22
FEB
2017

Title: MiFID 11 or Brexit, which is the bigger compliance problem?

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With MiFID 11 commencing in just over ten months time and Brexit taking at least another two years, you would have thought that compliance conversations would be concentrating on the new MiFID rules. The reality, in our experience anyway, is just the opposite. Smaller firms believe that they are flexible enough to be able to respond to MiFID 11 once the definitive rules are announced. Brexit, however, is a bigger problem. The concern is regarding passporting and the fear that, once the UK is divorced from Europe, that FCA authorised firms will have no access to the current passporting regime and vice versa for European firms into the UK. Equivalence is often mentioned as a possibility but this is optimistic to say the least as there doesn’t appear to be any equivalence regime that co
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23
SEP
2016

FCA ICAAP reviews and subsequent Individual Capital Guidance

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The FCA have, today, issued a Dear CEO letter to IFPRU firms alerting them to the fact that their ICAAP may be requested for detailed inspection. For some firms this will not be news as the process has already commenced, ICAAPs have been subjected to FCA review and the Supervisory Review and Evaluation Process (SREP) has issued Individual Capital Guidance (ICG). This would usually take the form of a Pillar 2 capital adequacy requirement as a percentage, say 200%, of the Pillar 1 requirement. This makes the firm retain more capital than they may otherwise have wished. By making firms hold more funding the FCA view this as a way of mitigating, at least partly, the risk and weaknesses identified. IFPRU firms should review their ICAAPs to ensure that they meet the exact requirements in IFPRU 2
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11
FEB
2016

What is the FCA’s “Project Innovate” And How Can It Help The Nascent Fintech Sector.

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In this article we’re going to first succinctly explain what precisely Project Innovate is, the elements it contains, and how it aims to help finance start-ups as well as established finance companies. We’re then going to briefly outline some of the developments that Project Innovate has in the pipeline and finish off with a summative conclusion. What Is Project Innovate & How Can It Help Fintech Start-up’s? Project Innovate is primarily an innovation hub which was set up by the FCA in May 2013. According to the FCA, its overall goal is to promote “effective competition in regulated financial services in the interests of the consumers”. And it sees “disruptive innovation” executed primarily by finance start-ups, as a “key part of effective competition”. The project aims to engage with,
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11
FEB
2016

The FCA “Regulatory Sandbox” Explained.

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The Regulatory Sandbox is the next step in the FCA’s ambitious move to embrace, encourage and enable greater innovation in the finance sector. The sandbox is a strong indication that the FCA is really committed to fostering greater innovation in the finance world, enabling the creation of radically new products, services and business models to benefit consumers. But what is exactly is the Regulatory Sandbox? The Regulatory Sandbox is a proposal, that if passed, will form part of FCA’s existing broader Project Innovate programme. With the addition of the sandbox, young finance start-ups will be able to test run their innovative products, services and business models outside of the normal regulatory restrictions, allowing them to fully explore their viability without many of the usual string
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