FCA Updates – October 2020

  • Darragh Finn is a director at Duff & Phelps.
    Darragh Finn DarraghFinn
  • Kroll
    Alex Lander AlexLander
  • Peter Ray is a managing director at Duff & Phelps.
    Peter Ray PeterRay
  • Thomas Bevan Thomas Bevan
  • Matteo Basso Matteo Basso
  • Peter Timson Peter Timson

FCA Updates – October 2020

A round up of the news from the Financial Conduct Authority in October.

Rules for the End of Brexit Transition Period

The FCA has updated the FCA Handbook to include the rules that will come into effect once the Brexit transition period ends on December 31, 2020.

In addition, the regulator has provided details on how it intends to use the Temporary Transitional Power (TTP), which will give the FCA flexibility as to how and when rule changes apply following the end of the transition period. Where it applies, the TTP will mean that that firms can continue to comply with their existing requirements for a limited period of time. The FCA intends to apply the TTP on a “broad basis” from the end of the transition period until March 31, 2022 and expects firms to use the duration of the TTP to prepare for full compliance with changes to UK regulatory obligations by this deadline.

In some key areas, such as MiFID II transaction reporting and EMIR reporting, the FCA expects firms and other regulated persons to comply with the changed obligations from December 31, 2020.

For more information, please click here.

Support for Innovative Companies Tackling COVID-19 Challenges

The FCA opened application windows for two ‘sandbox’ services to support innovative firms tackling challenges caused by the COVID-19 pandemic, with an emphasis on supporting products and solutions that will assist consumers and firms affected by the pandemic.

The FCA identified three key areas as particular areas of importance;

  • preventing fraud and scams,
  • supporting the financial resilience of vulnerable consumers,
  • improving access to finance for small and medium sized enterprises.

Cohort 7 of the Regulatory Sandbox is open to firms that are looking to deliver innovation in the UK financial services market. This will allow businesses to test innovative propositions in the market, with real consumers.

The Digital Sandbox pilot aims to support earlier stage innovation where products and solutions are still in development and not at the stage where they are ready to be tested with consumers or in a live production environment.

Read the full FCA announcement here.

FCA Working to Reduce Delays in the Assessment of Senior Managers’ Applications

We are aware that firms submitting Senior Managers’ Form A applications are continuing to experience delays having their submissions determined by the FCA. We understand that the FCA is working to resolve this issue and is allocating additional resources to the relevant teams to reduce backlogs and processing times. However, firms submitting new applications are likely to continue to experience some delays at least until the end of Q1 2021.

We also remind firms that the Form A changed at the end of 2019 as a result of the extension of the Senior Managers and Certification Regime and now requires significant supporting documentation to be provided to the FCA. Providing all relevant information upfront will help the FCA to reduce processing times. Please reach out to our Compliance Consulting team should you require any assistance with your Form A applications.

FCA to Participate Cross-Border Testing Initiative

Twenty-three regulators across five continents, including the FCA, will take part in a cross-border testing scheme, organized by the Global Financial Innovation Network (GFIN). GFIN is a group of over 60 international organizations committed to supporting financial innovation in the interests of consumers.

GFIN is inviting applications from firms to test innovative financial products, services, business models or regulatory technology across more than one country or jurisdiction, following on from its 2019 cross-border testing pilot.

To support firms wishing to participate the following materials are available:

  • a single-entry application form
  • cross-border testing FAQs
  • a Regulatory Compendium

Firms interested in applying should review the list of participating regulators and their respective Regulatory Compendiums and submit an application via the GFIN website before December 31, 2020.

Find the full article here.

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