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FCA Consults on Changes to Conduct and Organizational Rules Under UK MiFID and Webpage on Climate Change and Sustainable Finance

FCA Webpage on Climate Change and Sustainable Finance

On April 23, the Financial Conduct Authority (FCA) published a new webpage on its strategic approach to climate change and sustainable finance.

The FCA explains it will continue to broaden and deepen its sustainable finance strategy, which is based on the themes of transparency, trust, and tools, as set out in its previous feedback statement (FS19/6).

The webpage highlights:

  • the work of the Task Force on Climate-related Financial Disclosures and a new webpage on climate-related reporting requirements;

  • the Climate Financial Risk Forum which has published a number of guides, covering topics such as disclosure, scenario analysis, risk management and innovation;

  • the FCA’s ongoing work on investor stewardship issues through numerous publications and its work with the Financial Reporting Council; and

  • the FCA’s international work on regulatory initiatives to collaborate and share experiences, such as the Sustainable Finance Taskforce under the International Organization of Securities Commissions.

This publication follows the Chancellor’s March 2021 remit letter to the FCA about how the FCA should consider the government’s commitment to achieve a net zero economy by 2050 in its work.

FCA webpage on climate change and sustainable finance

FCA webpage on climate-related reporting requirements

FS19/6

FCA Consults on Changes to Conduct and Organizational Rules Under UK MiFID

On April 28, the Financial Conduct Authority (FCA) launched a consultation paper (CP21/9), alongside HM Treasury, on changes to the conduct and organizational rules in the UK Markets in Financial Instruments Directive (MiFID II): research and best execution reporting.

The consultation proposes to:

  • change the inducements rules on research to broaden the list of permitted minor non-monetary benefits to include investment research on small and medium-sized enterprises with a market cap below £200m and fixed income, currencies and commodities research, so that they would not be subject to the inducements rules;

  • change how the inducements rules apply to openly available research and research provided by independent research providers; and

  • delete the rules imposing obligations on execution venues and investment firms to make RTS 27 and RTS 28 best execution reports.

The proposals on research rules apply to one of the most controversial parts of the MiFID II overhaul of securities regulations. The UK, which has a vast number of asset-management firms affected by the rules, was a strong supporter of unbundling when the MiFID II research rules and inducements rules were originally drafted before Brexit.

The consultation closes on June 23.

FCA Consultation

 

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume XI, Number 120
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About this Author

Carolyn H. Jackson, International Attorney, Katten Muchin law firm
Partner

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws...

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

44-0-20-7776-7666
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