Shiv K.

Investment firms - the Financial Conduct Authority has recently announced new rules and proposals giving asset managers "greater freedom" in how they pay for investment research. The regulator has suggested this will strengthen the UK's position in capital markets - I would agree with this.   Here's what you need to know. 👇   🔵 The new rules will allow the "bundling" of payments for research and trade execution. 🔵 This payment option will make it easier to buy research across borders as its compatible with rules in other jurisdictions. 🔵 There's a proposal to establish the new Public Offers and Admissions to Trading Regime which will replace the existing UK Prospectus Regulation. Companies will still be required to publish a prospectus for initial public offerings, but it will reduce the requirements for additional capital raises. 🔵 The FCA has been consulting on proposals for a new activity of operating a public offer platform. This will provide alternative routes for companies to raise capital outside public markets.   Some interesting developments for sure. As the FCA has stated, these changes are designed to balance investor protection with allowing capital markets to thrive.   Are you an investment firm looking for help on how best to capitalise on these changes? Reach out to myself or Thistle Initiatives.   https://lnkd.in/d_K_vfKN #MiFIDII #Researchpayments #Regulatorycompliance

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Salary Guides as a Strategic Tool As the UK Treasury market gains momentum following elections, hiring managers must harness this renewed energy to drive recruitment strategies and make informed decisions about future workforce planning. Political clarity and market stability often signal opportunities for growth, and companies that capitalise on this period of recovery will be better positioned to attract top talent. A key tool that can support hiring managers during this time is the use of #salary guides. They offer critical insights into market trends, salary expectations, and compensation benchmarks. How Can Salary Guides Help You? 1. Informed Budgeting: Salary guides provide current data on salary trends by sector, location, and role, helping you develop accurate #recruitment budgets. This ensures your compensation packages are competitive and realistic, reducing the risk of losing top candidates. 2. Negotiation Support: Having up-to-date salary benchmarks strengthens your negotiation position, allowing you to confidently offer compensation that aligns with market standards. 3. Sector-specific insights: Salary guides highlight trends across different sectors, helping you target talent in high-demand areas and focus your recruitment strategy on the most valuable skills. 4. Overall Compensation Beyond Salary: In addition to base salary, these guides provide insight into total #compensation packages, including benefits, bonuses, and perks—enabling you to craft attractive offers that meet candidate expectations. 5. Recruitment Strategy Support: With data from salary guides, you can tailor your recruitment strategy to meet current and future workforce demands, ensuring your organisation remains competitive in attracting the best talent. As the market picks up and you start planning for future growth, download our #Treasury Salary Guide to help you stay competitive and attract the top talent your business needs. https://lnkd.in/e9xRhYHY

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EXTERNAL AUDIT AND IT AUDIT ROLES UP TO £450k OTE ON OFFER - UK WIDE! Are you an External Audit or IT Audit Consulting Leader that feels undervalued and under rewarded in a global consulting firm, particularly the Big 4? We are seeing swathes of Senior Managers, Directors, and Partners quitting these organisations every week, for reasons including: Being paid less than a tenth of the 7 figure revenue they bring in, whilst watching your bosses and others at your firm trouser the lion share of the rest for themselves? Broken promises of promotions saying "it will happen next year" for a flimsy reason Horrendous work life balance including 80 hour plus weeks - 5 days in the office Huge attrition problems from your drained teams that also work these long hours and are pulled in too many directions. Significant quality challenges that make angry regulators criticize and fine your employer who continually do not invest enough to address this and instead create a blame culture. IF THIS IS YOU - THERE IS A BETTER WAY! WE ARE WORKING WITH CLIENTS GEARED TO MAKING YOU A 7 FIGURE EARNING CONSULTING LEADER - THEY WILL REWARD AND INSPIRE YOU AS AN EQUAL STRATEGIC PARTNER TO THEM FROM DAY 1 - SO YOU CAN INSPIRE OTHERS AS YOU GROW A MULTIMILLION POUND OFFERING WITH THEM. External Audit Partner - Corporate - up to £450k OTE Year 1 and £600k OTE Year 2 - LLP with offering to earn £1-2 million a year in Year 5 - London - Leading Accountancy Practice External Audit Partner - Financial Services - up to £400k OTE Year 1 and £600k OTE -Year 2 - LLP with offering to earn £1-2 million a year in Year 5 - London and Cayman Islands (2 separate roles) London Managing External Audit Partner £275k Package plus Equity - Top 25 firm - London Audit Partner - Leeds - Top Regional 50 firm in Leeds - up to £150k Equity Package Audit Director (140k Euros) or Partner (up to 240k Euro plus Equity) - Top 30 Irish Firm - Dublin UK Managing IT External Audit Partner up to £400k OTE Year 1, Year 2 £550k OTE and Year 5 Global LLP with £20 million plus revenue and £2 million Annual Package - Boutique Unicorn Accountancy Firm - London Internal Audit Equity Director or Partner - Excellent Salary plus 25% Ownership in LLP - UK Management Consultancy - UK Wide UK based candidates only So join our top-tier client who want to partner with you in hugely successful global businesses already. Interviews or even informal Teams chats with their MDs anytime whom I work directly beyond HR. We now have a record number of confidential and exclusive mandates like this, and we are getting offers every week from Audit Consulting leaders to join, many who have quit the Big 4. Contact me on Tel: 0203 597 3362 or Email: [email protected] anytime for a confidential discussion. Don't delay, we already have offers for Audit leaders who are now looking to quit the Big 4, and join these revolutionary offerings. # Be Inspired # Strategic Partnership # Find a Better Way

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The FCA has published its portfolio strategy letter for financial advisers and investment intermediaries (link in comments). Some 'hot takes' below. Things we expected: 🔎 Focus on the design and delivery of ongoing services: This is a key ongoing project which has already seen regulatory interventions in some firms, so the publication of findings later this year is likely to be a noteworthy event. 🔎 Continued focus on retirement income advice: The FCA has been undertaking follow-up supervision work linked to its thematic review publication and will update on findings in Q1 2025 - expect stronger action if it continues to find concerns in key areas. 🔎 Firms holding adequate financial resources to meet their redress liabilities: Making sure the 'polluter pays' remains an ongoing supervisory focus area, with next steps on the 'capital deduction for redress' consultation due before the end of this year. 🔎 Delivery of outputs from Advice Guidance Boundary Review: The letter gives no further information on next steps but a consultation is expected in the next few months. 🔎 Monitoring/testing higher standards under the Consumer Duty: No additional information is given on how the FCA is taking this forward, but we know the Duty remains a key litmus test within its BAU supervisory activities. New initiatives: 🔎 Thematic review of firms involved in adviser consolidation/acquisition: This topic has been on the FCA's radar for a while, so the announcement could suggest it's concerned the risks from the acquisition of firms and/or their assets are increasing. 🔎 More data-led supervision of firms: The FCA plans to start sending more probing data requests to firms in 2025, mimicking the approach it has taken for wealth managers. Key take-aways: 💡 It's clear that the FCA is looking to leverage the Duty's higher standards to target a range of key sectoral issues, including retirement income advice, ongoing services and consolidation. So I would expect it to look to use the upcoming publications to define what 'good' and 'bad' looks like under the Duty. 💡 The news of thematic work on advice firm consolidation is big news. PE-backed consolidation has been one of the key sectoral trends within the last 3-4 years, so the FCA's decision to undertake the review now is interesting. It may have been prompted by concerns within its existing supervisory caseload or in response to the recent flurry of Duty-related acquisition/asset-purchase activity. Whatever the reason, the FCA is sure to be eyeing the opportunity it now has to look at this topic through the more exacting lens of the Consumer Duty. 💡 The advent of more data-led supervision on this large portfolio (c.6k businesses) will see a much wider population of firms come under closer regulatory scrutiny. So it's important firms ensure they are ready for this. #fca #retailinvestments #financialadvisers #regulationspecialists

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The latest edition of the KPMG Regulatory Barometer has landed! The Barometer identifies the key pressure areas across the evolving UK and EU regulatory landscape for financial services and measures the impact of the change on firms. Report highlights include: 📈 Regulatory responses to economic uncertainty and emerging risks and opportunities 🖋️ EU:UK regulatory alignment and divergence 💡 Key considerations for firms Read the full report: https://lnkd.in/edvtVs75 #FinancialRegulation #KPMGRegulatoryBarometer

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Significant opportunity for FS / Fintech recruiters Welcome back from the summer holidays. Great news for any recruiters dealing with Fintech firms. A lot of EU based financial institutions are likely to have to set up a UK entity, with at the very least an FCA approved CFO and MLRO by the end of the year (2024) - if they don't already have one. IMPACTED: EU / International firms operating in the UK under the FCA Temporary Permissions Regime (that expires at the end of the year). After Brexit, the FCA agreed that EU regulated financial services firms could continue operating in the UK under their "Temporary Permissions Regime (TPR). This was designed to give EU based firms time to set up a UK entity and apply for authorisation from the FCA. The application for authorisation requires the firm to provide a lot of detail, including specifying the key officers (e.g. CFO and MLRO) who will be overseeing the firm if authorised and a business plan demonstrating that once authorised the firm will be financially stable and meet FCA capital requirements, etc. Normally the proposed CFO and MLRO would be heavily involved in preparing the application for authorisation and the business plan. The FCA promises to respond to applications within 3 months, but in reality, after any questions they may have, getting authorisation normally takes around 6 months. We are currently 4 months away from the year end deadline, after which any fintech which hasn't obtained authorisation would likely have to stop doing business with UK clients until their authorisation comes through. (It would clearly make their investors deeply unhappy if the company had to put UK business on hold for a few months and they lost clients as a result). It is likely that a number of International / EU based firms will urgently need to appoint a CFO and MLRO, get their application in and hope that the application is approved before the end of 2024. As recruiters, you could probably win a mandate to find a CFO and MLRO for impacted firms by checking with your VC and PE networks whether any EU based FS / Fintech firms they back (a) do business in the UK (or plan to start doing so in 2025), and (b) have yet to set up an FCA authorised UK entity. If you have an international presence, you could directly contact EU based firms that you deal with to see if this is an issue for them. As the FCA in many cases has to explicitly approve the proposed CFO, their safest bet to ensure their authorisations go through as quickly as possible is to find a CFO who was previously approved by the FCA in their current / last role. NB I was approved by the FCA to act as CFO in my last role, which was with an FCA regulated business. I also helped a previous client prepare their FCA application and have strong regulatory experience, so if you find an EU client needing to hire a CFO for a UK entity, please keep me in mind. All the best in signing up a few new clients! #Fintech #recruiting #VentureCapital #CFO

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An article we hope many of you will find interesting. We recently had the pleasure of speaking with Dominic Lynch about the practical application of AI to treasury/BSM activities. A fascinating read on the future direction of treasury activities.

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The FCA are asking for industry comment following their paper published on 18 July of their UK domestic PEPS review. An interesting point is how quickly after a PEP leaves office is declassification considered? Surely if you were corrupt you would wait until you had left office to process your 'gains'? Or leave any ill gotten assets dormant for a while until you're declassified then launder away? Would love to hear people's views on this. Appreciate generally most PEPs are law abiding but as history has proven, not always the case sadly. https://lnkd.in/eWQ8ZT2w

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Portfolio Letter: FCA's expectations for financial advisers and investment intermediaries In its recent portfolio letter to financial advisers/investment intermediaries, the FCA has set-out its plans for the coming few years, and some will have been surprised to see consolidation on the agenda. As a consultancy who work extensively on many buy/sell side transactions regarding investment advisors, we are perhaps less surprised, as the conversation with our clients (often P.E firms) has noticeably reflected the changes in regulation, with matters such as price and value, centralised investment propositions, and ongoing advice, all topics becoming more and more central than perhaps they were before the Consumer Duty. This announcement signals that the FCA will closely monitor this market, likely resulting in greater regulatory hurdles and more rigorous oversight. PE firms should see this as a cautionary message, requiring some consideration of how profitability can be balanced with consumer protection matters, and how this can be demonstrated, if necessary. Having an experienced and rigorous due diligence partner in your corner is therefore important. If you are in the market for either buy/sell side transactions and want to pick our brains further, feel free to reach out to either myself, or Sebastien Petsas for a no-pressure conversation.

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The UK Autumn Budget 2024 was just released by The Chancellor of the Exchequer Rachel Reeves. Here is your summary of key items announced: ★ HMRC will hire 5,000 compliance officers, update their IT systems and enhance their app, improving the user experience for millions of taxpayers. ★ Minimum wage to rise by 6.7% to £12.21. ★ Increasing the State Pension by up to £470 in line with the Triple Lock. Uprated by 4.1%. ★ Fuel Duty Frozen for next year - this is a tax cut worth £3bn and will save motorists almost £60 a year. ★ No increase in the basic, higher or additional rates of Income Tax, National Insurance, or VAT. ★ Increase in Employer National Insurance contribution by 1.2% to 15%. This will raise £25bn a year. ★ Lower rate of capital gains tax will rise from 10% to 18%, and the higher rate from 20% to 24% CGT on residential property will remain unchanged. ★ Inheritance tax threshold frozen until 2030. Loophole will be closed by bringing inherited pensions into inheritance tax from April 2027. ★ Abolishes the nom-dom tax regime from 2025 and introduce a new “residence-based scheme with internationally competitive arrangements for people coming to the UK on a temporary basis”. ★ Income tax thresholds will not be frozen beyond the current freeze running to 2028-29. They will then be uprated in line with inflation. ★ Next year, the defence budget will rise by £2.9bn, with an additional £2.26bn a year for Ukraine “for as long as it takes”. ★ Reeves confirms the government’s new investment rule will see debt defined as “public sector net financial liabilities”. ★ Government will invest an additional £100bn over the next five years in capital spending. The investment will increase GDP by up to 1.4%. ★ £22.6bn increase in the “day to day” health budget, and a £3.1bn increase in the NHS capital budget, to enable the NHS to deliver 3 per cent productivity growth next year. ★ Government will invest in 11 new green hydrogen projects. #AutumnBudget2024 #Budget2024 #UKEconomy

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Consultation is open on a scheme similar to the Common Reporting Standard for crypto asset providers. This will require reporting to HMRC by 31 May 2027 for the calendar year 2026. This means all UK crypto firms will need accuracy and completeness checks on their data and also make sure their CDD processes is collecting the right data from their customers to make an accurate return before 1 January 2026. The draft consultation is clear that insufficient funds to do so, is not an excuse! ✅Linked here https://lnkd.in/e-U4P4dK

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Hot off the press, the FCA has issued their latest Dear CEO letter, outlining their priorities for financial advisers and intermediary firms.   As expected, the FCA will continue to scrutinise firms providing retirement income advice as well as the delivery of ongoing advice services, following their deep dive review and information requests in the last year. The FCA’s key message is that firms must be prepared to show that client’s needs are at the heart of their business model, fair value is provided and that overall they are able to demonstrate good outcomes are delivered under the Consumer Duty.   The FCA has also highlighted their concerns in relation to firm consolidation, and reminds firms to ensure that the relevant regulatory elements are considered throughout the whole consolidation process, not just within the due diligence space. The regulator will conduct further work within this space so we should hear more in the coming months.    The FCA will also look more closely at firms’ (including principal firms’) financial resources in light rising FSCS bills in the past decade, to ensure they hold adequate resources to meet potential redress liabilities, especially when transferring/selling client books.   Please get in touch with us to find out more.   https://lnkd.in/gcJg97WZ

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Ooof... The Financial Conduct Authority has announced two significant actions against audit firms in quick succession: (1) yesterday - an auditor, Macintyre Hudson LLP, was censured for "failing to prepare client asset reports to the required standard" (https://lnkd.in/ejqkAMKk); and (2) today - PWC "for failing to report to the regulator their belief that London Capital & Finance plc (LCF) might be involved in fraudulent activity. This is the first time the FCA has fined an audit firm." What could this mean for FCA regulated firms which use the services of auditors going forward? Will auditors become more: (i) selective of the staff who perform audits of certain types of firm; (ii) probing; (iii) risk averse? We shall see... https://lnkd.in/efYi9F_s

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Positive Change Experiences Hi. The London team of MDD Forensic Accountants has recently relocated a few hundred metres down the road and now share a much larger open-plan layout with parent company Davies and sister companies such as Asta Capital Limited and Davies - Consulting Division. After reading this, if anyone has any tips or positive experiences about #change or office moves, specific to #insurance or general, please consider sharing as it will help many going through it now or in the future. It’s been great to meet so many new people in such a short time and the welcome given has been motivating. To avoid being vague, below is a list of some inspiring positive experiences if you can take a few moments to read: 1. Ruben Astheimer, Sophia Glyva, and Henry Way from a sister company, kindly received me in their group for lunch last week which gave me an opportunity to integrate with a sister company. 🍔 Louise Delany and Lorraine Harfitt from sister companies have also greeted us openly. 👋 2. Loren Bursic and Antonia Morgan from Facilities, gave staff a tour of the floors and have been proactive in arranging the infrastructure needed, even down to considering a variation in the refreshments available. This helps the team adapt into the office and keep service running with minimal disruption. 🏣 3. Colleagues from the parent company have been very encouraging and have taken time to connect, socialise, and understand our team – to name a few: Josh Coote, Luke Hilditch, Daniel Garcia, Liam Priestley, MBA, Mark Grocott, Dan Saulter, Neil Carnaffan, Peter Wilson, Antonia Callingham. This means the subsidiary doesn't just feel like a number, but a valued part of the wider team. 👩‍👩‍👧‍👦 4. Matthew Whitehall and Ann-Marie Thompson at reception have a 'can-do' attitude, supplied staff with security passes, and continue to guide us to our meeting rooms in the building when we're lost! ➡ ⬇ ⬅ ⬆ 5. Market colleagues from non-related firms in the building, like Joseph Putnam and Emma Olney from AXA XL gave us their good wishes at a get-together recently. 🤝 Clearly we retain the previous relationships and responsibilities, but I wanted to share the #positivity and #opportunities that can come with change. That said, it cannot be concealed that some find change challenging, which is even more reason if anyone has anything helpful to share to please feel free. On a final note, it would be remiss of me to not give massive praise to Şebnem Gaffney, Sahima Khatun, and Danielle Coomber from MDD for relentlessly working hard in making the physical move happen. You know those staff that you see beavering away for a team goal - this was them. All the best. Hope this helps.

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**Effective Board Reporting** Working at a PRA or FCA-regulated firm and looking to understand the Board reporting requirements or enhance what you already have? There are some places left on our (highly rated by delegates) course for CTP "Board Reporting for FCA and dual-regulated firms" on 14 November. With the Consumer Duty and the "reasonable steps" requirements on senior management to meet the civil law tests of the FCA rules, effective Board Reporting is a keystone of any defence when under regulatory scrutiny - in fact is is one of the first items sought under a section 165 request so firms should think of their Board Reporting and subsequent minutes as a "first line of defence" in terms of regulatory scrutiny. Course details below or DM me for more information. https://bit.ly/3Upy3DM

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Barclays' £40M Fine: The Hidden Cost of Qatari Lifeline in 2008 Crisis Barclays has been hit with a £40 million fine by the Financial Conduct Authority (FCA) for failing to disclose crucial arrangements with Qatari entities during its 2008 capital raising. These were material matters which should have been disclosed to shareholders and potential shareholders. Failure to disclose was effectively misleading, false and/or deceptive. The failure relates to fee arrangements in connection with the capital raise, the fees amounted to £322 million. The fine marks the end of a long-standing case that sheds light on the bank's strategic moves during the financial crisis. This particular can has been kicked so far down the alley it’s in a different city. The Qatari Gambit: Independence at What Price? While other UK banks sought government bailouts, Barclays took a bold step by raising over £11 billion from investors in Qatar, Abu Dhabi, and other regions. This move allowed Barclays to maintain its independence. The Aftermath: Transparency and Trust in the Spotlight Steve Smart, joint executive director of enforcement and market oversight at the FCA, emphasized the seriousness of Barclays' past actions. However, he noted that the bank has since undergone significant transformations, with none of the current leadership involved in these events. I suspect if they had SMCR would have left some teeth marks in key individuals who were described by the FCA as “reckless” together with the bank. Lessons for the Financial World This case serves as a powerful reminder for all listed firms about the critical importance of full disclosure and maintaining investor trust. It underscores the vital role of regulatory bodies like the FCA in ensuring accountability and upholding market integrity. As we reflect on this landmark decision, few observations: - When entering into agreements there should be an assessment of the value added. This should be documented and should not simply be a “commercial bet”. - When taking external legal advice ensure key facts are disclosed. Poor instructions lead to bad advice. - Desperation leads to poor decisions. Have a strong counter-view on the room to maintain appropriate challenge. My suspicion is that many observers will shrug their shoulders, if it generates any reaction at all. Firstly it was a long time ago and secondly, sadly, it’s become sort of what people expect from financial services. We should however expect better and hopefully the FCA will continue to drive that. Share your thoughts in the comments below. #FCA #FinancialRegulation #TransparencyMatters #prospectus #listingrules https://lnkd.in/emyKbtgQ

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