Compliance and Tax

We actively support members with compliance and control framework considerations, identifying and managing risks associated with the use of new technology, including Artificial Intelligence (AI) and digitalisation and operational issues relating to EU and UK cross border business activities and regulatory divergence.

Related articles

1. Artificial Intelligence: Challenges and Opportunities for Compliance
2. The Future of the Compliance Control Environment

We support members in responding to conduct initiatives relevant to wholesale firms, including compliance-related aspects of the Markets in Financial Instruments Directive (MiFID II), the Market Abuse Regulation (MAR), Short Selling Regulation (SSR), Environmental, Social, and Governance (ESG) aspects of compliance, the EU Retail Investment Strategy, as well as post implementation issues arising from the UK Consumer Duty and the UK Review on Retail Conduct Rules.

Related articles

1. GFMA response to IOSCO Pre-Hedging Consultation
2. Enhancing data quality for effective Surveillance in Capital Markets
3. AFME / Latham & Watkins Recording requirements for Mobile Devices, Electronic Communications and Videoconferencing

AFME advocates for a robust and effective financial crime regulatory framework that can be consistently applied at global, European, and national levels.

We collaborate with industry experts to develop evidence-based solutions to combat money laundering and terrorist financing and engage with European and international regulators and stakeholders to ensure these solutions are reflected in well-informed and effective regulation.

We are currently leading industry debate on the EU anti-money laundering package and will support EU authorities in drafting more than 60 technical standards by 2029.

We also support our members in understanding and complying with a complex and evolving landscape of international sanctions and other restrictive measures.

Our work includes briefing members on new developments, engaging with public authorities to shape official practices, and providing evidence to promote best practices while discouraging ineffective or duplicative measures. This helps members maintain robust sanctions compliance while ensuring sanctions regimes are effective and operationally feasible.

Related articles

1. AFME response to EBA Consultation on proposed RTS in the context of the EBA’s response to the European Commission’s Call for advice on new AMLA mandates
2. Anti-Money Laundering Transaction Monitoring in the Markets Sector

We actively engage in advocacy on corporate governance, in particular the Senior Managers Regime, the Senior Executive Accountability Regime (SEAR), Diversity, Equity, and Inclusion, Non-Financial Misconduct, as well as European Commission/EBA level work on governance arrangements and remuneration.

Related articles

1. AFME Response on the PRA/FCA Remuneration Reform Consultation Paper CP 16/24

AFME focuses on tax matters relevant to the smooth functioning and efficiency of the international wholesale financial markets.

AFME engages at European and national level to ensure that new tax regulations are clear, proportionate and can be implemented in a cost-effective manner.

AFME supports members with the efficient implementation of tax regulations (for example through industry-wide protocols for the Financial Transaction Taxes (FTTs) in France, Italy and Spain).

Key Documents:

1. Industry submission on the proposed Directive on Faster and Safer Relief of Excess Withholding Taxes (FASTER) (February 2024)
2. DAC6: Hallmark evaluation in certain capital markets transactions (October 2020)
3. Application of DAC 6 to Financial Products and Services (June 2020)

Consultation Responses:

1. AFME response to the consultation on ‘Electronic invoicing: promoting e-invoicing across UK businesses and the public sector’ (May 2025)
2. AFME response to the European Commission’s evaluation of the Directive on Administrative Co-operation in the Field of Direct Taxation (July 2024
3. AFME response to the European Commission Proposal for a Council Directive on Faster and Safer Relief of Excess Withholding Tax (September 2023)

Our Accounting work represents members' views on the development and implementation of the International Financial Reporting Standards (IFRS) to the International Accounting Standards Board (IASB) and other relevant standard-setting and regulatory bodies, such as the European Financial Reporting Advisory Group (EFRAG) and the European Commission.

Key priorities include:

1. Supporting work on the development of IFRS by submitting AFME’s views on the IASB’s research agenda, discussion papers and exposure drafts.
2. Engaging with EFRAG, the European Commission and the European Parliament in providing AFME’s views on the endorsement of new accounting standards.
3. Providing a forum for members to discuss implementation issues related to new accounting standards and changes to existing accounting standards.