- FCA has launched consultation on change to the financial crime guide for firms.
- Crime captures a range of offenses, including insider dealing and manipulation.
- However, guide does not currently cover countering the risks of insider dealing.
Aims and Scope
- Guide provides practical assistance, information for firms of all sizes on actions
they can take to counter risk that they might be used to further financial crime.
- Follows FCA Dir. Hoggett Nov. 2017 speech on compliance on MAR.
- The consultation is relevant to all firms, who are subject to financial crime rules
in SYSC 6.1.1R, and who arrange, or execute, transactions in financial markets.
Insider Dealing Section
- Proposal is to create a new chapter on insider dealing and market manipulation.
- Observation of good and bad market practice around the requirement to detect,
report, counter, risk of financial crime, re insider dealing, market manipulation.
- Miscellaneous changes as a result of recent regulatory changes, e.g. MLR 2017.
- Propose complete renumbering to facilitate presentation in the online handbook.
- Where a firm has had repeated concerns, about the trading behavior of a client,
FCA will ask if it properly considered regulatory obligations, to counter the risk.
- Recognized some firms separate surveillance from financial crime/MLRO teams.
- Where firms separate the units, ensure adequate communication between them.
- Firms need to be aware of obligations under proceeds of crime act 2002 (POCA).
- Including the submission of Suspicious Activity Reports (SARs), to the UK NCA.
- Consultation open to Jun. 28, 2018, with proposed entry into force Oct. 1, 2018.