FCA has fined a compliance oversight officer for failure to exercise due skill, care and diligence while working at two firms specialising in pension transfers (one of which was transferred to the other). It fined David...
Category - Investments
Emma RadmoreUp next from FCA
FCA’s latest policy development update includes: second consultation on the IDD due in July, with a policy statement on the first consultation due in September; consultation on current account services in July and...
FMLC looks at Brexit third country issues
The Financial Markets Law Committee has published its views on the legal uncertainties related to the future classification of the UK as a third country in respect of the EU. The purpose of the paper is not to make...
PRA issues consultation paper on Pillar 2 Liquidity
PRA has published Consultation Paper CP13/17 on Pillar 2 liquidity which includes the following proposals: for a cash flow mismatch risk (CFMR) and other PRA methodologies for assessing firms’ liquidity risk; A new...
FIN. TeamFSCS annual report and accounts 2016/17: compensation costs total £375m
FSCS has published its annual report and accounts and annual report and class statements 2016/17, which set out its vision and strategy. The publications detail that FSCS paid out for over 37,000 claims 2016/17 in the...
Brexit: European Union (Withdrawal) Bill presented to Parliament
The Government presented the European Union (Withdrawal) Bill to Parliament on 13 July for its first reading. The Bill seeks to repeal the European Communities Act 1972 on the day when the UK leaves the European Union...
ESMA publishes sectoral convergence opinions
ESMA has published, as promised, its set of sector-specific opinions on relocations from the UK to the EU27 following Brexit. The opinions cover investment firms, investment management and secondary markets. In each...
ESMA consults on MiFID 2 suitability requirements
ESMA is consulting on guidelines on certain aspects of the MiFID 2 suitability requirements. ESMA wants to build on existing guidelines to: take account of technological innovations including the move to robo-advice;...
PRA publishes new consultation on pillar 2a capital requirements and disclosure
On Wednesday 12 July the PRA published CP12/17 ‘Pillar 2A capital requirements and disclosure, that sets out proposed adjustments to the PRA’s Pillar 2A capital framework. It is relevant to all banks...
FCA publishes retirement income report
FCA has published the interim report on its retirement outcomes review, in which it looks at how the retirement income market has evolved since introduction of the pension freedoms. FCA’s findings to date have...
ESMA publishes guidelines on cooperation between authorities under the Central Securities Depositories Regulation
ESMA has today published guidelines (the Guidelines) to ensure that competent authorities (CAs) apply the Central Securities Depositories Regulation (CSDR) in a consistent, efficient and effective supervisory manner...
Council agrees Commission suggestions on CMU
The Council of the EU has renewed its support for the CMU action plan, and agreed with many of the priority initiatives the Commission has put forward. It will focus on sustainable finance and financial technology.
ESMA writes to Commission on third-country regimes
ESMA has written to the European Commission setting out how existing third-country regimes could be improved. While not ostensibly about Brexit, the letter refers to the increased number of market infrastructures and...
ESMA updates Q&As on MiFID II and MiFIR investor protection and intermediaries topics
ESMA has today updated its Q&A topics on best execution and recording of telephone conversations and electronic communications. Best execution MiFID II requires investment firms to take all sufficient steps to...
Examining product governance guidelines under MiFID II
The product governance guidelines under MiFID II are part of the regulatory framework aimed at protecting investors across the EEA. ESMA published its final report on the guidelines on 2 June 2017. Bond Dickinson has...
MiFID 2 implementation update
We have written an article on the current state of play of MiFID 2 implementation in the UK, including a detailed summary of FCA’s final rules.
ESMA updates MiFID 2 FAQ
ESMA has updated its set of FAQs under MiFID 2 to include new guidance on: commodity derivatives position limits and position reporting market data issues and market structure issues on multilateral trading systems...
EBA calls for evidence from investment firms
EBA has started a supplementary data collection exercise aimed at supporting a response to the European Commission’s call for evidence to help it shape the new prudential framework for investment firms. EBA...
FSB updates on compensation standards implementation
FSB has published a progress report on implementation of its compensation standards. The standards were published in 2009 in the immediate aftermath of the financial crisis. Now, almost all member jurisdictions have...
FSB updates on misconduct risk management
The Financial Stability Board has published a progress report for the G20 on its work plan to reduce misconduct in the financial sector. The plan includes: measures to strengthen governance frameworks – FSB is...
FSB publishes report on action plan to address decline in correspondent banking
By way of update to the G20 leaders, the FSB published a report on its action plan to assess and address the decline in correspondent banking (CB). In November 2015, the FSB published a four point action plan to assess...
FCA publishes annual report
FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s...
Commission publishes PRIIPs KID guidelines
The Commission has published draft guidelines on the PRIIPs KID. The guidelines aim to promote consistency by smoothing out areas of potential divergences in interpretation. Questions the guidelines address (although...
Treasury publishes financial guidance responses
Treasury has published the responses it received to its consultation on creating a single financial guidance body. The new body has now been legislated for under the Financial Guidance and Claims Bill and will: be a non...
ESMA publishes updated ancillary test opinion
ESMA has published and then updated its opinion on the ancillary test for commodity derivatives under MiFID 2. The update relates only to a typo in the original. The opinion sets out ESMA’s views on how to...
ESMA updates MAR FAQs
ESMA has updated its FAQs on MAR to include new questions on:
persons closely associated to a PDMR;
blanket cancellation of orders policies; and
disclosure of inside information relating to Pillar II requirements.
ESMA issues transparency calculations for non – equity instruments in readiness for MiFID2
MiFID 2 / MiFIR introduces transparency requirements for equity and non-equity instruments and allows competent authorities to waive the obligation for market operators and investment firms operating a trading venue...
EBA launches consultation on implementation of EBA Guidelines on methods for calculating contributions to DGSs
Article 13(3) of the Deposit Guarantee Schemes Directive (DGSD) requires the EBA to issue guidelines on methods for calculating DGS contributions by 3 July 2015, to ensure that the DGSD is consistently implemented in...
Insurance Europe publishes PRIIPs information exchange templates
Insurance Europe has published the following templates in relation to the PRIIPS regulation: The European PRIIPs template, which includes the minimum data necessary for insurers to produce a KID; and The...
Prospectus Regulation in OJ
The new Prospectus Regulation has been published in the OJ. It will apply from 21 July 2019, although some parts will apply earlier.
FCA makes key MiFID 2 rules
On the deadline of 3 July, FCA has made its final rules implementing many aspects of MiFID 2. Its second feedback statement includes its response to consultation on amendments to PERG CASS complaints handling...
ESMA prepares for speculative product control
ESMA has published a statement setting out what it is doing in relation to sales of CFDs, binary options and speculative products to retail investors. It feels that its guidance and FAQs published to date have not led...
WFE encouraged by Commission consultation on FinTech
The World Federation of Exchanges said it was encouraged by the Commission’s consultation on FinTech as it believed that it was important to get policy right in this area to avoid the rush to regulate. These...
FCA updates on FAMR
FCA has announced the names of the 17 firms who have to date participated in its advice unit . There have been two cohorts of firms, representing deposit-takers, pension firms, IFAs and wealth managers and has included...
FCA disappointed on CFD TCF
FCA has published its review of appropriateness assessments firms make when selling CFD products. The review followed last year’s dear CEO letter which asked firms to consider whether their client take on...
ILS regulations expected to come into force in the autumn
In a letter dated 26 June 2017, HM Treasury has written to the London Market Group (LMG) regarding the Group’s response to the Government’s Insurance Linked Securities (ILS) Project. The Treasury confirmed...
Financial Guidance and Claims Bill in Parliament
The Financial Guidance and Claims Bill has been introduced into Parliament and has had its first reading in the House of Lords. The Bill delivers on the promises in the Queen’s Speech to set up a new financial...
FCA looks at competition and investment consultancy
FCA had made a provisional decision to make a market investigation reference of investment consultancy services. In February, three major providers of these services offered undertakings in lieu (UIL) for FCA to...
fca publishes asset management market study final report and consultation paper
FCA has published the final findings of its asset management market study. As part of this, FCA set out a package of remedies to address the concerns identified. Alongside the market study, FCA has published...
ESMA issues MiFID 2 trading halt guidelines
ESMA has published its final guidelines on trading halts under MiFID 2. The guidelines calibrate trading halts and provide guidance for regulated markets on how the calibration works and the information and reporting...
FCA confirms ban on choice restrictions in investment banking
FCA has published its policy statement and new rules banning firms from including within their customer documentation contractual clauses restricting competition without clear benefit to their clients. In particular...
Treasury makes MiFID 2 Regulations
Treasury has made the FSMA (Markets in Financial Instruments) Regulations 2017 which make changes to FSMA and other primary and secondary legislation to make the legislative amendments necessary to implement MiFID 2...
DRSP forms published in OJ
The ITS on standard forms, templates and procedures for DSRP authorisation under MiFID 2 have been published in the OJ.
FCA makes new rules
FCA made 4 new rules instruments at its June Board meeting. new fees rules taking effect from 3 July, to raise fees and levies to provide funding for the FOS and MAS to meet their statutory objectives, and to raise...
Implementing Regulation on standard forms for DRSPs under MiFID 2 published in the OJ
Commission Implementing Regulation (EU) 2017/1110 of 22 June 2017 laying down implementing technical standards regarding standard forms, templates and procedures for the authorisation of DRSPs and related notifications...
Commission publishes more MiFID 2 ITS
The ITS under MiFID 2 on the format of position reports have been published in the OJ.
FCA consults on pension transfer advice
FCA is consulting on changes to its rules on advice relating to pension transfers, with a particular focus on transfers from defined benefit to defined contribution schemes. The changes seek to ensure consumers get...
Chancellor makes Mansion House Speech
Philip Hammond has given the delayed Mansion House speech. He spoke of the Government’s priorities and its commitment to delivering better public services, higher real wages and increased living standards through...
John Griffith – Jones leaving the FCA
John Griffith – Jones has confirmed that he will leave both the FCA and the PSR at the end of his term of office on 31 March 2018.
IOSCO reports on order routing incentives
IOSCO has published a report looking at supervisory practices relating to incentives for order routing. It considers how different jurisdictions require firms to manage conflicts associated with routing orders and best...
ESMA consults on MiFIR trading obligation RTS
ESMA is consulting on its draft technical standards specifying the trading obligation for derivatives under MiFIR. It has revised its previous approach, and now wants comments by 31 July on the new proposals. These...
Commission publishes more MiFID 2 standards
The RTS under MiFID 2 on information to be notified by investment firms, market operators and credit institutions when applying for a MiFID 2 passport has been published in the OJ. The RTS include the information...
FCA says “get your MiFID 2 applications in now”
FCA has reminded firms that they need to submit applications for authorisation and variations of permission related to MiFID 2 by 3 July, to enable FCA to consider them before 3 January 2018. If an application is not...
BOE speaks on effects of ring-fencing for customers
In a speech by James Proudman (Executive Director, UK Deposit Takers Supervision, Prudential Regulation Authority, Bank of England), it was discussed that the key component of the ring-fence is to provide...
ESMA publishes annual report
ESMA’s annual report for 2016 focusses on its activities in: assessing risks to investors, markets and stability; creating a single rulebook; promoting supervisory convergence; and supervising credit rating...
FCA updates on sandbox
FCA has updated information on its regulatory sandbox. It says the sandbox’s popularity is increasing and larger numbers of firms both applied for and were accepted for testing in cohort 2. FCA has named the 24...
FOS publishes annual review
FOS has published its annual review for 2016/17, a period which it described as ‘immensely demanding’. Similarly to previous years, FOS reported that much of its activity focused on PPI...
Up next from FCA
FCA’s latest policy development update provides information on its recent and upcoming publications. Only one key publication is shown as scheduled for June – a policy statement on enhancing conduct of...
FCA publishes pensions lifestyle strategy review
FCA has published the findings from its review of life insurers’ pension lifestyle investment strategies. It had asked 13 insurers what their approach was to these strategies in the light of the 2015 pension...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes changes to: TC to update the list of appropriate qualifications; SUP to clarify how the requirement to have a client assets report applies to loan-based crowdfunding...
Commission makes MiFID 2 ITS
The Commission has made some of the outstanding technical standards under MiFID 2, and these have been published in the OJEU: ITS on standard forms, templates and procedures for supervisory co-operation; ITS on standard...
ESMA speaks on priorities and Brexit.
Steven Maijoor has spoken to the FIA on ESMA’s current work, including its preparations for MiFID 2. He stressed that there will be no further delay in implementation. He referenced ESMA’s recent and ongoing...
ESMA responds on Fintech
ESMA has responded to the Commission’s consultation on Fintech. It sees Fintech as a positive evolution so long as business models continue to aim to improve the customer experience and financial inclusion. It...
ECON publishes draft retail FS plan
The EP has published a draft report on the Action Plan for retail financial services. The report: says the EU retail financial services market is still underdeveloped and fragmented, but recognises that such a market...
FCA looks at dividend arbitrage
FCA’s latest MarketWatch newsletter sets out the results of its review of dividend arbitrage, a process which involves placing shares in alternative tax jurisdictions around dividend dates, with the intention of...
ESMA finalises product governance guidelines
ESMA has published its final report on product governance guidelines under MiFID 2. It received over 100 responses to its consultation on the guidelines, which were generally supportive. However, ESMA has made some...
ESMA updates MiFID 2 FAQs
ESMA has updated its set of FAQs on MiFID 2 to address issues relating to market structures, commodity derivatives and transparency. It has also published its opinion on transparency and position limit regimes for...
ESMA sets out principles for regulating migrating UK firms
ESMA has published a set of principles that the regulators in the “EU27” should follow when assessing applications from UK institutions seeking an EU authorisation post-Brexit. Key principles include: that...
New Prospectus Regulation
We have written a summary of the Prospectus Regulation as adopted by the EU Council on 16 May.
Why banks are partnering with fintechs
Bond Dickinson’s new economic study looks at the volume of investment by financial institutions in UK SMEs. It found financial services is far ahead of any other UK industry. The report looks at volumes of...
ASA says fx ad breaches Code
The ASA has found a TV advertisement for online CFD trading breached the BCAP Code in respect of social responsibility. The advert showed a young adult waking up and looking at his tablet which showed a falling exchange...
ESMA reports on fair, clear and not misleading information supervision
ESMA has published a report following up on its criticisms of how certain national regulators were supervising compliance with the MiFID rules on fair, clear and not misleading information. ESMA had identified 10...
EBA consults on outsourcing to the cloud
EBA is consulting on regulatory expectations when firms outsource to the cloud. It wants to identify a set of key principles that all credit institutions and investment firms should follow, and which all regulators...
ESMA speaks on Regtech
ESMA has spoken on how the financial services industry has adopted Regtech. Patrick Armstrong looked at the changes in how we work that have been subject to almost constant change in the past 10 years. Yet, he said...
FCA publishes assessing suitability review
FCA has published the findings of its review into the suitability of advice given by firms on pensions and investments. The review started a year ago, and assessed over 1,000 pieces of advice given by 650 firms for...
EP adopts Fintech resolution
The EP has adopted a resolution on the influence of technology on the financial sector. The provisional version of the resolution focuses on the rapid development of applications of fintech technologies and notes that...
FCA updates on PRIIPs
FCA has updated its website with examples of products it considers will, and will not, be PRIIPs, and explaining the duties of manufacturers, distributors and advisers in relation to them.
FCA and SFC to co-operate on Fintech
FCA and the Hong Kong Securities and Futures Commission have signed a MoU to co-operate with each other on information sharing and referrals of innovative firms wanting to enter each other’s markets. This is the...
Compliance Register Summit 21 June
Emma Radmore will be presenting the opening address on a MiFID 2 update at the Compliance Register’s Regulatory Summit on 21 June.
FCA updates on qualifications
FCA has published a Policy Statement setting out its final updated appropriate exam standards for qualifications listed in TC. It has now published the updated list with guidance and more easily navigable tables.
Up next from FCA
FCA’s latest Policy Development Newsletter promises only a policy statement on enhancing COB rules for firms providing CFDs to retail clients following before the end of June. Many other papers are due later in...
FCA makes PRIIPs disclosure rules
FCA has made the rules that will change disclosure requirements on application of the PRIIPs Regulation, which should be from 1 January 2018. FCA has provided as much clarity and certainty as it can, to help firms...
PRA makes MiFID 2 rules and opens for notifications
PRA has published its policy statement with relevant supervisory statements and rule changes in relation to MiFID 2 implementation. The changes: introduce new PRA rules to implement the MiFID 2 requirements on the...
EIOPA publishes thematic review on monetary incentives and remuneration between insurers and providers of asset management services
EIOPA has published its thematic review on consumer protection issues in the unit-linked market emerging from the business relations between providers of asset management services and insurance undertakings. The review...
FCA publishes first new-form complaints data
FCA has published the first set of complaints data (covering the second half of 2016) that firms have reported since last year’s rule changes that give firms 3 days to address a complaint to a consumer’s...
Commission speaks on FS policy
Valdis Dombrobskis has spoken on the challenges for EU financial services policy. He noted that the positivity of the European economic recovery is tempered by uneven progress across Member States, even before the...
FCA publishes Mission Statement and Business Plan
FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA...
PRIIPS RTS in OJEU
The RTS on the presentation, content, review and revision of the PRIIPs KID have been published in the OJEU and will take effect from 2 May.
FCA looks at consumer behaviour and advertising
FCA has published an occasional paper that looks at the behaviour of consumers and the consequences it has on their reaction to financial promotions. The paper considers: how consumers will look for and find promotions...
FCA updates on conduct risk priorities
FCA has published a series of new webpages following its annual conduct meetings with the largest firms in the regulated community. It asks the largest wholesale banks the following 5 conduct questions: What proactive...
FSCS confirms £363m levy for 2017/18
FSCS has announced its levy for 2017/18. The £363m is less than forecast in the FSCS’ 2017/18 Plan and Budget in January, but more than the 2016/17 levy. The 2017/18 levy includes: no change to the £100m levy on...
fca issues Financial Advice Market Review progress report
FCA has published the Progress Report reporting on the progress towards implementing the FAMR recommendations. The FAMR final report set out 28 recommendations which are addressed in the progress report. The Financial...
FCA speaks on the next phase of Project Innovate
On 10 April 2017, Christopher Woolard, the FCA’s Executive Director of Strategy and Competition delivered a speech at the Innovate Finance Global Summit in London. The speech considers the work of the FCA’s...
FCA publishes discussion paper on distributed ledger technology
The FCA has published a discussion paper on distributed ledger technology (DLT). The discussion paper describes DLT and acknowledges blockchain as a type of DLT. The FCA invites a discussion on two sets of issues: What...
PRA asks firms to provide Brexit contingency plans
Sam Woods, the PRA’s CEO, has published a letter seeking contingency plans from firms in light of the UK’s impending withdrawal from the EU. The letter is relevant to banks, insurers and designated investment...
EP agrees PRIIPs KID RTS
The European Parliament has published its decision not to object to the draft revised RTS on presentation, content, review and revision of the KID for PRIIPs.
HMT issues regulatory innovation plan
The government’s vision is for UK financial services to be the most competitive and innovative in the world, supplementing existing services with greater choice and value for consumers. The innovation plan covers how...
Article on FCA “near final” MiFID 2 rules
We have written a detailed summary of FCA’s “near final” rules and new MiFID 2 consultation.
FOS updates on plans and caseload
FOS’ latest Ombudsman news highlights its plans for the year ahead and current statistics. Its case updates focus on complaints where mistakes or misunderstandings led to consumer loss, and where financial...
ESMA looks at MiFID 2 investor protection
ESMA has added 10 new questions to its Q&As on investor protection under MiFID 2 and MiFIR. The new questions cover: timing requirements for execution reports; how to report when orders are sent for execution to...