The FCA and Action Fraud have reported that victims have lost over £27 million in total in 2018/2019 to crypto and forex investment scams. Action Fraud reports show that on average, victims were each scammed out of...
Category - Investments
FIN. TeamEU Council adopts updated rules for financial derivative products and clearing
The EU Council has adopted a new regulation, amending the European Market Infrastructure Regulation (648/2012), that will address the transparency issues, insufficient access to clearing and disproportionate complicated...
Emma RadmoreEU Council adopts legislative framework to reduce risks in banking system
The EU Council has adopted reforms to CRD IV and the BRRD, as approved by the European Parliament in April. The package includes: a leverage ratio requirement for all institutions and a leverage ratio buffer for all...
FCA helps investors in unregulated mini-bonds
FCA has published advice to investors who lost money investing in Secured Energy Bonds plc mini-bonds. The advice notes that, although the issuer was (and did not need to be) regulated, mini-bonds are themselves...
Emma RadmoreFCA calls for input on FAMR and RDR
FCA has called for feedback on its planned approach to reviewing the RDR and FAMR. The purpose of the review is to find out whether the two initiatives have succeeded in their objectives, focussing on what consumers...
FSCS sets next year’s levy
FSCS has set its 2019/2020 levy. It will be £532m, which is slightly more than its forecast, but still less than the 9 month levy for last year (had it been a 12 month levy). FSCS puts the increase down to an uplift in...
EBA supervisory colleges 2018 Report published
The EBA’s report sets out its findings on the monitoring of supervisory colleges in 2018. It noted in particular that AML and counter terrorism financing is increasingly on the agendas of the supervisory...
FSB updates on market issues
FSB, in its latest plenary meeting, discussed: current vulnerabilities in the global financial system; developing a surveillance network for potential vulnerabilities; areas where supervisory policies and practices...
FCA announce delay of publication of rules for CFD
Further to our article in December, the FCA have published a statement announcing that it is delaying publication of final rules for CFD products and CFD-like options. The FCA consulted on permanent rules to restrict...
FCA confirms miscellaneous new rules
FCA’s latest Handbook Notice confirms the following rule changes: to COBS 22 in relation to introducing a ban on selling, marketing and distributing binary options to retail customers, which already took effect...
FCA publishes PFOF findings
FCA has published an update to its Market Watch item on payment for order flow. It has now carried out a review of 15 firms, to check how they monitor compliance with FCA requirements around conflicts, inducements and...
FCA publishes research agenda
One of the documents that accompanied FCA’s Business Plan is its Research Agenda. This sets out its intentions in respect of the themes that underpin the Business Plan. The document explains how FCA welcomes...
Wholesale brokers ignore Dear CEO letter at their peril
FCA has written a Dear CEO letter to wholesale brokers setting out its thoughts on the key harms the sector poses. The letter explains that MiFID 2 and MAR have significantly raised expectations on market participants...
CRD V, BRRD and SRMR packages approved by European Parliament
The European Parliament has approved the above series of legislative measures designed to enhance the resilience of banks and reduce risks in the banking system. The measures will next go to the European Council for...
FCA reminds firms about the approval of financial promotions
Following its ‘Dear CEO’ letter, published on 9 January 2019, the FCA has reminded firms involved in the approval of financial promotions for unauthorised persons of their obligations when doing so. The FCA...
ESAs publish PRIIPs KID FAQs
The ESAs have published further Q&As on the KID requirement for PRIIPs. The updates are on both general topics (in respect of calculating the minimum holding period for a product) and MOPs, in terms of the form and...
ESMA publishes appropriateness briefing
ESMA has updated its supervisory briefing on MiFID 2 appropriateness requirements and execution only. The briefing covers: working out when an appropriateness assessment is needed; getting information from clients; the...
ESMA happy with national product intervention measures
ESMA has issued positive opinions on product intervention measures taken by not only the FCA in relation to binary options, but also the Polish KNF and Dutch AFM (also in respect of binary options), and a further...
EU and Singapore adopt equivalence in derivatives trading venues
The European Commission and MAS have mutually recognised several trading venues as equivalent in terms of their respective trading obligations. The EU has recognised 3 approved exchanges and 2 market operators. MAS has...
FCA makes binary option banning rules
FCA has published its final position and Handbook Rules on permanent product intervention measures that will ban sale, marketing and distribution of binary options to retail consumers. ESMA has extended its temporary...
Treasury asks permission to back EU risks reduction package
HM Treasury has written to the House of Lords European Committee and the House of Commons European Scrutiny Committee to request clearance to vote in favour of amendments to the BRRD, CRD and CRR. The reform package is...
FCA and SEC sign updated Brexit MoUs
FCA and SEC have signed two MoUs to ensure minimal disruption when the UK leaves the EU. Andrew Bailey, FCA CEO met Jay Clayton, SEC Chairman to sign the MoUs. The first MoU updates the comprehensive supervisory...
ESMA updates funds and MAR FAQs
ESMA has updated its FAQs on: the application of the UCITS Directive to include clarification on benchmark disclosure obligations for UCITS both in the KIID and where funds name a target in their investment objectives...
FCA publishes final no-deal Brexit rules
Perhaps in anticipation of what would follow later in the day, FCA published its final instruments and guidance that would apply in the event of a no-deal, no-implementation period Brexit, on the morning of 29 March...
ESMA updates MiFID 2 FAQs
ESMA has updated its Q&As on MiFID 2 and MiFIR investor protection and intermediaries topics. There are several new questions, including on: reverse solicitation by third country firms the target market of CoCo-bond...
FCA fines GSI £34m for 10 years of poor transaction reporting
FCA has fined Goldman Sachs International £34.3m for failing to provide accurate and timely reporting from the date of implementation of MiFID (November 2007) to March 2017. The failings affected over 220 million...
ESMA updates Q&A on MiFID II AND MiFIR in relation to commodity derivatives topics
ESMA has updated its Q&As on MiFID II and MiFIR commodity derivatives topics. An new answer has been published on the ancillary activity test as it applies to third-country firms and subsidiaries, and the answer...
EIOPA to prepare guidelines on outsourcing to cloud service providers
As part of its response to the European Commission’s FinTech Action Plan, EIOPA has published a report setting out: a summary of the current NSA work on cloud computing, an analysis of the current EU (re)insurance...
AFME publishes no-deal selling restrictions
AFME has published suggested wording for selling restrictions for equity transactions to use in the event of a no-deal Brexit. It is designed for the most common scenarios and comprises an EEA public offer restriction...
ESMA issues FAQs under Prospectus Regulation
ESMA has published its first set of FAQs under the Prospectus Regulation. The questions look at: grandfathering of prospectuses approved under the 2003 Prospectus Directive applicability of guidance on the old Directive...
ESMA renews CFD and binary option restrictions
ESMA is renewing the restrictions on marketing, distribution or sale of CFDs to retail clients for a further 3 months from 1 May. Separately, it has also renewed the restrictions on binary options, so that these...
FCA clarifies MAR status on hard Brexit
FCA has updated the information on its website about the Market Abuse Regulation, to clarify that the Treasury’s intention is to convert MAR and the Short Selling Regulation into UK law on a hard Brexit. This...
FCA extends temporary permissions window
In light of the current short extension to Brexit, FCA has decided to extend the notification window for EEA firms to apply for temporary permissions. The window was due to close on 28 March, but will now close on 11...
FCA looks at life beyond Brexit
In a speech on Brexit delivered by Nausicaa Delfas, Executive Director of International, the FCA reminded firms that the deadline for notifications under the temporary permissions regime is 28 March 2019. Firms that...
FCA plans UK Benchmarks register
FCA is planning a new UK Benchmarks Register to replace the ESMA register post-Brexit for UK supervised users, for use by them and UK and third-country supervised benchmark administrators that want their benchmarks to...
Europe reaches political agreement on reforms to EU supervision
The European Parliament and Member States have reached agreement on core elements of the reform of European supervision of financial markets, including strengthening the supervisory framework in the area of anti-money...
ESMA AND FCA STATEMENT ON SHARE TRADING OBLIGATIONS
ESMA has published a statement in which it outlines its approach, in the event of a no-deal Brexit, to the application of the trading obligations for shares (STOs) under article 23 of MiFIR in the absence of an...
FCA imposes £27.6 million fine for transaction reporting failures
The FCA has fined UBS AG for transaction reporting failures during the period November 2007 to May 2017. The FCA reported that a total of 135.8 million errors in reporting were made during this period. It queried...
Treasury Committee asks for London Capital inquiry
The Treasury Committee has written to Treasury and FCA asking for an investigation into the events at London Capital and Finance. FCA had told the firm to withdraw its promotional materials for its mini-bonds in...
BIS reports on central bank digital currencies
The BIS Committee on Payments and Market Infrastructures and the Markets Committee have published a joint report central bank digital currencies (CBDC). The report sets out the findings of research conducted by the...
FCA publishes investment platforms market study
FCA has published the final report in its Investment Platforms Market Study. It has concluded that the market is working well for most consumers, but it is proposing changes that will make it less expensive and time...
FCA Update on Digital Regulatory Reporting
The FCA has updated its webpage on digital regulatory reporting (DRR) by publishing – a video which explains the concept of DRR and outlines the work carried out by the DRR pilot group; a report which sets out an...
BCBS Statement on crypto-assets
The Basel Committee on Banking Supervision has published a statement on crypto-assets. The Committee acknowledges that while the crypto-asset market remains small relative to that of the global financial system, and...
What the Spring Statement brings for regulation
In the Chancellor’s Spring Statement, the Chancellor referred to the need to ensure financial regulation can adapt to a no-deal Brexit and then, longer term, to the UK’s new constitutional position.
FCA finalises guidance on SoRs and responsibilities maps
FCA has published its finalised guidance to help firms prepare their statements of responsibility and responsibilities maps under the SMCR. The guidance addresses the rules as they apply to each category of SMCR firm...
FCA confirms FOS increase
FCA has issued a policy statement confirming the increase in the FOS award limit. From 1 April, the limit that FOS can award against firms will be £350,000. This amount will apply in relation to complaints about...
FCA makes Directory rules
FCA has made its final rules on its “Directory“. The new public register will enable searches on all directors and senior managers, certification staff and other individuals who require qualifications to...
FCA publishes research on consumer attitudes to cryptoassets
The FCA has published a survey and qualitative research they commissioned to examine UK consumer attitudes to cryptoassets. Although the research revealed a prevailing lack of understanding about cryptoassets, it also...
EU agrees draft directive to enhance consumer protection
The EU has agreed the terms of a draft directive that, if passed, will amend a number of consumer protection directives, including the consumer rights directive (2011/83/EU), to introduce measures such as: harmonised...
Up next from FCA
FCA is running behind schedule on some expected publications. Its latest Policy Development Update highlights the following: consultation and discussion on the Investment Platforms Market Study remedies due in March...
UK CSD to be recognised by ESMA in the event of a no-deal Brexit
ESMA has announced that in the event of a no-deal Brexit, the Central Securities Depository (CSD) established in the UK, Euroclear UK and Ireland Ltd, will be recognised as a a third country CSD to provide its services...
BoE and FCA update on Brexit approach
BoE and FCA have updated their respective websites with coordinated information on their approach to a hard Brexit. BoE has published a series of materials setting out its updated plans to its supervisory approach to a...
FCA calls for costs and charges disclosure improvements
FCA has issued a set of papers on costs and charges disclosures. its feedback statement on firms’ experiences of the PRIIPs requirements concludes that firms find certain issues, in particular relating to summary...
Paper published on supervision of insurers’ corporate guidance
The International Association of Insurance Supervisors has published an Application Paper on Proactive Supervision of Corporate Governance. The paper sets out principles and practices to support supervisors in their...
FCA renews call for firms to prepare for Brexit
The FCA has published sector-specific information to help regulated firms ensure they are prepared for the consequences of Brexit, including a no-deal Brexit. The guidance covers banking and payments, life insurance...
EU agrees regulatory framework for investment firms
The Council and the European Parliament have agreed the terms of a regulation and directive setting out prudential and supervisory measures that will apply to investment firms. The new requirements will apply to the...
FCA welcomes MiFID 2 impact on research
Andrew Bailey has spoken to the European Independent Research Providers Association on the subject of MiFID 2. He noted one guiding principle of MiFID 2 is to ensure that portfolio managers act in the best interests of...
US and UK authorities agree measures to secure derivatives trading and clearing activities post-Brexit
The Bank of England, FCA and the US Commodity Futures Trading Commission (CFTC) have confirmed that they will ensure that firms will be able to continue engage in derivatives trading and clearing activities through the...
Revised Guidelines on outsourcing published by EBA
The EBA has published a revision to the Committee of European Banking Supervisors’ 2006 Guidelines on outsourcing arrangements. The revised guidelines take into account and are consistent with CRD IV, MiFID II...
FCA SETS OUT DETAILS ON POST BREXIT REGULATION OF CRAs
The FCA has updated its webpage on credit rating agencies (CRAs) in order to reflect the transitional provisions under the Credit Rating Agencies (Amendment etc) (EU Exit) Regulations 2019 (SI 2019/266) (CRA...
Court rules that Brexit is not frustrating event for a lease
The High Court has ruled that a European agency cannot terminate the lease of their premises at Canary Wharf on the basis of Brexit being a ‘frustrating event’. Our article provides more detail on this case...
The IA helps fund managers speak investors’ language
The Investment Association has published guidance that it hopes will help find managers explain technical terms to investors in a way they understand. The guidance both explains key terms and suggests areas where fund...
Commission prepares to review Solvency II
Under the Solvency II Directive, the Commission is required to review certain areas covered by the Directive by 2020. Accordingly, the Commission has sent EIOPA a formal request for technical advice on the review of the...
ESMA confirms three UK CCPs can be recognised to provide services to the EU
ESMA has announced that, in the event of a no-deal Brexit, LCH Limited, ICE Clear Europe Limited and LME Clear Limited will be recognised as equivalent. The confirmation of equivalence for the purposes of EMIR follows...
Keep UCITS KIID for MOPs for longer, says industry
Insurance Europe and EFAMA are calling for an extension to the date on which PRIIPs KIDS must be produced for multi-option products. Currently, where a UCITS KIID has been produced for underlying funds, insurers and...
Bank of England publishes Financial Markets Infrastructures Annual Report and supporting video
In its capacity as supervisor of financial market infrastructure (FMI) firms, the Bank of England has published its Annual Report, providing an overview this sector in 2018 and future developments and priorities for...
PRA updates fees position
PRA has issued its feedback statement, new rules and a new supervisory statement on certain aspects of its periodic and transaction fees. Its update covers: a revised approach to periodic fees for Designated Investment...
Financial Stability Board 2019 work programme published
The Financial Stability Board has published its work programme for the forthcoming year. The areas upon which it intends to focus are: addressing emerging vulnerabilities in the financial system; working with standard...
EU reaches political agreement on EMIR Refit
After nearly 2 years of negotiation, the European Parliament and Member States have agreed a targeted reform of EMIR. The Commission wanted to provide simpler and more proportionate rules, and the changes will exempt...
Treasury lays Brexit FS SI before Parliament
Treasury has laid before Parliament the Financial Services (Miscellaneous)(Amendment)(EU Exit) Regulations 2019. The wide-ranging instrument amends several pieces of UK and retained EU law relating to financial...
ESMA issues statement on derivatives reporting upon ‘no deal’ Brexit
ESMA has published information on how derivatives data that must be reported under EMIR should be handled in the event of a ‘no deal’ Brexit. ESMA’s statement sets out expectations in relation to:...
FCA publishes call to action for firms to prepare for no-deal Brexit
Under draft legislation published by the Treasury, the FCA and the PRA are to be given temporary powers to make transitional provisions, in order to ensure that most firms and other regulated entities’ day to day...
FCA agrees Brexit MoUs with European securities regulators
As part of the preparation for a ‘no-deal’ Brexit, the FCA has agreed MoUs with ESMA and with EU and NCAs, covering supervision, enforcement and information exchange, including in relation to credit rating...
BoE and ESMA agree MoU
As part of the Brexit preparations, the BoE and ESMA have published an MoU setting out cooperation and information-sharing arrangements in relation to CCPs and CSDs. This agreement, and the adoption by the EC of...
ESMA publishes 2019 Regulatory Work Programme
ESMA has published its Regulatory Work Programme for 2019, setting out ESMA’s Single Rulebook work. The matters it is working on for the forthcoming year include: Post-trading RTS under EMIR; RTS relating to...
FCA publishes updated rules and guidance for fund managers
As part of its follow up work to its asset management market study, the FCA has published new rules and guidance to help asset managers and customers understand more about how funds are being managed. The new provisions...
European venture capital funds & social entrepreneurship funds delegated regulations published
The European Commission has adopted delegated regulations under the EuSEF Regulation (346/2013) and the EuVECA Regulation (345/2013). These Regulations respectively introduced measures to allow venture capital funds to...
FCA updates MiFID expectations
FCA has set out how it proposes to use its temporary powers under the draft legislation Treasury has put forward. It plans in principle to make transitional measures that will ensure that firms do not need to prepare...
Regulators consult on FSCS MELL
FCA and PRA are consulting on the management expenses levy limit (MELL) for FSCS for the 2019/2020 year. They propose an increase of 2.4% over the current year with a levy for FSCS management expenses of £74.6m and an...
FCA and FRC focus on encouraging effective stewardship
The FCA is working with the the FRC to set out proposals and a discussion paper encouraging asset managers and others managing investments to take a closer interest in the operation of the businesses in which they...
FCA gives NPPR guidance
FCA has provided some further guidance to help firms filling in the NPPR forms.
EIOPA calls for improvements to the assessment of the propriety of AMSB members
On 25 January 2019 EIOPA published findings of its peer review, which examined how national competent authorities (NCAs) assess the propriety of administrative, management or supervisory body (AMSB) members and...
CMA updates investment consultancy implementation timetable
CMA has published its administrative timetable for implementation of the investment consultancy and fiduciary management market remedies. There will be: Consultation on the draft Order in February; Notification to the...
FMLC writes to Treasury on Brexit regulations
FMLC has written to Treasury with its key observations on the FSMA (EU Exit) Regulations. The Committee is concerned at some wording proposed in relation to the financial promotion rules. Specifically, FCA has power to...
Treasury Committee launches post-Brexit FS inquiry
The Treasury Committee has started a new inquiry looking at financial services in the UK after Brexit. Its focus is to look at: what the UK’s financial services priorities should be when negotiating the UK’s...
Treasury writes to Treasury Committee on no-deal planning law
The Treasury has written to the Treasury Committee enclosing a draft of secondary legislation that would give temporary transitional powers to the UK financial regulators in the event of a no-deal Brexit that would...
ISDA updates Brexit FAQs
ISDA has published an updated webpage with FAQs on the impact of Brexit on ISDA documentation.
FCA Cryptoassets consultation published
The FCA is consulting on draft guidance on activities that the FCA regulates in this area. Noting that this is an area in which investor activity is on the increase, and where there is still uncertainty about where the...
FCA to look at product governance and research unbundling
A set of oral evidence given to the Treasury Committee includes statements from FCA that: it is now content on how to interpret the mortgage affordability test compliantly with the MCD and now plans to consult on...
New FCA portal for mutual societies
The FCA has launched a new portal to enable mutual societies complete tasks and submit information to the FCA that was previously done online or by post, such as the submission of annual rules and accounts and...
FCA publishes sector views
FCA has published its “Sector Views” setting out its observations from monitoring its 7 selected sectors of: retail banking retail lending general insurance and protection pensions and retirement income...
FCA ‘Dear CEO’ letter on misleading financial promotions
The FCA has published a ‘Dear CEO’ letter in which it provides clarity about the communication and approval of financial promotions by regulated and unregulated businesses. The FCA has published the letter...
Council agrees investment firms prudential standards change
The EU Council has confirmed its position on the compromise proposals on a package of changes to the CRR/CRD4 , comprising a Regulation and a Directive, to allow prudential and supervisory requirements to be...
FCA consults on Brexit contractual continuity provision
At the end of last year, the the Treasury published draft regulations making provision for contractual certainty for firms currently passporting into the UK in the event of a ‘hard’ Brexit. Following this...
FCA opens temporary permissions notification window
FCA has opened the notification window for passporting-in firms. Firms will need to have notified FCA of their intention to seek full UK authorisation to carry on services in the UK before exit day in the event of a...
Up next from FCA
FCA’s latest Policy Development Update highlights a number of publications due before the end of Q1 2019: a policy statement on general standards and communication rules for payment services and emoney providers;...
ESMA updates MiFID 2 FAQs
ESMA has updated its FAQs on MiFID 2 and MiFIR in respect of: transparency; and commodity derivatives. The updated questions cover, among other things, publication of request for market data transactions and the...
Swiss equivalence decision published in OJ
The Commission Implementing Regulation on the equivalence of the Swiss regulatory framework for stock exchanges for the purposes of MiFID 2 has been published in the OJEU and applies from 1 January 2019. The SIX Swiss...
FCA opens window for CMCs to register for temporary permission
In December 2018, the FCA confirmed that as part of its take over of the regulation of CMCs from April 2019, it would require CMCs to register for temporary permission in order to continue to operate from April, and...
ESMA renews CFD restrictions
ESMA is to renew the current restrictions on the marketing, distribution or sale of CFDs to retail clients for a further three months from February 2019.