Legal Background & Brexit Overview Flashcards
Sources of Regulation
Statute Regulation - Laws made by UK government
Non Statutory - rules made by some other body or organisation
Principles based - approach
+ High level rules and guidance
+ Flexibility to support innovation
x Reliance on ethical standards (Firms + Individuals)
FCA prefers principle - both are valueable
Rules - based approach
+ Specific and detailed
+ Prescriptive
x Box ticking
Criminal Actions
State acts as prosecutor
Proof; Beyond reasonable doubt
Punishment for Criminal Action
Jail and or fine
Summary conviction - magistrates court, used for minor offences
Max 6months / 5kfine
Conviction on indictment - crown court , used for more serious offences
Max 7years / unlimited fines
Civil Actions
Usually private - plaintiff/defendant (Smith v Jones PLC)
Proof; balance of probability
Outcome; Damages or other remedy (monetary compensation)
FCA/PRA have civil enforcement powers for certain financial market offences
FCA doesn’t need to use civil courts for damages (e.g. Market Abuse under S123 FSMA 2000)
Upper Tribunal Role
Tax and Chancery Chamber
hears appeals against FCA, PRA or pensions regulator decisions
reviews decisions of regulators
Brexit Facts Timings
Britain voted leave EU in 2016
UK left EU on 31 January 2020 began transitional period
Transitional period ended 31 December 2020
Took 4.5 years to leave
Trade agreement did not include financials services industry
Temporary transitional powers ended end of March this year
European Commission for Brexit
- Directives = tell EEA change national laws to fit template
Regulations = EU Laws binding across EEA
EU withdrawal Act 2018 drafted EU law into UK law the day left (Onshoring)
onshoring allows firms to abide by EU MAR until march 2022
EU Market Abuse Regulation
EU Market Abuse Regulation comply until 31 March 2022
Now refer to as UK Market Abuse Regulation - UK MAR
UK Firms have no passporting rights into EEA
