REGtape UK | October 2024
Published on 4th Oct 2024
Developments in financial services regulation in the UK
With autumn now in full swing, welcome to our inaugural quarterly round-up reflecting on developments and emerging themes in UK financial services, with a focus on the retail banking, investments, wealth and fintech sectors.
In this launch edition, we consider the Financial Conduct Authority's Consumer Duty, following its first anniversary back on 31 July that also marked its roll-out to closed products and services. As the regulator gears up for proactive supervision in this area, the Consumer Duty looks set to be a priority for firms in the foreseeable future – will there be a cause for celebration as it heads towards its second anniversary?
Regulatory change for UK buy-side firms has brought a new way to pay for investment research and the bundling of payments for third-party research and trade execution, subject to safeguards. This represents a shift away from the "unbundling" position under the second EU Markets in Financial Instruments Directive. And, across the Channel, similar changes are underway to the EU rules.
We also take a look at two areas of intense focus at the moment: diversity and inclusion – from a disputes perspective – and where the financial services regulators stand on artificial intelligence regulation.
We also assess a recent Court of Appeal judgment that will be of particular interest to execution-only self-invested personal pension, or SIPP, operators.
FCA gives clear message to UK firms: the Consumer Duty journey is only just 'beginning'
The Financial Conduct Authority brought the Consumer Duty into force for closed products and services on 31 July, with the same date marking the deadline for boards to have reviewed and approved their first annual report on the new regulation. With the new regime now fully in force, what approach can firms expect from the UK financial regulator?
UK financial regulator adopts commission sharing arrangement-style investment research payment option
The UK Financial Conduct Authority has finalised its plans for a new way to pay for investment research, which aims to give UK buy-side firms greater control over how they can purchase investment research. The changes, which aim to boost competition, also keep the UK aligned with the EU.
Non-financial misconduct in UK financial services: the disputes perspective
Financial regulators have been flagging issues around non-financial misconduct together with diversity and inclusion since the start of the decade – and before. Following a consultation on diversity and inclusion and parliamentary enquiry on sexism in the City, where are we now and where we are going?
Where do the FCA and Bank of England stand on AI guidelines in last year's white paper?
A month before the UK general election was called, the Financial Conduct Authority, Bank of England and Prudential Regulation Authority delivered an outline for the UK financial sector of how they would take a principles-based approach to AI. Financial services will now want clarity under the new government.
Court of Appeal dismisses SIPP operator's challenge of UK financial ombudsman decision
The UK Court of Appeal has set aside a judicial review request brought by Options UK Personal Pensions, formerly known as Carey Pensions, to challenge a decision by the Financial Ombudsman Service. A focus on pre-contractual due diligence may act as a warning to execution-only providers.
Future of Financial Services
The podcast series draws upon our annual Future of Financial Services Week and explores emerging challenges and solutions in the rapidly changing world of finance, with recent episodes on diversity and inclusion, artificial intelligence, sustainability disclosure requirements, and more.
Osborne Clarke's financial services regulatory experts would be happy advise you further on any of the topics covered in this edition. For further information, please contact any of the experts mentioned in the articles or our partners.
