Third consultation on new prudential regime for UK investment firms

The IFPR will introduce a single, proportionate regime reflecting the size and business of MiFID investment firms regulated by the FCA. It should help to improve competition between firms and simplify matters for new entrants.
In the last of our 3 consultations we are asking for views on:

disclosure 
own funds – excess drawings by partners and members
technical standards
depositaries
changes to our Handbook to reflect changes to the UK resolution regime
other consequential changes to our Handbook
our use of new powers introduced under Part 9C of FSMA
See more on our proposed new rules here

We’re asking for feedback on this consultation by Friday 17 September 2021.
About this consultation
The UK IFPR rules aim to streamline and simplify prudential requirements for solo-regulated UK firms, authorised under the Markets in Financial Instruments Directive (MiFID).
The first consultation introduced the UK IFPR and focused on the categorisation of investment firms, prudential consolidation, own funds and aspects of own funds requirements, and reporting.
The second consultation focused on the remaining aspects of own funds requirements, liquidity, risk management, governance, remuneration, applications and notifications.
We published the Policy Statements and near-final rules for the first and second consultations in June 2021 and July 2021 respectively.
Following this consultation, we will publish a Policy Statement and final rules for the whole regime in autumn 2021.

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Consumer alert for consumers of insurance broker firm Professional Construction Risks Ltd (PCRL)

If you are approached by PCRL or any representatives of PCRL about taking out or renewing an insurance product, you should decline to do business with the firm while our requirements remain in place. You should also report the matter to our consumer helpline, the details of which are included below. Consumers who have purchased an insurance policy through PCRL are encouraged to contact their insurer directly to confirm the status of their insurance policy.

Background
On 11 December 2020, we imposed various requirements on PCRL through a Supervisory Notice. PCRL was required immediately to cease carrying out regulated business, which includes arranging insurance contracts. 
We issued a Second Supervisory Notice on 26 January 2021 in which we decided not to withdraw the requirements imposed on PCRL. PCRL remains under the same requirements which have been in place since 11 December 2020. We also issued a first alert on 11 December 2020 to advise consumers of the requirements imposed on PCRL. This second alert is to ensure that consumers are aware of these requirements. 
The requirements imposed on PCRL can be found on the Financial Services Register: Professional Construction Risks Limited 
Reason for requirements
We have serious concerns that PCRL appears to have made an application for a loan in the name of one of its consumers, without having authority to do so, and without making arrangements for the consumer to receive the benefit of loan funds. Since the consumer did not receive the benefit of the loan funds, it is inferred that PCRL benefitted from receipt of the loan funds and thus appears to have acted dishonestly. 
For this reason we believe that without these requirements there is a risk that PCRL will continue to act in a dishonest manner, which could result in harm to consumers. 
What does this mean for UK consumers’ insurance contracts?
Consumers who have purchased an insurance policy through PCRL are encouraged to contact their insurer directly to confirm the status of their insurance policy. Details of who this is can be found in the policy schedule which summarises the insurance policy.
Who should UK consumers contact? 
Consumers who need to discuss their circumstances should contact their insurer in the first instance. In particular:

consumers making a mid-term adjustment or who have a new or existing claim should contact their insurer
consumers who are approaching their policy renewal can contact their insurer, or another broker 

If you are a consumer of PCRL and have further questions, you should contact our Consumer Helpline on 0800 111 6768.
Firm details: Professional Construction Risks Ltd
Address: PCR House, Unit 2 Ebdon Bow, Ebdon Road, Weston-super-Mare, Avon, BS22 9NZTelephone: 01934 756 268Website: www.professionalconstructionrisks.co.

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Advancis Ltd enters administration

Advancis Ltd is a high cost and guarantor lender, which lends money to customers for up to 60 months. The Administrators will update customers as soon as possible.  
All existing loan agreements remain in place and will not be affected by the proposed administration. However, the firm is no longer able to issue new loans. 
If you have any questions in the meantime about your loan, contact Advancis Ltd customer support team on 0161 850 4141 or email at [email protected] 
We are in close contact with the firm and the Administrators regarding the fair treatment of customers. 
Customers who are struggling financially can get free and impartial guidance from MoneyHelper.

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Consumer warning on Flipping Cars Ltd and My Car Broker Ltd

Flipping Cars Ltd offered its services to customers via a website https://flippingcars.co.uk/ which is now being used by My Car Broker Ltd. Customers of Flipping Cars Ltd and My Car Broker Ltd may have been asked to pay a fee or a payment in advance, or in some cases both.  Flipping Cars Ltd agreed with the FCA, under a voluntary requirement, it would no longer take any advance payments from customers for sourcing or purchasing vehicles on their behalf. It also agreed that it would no longer accept any fees from new or existing customers, or arrange for them to pay any fees to others. Flipping Cars Ltd also agreed that it would no longer carry out any of the regulated activities that it is authorised for without the FCA’s prior agreement, and that that it would publish the notice below on the website https://flippingcars.co.uk/: “Flipping Cars Limited (FCA FRN 728789, Company no. 09592739) must not, without the prior written consent of the FCA, carry out any regulated activities for which it has Part 4A permission. This means Flipping Cars Limited cannot: carry out credit broking, give advice to a customer about the settlement of a debt due under a credit agreement or consumer hire agreement, or take steps on behalf of a customer to settle a debt due under a credit agreement or consumer hire agreement. Flipping Cars Limited must not take any payment in advance, in full or in part, from a customer towards the sourcing or purchase of assets(s) by Flipping Cars Limited or any other third party on the customer’s behalf. Flipping Cars Limited must not accept any fees from any new or existing customers, or arrange that any fees are paid to any other person by any new or existing customer.” No other entity connected to Flipping Cars Ltd or its director, Chris Laing, holds any form of FCA authorisation to conduct any regulated activity. This includes My Car Broker Ltd. 
Any fees and payments in advance made to Flipping Cars Ltd and My Car Broker Ltd are not protected by the FCA or FSCS. Customers who are concerned about payments can contact our Consumer Helpline on 0800 111 6768 or use our contact form, or contact Action Fraud on 0300 123 2040 or via their website. 
Checking whether a firm is authorised, what activities it can do and how customers are protected
A firm may be authorised by the FCA, but this does not mean all of the firm’s business activities are regulated by the FCA. You can search our Financial Services Register to check whether a firm is authorised, and what activities it can carry out that the FCA regulates. You can also see whether you can make a claim through the Financial Services Compensation Scheme if a firm fails. If a firm claims it is FCA authorised or that money paid to it is protected, check the Financial Services Register and if you are unsure contact our Consumer Helpline on 0800 111 6768 or use our contact form.

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DAC Pensions Limited enters liquidation – advice on next steps and how to protect yourself from scams

If you are a client of DAC Pensions, you should immediately stop paying contributions to the Davies & Co SIPP. You should also have already received information from the firm or its liquidators, Quantuma Advisory Limited, about any actions to take regarding your pension. If you have not received this information, contact DAC Pensions or Quantuma – using the details below. 
Being alert to scams 
All consumers should remain alert to the possibility of fraud. If you are a client of DAC Pensions and are called by someone claiming to be from DAC Pensions, Quantuma or any other company claiming to be involved in the liquidation, please end the call and call the liquidators back using the following number: 02380 336464. 
See more on  how to protect yourself from the most common types of scams.
What is DAC Pensions Limited? 
DAC Pensions is an FCA authorised self-invested personal pension (SIPP) operator based in Cambridgeshire.
What happens to DAC Pensions now it is in liquidation? 
Although in liquidation, DAC Pensions remains an FCA-authorised firm and is still subject to our rules so that the liquidator can continue to operate the pension scheme while it is being wound up.
DAC Pensions and Quantuma have written to the firm’s clients to explain next steps and any actions that need to be taken. If you are a client of DAC Pensions and you haven’t heard from it or Quantuma, please contact the liquidators’ using these details: 

What should I do if I have a complaint against DAC Pensions?
DAC Pensions or Quantuma should have already written to you to explain next steps and the process to make a complaint. 
If you have already referred a complaint to the Financial Ombudsman Service, you don’t need to take any action. As the firm is in liquidation, the Financial Ombudsman Service will contact you in due course to ask for permission to refer the case to the Financial Services Compensation Scheme (FSCS).
What should I do if I want to complain?  
DAC Pensions is covered by the FSCS. The FSCS protects consumers when authorised firms fail and can pay compensation of up to £85,000. If you are a client of DAC Pensions, you should now make a claim to the FSCS for any losses you have incurred as a result of transferring your pension to DAC Pensions. The FSCS will investigate whether there are any claims that meet the qualifying conditions for compensation.
There is more information about the FSCS on its website or you can call 0800 678 1100 to speak directly. 
Do I need to use a third party to make a claim? 
You do not need to use a claims management company to make a claim against the firm or through the FSCS. 
For the vast majority of consumers, there is no benefit to using a third party to make a claim. Any clients of DAC Pensions who believe they have a complaint against the firm should contact Quantuma or the FSCS directly.  
What if I have a SSAS with DAC Pensions? 
We understand DAC Pensions provides administration for a small number of small self-administered scheme (SSAS) pensions. These are occupational pensions regulated by The Pensions Regulator. See more information on what a SSAS is and how they work.  
Quantuma will write to you confirming next steps if you have a SSAS. For more information, contact Quantuma using the details above.

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FCA obtains bankruptcy order against Mohammed Maricar following unlawful CFD forex trading promotion

On 25 March 2021, following an application for summary judgment by the Financial Conduct Authority, the High Court ordered Mohammed Fuaath Haja Maideen Maricar (Mr Maricar) to pay £530,000 to the FCA to distribute to victims of an unlawful forex trading business.
Mr Maricar was involved with 24HR Trading Academy Ltd in unlawfully promoting and arranging forex trading using contracts for difference (CFDs).
This news release provides an update on further developments.
Mr Maricar has failed to make any payment in relation to the High Court’s restitution order. 
On 30 June 2021, the Court of Appeal refused Mr Maricar’s application for permission to appeal. 
On 14 June 2021, the FCA filed a bankruptcy petition, seeking a bankruptcy order against Mr Maricar. He did not oppose the FCA’s petition.
On 3 August 2021, The High Court made a bankruptcy order against Mr Maricar. 
The Official Receiver / bankruptcy trustee will now assess Mr Maricar’s financial affairs, with the aim of any recovered funds being distributed to his creditors. 
Consumers and other persons who consider they may have claims against Mr Maricar should contact the Official Receiver / bankruptcy trustee and may wish to obtain their own legal advice. They should note all applicable time limits. 
The FCA will in due course seek to distribute any money which it receives from the bankruptcy process to eligible consumers. The FCA may be contacted at [email protected].

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FCA obtains bankruptcy order against Mohammed Maricar following unlawful CFD forex trading promotion

On 25 March 2021, following an application for summary judgment by the Financial Conduct Authority, the High Court ordered Mohammed Fuaath Haja Maideen Marciar (Mr Maricar) to pay £530,000 to the FCA to distribute to victims of an unlawful forex trading business.
Mr Maricar was involved with 24HR Trading Academy Ltd in unlawfully promoting and arranging forex trading using contracts for difference (CFDs).
This news release provides an update on further developments.
Mr Maricar has failed to make any payment in relation to the High Court’s restitution order. 
On 30 June 2021, the Court of Appeal refused Mr Maricar’s application for permission to appeal. 
On 14 June 2021, the FCA filed a bankruptcy petition, seeking a bankruptcy order against Mr Maricar. He did not oppose the FCA’s petition.
On 3 August 2021, The High Court made a bankruptcy order against Mr Maricar. 
The Official Receiver / bankruptcy trustee will now assess Mr Maricar’s financial affairs, with the aim of any recovered funds being distributed to his creditors. 
Consumers and other persons who consider they may have claims against Mr Maricar should contact the Official Receiver / bankruptcy trustee and may wish to obtain their own legal advice. They should note all applicable time limits. 
The FCA will in due course seek to distribute any money which it receives from the bankruptcy process to eligible consumers. The FCA may be contacted at [email protected].

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Consumer warning on Northern Provident Investments

We are notifying NPI customers of its proposed liquidation and warning them of the danger of scammers contacting them. As part of this we are setting out the steps customers should take if contacted by people claiming to be from NPI or FRP.
NPI operated a platform where retail customers could buy debentures and shares, which may be held in an Innovative Finance Individual Savings Account (IFISA) or Stocks and Shares Individual Savings Account (SSISA). Some of these investments were mini-bonds.
NPI previously approved financial promotions for issuers of mini-bonds. In February 2020, following the firm’s application to the FCA, we imposed requirements on NPI for it to cease approving any further financial promotions. As part of these requirements NPI placed a statement on its website that it would no longer be offering this service. These requirements were previously confidential between us and NPI.
On 6 August 2021, the sole director and owner of NPI decided to take steps to wind up NPI.
All known creditors were contacted on 6 August 2021 with the formal notification of the process. It is proposed that licensed insolvency practitioners from FRP will act as joint liquidators on 20 August 2021.
Be alert to scams
All customers should remain alert to the possibility of fraud. Given the large number of mini bonds that NPI distributed via their platform, we believe there is a high risk of scammers trying to take advantage of NPI’s liquidation to try to defraud customers.
Fraudsters sometimes claim to be from legitimate firms authorised by us, or (in the case of liquidation) their appointed liquidator. This is what we call a ‘clone firm’. We have seen previous examples of fraudsters posing as authorised firms and asking customers for money in return for the money they’d invested through them.
If you give money to a clone or unauthorised firm, you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.
Protecting yourself
If you are cold called by someone claiming to be from NPI or FRP please end the call and contact NPI or the proposed Joint Liquidators after they are appointed using the details published on the Financial Services Register.
You should access the FS Register directly from https://register.fca.org.uk/s/ rather than through links in emails.
We recommend customers review the information on our website, through ScamSmart, to help protect people from scams, including from clone firms and individuals.
Why did the Director of NPI apply to place the firm into Liquidation?
NPI has received insolvency advice and has decided to take steps to place NPI into liquidation.
Where can I find more information and how will it impact me?
Customers should check the documentation they have available (for example the client agreement, terms of business) to understand what services they received from NPI. For example, whether their investment was arranged by NPI and whether NPI acts as the ISA manager for their investment.
Customers can find more information about how they may be affected via NPI’s website.
NPI arranged an investment into a mini-bond for me, have I lost my money?
NPI facilitated investments into mini-bonds by accepting funds and transferring these funds to a bond issuer.
They did not hold customer investments themselves.
Your investment continues as before and is not affected by NPI entering liquidation.
Whether you get the money you invested in a mini-bond back and any return on that investment continues to depend on the performance of the firm that issued your investment (eg mini-bond issuer). This is unaffected by events at NPI.
I paid my money to NPI to invest in a mini-bond recently, is that still being held by NPI?
NPI are currently holding a small amount of client money, which is held in a segregated client account. The firm has contacted all impacted clients to arrange for the money to be returned. Should any client money remain once NPI enters liquidation, this will be dealt with by the liquidators.
Please see more information on NPI’s web page.
What should I do if I have an ongoing case at the Financial Ombudsman Service against NPI?
Please contact the Financial Ombudsman Service via its website or by calling its helpline on 0800 023 4567.
I have invested in an ISA / innovative finance ISA (IFISA), is it valid?
NPI entering creditors’ voluntary liquidation will not in itself affect the validity of ISAs managed by NPI. NPI is still an approved ISA manager. Qualifying investments held within an ISA wrapper in accordance with the ISA Regulations will continue to be within an ISA wrapper.
If this changes for any reason, ISA investors will be notified by the proposed Joint Liquidators.
Will the FCA be overseeing the liquidation?
We do not directly licence or oversee insolvency practitioners.
The proposed Joint Liquidators are officers of the Court and will need to comply with all relevant insolvency law. The individuals proposed to be appointed are authorised to act as licensed insolvency practitioners by the Institute of Chartered Accountants in England & Wales (ICAEW) and the Insolvency Practitioners Association. We are liaising closely with the proposed Joint Liquidators.
NPI is still authorised by the FCA and its permissions will be retained during the insolvency process, where necessary, to enable the proposed Joint Liquidators to help ensure an orderly wind down.
What is the FSCS and will they cover any losses and/or redress claims?
The Financial Services Compensation Scheme (FSCS) protects consumers when financial services firms fail. It is the compensation scheme for customers of UK authorised financial services firms. If a firm fails and owes you money, you may be able to claim compensation from the FSCS, depending on the firm and type of activity it does.
The Joint Liquidators, once formally appointed, will work with the FSCS to determine the position and will provide further updates.
The FSCS is operationally independent of the FCA and it is the FSCS that determines whether compensation is payable under the FCA’s compensation rules. Consumers can find further information on the FSCS website.
What is a mini-bond?
There is no legal definition of a ‘mini-bond’, but the term usually refers to illiquid debt securities marketed to retail investors.
A mini-bond is essentially an IOU issued by a company (the issuer) to an investor, in exchange for a fixed rate of interest over a set investment term. At the end of the term the investors’ capital is due to be repaid.
The return on investors’ money depends on the success and proper running of the issuer’s business. If the business fails, investors may get nothing back.
For more information, please see our page on mini-bonds.

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Consumer warning on Cavendish Incorporated Limited

Investments with Cavendish Incorporated Ltd and Cottesmore Associates Ltd 
We are aware that consumers may have invested substantial funds in bonds or loan notes issued by Cavendish or through its former appointed representative, Cottesmore Associates Limited. 
In general, a business does not have to be regulated by the FCA to raise funds by issuing shares or debt securities (such as bonds or loan notes). However, any investment services provided by firms regarding these investments are likely to be regulated, and subject to our rules.  
It appears Cavendish and Cottesmore have carried out investment-related activities with consumers. Neither Cavendish nor Cottesmore have ever been permitted by the FCA to provide regulated investment services.
Cavendish and Cottesmore’s actions may pose significant risks to consumers due to the potential lack of regulatory protection that would otherwise be afforded to them. It is for this reason that we have imposed requirements on Cavendish. 
Are investments with Cavendish Incorporated Ltd or Cottesmore Associates Ltd FSCS protected? 
It is important to remember that engaging with an authorised firm does not guarantee access to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service if things go wrong. Whether you can access these services may also depend on whether you have received any regulated services (such as investment advice) in connection with your investment.
The FSCS cannot accept claims that are for poor investment performance.
You can contact the Financial Ombudsman Service or FSCS to see if your investments are protected, and whether you may have a claim if things were go wrong.
If you are approached to make further payments in order to release an initial investment, you should seek independent advice before making a payment. 
Where can I find out more information about investing? 
Before making any payments in relation to investments, we encourage consumers to see the information on our website, including our ScamSmart pages. In particular, customers should see our information on recovery room scams.  
UK consumers are being increasingly targeted by recovery room scams. This is where fraudsters approach investors who have been scammed or had failed investments, offering to help them get their money back for an upfront fee. 
Also see our published information for consumers considering investing in products offering high rates of return.

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FCA publishes final rules to strengthen investor protections in SPACs

On 30 April 2021, the FCA consulted on proposals to remove the presumption of suspension for SPACs that meet certain criteria which are intended to strengthen the protections for investors, while maintaining the smooth operation of the market. The proposed changes were designed to provide an alternative approach for SPACs that must otherwise provide detailed information about a proposed target to the market to avoid being suspended.
The additional investor safeguards that the FCA will require SPACs to provide in order to benefit from the alternative approach include: 

a ‘redemption’ option allowing investors to exit a SPAC prior to any acquisition being completed
ensuring money raised from public shareholders is ring-fenced
requiring shareholder approval for any proposed acquisition
a time limit on a SPAC’s operating period if no acquisition is completed

SPAC issuers unable to meet the conditions, or those choosing not to, will continue to be subject to a presumption of suspension.
In response to feedback received, the main changes the FCA has made to its original proposals are to: 

Lower the minimum amount a SPAC would need to raise at initial listing from £200 million to £100 million.
Introduce an option to extend the proposed 2-year time-limited operating period (or 3-year period if shareholders have approved a 12-month extension) by 6 months, without the need to get shareholder approval. The additional 6 months will only be available in limited circumstances. This is intended to provide more time for a SPAC to conclude a deal where a transaction is well advanced.
Modify its supervisory approach to provide more comfort prior to admission to listing that an issuer is within the guidance which disapplies the presumption of suspension.

The final rules aim to provide more flexibility to larger SPACs, provided they embed certain features that promote investor protection and the smooth operation of our markets. Private companies listing in the UK via a SPAC will also still be subject to the full rigour of the FCA’s listing rules and transparency and disclosure obligations.
SPACs continue to have risks and remain a more complex investment, which investors should ensure they can adequately assess and understand before investing. This includes understanding their capital structure, such as the risk of conflicts of interest, dilution from shares allocated to sponsors, and assessing the potential value and return prospects of any proposed acquisition target. Investors, particularly individual investors, should carefully consider all available information and risks before deciding whether to invest in a SPAC, regardless of whether a SPAC has structured itself to comply with our new rules and guidance.
The new rules and guidance come into force on 10 August 2021.

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Consumer warning on Coinburp Limited

The FCA has become aware of promotional material indicating that Coinburp Limited (the Firm) is intending to launch the CoinBurp $BURP Token and Initial DEX Offering on Monday 26 July 2021. 
The Firm does not yet hold full FCA Registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) (MLRs) but has submitted an application to the FCA for registration.
The Firm does appear on the FCA’s Temporary Registration Register (TRR). The TRR was established to allow existing cryptoasset businesses to continue to trade whilst the FCA assesses their application.
It does not allow any firm to claim to be Registered or Authorised by the FCA. Whilst firms with this status can continue to trade, such firms and their personnel have not yet been assessed as fit and proper, and we have not yet determined their application for the purposes of the MLRs.
The FCA has very limited powers to protect you if you invest in cryptoassets. We have warned previously that investing in cryptoassets (and investments and lending products linked to them) usually involves very high risks.
Crypto tokens can become very difficult to sell or may significantly reduce in value – and consumers that invest in them should be prepared to lose all their money. It is unlikely that you will have recourse to the Financial Ombudsman Service or Financial Services Compensation Scheme if something goes wrong.
More information on the regulation of cryptoassets
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for some activities undertaken by cryptoasset firms operating by way of business in the UK, including exchanges of money into cryptoassets, cryptoassets into money and exchanges of cryptoassets for other cryptoassets.
This includes situations where a firm is issuing or creating the token themselves, commonly referred to as an ‘Initial Coin Offering’.
Consumers seeking to invest in cryptoassets should ensure they understand the information in our consumer alert and consumer webpages.
We have previously provided information for consumers on Initial Coin Offerings.

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FCA publishes final rules to strengthen investor protections in SPACs

On 30 April 2021, the FCA consulted on proposals to remove the presumption of suspension for SPACs that meet certain criteria which are intended to strengthen the protections for investors, while maintaining the smooth operation of the market. The proposed changes were designed to provide an alternative approach for SPACs that must otherwise provide detailed information about a proposed target to the market to avoid being suspended.
The additional investor safeguards that the FCA will require SPACs to provide in order to benefit from the alternative approach include: 

a ‘redemption’ option allowing investors to exit a SPAC prior to any acquisition being completed
ensuring money raised from public shareholders is ring-fenced
requiring shareholder approval for any proposed acquisition
a time limit on a SPAC’s operating period if no acquisition is completed

SPAC issuers unable to meet the conditions, or those choosing not to, will continue to be subject to a presumption of suspension.
In response to feedback received, the main changes the FCA has made to its original proposals are to: 

Lower the minimum amount a SPAC would need to raise at initial listing from £200 million to £100 million.
Introduce an option to extend the proposed 2-year time-limited operating period (or 3-year period if shareholders have approved a 12-month extension) by 6 months, without the need to get shareholder approval. The additional 6 months will only be available in limited circumstances. This is intended to provide more time for a SPAC to conclude a deal where a transaction is well advanced.
Modify its supervisory approach to provide more comfort prior to admission to listing that an issuer is within the guidance which disapplies the presumption of suspension.

The final rules aim to provide more flexibility to larger SPACs, provided they embed certain features that promote investor protection and the smooth operation of our markets. Private companies listing in the UK via a SPAC will also still be subject to the full rigour of the FCA’s listing rules and transparency and disclosure obligations.
SPACs continue to have risks and remain a more complex investment, which investors should ensure they can adequately assess and understand before investing. This includes understanding their capital structure, such as the risk of conflicts of interest, dilution from shares allocated to sponsors, and assessing the potential value and return prospects of any proposed acquisition target. Investors, particularly individual investors, should carefully consider all available information and risks before deciding whether to invest in a SPAC, regardless of whether a SPAC has structured itself to comply with our new rules and guidance.
The new rules and guidance come into force on 10 August 2021.

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Consumer warning on Coinburp Limited

The FCA has become aware of promotional material indicating that Coinburp Limited (the Firm) is intending to launch the CoinBurp $BURP Token and Initial DEX Offering on Monday 26 July 2021. 
The Firm does not yet hold full FCA Registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) (MLRs) but has submitted an application to the FCA for registration.
The Firm does appear on the FCA’s Temporary Registration Register (TRR). The TRR was established to allow existing cryptoasset businesses to continue to trade whilst the FCA assesses their application.
It does not allow any firm to claim to be Registered or Authorised by the FCA. Whilst firms with this status can continue to trade, such firms and their personnel have not yet been assessed as fit and proper, and we have not yet determined their application for the purposes of the MLRs.
The FCA has very limited powers to protect you if you invest in cryptoassets. We have warned previously that investing in cryptoassets (and investments and lending products linked to them) usually involves very high risks.
Crypto tokens can become very difficult to sell or may significantly reduce in value – and consumers that invest in them should be prepared to lose all their money. It is unlikely that you will have recourse to the Financial Ombudsman Service or Financial Services Compensation Scheme if something goes wrong.
More information on the regulation of cryptoassets
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for some activities undertaken by cryptoasset firms operating by way of business in the UK, including exchanges of money into cryptoassets, cryptoassets into money and exchanges of cryptoassets for other cryptoassets.
This includes situations where a firm is issuing or creating the token themselves, commonly referred to as an ‘Initial Coin Offering’.
Consumers seeking to invest in cryptoassets should ensure they understand the information in our consumer alert and consumer webpages.
We have previously provided information for consumers on Initial Coin Offerings.

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Guiding principles on design, delivery and disclosure of ESG and sustainable investment funds

Read the Dear chair letter (PDF)
We have therefore developed a set of guiding principles, informed by broad stakeholder liaison and consumer research, to help firms apply our existing rules. The guiding principles are there to ensure that any ESG-related claims are clear and not misleading, both at the time of application and on an ongoing basis, so that consumers can make informed choices.
We will continue to scrutinise and challenge firms on their fund strategies and disclosures and to ensure that documentation submitted to us for authorisation meets our regulatory requirements.
The guiding principles are relevant where an FCA authorised investment fund pursues a responsible or sustainable investment strategy and claims to pursue sustainability characteristics, themes or outcomes. These principles are targeted at funds that make specific ESG-related claims, not those that integrate ESG considerations into mainstream investment processes.
The guiding principles complement our recent proposals to implement climate-related disclosure rules for asset managers, life insurers and FCA-regulated pension schemes.

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Consumer warning on Coinburp Limited

The FCA has become aware of promotional material indicating that Coinburp Limited (the Firm) is intending to launch the CoinBurp $BURP Token and Initial DEX Offering on Monday 26 July 2021. 
The Firm does not yet hold full FCA Registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) (MLRs) but has submitted an application to the FCA for registration.
The Firm does appear on the FCA’s Temporary Registration Register (TRR). The TRR was established to allow existing cryptoasset businesses to continue to trade whilst the FCA assesses their application.
It does not allow any firm to claim to be Registered or Authorised by the FCA. Whilst firms with this status can continue to trade, such firms and their personnel have not yet been assessed as fit and proper, and we have not yet determined their application for the purposes of the MLRs.
The FCA has very limited powers to protect you if you invest in cryptoassets. We have warned previously that investing in cryptoassets (and investments and lending products linked to them) usually involves very high risks.
Crypto tokens can become very difficult to sell or may significantly reduce in value – and consumers that invest in them should be prepared to lose all their money. It is unlikely that you will have recourse to the Financial Ombudsman Service or Financial Services Compensation Scheme if something goes wrong.
More information on the regulation of cryptoassets
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for some activities undertaken by cryptoasset firms operating by way of business in the UK, including exchanges of money into cryptoassets, cryptoassets into money and exchanges of cryptoassets for other cryptoassets.
This includes situations where a firm is issuing or creating the token themselves, commonly referred to as an ‘Initial Coin Offering’.
Consumers seeking to invest in cryptoassets should ensure they understand the information in our consumer alert and consumer webpages.
We have previously provided information for consumers on Initial Coin Offerings.

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