The Financial Services and Markets Act 2000 (Prudential Regulation of FCA Investment Firms) (Definitions for the purposes of Part 9C) Regulations 2021 (SI 2021/1046) have been published along with an explanatory memorandum.
The Regulations define the terms ‘parent undertaking’ and ‘group’ for the purposes of Part 9C of the Financial Services and Markets Act 2000, which gives the FCA powers to make rules in relation to parent undertakings of FCA-regulated firms (whether the parent is itself authorised or not).
The legislation also applies to activities that are undertaken by small businesses, if they fall within the scope of the IFPR.
The Regulations come into force on 6 October 2021.
The FCA has published draft guidance on a new power that allows for faster action to remove regulatory permissions that are no longer being used by financial services firms.
Consultation paper (CP21/28) proposes changes to the FCA Handbook and Enforcement Guide to reflect the new cancellation and variation power granted under the Financial Services Act 2021.
This power is set out in Schedule 6A to the Financial Services and Markets Act 2000 (FSMA), and allows the FCA to vary or cancel firms’ permissions more quickly and efficiently if they are no longer using them.
Among other things, the FCA proposes:
The consultation closes on 29 October 2021.
The FCA is taking a more active role in driving innovation in an area where they see clear benefit to UK consumers and markets. With this in mind the FCA has updated their Green FinTech Challenge webpage to announce the launch of a second application window. The Green FinTech Challenge is aimed at firms looking to deliver innovation to aid the transition to a net zero economy.
The FCA encourages applications from firms developing innovative green solutions that require regulatory support to bring their proposition to market. The Green FinTech Challenge is open to start-ups, incumbents and technology providers. The FCA are particularly interested in firms that are developing innovations in the area of Environmental, Social and Governance (ESG) data and disclosure. For example, products and services that will:
The FCA state that they are not limited to the above and will consider all proposals in the areas of sustainability and climate change that meet their eligibility criteria.
Successful applicants will benefit from a package of our firm support services (Direct Support, Advice Unit and the regulatory sandbox). In addition, the firms will be offered bespoke support and engagement for this ‘green cohort’, for example, taking part in showcasing and networking events.
The FCA states that it is particularly interested in firms that are developing innovations in the area of ESG data and disclosure, such as products and services that will:
The FCA has also published a webpage that explains how its Green FinTech Challenge and digital sandbox are different. The deadline for applications is 15 November 2021.