Five firms probed over trade surveillance by UK FCA, putting into motion buy-side compliance review – 23rd August

The UK Financial Conduct Authority (FCA) is investigating five firms, mainly brokers, targeting systems and controls for automated trade surveillance, according to a recently published disclosure under the Freedom of Information Act. Separately, the UK regulator has begun a multi-firm work programme to assess the effectiveness of buy-side trade surveillance and Market Abuse Regulation (MAR) compliance, said sources briefed on its June asset management conference where market abuse was a key topic. “This work is a follow up to TR 15/1 and is also aimed at seeing how the buy side is managing its MAR compliance. I expect the FCA to visit some buy-side firms once it reviews the questionnaires and will likely publish some informal guidance,” said Nick Bayley, managing director in Duff & Phelps’ regulatory consulting practice.