EU ambassadors have confirmed, on behalf of the Council, that the transposition deadline for the IDD should be delayed until 1 July, and the application date to 1 October. The EP and Council, however, are not expected...
Category - Uncategorized
Emma RadmoreThe three ESAs warn consumers on the risk of virtual currencies
The three ESAs (consisting of the European Securities and Markets Authority, the European Banking Authority and the European Insurance and Occupational Pensions Authority) issued a warning to consumers on the high risks...
FIN. TeamThe standards of lending practice for personal customers review
The Lending Standards Boards (LSB) has announced that it intends to review the Standards of Lending Practice for personal customers (Standards). The LSB is seeking input from registered firms, industry bodies, consumer...
Insurance Europe publishes Brexit position papers
Insurance Europe has published two position papers relating to Brexit. The first paper discusses the need for a transitional arrangement, stating that such an arrangement is crucial for business continuity until legal...
Emma RadmoreESMA publishes 2018 Risk Assessment Work Programme
ESMA has published its Risk Assessment Work Programme for 2018, in which it establishes priorities for assessing securities market risks. ESMA will complement ongoing market monitoring through its semi-annual Report on...
Commission launches AIFMD survey
The European Commission is carrying out a survey on how the AIFMD has worked in practice and how it has met its objectives. Anyone can respond to the online survey.
FCA and ICO update on GDPR
An update from FCA and the ICO confirms FCA’s view that firms can comply with both the GDPR and its rules. The update notes that GDPR is a board level responsibility, and firms must produce evidence to show what...
FCA explains perimeter to Treasury Committee
Andrew Bailey has written to the Treasury Select Committee setting out a summary of the powers “FCA does not have”. It has been asked many questions in the context of the RBS GRG investigation. The letter...
ESMA updates MiFID 2 FAQ
ESMA has updated its Q&As on transparency and market structure issues under MiFID 2. The latest additions cover pre-trade transparency waivers.
MEPs agree MLD4 blacklist additions
MEPs have approved the proposal to add Tunisia, Sri Lanka and Trinidad and Tobago to the list of high-risk third country jurisdictions under MLD4. The vote passed the additions, despite continuing dissatisfaction among...
ESMA UPDATES Q&As
The European Securities and Markets Authority (ESMA) has issued updates of its Q&As on: the implementation of the European Markets Infrastructure Regulation (EMIR). The purpose of the document is to promote common...
FCA speech – The future of the city
On 5 February 2018, Andrew Bailey, FCA Chief Executive, delivered a speech, the Future of the City, which focuses on the transition to Brexit and the future of the UK regulatory regime. Key highlights include: the FCA...
FCA consults on implementation of EU Benchmarks Regulation
FCA has published a consultation paper on Handbook changes necessary as a result of the EU Benchmarks Regulation and the UK Benchmarks Regulations 2018. Specifically, it plans changes to DEPP and EG FCA proposes to...
PRA consults on changes relating to IDD commencement date
The PRA has published a consultation paper on amending the effective date of its rules implementing the IDD, in response to proposals from the European Commission to push IDD implementation back from 23 February 2018 to...
Treasury delays transposition of IDD until the application date is confirmed
The European Parliament and European Council are considering the proposal to delay the application date of IDD until 1 October 2018. The Treasury has updated its webpage to explain that it will delay making the...
EU Blockchain Observatory and Forum launched
The European Commission has announced the launch of an EU Blockchain Observatory and Forum. This aims to: highlight key developments in blockchain technology; promote European participants; and reinforce European...
FCA review of Board Effectiveness
The FCA has published a report of the independent review into the effectiveness of its Board. The review was undertaken by Independent Audit Limited. The review involved interviews with Board members, a review of...
EBA starts 2018 stress test
EBA has launched the 2018 stress test. It will cover 48 banks and EBA expects to publish the results in early November.
MEPs divided on ML high risk list
The Economics and Home Affairs Committees in the EP have voted through additions to the Commission’s MLD4 blacklist of high risk jurisdictions by the narrowest of margins. The proposal was to include Tunisia, Sri...
EIOPA revises work programme for 2018
The European Insurance and Occupational Pensions Authority (EIOPA) has published a revised version of its 2018 work programme, which was first published in September 2017. The revised version incorporates resources...
EBA writes to Commission on authentication RTS
The EBA has written to the European Commission following the Commission’s adoption of the RTS on strong customer authentication under PSD2. The EBA welcomes the adoption, appreciates the note the Commission took...
Chancellor writes to businesses on Brexit
Philip Hammond, together with David Davies and Greg Clarke, has written an open letter to businesses setting out what the UK wants to see in the post-Brexit implementation period. The letter says the Government is clear...
European Commission publishes report on implementation and impact of EMD2
The European Commission has published a report on the implementation and impact of the second Electronic Money Directive (EMD2). The report focuses on the application of prudential requirements for electronic money...
Commission finalises own funds adjustment RTS
The European Commission has finalised the RTS for procedures excluding transactions with NFCs established in third countries for the purposes of the own funds requirement for credit valuation adjustment risk. The RTS...
MLD4 high risk jurisdiction list in OJ
The Commission’s Delegated Regulation adding Ethiopia to its list of high risk countries under MLD4 has been published in the OJEU.
ESAs publish CDD opinion
The joint committee of the ESAs has published an opinion on the use of innovative solutions towards CDD. The opinion forms part of wider work on the “responsible and effective” use of innovation to enhance...
GDPR compliance: the final countdown
We have written an article on the final countdown to GDPR compliance.
FCA consults on widening FOS access for small businesses
FCA has opened a consultation on plans to provide more small businesses with access to FOS. The changes proposed would allow FOS complaints redress to approximately 16,000 SMEs, charities and trusts, by changing the...
The new Office for Professional Body Anti-Money Laundering Supervision established
The new regulator for anti-money laundering, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), was launched on 18 January 2018 thereby strengthening the UK’s anti-money laundering (AML)...
FCA publishes third policy statement on IDD implementation
FCA has published its third policy statement on IDD implementation, responding to feedback received on various consultations and providing near-final rules. In relation to life insurance distribution business, it covers...
ESMA updates transparency calculations for MiFID II/MiFIR
The European Securities and Markets Authority (ESMA) has published an extended version of MiFID II/MiFIR transitional transparency calculations (TTC) for equity and bond instruments. ESMA has added the applicable TTC...
The PRA postpones the introduction of its reporting proposals set out Pillar 2 liquidity consultation paper
The PRA has updates its webpage relating to its consultation paper on Pillar 2 liquidity (CP13/17). In its consultation paper, the PRA set out its proposals on a cash flow mismatch risk framework and other...
ECA’S REPORT ON THE OPERATIONAL EFFICIENCY OF THE ECB’S CRISIS MANAGEMENT FOR BANKS
On 16 January 2018, the European Court of Auditors (ECA) published a report on the operational efficiency of the European Central Bank’s (ECB) crisis management for banks. The report states that although the ECB...
PM meets FIs to talk Brexit
Theresa May has chaired a meeting of senior executives from a number of financial institutions to discuss the opportunities and challenges Brexit presents. She noted the UK’s aim of agreeing an implementation...
FCA fines and bans former RBS trader, Neil Danziger
The FCA has fined former Royal Bank of Scotland (RBS) interest rate derivatives trader, Neil Danziger, £250,000 and has prohibited him from performing any function in relation to any regulated financial activity. The...
FMLC publishes WTO Brexit views
FMLC has published a paper exploring the basis of UK trade with the EU following Brexit, and the interplay this will have with World Trade Organization (WTO) principles. As many commentators have noted, the basis of UK...
ESMA consults on draft Securitisation Regulation technical standards
The European Securities and Markets Authority has published three consultation papers on draft technical standards implementing the Securitisation Regulation that is expected to be published by the end of this year. The...
Treasury, FCA and EIOPA issue statements regarding continuity of activities and services after Brexit
Along with the PRA’s publication of consultation papers on its intended approach to supervision of third country firms, the Treasury, FCA and ESMA have recently issued statements providing an update on provision...
ESMA and FCA issue statements on LEIs
In advance of the implementation date for MiFID II on 3 January 2018, ESMA has issued a public statement that provides a form of 6 month transitional period for certain trading venues and certain legal persons, to...
European Commission publishes proposals regarding capital requirements for investment firms
The European Commission is proposing an overhaul of the prudential requirements for investment firms by bringing in a two track system. The largest, more systemically important firms will be subject to the same rules...
Opinion of the EBA on the transition from PSD1 to PSD2
The European Blanking authority (EBA) has published an opinion (EBA/Op/2017/16) on the transition from the Payment Services Directive (2007/64/EC) (PSD) to the revised Directive on payment services in the internal...
EC publishes proposal to delay IDD application date
The European Commission has today published a legislative proposal to push back the application date of IDD until 1 October 2018, at the request of the European Parliament and Member States. Member states will still be...
Payment Services Regulator requires change to Direct Debit rules regarding switching Facilities Management providers
The Payment Services Regulator (PSR) has published its decision to require the operator of the Bacs payment system, of which the Direct Debit scheme is a part, to change its rules to help clients switch Facilities...
EBA Discussion Paper – Implementation in the European Union of the revised market risk and counterparty credit risk frameworks
The European Banking Association (EBA) has published a discussion paper (EBA/DP/2017/04) on the EU implementation of the revised market risk and counterparty credit risk frameworks. The discussion paper focuses on the...
FCA statement on the EBA Guidelines on Operational and Security Risks under PSD2
In response to the European Banking Authority (EBA) Guidelines on Operational and Security Risks under PSD2, published on 12 December 2017, the FCA published a statement on its website reminding payment service...
Law Commission to address electronic signatures and smart contracts in 13th Programme of Law Reform
The Law Commission has announced the programme of reforms it will be working on over the next 3 years. The projects include: Electronic signatures: there is an absence of explicit case law or legislation confirming...
ESMA UPDATES ITS Q&As RELATING TO MIFID II
The European Securities and Markets Authority (ESMA) has today published updated versions on its Questions and Answers (Q&As) relating to topics under the MiFID II Directive (2014/65/EU) and the Markets in Financial...
Agreement on the EU proposals to prevent money laundering and terrorism financing reached
The European Parliament and the Council has announced they have reached a political agreement on the EU Commission’s proposal to further strengthen EU rules on anti-money laundering and counter terrorist financing...
UK Finance publishes MiFID 2 guidelines
UK Finance has published guidance for firms on product governance and retail costs and charges under MiFID 2. The guidelines on product governance look at the “target market” criteria, which include...
Treasury committee calls for urgent agreement on Brexit transition
The Treasury Committee has published a report which supports a time-limited “standstill” transition arrangement after the Brexit Article 50 negotiations are finished. It thinks it should be simple to...
Commission adopts MiFID 2 trading equivalence decisions
The Commission has recognised a number of trading venues in the US, Australia and Hong Kong as equivalent for the purposes of the MiFID 2/ MiFIR share trading obligation. This follows publication in the OJEU of the...
EBA publishes PSD2 security measures guidelines
EBA has published its final guidelines on security measures for operational and security risks of payment services required by PSD2. The guidelines require PSPs to have in place: an effective operational and security...
EIOPA publishes editable IPID template
EIOPA and the European Commission have developed an editable version of the IPID template. Under the IDD, the IPID is required to be provided for non-life insurance products to enable the customer to make a more...
PRA consults on internal models under Solvency 2
As part of its review into Solvency 2, PRA has published a consultation paper which proposes updated expectations of firms in respect of: the model change process set out in Supervisory Statement (SS) 12/16 ‘Solvency...
Complaints Commissioner recommends Register review
The Complaints Commissioner has rejected a complaint against FCA from complainants who suffered loss when a firm that had passported into the UK sold products that were outside its permission. The firm was a Cypriot...
FCA sets out future approach to authorisation and competition
FCA has outlined its approach to authorisation and to competition. It notes it is one of the few financial regulators in the world with an objective that includes promoting competition. It wants to understand, in...
FCA makes new rules
At FCA’s Board meeting on & December, it made several new rule instruments, covering (among other things), several changes to take effect from 3 January 2018: minor changes relating to MiFID 2 implementation...
Lloyd’s reacts to Brexit developments
Reacting to the news that the UK and EU are planning to move to the next phase of Brexit talks, Lloyds has released a press release stating that it is pleased that the Brexit talks can now enter the second phase...
ECB Transcript of the public hearing on the addendum to the ECB Guidance on non-performing loans
The European Central Bank (ECB) has published a transcript of the public hearing on the addendum to the ECB Guidance on non-performing loans, held on 30 November 2017 at the ECB’s main building premises in...
ECB approves major projects in the field of large-value payments and collateral management
The European Central Bank (ECB) has announced the approval of the consolidation of the Eurosystem’s real-gross settlement system TARGET2 and the securities settlement system platform TARGET2-Securities (T2S), as...
EBA’s speech on fintech and cloud in banking
The European Banking Authority (EBA) has published Slavka Eley’s, Head of Supervisory Convergence Unit at the EBA, speech given at the EBF Cloud banking Conference. Slavka Eley’s speech covered three aspects...
Compliance Trainer award – thank you!
Thank you to all of our FIN readers who nominated us for awards at the Compliance Register Platinum Awards 2017. Emma was delighted to retain her award for “most outstanding compliance trainer“.
US MiFIR equivalence decision in OJEU
The decision to consider the legal and supervisory framework of the USA applicable to designated contract markets and swap execution facilities as equivalent to MiFIR standards under MiFIR has been published in the...
ESAs publish draft group AML risk RTS
The ESAs have published draft RTS under MLD4 on how credit and financial institutions should manage their AML/TF risks at group level where their group includes branches or major subsidiaries in third countries that do...
IFRS 9 transitional Regulation published
There has been concern about the anticipated regulatory capital impact when International Financial Reporting Standard 9 is implemented from January 2018, resulting from some firms seeing a significant increase in...
BEIS gives payment surcharge guidance
BEIS has published guidance on the Consumer Rights (Payment Surcharges) Regulations 2012. New rules come into force on 13 January 2018 as a result of PSD2 that ban surcharges on a wide range of transactions, while...
Up next from FCA
FCA’s latest Policy Development Update promises the following publications before the end of 2017: Policy Statement on formalisation of the debt concession for smaller credit unions Policy Statement on market...
EIOPA speaks on insurance and pensions
The Chairman of the European Insurance and Occupational Pensions Authority (EIOPA), Gabriel Bernardino, delivered a speech at EIOPA’s 7th annual conference on Insurance and Pensions Reloaded: A Game Changer. The...
ESMA publishes MiFID compliance function peer review
ESMA has published the results of its peer review on the guidelines on certain aspects of the compliance function under MiFID 1. The review covered a 2 year period and assessed the approaches of 31 NCAs. It included...
LMG proposal addresses issues of access, control and continuity of service in post-Brexit insurance sector
In light of Brexit-related concerns over continuity of service in the insurance sector, the London Market Group (LMG) has issued a proposal to the UK government detailing a mechanism whereby both the UK and EU are...
Financial Stability Report, November 2017
The Bank of England (BoE) has published its financial stability report, issue number 42. The report sets out the Financial Policy Committee’s (FPC), a sub-committee of the BoE’s Court of Directors, views of...
EBA repeals its Guidelines on retail deposits subject to different outflows for the purpose of liquidity reporting
On the 27 November 2017, the European Banking Authority (EBA) announced that it has decided to formally repeal its guidelines on retail deposits subject to different outflows for the purposes of liquidity reporting...
Credit Unions Act 1979 (Locality Common Bond Conditions) Order 2017
The Credit Unions Act 1979 (Locality Common Bond Conditions) Order 2017 (SI 2017/1144) has been published, along with an explanatory memorandum. The Order makes a change to section 1B(3)(a) of the Credit Unions Act...
FCA publishes a statement on LIBOR panels
The FCA has confirmed that all 20 of the panel banks for LIBOR (the London Interbank Rate) have agreed to support the LIBOR benchmark, ensuring the sustainability of the rate until 2021. The confirmation follows Andrew...
ESMA updates MAR FAQs
ESMA has updated the FAQs on MAR. New questions address the requirements around managers’ transactions.
UK based EU agencies agree relocation
The Council has decided on the new locations of various UK-based EU agencies. In the financial services sector, the EBA will be relocating to Paris.
NEW BUSINESS CONTRACT TERMS REGULATIONS WITHDRAWN
The draft Business Contract Terms (Assignment of Receivables) Regulations 2017, which had been laid before Parliament on 14 September 2017, have now been withdrawn The draft regulations had been the subject of criticism...
Barnier speaks on EU future and Brexit
Michel Barnier, speaking at the Brussels office of the Centre for European Reform, spoke on the EU “standing up for itself”. He said Brexit could be a turning point in what he called the European project. He...
Legislative proposals to set the application date of IDD at 1 October 2018
Following the European Parliament’s call to postpone the application of the IDD to 1 October 2018, ECON has written to the European Commission asking it to take the Committee’s suggestion into account. ECON...
ENISA publishes recommendations on cyber insurance
The European Union Agency for Network and Information Security (ENISA) has published a report on the commonality of risk assessment language in cyber insurance. ENISA comments on the growth of the cyber insurance market...
Treasury implements Venezuela sanctions regime
The Government has made legislation creating a financial sanctions regime in relation to Venezuela and OFSI has published a financial sanctions notice, although there are as yet no designated persons under the regime...
ESMA updates MiFID 2 FAQs
ESMA has issued: a further update to its FAQs on market structure issues under MiFID 2, including on DEA and tick sizes an update to its transparency FAQs, including new questions on a range of pre- and post-trade...
MLD5 negotiations stalled
Reports from the European Parliament say that the last scheduled trilogue on MLD5 ended without agreement, because the Council did not have a mandate to negotiate and there was no text for discussion. ECON expressed its...
David Davis’ speech on the financial services sector post Brexit
On 14 November 2017, David Davis, Secretary of State for Exiting the European Union, gave a speech on the post-Brexit relationship between the UK and the EU relating to the financial services sector. In his speech, Mr...
ICO launches new advice service to help small organisations with GDPR preparations
The Information Commissioner’s Office (ICO) has launched an advice line in order to help small organisations prepare for compliance with the EU General Data Protection Regulation (GDPR), which is due to come into...
Bank of England publishes a summary of the responses to its white paper on SONIA
The Bank of England (BoE) has published a summary of the responses it has received to its white paper (published in June 2017) on sterling risk-free reference rates (RFRs). The white paper set out the working...
Select committee calls for post-Brexit transactional deal
The Lords’ EU Financial Affairs Sub-Committee has written to the Chancellor calling for an urgent agreement on a post-Brexit “standstill” transition point for the financial services sector. Baroness...
CITY OF LONDON LAW SOCIETY RESPONSE TO NEW BUSINESS CONTRACT TERMS REGULATIONS
The City of London Law Society has written to the Department for Business, Energy and Industrial Strategy outlining a number of concerns with the draft Contract Terms (Assignment of Receivables) Regulations 2017. The...
UN and EU sanction Mali with no designated persons
OFSI has published a financial sanctions notice confirming that the UN Security Council has imposed restrictive measures because of the threat to international peace and security posed by Mail, and this was followed by...
EBA publishes final guidelines on the supervision of significant branches
On 1 November 2017, the European Banking Authority (EBA) published a final report on the guidelines on the supervision of significant branches (EBA/GL/2017/14). The final report follows a consultation, which took place...
Legislative proposal for an EU framework on crowd and peer to peer finance
The European Commission (Commission) has published an inception impact assessment on its legislative proposal for an EU framework on crowd and peer to peer finance. The initiative is part of the Commission’s...
Final guidelines on the identification and management of step-in risk issued by the Basel Committee
The Basel Committee on Banking Supervision has released its Guidelines on identification and management of step-in risk . The guidelines build upon two consultations carried out by the Committee in December 2015 and...
BrightHouse to reimburse customers following FCA engagement
BrightHouse, a rent-to-own company providing household goods to customers on hire purchase agreements, has committed to pay over £14.8 million to 249,000 customers following engagement with FCA. In 2014, FCA had...
Treasury launches inquiry into UK’s economic relationship with the EU
The Treasury Committee has launched a new inquiry into the UK’s economic relationship with the EU, which amongst other things will consider: Transitional arrangements; Preparedness for ‘no deal’; and...
EBA: Overview of PSD2 national transposition projects and new reports
The EBA recently published a table which includes key questions around the Payment Services Directive 2 (PSD2) transposition activities and dates of the different EEA countries. In addition, the EBA has announced the...
Commission starts reporting fitness check
The European Commission has invited feedback on whether supervisory reporting requirements in financial services legislation are fit for purpose. It has published a roadmap on which it asks for views by 14 November. ...
TheCityUK warns on dangers of transition delay
TheCityUK has called on the government to progress the Brexit transitional arrangements as quickly as possible, before firms have to implement their contingency plans because they cannot wait any longer. The paper...
EBA’s Opinion on the UK’s departure from the EU
On 12 October 2017, the European Banking Authority (EBA) published an Opinion on issues relating to the UK’s departure from the European Union (EU). The Opinion is focused on the period prior to the departure of...
FCA publishes BMR checklist
FCA has published a draft checklist for firms applying for registration as a benchmark administrator under the BMR.