fines across the industry, most notably to challenger banks Metro Bank and Starling Bank. If you are an investment platform or an adviser firm and would like to speak to one of our experts, please contact: - Thomas Dudley, Partner, Investment Platforms (tom.dudley@thistleinitiatives.co.uk), or - Jessica Cath, Partner, Financial Crime (jessica.cath@thistleinitiatives.co.uk) #AML #Platforms #IFA #FinancialAdvisers

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🔔FOS Case Fees for CMCs 🔔 The Treasury has announced that the Financial Ombudsman Service (FOS) will soon have the power to charge case fees to claims management companies (CMCs). HM Treasury has issued a statutory instrument granting it the authority to define who the FOS can charge fees to. We believe these fees are likely to be introduced in Spring 2025. It’s essential to start considering the potential impacts on your operations and financial planning. https://lnkd.in/ejpgmGtA The CMA is committed to providing guidance and resources to help you navigate this new regulatory landscape. Stay connected with us for more updates. 📩 If you have questions or concerns, reach out to us today! #ClaimsManagementAssociation #News #RegulationUpdate #CMCs #FOSCaseFees #SupportingOurMembers

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The FCA has today launched a publication on proposed changes to the Financial Crime Guide for firms. https://hubs.li/Q02v1BYx0 The key changes proposed are: 📌extending the section on Sanctions, to include oversight, governance, management information and guidance on dealing with breaches 📌new guidance on Transaction Monitoring, including publication of good practice for moving between TM systems 📌the importance of oversight and evaluating the effectivness of TM systems and understanding the set-up 📌new guidance for crypto firms, including risk assessment and good and poor practice when using blockchain analytics in transaction monitoring. Responses to the consultation are open until the 27th June. #AML #financialcrime #amlcompliance

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The Joint Money Laundering Steering Group #JMLSG published its finalised revisions to its Wholesale Markets Guidance Revisions have been published to the following sections of Sector 18, Part II of the JMLSG AML/CTF/CPF Guidance: ➡️ ML risks in the Wholesale Markets sector and how to assess them;  ➡️ CDD (including SDD and EDD) requirements; and  ➡️ Specific guidance on Wholesale Subscription Finance in Private Capital Funds, including product-specific risks and firms’ requirements. 💡 The revisions await HMT Ministerial approval before they will become official regulatory guidance. Relevant firms operating in Wholesale Markets should review the revised sections and make any preparations ahead of their implementation, including impact assessments and procedural updates. ✅ Plenitude RegSight and its subscription newsletter keeps you informed of the evolving regulatory landscape in the UK and its impacts for firms. Visit our website for more information: https://lnkd.in/ebAjkz5y Learn more: https://lnkd.in/eUaTJbSV

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The Financial Conduct Authority (FCA) has adjusted its plans regarding the public disclosure of firms under investigation, responding to significant opposition from the financial sector and political figures. #FCA #FinancialInvestigation #RegulatoryPolicy #MarketReactions #CorporateTransparency #IndustryObjections #FinancialServices #PublicDisclosure #FCAUpdate #MarketTrust

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Craig McLeod, Senior Managing Director, has been recognised as a Financial Crime & Sanctions exceptional expert by Financier Worldwide Magazine. In Financier Worldwide's Q&A session, Craig McLeod discusses trends and developments on the horizon for Financial Crime and Sanctions, the importance of a client-focused team and creating a conducive space for career development. Find out more by clicking the link in the comments below. #FinancialCrime #Sanctions #FTIConsulting

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In a recent speech, Sarah Pritchard (FCA Executive Director, Markets and Executive Director, International) set out the regulator’s focus on an outcomes-focused strategy to address #financialcrime. Key points included: 👉 Fighting financial crime was noted as a key commitment in the FCA 3-year strategy, with the regulator pursuing a targeted approach to tackling financial crime in an effective and proportionate way. 👉An innovative and data-led approach will be used to spot outliers and issues to help address evolving threats of financial crime and #fraud. 👉A dedicated financial crime function within the Consumer Investments department has been established. 👉The regulator advised on system-wide improvements as part of the economic crime plan and fraud strategy. 👉Noting that the cost of financial crime compliance can be significant, the FCA advise that by using the right data to calibrate risk and respond accordingly to outliers, this will allow for consideration of proportionality. The full speech can be read here - https://pimfa.cc/j9d37

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Please bookmark accordingly: the UK Accelerated Settlement Taskforce (AST) have launched a website - with generous assistance from KPMG UK - to keep the public updated on progress. A lot of work and frequent meetings are under way, which will culminate in a report to be issued later this year. I feel privileged to work within a great group of Workstream leads - and to co-lead the Legal/Regulatory Workstream with the inimitable Ashley Rowlands, Linklaters. #shorteningsettlementcycle #posttrade #Settlement #securities

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The FCA has released a discussion paper on reforming transaction reporting under MiFIR titled “Improving the UK transaction reporting regime”, paving the way for what promises to be the most significant overhaul of transaction reporting rules since the regulations came into effect in January 2018. Underpinning these reforms is a legislative agenda driven by the Financial Services and Markets Act 2023, that commits to repealing the existing transaction reporting provisions of MiFIR and its supporting technical standards, replacing them with a new transaction reporting regime in the FCA’s handbook. However, this is more than a routine recodification, the regulator has a mandate to leverage this opportunity to improve the quality of data reported while reducing the reporting burden on market participants by addressing areas where reporting rules and guidelines have contributed to inconsistent, incorrect or incomplete reporting. Notwithstanding, the FCA recognises the impracticality of sweeping reforms and favours a more measured approach, evidenced by their repeated assertion that all changes must be justified by benefits - “As we reflect on potential improvements, we must take an important decision on the scale of change. We know firms have invested in systems and processes for transaction reporting under the current regime. We also recognise the costs attached to amending systems and processes. Any changes we make need to be justified by benefits.” In order to inform the FCA’s consultative position, the paper seeks feedback from industry participants on a diverse set of themes, including: 💡 The relative merits of simplification against the cost of change 💡Areas of the regime that are most burdensome for firms 💡Balancing alignment between international transaction reporting regimes, in particular EU MiFIR, with the benefits from a more streamlined UK regime 💡Opportunities for harmonisation and reducing duplication between MiFIR transaction reporting and the wider set of UK wholesale market reporting requirements (pre- and post-trade transparency, MAR, UK EMIR and UK SFTR) 💡The role that the regulator can play in accommodating new and existing technologies such as CDM/DRR and ISO 20022 XML/JSON 💡The scope of firms subject to transaction reporting obligations 💡The scope of financial instruments captured by requirements and the use of instrument identifiers 💡Changes to the fields contained in RTS 22 to improve data quality There is currently no committed timeframe, only an assurance that the Treasury will not commence the revocation of existing transaction reporting provisions until the consultation phase is complete (feedback is due by 14 February 2025) and the FCA’s new rules are ready to come into effect. For any help assessing the possible impact of these changes on your organisation, please do not hesitate to contact our team of regulatory specialists here at Novatus Global.

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The UK FCA's Financial Crime Guide is just a guide, it is not law or regulation; but it has been referred to in 44% of Final Notices issued by the FCA to firms for financial crime related failings in the last four years. Which is why we think it is worth taking note of these updates that the FCA proposes to make to the guide. #Investigations #FinancialCrime #FinancialServices

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On October 17, the Financial Conduct Authority (FCA) expressed its support for the government's consultation on the regulation of Buy Now Pay Later (BNPL) products, which are currently exempt from regulation. Key Highlights: - Call for Regulation: The FCA has been advocating for BNPL regulation since 2021, following the Woolard Review, to ensure consumer protection and address potential risks in the sector. - Upcoming Consultation: The FCA plans to consult on its regulatory regime for BNPL after legislation is finalized, outlining proposed rules and an approach to authorising firms. - Consumer Protection: New rules will require BNPL providers to offer clear information, conduct affordability checks, and comply with the Consumer Duty. Borrowers will also have access to the Financial Ombudsman Service. - Authorisation Process: Firms offering BNPL services will need to apply for authorisation. A Temporary Permissions Regime (TPR) will allow firms to continue operating while their applications are processed, ensuring compliance with FCA rules. - Proactive Measures: Although not yet regulated, the FCA has already taken steps to address unfair contract terms and misleading advertising in the BNPL sector. The FCA’s regulation will ensure BNPL remains a useful option for consumers while protecting borrowers and fostering responsible lending practices. Follow Global Regulatory Insights for more updates on financial regulations. #FCA #BNPL #consumerprotection #creditproducts #regulation #UK #GRI

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Catch up on ICAEW's response submitted to a recent government consultation proposing changes to help improve the effectiveness of the Money Laundering Regulations 2017 (MLRs). Being proportionate is key. Michelle Giddings, ICAEW’s Head of AML, looks at the proposals and draws out the key points for ICAEW-supervised firms: https://ow.ly/NwTa50SmmGc #icaewRegulation #aml #governance

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