LONDON’S BUSINESS NEWSPAPER
TRANSFORM YOUR WEEKEND THE NEW TRANSFORMERS FILM WILL BLOW YOUR SOCKS OFF P14 THURSDAY 8 JUNE 2023
ISSUE 3,992
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CITYAM.COM
THERE’S A NEW SHERIFF IN TOWN
REGULATOR STEPS UP ENFORCEMENT OF CRYPTO MARKETING ‘WILD WEST’ CHRIS DORRELL AND CHARLIE CONCHIE
CRYPTO firms face a regulatory clampdown in the UK this year as the City watchdog cracks the whip on the “Wild West” landscape of crypto marketing. In a new set of rules announced today, the Financial Conduct Authority (FCA) said it will force crypto firms to introduce a “cooling-off” period, during which time consumers can decide to cancel their
purchase. The watchdog is also set to ban “refer a friend” bonuses and force firms to put in place “clear risk warnings” as it seeks to ensure that those who buy crypto understand the risk. Sheldon Mills, executive director at the FCA, said: "It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice.”
The new rules will come into effect from 8 October, setting the clock ticking for the UK’s crypto sector. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the FCA had “shot out of the traps” with the changes and was “racing ahead with new rules to give consumers extra protection in the crypto Wild West”. Regulators have been looking to tighten the guardrails in the sector and
protect consumers from crypto bandits after the high profile implosion of crypto exchange FTX last year. The move comes in the same week as US regulators having sued Coinbase and Binance, two crypto giants. The government has promised to bring forward regulation of the wider crypto sector in the UK, but the timing is in the hands of Whitehall. The influential Treasury Committee has argued that crypto should be treated like gambling, sparking a backlash from the sector.
FREE BARBARIANS AT THE GATE?
Private equity bonanza fails to take off CHARLIE CONCHIE A WAVE of predicted private equity deals failed to rear its head last month as sticky inflation and more interest rate pain forced dealmakers to reconsider an offensive, according to a London investment bank. The City had been braced for a wave of take-private deals in 2023 as foreign buyers pounced on cheap valuations, pushed lower by a weak pound and the lingering effects of Brexit. However, despite a number of bids for firms in the first five months of the year, the wave of takeovers has so far yet to come to a head. Bankers at Peel Hunt said the trend continued last month as longer rate pain keeps deal financing expensive. “Notwithstanding expectations of a surge in take-private activity, traditional private equity buyers were absent during the month, mostly likely as they reassess the outlook for interest rates in the light of persisting inflation,” Peel Hunt said in a report. A Swedish/Abu Dhabi bid for Dechra, a pet drugmaker, got over the line at the end of last month at a slashed valuation, highlighting a month in which only six offer periods opened, compared to 13 the month previously.
OBITUARY
Sir Ivan Menezes, long-time boss of Diageo, passes away after a short illness LAURA MCGUIRE SIR Ivan Menezes, the long-serving chief of drinks giant Diageo, has died aged 63, following a short illness. The India-born business leader passed away days after he was rushed into hospital for emergency
surgery, for medical issues including a stomach ulcer. Menezes joined Diageo at its creation in 1997 and held many senior positions in a career spanning over 25 years at the company. He had been the strategy director for Guinness. When Diageo was subsequently created through the
merger, Ivan was appointed group integration director – later being made chief executive in 2013. Menezes, who was awarded a knighthood in January, has helped steer the business through great periods of success –
including a $1bn (£800m) deal for tequila brand Casamigos and a premiumisation process across the brand’s portfolio. Javier Ferran, chairman of Diageo said:“This is an incredibly sad day. Ivan was undoubtedly one of the finest leaders of his generation.
“Ivan was there at the creation of Diageo and over 25 years, shaped Diageo to become one of the best performing, most trusted and respected consumer companies.” Menezes had been due to step down in July, but that was brought forward earlier this week due to his illness.
INSIDE UK RECORDS SURGE IN JOB SEEKERS P4 LONDON HOUSE PRICES DROP P6 NEW RULES FOR FRAUD VICTIMS P8 THE BATTLE FOR CASH P12-13 OPINION P18-20 SPORT