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☆ BlueCrest stymies UK bid for $700 million client redress
▼ + stars: | 2023-06-22 | by ( ) www.reuters.com time to read: +1 min

They said the FCA estimated the redress sum to be more than $700 million but that the regulator's penalty decision notice demonstrated "muddled thinking", a decision dated June 21 showed. However, the FCA has also proposed fining the former hedge fund 41 million pounds ($52 million) in 2021 for conflict of interest failings over a fund set up for BlueCrest staff. BlueCrest said it welcomed the decision to strike out the proposed redress case and that it would continue to defend its position vigorously. The FCA has said BlueCrest failed to manage fairly a conflict of interest created by switching portfolio managers working on a fund open to investors outside BlueCrest to an internal fund open to partners and employees, leading to "substandard" client service between 2011 and 2015. ($1 = 0.7853 pounds)Reporting by Kirstin Ridley; editing by Diane CraftOur Standards: The Thomson Reuters Trust Principles.

Persons: Michael Platt, BlueCrest, Kirstin Ridley, Diane Craft Organizations: BlueCrest Capital Management, Financial, Authority, Thomson Locations: London, BlueCrest

A spokesperson for the hedge fund declined further comment on Thursday. Big banks typically agree terms with hedge funds that allow them to cut ties at short notice, five sources from prime brokerages and hedge funds told Reuters. Prime brokerages may now refine due diligence processes and perform more thorough background checks on hedge funds, said Jim Neumann, chief investment officer of Sussex Partners, which advises investors on how they give their money to hedge funds. But many of these agreements mainly focus on the financial viability of the hedge fund, two of the sources said. One hedge fund manager said he was asked in his due diligence with the bank if he was approved by the UK regulator, the Financial Conduct Authority.

Persons: Banks, Crispin Odey, Goldman Sachs, Morgan Stanley, MS.N, Odey, Epstein, Michael Oliver Weinberg, JPMorgan Chase, JPM.N, Jeffrey Epstein, Bill Hwang, brokerages, Jim Neumann, Neumann, Archegos, Erika Kelton, Phillips, Cohen, Nell Mackenzie, Kirstin Ridley, Carolina Mandl, Dhara Ranasinghe, Elisa Martinuzzi, Matthew Lewis Organizations: Wall, Odey, Management, Financial Times, Tortoise Media, JPMorgan, Odey Asset Management, Reuters, CMT, Archegos Capital Management, Sussex Partners, UBS, Financial, Authority, Thomson Locations: London, New York

☆ Factbox: Who are Crispin Odey and hedge fund Odey Asset Management?
▼ + stars: | 2023-06-15 | by ( ) www.reuters.com time to read: +5 min

Here are some key facts about Odey, London-based OAM, the allegations, and their fallout:WHO ARE CRISPIN ODEY AND ODEY ASSET MANAGEMENT? Odey, 64, founded the asset management firm which bears his name in 1991. HOW BIG IS ODEY ASSET MANAGEMENT? Schroders and Canada Life last week moved to cut back their dealings with asset management businesses with links to Odey. It is looking increasingly unlikely, even though larger funds such as Odey Asset Management Group are made up of many funds with different trading strategies.

Persons: Crispin Odey, OAM, Odey, CRISPIN ODEY, Kwasi Kwarteng, Goldman Sachs, Morgan Stanley, James Hanbury, Hanbury, Peter Martin, Carolina Mandl, Nell Mackenzie, Elisa Martinuzzi, Dhara Ranasinghe, Alexander Smith Organizations: Odey, Management, Reuters, Financial Times, WHO, Asset Management, Conservative Party, Securities and Exchange Commission, Financial, Authority, Lawmakers, JPMorgan, UBS, CAN, Odey Asset Management, Inc, Carolina, Thomson Locations: London, Schroders, New York

☆ London's embattled hedge fund to be broken up as Wall Street banks cut ties over sexual harassment allegations
▼ + stars: | 2023-06-15 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

London-based hedge fund Odey Asset Management will break itself up, it said in a letter to investors Thursday. Its founder Crispin Odey was accused of sexual harassment by 13 women in a Financial Times investigation published last week. JPMorgan and Morgan Stanley both cut ties with the asset manager after the allegations broke. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. The firm's founder Crispin Odey was accused of sexual harassment or assault by 13 women in a Financial Times investigation published last week.

Persons: Crispin Odey, Morgan Stanley, —, Odey, gilts, Liz Truss's, Liz Truss Organizations: Management, Financial, JPMorgan, Service, Investment, UBS, Authority, European Union – Locations: London, Brexit

REUTERS/John Sibley/File PhotoLONDON, June 15 (Reuters) - Odey Asset Management is in advanced talks to move funds and staff to other asset managers as it grapples with the fallout of sexual misconduct allegations against its founder Crispin Odey. A spokesperson for the hedge fund declined further comment on Thursday. Hedge funds such as OAM rely on leverage from prime brokerage service providers to make their market bets. Without a prime broker, a hedge fund which needs to borrow stocks cannot function. A spokesperson for OAM also declined to comment on whether the moves signalled that the hedge fund would close.

Persons: Crispin Odey, John Sibley, Odey, Goldman Sachs, Morgan Stanley, JP Morgan, James Hanbury, Harriett Baldwin, Nell Mackenzie, Sinead Cruise, Dhara Ranasignhe, Alexander Smith Organizations: REUTERS, Odey, Management, Financial Times, Tortoise Media, Reuters, UBS, Authority, Asset Management, FCA, Treasury, Thomson Locations: Westminster, London, Britain

☆ Factbox: Governments race to regulate AI tools
▼ + stars: | 2023-06-13 | by ( ) www.reuters.com time to read: +6 min

CHINA* Planning regulationsThe Chinese government will seek to initiate AI regulations in its country, billionaire Elon Musk said on June 5 after meeting with officials during his recent trip to China. ITALY* Investigating possible breachesItaly's data protection authority plans to review other artificial intelligence platforms and hire AI experts, a top official said in May. ChatGPT became available again to users in Italy in April after being temporarily banned over concerns by the national data protection authority in March. SPAIN* Investigating possible breachesSpain's data protection agency said in April it was launching a preliminary investigation into potential data breaches by ChatGPT. The Biden administration earlier in April said it was seeking public comments on potential accountability measures for AI systems.

Persons: Alan Turing, Elon Musk, Margrethe Vestager, Vestager, CNIL, Dado Ruvic, Ziv Katzir, Israel, ChatGPT, OpenAI, Antonio Guterres, Guterres, Michael Bennet, Biden, Alessandro Parodi, Amir Orusov, Jason Neely, Kirsten Donovan, Milla Nissi Organizations: Microsoft, Authority, Reuters, EU, Key, European Consumer Organisation, Seven, REUTERS, Israel Innovation Authority, UNITED, International Atomic Energy Agency, United Nations, U.S . Federal Trade Commission's, Thomson Locations: AUSTRALIA, BRITAIN, Britain, CHINA, China, Beijing, U.S, FRANCE, Italy, Hiroshima, Japan, IRELAND, ISRAEL, Israel, ITALY, JAPAN, SPAIN, Gdansk

☆ Factbox: Who are Crispin Odey and the hedge fund Odey Asset Management?
▼ + stars: | 2023-06-10 | by ( ) www.reuters.com time to read: +4 min

June 10 (Reuters) - Crispin Odey, one of Britain's best-known hedge fund managers, is leaving Odey Asset Management following allegations of sexual misconduct, the firm's executive committee said on Saturday. Here are some key facts about Odey, his London-based hedge fund, the allegations, and the fallout:WHO IS CRISPIN ODEY AND ODEY ASSET MANAGEMENT? Odey Asset Management (OAM) is known for highly leveraged bets trading global equities, debt, currencies and commodities. Besides Odey Asset Management, the group also runs Brook Asset Management and Odey Wealth, a private wealth unit. Brook Asset Management and Odey Wealth, both part of the Odey Group, are run by different portfolio managers such as James Hanbury and Peter Martin, the chief executive of Odey Asset Management.

Persons: Crispin Odey, Odey, CRISPIN ODEY, Kwasi Kwarteng, ODEY, James Hanbury, Peter Martin, Goldman Sachs, Morgan Stanley, Schroders, Carolina Mandl, Nell Mackenzie, Dhara Ranasinghe, Daniel Wallis Organizations: Odey, Management, Financial Times, WHO, Conservative Party, Odey Asset Management, Asset Management, Securities and Exchange Commission, Reuters, Financial, Authority, Inc, JPMorgan, UBS, Carolina, Thomson Locations: London, New York

NEW YORK/LONDON, June 10 (Reuters) - Crispin Odey, one of Britain's best-known hedge fund managers, will be leaving the company he founded, Odey Asset Management, following allegations of sexual misconduct, the firm's executive committee said on Saturday. Odey and Duncan Lamont, a consultant at law firm Charles Russell Speechlys, which represents Odey Asset Management (OAM), did not immediately respond to a Reuters request for comment about the hedge fund manager's departure. OAM will continue to operate without him and his partners will control and manage the asset management firm, the company said. It added it has been investigating allegations concerning Odey, but cannot comment in detail because it is bound by legal obligations of confidentiality. Odey told the FT on Saturday that he had been notified of the firm's position, adding: "You have to have (a) willing buyer, willing seller."

Persons: Crispin Odey, Odey, Duncan Lamont, Charles Russell Speechlys, Goldman Sachs, Morgan Stanley, Goldman, Carolina Mandl, Nell Mackenzie, Kirstin Ridley, Elisa Martinuzzi, Daniel Wallis Organizations: Odey Asset Management, Financial Times, Management, JPMorgan, Reuters, UBS, Conservative Party, Securities and Exchange Commission, Financial, Authority, Carolina, Thomson Locations: Brexit, British, New York, London

Odey Asset Management "does not recognise the picture of the firm that has been painted" by the allegations, it told investors in a letter seen by Reuters. Within hours of the report being published, Wall Street firms including Goldman Sachs (GS.N), JPMorgan (JPM.N) and Morgan Stanley (MS.N) began reviewing their prime broking ties with Odey Asset Management, sources familiar with the matter told Reuters. "We are confident our service providers will continue to work with us," an Odey Asset Management letter said later. Industry experts consulted by Reuters said that did not necessarily indicate a major change in culture in the City, however. A London employment tribunal last month awarded a former Algebris employee over 32,000 pounds in a sex harassment claim against the asset management company.

Persons: Crispin Odey, Odey, Goldman Sachs, Morgan Stanley, MS.N, Schroders, Evan Nierman, Megan Tobias Neely, Neely, retrained, Daniel Beunza, Davide Serra, Serra, Algebris, Yasmine Chinwala, Nell Mackenzie, Sinead Cruise, Naomi Rovnick, Dhara Ranasinghe, Rosalba O'Brien Organizations: Odey Asset Management, Financial Times, Tortoise Media, Reuters, Odey, Wall, JPMorgan, FT, Financial, Bayes Business, Labour Party, New, Thomson Locations: City, London, Britain, New York

☆ Banking-as-a-service fintech Griffin just raised $13.5 million. Check out the 15-slide pitch deck it used to land the fresh funds.
▼ + stars: | 2023-06-07 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +2 min

Banking-as-a-service startup Griffin just raised $13.5 million in fresh funds. The startup enables businesses to skip the process of finding a banking partner. Check out the 15-slide pitch deck Griffin used to raise the Series A round below. British fintech startup Griffin has raised $13.5 million in fresh funds just months after it secured a UK banking license. Griffin has raised $35.7 million to date, including a $15.5 million raise in July 2022.

Persons: Griffin, David Jarvis, Allen Rohner, we've, Maria Campbell, Campbell Organizations: Financial, MassMutual Ventures, EQT Ventures Locations: London

☆ UK to curb crypto advertising with 'cooling off' periods, risk warnings
▼ + stars: | 2023-06-07 | by ( ) www.reuters.com time to read: +2 min

The Financial Conduct Authority (FCA) said "refer a friend" bonuses for crypto buyers would also be scrapped and that those promoting such assets would have to put in place clear risk warnings and ensure adverts were clear, fair and not misleading. But research shows many regret making a hasty decision," said Sheldon Mills, executive director at the FCA's consumers and competition division. "Consumers should still be aware that crypto remains largely unregulated and high risk," he said. FCA research shows that estimated crypto ownership has more than doubled from 2021 to 2022, with 10% of 2,000 people surveyed stating they own cryptoassets. Under the new rules, crypto firms will have to carry warnings such as: "Don't invest unless you're prepared to lose all the money you invest.

Persons: Dado Ruvic, Crypto, FTX, Sheldon Mills, Myron Jobson, Kirstin Ridley, Emelia Sithole Organizations: REUTERS, Financial Conduct Authority, FCA, Thomson Locations: Britain

☆ UK regulator makes 'final call' to switch off Libor
▼ + stars: | 2023-05-31 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

The London Interbank Offered Rate (Libor) reflected the cost of lending between banks, using quotes from panels of banks in 35 variants across five currencies. "This is the last remaining Libor panel and its end marks another critical milestone in the transition away from LIBOR," the FCA said in its "final messages" on the rate. "Firms must continue to actively transition contracts that reference Libor to appropriate, robust reference rates, and we continue to expect firms to deliver demonstrable progress," the FCA said. Market participants were given permission to continue using dollar Libor in new contracts on a limited basis, but the FCA said on Wednesday this would end on July 1. The 1, 3 and 6-month dollar Libor rates only will be published in a "synthetic form" for legacy contracts from July 3 to end-September 2024.

Persons: DTCC, Huw Jones, Mark Potter Organizations: Authority, Federal Reserve, Thomson Locations: LIBOR

☆ Britain's Monzo narrows annual loss, IPO 'some ways down the road'
▼ + stars: | 2023-05-31 | by ( Iain Withers | ) www.reuters.com time to read: +2 min

Monzo is one of Britain's highest-profile financial technology companies, having attracted 7.4 million customers with its bright coral cards and spend-tracking data since launching in 2015. Monzo reported a net loss of 116.3 million pounds ($146.8 million) for the year, compared to a loss of 119 million the previous year. We'll do the work well before we need to make a decision," Anil said when asked where Monzo could float. "We will make a great public company one day," Anil added. The bank expects to post a full-year profit this financial year, Anil said, after the company said it reached monthly bottom-line profitability in March.

Persons: Monzo, Anil, It's, We'll, Iain Withers, Jason Neely Organizations: London, Financial, Authority, Thomson Locations: British, New York, London

The European Union is at the forefront of drafting new AI rules that could set the global benchmark to address privacy and safety concerns that have arisen with the rapid advances in the generative AI technology behind OpenAI's ChatGPT. "If it's about protecting personal data, they apply data protection laws, if it's a threat to safety of people, there are regulations that have not been specifically defined for AI, but they are still applicable." Data protection authorities in France and Spain also launched in April probes into OpenAI's compliance with privacy laws. 'THINKING CREATIVELY'French data regulator CNIL has started "thinking creatively" about how existing laws might apply to AI, according to Bertrand Pailhes, its technology lead. "We are looking at the full range of effects, although our focus remains on data protection and privacy," he told Reuters.

☆ Cryptos have no intrinsic value and trading in them should be regulated like gambling, UK lawmakers say
▼ + stars: | 2023-05-17 | by ( Ryan Browne | ) www.cnbc.com time to read: +3 min

Trading in cryptocurrencies is akin to gambling and should be treated as such, British lawmakers said. Unbacked tokens like bitcoin and ether aren't underpinned by underlying assets and have "no intrinsic value," lawmakers on the U.K. Treasury Select Committee said in a report published Tuesday. The Treasury committee said it was concerned by government proposals to regulate consumer crypto trading as a financial service. This, lawmakers said, would create a "halo" effect that leads people to believe crypto trading is safe and protected, when this is not the case. Blair Halliday, U.K. managing director for top U.S. crypto exchange Kraken, said: "We fundamentally disagree with the Treasury Select Committee's conclusion that cryptoassets have no intrinsic value.

☆ Nearly 6 million Britons missed payments on bills, regulator says
▼ + stars: | 2023-05-16 | by ( Suban Abdulla | ) www.reuters.com time to read: +2 min

LONDON, May 16 (Reuters) - Millions of British borrowers repeatedly missed payments on bills in the six months to January amid the steep surge in the cost of living and higher interest rates, a survey from the Financial Conduct Authority regulator showed on Tuesday. The FCA said the number of adults in Britain who missed payments on domestic bills or failed to meet any of their credit commitments in three or more of the six months to January rose to 5.6 million from 4.2 million in May 2022. The latest survey also showed a significant rise in the number of people struggling to keep up with payments who now accounted for one in five adults. "The convergence of higher living costs and higher interest rates has pushed people’s finances right to the edge and sometimes over," Karen Noye, mortgage expert at Quilter said. It also said it will introduce its Consumer Duty rule in the coming months, requiring firms to ensure they provide better support for consumers.

☆ Crypto should be regulated as gambling, UK lawmakers say
▼ + stars: | 2023-05-16 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, May 17 (Reuters) - Bitcoin , ether and other cryptocurrencies should be regulated as gambling given they are potentially used by fraudsters and pose significant risks to consumers, a panel of UK lawmakers said in a report on Wednesday. Britain is planning its first rules for cryptoassets, which currently only comply with anti-money laundering safeguards. Around 10% of UK adults hold or have held cryptoassets, according to official figures. The European Union approved the world's first set of comprehensive rules for crypto markets on Tuesday. The underlying technology used by cryptoassets has the potential to improve efficiency in payments, the report said.

☆ Crypto firms call for global consensus instead of "fire hose" of rules
▼ + stars: | 2023-05-10 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Apart from compliance with rules to stop money laundering and terrorist financing, crypto firms are largely unregulated in many parts of the world. "If we built a good regulatory regime, people would come. We are shooting ourselves in the foot by not having a regulatory regime in the U.S.," Peirce said. U.S. Congress needed to decide which regulatory body has authority over crypto, Peirce added. Global standards and harmonisation as much as possible are key, said Sarah Pritchard, executive director for supervision at Britain's Financial Conduct Authority.

To revive its fortunes, the government late last year published its Edinburgh Reforms agenda comprising over 30 proposed changes to existing rules. "There are a variety of factors that keep somewhere attractive in terms of investment, listing and being an international finance centre." "We want the UK to be the world's most innovative and competitive global financial centre," the spokesperson added. CHALLENGING ASSUMPTIONSSupporters of a more vibrant UK stock market are also increasing pressure on bankers managing IPO processes to challenge assumptions about London's poorer liquidity or post-IPO performance, relative to rival venues. Proposed changes to UK listings are encouraging, but may not be enough, said Steve Bates, BIA CEO.

☆ UK listing shakeup requires double dose of hope
▼ + stars: | 2023-05-03 | by ( Neil Unmack | ) www.reuters.com time to read: +4 min

The Financial Conduct Authority isn’t the only watchdog to water down its listing rules, but it has more reasons than most to up its game. The UK prides itself on being a financial hub, but accounted for just 5% of global IPOs between 2015 and 2020. That’s why the FCA is proposing to replace a fiddly two-tier system of standard and “premium” listing rules with a single class. CONTEXT NEWSThe UK Financial Conduct Authority on May 2 published a series of proposals designed to encourage companies to list in the UK. The new framework would remove many investor protections currently required under the premium listing category.

☆ Britain takes further step towards London listings overhaul
▼ + stars: | 2023-05-02 | by ( Iain Withers | ) www.reuters.com time to read: +2 min

LONDON, May 2 (Reuters) - Britain's stock market rules could be radically simplified as part of efforts to lure major company listings to London, under detailed plans unveiled by the country's financial watchdog on Tuesday. "We want to encourage more companies to list and grow in the UK, versus other highly competitive international markets," said FCA chief executive Nikhil Rathi. While the watchdog said it was committed to maintaining high standards, some experts expressed concerns at the reform push. The FCA said it aimed to make "substantial progress" on the reforms by the end of this year. Reporting by Iain Withers Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Fintech giants Klarna and Block slam 'outdated' UK buy now, pay later regulation proposals
▼ + stars: | 2023-04-27 | by ( Ryan Browne | ) www.cnbc.com time to read: +2 min

Alex Marsh, Klarna's head of U.K., said the proposals would lead to lengthened application times and result in "disproportionate friction" for consumers. In a consultation paper published in February, the U.K. government suggested applying parts of existing regulation – namely, the Consumer Credit Act – to buy now, pay later plans. The currently unregulated buy now, pay later model would be supervised by the Financial Conduct Authority. Buy now, pay later loans allow shoppers to defer payment by a month or to split the cost of their purchases over a period of equal monthly instalments. Based on Klarna modelling, that could increase to five minutes under the new U.K. rules, Marsh said.

☆ Facing fallout from nickel crisis, LME appoints 'interim' chairman
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +2 min

LONDON, April 21 (Reuters) - The London Metal Exchange (LME) said on Friday it had appointed John Williamson, currently a non-executive director, as interim chairman from the end of April, when current Chair Gay Huey Evans steps down. Williamson's appointment comes as the world's largest and oldest metals forum grapples with slumping nickel volumes after the chaos in March 2022 when the LME suspended nickel trading for more than a week. Metal industry sources are surprised that Williamson's appointment is on an interim basis, which they say creates uncertainty during a tumultuous time. The LME declined to comment on why the appointment was on an interim basis. A lawsuit brought by Elliott Associates and Jane Street Global Trading against the LME for cancelling nickel trades will be heard in a London court on June 20-22.

☆ UK financial watchdog intervenes to cut building insurance costs
▼ + stars: | 2023-04-20 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

LONDON, April 21 (Reuters) - Britain's financial watchdog has proposed changes to cut the cost of insuring residential apartment blocks, saying intervention was needed to prevent wrongful use of commission. The proposals announced on Friday follow a review after the 2017 Grenfell Tower fire in London, which killed 72 people and led to big increases to building insurance costs. The FCA published a consultation paper on its proposals alongside a review of 16 insurance brokers' sales to blocks of apartments between January 2019 and September 2022. "Brokers were often unable to articulate what insurance-related services or benefits of value were provided by the parties sharing commission," the watchdog said. Leaseholders would have transparency on insurance costs and ability to challenge poor value under the FCA proposals.

☆ UK watchdog to ensure savers benefit from interest rate rises
▼ + stars: | 2023-04-20 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, April 20 (Reuters) - Britain's financial watchdog said on Thursday it would use new, tougher consumer protection powers from July 31 to ensure banks pass on increases in interest rates to savers, and further action was not ruled out. The Financial Conduct Authority (FCA) will begin phasing in its "consumer duty" from July 31, giving it stronger powers to ensure that the companies it regulates act in the best interest of their customers. Since December 2021, the Bank of England has increased interest rates from nearly 0% to 4.25%, with markets expecting another increase next month. "Given rising interest rates and firms' performance on base rate pass-through we have considered whether we should restart this work," Rathi said. "However, we believe the Consumer Duty gives us greater flexibility to react to market developments, rather than needing to introduce detailed and prescriptive rules."

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