07-21-2023, 08:04 AM
UK Crypto Firms Might Come under Prudential Rules as FCA Designs Policy
<p class="MsoNormal">The UK
Financial Conduct Authority (FCA) in its latest annual report for the year
ended March 31, 2023, said it has continued to design
prudential requirements for firms that are carrying out activities involving
crypto assets. However, the British watchdog noted that it will only initiate
public consultation on the rules after it gets backing from the government
and lawmakers.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Learn about our progress and key achievements in the first year of our 3-year strategy. <a href="https://twitter.com/hashtag/FinancialServices?src=hash&ref_src=twsrc%5Etfw">#FinancialServices</a> <a href="https://twitter.com/hashtag/ConsumerDuty?src=hash&ref_src=twsrc%5Etfw">#ConsumerDuty</a> <a href="https://t.co/0HIEV7Ip3v">https://t.co/0HIEV7Ip3v</a> <a href="https://t.co/iOUNg7vZa0">pic.twitter.com/iOUNg7vZa0</a></p>— Financial Conduct Authority (@TheFCA) <a href="https://twitter.com/TheFCA/status/1682010713756168192?ref_src=twsrc%5Etfw">July 20, 2023</a></blockquote><p class="MsoNormal">New
Prudential Regime Marks the First Year</p><p class="MsoNormal">Prudential
requirements are rules that are designed to ensure the financial stability of establishments in a country's financial markets. These requirements typically
focus on capital adequacy, liquidity, and <a href="https://www.financemagnates.com/terms/r/risk-management/" class="terms__main-term" id="aedb745c-adf9-415f-97e2-ee56a920f0f8">risk management</a>.</p><p class="MsoNormal">In January
last year, the Investment Firms Prudential
Regime (IFPR), the FCA's new prudential requirements for investment firms regulated under
the Markets in Financial Instruments Directive (MiFID) law, <a href="https://www.fca.org.uk/markets/regulation-markets-financial-instruments/mifid-reporting-after-brexit-transition-period" target="_blank" rel="follow">which the UK adopted</a> after <a href="https://www.financemagnates.com/terms/b/brexit/" class="terms__secondary-term" id="0d53a9a8-2500-4d0e-a2bd-41c7ceaf31d1">Brexit</a>, <a href="https://www.fca.org.uk/firms/investment-firms-prudential-regime-ifpr" target="_blank" rel="follow">came into force</a>. Under the new
regime, the FCA improved its prudential expectations to focus not
only on the risks
firms face but also on those they can pose to consumers and financial
markets.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">What changes lie ahead for <a href="https://twitter.com/hashtag/BIPRU?src=hash&ref_src=twsrc%5Etfw">#BIPRU</a> firms? We examine the new <a href="https://twitter.com/hashtag/FCA?src=hash&ref_src=twsrc%5Etfw">#FCA</a> prudential regime for <a href="https://twitter.com/hashtag/investmentfirms?src=hash&ref_src=twsrc%5Etfw">#investmentfirms</a>. Read the full client alert here: <a href="https://t.co/D4OiNaimTy">https://t.co/D4OiNaimTy</a> <a href="https://twitter.com/hashtag/regulatorycompliance?src=hash&ref_src=twsrc%5Etfw">#regulatorycompliance</a> <a href="https://t.co/3HDeAAGz8k">pic.twitter.com/3HDeAAGz8k</a></p>— Reed Smith Regulatory & Investigations (@ReedSmithGRE) <a href="https://twitter.com/ReedSmithGRE/status/1278702821718798337?ref_src=twsrc%5Etfw">July 2, 2020</a></blockquote><p class="MsoNormal">In <a href="https://www.fca.org.uk/publication/annual-reports/annual-report-2022-23.pdf" target="_blank" rel="follow">the annual report</a> released today (Friday), the FCA noted that the IFPR generated significant results during its first full year.</p><p class="MsoNormal">“We
received new reporting from 3,500 firms providing a clearer, more objective
understanding of their financial resilience,” the FCA stated. “We have reviewed the
processes of 53 organisations across 17 groups, resulting in us advising firms
to hold over £5 billion of capital requirements and over £8 billion of liquidity in
aggregate.”</p><p class="MsoNormal">CFD Brokers and Prudential Requirements</p><p class="MsoNormal">Furthermore, the FCA during the recent fiscal year focused on reviewing compliance with its prudential requirements among other
categories of firms, such as contracts for difference (CFD) providers, wealth
managers, and payment services firms. This effort “resulted in an increase of
£19.2 million in capital requirements and £208.7 million in liquidity
requirements for these firms,” the FCA noted in the annual
report.</p><p class="MsoNormal">In other
related news, the British watchdog recently <a href="https://www.financemagnates.com/forex/fca-finds-gaps-in-surveillance-among-uk-cfds-providers/" target="_blank" rel="follow">found 'gaps in
surveillance'</a> among CFD
providers in the country. Specifically, the FCA discovered weak monitoring of
market manipulation and abuse of non-equity asset classes among derivatives brokerages in the country.</p><p class="MsoNormal">Additionally, the regulator found that <a href="https://www.financemagnates.com/forex/61-cfds-brokers-will-fully-comply-with-uks-consumer-duty-by-deadline/" target="_blank" rel="follow">only 61% of CFD
providers</a> in the UK will fully
comply with its <a href="https://www.financemagnates.com/forex/exclusive-fca-will-not-move-the-consumer-duty-deadline/" target="_blank" rel="follow">Consumer Duty
requirements</a> for
products and services open for sale and renewal by the time the deadline of July 31, 2023, elapses. The Duty sets higher and more precise standards of consumer
protection across the European country’s financial services industry.</p><p class="MsoNormal">IBKR adds Taiwan stocks; multi-chart feature on Match-Trader; <a href="https://www.financemagnates.com/forex/news-nuggets-19-july-ibkr-adds-taiwan-stocks-multi-chart-on-match-trader/" target="_blank" rel="follow">read today's news nuggets</a>. </p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...ns-policy/
<p class="MsoNormal">The UK
Financial Conduct Authority (FCA) in its latest annual report for the year
ended March 31, 2023, said it has continued to design
prudential requirements for firms that are carrying out activities involving
crypto assets. However, the British watchdog noted that it will only initiate
public consultation on the rules after it gets backing from the government
and lawmakers.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Learn about our progress and key achievements in the first year of our 3-year strategy. <a href="https://twitter.com/hashtag/FinancialServices?src=hash&ref_src=twsrc%5Etfw">#FinancialServices</a> <a href="https://twitter.com/hashtag/ConsumerDuty?src=hash&ref_src=twsrc%5Etfw">#ConsumerDuty</a> <a href="https://t.co/0HIEV7Ip3v">https://t.co/0HIEV7Ip3v</a> <a href="https://t.co/iOUNg7vZa0">pic.twitter.com/iOUNg7vZa0</a></p>— Financial Conduct Authority (@TheFCA) <a href="https://twitter.com/TheFCA/status/1682010713756168192?ref_src=twsrc%5Etfw">July 20, 2023</a></blockquote><p class="MsoNormal">New
Prudential Regime Marks the First Year</p><p class="MsoNormal">Prudential
requirements are rules that are designed to ensure the financial stability of establishments in a country's financial markets. These requirements typically
focus on capital adequacy, liquidity, and <a href="https://www.financemagnates.com/terms/r/risk-management/" class="terms__main-term" id="aedb745c-adf9-415f-97e2-ee56a920f0f8">risk management</a>.</p><p class="MsoNormal">In January
last year, the Investment Firms Prudential
Regime (IFPR), the FCA's new prudential requirements for investment firms regulated under
the Markets in Financial Instruments Directive (MiFID) law, <a href="https://www.fca.org.uk/markets/regulation-markets-financial-instruments/mifid-reporting-after-brexit-transition-period" target="_blank" rel="follow">which the UK adopted</a> after <a href="https://www.financemagnates.com/terms/b/brexit/" class="terms__secondary-term" id="0d53a9a8-2500-4d0e-a2bd-41c7ceaf31d1">Brexit</a>, <a href="https://www.fca.org.uk/firms/investment-firms-prudential-regime-ifpr" target="_blank" rel="follow">came into force</a>. Under the new
regime, the FCA improved its prudential expectations to focus not
only on the risks
firms face but also on those they can pose to consumers and financial
markets.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">What changes lie ahead for <a href="https://twitter.com/hashtag/BIPRU?src=hash&ref_src=twsrc%5Etfw">#BIPRU</a> firms? We examine the new <a href="https://twitter.com/hashtag/FCA?src=hash&ref_src=twsrc%5Etfw">#FCA</a> prudential regime for <a href="https://twitter.com/hashtag/investmentfirms?src=hash&ref_src=twsrc%5Etfw">#investmentfirms</a>. Read the full client alert here: <a href="https://t.co/D4OiNaimTy">https://t.co/D4OiNaimTy</a> <a href="https://twitter.com/hashtag/regulatorycompliance?src=hash&ref_src=twsrc%5Etfw">#regulatorycompliance</a> <a href="https://t.co/3HDeAAGz8k">pic.twitter.com/3HDeAAGz8k</a></p>— Reed Smith Regulatory & Investigations (@ReedSmithGRE) <a href="https://twitter.com/ReedSmithGRE/status/1278702821718798337?ref_src=twsrc%5Etfw">July 2, 2020</a></blockquote><p class="MsoNormal">In <a href="https://www.fca.org.uk/publication/annual-reports/annual-report-2022-23.pdf" target="_blank" rel="follow">the annual report</a> released today (Friday), the FCA noted that the IFPR generated significant results during its first full year.</p><p class="MsoNormal">“We
received new reporting from 3,500 firms providing a clearer, more objective
understanding of their financial resilience,” the FCA stated. “We have reviewed the
processes of 53 organisations across 17 groups, resulting in us advising firms
to hold over £5 billion of capital requirements and over £8 billion of liquidity in
aggregate.”</p><p class="MsoNormal">CFD Brokers and Prudential Requirements</p><p class="MsoNormal">Furthermore, the FCA during the recent fiscal year focused on reviewing compliance with its prudential requirements among other
categories of firms, such as contracts for difference (CFD) providers, wealth
managers, and payment services firms. This effort “resulted in an increase of
£19.2 million in capital requirements and £208.7 million in liquidity
requirements for these firms,” the FCA noted in the annual
report.</p><p class="MsoNormal">In other
related news, the British watchdog recently <a href="https://www.financemagnates.com/forex/fca-finds-gaps-in-surveillance-among-uk-cfds-providers/" target="_blank" rel="follow">found 'gaps in
surveillance'</a> among CFD
providers in the country. Specifically, the FCA discovered weak monitoring of
market manipulation and abuse of non-equity asset classes among derivatives brokerages in the country.</p><p class="MsoNormal">Additionally, the regulator found that <a href="https://www.financemagnates.com/forex/61-cfds-brokers-will-fully-comply-with-uks-consumer-duty-by-deadline/" target="_blank" rel="follow">only 61% of CFD
providers</a> in the UK will fully
comply with its <a href="https://www.financemagnates.com/forex/exclusive-fca-will-not-move-the-consumer-duty-deadline/" target="_blank" rel="follow">Consumer Duty
requirements</a> for
products and services open for sale and renewal by the time the deadline of July 31, 2023, elapses. The Duty sets higher and more precise standards of consumer
protection across the European country’s financial services industry.</p><p class="MsoNormal">IBKR adds Taiwan stocks; multi-chart feature on Match-Trader; <a href="https://www.financemagnates.com/forex/news-nuggets-19-july-ibkr-adds-taiwan-stocks-multi-chart-on-match-trader/" target="_blank" rel="follow">read today's news nuggets</a>. </p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...ns-policy/