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...
Category - Brexit
Emma RadmoreAndrew 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...
FIN. TeamFSM 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...
Stephen WilsonTreasury 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...
“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...
Insurance business transfer scheme permitted
An application under Part VII of FSMA 2000 was made for sanctioning an insurance business transfer scheme which involved the transfer of insurance policyholders from Assured Guaranty (Europe) PLC (in the UK) to Assured...
FCA makes new rules
The FCA’s latest Handbook Notice confirms changes to: apply the rules set out in the Funeral Planning Conduct of Business (FPCOB) sourcebook to funeral plan providers selling their own plans directly to customers...
Regulators due to give evidence on future of financial services
Sheldon Mills (Executive Director, Consumers and Competition at FCA) and Vicky Saporta (Executive Director, Prudential Policy Directorate at PRA) are due to give oral evidence at the Future of Financial Services Inquiry...
FSMA 2000 (Exemption) (Amendment) Order 2022 published
The Order amends the list of persons in Part IV of the Schedule to the FSMA 2000 (Exemption) Order 2001 to include Norges Bank, the Norwegian central bank. The amendment means that Norges Bank will be exempt from the...
Parliament launches new UK-EU financial services inquiry
Parliament has launched an inquiry to establish: the impact of Brexit so far on the financial services sector; the future of financial services trade with the EU in the absence of equivalence; and the impact of...
Government to bring forward Brexit Freedoms Bill
The Prime Minister has pledged to bring forward the ‘Brexit Freedoms’ Bill, which aims to end the current status of EU law, enabling it to be amended or removed more easily. This announcement is accompanied...
Government Committee launches inquiry on retained EU law
The European Scrutiny Committee has launched an inquiry into the future of retained EU law. This follows the Government’s announcement in September 2021 that it would conduct two reviews into the new category of...
EPC issues SEPA reminder
The European Payments Council (EPC) has published a press release reminding Single European Payments Area (SEPA) payment scheme participants to comply with the EU Revised Wire Transfer Regulation (2015/847)...
UK and Australia sign historic trade deal
The UK and Australia have signed a trade deal which sets new global standards in digital services and creates new work and travel opportunities for residents of both nations. The deal, which was agreed in principle in...
CLLS considers Fin Prom onshoring
The City of London Law Society has published a letter written to the Treasury in July expressing concerns about how the “onshoring” of the Financial Promotion Order post-Brexit has affected the exemptions...
FCA publishes quarterly consultation paper
The FCA has published its 34th quarterly consultation paper. The proposed changes to the FCA handbook include: Amending the Enforcement Guide to reflect the EU Exit Passport Regulations by providing information about...
FCA updates guidance on TPR landing slot changes
FCA has already started to email firms in the Temporary Permissions Regime (being firms that previously passported into the UK under Schedule 3 or Schedule 4 to FSMA) to confirm their ‘landing slot’: the...
FCA portfolio letter to wealth management and stockbroking firms
FCA has published its portfolio supervision letter to the wealth management and stockbroking portfolio. The letter focuses on FCA’s plans for the Consumer Duty and what it would mean for firms. It also notes the...
FIA releases principles for cross-border regulation
The Futures Industry Association (FIA) has released a policy paper outlining seven principles to guide the regulation of cross-border activities in the derivatives markets. The paper addresses the threat of market...
Up next from the regulators
Nikhil Rathi and Sam Woods, CEOs of the FCA and PRA respectively, have set out the regulators’ current areas of focus. Highlights from Mr Rathi’s speech include that the FCA: is collaborating with...
Responses published on future framework for regulation of financial services
The government, FCA and BoE have responded to the Treasury Committee’s fifth report on the future framework for regulation of financial services. Government response The government’s response is brief as it...
PRA consults on insurance business transfers
The PRA has launched a consultation on its approach to insurance business transfers. The proposals update the PRA’s approach following legislative changes post-Brexit and provide greater clarity on the PRA’s...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
FCA consults on modifying derivatives list on LIBOR transition
FCA is consulting on modifications to the list of derivatives subject to the derivatives trading obligation in line with Articles 28 and 32 of UK MiFIR in the light of interest rate benchmark reform and BoE’s...
UK signs free trade deal with Norway, Iceland and Liechtenstein
The government has announced a new free trade agreement between the UK and Norway, Iceland and Liechtenstein. The deal will boost critical sectors like digital, and professional business services, slash tariffs and...
FCA publishes agreements with overseas regulators
The FCA has published a new webpage which sets out the multilateral and bilateral Memoranda of Understanding and other agreements it has signed with overseas regulators. The published list is not exhaustive and some...
FCA consults on updates to guidance on the review of Part VII transfers
The FCA is consulting on proposed updates to its Finalised Guidance, FG18/4: The FCA’s approach to the review of Part VII insurance business transfers, which was initially published in May 2018. The FCA is...
Treasury reports on future framework for regulation of financial services
The Treasury Committee has published its report on the future framework for regulation of financial services. The report considers the future of financial services following the end of the Brexit transition period and...
FCA speaks on tough regulation and the future
Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
Prime Minister speaks with financial services leaders
Boris Johnson hosted a virtual roundtable with financial services leaders alongside the Chancellor Rishi Sunak and the BoE Governor Andrew Bailey. Topics discussed include: boosting home ownership by transforming...
BoE speech: responsible openness in the insurance sector
BoE’s Anna Sweeney (Executive Director, Insurance) delivered a speech at the Association of British Insurers Prudential Regulation Webinar on how the UK will regulate insurance services post-Brexit. The speech...
Update on AIFMD Delegation Rules
The EU has been saying for some time that it wishes to review the rules by which EU AIFMs may delegate investment management to entities outside of the EU. In its August 2020 letter regarding the review of the AIFMD...
FCA consults on changes to UK MiFID firm organisational requirements
FCA is consulting, as part of its wider capital markets reform work, on a set of changes to the conduct and organisational requirements on research and best execution. The aim is that the rules continue to achieve...
PSR consults on Brexit changes to IFR guidance
PSR has opened a consultation into changes to its guidance on the Interchange Fee Regulation (IFR) as a result of Brexit and changes to the regulatory framework. Following Brexit, the IFR is now retained EU law, which...
FCA speech: regulating the UK as a global financial centre
Speaking at the City & Financial Global virtual conference, Nausicaa Delfas, the FCA’s Executive Director of International, stressed that the UK’s departure from the EU is an opportunity the FCA intends...
FCA issues reminder to consumer credit firms about post-Brexit disclosure changes
FCA has issued a statement and published an updated webpage to remind firms subject to regulations 8, 10 and 11 of the Disclosure Regulations 2010 and the corresponding rules in the FCA Handbook of the changes they will...
UK/EU Technical Discussions on MoU concluded
Treasury has announced that the technical discussions on the text of the UK/EU financial services regulatory MoU have concluded. Now the formal steps needed to actually sign up to the MoU can hopefully happen quickly.
CMA publishes annual plan for 2021/2022
Following consultation, the CMA has now published its annual plan for 2021-2022. The CMA has identified four key themes on which it intends to concentrate: protecting consumers and driving recovery during and after the...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
Government provides update on Australia free trade negotiations
The Department for International Trade published a press release with an update on the ongoing negotiation of a free trade agreement between the UK and Australia. The fourth round of talks took place between 22 February...
FS Bill at Committee Stage in Lords – including new FTP offence
The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are: an requirement for a member of the FCA governing body to have...
FCA updates TPR pages
FCA has updated its website to help firms in the TPR understand what is coming next. Among other things, it has started to email firms about their landing slots. It cautions that firms should not apply before their...
Treasury publishes Kalifa Fintech Review
Treasury has published the Kalifa Review of UK Fintech, which launched last summer. The report sets out proposals for the UK to build on its existing strengths in the sector. The review looks at the development...
PRA clarifies credit risk approach
PRA has clarified its approach to published EBA Guidelines and EU RTS in relation to credit risk following the end of the Brexit transition period. PRA had thought that the RTS on economic downturn would have been made...
UK applies to join CPTPP
The UK government has submitted a formal request to join one of the world’s largest free-trade areas, the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The move would deepen the UK’s...
UK and Switzerland in talks on better FS cooperation
The UK and Switzerland are planning a comprehensive mutual recognition agreement in relation to financial services. The plan is for it to cover insurance, banking, asset management, capital markets and market...
FCA consults on changes to SCA-RTS and payment services perimeter guidance
FCA is consulting on: changes to the RTS on SCA. Key changes will include: a new exemption from SCA when customers access their information through an AISP; mandating the use of APIs by ASPSPs to faciliate TPP access to...
FCA updates on EU MoUs
FCA has updated its website to reflect the Memoranda of Understanding it has signed with various European authorities on co-operation and exchange of information. It has MoUs with ESMA, EIOPA and EBA as well as...
ESMA reminds firms about MiFID 2 reverse solicitation and Brexit
ESMA has written to firms noting that some “questionable practices” around reverse solicitation in the context of MiFID 2 have become apparent since Brexit. It gives as an example, pop up “I...
Regulators confirm Gibraltar passporting
PRA and FCA have confirmed that UK and Gibraltar firms will be able to continue to apply for and use a passport to do business in the other’s jurisdiction until, probably, the end of 2021.
Brexit “Trade and Cooperation” Agreement – FS impact
The Trade and Cooperation Agreement finally agreed between the UK and the EU contains very little definitive provision for financial services. As expected, there is no continuation of anything approaching the single...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
FCA finalises all Brexit instruments and TTP
FCA has published its final Brexit rulebook onshoring instruments and guidance, and directions under its Temporary Transitional Power. The final instruments are largely unchanged from the “near final”...
PRA confirms rules on changes before end of transition
PRA and the BoE have confirmed their final and near-final policies setting out: EU exit instruments; non-binding materials; the PRA and Bank transitional direction and guidance documents – including on Solvency...
BoE Financial Stability Report
The Bank of England published the Financial Stability Report for December. The report sets out the Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or...
FCA makes new rules
At FCA’s latest board meeting, it made a number of Brexit-related instruments, including: general amendments, including amendments to BTS to check they operate effectively in UK law; SMCR and approved person...
FCA publishes Brexit FAQs
FCA has created a new page on its website with FAQs on Brexit. The website draws together questions on:
the TPR
passporting
operating and the TPP and
transaction reporting changes
PRA consults on designating firms within certain banking UK consolidation groups
The PRA has published a consultation paper setting out its proposed approach to designating entities within certain banking UK consolidation groups as responsible for ensuring that consolidated prudential requirements...
FCA updates on MAR and Brexit
The FCA has updated its website to explain what will happen to the EU Market Abuse Regulation (EU MAR) after 31 December 2020. At the end of the transition period, EU MAR will be onshored into UK law by virtue of the...
FCA launches UK Benchmarks Register
In preparation for the end of the Brexit transition period, FCA has announced the launch of the new UK Benchmarks Register. The Register, which can be accessed from 11pm on 31 December 2020, will replace the ESMA...
FCA reminds firms to be ready for Brexit
FCA has reminded firms they have less than a month before the end of the transition period. It highlights: the changed rules that will apply from 1 January 2021, which are not subject to the Temporary Transitional...
PRA confirms CRDV statement date
PRA has issued a statement explaining to firms when they can expect further information on the implementation of CRD V. PRA issued two separate consultations, the later of which closed on 17 November. It plans to...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
Regulators make Brexit reporting statements
ESMA and FCA have published statements on: the impact of the end of the transition period on the trading obligation for derivatives under MiFIR; the reporting of securities financing transactions under the UK SFTR;...
Regulators update on FS Bill reforms
Treasury, PRA and FCA have updated the industry on the planned timelines for the introduction of the UK Investment Firms Prudential Regime and implementation of remaining Basel 3 reforms. The targeted implementation...
Government takes equivalence decisions
The Treasury has announced its first set of equivalence decisions for EEA measures. The decisions relate to parts of EMIR, the CRR, Solvency 2, the CSDR, the Benchmarks Regulation, the CRA Regulation, the SSR and CCPs...
Government heralds future financial services regulation
Rishi Sunak has announced a range of measures the UK is now to take to ensure the financial services industry moves forward. In a speech, he praised all the measures the industry has taken to date and through the...
EBA reminds firms to finalise Brexit plans
EBA has reminded firms that, from the end of the transition period, UK firms can no longer provide services to EU customers on a passporting basis. It notes that: UK financial institutions offering services to EU...
FCA updates on EEA regulator Brexit guidance
FCA has put together an information page sharing links to the websites of EEA regulators on which they have published guidance about the effects of Brexit on UK firms operating in their jurisdictions. Some of the pages...
UK Finance reports on post-Brexit sanctions SIs
UK Finance has published the results of a study it has carried out in relation to UK Sanctions statutory instruments, as they will look at the end of the transition period, to assess what differences there will be from...
FCA outlines approach on share trading obligation
The FCA has set out its approach to the share trading obligation (STO) at the end of the Brexit transition period, if mutual equivalence is not agreed. The approach is intended to ensure open markets and competition...
Committee calls for more evidence on post-Brexit FS
The House of Lords EU sub-committee has called for more evidence on financial services after Brexit. It now wants to focus on the priorities for the future relationship between the UK and EU and the consequences if...
Financial Regulatory Working Group issues joint statement on UK-US
The Financial Regulatory Working Group’s meeting on 20 October was the first since the UK left the EU. The meeting focussed on five key themes: the economic response to, and potential financial stability impacts...
FCA confirms new rules
FCA has issued a Handbook Notice summarising rule changes finalised over recent months. Key among them are: the new section on COBS (22.6) to ban derivatives and ETNs that reference certain cryptoassets to be marketed...
UK and Japan sign free trade agreement
The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) was signed on 23 October marking the first agreement that the UK has secured as an independent trading nation. The deal is hoped to boost UK-Japan trade...
Regulators update insurers and others on Brexit expectations
PRA and FCA have written a joint letter to CEOs of insurance firms on the importance of being prepared for the end of the transition period, and FCA has also more generally updated its website. The regulators stress the...
HMT consults on financial services regulatory framework post-Brexit
HM Treasury has published a consultation paper in relation to Phase II of its Financial Services Future Regulatory Framework Review. HMT is seeking views on proposals for the financial services regulatory framework post...
Lords responds to HMT on equivalence
Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...