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Some 1500 EU firms operate under the FCA’s Temporary Permissions Regime and will soon be applying for FCA authorisation according to our research. The FCA has published a helpful guide which sets out how it will assess the risks associated with such firms. A key decision will be whether to seek authorisation as a “branch” or whether to incorporate in the UK as a subsidiary.
What form a branch might take, and whether regulated activities can be conducted in the UK from overseas, poses an interesting question in a remote operating environment. When is a presence not a presence?
Potential applicants should remember that not only does the FCA have eyes, but also teeth. The FCA’s fine of Corrado Abbattista, which we look at below, shows the regulator’s own algorithms can detect market abuse issues missed by firms themselves. And recent activities of the FCA in relation to pursuing various criminal convictions should act as a reminder that not only is the FCA welcoming of new applicants but it also carries a big stick.
ESG isn’t going away. The EU’s Sustainable Finance Disclosure Regulation (SFDR) regime comes into force next month for asset managers. And for advisers, requirements to include sustainability preferences as part of suitability are on the horizon. We look at how technology can help in our next RegTech Showcase event – register below.
Ben Blackett-Ord
Founder & CEO
