Weekly Financial Services Regulatory Update - 16.03.12

Author:Mr James Cooper and Abigail Potts
Profession:Clyde & Co

This weekly update from Clyde & Co's Financial Services Regulatory Team summarises new developments as reported by the FSA, the UKLA, the Upper Tribunal, the Financial Ombudsman Service and the London Stock Exchange over the past week, with links to the full documents where these are available.

If you have any comments on the content or format of the update or if you no longer wish to receive it, or have a colleague who would like to receive it, please email financial.services@clydeco.com.

Consultation papers:

15 March: Regulating bidding for Emissions Allowances under Phase Three of EU Emissions Trading Scheme. The FSA has published a consultation paper (CP12/6) on the regulation of bidding for Emissions Allowances under the EU Emissions Trading Scheme. The paper outlines the FSA's proposals in relation to how it will authorise and supervise firms intending to bid on auction platforms in those circumstances where it is deemed to be a regulated activity. Proposals include:

Treating bidding on an auction platform as any other MiFID business where it is deemed to be MiFID business, and Authorising auction regulation business against the requirements stated in EU Commission Auction Regulation 1031/2010 ("CAR") in addition to taking anti-money laundering measures and regulating certain approved persons The deadline for responses is 19 April 2012 and final proposals are anticipated to be published in late May 2012.

http://www.fsa.gov.uk/static/pubs/cp/ cp12-06.pdf

http://www.fsa.gov.uk/static/pubs/cp/ cp12-06-newsletter.pdf

Discussion papers:

No new developments this week.

Policy statements:

No new developments this week.

Press releases:

16 March: FSA Chief Executive to leave organisation at the end of June. Hector Sants has announced his intention to leave his position at the FSA at the end of June 2012. Having originally handed in his resignation in February 2010, the date has now been set to allow him to complete delivery of the Government's plan to separate prudential and conduct financial regulation in the UK. Upon leaving, Sants' role as head of the Prudential Business Unit will be taken up by Andrew Bailey whilst Martin Wheatley will remain the head of the Conduct Business Unit and future CEO of the Financial Conduct Authority.


14 March: Shadow Banking and Financial Instability: Lord Turner speech to the CASS Business School. In a speech to the CASS Business School, the Chairman of the FSA, Lord Turner, sets out how the 'shadow banking' sector contributed to the financial crisis, the risks it still poses to financial stability and the importance of a sufficiently comprehensive and radical...

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