Topic: FCA taking assertive action to tackle harm in the consumer investments market
Date: 03/03/2022
Overview: The Financial Conduct Authority (FCA) is taking assertive action to tackle harm in the consumer investments market, as data published today shows it has stopped 1 in 4 firms from entering this market. The FCA is also urging consumers to be InvestSmart and ScamSmart, following an increase in the number of scams being reported to it.
Between April and September last year, the FCA received 16,400 enquires about possible scams, up nearly a third from the same period in 2020. The top types of scams being reported to the FCA included cryptoasset, boiler room and recovery room scams.
The FCA has also revealed that over six months, it opened over 300 cases relating to possible cryptoasset businesses not registered with the FCA, many of which may be scams, and that it has 50 live investigations, including criminal probes, into unauthorised businesses.
The FCA’s ScamSmart campaign encourages those considering investing to check its dedicated website. The site features an online tool, and the Warning List, which allows users to find out more about the risks associated with an investment and view a list of firms the FCA knows are operating without its authorisation. The FCA’s InvestSmart campaign launched in October 2021, targeting consumers who are new to investing, and aims to provide them with information to make better-informed investment decisions.
The FCA is drawing on all the tools at its disposal, including more assertive supervision and enforcement action, and being tougher with firms who want to operate here.
Topic: FCA looks for members to help shape secondary markets work
Date: 01/03/2021
Overview: The Financial Conduct Authority (FCA) is establishing a new advisory committee on secondary markets and is looking for expressions of interest from market participants to join.
The purpose of the Committee is to support our wholesale secondary markets work in equities, derivatives, fixed income and commodity derivatives. The Committee’s task will be to:
- help develop reforms that improve market competition, increase consumer protection and enhance the integrity of markets
- identify market changes that may affect the proper functioning of secondary markets
- provide data and analysis to support policy reforms.
Secondary markets support the allocation of capital by investors and facilitate the taking and management of risk by firms.
The Committee will be composed of senior individuals in firms active in financial markets, who are experts in how secondary markets function and how they are regulated. Members will be appointed in a personal capacity. The FCA will make sure there is balanced representation of the types of firms active in wholesale markets. We will also ensure diversity of the members of the Committee in line with our commitment to promote diverse and inclusive financial services.
The Committee will be made up of 20 members, excluding representatives of the FCA, and other attendees invited on an ad hoc basis. The duration of the appointment is 2 years and it can be renewed.
The FCA will chair the Committee and provide secretariat support. The Committee will meet on a regular basis, normally quarterly, but can meet more frequently if necessary, to carry out its functions.
Market participants who are interested in joining the Committee are invited to apply by sending a CV and a cover letter to Second Markets Advisory Committee by 31 March.
Link: https://www.fca.org.uk/news/news-stories/fca-looks-members-help-shape-secondary-markets-work