MyComplianceOffice Blog

Europe has been at the forefront regarding crypto asset regulation with its recently approved Markets in Crypto Assets (MiCA) legislation, which goes into effect in phases starting in 2024. It represents the most significant attempt by global governments to regulate the growing market for digital assets.  

On 11 January 2023, the Financial Conduct Authority (FCA) published a "Dear CEO" letter to wholesale broker firms, highlighting key risks and drivers along with their supervisory focus for the next two years. The letter places particular emphasis on the Senior Managers and Certification Regime (SMCR), market abuse, personal account dealing-and the need for firms to have robust systems and controls in place to effectively manage and evidence these risks. 

With the end-February 2023 deadline for next steps looming, time is of the essence for senior executives and board members to review the current state of compliance in these areas and develop an action plan to fill in the gaps. 

The U.K. Financial Conduct Authority (FCA) has released its three-year strategy for 2022-2025. The document sets out the FCA’s areas of focus for the next few years along with the goals of preventing serious harm, setting higher standards and promoting competition.

 What does compliance need to know about the regulator’s updated longer term plans?

The UK Financial Conduct Authority (FCA) has clearly set expectations to ensure that asset managers conduct their business with due skill, care and diligence and that they manage conflicts of interest, between the firm or its employees and its customers or between its customers, fairly. A European asset management firm was recently fined £9.1mn by the FCA for failure to adhere to these principles and effectively manage conflicts of interest.

The Financial Conduct Authority (FCA) is the conduct regulator for nearly 60,000 financial services firms and financial markets in the UK, and it's part of the FCA's work to implement, supervise and enforce international standards and regulations in the UK. The UK regulator has criminal, civil and regulatory enforcement powers.

In this article, we explain the FCA's 11 Principles for Business (PRIN), their purpose, how they are used to regulate the market in the UK, and the consequences of breaching the Principles.