In two recent webinars, we explore some of the key situations in which AI liability can arise and consider what businesses (including financial institutions) can do to manage these risks. Regulatory liability – In this session, we explore the regulatory framework that governs the use of AI through the lens of the proposed EU AI … Continue Reading
On 8 February 2023, the Bank of England (BoE) published its policy on outsourcing and third party risk management for Financial Market Infrastructures (FMIs). The finalisation of this policy follows the BoE’s consultation in 2022. The aims of the policy are to facilitate greater resilience and adoption of cloud and other technologies, set out the … Continue Reading
On 2 December 2022, HM Treasury published updated statutory guidance to assist in the implementation of, and compliance with the Russia (Sanctions) (EU Exit) Regulations 2019. The guidance has been updated to clarify the application of the prohibition on provision of technical assistance, financial services or funds related to G7 dependency and further goods.… Continue Reading
In addition to the obligations on regulated firms to comply with applicable sanctions regimes, individuals also need to be aware of their own compliance with sanctions restrictions. From a territorial perspective, individuals must comply with the sanctions regimes in their home jurisdiction wherever in the world they are located — for example, EU, UK and … Continue Reading
On 1 September 2022, the FCA updated their webpage on cancelling a temporary permission. The webpage has updated the question ‘your firm wants to exit the TPR but has UK business to run-off’. … Continue Reading
On 30 August 2022, the Office of Financial Sanctions Implementation (OFSI) published a blog entitled ‘Reporting to the OFSI: what do I need to do?’ The blog describes what companies’ reporting obligations are under UK financial sanctions legislation and how they can be met. It also sets out high level examples. In terms of how … Continue Reading
On 30 August 2022, the Office of Financial Sanctions Implementation (OFSI) published updated general guidance for financial sanctions under the Sanctions and Anti-Money Laundering Act 2018. Chapter 5 of the general guidance dealing with reporting obligations has been expanded.… Continue Reading
On 28 July 2022, the Office of Financial Sanctions Implementation (OFSI) updated its general guidance for financial sanctions under the Sanctions and Anti-Money Laundering Act 2018. The guidance outlines firms’ obligations under financial sanctions, as well as OFSI’s approach to licensing and compliance issues. It takes into account relevant case law and guidance at the … Continue Reading
On 4 May 2022, the UK Government announced a ban on services exports to Russia, and as of 21 July 2022 that ban is now in force by virtue of regulation 54C of The Russia (Sanctions) (EU Exit) Regulations 2019 (as amended by The Russia (Sanctions) (EU Exit) (Amendment) (No. 14) Regulations 2022) (the Regulations). … Continue Reading
The Economic Crime (Transparency and Enforcement) Act 2022 (the Act), which came into force in March 2022, aimed amongst other things, to give UK sanctions authorities greater power to take enforcement action and impose penalties on persons that breach sanctions restrictions, through the introduction of a “strict liability” test. These new powers of the UK’s … Continue Reading
On 15 July 2022, there was published in the Official Journal of the EU, Commission Implementing Regulation 2022/1220 of 14 July 2022. This Implementing Regulation lays down implementing technical standards for the application of MiFID II with regard to the format in which branches of third-country firms and competent authorities have to report information referred … Continue Reading
On 15 July 2022, the European Securities and Markets Authority (ESMA) published updated Q&As on MIFID II and MIFIR market structures topics. The Q&As fall part of the Interactive Single Rulebook (ISRB), an online tool aimed at providing a comprehensive overview of, and easy access to, all level 2 and level 3 measures adopted in relation … Continue Reading
On 14 July 2022, the European Commission published an Implementing Regulation laying down implementing technical standards (ITS) for the application of MiFID II with regard to the format in which branches of third-country firms and competent authorities have to report the information referred to in Article 41(3) and (4) of that Directive and an annex. … Continue Reading
On 12 July 2022, there was published the ‘Financial Sanctions Evasion Typologies: Russian Elites and Enablers’ by the National Economic Crime Centre, a multi-agency unit in the National Crime Agency, and HM Treasury’s Office of Financial Sanctions Implementation, working in conjunction with law enforcement and financial sector partners as part of the Joint Money Laundering … Continue Reading
On 11 July 2022, there was published a letter by the Financial Conduct Authority (FCA) to the House of Commons’ Treasury Committee regarding the regulator’s financial sanctions responsibilities. In the letter, the FCA addresses its responsibilities for financial sanctions and covers the following topics: The current level of awareness and compliance at authorised firms of … Continue Reading
On 30 June 2022, the European Banking Authority (EBA) published updated guidelines on the data collection exercise on high earners. The updated guidelines reflects the amended remuneration framework laid down in the Capital Requirements Directive IV and the specific remuneration regime that has been introduced for investment firms under the Investment Firms Directive and Investment … Continue Reading
Over the course of the last few weeks, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority have continued to allot landing slots to firms that are currently providing services in the UK under the Temporary Permissions Regime (TPR). These landing slots usually provide a period of 3 months during which time the firm … Continue Reading
On 28 June 2022, the Financial Markets Standards Board issued a Statement of Good Practice on Trading Platform Disclosures. The Statement is intended to develop best practices around what platform operators should disclose to their participants. It builds on certain existing regulatory requirements and policy initiatives impacting platform operators and users, including relevant aspects of … Continue Reading
On 17 June 2022, Commission Delegated Regulation (EU) 2022/930 of 10 March 2022 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council by specifying fees relating to the supervision by the European Securities and Markets Authority of data reporting service providers, was published in the Official Journal of the European Union. … Continue Reading
UK regulated firms seeking to comply with the Russian sanctions have had to grapple with fast moving legislative and regulatory change, and have inevitably encountered governance challenges along the way. The lessons learned as part of that process have read across which may assist firms in reacting to future developments beyond sanctions. Conducting a governance … Continue Reading
On 25 May 2022, Duncan Mackinnon (Executive Director for Supervisory Risk Specialists) gave a speech at the City and Financial 9th Annual Operational Resilience for Financial Institutions Summit. In his speech Mr Mackinnon discusses where the PRA expects firms to focus on as they work towards building operational resilience by March 2025. By this time, … Continue Reading
On 19 May 2022, the European Securities and Markets Authority (ESMA) issued a final report on highly liquid financial instruments for central counterparty (CCP) investment policies under the European Market Infrastructure Regulation (EMIR). The final report has been published in response to a mandate that the European Commission issued on 18 May 2020 asking the … Continue Reading
The events in Ukraine and the economic sanctions imposed on Russia raise a number of issues that financial services firms will need to consider. Above and beyond the immediate challenges arising from the imposition of sanctions on clients and counterparties, firms may also need to address concerns about market conduct and systems and controls. This … Continue Reading
Following Brexit, European firms that were previously providing services in the UK (either through a UK branch or on a cross-border basis) in reliance upon passporting rights, are able to continue to do so under the UK’s temporary permissions regime (TPR) until they are assigned a “landing slot” by the PRA / FCA to apply … Continue Reading
