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Generative AI: A global guide to key IP considerations
Artificial intelligence (AI) raises many intellectual property (IP) issues.
United Kingdom | Publication | February 2024
At the heart of our work is advising clients at financial institutions who are under constant internal pressure from their respective boards and stakeholders, as well as managing the firm’s regulatory risks and exposure. We are conscious that it can sometimes seem as though the FCA is not under the same commercial burdens and that it may appear to be moving more slowly than firms would like.
However, although not subject to the same commercial pressures, as an independent financial regulator the FCA is under significant pressure to get things right and exercise its powers legally and proportionately otherwise it risks potential legal and political challenge, as well as reputational damage.
The FCA is accountable to the Treasury and Parliament, regularly giving evidence to and appearing before Parliament’s Treasury Select Committee three times per year, in order for all aspects of the regulator’s work to be appropriately scrutinised. Good judgment and high levels of accuracy (within a tightly defined budget) are therefore critical – something that, in our experience, is ‘felt’ very keenly within the regulator from the top down. Appropriate use of its tools and powers is also key to avoiding where possible the risk of judicial review.
It has been widely reported that the regulator has faced challenges in terms of available human resources. Clearly, this has to be managed and prioritised effectively. Over the past couple of years for example, the creation of the new Appointed Representatives department and the expansion in the specialist interventions team has been indicative of what was on the horizon, given the increase in interventions and implementation of the new AR regime over the past couple of years. Looking ahead, the FCA’s progress update on its priority to tackle financial crime, published on 8 February, signals more data driven enquiries and increasing intervention and enforcement activity in the near future - perhaps especially so in relation to fraud, given that over 70 new staff have joined the FCA since April 2022 to work on fraud-related initiatives. See our Regulation Tomorrow briefing for a summary of the FCA update.
The regulator’s work has to be prioritised in a logical way with a risk-based approach. For example, in enforcement, investigations are prioritised according to various factors, including the level of risk of harm or potential harm to consumers/markets. From a supervisory perspective, firms may be supervised as part of a portfolio alongside firms with a similar business model that share similar products, target markets and risks. Firms that are identified as having the potential for the most impact on consumers and markets, will be supervised with more tailored objectives. With this in mind, at the point of authorisation, it is key for the regulator to assess a firm’s business model and target customer base to ensure appropriate supervision can be achieved. This may mean that more complex business models or those with a higher potential for risk for markets and consumers may take longer than others to review and approve. Knowing how the regulator is likely to approach a particular business can help to position the firm to its best advantage.
We have found our combined experience of working in the FCA, and understanding the internal pressures and challenges it faces, to be useful when navigating complex legal and regulatory challenges for clients, and have set out below our top tips for firms when managing correspondence and enquiries from the FCA:
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Artificial intelligence (AI) raises many intellectual property (IP) issues.
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The UK remains a world leader in offshore wind, accounting for roughly 20 percent of global offshore wind capacity, with 11.3 GW operational. It is forecast that installed capacity will rise to 19.5 GW by mid 2020s.
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We are delighted to be participating in Marine Money Week New York 2024. As one of the landmark events for the global shipping finance community, and with the global shipping and maritime industry at such a pivotal juncture, we look forward to catching up with clients and contacts to continue discussions around navigating the current challenges and opportunities.
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