Grunge Wood

Fintech & Crypto

Investment firms are increasingly using innovative technologies like blockchain, distributed ledger technology, artificial intelligence, and
machine learning for services ranging from trade matching and execution to safe custody of assets. Algorithmic trading is becoming ever more popular along with high frequency trading. Financial institutions have increasingly been drawn to digital assets and related technologies which has garnered FCA focus through its policy on regulated security tokens akin to financial instruments under the financial services and markets act (FSMA).


On the investment management front, firms have been implementing ‘robo’ techniques for advice and investment management. In light of the implementation of the fifth money laundering directive (5MLD) in the UK in January 2020, previously unregulated crypto firms such as crypto exchanges and crypto e-wallet operators were brought within the regulatory perimeter and are required to register with the FCA.
Much has been happening in the crypto space with the FCA's crypto asset taskforce in action and several consultations and policies that followed.


Through its work the FCA made it clear that crypto derivatives are regulated products irrespective of the underlying assets and a ban on the sale and distribution of crypto derivatives referencing unregulated crypto assets to retail clients was recently imposed by the FCA. Firms such as Kraken have pioneered in the crypto currency futures space offering both OTC and on-venue trading through an MTF. 
The digital assets security token space recently gained traction with the authorisation of Archax with brokerage, custody and MTF permissions. 


We are currently the trusted regulatory, compliance, and risk partner to two highly innovative Multilateral Trading Facilities including one utilising blockchain and artificial intelligence capabilities. We also work with a unique Digital Assets Prime Broker.

Cracked Concrete Wall

How Pillar 4 Can Help

Authorisation

          Pro bono initial assessment of your unique fintech or crypto authorisation business  model

          Guidance on navigating the FCA’s approach to crypto business models

          Bespoke advice and guidance to navigate the authorisation process

          Staff skills and competency assessments

          Support in formulating the right governance structure for your firm

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IFPR implementation

          Pro bono initial assessment of the impact of IFPR on your business

          Financial modelling and full implementation of the IFPR and shift from ICAAP to ICARA

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Risk management

          Developing integrated risk management, capital monitoring, and reporting tools

          Developing suitable pillar 2 approaches

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On-going compliance support

          Providing specialist advise

          Revamping compliance monitoring programmes to something practical and workable in  line with regulations

          Providing risk based on-going compliance monitoring and testing 

          Support in regulatory reporting and capital adequacy reporting

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Authorisation options (Licence options) for investment firms...

Questions?

+44 (0) 207 459 4607

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Company registration number: 12547364
Registered address; 56 Katie Court, London, England, United Kingdom E16 1XS
Business address:  1 Royal Exchange Avenue, London, England, United Kingdom  EC3V 3LT
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