March 2015

The FCA has published Market Watch 47, its newsletter on market conduct and transaction reporting issues.

At the beginning of the newsletter the FCA provides further details as to how its recent structural changes impact the functions carried out by the Market Monitoring Department. Under the new structure a Market Oversight Division, comprised of the

The FCA has published Handbook Notice 20.

This Handbook Notice introduces the FCA Handbook and other material made by the FCA Board under its legislative powers on 26 February, 6 and 24 March 2015. It also contains information about other publications relating to the FCA Handbook and, if appropriate, lists minor corrections made to previous instruments made by the Board.

The European Central Bank and the Bank of England:

  • have agreed enhanced arrangements for information exchange and cooperation regarding UK central counterparties (CCPs) with significant euro-denominated business; and
  • are extending the scope of their standing swap line in order, should it be necessary and without pre-committing to the provision of liquidity, to facilitate the provision of multi-currency liquidity support by both central banks to CCPs established in the UK and euro area respectively.

The Financial Action Task Force (FATF) has published a press release following its meeting of the Private Sector Consultative Forum in Brussels from 26 to 27 March 2015.

Highlights from the meeting include that:

  • given the increasing number of terrorist attacks, the FATF has moved terrorist financing to the top of the FATF agenda. Going forward, the FATF will focus on countries’ implementation of measures to combat terrorist financing and will undertake further work in this area; and
  • the FATF reiterated its position on “de-risking” and the need for financial institutions and other designated businesses and professions to undertake proper implementation of the risk-based approach. The FATF also clarified that the FATF standards do not require a “know-your-customer’s-customer” approach to conducting customer due diligence.

There has been published in the Official Journal of the EU the European Commission Delegated Regulation on information to be provided by Member State national competent authorities to the European Securities and Markets Authority under the Alternative Investment Fund Managers Directive. The Delegated Regulation will come into force on 16 April 2015.

Article 10b(4) of the Markets in Financial Instruments Directive (MiFID) requires Member States to make publicly available the information necessary to carry out the assessment of a proposed acquirer of an investment firm.

The European Securities and Markets Authority (ESMA) is mandated under Article 10a of MiFID, as amended by the Omnibus Directive, to produce:

The FCA has published Policy Statement 15/9: Implementation of the Mortgage Credit Directive and the new regime for second charge mortgages, feedback to CP14/20 and final rules (PS15/9).

In PS15/9, the FCA summarises the feedback it received to its September 2014 consultation on implementing the Mortgage Credit Directive (MCD) and sets out its final rules