End-to-end governance, advisory and monitorship solutions to detect, mitigate, drive efficiencies and remediate operational, legal, compliance and regulatory risk. Before sharing sensitive information, make sure you’re on a federal government site. Small registered UK AIFMs are exempted from the requirement to seek FCA authorisation when managing certain alternative investment funds (AIFs).

• None of the statutory practitioner panels were consulted about the proposals in this CP.
• Disclosure requirements, which are proportionate enough to stimulate the growth of the UK as a global cryptocurrency center while preventing undue harm to investors, should be considered.
• This authorization is required for any firm that offers financial services or products to consumers.
• We consider the principles of good regulation when carrying out our work, and regulated firms must comply with our principles for businesses.

Who Is the Chair of the Financial Conduct Authority?

Indeed, some brokers may design their client interface to look just like that of a trading platform. Further proposals in this field aim to tackle risks around order handling, execution quality, fragmented liquidity and pricing, conflicts of interest and opaque, off-platform transactions. In its largest section, the paper positions CATPs as vital hubs of crypto market activity and outlines proposals to defend end users against an array of key risks. These are qualifying cryptoassets that reference a fiat currency, potentially with other assets, but do not include tokenised deposits or tokenised e-money.

Regulatory disclosures

The FCA anticipates that a significant number of existing full-scope UK AIFMs will be reclassified into this category, with the intention that they benefit from a simpler, more flexible regime. More specifically, the Call for Input highlights that the FCA does not plan to impose detailed procedural requirements unless necessary. The FCA also proposes varying the risk management requirements for midsize firms, with managers of funds that do not invest in transferable securities, such as private equity or real estate funds, potentially facing fewer risk management provisions. Due to these concerns, HM Treasury is proposing to remove the legislative thresholds determining when a firm is subject to the full AIFM Regulations.

9.10 The PRA has a statutory duty to consult when making rules (FSMA section 138J). In relation to the consequential amendments to technical standards we have also a statutory duty to consult (FSMA section 138S). When you respond to this consultation paper, please tell us in your response if you agree to the publication of your name, or the name of the organisation you are responding on behalf of, in the PRA’s feedback response to this consultation. The response will be assessed to inform our work as a regulator and central bank, both in the public interest and in the exercise of our official authority.

PRA Regulatory Digest – April 2025

At FCA, we develop regulations (rules) to implement the Farm Credit Act of 1971, as amended, and other relevant laws. The primary goal of our regulations is to ensure that the Farm Credit System fulfills its public mission and operates safely and soundly. In the Call for Input, the FCA indicated that it intends separately to review at length the operation and effectiveness of the prudential requirements, business restrictions, reporting regime and remuneration rules for AIFMs. They also monitor cash flows and oversee fund operation and management processes. The FCA intends to maintain the current framework for asset safekeeping and fund oversight for large and midsize coinbase exchange review AIFMs while potentially exploring proportionate alternatives. Small firms will adhere to core baseline standards, proportionate to their size and risk profile.

Directory Persons data for firms regulated solely by the FCA and by both the FCA and PRA is now published on the FS Register. The FS Register lists all axitrader review firms and individuals involved with regulated activities that we’ve currently or previously approved. Enforcement actions under the FCA can take many forms, including civil actions brought by the government or qui tam actions brought by private individuals (known as relators) on behalf of the government. In recent years, the government has increased its focus on FCA enforcement, leading to a rise in the number of FCA cases filed and the amount of money recovered. Unless otherwise stated, any remaining references to EU or EU-derived legislation refer to the version of that legislation which forms part of assimilated law.

Comments about the contents of this site or on specific regulatory issues are always welcome and may be submitted electronically to email protected. Incident response, digital forensics, breach notification, security strategy, managed security services, discovery solutions, security transformation. Browse upcoming and on-demand ICAEW events and webinars offering support on technical areas, such as assurance, reporting and tax, as well as personal development. This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. 2 Leveraged AUM is a gross measure of value that accounts for assets acquired using leverage, whereas NAV represents the value of a fund’s assets less its liabilities.

• It will also ensure that firms can locate the entirety of the applicable requirements in a single location, making the Rulebook more accessible.
• Before investing your money, it’s important to check whether the company is authorized by the FCA.
• 3) The government is strongly committed to the FCA’s secondary international competitiveness and growth objective, and the EST and CEO agreed that work related to the perimeter should also be considered through this lens.
• The FS Register is a public record of firms, individuals and other bodies that are, or have been, authorised by us or the PRA.

The FCA’s warning list shows the firms that are suspected to be unauthorized and working without the FCA’s permission. As an improvement regulator our role is to strengthen confidence and trust in those regulated by ICAEW. ICAEW Senior Financial Services Regulatory Manager Polly Tsang tells Insights that it is encouraging to see the FCA and government taking proactive steps to regulate digital assets. As part of the new regulatory framework for AIFMs, the Consultation noted that the UK Government also intends to legislate in the areas set out below.

Its key proposals seek to address technological risks in staking and safeguarding and to improve consumer understanding. These activities will be regulated when carried out both in and outside the UK, when the person doing them is directly or indirectly involved in the sale or subscription of a qualifying cryptoasset to a consumer in the UK and there is no authorised person acting as an intermediary. Interestingly, these particular activities benefit from a number of exclusions, some of which replicate their traditional finance equivalents but several of which cater specifically for features special to cryptoassets. The activities in this group are operating a cryptoasset trading platform (CATP) and being a cryptoasset intermediary by dealing as principal or agent, or arranging (where dealing as principal and arranging include lending and borrowing). This will capture a wide universe of cryptoassets including the decentralised ones such as bitcoin and ether.

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1.12 Under the PRA’s policy framework, requirements on firms are set out in PRA rules. Accordingly, where the assimilated law sets out provisions that firms are required to comply with, the PRA proposes to restate these requirements into the relevant part of the Rulebook. As the regulator of the financial services industry in the United Kingdom, the Financial Conduct Authority (FCA) is responsible for the functioning of the U.K.’s financial markets. The goal of the organization is to ensure honest and fair markets for individuals, businesses, and the economy as a whole. The FCA is an independent financial regulator and falls under the purview of the Treasury, which is responsible for the UK’s financial system, and the Parliament.

This policy is designed to ensure that firms operate in a way that is in the best interest of their customers. We consider the principles of good regulation when carrying out our work, and regulated firms must comply with our principles for businesses. 6.1 This chapter sets out the PRA’s proposals to restate Article 23 of the MiFID Org Reg in the Rulebook, with no material changes. The consultation paper will explain if responses will be shared with other organisations (for example, the Financial Conduct Authority). If this is the case, the other organisation will also review the responses and may also contact you to clarify aspects of your response. We will retain all responses for the period that is relevant to supporting ongoing regulatory policy developments and reviews.

Market Abuse Regime for Cryptoassets (MARC)

This is welcome as the high volatility of crypto assets compared to traditional asset classes, such as equities and bonds, creates opportunities for abusive practices in crypto markets. The FCA is an independent public body that charges fees to the firms it regulates. Periodic fees charged to firms provide most of the funding required by the FCA to carry out its statutory duties. These fees are based on factors such as the type of regulated activities undertaken by a firm, the scale of those activities, and the regulatory costs incurred by the FCA.

Penalties under the FCA can be substantial, with potential damages and penalties reaching into the millions or even billions of dollars. The FCA provides for treble damages, which means that defendants can be liable for up to three times the amount of damages suffered by the government. In addition to damages, defendants may also be subject to civil penalties of $11,665 to $23,331 per false claim submitted. 9.8 In relation to the proposal to make a standards instrument updating the references to the MiFID Org Reg in the algorithmic trading kraken trading review technical standards, these consequential amendments do not result in a change in the requirements for firms.