With a rapidly increasing level of enforcement action and a concentration of thematic activity on Brokers in the FX and CFD arena, there is a clear statement of intent from the regulator: the sector is not meeting regulatory expectations and firms offering such products are now firmly under the FCA's microscope.
Firms operating in this space should be aware of three key publications release by the FCA and linked pieces issued by ESMA. We have summarised these publications below and provided commentary on their impact. Please click on the links below to follow each article:
We believe that these publications should not leave any firm undertaking regulated activity of this nature, in any doubt as to as to the preventative or remedial measures and self-assessment that should be established and developed in the relevant areas identified by the FCA.
Historically, the regulator has consistently made it clear that it expects firms’ senior management to heed the findings from of any Final Notices and to react proactively to thematic work, particularly when it has identified endemic issues from sampling across a sub-sector of Financial Services. We would encourage firms to see these publications as a call to action and embark upon a programme to ensure that regulatory standards are being met in the delivery of good outcomes for customers.
How can we assist you?
We fully recognise that having the skill and resources to execute such an undertaking is challenging and then you may not necessarily get to the right answer yourselves.
Our Regulatory Consulting team have had extensive experience of working with traders and brokerage firms ranging in size and complexity. This has enabled us to develop a detailed understanding of regulatory expectations by providing services such as Skilled Persons Reviews, Healthchecks and Deep-Dive thematic reviews and remediation work into different aspects of Trading businesses. Our expertise has been cultivated by our work in both the UK and overseas, giving us deep knowledge of FCA, ESMA and CYSEC regulation. As a result, we are amongst the leading professional advisors who can assist your business in meeting the ever increasing regulatory standards.