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Our Q2, 2022 Quarterly Newsletter is part of a series that provides a regular update of key regulatory issues affecting the UK/EU and the USA, including ongoing developments, regulatory news and enforcement, to help you connect the dots.

A UK investment firm, such as an asset manager, investment adviser or broker, is required to become authorised and regulated by the Financial Conduct Authority prior to commencing these activities.

We are delighted to present the May edition of The Hedge, in partnership with Brodie Consulting Group – a brief run through of the past month’s news and views from the hedge fund sector, covering noteworthy activity around investments, activism, crypto, marketing, regulation and other relevant topics.

We are delighted to present the April edition of The Hedge, in partnership with Brodie Consulting Group – a brief run through of the past month’s news and views from the hedge fund sector, covering noteworthy activity around investments, activism, crypto, marketing, regulation and other relevant topics.

The SEC has proposed new rules which would require short selling activity over a certain threshold to be reported through EDGAR, in a move that would see the United States move closer the FCA and European disclosure regimes. Form SHO would report in confidence to the SEC within 14 calendar days after the end of each month certain short selling activity, which the SEC would then publish anonymous aggregated information.

On February 10, the SEC proposed to amend a number of rules related to Schedules 13D and 13G in an effort to modernize the threshold disclosure regime, noting that the deadline for filing a Schedule 13D has remained unchanged for 50 years.

On February 9th, the Securities and Exchange Commission (“SEC”) proposed new and amended rules regarding cybersecurity risk management, reporting and disclosures. The proposal applies to registered investment advisers (“advisers”), registered investment companies (“RICs”) and closed-end funds that have elected to be treated as business development companies (collectively, “registered funds”) under the Investment Company Act of 1940 (the “Investment Company Act”). Comments on the proposed rules are due on April 11, 2022, or 30 days after their publication in the Federal Register, whichever is later.

We are delighted to present the March edition of The Hedge, in partnership with Brodie Consulting Group – a brief run through of the past month’s news and views from the hedge fund sector, covering noteworthy activity around investments, activism, crypto, marketing, regulation and other relevant topics.

We are delighted to present the February edition of The Hedge, in partnership with Brodie Consulting Group – a brief run through of the past month’s news and views from the hedge fund sector, covering noteworthy activity around investments, activism, crypto, marketing, regulation and other relevant topics.

The Financial Conduct Authority has recently released a Policy Statement (“PS”) confirming its new structure for authorisation application fees which comes into effect from 24 January 2022.

We are delighted to present the December edition of The Hedge, in partnership with Brodie Consulting Group – a brief run through of the past month’s news and views from the hedge fund sector, covering noteworthy activity around investments, activism, crypto, marketing, regulation and other relevant topics.

The Investment Firms Prudential Regime (‘IFPR’) takes effect on 1 January 2022. It is a major overhaul of the prudential framework for investment firms and certain asset managers.

Our Q3, 2021 Quarterly Newsletter is part of a series that provides a regular update of key regulatory issues affecting the UK/EU and the USA, to help you connect the dots.

We are delighted to present the October edition of The Hedge, in partnership with Brodie Consulting Group.

We’re proud to partner with Brodie Consulting Group to present the July edition of The Hedge - a brief run through of the past month’s news and views from the hedge fund sector, covering noteworthy activity around investments, activism, crypto, marketing, regulation and other relevant topics.

Our 2021 Q2 Quarterly Newsletter is part of a series that provides a regular update of key regulatory issues affecting the UK/EU and the USA, to help you connect the dots...

The Second Markets in Financial Instruments Directive (‘MiFID II’) has had an interesting journey. Originating in 2010, it sought to update the European regulatory framework for investment firms, reflecting the 2008 financial crisis and industry developments, including technological advances and commercial trends. The requirements eventually took effect in 2018 – 1 year behind schedule.

In January 2022, investment firms shall bid farewell to (for some) a much beloved acronym – ICAAP, or the Internal Capital Adequacy Assessment Process

At the end of February, the NFA advised of an upcoming Notice to Members titled “NFA Compliance Rules 2-9 and 2-36: Members' Use of Third-Party Service Providers” that will set out NFA expectations when outsourcing regulatory requirements to third parties.

This week, the NFA sent a rule submission letter to the CFTC that will amend how CPO members notify the NFA of events affecting the pool’s ability to fulfill its obligations to investors.

In the UK, a professional code setting out behavioural expectations is commonplace. Social workers have been subject to a code of ethics since 1975. A code of conduct for barristers has existed since at least the 19th Century. The Hippocratic Oath for physicians has been around for over 2,000 years! 

On 16 November 2020 HM Treasury plus the UK’s financial services regulators – the Prudential Regulation Authority and the Financial Conduct Authority – issued a joint statement in which they set a target date for implementation of the UK’s Investment Firms Prudential Regime (‘IFDR’) of 1 January 2022.

The UK Financial Conduct Authority (“FCA”) has banned three individuals from working in the financial services industry, following their convictions of serious non-financial criminal offences.

Who has committed market abuse? Michael Douglas? Eddie Murphy? Both?

The TV show ‘Breaking Bad’, focuses on Walter White, a high school chemistry teacher turned drug baron.

Yesterday our CEO Robert Quinn participated in a joint webinar with Katharine Archer, Tax Partner at haysmacintyre, entitled 'Taxing times in a Regulated industry'.

The FCA has extended the deadline for fulfilling certain elements of the Senior Managers and Certification Regime (“SMCR”) from 9 December 2020 until 31 March 2021.

To become FCA authorised takes around 6-12 months and this can be delayed if get feedback and have to re-submit your application. Using a consultant, this could take as little as 3-6 months to become fully FCA authorised.

Yes, you can get FCA authorised with a criminal record depending on the type of the conviction and the length of time since you were convicted, amongst other factors.

Our Q2, 2020 Quarterly Newsletter is part of a series that provides a regular update of key regulatory issues affecting the UK/EU and the USA, to help you connect the dots.

The SEC has recently issued a Risk Alert highlighting Observations from Examinations of Investment Advisers Managing Private Funds. This Risk Alert provides an overview of certain compliance issues observed by the Office of Compliance Inspections and Examinations (“OCIE”) in examinations of registered investment advisers that manage private equity funds or hedge funds (collectively, “private fund advisers”).

The FCA has published a discussion paper (DP20/02) that sets out proposals regarding the new prudential regime for UK investment firms.

Thanks to everyone that participated in our inaugural UK compliance survey.

As the Covid-19 landscape continually evolves, so do the challenges facing firms. Enactment of business continuity plans to enable large scale remote working is being replaced with how best to return to an office environment, to cite one example.

The US Securities and Exchange Commission (“SEC”) announced that Ares Management LLC, a Los Angeles-based private equity firm and registered investment adviser, agreed to pay $1,000,000 to settle charges that it failed to implement and enforce policies and procedures reasonably designed to prevent the misuse of material non-public information (“MNPI”).

The year is 1997. An investment firm has a new intake of staff – graduate trainees, investment professionals, operations specialists, back-office workers. A memo goes round. The new staff members are required to attend a compliance training course.

A particular aspect of the UK regulatory environment is that financial institutions can be classified in a number of different ways. For example, it’s possible for a firm to be classified as an FCA-regulated firm, an investment firm, a portfolio manager, a small CASS firm and an ‘IPFRU’ firm – amongst others!

Welcome to our Q1, 2020 newsletter - part of a series that aims to provide a quarterly update of key regulatory issues affecting the UK/EU and the USA.

After a considerable delay, a timetable for the implementation of the reporting obligations relating to the Securities Financing Transactions Regulation (“SFTR”) has now been finalised.

On 17 March 2020, the FCA published their second communication regarding the Coronavirus outbreak, “FCA information for firms on Coronavirus (Covid-19) response”. Their first was published on 4 March 2020. In this most recent update, the FCA iterates that it expects firms to be taking reasonable steps to ensure that they are prepared to meet the challenges that the coronavirus poses to customers and staff

Having business continuity arrangements in place is a long-established FCA regulatory requirement and the rapid onset of coronavirus presents a new conundrum for firms. Specifically, how to plan for something where the range of potential outcomes is so diverse.

Following a year occupied with Brexit confusion the FCA has commemorated the start of a new decade with a release of ‘Dear CEO’ letters, somewhat reminiscent of the US Securities and Exchange Commission’s ‘examinations priorities’, which set out key risks of harm that the regulator considers relevant to certain sectors, including asset management.

Welcome to our new-look newsletter, which is part of a series of quarterly newsletters that we have been publishing for some time. Although the look and feel is very much different, the intent is very much the same – to provide you with an update of key regulatory issues affecting the UK/EU and the USA.

Robert Quinn Consulting (RQC), a market-leading provider of compliance consulting, regulatory hosting and online training, and Vero Screening, the UK’s largest independent employment screening company, have formed a partnership which harnesses the skills and experience of both firms to provide a full range of solutions for all FCA regulated firms implementing the Senior Managers and Certification Regime (SMCR).

In April 2019, the European Parliament approved changes to the Alternative Investment Fund Managers Directive (“AIFMD”) and the UCITS directive to facilitate cross-border marketing of funds. The changes, which take the form of a directive and a regulation, seek to improve the efficiency of cross-border marketing of funds across the EU.

On 16 April 2019, the European Parliament passed the new legislation on prudential requirements for MiFID investment firms. It is anticipated that this will come into force in late 2020 or early 2021.