Financial Services Institutions Briefing
Welcome to the third edition of the Financial Services Institutions Briefing.
This briefing is aimed at institutions, both large and small, providing financial services and products to clients in the UK and wider EEA market.
We have designed the briefing to include articles of equal interest to client relationship professionals as well as senior management, legal and compliance staff.
The focus is on changes impacting on investment and credit products, wealth management, advisory and planning services. Key highlights include:
Culture and the impact of regulation - a help or a hindrance?
Culture within financial services firms is a hot topic at the moment with regulators attempting to encourage a good culture by imposing a range of governance frameworks. Quoting Aristotle “We are what we repeatedly do” and many instances of poor behaviour by financial services firms have as their prime cause poor culture. The UK has led the way with the recent imposition of the Senior Managers Regime and the increasing scope of the treating customers fairly doctrine. A series of European Directives impose standards and policies to be met when financial services firms set pay and bonus awards for staff.
Non-dom reforms - what can you do now?
The UK Chancellor announced in his budget speech in July 2015 the abolition of “permanent” non-dom status from 6th April 2017. As Lisa Jane Dupernex reports almost a year later we are still waiting for the details. Lisa-Jane considers the preparatory work that can be undertaken now to ensure that clients have sufficient time to restructure their affairs. She takes a specific look at the requirement for new accounts, and on the potential impact on investment mandates, capital gains tax, trusts, tax efficient structures and tax residency.
Financial Conduct Authority Thematic Review – Meeting investors’ expectations
The FCA’s recent Thematic Review considered how firms ensure that they manage investment funds and segregated mandates as they should do. The Review also considered the
distribution of funds with a view to ensuring appropriate outcomes for consumers.
Kate Troup examines the implications of the Review for fund managers and steps they need to take. The Review helpfully provided examples of good and poor practice in the communication of investment strategy of UCITS Schemes to investors and in the governance and oversight of outcomes for consumers.
Bills of sale
The arcane and fascinating world of security bills of sale is examined in detail in this article. Taking security over an interest in a moveable asset (luxury cars, and works of art being key examples) is of enduring interest to private banks. Isobel examines the features of security bills of sale, the requirements, limitations and protections they confer.
As we go to press we and our clients are making early assessments of the likely impact of the referendum result and the victory for the Brexit campaigners. We have included a few reflections, detailed further in this edition.
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News & Insights
Toolkit for the new Senior Managers and Certification Regime
Vanessa Walters sets out some of the key principles of the regime and how FCA regulated firms can best prepare for it.
Initial Coin Offerings - an unregulated minefield
Jamie Cartwright and Thomas Plowman explore the largely unregulated minefield of Initial Coin Offerings and the potential for litigation.