The UK's Financial Conduct Authority (FCA) said in its latest annual report, which ends March 31, 2023, that it will continue to develop prudential requirements for companies carrying out activities involving crypto assets.。However, the UK regulator noted that a public consultation on the rules would only be launched if it had the support of the government and lawmakers.。

New Prudential Requirements usher in first year

Prudential requirements are rules designed to ensure the financial stability of a country's financial market institutions, usually focusing on capital adequacy, liquidity and risk management.。

In January last year, the Investment Company Prudential System (IFPR), adopted after Brexit, came into force, a new prudential requirement imposed by the Financial Conduct Authority (FCA) for investment companies regulated under the Markets in Financial Instruments Directive (MiFID) Act.。Under the new regime, the FCA has improved prudential expectations, focusing not only on the risks faced by businesses, but also on the risks they may pose to consumers and financial markets.。

In its annual report published on July 20, the FCA noted that IFPR had achieved significant results in its first full year.。

The FCA said: "We have received new reports from 3,500 companies with a clearer and more objective view of their financial resilience.。"We reviewed processes across 53 organisations across 17 groups and ultimately recommended that businesses hold more than £5bn of capital requirements and a total of more than £8bn of liquidity.。"

CFD Brokers and Prudential Requirements

In addition, in its most recent fiscal year, the FCA has focused on reviewing compliance with its prudential requirements by other categories of companies, such as CFD providers, wealth managers and payment service companies.。The FCA said in its annual report that the effort "resulted in an increase of £19.2 million in capital requirements for these companies and an increase of 2 per cent in liquidity requirements.".£08.7 billion "。

In other related news, UK regulators recently found "regulatory loopholes" in the country's CFD providers.。Specifically, the FCA found weak regulation of market manipulation and abuse of non-equity asset classes by derivatives brokers in the country.。

In addition, the regulator found that after the July 31, 2023 deadline, only 61% of CFD providers in the UK were able to fully comply with their consumer tax requirements for products and services that are open for sale and renewal.。The tariffs set a higher and more precise standard of consumer protection for the financial services industry across European countries.。