August 6, 2020

Volume X, Number 219

August 06, 2020

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August 05, 2020

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August 04, 2020

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FCA Publishes Webpage on its Expectation of Funds During COVID-19 Pandemic

On April 6, the UK’s Financial Conduct Authority (FCA) published a new webpage setting out its expectations of funds in light of the COVID-19 pandemic (the Webpage).

The FCA notes that firms are facing difficulties during the COVID-19 pandemic, but it still expects them to continue to uphold the best interest of their investors at all times. In order to do so, the Webpage answers a number of queries from firms, including:

  • firms can delay their annual and half-yearly fund reports;

  • firms can hold virtual general meetings for fund unitholders, subject to the fund’s documentation (including prospectuses and instruments of incorporation) permitting such types of meetings;

  • the FCA expects firms to have plans in place to deal with issues of compliance with limits on value at risk (VAR) and should take appropriate remediation action, considering the market conditions and what is in the best interests of their customers. If individual firms continue to face issues managing their funds within risk limits and VAR limits, then they should speak to their FCA supervisory contact; and

  • during the COVID-19 pandemic, the FCA is willing to accept electronic signatures on applications to authorize funds or approve changes to funds. This clarification applies only to information sent by firms to the FCA.

The Webpage is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 101


About this Author

John Ahern, Financial Attorney, London, Katten Law Firm

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...

+44 (0) 20 7770 5253
Carolyn H. Jackson, International Attorney, Katten Muchin law firm

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. 

+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

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...