Last month, the UK Financial Conduct Authority (FCA) published a discussion paper outlining its thinking on the new prudential regime for MiFID-regulated investment firms. This comes as the EU plans to introduce further changes to asset management rules from June 2021 under the Investment Firm Directive (IFD) and Investment Firm Regulation (IFR), legislation which the UK had a major role in shaping. In light of Brexit, the UK has said that while it will not adopt the IFD and IFR, it will introduce similar regulation in parallel. This is something NCI members should be closely following.    The FCA has stated clearly…

Although the stringent lockdown measures are gradually being loosened, the reality is that most NCI members will continue to work from home until at least September, if not later. While the majority of UK investment firms have weathered the market dislocation, new challenges will emerge over the coming weeks and months, especially as various regulatory compliance deadlines start to creep up.Regulatory time-frames look tight againAt the moment at which regulators realised how disruptive Covid-19 would be, the implementation of various rules and requirements was put on hold or delayed. In March 2020 (which now seems like a lifetime away), the…

With lockdown restrictions in the UK easing – albeit at a glacial pace – investment firms are beginning to conduct risk assessments into whether it is safe to return to the office.  For now, nearly all financial institutions have instructed their core and non-core staff to work from home unless it is absolutely essential to make a journey into the office. This approach is likely to be the norm for the foreseeable future. However, some asset managers are looking to gradually usher some of their staff  back into the office over the coming months.So what do firms need to be…

The rapid – and sudden - spread of the Covid-19 virus has not only caused unimaginable volatility in financial markets but it is forcing investment firms – including boutique asset managers - to implement their worst-case scenario contingency plans. The levels of disruption being caused by Covid-19 is unprecedented in modern times, and sadly there will be casualties, even among once healthy and well-run fund management businesses. Collaboration will be absolutely pivotal if the industry is to get through this turbulent period.  What is NCI doing?Fund managers are facing threats on a number of different fronts, and it is likely…

From the end of 2021, LIBOR, which benchmarks interest rates for a whole stream of financial products including securitisations, loans and derivatives, will not exist. Admittedly, some large institutional asset managers have spent a lot of their time readying their operations for the imminent move to SONIA (Sterling Overnight Interbank Average Rate), an overnight risk free rate (RFR). However, a lot of the industry is still woefully underprepared.Conscious that large sections of the asset management community have given little thought to the LIBOR transition, the Financial Conduct Authority (FCA) published yet another uncompromising ‘Dear CEO’ letter reminding investment firms they…