United Kingdom (and EU regulation)

London 40 minute briefing series – new dates for February 2018 to May 2018

We are pleased to announce the following new dates for our 40 minute briefing series: 7 February 2018: SMCR: the era of increased individual accountability 7 March 2018: Extended briefing – MiFID II: post implementation review 11 April 2018: The prudential academy 2 May 2018: FinTech: revolution in the financial services sector To find out … Continue Reading

PRA Dear Chair letter – follow-up to PRA Statement on consumer credit

On 4 July 2017, we blogged that the PRA published a Dear Chair letter which follows up on its Statement on consumer credit. The PRA statement raised ten issues for firms to consider and firms with material consumer credit exposures were required to respond to the PRA by September 2017, with responses to be approved by … Continue Reading

Commission Roadmap – Delegated Act on MMF Regulation

European Commission Roadmaps and inception impact assessments describe the scope, purpose and timing of new law and policies. They also set out plans for evaluations of existing laws or ‘fitness checks’ of multiple laws. The Commission has now published a Roadmap on the Delegated Act on the Money Market Funds Regulation (MMF Regulation) specifying quantitative … Continue Reading

Joint Committee of ESAs’ final guidelines under Wire Transfer Regulation

On 22 September 2017, the Joint Committee of the European Supervisory Authorities (ESAs) has published guidelines under Article 25 of the Wire Transfer Regulation on the measures payment service providers should take to detect missing or incomplete information on the payer or the payee, and the procedures they should put in place to manage a … Continue Reading

ECA special report – the operational efficiency of the ECB’s crisis management for banks

The supervision of large banks in the euro area is the responsibility of the European Central Bank (ECB). The Single Supervisory Mechanism (SSM), established in 2014, comprises the ECB and the national supervisory authorities of the participating Member States. The European Court of Auditors (ECA) has published a special report following an audit which examined … Continue Reading

EBA reports on implementation of guidelines on methods for calculating contributions to deposit guarantee schemes

The European Banking Authority has published a report on the implementation of its guidelines on methods for calculating contributions to deposit guarantee schemes. The report, which assesses Member State authorities’ compliance with the principles outlined in the guidelines, concludes that further analysis and greater experience of the risk-based systems in use is needed before proposing any … Continue Reading

EBA Risk Dashboard confirms steady improvements in the EU banking sector

The European Banking Authority has published its latest Risk Dashboard, providing data as of Q3 2017 on EU banks. Key messages include: in Q3 2017, EU banks continued to strengthen their capital ratios; the ratio of non-performing loans kept a modest downward trend; profitability indicators have improved slightly but sustainable returns remain elusive for many banks; … Continue Reading

Latest MiFID II Delegated Regulation published in OJ

There has been published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2018/63 of 26 September 2017 amending Delegated Regulation (EU) 2017/571 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards on the authorisation, organisational requirements and the publication of transactions for data … Continue Reading

Benchmark Regulation – Commission Delegated Regulations published in OJ

The following Commission Delegated Regulations have been published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2018/64 of 29 September 2017 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council with regard to specifying how the criteria of Article 20(1)(c)(iii) are to be applied for assessing whether certain … Continue Reading

EBA final guidelines on disclosure requirements of IFRS 9 transitional arrangements

The European Banking Authority (EBA) has published its final guidelines on disclosure requirements of International Financial Reporting Standard 9 (IFRS 9) or analogous expected credit losses (ECLs) transitional arrangements. The guidelines apply to institutions referred to in paragraph 1 of Article 473a of the Capital Requirements Regulation (CRR) that are subject to all or part … Continue Reading

ISDA updates Brexit FAQs

The International Swaps and Derivatives Association (ISDA) has updated its publicly available FAQs on Brexit. It has also updated the more in-depth Brexit FAQs for its membership. Among other things the FAQs asks what amendments, if any, should market participants consider making to their ISDA Master Agreement. The ISDA’s response is as follows: “None immediately. … Continue Reading

PRA Dear CFO letter – Transition disclosures for IFRS 9 ‘Financial Instruments’

The PRA has published a Dear CFO letter setting out its expectations as to the minimum transition disclosures for International Financial Reporting Standard 9’s expected credit loss accounting (ECL) requirements. The Dear CFO letter is addressed to the larger UK-headquartered credit institutions (Barclays Bank, HSBC, Lloyds Banking Group, Nationwide Building Society, Royal Bank of Scotland, … Continue Reading

ESMA thematic report on fees charged by Credit Rating Agencies and Trade Repositories

The European Securities and Markets Authority (ESMA) has published a Thematic Report on fees charged by Credit Rating Agencies (CRAs) and Trade Repositories (TRs). ESMA’s key areas of concern across the CRA and TR industries with regard to the fee provisions and where improvements are needed in the CRAs / TRs practices: transparency and disclosure: … Continue Reading

PAD technical standards

The following technical standards under the Payment Accounts Directive have been published in the Official Journal of the EU: Commission Delegated Regulation (EU) 2018/32 of 28 September 2017 supplementing Directive 2014/92/EU of the European Parliament and of the Council with regard to regulatory technical standards for the Union standardised terminology for most representative services linked … Continue Reading

ISDA updates Brexit FAQs

The International Swaps and Derivatives Association (ISDA) has updated its publicly available FAQs on Brexit. The ISDA has also updated the more in-depth Brexit FAQs for its membership The FAQs are helpful to those market participants that use the ISDA Master Agreement and cover the following key areas: contractual points under ISDA documentation; choice of … Continue Reading

FCA Dear CEO letter to providers and distributors of CFDs

The FCA has published a Dear CEO letter to providers and distributors of contracts for difference (CFDs) products. The Dear CEO letter follows a recent FCA review of the CFD market where it uncovered areas of serious concern. The FCA’s review assessed 19 firms that provide CFDs to intermediaries which in turn distribute this product … Continue Reading

ESMA issues list of trading venues temporarily exempted from open access under MiFIR

The European Securities and Markets Authority (ESMA) has published a list of those trading venues for which a temporary exemption from the open access provisions under Article 36(5) of MiFIR exists. The list will be updated in case of any changes, including where an exemption is renewed. View ESMA issues list of trading venues temporarily … Continue Reading

ESMA delays publication of double volume cap data

The European Securities and Markets Authority (ESMA) has decided to delay the publication of the data on the double volume cap (DVC) mechanism for January 2018. ESMA states that the current quality and completeness of the data does not allow for a sufficiently meaningful and comprehensive publication of double volume cap calculation, as required under … Continue Reading

AFME due diligence questionnaire to further standardise process for global custodians

The Association for Financial Markets in Europe (AFME) has published a revised version of its Due Diligence Questionnaire (DDQ) which harmonises and simplifies the process of completing questionnaires for global custodians. The revised DDQ now incorporates approximately 20 additional questions. In particular, an additional section has been added for when the recipient is providing global … Continue Reading

Who’s driving consumer credit growth?

The FCA has published its latest insight article entitled Who’s driving consumer credit growth? To build a better picture of what is driving consumer credit growth the FCA requested credit reference agency data for one in ten UK consumers. Having examined this data to assess possible risks from recent credit growth, the article summarises three … Continue Reading

PRA consults on MREL reporting

The PRA has published Consultation Paper 1/18: Resolution planning: MREL reporting (CP1/18). The purpose of the proposals in CP1/18 is to provide the PRA and the Bank of England (BoE) with information to monitor firms’ progress towards meeting the interim minimum requirement for own funds and eligible liabilities (MREL), and eventual compliance with end-state MREL … Continue Reading
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