United Kingdom (and EU regulation)

Council authorises Commission to start Brexit negotiations

The General Secretariat of the Council of the EU (Council) has adopted the following: Council decision authorising the opening of negotiations with the United Kingdom of Great Britain and Northern Ireland for an agreement setting out the arrangements for its withdrawal from the European Union; Council Decision concerning the establishment of the ad hoc Working … Continue Reading

EBA opinion on CRR II and CRD V proposals on own funds

Article 80 of the Capital Requirements Regulation (CRR) mandates the European Banking Authority (EBA) to monitor the quality of own funds instruments issued by institutions across the Union and to notify the European Commission immediately where there is significant evidence of those instruments not meeting the criteria set out in Article 28, or where applicable, … Continue Reading

FSB stocktake on work to strengthen governance frameworks to mitigate misconducts risks

The Financial Stability Board (FSB) has published a report entitled Stocktake of efforts to strengthen the governance framework to mitigate misconduct risks. The report describes the findings of a stocktake of efforts underway by international bodies, national authorities, industry associations and firms on the use of governance frameworks to address misconduct risk, and include a … Continue Reading

Wolfsberg Group guidance on PEPs

The Wolfsberg Group (the Group) has published updated guidance as to how financial institutions should handle the money laundering risks posed by politically exposed persons (PEPs). This updates the guidance that the Group initially issued in 2003 and the FAQs issued in 2008. The updated guidance lays out what the Wolfsberg Group considers to be … Continue Reading

FSB and CGFS joint report on Fintech credit

A working group established by the Committee on the Global Financial System and the Financial Stability Board has published a report on FinTech credit. FinTech credit is credit activity facilitated by electronic platforms such as peer-to-peer lenders. FinTech platforms facilitate various forms of credit, including consumer and business lending, lending against real estate, and non-loan … Continue Reading

Delegated Regulation on classes of arrangements protected in partial property transfers under BRRD published in OJ

There has been published in the Official Journal of the European Union (OJ) the Commission Delegated Regulation (EU) 2017/867 of 7 February 2017 on classes of arrangements to be protected in a partial property transfer under Article 76 of the Bank Recovery and Resolution Directive. The Delegated Regulation will enter into force on 9 June … Continue Reading

ESMA clarifies the concept of trade on a trading venue under MiFID II

The European Securities and Markets Authority (ESMA) has published an opinion that seeks to clarify the concept of “traded on a trading venue” (TOTV), which is relevant for a number of provisions under MiFID II and MiFIR. The opinion states the following: “ESMA is of the view that only OTC derivatives sharing the same reference … Continue Reading

BoE FAQs on Fintech Accelerator

The Bank of England (BoE) has published a set of frequently asked questions on its Fintech Accelerator. The BoE explains that the Accelerator works in partnership with innovative firms working on new technology to harness fintech innovation for central banking. The BoE carries out proofs of concepts on use cases of relevance to its role … Continue Reading

CLLS writes to FCA about ESMA’s approach to delegation in its Q&A on AIFMD application

The City of London Law Society (CLLS) has published its concerns regarding a recently updated version of the European Securities and Markets Authority’s (ESMA) Q&As on the application of the Alternative Investment Managers Directive (AIFMD). In particular, the CLLS writes with reference to the response to new question 2 in Section VIII on delegation. The … Continue Reading

CLLS responds to FCA’s fourth consultation on implementation of MiFID II

The City of London Law Society (CLLS) has published its response to FCA Consultation Paper 16/43: MiFID II implementation – Consultation Paper IV (CP16/43). The CLLS concerns relate to chapters 2 (specialist regimes) and 3 (tied agents) of CP16/43. In its response the CLLS set out several concerns about the FCA’s proposals in relation to … Continue Reading

New FCA web page on cyber resilience

The FCA has published a new web page on cyber resilience containing relevant materials. Among other things the FCA reminds firms that under Principle 11 they must report material cyber incidents. A firm may consider an incident material if it: results in significant loss of data, or the availability or control of IT systems; impacts … Continue Reading

Assessing Suitability Review

The FCA has published a report setting out its findings from a review into the pensions and investment advice market. The review was initiated in April 2016 in recognition of the important role the FCA plays in supporting the sector in delivering suitable advice. The FCA’s review has provided positive results. In assessing 1,142 individual … Continue Reading

ESMA finds improvements in regulators’ supervisory practices concerning MiFID rules on fair, clear and not misleading information

The European Securities and Markets Authority (ESMA) has published a follow-up report on the actions undertaken by ten Member State national competent authorities (NCAs) in addressing deficiencies identified in the 2014 peer review on MiFID conduct of business rules relating to fair, clear and not misleading information.… Continue Reading

EBA consults on its guidance for the use of cloud computing

The European Banking Authority (EBA) has launched a consultation on draft recommendations on outsourcing to cloud service providers by financial institutions. In December 2006 the Committee of European Banking Supervisors published general outsourcing guidelines that remain applicable. The draft recommendations provide additional guidance for the specific context of institutions that outsource to cloud service providers.… Continue Reading

European Parliament again rejects blacklist of states at risk of money laundering

The European Parliament has again rejected Commission Delegated Regulation of 24 March 2017 amending Commission Delegated Regulation (EU) 2016/1675 supplementing the Fourth Anti-Money Laundering Directive by identifying high risk third countries with strategic anti-money laundering and counter-terrorist financing deficiencies.… Continue Reading

Money market fund rules adopted

The Council of the EU has adopted the proposed Regulation on money market funds. There are currently two kinds of money market funds (MMFs) in the EU that are used for short-term financing for companies and government entities: those that offer a variable net asset value (VNAV) that mainly depends on market fluctuations; and those … Continue Reading

Council adopts new rules on prospectuses

The Council of the EU has adopted the proposed Regulation that repeals and replaces the Prospectus Directive and the Prospectus Regulation.  The new Regulation on prospectuses enters into force on the 20th day after its publication in the Official Journal of the European Union. The majority of its provisions apply from 24 months after the … Continue Reading

Top cyber security blogs you might have missed

In case you missed it, here’s a pick of some of the most interesting blogs on cyber security: FCA speech on managing cyber security threats (25 April 2017): G7 principles on cyber security for the financial sector (13 October 2017) Our approach to cyber security in financial services (23 September 2017) Cyber security Directive published … Continue Reading

ECB guide for fit and proper assessments

The European Central Bank (ECB) has published a guide to fit and proper assessments. The guide is relevant to significant credit institutions that fall under the direct supervision of the ECB and is intended to ensure consistency in the application of the fit and proper assessment criteria, with a view to establishing common supervisory practices … Continue Reading

G7 Finance Ministers and Central Banks’ Governors Meeting

There has been published the communiqué from the recent G7 Finance Ministers and Central Banks’ Governors meeting. Among other things the communiqué states: “In light of the increasing digitalisation of financial services and the evolving cyber threats landscape, it is important to pursue effective approaches for assessment of cyber security at the financial firm and … Continue Reading

PRIIPs disclosure: Key Information Documents

The FCA has updated its webpage, PRIIPs disclosure: Key Information Documents, by amending the lists of products that it considers falls inside and outside the definition of a packaged retail and insurance-based investment product (PRIIP). The FCA also states that it will consult on its approach to personalised projections during the second half of 2017. … Continue Reading