The Regulation & Compliance Course for UK Financial Services

Course overview:

This introductory course will give participants an overview of UK financial services regulation and compliance. It will start with the context of how we got to where we are and examine significant elements of the current framework. It will review the central piece of UK legislation – the FSMA 2000 – including important secondary legislation. It will examine how the EU has influenced development, especially regulation & compliance.

There will be an explanation of the workings of the FCA’s Handbook and regulatory processes. We will understand how to use the FCA website to research and analyse areas of the rules and their application in respect of UK regulation and compliance issues.

We will look at two important and topical areas of the regulatory framework: financial promotion and financial products and how these are being treated under current regulation & compliance requirements.

Syndicate exercises will be used where appropriate to reinforce and extend learning.

Course content:

Background to UK financial services regulation & compliance

• The evolving scope of regulated activities and the regulator
• FPC,PRA & FCA – all change on April 1 2013
• Types of regulated firms
• Types of regulation

Core elements of the present regulation and compliance framework

• FSMA 2000
• FPC, PRA, FCA and other relevant bodies
• EU

FSMA 2000 – overview of key elements relevant for regulation and compliance

• Firms: regulated activities; authorisation; permission
• Individuals: controlled functions and approved persons
• Statements and codes; rule-making powers
• Critical areas: financial promotion; market abuse; collective investment schemes
• Investigation and discipline
• Redress: Financial Services Ombudsman; rights to sue; FS Compensation Scheme

European and international influence on regulation & compliance

• The single passport
• Significant EU directives
• Global regulatory influences

Overview of FCA’s Handbook and regulatory and compliance approach

• Structure of handbook
• Status of principles, rules, guidance and evidential provisions
• Territorial application
• Regulatory processes
• Researching and analysing the rules and their application
• Topical issues

The Approved Persons Regime

• Definition of Approved Person
• FCA procedure
• Statements of Principle for Approved Persons
• Code of Practice
• Approved Persons & the Remuneration Code

Significant Influence Function (SIF)

• Governing functions
• Required functions
• Systems & control functions
• Significant management functions

Financial products – regulation & compliance

• Regulation of UK collective investment schemes
• Alternative fund structures, including overseas funds
• Structured products

Financial promotion – regulation & compliance

• Restrictions on Financial Promotion
• Financial Promotions Order
• Area of regulatory focus and examples

The Future of regulation & compliance

• EU
• AML
• FATCA
• Needs based selling
• Financial conduct