FE fundinfo urges new FCA Chief Executive to focus on equivalence

With the FCA confirming the appointment of a new Chief Executive, FE fundinfo urges action on fund equivalence

23 June 2020

Leading global fund data and technology provider FE fundinfo has welcomed the appointment of Nikhil Rathi as the new Chief Executive of the FCA.

With Chancellor Rishi Sunak confirming Mr. Rathi’s appointment today (22 June), FE fundinfo have also advised that ensuring fund equivalency should be a key priority for the new FCA head throughout the on-going Brexit negotiations.

Mikkel Bates, Regulations Manager at FE fundinfo, said:

“While Mr. Rathi’s appointment might be considered somewhat ‘leftfield’, his time at both the London Stock Exchange and the Treasury will stand him in good stead in understanding the key issues dominating the funds industry.

“Within the funds industry, clarity surrounding on-going regulations, particularly when it comes to equivalence with Europe post-Brexit, should be an immediate priority. UK-based funds will lose UCITS status and passporting rights, and more proportionality in things like MiFID II client reporting are needed. Additionally, foreign funds wishing to do business in the UK also need clarification on what they must adhere to, and when. The FCA has already taken steps to be more realistic about the contents of PRIIPs KIDs and on the “10% reporting rule” under MiFID II, so it has shown that it is prepared to be practical when necessary. We hope that Mr. Rathi will use his influence and experience in the forthcoming negotiations to ensure the UK’s equivalence is assured.”