The FCA has fined Bastion Capital London Limited (in liquidation) £2,452,700 for serious financial crime control failings in relation to cum-ex trading. They failed to manage the risk of being used to facilitate fraudulent trading and money laundering. Between January 2014 and September 2015 Bastion executed trading to the value of approximately £49bn in Danish […]
Author Archives: ETE
ESMA seeks first input on detailed rules for crypto markets
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its first consultation package under the Markets in Crypto-Assets Regulation and invites comments from stakeholders by 20 September 2023. In this first of three consultation packages, ESMA is seeking input on proposed rules for crypto-asset service providers (CASPs), in […]
ESMA highlights risks arising from securities lending to retail investors
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published a Statement on securities lending to retail clients setting out the applicable requirements under the Markets in Financial Instruments Directive (MiFID II). The Statement highlights investor protection concerns related to securities lending and outlines the obligations of firms engaging […]
ESMA does not find evidence to ban pre-hedging but warns on risks
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is today releasing the Final Report on the feedback received to the 2022 Call for Evidence on pre-hedging. ESMA concludes that pre-hedging is a voluntary market practice which might give rise to conflicts of interest or abusive behaviours. Whereas ESMA does […]
ESMA provides insights into the expected sustainability disclosures in prospectuses
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a Public Statement on the sustainability disclosure expected to be included in prospectuses. The statement sets out ESMA’s expectations on how the specific disclosure requirements of the Prospectus Regulation in relation to sustainability-related matters in equity and non-equity prospectuses […]
ESMA updates its guidance on the definition of advice in a supervisory briefing
The European Securities and Markets Authority (ESMA) the EU’s financial markets regulator and supervisor, today published a supervisory briefing on understanding the definition of advice under MiFID II. ESMA reviewed and updated the CESR Q&A on Understanding the Definition of Advice under MiFID, a document that is widely used by supervisors and firms, to align […]
The Financial Conduct Authority continues crackdown on unregistered crypto ATMs in the UK
Since the start of 2023, the Financial Conduct Authority (FCA) has visited and inspected 34 locations across the UK suspected of hosting crypto ATMs. These visits have been part of a coordinated operation with other law enforcement agencies to crackdown on this illicit sector and have disrupted 26 machines operating unlawfully across the country. Steve […]
ASIC greenwashing antidote
Ultimately, only meaningful, responsible and transparent disclosure will effectively combat greenwashing practices, writes ASIC deputy chair Karen Chester. Greenwashing erodes investor confidence in the market for sustainability-related financial products and corporate strategies. The Australian Securities and Investments Commission has taken 35 regulatory interventions against greenwashing activity in the nine months to March 2023. While these […]
ESMA highlights areas for improvement in firms’ disclosure of cost and charges under MIFID
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today publishes a Statement on its 2022 Common Supervisory Action (CSA) and on the mystery shopping exercise regarding compliance with disclosure requirements for costs and charges under MIFID II. Overall, firms comply with most of the elements of the ex-post cost […]
ESMA and NCAs to assess disclosures and sustainability risks in the investment fund sector
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is today launching a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) on sustainability-related disclosures and the integration of sustainability risks. The goal is to assess the compliance of supervised asset managers with the relevant provisions in the Sustainable Finance […]