Financial services firms are required to maintain robust anti-money laundering (AML) systems and controls, since they are at risk from those seeking to launder the proceeds of crime or to finance terrorism. Between 26 November 2012 and 29 January 2016, Canara failed to maintain adequate AML systems and failed to take sufficient steps to remedy identified weaknesses, despite having been notified of shortcomings in its AML systems and controls.
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The Financial Conduct Authority (FCA) has today finalised rules creating a new category within its premium listing regime to cater for companies controlled by a shareholder that is a sovereign country. In July last year, the FCA consulted on proposals aimed at encouraging such companies to choose the higher standards of premium listing, rather than standard listing.The FCA thinks there is considerable benefit to investors if corporate issuers agree to meet these additional premium requirements.
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The Independent Evaluation Office of the IMF published a report “The IMF and Social Protection”. While the report recognizes that the Fund has made progress in advancing its engagement on social protection issues, it also notes that there is room to do better. One of the key IEO recommendations was for the IMF to establish a new strategic framework on its engagement on social protection issues. This recommendation was endorsed by the Board and the IMF Management proposed (see Management Implementation Plan) that a paper be prepared for Board discussion by February 2019.
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The Financial Conduct Authority (FCA) has published draft rules outlining how it will regulate claims management companies (CMCs) when regulation passes to the FCA on 1 April 2019. Following a review of CMC regulation commissioned in 2015, the Government announced that the FCA would take over regulation of CMCs. Regulation will extend to Scotland, where firms are currently unregulated. The FCA has today set out how it proposes to authorise and supervise firms and the steps it will take should CMCs breach FCA rules.
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by Josée Weydert & Jad Nader

The new act on markets in financial instruments (the “MiFID Act”), transposing Directive 2014/65/EU on markets in financial instruments (“MiFID II”) and implementing Regulation (EU) No 600/2014 on markets in financial instruments (“MiFIR”), was voted into law on 15 May 2018 and published on 30 May 2018. The MiFID Act will enter into force on 4 June 2018. Most issues related to markets in financial instruments are covered by the first part of the MiFID Act, while the provision of investment services will continue to be governed by the Financial Sector Act of 5 April 1993 (the “LFS”), as amended by the second part of the MiFID Act.
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The European Securities and Markets Authority (ESMA) has formally adopted new measures on the provision of contracts for differences (CFDs) and binary options to retail investors. The measures have been published in the Official Journal of the European Union (OJ) today. They will start to apply from 2 July 2018 for binary options and from 1 August 2018 for CFDs and will apply as follows: (1) Binary Options (from 2 July 2018) – a prohibition on the marketing, distribution or sale of binary options to retail investors; and (2) Contracts for Differences (from 1 August 2018) – a restriction on the marketing, distribution or sale of CFDs to retail investors. This restriction consists of: leverage limits on opening positions; a margin close out rule on a per account basis; a negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and a firm specific risk warning delivered in a standardised way.
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Jean-Paul Servais, chairman of the Financial Services and Markets Authority (FSMA), has been re-elected as vice-chairman of the International Organization of Securities Commissions (IOSCO) and to chairman of the Europees Regionaal Comité.

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