United Kingdom (and EU regulation)

CMA provisional decision report on Investment Consultants Market Investigation

On 18 July 2018, the Competition and Markets Authority (CMA) published a provisional decision report concerning its investment consultants market investigation. The CMA is carrying out this investigation following a reference from the FCA in September 2017. The report states that the CMA has provisionally found that there is an adverse effect on competition and … Continue Reading

ESMA clarifies endorsement regime for non-EU credit ratings

On 18 July 2018, the European Securities and Markets Authority (ESMA) published supplementary guidance on the application of the endorsement regime for non-EU credit ratings under the Credit Rating Agencies Regulation. The supplementary guidelines assist EU credit rating agencies (CRAs) in assessing whether a third-country CRA’s internal requirements meet the as stringent as test. This … Continue Reading

ESMA issues RTS for implementation of the Prospectus Regulation

On 17 July 2018, the European Securities and Markets Authority (ESMA) published a final report containing final draft regulatory technical standards (RTS) under the Prospectus Regulation (PR). The final report follows an ESMA consultation paper that was published on 15 December 2017. The final draft RTS cover: key financial information for the summary of a … Continue Reading

FSB consults on the effects of reforms on infrastructure finance

On 18 July 2018, the Financial Stability Board (FSB) published a consultation report on the Evaluation of the effects of financial regulatory reforms on infrastructure finance. The consultation report presents the results of, and seeks comments on, the evaluation of the effects of financial regulatory reforms on infrastructure finance. The evaluation focuses on infrastructure finance … Continue Reading

BoE consults on term SONIA reference rates

On 17 July 2018, the Bank of England published a consultation paper by the Working Group on Sterling Risk-Free Reference Rates (Working Group) on term SONIA reference rates (TSRRs). The Working Group’s overall objective is to catalyse a broad-based transition from sterling Libor to SONIA by end-2021. SONIA is an overnight rate, whilst Libor is … Continue Reading

FCA approach to consumers and discussion paper on a new duty of care

On 17 July 2018, the FCA published FCA Mission: Approach to consumers which outlines the regulator’s approach to consumers (the document). The document follows on from the FCA’s Future Approach to Consumers consultation paper which discussed the regulator’s approach to regulating for retail consumers. The FCA sets out in the document its vision for well-functioning … Continue Reading

The Friendly Societies (Amendment) (EU Exit) Regulations 2018

On 17 July 2018, HM Treasury published The Friendly Societies (Amendment) (EU Exit) Regulations 2018 together with an explanatory memorandum. This instrument is made using the power in section 8 of the European Union (Withdrawal) Act 2018 in order to address failures of retained EU law to operate effectively or other deficiencies arising from the … Continue Reading

The Consumer Credit (Amendment) (EU Exit) Regulations 2018

On 17 July 2018, HM Treasury published The Consumer Credit (Amendment) (EU Exit) Regulations 2018 together with an explanatory memorandum. This instrument is made using the power in section 8 of the European Union (Withdrawal) Act 2018 in order to address failures of retained EU law to operate effectively or other deficiencies arising from the … Continue Reading

ESMA updates Q&As on Benchmarks Regulation

On 17 July 2018, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Benchmarks Regulation. The Q&As have been updated to amend the definitions of calculation agents (Q5.3) and regulated data benchmarks (Q5.7).… Continue Reading

ECON draft report on proposed Omnibus Regulation and proposed Regulation amending ESRB Regulation

On 18 July 2018, the European Committee on Economic and Monetary Affairs (ECON) published draft reports on the proposed: Omnibus Regulation; and Regulation amending the European Systemic Risk Board. The draft reports contain draft European Parliament legislative resolutions which provide suggested amendments to their respective instruments.… Continue Reading

Financial Regulators’ Powers (Technical Standards) (Amendment etc) (EU Exit) Regulations 2018: Brexit SI

On 16 July 2018, there was published on the legislation.gov.uk website a draft version of The Financial Regulators’ Powers (Technical Standards) (Amendment etc) (EU Exit) Regulations 2018, together with a draft explanatory memorandum. The draft Regulation is being made using the power in section 8 and schedule 4 of the European Union (Withdrawal) Act 2018 … Continue Reading

FCA publishes interim report in investment platforms market study

On 16 July 2018, the FCA published its interim report on its investment platforms market study. The FCA reports that it found a mixed picture following its review into the investment platform sector.  The market appears to be working well in many respects, for both advised and non-advised consumers, and customer satisfaction is currently high. … Continue Reading

Intergenerational challenges: what Mike and the Mechanics can teach us about pensions

On 16 July 2018, the FCA published a speech by Christopher Wollard (Executive Director of Strategy and Competition, FCA), Intergenerational challenges: what Mike and the Mechanics can teach us about pensions. Highlights in the speech include: demographic shifts and economic trends over the last 30 or so years have remade the social contract across the … Continue Reading

ESMA consults on guidelines on risk factors under the Prospectus Regulation

On 13 July 2018, the European Securities and Markets Authority (ESMA) published a consultation paper on guidelines on risk factors under the Prospectus Regulation, as mandated under Article 16(4) of the Prospectus Regulation. The draft guidelines expand on concepts and instructions provided for in Article 16 of the Prospectus Regulation, namely: specificity, materiality, corroboration and … Continue Reading

ESMA consults on technical advice on minimum information content for prospectus exemption

On 13 July 2018, the European Securities and Markets Authority (ESMA) published a consultation paper on draft technical advice on minimum information content for prospectus exemption. The consultation paper sets out a draft version of EMSA’s technical advice on the minimum information content of documents provided for the purpose of describing a takeover, merger or … Continue Reading

ESMA draft technical standards on the Securitisation Regulation’s STS notification requirements

On 16 July 2018, the European Securities and Markets Authority (ESMA) issued its first set of technical standards on simple, transparent and standardised securitisations (STS) under Articles 27(6), 27(7) and 28(4) of the Securitisation Regulation. The draft technical standards relate to: Regulatory Technical Standards (RTS) specifying the information that the originator, sponsor and SSPE are … Continue Reading

FSB questionnaire for prospective UPI service providers

On 16 July 2018, the Financial Stability Board (FSB) published a self-assessment questionnaire for prospective Unique Product Identifier (UPI) service providers, alongside an explanatory note. The primary purpose of the UPI is to identify the product that is the subject of a particular over-the-counter (OTC) derivatives transaction. A UPI would be assigned to each product, … Continue Reading

FSB report on crypto-assets

On 16 July 2018, the Financial Stability Board (FSB) has published a report describing international work on crypto-assets. The report follows a letter that FSB Chair Mark Carney sent to G20 Finance Ministers and Central Bank Governors in March noting that crypto-assets raise a host of issues around consumer and investor protection, as well as … Continue Reading

HM Treasury publishes advisory notice on money laundering controls in overseas jurisdictions

On 11 July 2018, HM Treasury published an advisory notice on money laundering and terrorist financing controls in higher risk jurisdictions. The notice replaces previous advisory notices issued by HM Treasury on the subject. The advisory notice refers to the two statements published by the Financial Action Task Force (FATF) identifying jurisdictions with strategic deficiencies … Continue Reading

Financial Services (Banking Reform) Act 2013 (Commencement No. 1) (England and Wales) Order 2018

On 13 July 2018, there was published on the legislation.gov.uk website, The Financial Services (Banking Reform) Act 2013 (Commencement No. 1) (England and Wales) Order 2018. The Order brings into force on 13 July 2018 the following provisions of the Financial Services (Banking Reform) Act 2013 (the Act): section 112 of the Act for all … Continue Reading

Commission adopts Delegated Regulations setting out RTS under Benchmarks Regulation

On 13 July 2018, the European Commission adopted ten Delegated Regulations setting out regulatory technical standards (RTS) under the Benchmarks Regulation (BMR): Commission Delegated Regulation (EU) supplementing the BMR with regard to RTS specifying further the contents of, and cases where updates are required to, the benchmark statement to be published by the administrator of … Continue Reading

ESMA consults on changes to tick size regime under MiFID II

On 13 July 2018, the European Securities and Markets Authority (EMSA) published a consultation paper on amendments to Commission Delegated Regulation (EU) 2017/588 (RTS 11). Under RTS 11, the minimum tick size applicable to shares and depositary receipts is calibrated to the average daily number of transactions on the most liquid market in the EU. … Continue Reading

Commission adopts legislation amending Commission Delegated Regulation on LCR

On 13 July 2018, the European Commission published a Delegated Regulation amending Delegated Regulation (EU) 2015/61 supplementing the Capital Requirements Regulation with regard to the liquidity coverage requirement for credit institutions (the Delegated Regulation). Commission Delegated Regulation (EU) 2015/61 (the LCR Delegated Regulation) entered into force on 1 October 2015 and specifies which assets are … Continue Reading

Delegated Regulation on investment requirements under MMF Regulation

On 13 July 2018, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2018/990 of 10 April 2018 amending and supplementing Regulation (EU) 2017/1131 of the European Parliament and of the Council with regard to simple, transparent and standardised (STS) securitisations and asset-backed commercial papers, requirements for assets received … Continue Reading
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