The Financial Conduct Authority (FCA) has published a webpage on alternative investment fund managers (AIFMs) using the host model to manage alternative investment funds, known as AIFM hosting. The webpage discusses potential harms caused by the AIFM host model; oversight of secondees and potential conflicts of interest; investor due diligence; and capital adequacy.

The Financial Conduct Authority (FCA) has published a statement of policy on panel appointments, outlining the intended approach for appointing members to its statutory panels in accordance with section 1RA of the Financial Services and Markets Act 2000.

The CEO of the Financial Conduct Authority (FCA), Nikhil Rathi, has outlined the regulator’s response to the government’s white paper on artificial intelligence (AI) including its plans to examine how Big Tech firms’ unique access to large sets of data ‘could unlock better products, more competitive prices and wider choice for consumers and businesses’. The FCA has also published a feedback statement (FS24/1) following its own call for input on data sharing between Big Tech and financial services firms.

The Financial Conduct Authority (FCA) has published a webpage on its expectations for principal firms with overseas appointed representatives (OARs), including a list of practical considerations for such principals. The FCA warns principals that where they cannot adequately monitor the activities of an OAR, or if the OAR does not carry on regulated activity in the UK, they should consider terminating the agreement. The FCA is using data to determine whether any targeted supervisory engagement with principals with OARs is needed in future.

The Financial Conduct Authority (FCA) has published two new webpages in relation to redress liabilities. The first summarises polluting behaviours, those behaviours where firms try to avoid potential or actual liabilities generated in the course of their regulated activities, whilst still benefiting from the assets of the business. The FCA clarifies its expectations for firms and their appointed representatives and sets out a detailed ‘to do’ and ‘not to do’ list for firms to ensure they tackle these behaviours and meet their redress liabilities.

In a letter to Chancellor Rachel Reeves, FCA Chief Executive Nikhil Rathi outlined a package of measures to address concerns about how the Consumer Duty affects wholesale firms and asset managers which do not sell directly to retail consumers but play roles in distribution chains which impact them. The action plan follows a request made in the Chancellor’s 2025 Mansion House speech, as part of the government’s Financial Services Growth and Competitiveness Strategy, for the FCA to report on how it would respond to industry concerns.

Law360: The Financial Conduct Authority (FCA) detailed on 19 March 2024 its new priorities for the next financial year, setting out plans to protect consumers and boost competitiveness in Britain and to make better use of data.

The Financial Conduct Authority (FCA) has set out the process to appoint a consolidated tape provider (CTP) for bonds in the UK market, ensuring that data on bond transactions is accessible in a cost-effective way. On 3 December 2024, the FCA published a Concession Notice setting out the next steps for running the tender process. The FCA plans to publish draft tender documents on its procurement portal by 31 January 2025, allowing potential bidders to submit questions before the issuance of final tender documents.

The Financial Conduct Authority (FCA) has written to the firms in its investment-based crowdfunding platforms portfolio, setting out its supervisory expectations and key areas of focus. The letter discusses policy statement PS22/10: Strengthening our financial promotion rules for high-risk investments and firms approving financial promotions; trading venue perimeter guidance; s 21 approvals; the Public Offer Platform; the Consumer Duty; and financial resilience.

The Financial Conduct Authority (FCA) has written to firms in its loan-based peer-to-peer lending platforms portfolio, setting out its supervisory expectations and key areas of focus. The letter discusses policy statement PS22/10: Strengthening our financial promotion rules for high-risk investments and firms approving financial promotions; wind-down plans, their triggers, and liquidity monitoring; and the Consumer Duty.

The Financial Conduct Authority (FCA) has set up an industry working group on interest-only (IO) mortgages to support and inform the FCA’s review of its existing IO guidance (FG13/7). Composed of 12 mortgage lenders and administrators, the group will review the FCA’s guidance, and examine customer engagement strategies, as well as the other ways borrowers who cannot repay their mortgage at maturity can be supported.

The Financial Conduct Authority (FCA) has announced that it has reached a confidential settlement in its High Court case against Lupton Fawcett LLP. The law firm was accused of being knowingly concerned with the promotion of collective investment schemes operated by the Qualia Group. While Lupton Fawcett did not admit liability, the firm expressed ‘profound regret’ and supported the FCA's cautionary advice to professional advisers regarding such schemes.