Webinar: COVID-19 Financial Regulatory and Enforcement Discussion Series Sustainability Roundtable on the Financial Sector’s Role in the Fight Against Slavery & Trafficking COVID-19: Government Intervention Schemes Guide COVID-19: Data Privacy & Security Survey

In its first enforcement action for a breach of the Short Selling Regulation (SSR), the UK Financial Conduct Authority (FCA) has imposed a fine of £873,118 on Asia Research and Capital Management Ltd (ARCM). The fine relates to ARCM’s failure to notify the FCA and to disclose to the public its net short position in Premier Oil plc, as required under the SSR. In our latest briefing, we explore the nature of ARCM’s breaches leading to the enforcement action, and discuss key learning points for firms going forward.

Recent

The UK Financial Conduct Authority (FCA) has announced a ban on the sale of crypto-derivatives and exchange traded notes (ETNs) that reference certain types of crypto-assets (crypto-ETNs) to retail consumers. Firms who carry out marketing, distribution or selling activities in or from the UK of the relevant products to retail clients, will need to comply with these rules by 6 January 2021.

In a letter dated 18 August 2020 to the European Commission, ESMA sets out its recommendations for changes that could be made to the Alternative Investment Fund Managers Directive (AIFMD) framework as part of the Commission’s review of the AIFMD. ESMA recommends changes in 19 areas including harmonising the AIFMD and UCITS regimes; delegation and substance; liquidity management tools; leverage; the AIFMD reporting regime and data use; and the harmonisation of supervision of cross-border entities. Many of ESMA’s recommendations would also require consideration of changes to the UCITS regulatory framework.

On 16 September 2020, Ted MacDonald (Advisor in Wholesale Bank Supervision) and Olivia Fahy (Lead Associate in the Conduct Specialists Department) from the Financial Conduct Authority (FCA) joined experts from Baker McKenzie to discuss the potential conduct and culture challenges of working in the current and post COVID-19 environments.