Derivatives & Structured Finance

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Recent Articles

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    29.11.2023
    United Kingdom

    FCA’s Policy Statement 23/16: Sustainability Disclosure Requirements (SDR) and investment labels

    Further to the FCA’s CP22/20 the FCA has published, on 28 November, its final rules and guidance to help consumers navigate the market for sustainable investment products (“PS23/16”).There is a huge amount of detail within PS23/16, and we will be providing more extensive commentary in the days to come. For now, we have highlighted the main changes from CP22/20, included the amended implementation timeline and a summary of the final package. What is changing in response to CP22/20?Most of the CP22/20 proposals have been amended – some more significantly than others –...
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    07.11.2023
    United Kingdom

    Financial services outsourcings and AI

    With the AI summit last week in Bletchley Park where a world-first agreement has been made between the UK, EU, US and China on the opportunities and risks posed by AI, we thought it was a good time to provide our initial thoughts on AI and the potential impact on regulated outsourcing arrangements. As outlined in the Bletchley Declaration, AI presents a significant opportunity for regulated firms to enhance and automate processes and tasks, both internally and externally via third party service providers, alongside some complex challenges and risks.Ultimately, our view is that the challenges are...
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    06.11.2023
    United Kingdom

    UK Cryptoasset Regulation: three key updates

    On 30 October 2023, HM Treasury (“HMT”) published 3 key updates on its proposed approach to regulating cryptoassets under the UK’s financial services regulatory framework, namely:Response to feedback received on its February 2023 consultation and call for evidence on the future financial services regulatory regime for cryptoassets (the “February 2023 Consultation”);Policy update and consultation response on its plans for regulating fiat-backed stablecoins; andResponse to its May 2022 consultation on the management of failure of systemic digital settlement asset firms.Together,...
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    30.10.2023
    United Kingdom

    AI in financial services: industry feedback published and other developments

    On 26 October 2023, the Bank of England (“BoE”), Prudential Regulation Authority (“PRA”) and Financial Conduct Authority (“FCA”) (together, the “Supervisory Authorities”) published a joint Feedback Statement on ‘Artificial Intelligence and Machine Learning’ (FS2/23) (the “Feedback Statement”). The Feedback Statement is a follow-up to the Discussion Paper (DP5/22) on the same topic published in October 2022 (the “BoE/FCA Discussion Paper”).On 26 October 2023, the UK Government also published a Discussion...
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    09.10.2023
    United Kingdom

    Pathways to progress: Board Oversight and Accountability in an Artificially Intelligent World

    IntroductionThe unexpected speed with which Artificial Intelligence (AI) has captured the public imagination – both in business and in private lives – has been staggering.  And both the regulators and the regulatory system itself have struggled to keep up with the pace of change.In October 2022, the FCA and the PRA issued DP5/22, which sets out a high level framework for discussion of the evolving regulation of artificially intelligent systems.  While the questions the regulators asked back in 2022 were potentially wide ranging, the tenor of the discussion paper was clearly...
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  •  
    26.09.2023
    United Kingdom

    FCA introduction of new regulatory gateway for firms which approve financial promotions

    BackgroundUnder section 21 of FSMA, currently any firm that is authorised under the Financial Services and Markets Act 2000 (FSMA), may approve a financial promotion by another unauthorised person. However, the government is concerned that the current framework is no longer sufficient and gives rise to risks. The FCA is particularly concerned with the promotion of high-risk investments and ‘Buy-Now Pay Later’ (BNPL) products. The FCA has seen examples of promotions that do not warn consumers of the risks, such as the taking on of debt, missed payments and other consequences. The FCA...
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