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...
Category - Uncategorized
Emma RadmoreFSB 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...
Emma RadmorePolicy and Supervisory Statements on climate change financial risks published
The PRA has published PS11/19 and SS3/19 on ‘Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change’. These statements are intended to steer firms towards...
Treasury presses on with MLD5 implementation
HMT has opened a consultation on the implementation of MLD5. Treasury proposes a number of changes to UK law, and seeks views on its proposals in several areas. Aspects of MLD5 addressed in the consultation include:...
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...
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...
FIN. TeamSenior bankers sentenced for manipulating EURIBOR rate
The Senior Fraud Office (SFO) announced that 2 former senior bankers at Barclays, Carlo Palombo and Colin Bermingham, were sentenced to a total of 9 years imprisonment at Southwark Crown Court for manipulating the Euro...
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...
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...
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...
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.
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 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...
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...
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...
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...
ESMA briefs on non-EU branches
ESMA has published a supervisory briefing aimed at helping supervisors dealing with non-EU branches of EU firms. It highlights how the supervisors should ensure that the non-EU branch can comply with the requirements of...
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...
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...
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...
ISDA updates Brexit FAQs
ISDA has published an updated webpage with FAQs on the impact of Brexit on ISDA documentation.
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...
Treasury Committee publishes SME reports
In October, the Treasury Committee reported on SME finance, making several recommendations including setting out its views on the availability of FOS and the Tribunal for SME disputes, and the suggestion that commercial...
PRA plans CRM eligibility clarification
PRA is proposing changes to its Supervisory Statement on credit risk mitigation, to clarify how financial collateral is eligible as funded credit protection under the CRR. The CRR sets criteria for recognising...
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...
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;...
FCA EVALUATION ON REDUCING BARRIERS TO ENTRY INTO THE UK BANKING SECTOR
The FCA has published an evaluation paper on reducing barriers to entry into the UK banking sector. In its paper, the FCA evaluates the impact that the 2013 reforms to the authorisations process and a shift in approach...
PRA consults on Brexit measures
As part of its preparation for onshoring EU legislation, the PRA has published CP32/18. This consultation paper contains two consultations: the first sets out the PRA’s proposals regarding the PRA Rulebook and...
Bank of England and PRA consult on resolvability measures
The BoE and the PRA have published consultation papers on resolvability and resolution assessments for certain firms. PRA CP31/18 sets out proposed rules that would require relevant firms to report to the PRA on their...
EBA and ESMA urge firms to communicate with customers regarding Brexit
The EBA has issued a press release that urges firms with customers that may be affected by Brexit to be more proactive in communicating with their customers about how they may be affected. In particular customers...
FCA publishes final rules on expansion of FOS jurisdiction to SMEs
The FCA has now published final rules confirming the expansion of the jurisdiction of the FOS to include certain SME customers. The new rules will mean that from 1 April 2019, the FOS will be able to hear complaints...
New Corporate Governance Principles published
The Financial Reporting Council has published the final version of new Corporate Governance Principles for large private companies.
We have published an article that summarises and discusses these Principles.
Suzanne GadoPRA updates systemic risk buffer policy
PRA has updated its Policy Statement relating to the Systemic Risk Buffer. The update follows consultation in response to which it received no comments.
FCA reports on cyber review findings
FCA has published the results of its study of cyber-resilience and security in 20 asset management and wholesale banking firms. Its review comprised firms of varying size, scale, operating models and geography. The...
EC Review of the Distance Marketing Directive
The European Commission has launched a review of the Distance Marketing Directive (DMD) to assess whether it is relevant, effective, efficient, and in line with other EU legislation. The review follows an announcement...
Provisional political agreement reached on CRD V
The European Parliament and the Council of the European Union have reached a provisional political agreement on the banking package of reforms that will result in CRD V/ CRR II. Proposed measures include more risk...
BIS publishes cyber resilience report
BIS has published a report on range of practices relating to cyber resilience. The report focuses on four areas of cyber resilience: governance and culture risk measurement and assessment of preparedness (both in...
CMA Consults on Annual Plan 2019/2020
The Competition and Markets Authority (CMA) is consulting on its proposed Annual Plan, which sets out its plans and priorities for 2019 to 2020. Subject to the outcome of the Brexit negotiations, the CMA plans to give...
ECB publishes cyber resilience expectations
ECB has published its expectations on financial market infrastructures in terms of cyber resilience oversight. Its expectations are based on CPMI/IOSCO guidance and is aimed at providing the FMIs with clear steps on how...
Treasury Committee publishes Withdrawal Agreement analyses
The Treasury Committee has published the Bank of England’s analysis of the Withdrawal Agreement and Political Declaration. The lengthy document explains how the reduction in openness with reduce the UK...
BoE publishes Financial Stability Report and stress test results
BoE has published its latest Financial Stability Report together with the results of the 2018 Stress Tests. The Financial Stability Report found that the UK financial system has good resilience to a range of risks...
FCA publishes approach to authorisation and feedback statement
Following a consultation last year, the FCA has published the ‘FCA Mission: Approach to Authorisation’ and feedback statement. This document includes reference to the introduction of a new range of tools to...
Brexit Bill and policy note covering in-flight legislation published
As part of the preparation for a ‘hard’ Brexit, the Treasury has published a Policy Note that accompanies a draft Bill covering in-flight financial services legislation, currently progressing through...
DExEU publishes draft political declaration
On 22 November 2018, DExEU published the Draft Political Declaration setting out the framework for the future relationship between the United Kingdom and the European Union (“Draft Declaration“). The Draft...
Treasury announces more details on its approach to onshoring financial services legislation
On 22 November 2018, Treasury announced it was developing a draft SI for MAR. It proposes that the SI will address: the scope of the regulation; transaction reporting; notification requirements; transfer of functions;...
Working Group publishes pack on LIBOR transition
The Working Group on Sterling Risk-Free Reference Rates (Working Group) has published a communication pack entitled ‘Preparing for 2022: what you need to know about LIBOR transition’. The pack is designed to...
FCA consults on fees and levies
FCA is consulting on policy proposals for its proposed regulatory fees and levies for 2019/2020. Among the proposed changes is a plan to streamline the process of setting consumer credit fees by exemption community...
DexEU announces Brexit progress
The Department for Exiting the EU published a press statement alongside the announcement on 14 November that the UK and EU negotiating teams had reached an “in principle” agreement on the Withdrawal...
ESMA publishes updated Q&As
ESMA has updated its Q&As on MiFID II and MiFIR, and on the Short-Selling Regulation. The topics addressed by the MiFID II and MiFIR Q&As include making market structures and transparency issues. The Short...
ESMA publishes texts supporting the Securitisation Regulation
As part of the implementation of the Securities Regulation, which begins to apply from 1 January 2019, ESMA has published: draft regulatory and implementing standards on the contents of applications to register with...
Call for interest in new payment Standards Advisory Panel
The Bank of England and Pay.UK are inviting expressions of interest from senior stakeholders who could represent the payments industry on a newly created Standards Advisory Panel. The new Panel will focus on the...
PRA confirms process for submitting Temporary Permission Notification Forms
The PRA has issued a direction that confirms the process, including timings, for notifications by incoming EEA firms that wish to continue operating in the UK after Brexit (in the event of no applicable transitional...
EBA publishes stress test results
EBA has published the results of its 2018 EU-wide stress tests. This year’s test involved 48 banks from 15 countries and generally shows increased resilience and capacity to withstand the shocks the exercise...
Treasury Committee calls for SME lending to be brought within the regulatory perimeter
The Treasury Committee has published the Twenty-Fourth Report of Session 2017-2019 on SME Finance. The Committee highlighted the investigation into RBS’ Global Restructuring Group (GRG), and noted the FCA’s...
Bank of England communications on approach to financial services legislation under EU (Withdrawal) Act
The Bank of England has published a package of documents covering various aspects of contingency measures required in the event of there being no applicable Brexit transition period agreed. The publications include:...
EBA 2019 WORK PROGRAMME
The European Banking Authority (EBA) has published its work programme, setting out its main objectives, priorities and deliverables for 2019. The EBA’s 5 strategic areas for 2019 include to: lead the Basel III...
Further Brexit SIs published
HMT has published the latest set of Brexit transition draft and updated draft SIs to be made under the EU Withdrawal Act 2018 in the event of a ‘hard’ Brexit, and accompanying explanatory notes. These...
FSB holds its plenary meeting
The Financial Stability Board (FSB) has published a press release following its plenary meeting in Ottawa, in which it reviewed the financial vulnerabilities and deliverables for the G20 Summit. Points of interest...
PRA publishes Occasional Consultation Paper 24/18
The latest Occasional Consultation Paper from the PRA covers changes to the Rulebook, Supervisory Statements, Statements of Policy and Forms, in the following areas: Reporting – amendment to the Branch Return Form...
FCA evaluates bringing additional benchmarks into the regulatory and supervisory regime
FCA has today published Evaluation Paper 18/2 on the impact of bringing additional benchmarks into the regulatory and supervisory regime. The paper is the second of a new series of FCA evaluations on its past...
PRA consults on climate change supervisory statement
PRA is consulting on a draft supervisory statement setting out how it expects banks and insurers to manage the financial risks from climate change. The statement sets out how effective governance, risk management...
BoE publishes FPC minutes and confirms Brexit analysis
The FPC met on 3 October. At the meeting, it continued to assess the risks Brexit presents to the UK financial services sector, noting there had been considerable progress in the UK to address the risks, but not much in...
FCA consults on Statements of Responsibilities and Responsibilities Map guidance
The FCA has published a consultation on proposed guidance to help solo-regulated firms draft their Statements of Responsibilities (SoR) and (for enhanced firms) Responsibilities Maps, in preparation for the SMCR...
Treasury updates Brexit SIs
Treasury has published some new draft statutory instruments to be made under the EU (Withdrawal) Act, or announced plans to make them, and also updated existing drafts. New or updated documents include Regulations on :...
FCA publishes Brexit consultations following HMT Guidance
As heralded at the end of last year, the FCA has now published two consultation papers that make provision for operations in the event of a ‘hard’ Brexit next March. The first consultation sets out changes...
Treasury plans transitional regulatory tool
Treasury has set out its plans for a temporary transitional tool for the UK regulators to use that will enable them to phase in the requirements for UK firms that will change under the raft of onshoring legislation...
AFME publishes guidance on COBS
AFME has published guidance on financial analysts’ interaction with representatives of private companies and their financial advisers under the revised rules in COBS 12.2.21 which took effect in July. The change...
FCA speaks on crises
Charles Randell, speaking at AFME’s conference, highlighted the damage that a cycle of deregulation, crisis and regulation can do. He discussed in particular the risks of deregulation, or the choice not to apply...
MEPs back proportional rules for investment firms
MEPs from ECON have backed the Commission’s proposal for a proportionate regime for smaller, non-systemic investment firms. The proposals suggest that firms’ whose total average monthly assets over a 12...
EP publishes draft fund marketing report
The EP has published draft reports on the Commission’s proposals relating to fund marketing. The key concern of the rapporteur, Wolf Klinz, is that while it is a good idea to make pre-marketing to professional...
Dear CEO letter to firms on preparations for transition from LIBOR
The FCA and PRA have published a joint ‘Dear CEO’ letter sent to major banks and insurers supervised in the UK regarding the preparations and actions they have taken to manage the transition from the London...
FCA publishes direction on recognised overseas investment exchanges
The Treasury is not planning to include EEA market operators in the proposed arrangements enabling incoming firms and businesses to continue to operate immediately after Brexit. Accordingly if EEA market operators are...
European Parliament resolution on the relationships between the EU and third countries concerning financial services regulation and supervision
The European Parliament has voted in plenary to adopt a resolution on regulatory and supervisory relationships between EU and third countries. In addition, it published a provisional edition of the resolution. In...
Carney and Cunliffe to continue in post
Treasury and the BoE have announced that Mark Carney is to carry on in his role as Governor of the Bank until 31 January 2020, an extension of 7 months to his originally agreed term, while Sir Jon Cunliffe, deputy...
ESAs publish autumn report on risks and vulnerabilities in the EU financial system
The Joint Committee of the European Supervisory Authorities (ESAs) published its latest report on the risks and vulnerabilities in the EU financial system (JC 2018 34). The autumn report highlights the following risks...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation focuses on SUP. FCA proposes changes that will update the Gabriel validation rule and FCA guidance on the capital adequacy form for APIs, and update its supervisory principles...
Treasury updates Brexit draft laws
Treasury has published further drafts of Brexit-related statutory instruments: the EEA Passport Rights (Amendment, etc, and Transitional Provisions)(EU Exit) Regulations 2018 address the necessary amendments to...
FCA appoints new competition director
FCA has appointed Sheldon Mills, currently senior director of mergers and state aid at the CMA, as its new director of competition. He will take up the role in November.
ECON calls for equivalence reform
The Committee on Economic and Monetary Affairs has published a report on relationships between the EU and third countries on financial services regulation and supervision. The report calls for a Resolution requiring the...
Pakistan added to MLD4 high risk list
The European Commission has adopted a Delegated Regulation adding Pakistan to the list of high-risk third countries under MLD4. Member States will be bound to require application of EDD when dealing with any persons...
Treasury publishes CRR Brexit regulations
The latest draft Regulations anticipating Brexit relate to capital resources requirements. The draft Capital Requirements (Amendment)(EU Exit) Regulations 2018 are intended to make sure the CRR can continue to operate...
FCA consults on CMC costs and fees
FCA is consulting on how it proposes to set fees to recover its costs for setting up the regulatory regime for claims management companies and for ongoing supervision of the sector. The consultation covers fees under...
HM Government publishes Brexit Financial Services framework
The UK Government has published a presentation (dated 25 July) that sets out a proposed ‘Framework for the UK-EU partnership’, as part of the preparations by the UK Brexit negotiating team. This document...
Law Commission confirms status of electronic signatures
In December 2017 the Law Commission confirmed that one of the projects it would be working on was addressing the absence of explicit case law and legislation that has given rise to uncertainty as to the validity of...
FSB launches peer review of LEIs
The Financial Stability Board has published the Summary Terms of Reference of a thematic peer review of the implementation of the Legal Entity Identifier. The thematic review seeks feedback from a range of stakeholders...
FCA personal and business current account comparison rules come into force
New FCA rules requiring banks to publish information about personal and business current accounts came into force on 15 August 2018. The new rules cover standing data relating to account opening and service...
ECB publishes the latest version of its Supervision Letter
The European Central Bank (ECB) has published the latest edition of its Supervision Letter. The August edition includes a recording of an interview with Ed Sibley, Deputy Governor of the Central Bank of Ireland and ECB...
All-Party Parliamentary Group calls for full statutory inquiry into business banking sector
The Co-Chair of the All-Party Parliamentary Group on Fair Business Banking has written to Andrew Bailey of the FCA in the wake of the FCA’s announcement that it was unable to take further action in relation to its...
FCA Dear CEO Letter on cross border arrangements
The FCA has published a Dear CEO letter on cross border booking arrangements. In its letter, the FCA acknowledges that, in order to deal with the UK’s withdrawal from the EU, firms have put in place contingency...
EIOPA joins the Sustainable Insurance Forum
The European Insurance and Occupational Pensions Authority (EIOPA) has announced that it has become a member of the Sustainable Insurance Forum (SIF). The SIF is a network of insurance supervisors and regulators from...
ECB publishes draft regulation on money market statistics
The ECB has published a draft Regulation amending the Money Market Statistical Reporting (MMSR) Regulation. Since July 2016, the ECB has used the MMSR Regulation to collect data on the euro money market. In addition...
FMLC reports on financial contracts post-Brexit
FMLC has published a report looking at contract continuity post-Brexit and highlights the legal uncertainties that will continue if there is no clear agreement on the UK/EU relationship. The paper, which reprises many...
FCA confirms no action will be taken against RBS for treatment of SME customers
The FCA has published an update on its investigation into RBS’s treatment of small and medium-sized enterprise (SME) customers transferred to its Global Restructuring Group (GRG). The FCA commissioned...
ESMA updates product intervention FAQs
ESMA has updated its FAQs on the use of its temporary product intervention measures in respect of CFDs and binary options. New questions: state that turbo certificates are not within the scope of the CFD decision as...