May 2015

The European Commission (the Commission) has requested 11 Member States to fully implement the Bank Recovery and Resolution Directive (BRRD).

The Member States that failed to transpose the BRRD into their national law by the 31 December 2014 deadline are:

  • Bulgaria;
  • the Czech Republic;
  • France;
  • Italy;
  • Lithuania;
  • Luxembourg;
  • the Netherlands;
  • Malta;
  • Poland;
  • Romania; and
  • Sweden.

These Member States have 2 months to transpose the BRRD into their national law before the Commission makes a decision as to whether to refer them to the European Court of Justice.

The FCA has published Consultation Paper 15/17: Capital resources requirements for Personal Investment Firms (CP15/17).

Previously the FCA committed itself to consult on capital requirements for personal investment firms (PIFs). Accordingly, the FCA has reviewed both the existing rules in force and also the rules in FSA Policy Statement 09/19: Review of the prudential rules for PIFs that were deferred from implementation until 31 December 2015. In CP15/17 the FCA is seeking views on an alternative method to those two approaches to setting capital resources requirements for PIFs.

The deadline for comments on CP15/17 is 7 September 2015.

The Regulation on wholesale energy market integrity and transparency (REMIT) sets out the EU legal framework to address abusive practices affecting wholesale energy markets. It provides for the monitoring of wholesale energy markets by the Agency for the Co-operation of Energy Regulators (ACER) in close cooperation with national regulatory authorities, the European Securities and Markets …

The Financial Ombudsman Service (FOS) has published a consultation paper which sets out proposed amendments to its scheme rules, affecting both businesses subject to its compulsory jurisdiction and voluntary jurisdiction, in the Dispute Resolution: Complaints sourcebook and Glossary of the FCA Handbook. The deadline for comments on the consultation paper is 2 June 2015.

The FCA has published a web page concerning binary options.

Binary options allow consumers to speculate on the short term movement in the price of financial instruments such as shares. At the moment the UK Gambling Commission regulates binary options but only if the firm has remote gambling equipment located in Britain.

However, the UK Government is consulting on proposals to treat binary options as a financial rather than a gambling product. The consultation closes on 18 June 2015. If the proposals are adopted it would mean that binary options will be regulated by the FCA rather than the UK Gambling Commission.

The International Swaps and Derivatives Association, Inc (ISDA) and Markit have announced the launch of an EMIR Clearing Classification Tool on ISDA Amend.

ISDA Amend is an online service from ISDA and Markit that facilitates compliance with certain EMIR and other regulatory requirements. The EMIR Clearing Classification Tool enables derivatives users to indicate to their counterparties whether they are subject to clearing obligations set by the European Securities and Markets Authority for interest rate derivatives.

The Hong Kong Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have signed a Memorandum of Regulatory Cooperation on 22 May 2015 regarding Mainland-Hong Kong Mutual Recognition of Funds (MRF). The aim of MRF is to allow eligible Mainland and Hong Kong funds to be distributed in each other’s market through…

The FCA has published its latest Regulation Round-up.

The Round-up includes the FCA:

  • reminding firms that it has published a one minute guide and a recording of a MAR overview briefing held in March;
  • reminding firms that it has published a recording of a CASS briefing held in January for CASS medium firms; and
  • providing clarification on the connected contracts exclusion when a firm also provides credit facilities. The FCA mentions that in response to industry queries, it has recently issued a clarification for firms who offer, arrange or advise on related insurance contracts or assist in administering insurance contracts that are not their main line of business and also arrange credit. The FCA considers that a regulatory exclusion is still available for firms when their main line of business does not otherwise consist of carrying on a regulated activity (other than one for which they have only interim permission). The FCA adds that more detail about this exemption can be found on its website.

The Financial Stability Board (FSB) has published a thematic peer review report on supervisory frameworks and approaches for systemically important banks.

The report examines how authorities are interpreting and implementing the recommendations from the FSB’s supervisory intensity and effectiveness group. It assesses progress towards enhancing supervisory frameworks and approaches for systemically important banks since the…

The PRA has published Policy Statement 10/15: The implementation of ring-fencing: legal structure, governance and the continuity of services and facilities (PS10/15). PS10/15 provides feedback on the responses received to the first PRA consultation on implementing ring-fencing (Consultation Paper 19/14: The implementation of ring-fencing: consultation on legal structure, governance and the continuity of services…