Richard Ellis and Daniel Rosenberg write for Business Law Today on key considerations for US financial services firms serving UK clients
To what extent can UK financial services law impact financial services businesses operating in the United States (and elsewhere outside the UK)?
At one end of the spectrum, some US firms assume that, even if they have UK clients, they can ignore UK regulation provided that they only operate from the United States. At the other end of the spectrum, some assume that they will need to be authorised in the UK if they want to deal with UK clients.
In fact, the position is more nuanced. While it would be unwise to ignore UK regulation when dealing with UK clients, there are various ways in which US financial services firms can lawfully provide services to UK clients without having any particular status under UK law.
One important consideration is that UK financial services regulation has a broad scope. While it obviously covers the activities of banks, insurers and financial advisers, it can also cover a wide range of other businesses (including lenders, credit brokers and payment services firms).
In an article for Business Law Today (American Bar Association), Richard Ellis, Partner in the Financial Services Regulation & Funds team and Daniel Rosenberg, Corporate Partner provide an overview of the UK financial services regime, with a particular focus on how it can apply to US businesses.
They cover off:
- Relevant legislation
- Criminal offences
- Scope of the UK financial services regulatory regime
- Carrying out relevant activities from outside the UK
- Marketing
- Reconfiguring a financial services business
- Authorisation
Read the full piece in Business Law Today here.
