Dr Jimi M.V. Hinchliffe

📢 New Release: HM Treasury's Areas of Research Interest 2024 📢 This pivotal document outlines the UK government's research priorities. This comprehensive guide highlights the critical economic and policy challenges shaping the country’s future and sets the stage for collaboration between government, academia, and industry. ➡️ Read the full document here: https://lnkd.in/eVXtHinA

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FSDC Publishes Annual Report for 2023/24 The Financial Services Development Council (“FSDC”) has released its annual report for the financial year from 1 April 2023 to 31 March 2024. This year, the FSDC published 6 policy research and other reports, setting forth policy recommendations to fortify Hong Kong's standing as an international financial centre. These reports cover a broad range of topics, including boosting market liquidity and diversity, advancing Hong Kong as a regional philanthropic hub, fostering blockchain technology adoption, expanding offshore Renminbi business capabilities, cultivating young talent for the industry, and others. Since 2013, the FSDC has made 234 policy recommendations, with 166 adopted by the Government, achieving an adoption rate of 71%. #report #FSDC #SaudiArabia #blockchain

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💡 TISA has created this manifesto to highlight to policymakers the set of key policy proposals which are essential to improve the financial wellbeing of UK consumers. We are calling on the Government to work with TISA, the Financial Services industry and Consumer groups to increase consumers’ financial wellbeing. TISA supports the aim to increase economic growth and prosperity. Our proposals seek to support this aim by improving financial literacy, reaching underserved members of society and incentivising innovation. This summary outlines our 10 recommendations to improve the financial wellbeing of UK households. The full version, detailing each of these ten points can be requested on the website. 🔗 View it here: https://lnkd.in/gQ4tD4Zp

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Futures Commission Merchants (FCMs) are calling for more oversight of self-clearing CCP members. Clearing firms worry that PTFs and market-makers joining CCPs en masse will increase systemic risk. Ive just read an excellent article from Luke Clancy at Risk.net . Read it here (paywall) https://lnkd.in/eK8e2vSF. The increasing trend of principal trading firms (PTFs) and market-makers becoming direct members of central counterparties (CCPs) is reshaping clearing. While this shift offers benefits like greater liquidity and cost efficiency, it also introduces significant risks that must not be ignored. The US Treasury clearing mandate—requiring broker-dealers to clear US Treasury securities by December 2025 and repo trades for most participants by June 2026—has been a key driver. To preserve profitability in strategies like basis trading, where margin treatment is critical, many firms see self-clearing as a way to optimise margin offsets between cleared repos and futures. However, concerns from futures commission merchants (FCMs) and other market participants highlight critical risks: 1️⃣ Capital Requirements and Resilience: Banks and FCMs face strict capital rules. Banks must hold 3–5% capital against exposures, and FCMs must set aside 8% of required client margins. By contrast, non-bank CCP members can join with as little as $5 million. This disparity raises concerns about whether these firms can absorb losses during market stress, potentially endangering the system. 2️⃣ Default Fund Contributions and Intraday Risk: CCP default fund contributions are based on end-of-day positions, but PTFs and market-makers often hold substantial intraday exposures. Their trading strategies involve high daily volumes, creating risks that may not be fully captured by CCP risk models. This leaves the system vulnerable if a failure occurs. 3️⃣ Regulatory Oversight: Unlike FCMs, which face intense scrutiny from bodies like the CFTC, self-clearing PTFs operate with lighter oversight. This creates an imbalance, with CCPs incentivised to admit members based on commercial interests rather than systemic safety. If FCMs are heavily audited and fined for minor infractions, should self-clearing members face the same treatment? While some argue that more clearing members enhance resilience—citing examples like DRW’s role in managing Lehman’s positions during the 2008 financial crisis—the systemic risks cannot be ignored. Uniform capital requirements for all CCP members and revised margining practices to account for intraday exposures could help address these risks. As the US Treasury clearing mandate approaches, the industry must balance innovation with stability. How do we ensure progress doesn’t compromise resilience? Your thoughts on these developments are welcome. Glenn Handley SecFin Solutions Education and Consulting Services https://lnkd.in/ePeMPvTu

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The Commerce Commission has released its draft determination on our application for authorisation this week. We’re seeking permission to work with open banking stakeholders to make partnering simpler and more efficient, including an accreditation scheme and common terms and conditions for banks and third parties to use. The Commission has proposed approval of our application with conditions. We’re reviewing the draft determination in detail before giving our feedback as part of the process. We’re confident this type of partnering framework will make it easier for banks and third parties to work together – ultimately accelerating the growth of open banking in Aotearoa New Zealand.  Read more on our website here: https://lnkd.in/gTW7m_Q3 #OpenBanking #APICentre #PaymentsNZ #FuturePayments 

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AUSTRAC Launches Consultation on New AML/CTF Rules Framework This consultation covers several areas including #AML/ #CTF programmes, risk assessments, customer due diligence and travel rule information requirements. AUSTRAC https://lnkd.in/dupWyeTK

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https://lnkd.in/e84m7CAg The review documented that the #FCA delayed responding to 17 out of 18 #FOI requests received between July and December 2020. Specific findings indicate that the time extensions were improperly used not to ascertain the #publicinterest, as required, but rather to create additional time for deliberations on how to deny the requests.  #Finance #Regulation #Transparency

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The Bank of England last week published its second assessment under the Resolvability Assessment Framework (RAF). The assessment tests banks’ Resolution processes: their preparedness to “fail” in a managed and structured way. In addition to commenting on the specific preparedness of the eight major UK banks, the assessment contains useful focus areas for all banks’ Resolution Packs, including... 🔹 senior manager access to data, documentation, and MI to support resolution decision making in a stressed environment 🔹 the timely availability of valuation data 🔹 general preparedness to plan and execute multiple bespoke restructuring plans during a resolution event (a focus for the next assessment) 🔹 keeping resolution plans “live” via assurance A consistent theme across the assessment, and one to keep in mind for wider compliance, is evidencing/demonstrating that plans will work in practice, up to and including simulation testing. #BoE #RAF #Banks #RichardsonLissack

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The FCA has today launched a publication on proposed changes to the Financial Crime Guide for firms. https://hubs.li/Q02v1BYx0 The key changes proposed are: 📌extending the section on Sanctions, to include oversight, governance, management information and guidance on dealing with breaches 📌new guidance on Transaction Monitoring, including publication of good practice for moving between TM systems 📌the importance of oversight and evaluating the effectivness of TM systems and understanding the set-up 📌new guidance for crypto firms, including risk assessment and good and poor practice when using blockchain analytics in transaction monitoring. Responses to the consultation are open until the 27th June. #AML #financialcrime #amlcompliance

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UK - FCA, CP24/17: Enhancing the National Storage Mechanism The Regulator is consulting on proposals to change the requirements for submitting regulated information to the National Storage Mechanism (NSM). Read CP24/17 (PDF) Why we are consulting We want to introduce more comprehensive data requirements to improve the NSM’s functionality. This will make it easier for NSM users to find information submitted by regulated market issuers. We also propose a requirement for Primary Information Providers (PIPs) to use a standard method for submitting information to the NSM. Who this is for Issuers with securities admitted to trading on UK regulated markets and PIPs that disseminate and file regulated information for them. Investors, analysts, and other market participants that use the NSM. https://lnkd.in/eb6cKnU3 Reg-Intel @ illumini.ai #UK #FCA #Compliance #Risk #Legal #Reporting #Securities

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Clearing shake-up could see UK implementing some of the “positives” from Emir 3.0. https://hubs.li/Q02YV9-Z0 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free and allows you to read two articles a month: https://hubs.li/Q02YVdZ_0

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Our very own Claire Rees DipFCP, DipAML, Financial Crime Regulatory Specialist takes a closer look at the proposed FCA guidance for transaction monitoring in our recent blog: https://hubs.li/Q02z2DBj0 #AML #financialcrime #amlcompliance #FCA #TransactionMonitoring

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HM Treasury has announced its intentions to offer proportionality and further clarity in plans to update the technical elements of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs). The plans are designed to give businesses further guidance with the Treasury planning further changes to the AML supervisory regime currently in place. The further clarity from the Treasury has been emphasised on several important legal practices including digital identification and enhanced due diligence. Read more ⬇️ https://lnkd.in/e-EjGABG #hmtreasury #moneylaundering #aml #law #financialcrime

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🚨 Today marks the implementation of the new Financial Conduct Authority (FCA) anti-greenwashing rule!   This important regulation aims to protect consumers by ensuring that sustainable products and services are accurately described.   Read more here: https://lnkd.in/eCBJyUHZ   #FCA #AntiGreenwashing #Sustainability #ConsumerProtection #Transparency

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New Consumer Finance Regulatory Gap Analysis Template With the 31 July 2024 deadline for implementing Consumer Duty quickly approaching and the recent Dear CEO letters published by the FCA, the focus of our latest gap analysis is the implementation of Consumer Duty for closed consumer finance products. The FCA expects Firms’ senior management to carefully consider the content of the letter and take steps to ensure their firm is compliant with the Duty by the deadline. Our Regulatory Gap Analysis is the perfect way to do this as it sets out the key themes of the letter and a series of thought-provoking self-assessment questions that firms should be asking themselves as they prepare for the upcoming deadline. https://lnkd.in/gxSH7efM

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Are you ready for PSD3, PSR and FIDA? Tribe MD Alex Reddish delves into the intricacies of the regulations set to reshape open banking, data access and security in the financial sector: https://bit.ly/45LxKYh The Fintech Times | #PSD3 #PSR #FIDA #Payments #Fintech #PayTech

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Read fscom's recent blog on the Financial Conduct Authority's finalised guidance on financial promotions on social media. The fscom team focuses on the key messages from the regulator's guidance, and how firms should approach their financial promotion strategy moving forward. Read the full blog here: https://hubs.ly/Q02thhxL0 #financialpromotions #fca #regulator #guidance #blog

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