January 2015

The Bank Recovery and Resolution Directive (BRRD) establishes an EU framework for the recovery and resolution of credit institutions, investment firms and related entities. In the BRRD framework, resolution authorities, after consulting with relevant competent authorities, will draw up resolution plans which provide for resolution actions which may be taken once an institution meets the conditions for resolution.

So that it may draw up a resolution plan the resolution authority needs the cooperation of the institution. However, institutions also provide information that is relevant for resolution planning to their competent authority. Therefore, in order to avoid duplication in the transmission of information the BRRD encourages competent authorities to cooperate with resolution authorities.

The FCA has updated its webpage on reporting under the Alternative Investment Fund Managers Directive.

The FCA states that it is prioritising efforts to ensure that all alternative investment fund managers have access to GABRIEL as soon as possible. The FCA anticipates that all firms will be given the ability to report within one month of the reporting period ending 31 December 2014, and that a significant number of firms will be given access by the end of this week.

On January 13, 2015, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) announced its 2015 examination priorities.

OCIE’s priorities are grouped in three primary categories:

1. Retail investors and savings for retirement

  • Fee selection and reverse churning. For investment advisers and firms registered as both broker-dealers and

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The Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) Regulations 2015 (the Regulations) have been published on the legislation.gov.uk website.

The Regulations implement Articles 133 and 134 of the Capital Requirements Directive IV and introduce a capital buffer for banks, building societies and investment firms. The capital buffer is referred to as the “systemic risk buffer” and is intended to make such firms more resilient to certain long-term systemic risks.

The Presidency of the Council of the EU has issued an  “I” item note asking the Permanent Representatives Committee (COREPER) to endorse the final compromise texts of the proposed Directive to amend and replace the Third Money Laundering Directive and the proposed Regulation to amend and replace the Regulation on information on the payer accompanying transfer of funds.

COREPER is also invited to approve in principle the submission of these final compromise texts as “I/A” items at a later date, firstly for political agreement and subsequently for their adoption as the Council’s first-reading positions.

On January 13, 2015, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) announced its 2015 examination priorities:

OCIE’s priorities are grouped in three primary categories:

1. Retail investors and savings for retirement

  • Fee selection and reverse churning. For investment advisers and firms registered as both broker-dealers

…

The Investment Industry Regulatory Organization of Canada (IIROC) recently released the final version of Guidance Note 14-0299 (the Guidance), which sets out general principles and suggested practices for underwriters’ due diligence with respect to public securities offerings. IIROC issued proposed guidance on this subject on March 6, 2014 (the Proposed Guidance). …

In the “Latest News” part of the FCA’s MiFID review webpage there is a link called “Focus of the FCA”. The link provides a helpful summary regarding the action the FCA and HM Treasury will be taking to implement MiFID II.

The FCA states that the changes to the FCA Handbook will need to be in place by the middle of 2016. It is likely that the FCA’s formal consultation on Handbook changes will not take place until the end of 2015. However, the FCA will be engaging on certain aspects of the changes it needs to make ahead of this formal consultation. In particular, the FCA states that it expects to issue a discussion paper towards the end of Q1 2015 which will seek views on various issues relating to conduct of business.

On 28 June 2014, there was published in the Official Journal of the EU the European Commission Implementing Regulation laying down implementing technical standards (ITS) with regard to supervisory reporting of institutions according to the Capital Requirements Regulation.

The Commission has now adopted two Implementing Regulations that will amend those ITS. The Implementing Regulations relate to: