February 2014

The European Securities and Markets Authority (ESMA) has published a speech given by its Executive Director, Verena Ross. The speech is entitled Liquidity and new financial market regulation.

In her speech, Mrs Ross covers:

  • the implementation of revisions to the Markets in Financial Instruments Directive (MiFID II);
  • liquidity and MiFID II; and
  • the implementation of the European Markets Infrastructure Regulation.

The FCA has published Consultation Paper 14/3: Consumer credit: further amendments to DEPP and EG (CP14/3).

The Financial Services and Markets Act 2000 (Regulated Activities) Order 2014 amends the Payment Services Regulations 2009 (PSR) and the Electronic Money Regulations 2011 (EMR) by giving the FCA the power to prohibit or restrict the carrying out of certain activities by EEA authorised payment institutions and EEA authorised electronic money institutions. These regulated activities generally correspond with activities that were considered consumer credit business under the Consumer Credit Act 1974.

The FCA has published Policy Statement 14/3: Final rules for consumer credit firms (PS14/3).

In PS14/3, the FCA sets out its final Handbook rules for consumer credit firms. The new rules will result in changes for how firms offering high-cost short-term credit (HCSTC firms) and debt management companies treat their customers including for HCSTC firms’ mandatory affordability checks for borrowers and the FCA having the power to ban any misleading adverts issued by them.

There has been published in the Official Journal of the EU the text of the European Commission delegated Regulation supplementing the Capital Requirements Regulation on prudential requirements for credit institutions and investment firms, with regard to regulatory technical standards for specifying the calculation of specific and general credit risk adjustments.

View Commission delegated Regulation (EU)

Mr Arnold Eber (Mr Eber), the majority shareholder and sole director of CIB Partners Limited (CIB), a corporate finance consultancy, has had his approval withdrawn to perform the controlled functions CF1 (Director), CF3 (Chief Executive), CF10 (Compliance Oversight), CF11 (Money Laundering Reporting) and CF30 (Customer) at CIB. He has also been prohibited from performing any function in relation to any regulated activity and has been publicly censured as a result of his conduct as an approved person, Chief Executive Officer and sole director of CIB between 5 September 2007 and 15 September 2010 (the Relevant Period).

Forex Capital Markets Limited and FXCM Securities Limited (together, FXCM), a US Forex trading group, has been fined £3,200,000 plus any amount of redress (amounting to $9,828,677, which represents the retention of positive price movements which FXCM should have passed on to its customers) that remains unclaimed for breach of Principle 6, £800,000 for breach of Principle 11, and publicly censured for breaches of Principle 6 and the COB rules relating to best execution.