United Kingdom (and EU regulation)

FCA Occasional Paper on ageing population and financial services

The FCA has published Occasional Paper No. 31 on the ageing population and financial services. The paper sets out the key findings and outcomes from the Ageing Population Project and the FCA’s strategy for mitigating the potential harm arising. The FCA has found that there are risks that the financial services needs of older people … Continue Reading

FCA regulation round-up: September 2017

The FCA has published its latest Regulation Round-up. Among other things the FCA discusses its work on the Ageing Population Project, particularly as it has just published an Occasional Paper setting out the findings from this project. The FCA also provides a brief update on its increasing focus on anti-money laundering (AML). The FCA states … Continue Reading

European Parliament and Council of EU decide not to object to MiFIR Delegated Regulation exempting certain third countries’ central banks from pre- and post-trade transparency

The European Parliament has updated its procedure file on the proposed Commission Delegated Regulation supplementing MiFIR as regards the exemption of certain third countries’ central banks in their performance of monetary, foreign exchange and financial stability policies from pre- and post-trade transparency requirements (Delegated Regulation). The procedure file states that the Council of the EU … Continue Reading

AFME report on MiFIR post-trade reporting requirements

The Association for Financial Markets in Europe (AFME) has published a report that explains the post-trade reporting requirements under Articles 6, 10, 20 and 21 of MiFIR. The document covers: firms impacted by the MIFID II / MiFIR post-trade transparency requirements; the data required to be reported; when and where the data is to be … Continue Reading

ECB consults on draft guides concerning credit institution licence applications

The European Central Bank (ECB) has published for consultation: a draft guide to assessments of licence applications. Since 4 November 2014, the ECB has been exclusively competent to authorise all credit institutions established in the Member States participating in the Single Supervisory Mechanism (SSM). This competence is exercised in close cooperation with the relevant Member … Continue Reading

Joint Committee of ESAs report on risks and vulnerabilities in EU financial system

The Joint Committee of the European Supervisory Authorities (ESAs) has published its September 2017 report on risks and vulnerabilities in the EU financial system. The report that the Joint Committee of the ESAs published in March 2017 considered the following to be key risks to the EU financial system: (i) the persistent low profitability of … Continue Reading

FSB and IMF second progress report on phase 2 of G20 data gaps initiative

The Financial Stability Board (FSB) and the International Monetary Fund (IMF) have jointly produced their second progress report on the implementation of the second phase of the G20 data gaps initiative (DGI-2). The main objective of DGI-2 is to implement the regular collection and dissemination of reliable and timely statistics for policy use. The progress … Continue Reading

Commission legislative proposals for reforms to the European System of Financial Supervision

The European Commission (Commission) has published legislative proposals for reforming the European System of Financial Supervision. The Commission press release that accompanies the legislative proposals summarises the key features which include the following: the European Supervisory Authorities (ESAs) will be given coordination powers over day-to-day supervision by Member State competent authorities. The ESAs will set … Continue Reading

FCA enforcement of MiFID II

The FCA has published a speech by Mark Steward, FCA Director of Enforcement and Market Oversight. The speech is entitled A better view. In his speech Mr Steward discusses recent FCA enforcement trends, particularly in the context of wholesale markets, noting that there has been an approximate 75% increase in the number of FCA investigations … Continue Reading

PSR approach to monitoring and enforcing PSD2

The Payment Systems Regulator (PSR) has published a document setting out guidance on its approach to monitoring compliance with Regulation 61 and Part 8 of the Payment Services Regulations 2017. The PSR is the competent authority for these articles. Regulation 61 concerns information on ATM withdrawal charges, and Part 8 concerns access to payment systems … Continue Reading

FCA Policy Statement on transaction costs disclosure in workplace pensions

The FCA has published Policy Statement 17/20:Transaction cost disclosure in workplace pensions (PS17/20). PS17/20 follows on from Consultation Paper 16/30: Transaction cost disclosure in workplace pensions and contains final rules that require firms managing money on behalf of a defined contribution (DC) workplace pension scheme to disclose administration charges and transaction costs to the governance … Continue Reading

PRA and FCA remind firms about ESA guidelines on prudential assessment of acquisitions and increases of qualifying holdings in financial sector

The FCA has issued a statement noting that the Joint European Supervisory Authorities’ (ESAs) guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector come into force on 1 October 2017. The FCA and PRA have notified the ESAs that they will comply with the guidelines except for provisions … Continue Reading

FCA speech on culture and conduct in financial services

The FCA has published a speech by Jonathan Davidson, FCA Executive Director of Supervision – Retail and Authorisations. The speech is entitled Culture and conduct – extending the accountability regime. Mr. Davidson discusses culture and conduct in financial services through the lens of the senior managers and certification regime (SM&CR). Mr. Davidson discusses the progress … Continue Reading

FSCS announces new industry-wide agreement to raise consumer awareness of deposit protection

The Financial Services Compensation Scheme (FSCS) has announced an industry-wide agreement to raise awareness of deposit protection for consumers. Under PRA rules, banks and building societies are already required to display the FSCS badge in branches and on posters and leaflets. However, under a new industry agreement, which is supported by UK Finance and the … Continue Reading

EBA discussion paper on significant risk transfer in securitisation

The European Banking Authority (EBA) has published a discussion paper on the significant risk transfer (SRT) in securitisation. The EBA is seeking views on enhancing the regulatory and supervisory playing field with respect to the assessment and recognition of SRT in three core areas: the standardisation of the process of SRT assessment by Member State … Continue Reading

European Commission proposes amendments to European System of Financial Supervision

The European Commission published on 20 September draft legislation that, if adopted, would introduce far reaching changes to the powers, governance structure and funding mechanism of the European Supervisory Authorities (ESAs). Amongst others objectives, the proposed amendments seek to shift part of the ESAs financing burden to financial market participants. The proposed regulation would also … Continue Reading

Depositor and dormant account protection – SS18/15 update

The PRA has published a revised version of Supervisory Statement 18/15: Depositor and dormant account protection (SS18/15). The PRA explains that the only update to SS18/15 is to section 3.16 where the PRA is providing further clarity on the use of the financial services compensation scheme badge on the information sheet contained in Annex 1 … Continue Reading

ECB Regulation amending Regulation on reporting of supervisory financial information published in OJ

There has been published in the Official Journal of the European Union (OJ), Regulation (EU) 2017/1538 of the European Central Bank of 25 August 2017 amending Regulation (EU) 2015/534 on reporting of supervisory financial information. The amending Regulation enters into force 20 days after its publication in the OJ, that is on 9 October 2017. … Continue Reading

Basel Committee updates FAQs on Basel III definition of capital

The Basel Committee on Banking Supervision (Basel Committee) has published a revised version of its FAQs on the definition of capital. Updated material is marked in italics.‎ In addition, two flowcharts have been added to the annex to the document. The flowcharts are designed to aid understanding of the application of the Basel III transitional … Continue Reading

FCA publishes PSD2 policy statement

The FCA has published Policy Statement 17/19: Implementation of the revised Payment Services Directive (PSD2): Approach Document and final Handbook changes (PS17/19). The majority of the requirements introduced under the revised Payment Services Directive (PSD2) must be implemented by 13 January 2018. HM Treasury is implementing the PSD2 through the Payment Services Regulations 2017 (PSR … Continue Reading

ESMA sets out procedure for exemption from MiFIR access provisions for trading venues

Article 36(1) of MiFIR establishes that a trading venue shall provide trade feeds on a non-discriminatory and transparent basis, including as regards fees related to access, upon request to any central counterparty (CCP) authorised or recognised by the European Market Infrastructure Regulation (EMIR) that wishes to clear transactions in financial instruments that are concluded on … Continue Reading

ISDA recommendations for CCP recovery and resolution framework

The International Swaps and Derivatives Association (ISDA) has published a paper containing recommendations for a comprehensive recovery and resolution framework that would ensure central counterparties (CCPs) can withstand severe market stress. In doing so, the ISDA recognises that these strategies will necessarily have to vary by jurisdiction and by CCP, based on different CCP structures … Continue Reading

FCA Market Watch issue 53

The FCA has published Market Watch 53. In this issue of Market Watch, the FCA focusses on the MiFID II legal entity identifier (LEI). An LEI is a unique identifier for persons that are legal entities or structures including companies, charities and trusts. The obligation for legal entities or structures to have an LEI was … Continue Reading

FCA reminds proprietary traders and DEA providers about MiFID II obligations

The FCA has published a new webpage on MiFID II authorisations and variation of permissions. On its webpage, the FCA highlights that some proprietary traders who are not authorised may need to be authorised under MiFID II. The FCA provides the example of unregulated proprietary traders who use a form of direct electronic access (DEA) … Continue Reading