United Kingdom (and EU regulation)

RTS on strong customer authentication and common and secure open standards of communication

On 13 March 2018, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2018/389 of 27 November 2017 supplementing Directive (EU) 2015/2366 of the European Parliament and of the Council with regard to regulatory technical standards for strong customer authentication and common and secure open standards of communication. The Delegated … Continue Reading

FCA publishes Discussion Paper on transforming culture in financial services

On 12 March 2018, the FCA published Discussion Paper 18/2: Transforming Culture in Financial Services (DP18/2). DP18/2 is a set of essays that discuss what a good culture in a firm might look like, the role of regulation and regulators, how firms might go beyond incentives, and how to change behaviour for the better. The … Continue Reading

BSB Statement of Principles for Strengthening Professionalism

On 12 March 2018, the Banking Standards Board (BSB) published a Statement of Principles for Strengthening Professionalism – the role of the firm. The principles are designed to challenge and support leaders of banks and building societies by providing a reference point against which they can evaluate their own policies and practices, and will also … Continue Reading

JMLSG publishes joint revisions to two sectors of Part II of its guidance

On 8 March 2018, the Joint Money Laundering Steering Group published proposed revisions to two sectors in Part II of its Guidance. The proposed revisions are to sector 12 (asset finance) and sector 17 (syndicated lending). The proposed amendments to not change the substance of the guidance but seek to describe in more current terms … Continue Reading

FSB supplementary guidance to standards on sound compensation practices

On 9 March 2018, the Financial Stability Board (FSB) published its supplementary guidance to its Principles and Standards on Sound Compensation Practices (P&S). The FSB states that the supplementary guidance is consistent with the P&S and provides guidance on better practice for addressing misconduct risk without adding any new or additional principles or standards. It … Continue Reading

Capital Markets Union: covered bonds, cross-border distribution of investment funds and cross-border transactions in claims and securities

Introduction On 12 March 2018, the European Commission published legislative proposals that are linked to the Capital Markets Union (CMU). The proposals are intended to boost the cross-border market for investment funds, promote the EU market for covered bonds as a source of long-term finance and ensure greater certainty for investors when dealing in cross-border … Continue Reading

UK Government statement regarding Gibraltar financial services firms

The UK Government has issued a statement confirming that it will guarantee Gibraltar financial services firms’ access to UK markets as now until 2020. Ahead of this, the UK Government will work closely with the Government of Gibraltar to design a replacement framework to endure beyond 2020 similarly based on shared, high standards of regulation, … Continue Reading

MiFID II: ESMA publishes double volume cap data

The European Securities and Markets Authority (ESMA) has published trading volumes and calculations regarding the double volume cap (DVC) under MiFID II and MiFIR. ESMA has published DVC calculations for January 2018 and February 2018. Based on this data, two caps will limit dark trading in equity and equity-like instruments, namely for: 17 instruments for … Continue Reading

Commission proposal for a Regulation on European crowdfunding services providers

The European Commission has published a proposal for a Regulation on European crowdfunding services providers. The legislative proposal for a European crowdfunding regime is not intended to interfere with national bespoke regimes or existing licences, including those under MiFID II, the PSD2 or the AIFMD, but rather to provide crowdfunding service providers with the possibility … Continue Reading

Commission Action Plan on FinTech

The European Commission has issued an Action Plan for FinTech. The Action Plan is part of the Commission’s efforts to build a Capital Markets Union and has three main objectives: to support innovative business models to scale up across the Single Market; to encourage the uptake of new technologies in the financial sector; and to … Continue Reading

EBA consultation on how to manage non-performing exposures

The European Banking Authority (EBA) has issued a consultation on its draft guidelines for credit institutions on how to effectively manage non-performing exposures (NPEs) and forborne exposures (FBEs). The guidelines are designed primarily to reduce NPEs on banks’ balance sheets by providing supervisory guidance to ensure that credit institutions effectively manage NPEs and FBEs in … Continue Reading

European Council adopts directive to delay IDD until October 1

The European Parliament voted on March 1, 2018 to adopt a directive to delay the implementation of the Insurance Distribution Directive until October 1, 2018. Today (March 9, 2018), the European Council has adopted the directive agreed by the Parliament with the effect that European Member States must implement the IDD into national law by … Continue Reading

The Building Societies (Restricted Transactions) (Amendment to the Prohibition on Entering into Derivatives Transactions) Order 2018

There has been published on the legislation.gov.uk website, The Building Societies (Restricted Transactions) (Amendment to the Prohibition on Entering into Derivatives Transactions) Order 2018. The Order amends the prohibition in section 9A(1)(c) of the Building Societies Act 1986 (Act) on building societies, or subsidiary undertakings of building societies from entering into any transaction involving derivative … Continue Reading

Chancellor’s speech: financial services

The Chancellor of the Exchequer, Philip Hammond, has made a speech on Brexit and financial services. In his speech Mr Hammond states that the implementation period is expected to be formalised at the March European Council meeting. He warns that the implementation period is “essential” for a smooth pathway to a future partnership between the … Continue Reading

IOSCO consults on recommendations to help trading venues manage extreme volatility

The International Organization of Securities Commissions (IOSCO) has published a consultation report on mechanisms used by trading venues to manage extreme volatility and preserve orderly trading. The consultation report explores the measures currently being used by trading venues in IOSCO member jurisdictions to address the risks to orderly markets resulting from extreme volatility events. In … Continue Reading

FCA benchmark application forms, notes and checklists

The FCA has finalised application forms, notes and checklists for: Benchmark administrators – application for authorisation; Benchmark administrators – application for registration; and Benchmark administrators – application for registration. The FCA has also published a checklist for application to endorse benchmarks in a third country. View Benchmark Administrator Application Form, 28 February 2018 View Benchmark … Continue Reading

Wolfsberg Group updates CBDDQ

The Wolfsberg Group has published an updated version of its Correspondent Banking Due Diligence Questionnaire (CBDDQ) and related guidance material (Completion Guidance, FAQs and Glossary). The CBDDQ aims to set an enhanced and reasonable standard for cross-border and / or other higher risk Correspondent Banking Due Diligence, reducing to a minimum any additional data requirements. … Continue Reading

Basel III monitoring report

The Basel Committee on Banking Supervision has published its latest Basel III monitoring report based on data as of 30 June 2017. The report includes a special feature on the results on the impact of the final standards on securitisation including the July 2016 revisions on simple, transparent and comparable transactions. In summary the report … Continue Reading

FSB publishes updated data on correspondent banking relationships

The Financial Stability Board (FSB) has published updated data on correspondent banking relationships using data provided by SWIFT. The data is published as part of the FSB’s action plan to assess and address the decline in correspondent banking relationships. The FSB finds that the reduction in the total number of active correspondents, as measured by … Continue Reading

FCA product governance review in small and medium sized banks

The FCA has updated its webpage concerning its thematic review of product governance in small and medium-sized banks. The thematic review looked at two-year fixed rate savings products from a sample of small to medium-sized banks. It focused particularly on how firms’ product governance frameworks help them identify and manage the ongoing conduct risks of … Continue Reading

HM Treasury AML / CTF supervision report 2015-17

HM Treasury has published its latest anti-money laundering and counter-terrorist financing (AML / CTF) supervision report covering 2015 to 2017. The report incorporates activity undertaken in 2015/16 and 2016/17, which supervisors provided to support the UK’s submission to the Financial Action Task Force (FATF), to demonstrate the effectiveness of the UK’s supervisory regime. The report … Continue Reading