i-law

Compliance Monitor

The Edinburgh Reforms - post-Brexit financial (de)regulation

Tailored regulatory reform at its best or a race to the bottom? John Verwey and Sulaiman Malik provide an overview of the Edinburgh Reforms and their potential impact on the UK's status as a global financial hub.
Online Published Date:  02 February 2023

Why consider machine learning for transaction monitoring?

The introduction of machine learning models alongside rules-based systems for transaction monitoring can significantly reduce alert volumes while also identifying cases of suspicious activity that would not have been found through the traditional rules-based method. This hybrid approach is gaining favour with regulators, say Priya Giuliani and Donald Andersen.
Online Published Date:  02 February 2023

UK Transition Plan Taskforce: consultation on sector-neutral transition plans

The transition to net-zero requires high quality and credible transition plans. Such plans not only enable companies and financial institutions to meet their net-zero commitments, they also ensure investors can make better-informed capital allocation decisions. Charlotte Hill and Daniel Hirschfield review the recent consultation on sector-neutral transition plans.
Online Published Date:  02 February 2023

Is the FTX fiasco crypto's 'Lehman moment'?

Recent interventions by governments and authorities around the globe indicate that tougher regulation of digital assets is the direction of travel. Kate Gee and Tom Crawford explore these developments, as well as whether the alleged FTX fraud could act as a catalyst.
Online Published Date:  02 February 2023

FCA fines Santander £108 million for repeated AML failings

A recent enforcement case once again demonstrates that "criminals do not need to be particularly clever or sophisticated to launder funds through a bank. Rather, they can rely on banks failing to implement fundamental AML controls properly," writes Denis O'Connor.
Online Published Date:  02 February 2023

The FCA's ESG investment labelling proposals

The UK has opted to diverge from the EU in its approach to designating the ESG credentials of investments - with a focus on labelling from a retail investor perspective, rather than a disclosure system like its European neighbours. Compliance teams should not delay in assessing how their products will conform to the proposed rules, as well as where the product will fall when moving from one regime to the other, urge Tim Dolan and Voirrey Blount.
Online Published Date:  02 February 2023

Promoting high-risk investments - the FCA's reform of COBS 4

New rules designed to curtail the public's access to restricted and non-mass-market investments do not ameliorate the sheer fiddliness of this subject. Would it not be simpler if the FCA just banned the sale of all non-mainstream products to retail clients? suggests Adam Samuel.
Online Published Date:  02 February 2023

Amigo avoids £73m fine despite exposing 25% of guarantors to loan debts

The guarantor lender Amigo has evaded a £73 million FCA fine even though a quarter of the loans it made had to be repaid by guarantors after the borrowers defaulted.
Online Published Date:  23 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

Pension transfer firms ignore FCA warnings on British Steel compensation procedures

At least 15 pension transfer firms are putting themselves at risk of being disciplined by the FCA for "serious malpractice".
Online Published Date:  24 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

Ban on referral fees will end current business model for debt packaging firms

Debt packaging firms that introduce clients to insolvency practitioners and other 'debt solution providers' could be banned from receiving referral fees within a few months, under slightly revised FCA proposals.
Online Published Date:  24 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

FCA consults on fund manager priorities for post-Brexit rule reform

The FCA is considering upgrading the rules for portfolio managers so that they are subject to the same requirements as fund managers on investment due diligence and managing liquidity.
Online Published Date:  28 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

FCA and West Yorkshire Police target illegal crypto ATM operations

The FCA is investigating "several sites" in the city of Leeds on the suspicion that they have been "hosting illegally operated crypto ATMs".
Online Published Date:  28 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

UK could provide stable legal base for issuing digital bonds and equities

The United Kingdom could set "a global standard in internationally mobile digital markets" and become a leading jurisdiction in blockchain and DLT transactions, according to lawyers on the UK Jurisdiction Taskforce.
Online Published Date:  28 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

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