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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:

  • governance;
  • 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.

The FCA’s press release is available here and the updated webpage is available here

©2019 Katten Muchin Rosenman LLP

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About this Author

John Ahern, Financial Attorney, London, Katten Law Firm
Partner

John Ahern, partner at Katten Muchin Rosenman UK LLP and head of the London Financial Services group, focuses his practice on banking, financial services, UK and European financial markets, and related regulations. His background in private practice and as in-house counsel at a global investment bank provides him with perspective on the unique regulatory issues facing the wholesale and private banking sectors. John advises multilateral trading facilities, broker-dealers and banks on trading, clearing and settlement as well as custody of securities—both physical and...

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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 and regulations. 

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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...

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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...

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