Eye on the Markets
Welcome to Duff & Phelps’ third edition of Eye on the Markets, our newsletter focusing on regulation for trading markets. Since our last edition the global team has expanded through the acquisition of Counselworks, a leading provider of compliance and regulatory advisory services in the U.S.
Global Regulation: What is Happening?
The global regulatory landscape continues to develop rapidly, with a focus among policy-makers and regulators on finishing the implementation of the post-crisis legislation and also on thinking about how regulation should evolve to meet the challenges of the next five to ten years. We are working with regulators, the firms they regulate, industry bodies, and information and technology providers around the globe and see similar trends in the evolution of markets regulation across all leading financial centres.
The uncertainty around the MiFID II deadline is seemingly being resolved and the now very imminent Market Abuse Regulation (MAR) is starting to bite. It is clear that there will be more compliance work for the buy-side as a result of these new pieces of European legislation. Monitoring for market abuse can no longer be seen as an obligation that falls on the sell-side, whilst their buy-side counterparts can manage with a far lighter monitoring regime.
Moreover, all major regulators seem to be struggling with ‘enforcing personal accountability’. The Senior Managers Regime (SMR) directly replaced the Approved Persons Regime for the largest firms in the UK earlier this year, with plans to roll the new regime out to all regulated firms in 2018. The effects of the new regime are already being seen, as the nature of corporate governance and the approach to risk taken by Senior Managers change. The FCA has published guidance on how the SMR will be enforced in practice, showing that they expect it to be fully adopted and embraced by the industry.
Global Enforcement Review 2016
We are undertaking our annual analysis of global enforcement trends at present. Some interesting themes are emerging and we will issue our Global Enforcement Review 2016 report in July, which will be followed up by events in London, New York and Hong Kong.
Welcome to Nick Bayley
I would like to say a warm welcome to Nick Bayley who I have known for many years, since his time as Head of Regulation at the LSE. Nick joined our London team in February from the FCA where he worked both in Enforcement and, most recently, as the Head of Department overseeing the FCA’s work on MiFID II. Nick is a great addition to the ever expanding Markets team within our Regulatory Consulting practice and we will continue to do important and interesting work with our clients in this area over the coming months.
As always, we hope that you are able to take away some valuable insights from the articles and look forward to any feedback you may have.
Eye on the Markets October 2015: Electronic Trading: Increased Regulation and The Need to Prevent Price Spikes
Eye on the Markets October 2015: Cybersecurity: Doing Nothing Risks Non-Compliance and Serious Business Damage