Principles and Practices of Financial Management meaning

In this issue: UK/ EU and international regulators and bodies Regulated activities Authorisation, approval and supervision Prudential requirements Financial crime and sanctions Consumer protection Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of benchmarks and IBOR reform Regulation of capital markets Sustainable finance and ESG Banks and mutuals Investment funds and asset management EU MiFID II Consumer credit, mortgage and home finance Regulation of insurance FSMA regulated pensions activity Payment services and systems Fintech and cryptoassets Regulation of AI in FS Dispute resolution for financial services lawyers LexTalk®Financial Services: a Lexis®Nexis community Financial Services Enforcement Database Intraday news alerts Daily and weekly news alerts New and updated content Dates for your diary Latest Q&As UK/ EU and international regulators and bodies Fourth omnibus simplification package proposes new rules for ‘small mid-caps’ The Commission...

In this issue: Commercial Competition and state aid Corporate Data protection and cybersecurity Dispute Resolution Free movement, immigration and employment Financial services Energy Environment Insurance and reinsurance IP Life sciences Regulatory TMT Daily and weekly news alerts New and updated content Trackers Commercial Commission launches consultation on revised unfair trading practices directive The European Commission has opened a public consultation to update EU rules tackling unfair trading practices in business-to-business relationships within the agricultural and food supply chain. The initiative seeks to account for shifting market dynamics and emerging practices, promote fairer dealings across the chain, and answer farmers’ calls for a fairer food system. The review is guided by an evaluation of existing EU rules on business-to-business unfair trading practices and the Vision for Agriculture and Food framework. As part of its Work Programme and REFIT initiative, the Commission plans to present a proposal for...

In this issue: New technologies Internet Data protection Media Advertising, marketing and sponsorship Reputation management Telecommunications LexTalk®TMT: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information New technologies An in-depth look at the EDPB Opinion on personal data processing within AI models On 17 December 2024, the European Data Protection Board (EDPB) issued Opinion 28/2024, addressing specific data protection questions arising from the processing of personal data in the sphere of artificial intelligence (AI) models. The Opinion emphasises a firm expectation that controllers rigorously evaluate and document their determination of an AI model’s anonymity, including an appraisal of the likelihood of identification, measured against the criteria set out in the Opinion. Alex Jameson of Bird & Bird examines the background to the Opinion and the headline takeaways. See News Analysis: A deep dive into the EDPB’s Opinion on...

This Practice Note outlines the EU remuneration framework contained in the Capital Requirements Directive 2013/36/EU (EU CRD IV) and Regulation (EU) 575/2013 (EU CRR), together with the remuneration provisions in the Investment Firms Directive (EU) 2019/2034 (IFD) and the Investment Firms Regulation (EU) 2019/2033 (IFR). These rules apply to pay awarded by credit institutions and investment firms to their staff... Background and introduction to EU CRD IV and EU CRR In the aftermath of the 2008 global financial crisis, the Financial Stability Board (FSB) and a number of national regulators reviewed remuneration governance and structures across financial services. They concluded that: firms and supervisors underestimated how pay policies and practices could fuel excessive risk-taking remuneration design, notably cash-heavy, short-term incentives, promoted undue risk appetite bonus pool methodologies did not adequately reflect firms’ capital and liquidity costs or the risks borne performance management focused too narrowly on financial results and overlooked multi-year outcomes The FSB consolidated these conclusions into a...

Introduced in 2023, the Financial Conduct Authority’s (FCA) Consumer Duty (the Duty) signalled a major change in the FCA’s regulation of the retail sector, setting higher expectations for the level of care firms owe to consumers. The Duty forms part of the FCA’s shift to an outcomes‑based regime, prompted by worries that many firms took a reactive, ‘tick‑box’ approach to compliance. The FCA was dissatisfied with the consumer outcomes achieved under existing Handbook provisions, including the Principles for Businesses Sourcebook (PRIN), the Product Intervention and Product Governance Sourcebook (PROD), and the pre‑existing client best interest rules within the Conduct of Business Sourcebook (COBS) and the Insurance: Conduct of Business Sourcebook (ICOBS). Consequently, the FCA expects firms to raise their standards to meet the Duty’s requirements... Key points on the Consumer Duty are as follows: It took effect on 31 July 2023 for new and existing products and services that are open to sale or renewal, and on 31 July 2024 for products and services in closed...

STOP PRESS: In 2024, the Financial Reporting Council (FRC) initiated a review of the UK Stewardship Code. The opening phase centred on targeted outreach designed to test whether asset managers, asset owners and other signatories are using the current Code in ways that deliver stronger stewardship outcomes through engagement with issuers across all asset classes in particular. Acting on the feedback received, the FRC introduced measures to lighten the reporting burden for signatories to the UK Stewardship Code, with those changes coming into force on 31 October 2024. The second phase took the form of a public consultation, which was launched on 11 November 2024 and closed on 19 February 2025. A revised UK Stewardship Code was published on 3 June 2025, with implementation and the first reporting cycle planned for 2026 thereafter. For further information, see LNB News 27/02/2024 16, LNB News 22/07/2024 31, LNB News 11/11/2024 28 and LNB News 03/06/2025 46. The UK Stewardship Code traces its origins to Sir David Walker’s final review of corporate...