Emma RadmoreThe FCA has updated its direction relating to the Derivatives Trading Obligation (DTO) with effect from the end of 2024. The DTO came from MiFID, and the FCA is now modifying the UK’s DTO from the transitional...
Category - Brexit
Michael Lewis
PRIIPs disclosure change confirmed
The Regulations that take investment trusts outside the scope of the current PRIIPs disclosure requirement (current until the PRIIPs regime is repealed in favour of the new Consumer Composite Investment regime) have...
FCA reacts to Mansion House speech
The FCA has reacted to several announcements from the Mansion House speech. It has reiterated that it is committed to supporting growth and says it has fully embraced its secondary international competitiveness and...
Treasury and FCA set out next steps for MiFID
HM Treasury has set out its plans for changes to the assimilated MiFID regime, to make changes to the wholesale markets framework. Its immediate plans are: to ensure the FCA has the necessary tools to oversee off...
PRA consults on CRR assimilated law
The PRA has published a consultation on how it plans to restate the relevant provisions from the assimilated CRR into the PRA Rulebook and other policy material. The changes would involve the creating of two new parts...
FCA updates regulatory initiatives grid
The FCA has published an interim update on its Regulatory Initiatives Grid. It had postponed the scheduled 8th edition because of the election and says that the replanning required as a result means that there...
Treasury publishes draft PRIIPs replacement regulations
The draft Consumer Composite Investments (Designated Activities) Regulations 2024 have been published. The Regulations will repeal all assimilated law relating to PRIIPs and create a UK regime of “consumer...
FCA confirms forbearance in relation to investment trust disclosure requirements
Following the Treasury’s announcement that it would be excluding certain investment trusts from the PRIIPs Regulation and other EU-assimilated law, the FCA has confirmed it will be applying new regulatory...
Laura WilesTreasury announces reforms to retail disclosure requirements
The Government and the FCA have announced plans to replace EU-inherited retail disclosure rules with a framework tailored to UK markets and firms. HMT previously consulted on replacing the PRIIPs Regulation with a new...
FMLC asks HM Treasury to clarify MLRs 2017
The Financial Markets Law Committee (FMLC) has written to HM Treasury asking it to clarify areas of legal uncertainty relating to the MLRs 2017. The FMLC considers that the continued reference to the EU CRD Annex 1...
EBA welcomes new EU AML/CTF framework
The EBA has published a statement setting out its AML/CTF priorities for 2024/25. It will focus on: a methodology for selecting financial institutions for direct EU-level AML/CTF supervision; a common risk assessment...
FCA clarifies open banking expectations relating to run off firms
The FCA has updated its information page on firms in the Contractual Run Off scenario following Brexit. It has clarified that ASPSPs are not obliged to provide CRO firms with access to payment accounts given that CRO...
Conservative manifesto highlights fintechs
The Conservative Manifesto, published on 11 June, contains few surprises for financial regulation. It priorities: building on the various co-operation agreements it has already signed, including with the EU and...
Lib Dem manifesto prioritises financial inclusion
The Liberal Democrat manifesto, published on 10 June, includes several commitments in relation to the financial services sector, such as: expanding the British Business Bank to perform a more central role in the...
FCA speaks on investment management
Nikhil Rathi has spoken on the importance of the UK keeping its leading position in global asset management. He discussed current international initiatives such as: liquidity risk management, particularly for open ended...
EU adopts new AML package
The Council of the EU has adopted the new AML package, which will comprise a new Regulation which takes in and updates all AML requirements on the private sector, a new Directive which sets out both how national FIUs...
Overseas Funds equivalence determination made
The FSMA 2000 (Overseas Funds Regime)(Equivalence)(EEA) Regulations will take effect on 16 July. The Regulations set out the Treasury’s approval of each EEA state in relation to any EEA authorised UCITS that is a...
Treasury and FCA publish overseas funds roadmap
HM Treasury and the FCA have published a timeline and roadmap for implementation of the new Overseas Funds Regime. The document explains how the OFR is now going to open up to EEA UCITS, and sets out what their...
Government responds further on progress of Edinburgh reforms
The Government has published a second formal response to its December 2023 report on the progress of the Edinburgh reforms. This response is more detailed than the Government’s initial response and includes an...
Government sets out third phase of Smarter Regulatory Framework
Following its Smarter Regulatory Framework (SRF) delivery plan, Treasury has published a follow-up paper which sets out the progress made so far and the government’s approach to the next phase of the SRF programme...
FCA publishes Business Plan 2024/2025
The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...
AIF Bill has second reading
The Alternative Investment Fund Designation Bill has had its second reading in the House of Lords and has now moved to Committee stage. The main purpose of the Bill is to remove listed investment companies from the...
PRA publishes final Solvency II review reporting rules
PRA has published its final reporting and disclosure policy following its various consultations on the Solvency II review. It has also published near-final rules which will: amend the External Audit, Fees and Reporting...
FCA says wholesale data market needs improvement
FCA has published the results of its wholesale data market study. The study looked at competition in the markets for credit ratings data, benchmarks and market data vendor services. FCA has found instances in all 3...
PRA publishes policy statement on Solvency II reform
Following its consultation in June 2023 (CP12/23), the PRA has published its policy statement on Solvency II reform (PS2/24). As a reminder, the main areas of reform proposed in the consultation were: simplifications...
Treasury consults on PRA ability to modify rules
Treasury has published a draft statutory instrument using its powers under s138B FSMA. This provision was introduced by FSMA 2023. PRA and FCA have always had power to modify the application of certain rules, but before...
FCA speaks to EU on global cooperation
Ashley Alder, FCA Chair, has spoken at the UK Mission to the EU on the importance of regulatory cooperation and open markets, and the relationship the UK now hopes to build with the EU under the 2023 MoU. He said that...
EEA states “equivalent” for overseas funds
Baroness Vere of Norbiton, Treasury Lords Minister, has announced that the Government has decided that all EEA states have been assessed as “equivalent” for the purposes of the UK’s Overseas Funds...
FCA publishes TPR data
The FCA has published summary data on the firms that entered the TPR and on those which have successfully secured full UK authorisation: 1,191 solo-regulated firms entered the TPR, spanning 29 jurisdictions and covering...
BoE responds on PRC remit
BoE Governor Andrew Bailey has written to the Chancellor, updating last year’s response to the letter setting out the Chancellor’s recommendations to the Prudential Regulation Committee (PRC). The letter...
Vida Fatemi“Retained” EU law now known as “assimilated”
The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 took effect on 1 January 2024. They are of minimal substantive impact on financial regulation, except to replace various...
FCA updates on retained EU laws
FCA has updated its website with details of the current state of play in relation to the repeal and replacement of retained EU laws in the financial services sector. Coming up in 2024 will be many changes and papers...
Government revokes more retained EU laws
The fourth Commencement Order of FSMA 2023 brings into force various provisions of the Act, and revokes a long list of retained EU legislation from 1 January 2024. Other provisions that come into force on that date...
FCA makes new rules
FCA has published new rules including amendments to: introduce the requirements on Sustainability Labelling and Disclosure (from 28 November 2023) update SYSC from 8 December in respect of changes to the proportionality...
FCA finalises new rules to replace IDD
FCA has published its policy statement and final rules which will replace the IDD Delegated Regulations with rules and guidance in the FCA Handbook. The Regulations included: the standardised IPID format; product...
Different perspectives on Edinburgh Reforms progress
While the Treasury has heralded the progress made since the Edinburgh Reforms were announced a year ago, the Treasury Committee is less pleased. The Economic Secretary to the Treasury, Bim Afolami, focussed on the...
PRA consults on step-in risk assessments
PRA is consulting on proposed changes to rules and policy that will require CRR firms and consolidation entities that are not classified as small domestic deposit takers to regularly assess their step-in risk –...
FCA sets out temporary forbearance measure for investment company cost disclosure
The FCA has published a statement in response to concerns about costs and charges disclosure in the PRIIPs KID, UCITS KIID and MiFID II requirements. The concern was that the required costs and charges disclosure for...
Autumn Statement: financial regulatory issues
The Government’s Autumn Statement covered several new and ongoing actions relevant to the financial services sector, including: legislation to replace retained EU, mainly in the markets space (securitisations...
Government publishes PRIIPs replacement legislation
The Government has published draft legislation that will replace the PRIIPs Regulation and create a new UK retail disclosure framework for “consumer composite investments” (CCIs). The initiative is part of...
Lords recommends new Regulation Committee
The House of Lords Liaison Committee has recommended that a new financial services regulatory committee be created whose remit will be to look at financial regulation generally and particularly to scrutinise financial...
Treasury publishes draft Brexit amendment SI
Treasury has published a draft statutory instrument, intended to take effect from 1 January 2024 which will use powers under FSMA 2023 to make various changes to primary and secondary legislation to remove or amend...
Treasury responds on Edinburgh Reforms progress
Treasury has responded to a request from the Treasury Committee for an update on delivering the Edinburgh Reforms. It notes: reform of the ring-fencing regime: this is in progress with draft legislation being published...
PRA consults on insurance branch supervision
PRA has published a consultation paper, setting out its proposals to consolidate and formalise existing PRA policy on overseas insurers that write business in the UK through the establishment of a third-country branch...
Gibraltar temporary regime extended by 12 months
The transitional arrangements allowing Gibraltar firms to do business in the UK pending implementation of a new permanent regime has been extended by 12 months since the new permanent regime is not yet ready.
PRA speaks on Solvency UK
Gareth Truran of PRA has spoken on the “Solvency UK” initiative which will replace Solvency II. He said PRA is maintaining the momentum it needs to implement the reforms in 2024. He said the proposals PRA...
FCA to start action on UCITS marketing landing slots
FCA will shortly start contacting fund operators who are in the UCITS Temporary Marketing Permissions Regime with a view to starting discussions about landing slots for exiting the regime. FCA has not yet finalised the...
FCA consults on the future of the IDD
FCA is consulting on a proposal to transfer parts of the IDD that are currently in legislation into its rules, as part of the Future Regulatory Framework following Brexit. Treasury has announced its plan to repeal the...
FCA updates on UK MiFIR obligations
The FCA has published a direction on the revocation of its transitional direction for the share trading obligation (STO) under UK MiFIR. The direction specifies that the STO was revoked on 29 August 2023 by the...
Gibraltar regime rulemaking powers to take effect
Provisions of the Financial Services Act 2021 that allow the regulators to make laws and rule implementing the upcoming Gibraltar authorisation regime will take effect from 1 September 2023.
Estonian bank business transfer scheme permitted
The court has sanctioned a business transfer scheme under section 111 FSMA for Estonian bank AS LHV Pank (LHV) to transfer the deposit-taking, banking and regulated payment services business currently being carried on...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
Treasury publishes new PARs customer information requirements
Treasury has published the outcome of its consultation on customer information requirements in the Payment Accounts Regulations (PARs) 2015. It confirms the government’s intention to revoke Part 2 and Schedules 1...
Treasury revokes PRIIPs and outlines new UK retail disclosure regime
Treasury has published the outcome of its consultation on revoking the PRIIPs Regulation and introducing a more suitable alternative. The PRIIPs Regulation had been widely criticised due to the misleading information it...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
UK and EU sign MoU
Jeremy Hunt has made his first visit to Brussels as Chancellor to sign the EU/UK financial services MoU. The MoU sets out arrangements for information sharing, exchanges of views and enhanced co-operation on financial...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
Lords complete first day of FSM Bill Report stage
During the first day of Report stage in the House of Lords on the FSMB, the sessions debated key matters including: amendments in relation to the revocation of retained EU law to require meaningful Parliamentary...
UK and EU publish draft MoU on FS cooperation
The UK and EU Commission have published their draft MoU on regulatory cooperation in financial services. The draft is still subject to the internal processes of the EU, but both parties intend to sign it shortly. The...
House of Lords updates on FSM Bill
Ahead of the seventh day of debate on the FSM Bill in the Grand Committee, the House of Lords has published: a new list of amendments; a letter promised by Baroness Penn to all members on matters raised at the second...
Round up of FSMB in Lords’ Grand Committee
The FSMB has now completed 3 of its scheduled 6 sessions in the Lords’ Grand Committee. Many Lords have spoken on amendments, including several from Baroness Bowles, but so far none have been voted through. The...
FSMB Lords Committee third day
The Lords Grand Committee had its third day of discussion on the FSM Bill on 1 February. The session covered: a group of amendments designed to test how the regulators apply their competitiveness and growth objectives...
FSMB second day of Lords’ Committee hearing
The second day of debate in the Lords’ Grand Committee consisted of a lively debate on several proposed amendments, none of which have been taken forward. Topics debated were: creating offences for abuse of...
First session of Grand Committee on FSMB
In the first session of the Grand Committee sitting on the FSM Bill, Clause 1-23 of the Bill were approved (some with amendments), and a number of Government amendments were also agreed. There was lengthy discussion on...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
Further FSMB amendments for Lords Grand Committee
Further amendments, and an updated running list of amendments, to the FSM Bill to be discussed in the Lords Grand Committee have been published. Among the latest additions are changes which would: remove short selling...
FSMB completes second reading in Lords
The FSMB had its second reading in the Lords on 10 January. Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...
FCA removes temporary permissions for missing landing slots
FCA has started using its powers to remove temporary permissions from firms in the TPR who missed their landing slots. Lyonnaise de Banque missed its allocated slot, which gave it until 31 March 2022 to apply. FCA has...
FCA makes new rules
FCA’s latest Handbook Update confirms the following new rules: the Non-Workplace Pensions Instrument, which takes effect from 1 December 2023 and puts in place changes designed to help non-workplace pension savers...
FCA seeks views on retail disclosures
Following on from the Treasury consultation on PRIIPs information requirements, FCA is now seeking views on when and in what format information should be delivered to consumers in a way that ensures what is provided is...
Treasury makes recommendations to PRA and FCA
Treasury has published its correspondence setting out recommendations for PRA and FCA, which coincide with the announcement of the Edinburgh reforms. Treasury is required, at least once each Parliament, to set out...
Treasury consults on PAR information requirements
Treasury is consulting on the customer information requirements in the Payment Accounts Regulations. It is reviewing the requirements in the Schedules to the Regulations, in the expectation that many of them are too...
Treasury consults on PRIIPs and UK Retail Disclosure
Treasury is consulting on plans to revoke the PRIIPs Regulation and replace it with a more suitable alternative. The PRIIPS Regulation has not been popular, with key criticisms being that it requires misleading...
Treasury publishes FS law Brexit strategy
Treasury has published a Policy Paper setting out how it intends to deal with retained EU law in the financial regulatory sector. The Policy Paper says that the FSMA model, with the operationally dependent regulators...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
PRA speaks on implementation of Basel 3.1
Phil Evans of the PRA has given a speech at UK Finance entitled “Implementing Basel 3.1 in the UK” providing an overview of the approach in PRA’s consultation paper CP 16/22. In it he notes the momentousness...
Duncan ScottPRA amends approach to identifying O-SIIs
PRA has published a policy statement setting out amendments it will be making to its approach to identifying other systemically important institutions (O-SIIs). The statement also contains PRA’s feedback to the...
FCA and BoE agree MoU with Bank of Greece
FCA has published a Memorandum of Understanding (MoU) between the Bank of Greece (BoG) and the BoE and FCA which aims to formalise supervisory cooperation and information sharing arrangements in the wake of Brexit...
Andrew Griffith letters on FSMB
The House of Commons has published a letter from Andrew Griffith on the FSM Bill dated 10 October to Tulip Siddiq and Abena Oppong-Asare. The letter followed the second reading of the Bill and addresses: the...
FSMB debate discusses crypto, net zero and regulatory independence
The debate on the FSM Bill resumed on 27 October. The Committee discussed, in the morning and afternoon sessions: Clause 21: the proposals for regulating stablecoins. The main question came from Tulip Siddiq who queried...
Key Appointed Rep and TPR deadlines
FCA’s latest edition of “regulation round up” summarises recent publications and key deadlines, and also: says it will send the promised s165 request to all principal firms asking for information about...
Emma RadmoreHighlights of FSMB debates from 25 October
The 3rd and 4th sittings of the Public Bill Committee debate on the FSM Bill took place on 25 October. After the evidence sessions from witnesses on 19 October, the line-by-line scrutiny of the Bill has now started...
Government responds on UK/EU FS dialogue
The Government has published its response to the House of Lords’ European Affairs Committee report on the UK-EU relationship in financial services. In the main, it is pleased with the Committee’s findings...
Government updates on Growth Plan and FS proposals
The Government’s update on its growth plan, published on 26 September, heralds an October date for the Chancellor to set out plans for regulatory reforms to the financial services sector, to keep it competitive.
FCA speaks on role of regulation in growth
Sarah Pritchard, Executive Director at FCA, has spoken on the regulator’s role in encouraging growth. Key points in her wide-ranging speech included: FCA’s commitment to showing speed and agility, providing...
Government Growth Plan heralds role of financial services
The Government’s new Growth Plan announced on 23 February highlights the importance of the financial services sector and, specifically: a plan to scrap bankers’ bonus caps; the need to scrap much of Solvency...
“Brexit Freedoms Bill” starts Parliamentary journey
The Government has published the Retained EU Law (Revocation and Reform) Bill 2022, which it is referring to as as the “Brexit Freedoms Bill“. The plan is to amend, repeal or replace all EU legislation by...
PRA’s future approach to policy
On 8 September 2022, PRA published its intended future approach to policy in a new discussion paper (the ‘paper’) which is summarised on the Bank of England’s website. The paper is based on the FSM...
Nicola RadfordFSM Bill progresses through Parliament
The Financial Services and Markets Bill had its second reading in Parliament on 7 September. There appears to be broad support for the Bill, and many MPs focussed on the importance of access to cash. On 8 September...
Treasury Committee publishes responses to “future of regulation”
The Treasury Committee has published responses from the Government, PRA and FCA on its report on the future of financial services regulation. Among the key observations are that: all regulators agree the importance of...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation. It proposes changes to: the schemes regime under s272, and consequential changes to COLL, the Glossary, DEPP and EG. The changes specifically relate to what FCA...
PRA consults on O-SII approach
PRA is consulting on changes to its approach to identifying other systemically important institutions It currently carries out its assessments following the EBA methodology but feels Brexit gives an opportunity to...
European Scrutiny Committee reports on EU law
The European Scrutiny Committee has reported that the principle of the supremacy of EU law is incongruous with the UK’s legal framework and should be scrapped. As the law currently stands, the retained EU laws...
New Financial Services and Markets Bill in Parliament
The Government has introduced the Financial Services and Markets Bill into Parliament. The Bill was introduced on 20 July and had its first reading, but no date was set for the second reading. In his first Mansion House...
FCA publishes Annual Report
FCA has published its Annual Report and supporting papers. It highlighted: how nearly 600,000 people are paying less in interest and charges on credit card debt following rule changes; how further rule changes have...
Draft Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022 published
Treasury has published a draft version of the Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022, which make a variety of amendments to allow retained EU legislation to operate effectively after...
Update: the future of UK financial services regulation
The Treasury Committee has published a report outlining its plans to launch a new Sub-Committee to scrutinise regulatory proposals for financial services. The Sub-Committee will be chaired by the Rt. Hon. Mel Stride MP...
Government commits to Consumer Credit Act reform
The Government has announced its commitment to seeking reform of the rules contained in the Consumer Credit Act 1974 (the CCA) in an effort to modernise them, cut costs for business and ensure the rules are easier for...
Treasury Committee reports on future of financial services regulation
The Treasury Committee has warned the Government that, in looking at the opportunities for regulatory reform and considering what it can offer, it must take care to ensure that competitiveness does not become the...
Parliament launches post-Brexit regulatory divergence inquiry
The European Scrutiny Committee has launched an inquiry looking at the benefits and challenges to business and the UK economy of diverging from EU regulation that was copied into UK law post-Brexit. Financial services...
Queen’s Speech 2022 – FS elements
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
FIN. Team“Market share test” update on commodity derivatives ancillary activities exemption
Article 2(1)(j) of MiFID II exempts firms trading in commodity derivatives, emission allowances and emission allowance derivatives from authorisation as a MiFID investment firm if they fulfil certain criteria. Firms are...