Derivatives & Structured Finance

Recent Articles

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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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  31.08.2023

  United Kingdom

  AI in financial services – Autumn 2023 update

  Over the course of 2023, artificial intelligence (“AI”) has continued to rise up the regulatory and business agenda. Ahead of several important policy announcements in Autumn/Winter 2023, we have prepared an update on recent regulatory developments in AI and upcoming milestones for the financial services sector.  The update includes a summary of the UK Government AI White Paper consultation, which is due to report back by the end of September, an overview of recent areas of focus for the UK financial services regulators in relation to AI, an update on the current status...

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  13.07.2023

  United Kingdom

  Results of the Investment Research Review: what next for producers and consumers of investment research?

  On 9 March 2023, HM Treasury launched a call for evidence and an independent review of investment research and its contribution to the competitiveness of the UK’s capital markets (the “Investment Research Review”). The Investment Research Review forms part of the UK Government’s wider Edinburgh Reforms package and took place amid concerns that the UK has lower levels of investment research in comparison to other jurisdictions and especially in relation to key growth sectors such as tech and life sciences. On 10 July 2023, the outcome of the Review was published...

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  29.06.2023

  United Kingdom

  The Financial Services & Markets Act 2023 has arrived!

  The Financial Services and Markets Bill has received Royal Assent to become the Financial Services and Markets Act 2023. The Act makes significant reforms to the regulation of financial services in the UK.The main driver for the Act was to establish HMT’s Future Regulatory Framework by providing the legislative architecture for the transfer of EU retained law to the FCA and PRA rulebooks. Other key reforms under the Act include:Establishing a framework for the designation of Critical Third Parties;Introducing a ‘regulatory gateway’ for financial promotions;Bringing certain stablecoins...

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  13.06.2023

  Middle East

  UAE Corporate Tax Law: When does a non-resident juridical person have a UAE Nexus?

  BackgroundThe UAE enacted its Corporate Tax Law (the “CTL”) in December 2022 (Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses). The CTL came into force on 1 June 2023. The main corporate tax rate of 9% applies on income exceeding AED 375,000 (roughly USD 102,000). The CLT provides that the rate of corporate tax which applies to “Qualifying Free Zone Persons” is 0% with respect to qualifying income and 9% on non-qualifying revenue.Under Article 11 of the CTL, a taxable person includes a non-resident person which has a UAE nexus.Cabinet Decision...

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  05.06.2023

  Middle East

  UAE Corporate Tax Law: What Constitutes Qualifying Income for Free Zone Persons?

  BackgroundThe UAE enacted its Corporate Tax Law (the “CTL”) in December 2022 (Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses). The CTL came into force on 1 June 2023. The main corporate tax rate of 9% applies on income exceeding AED 375,000 (roughly USD 102,000). The CLT provides that the rate of corporate tax which applies to “Qualifying Free Zone Persons” (“QFZP”) is 0% with respect to qualifying income (“Qualifying Income”) and 9% on non-qualifying revenue (“Non-Qualifying Revenue”).After much anticipation,...

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