Jul 21, 2023 12:25
The UK
Financial Conduct Authority (FCA) in its latest annual report for the year
ended March 31, 2023, said it has continued to design
prudential requirements for firms that are carrying out activities involving
crypto assets. However, the British watchdog noted that it will only initiate
public consultation on the rules after it gets the backing of the government
and lawmakers.
Learn about our progress and key achievements in the first year of our 3-year strategy. #FinancialServices #ConsumerDuty https://t.co/0HIEV7Ip3v pic.twitter.com/iOUNg7vZa0
— Financial Conduct Authority (@TheFCA)
July 20, 2023New
Prudential Regime Marks First Year
Prudential
requirements are rules that are designed to ensure the
financial stability of establishments in a country's financial markets. These requirements typically
focus on capital adequacy, liquidity, and risk management.
In January
last year, the Investment Firms Prudential
Regime (IFPR), the FCA's new prudential requirements for investment firms regulated under
the Markets in Financial Instruments Directive (MiFID) law, which the UK adopted after Brexit, came into force. Under the new
regime, the FCA improved its prudential expectations to focus not
only on the risks
firms face but also on those they can pose to consumers and financial
markets.
What changes lie ahead for #BIPRU firms? We examine the new #FCA prudential regime for #investmentfirms. Read the full client alert here: https://t.co/D4OiNaimTy #regulatorycompliance pic.twitter.com/3HDeAAGz8k
— Reed Smith Regulatory & Investigations (@ReedSmithGRE)
July 2, 2020In the annual report released today (Friday), FCA noted that the IFPR generated significant results during its first full year.
“We
received new reporting from 3,500 firms providing a clearer, more objective
understanding of their financial resilience,” FCA stated. “We have reviewed the
processes of 53 organisations across 17 groups, resulting in us advising firms
to hold over £5 billion of capital requirements and over £8 billion of liquidity in
aggregate.”
CFD Brokers and Prudential Requirements
Furthermore, FCA during the recent fiscal year focused on reviewing compliance with its prudential requirements among other
categories of firms such as contracts for difference (CFD) providers, wealth
managers, and payment services firms. This effort “resulted in an increase of
£19.2 million in capital requirements and £208.7 million in liquidity
requirements for these firms,” FCA noted in the annual
report.
In other
related news, the British watchdog recently found 'gaps in
surveillance' among CFD
providers in the country. Specifically, FCA discovered weak monitoring of
market manipulation and abuse of non-equity asset classes among derivatives brokerages in the country.
Additionally, the regulator found that only 61% of CFD
providers in the UK will fully
comply with its Consumer Duty
requirements for
products and services open for sale and renewal by the time the July 31, 2023,
deadline elapses. The Duty sets higher and more precise standards of consumer
protection across the European country’s financial services industry.
IBKR adds Taiwan stocks; multi-chart feature on Match-Trader; read today's news nuggets.
This article was written by Solomon Oladipupo at www.financemagnates.com.
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