Simon Lovegrove (UK)

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FCA publishes feedback to CP21/30 and consults on new rules and perimeter guidance

On 2 February 2023, the FCA published Consultation Paper CP23/5 Debt packagers: Feedback on CP21/30 and further consultation on new rules and perimeter guidance. Introduction In November 2021, the FCA published CP21/30 which proposed to ban debt packagers from receiving referral fees, after the FCA found evidence that that there was an acute conflict of … Continue Reading

PRA updates webpage on waivers and modifications of rules

On 2 February 2023, the Prudential Regulation Authority (PRA) updated its webpage on waivers and modifications of rules. The webpage includes updated information on the Modification by consent of Solvency II Reporting 2.2(1), which will exempt category 3 and 4 insurance firms from reporting to the PRA the solo templates provided in Solvency II Regulations … Continue Reading

UK sets out plans to regulate crypto and protect consumers

Introduction On 1 February 2023, HM Treasury issued its latest proposals concerning the regulation of cryptoassets. These proposals build on HM Treasury’s previous work which focused on stablecoins and the financial promotion of cryptoassets. They deliver on the government’s announcement last April setting out plans for the UK to become a global hub for cryptoasset … Continue Reading

BoE consults on proposals to move Senior Managers Regime forms from the PRA Rulebook

On 31 January 2023, the Bank of England (BoE) published Consultation Paper CP2/23 – Moving Senior Managers Regime forms from the Prudential Regulation Authority (PRA) Rulebook. CP2/23 sets out the PRA’s proposals to remove certain Senior Managers and Certification Regime (SM&CR) forms from the PRA Rulebook and to extend the length of employment history required … Continue Reading

EBA clarifies the application of strong customer authentication requirements to digital wallets

On 31 January 2023, the European Banking Authority (EBA) issued three new Q&As which together with three existing Q&As clarify the application of strong customer authentication (SCA) to the enrolment of a payment card to a digital wallet and to the initiation of payment transactions with digitised versions of a payment card. They also clarify … Continue Reading

EBA consultation on the amending ITS on supervisory reporting to introduce new IRRBB reporting

On 31 January 2023, the European Banking Authority (EBA) issued a consultation on draft implementing technical standards (ITS) on supervisory reporting with respect to the IRRBB. The draft ITS have been developed in accordance with Article 430(7) of the Capital Requirements Regulation, which mandates the EBA to develop uniform formats, definitions, frequencies and reference and … Continue Reading

ESMA consults on the review of the methodology on stress test scenarios for MMFs

On 31 January 2023, the European Securities and Markets Authority (ESMA) issued a consultation on the review of the methodology included in the guidelines on stress test scenarios under the Money Market Fund Regulation. The proposed changes concern amendments to the liquidity scenario which is intended to take into account the interaction between liquidity and … Continue Reading

Corrigendum to Commission Delegated Regulation of 5 October 2022 supplementing the CRR

On 30 January 2023 the Council of the EU published a Corrigendum to Commission Delegated Regulation of 5 October 2022 supplementing the Capital Requirements Regulation with regard to regulatory technical standards specifying the types of factors to be considered for the assessment of the appropriateness of risk weights for exposures secured by immovable property and … Continue Reading

Treasury Sub-Committee questions regulators on sustainable investments, financial advice and Solvency II

On 30 January 2023, the House of Commons’ Treasury Sub-Committee on Financial Services Regulation published correspondence between itself and the PRA and FCA on proposed changes to sustainable investments, broadening access to financial advice, and changes to bank reporting requirements. In relation to its new sustainability labelling proposals, the FCA has stated that one third … Continue Reading

ESMA guidelines on stress test scenarios under the MMF Regulation

On 27 January 2023, the European Securities and Markets Authority (ESMA) issued guidelines that apply in relation to Article 28 of the Money Market Funds Regulation and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by money market funds (MMFs) or managers of MMFs in accordance … Continue Reading

FCA updates webpage on Feedback Statement 22/11: Accessing and using wholesale data

On 30 January 2023, the FCA updated its webpage on Feedback Statement 22/11: Accessing and using wholesale data. Previously the FCA announced that it would aim to publish the findings of its trade data review alongside launching its wholesale data market study in January 2023. The reason for doing so was because of the resource … Continue Reading

Handbook Notice 106

On 27 January 2023, the FCA published Handbook Notice 106. This Handbook Notice discusses the following instruments that the FCA board approved on 26 January 2023: In relation to the latter instrument it makes changes to the Handbook so that only firms that would have been both significant IFPR firms and IFPRU investment firms under … Continue Reading

ESRB recommendation on vulnerabilities in the commercial real estate sector in the EEA

On 25 January 2023, the European Systemic Risk Board (ESRB) issued a recommendation on vulnerabilities in the commercial real estate sector in the EEA. The ESRB has also published a report entitled Vulnerabilities in the EEA commercial real estate sector. The ESRB recommends that EU and Member State competent authorities improve the monitoring of systemic … Continue Reading

Edinburgh Reforms – SMCR

As part of the Edinburgh Reforms the Chancellor of the Exchequer issued a Ministerial Statement which announced that the Government would launch a review of the Senior Managers and Certification Regime (SMCR) in Q1 2023. The SMCR was introduced by The Financial Services (Banking Reform) Act 2013 (which amended the Financial Services and Markets Act … Continue Reading

Science Based Targets publish financial sector and TCFD reporting guidance

On 19 January 2023, Science Based Targets (SBTi) published financial sector and TCFD reporting guidance. The SBTi guidance considers climate impact by using backward looking emission-based metrics to quantify financed emissions alongside forward-looking target-based metrics to identify carbon intensive holdings and evaluate alignment to 1.5°C plans and pathways.  The Task Force on Climate Related Financial … Continue Reading

FCA publish Occasional Paper 63: HFTs and dealer banks: liquidity and price discovery in FX trading

On 20 January 2023, the FCA published an Occasional Paper on HFTs and dealer banks: liquidity and price discovery in FX trading. In this Occasional Paper, the FCA characterises the liquidity provision and price discovery roles of dealers and high frequency traders (HFTs) in the FX spot market during the sample period between 2012 and … Continue Reading

EBA publishes report on high earners data as of end 2021

On 19 January 2023, the European Banking Authority (EBA) published a report on high earners data as of end 2021. Under the CRD IV and the Investment Firms Directive the EBA is required to publish aggregated data on high earners earning EUR 1 million or more per financial year. In this latest report the EBA … Continue Reading

FSB published progress report on the implementation of G20 non-bank financial intermediation reforms

On 18 January 2023, the Financial Stability Board (FSB) published its progress report on the implementation of G20 non-bank financial intermediation (NBFI) reforms. In 2013, the FSB working with standard-setting bodies, developed a framework and policy toolkit for strengthening the oversight and regulation of non-bank entities. The policy framework aimed to mitigate the potential systemic … Continue Reading

New Regulation Tomorrow podcast – Split the difference: Markets in EU and UK – what we should be expecting and hoping to see in 2023

In our new podcast series, Split the difference, which explores divergence between the EU and UK regimes in the markets space, Jonathan Herbst, Hannah Meakin, Anna Carrier and Floortje Nagelkerke provide an overview of what we should be expecting and hoping to see in 2023.… Continue Reading

New briefing note – Digital Operational Resilience for the Financial Sector (DORA): 10 things to know

On 16 January 2023, the Regulation on digital operational resilience for the financial sector (DORA) entered into force. As DORA is new and complex EU legislation we have published a new briefing note, Digital Operational Resilience for the Financial Sector (DORA): 10 things to know.… Continue Reading
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