FCA MAR and Crime Systems Guidance Published and Post-Brexit Prep
FCA Publishes Market Watch Newsletter With Review of MAR Implementation
On December 17, the UK Financial Conduct Authority (FCA) published issue 58 of its Market Watch newsletter. In this issue, the FCA details its findings on a review of the implementation of the Market Abuse Regulation (MAR).
Among the topics discussed are:
- Market soundings: The FCA comments on different approaches to contacting investors in receipt of market soundings, record-keeping and cleansing following a sounding.
- Insider lists: The FCA notes different approaches to the production of insider lists and comments on the use of other types of lists.
- Obligations for issuers: The FCA comments on possible systems and controls for the identification and disclosure of inside information, including the use of disclosure committees and seeking the views of advisers.
The FCA intends to continue to work closely with market participants to ensure a consistent, effective implementation of MAR.
Market Watch 58 is available here.
FCA Publishes Finalized Guidance on Financial Crime Systems and Controls for Insider Dealing and Market Manipulation
On December 13, the UK Financial Conduct Authority (FCA) published finalized guidance on financial crime systems and controls relating to insider dealing and market manipulation (FG18/5).
In March 2018, the FCA consulted on an update to its Financial Crime Guide for firms, with an additional chapter on insider dealing and market manipulation, as well as a number of minor amendments to reflect recent regulatory changes.
Following such consultation, Part 1 of the Financial Crime Guide has been renamed as ”Financial Crime Guide: A firm’s guide to countering financial crime risks” (FCG). The FCG includes the new section on insider dealing and market manipulation. Part 2 of the Financial Crime Guide has been renamed as “Financial Crime Thematic Reviews” (FCTR).
The updates in FCG include material on customer due diligence and enhanced customer due diligence. The new section on insider dealing and market manipulation contains guidance on:
- risk assessment;
- policies and procedures; and
- ongoing monitoring.
The FCA Handbook has also been amended to reflect the updated FCG and FCTR.
FG18/5 can found here.
FCA Updates Webpage on Preparing for Brexit
On December 13, the UK Financial Conduct Authority (FCA) published a press release advising that it has updated its webpage on “preparing your firm for Brexit.”
The FCA expects that, by now, firms will have considered the issues it has previously highlighted in relation to Brexit. It has updated its webpage to follow up on some key areas:
- Contract continuity: The FCA reminds firms doing business in the European Economic Area (EEA) under a passport that they need to consider how they will continue to service customers with existing contracts after Brexit.
- Execution of firms’ contingency plans: The FCA reminds firms they should consider their clients’ best interests when executing their contingency plans.
- Data sharing: The FCA reminds firms of the importance of considering whether they transfer personal data between the UK and EEA. The FCA expects firms to consider what contingency plans may be necessary.
- Customer communications: The FCA reminds firms of the importance of considering what communications to customers will be necessary to explain how Brexit might affect them.