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IMS Asset Management Regulatory Update 2008 - Issue 5, October
Welcome to the fifth issue for 2008 of the regulatory newsletter from IMS Consulting, the largest independent asset management and securities regulatory consultancy in the UK. Our newsletter rounds-up some of the more important recent regulatory changes for asset managers and securities firms, focussing on FSA related developments.
The newsletter is complemented by periodic regulatory briefings on specific topics, which are typically distributed as the issue arises.
This newsletter kicks off with a summary of the FSA’s recent prohibition on the short selling of securities issued by financial institutions. Presently, the long-term intention appears to be for a more prescriptive short selling regime to be put in place. We also report on comments made by Hector Sants, FSA Chief Executive, concerning the need for compliance and risk arrangements at asset management firms to be robust.
We report on the latest developments at the European Union, as the regulation of hedge fund and private equity managers is debated. In a separate development, the European Commission has proposed an exemption to the large exposure regime for certain firms.
Back in the UK, the FSA’s emphasis on market abuse is highlighted by a number of high profile insider dealing prosecutions. Gabriel, the FSA’s new regulatory reporting regime, has gone live; we review how firms have been getting to grips with the system.
The obligations of senior managers have been highlighted, with the FSA emphasising that they will hold such persons accountable where they are unaware of their regulatory responsibilities. In our final article, the implementation of the common platform for non-MiFID firms is discussed.
We hope that you find this newsletter to be relevant and informative. If you have any further questions please contact Scott Wilson, Stephen Burke or Chris Rexworthy. Alternatively telephone 
020 7408 2448 to speak to your usual IMS contact.
Please click here for a Pdf of the whole content of this newsletter (printer friendly version).
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Short Selling The FSA’s prohibition of short selling of securities issued by financial institutions and the disclosure requirement for existing short positions was announced suddenly on 18th September 2008. |
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FSA Stresses Importance of Robust Compliance and Risk Arrangements at Asset Management Firms In a speech delivered on 17th September 2008 at the FSA Asset Manager Conference, Hector Sants, the FSA Chief Executive, outlined the impact of the current market condiditions on asset managers. Mr. Sants stressed the continuing importance of robust compliance and risk arrangements at asset management firms. |
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EU regulation of hedge funds and private equity firms - on the horizon? The European Parliament voted on 23rd September to pass a paper demanding tougher regulation of hedge funds and private equity firms. |
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European Commission proposes exemption to large exposure regime The European Commission has proposed amending the Capital Requirements Directive to exempt limited licence and limited activity firms from the large exposures regime. |
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Market Abuse Cases to proceed to trial Two market abuse prosecutions brought by the FSA proceeded to trial during September 2008. However this was only after a claim that the FSA did not have the right to make the prosecutions had been rejected. |
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GABRIEL goes live; firms getting to grips with enhanced regulatory reporting GABRIEL, the FSA's new regulatory reporting system went live in August 2008. A couple of months on, despite a few technical hitches, the launch appears to have been a success. |
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Obligations of senior managers A speech by an FSA Director aimed at non-executive directors of financial institutions has highlighted the need for individuals holding significant influence functions to be aware of their regulatory requirements, and act accordingly. |
Update for non-MiFID firms - delay in extension of the common platform
The FSA has postponed its deadline for the implementation of the extension of the common platform to firms not subject to MiFID or CRD. The common platform substantially expands the governance and systems and controls arrangements. This will now take place on 1 April 2009.
