United Kingdom (and EU regulation)

FCA and HM Treasury speeches at Which? Consumer Group Cash Summit

On 13 May 2021, both the FCA and HM Treasury published speeches delivered at the Which? Consumer Group Cash Summit. FCA speech The FCA speech is by Sheldon Mills (FCA Executive Director, Consumers and Competition) entitled Protecting access to cash and banking services. In his speech Mr Mills briefly sets out the current state of … Continue Reading

FCA and BoE encourage market participants in a switch to SONIA in the sterling exchange traded derivatives market from 17 June 2021

On 13 May 2021, the FCA and the Bank of England (BoE) issued a statement supporting and encouraging market users and liquidity providers in the sterling exchange traded derivatives market to switch the default traded instrument to SONIA instead of LIBOR from 17 June 2021. This is to facilitate a further shift in market liquidity … Continue Reading

HM Treasury factsheets on Dormant Assets Bill

On 13 May 2021, HM Treasury published two factsheets that provide an overview of the Dormant Assets Bill, which will allow the inclusion of additional assets from across the insurance and pensions, investment and wealth management, and securities sectors in the Dormant Assets Scheme. The first factsheet provides an overview of the Bill whilst the … Continue Reading

EBA speech – The implementation of Basel III in the post-COVID 19 setting

On 12 May 2021, the European Banking Authority (EBA) published a speech given by its chairperson, Jose Manuel Campa, entitled The implementation of Basel 3 in the post-COVID 19 setting. In his speech Mr Campa covers: The measures taken in relation to the COVID-19 pandemic. In particular, Mr Campa states that on “the return to … Continue Reading

FSCS confirms latest 2021/22 levy forecast of £833m

On 13 May 2021, the Financial Services Compensation Scheme (FSCS) published its latest Outlook report, which confirms its updated levy forecast for 2021/22. Based on the latest data available, the FSCS has now revised its levy forecast for 2021/22 to £833m. This reforecast is £206m lower than the indicative levy announced in January. There are … Continue Reading

EBA report on convergence of supervisory practices in 2020

On 12 May 2021, the European Banking Authority (EBA) published a report on convergence of supervisory practices in 2020. In the context of the supervisory review and evaluation process (SREP), the EBA is mandated to annually report to the European Parliament and the Council on the degree of convergence of the application of the supervisory … Continue Reading

Draft SI – The Financial Markets and Insolvency (Transitional Provision) (EU Exit) (Amendment) Regulations 2021

On 13 May 2021, there was published on legislation.gov.uk a draft of The Financial Markets and Insolvency (Transitional Provision) (EU Exit) (Amendment) Regulations 2021. The purpose of the draft statutory instrument is to ensure that there is continuity for UK firms and their customers who rely on EEA systems retaining settlement finality protection as a … Continue Reading

FCA moves to a new data collection platform, RegData

On 11 May 2021, the FCA updated its webpage concerning the latest news and updates concerning RegData and Gabriel. The FCA reports that it has replaced Gabriel with RegData, its new data collection platform for gathering regulatory data from firms. All 52,000 firms that provided regulatory submissions in Gabriel now need to use RegData.… Continue Reading

Finalised Guidance 21/4: Guidance for insolvency practitioners on how to approach regulated firms

On 12 May 2021, the FCA published Finalised Guidance 21/4: Guidance for insolvency practitioners on how to approach regulated firms (FG21/4). The FCA has also published a Feedback Statement  on its earlier guidance consultation on how insolvency practitioners should approach regulated firm failures. The Feedback Statement sets out the FCA’s response to the feedback received … Continue Reading

Private sector working group on euro risk-free rates publishes recommendations on EURIBOR fallbacks

On 11 May 2021, the working group on euro risk-free rates published its recommendations addressing events that would trigger fallbacks in EURIBOR-related contracts, as well as €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered). The recommendations are based on the feedback that the working group received following two public … Continue Reading

ESMA consults on its MiFID II / MiFIR annual report

On 12 May 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper seeking views from market participants on its MiFID II / MiFIR annual review report under Commission Delegated Regulation (EU) 2017/583 (RTS 2). The consultation paper sets out ESMA’s assessment of the operation of the thresholds for the liquidity determination of … Continue Reading

The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2021

On 12 May 2021, there was published on legislation.gov.uk The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2021 (the Order) together with an explanatory memorandum. Paragraph 6A of the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (CIS Order) provides that regulated peer to peer … Continue Reading

Taking our second chance to make MMFs more resilient – speech by Andrew Bailey

On 12 May 2021, the Bank of England published a speech by Andrew Bailey entitled Taking our second chance to make MMFs more resilient. In his speech Mr Bailey explains how money market funds (MMFs) magnified some of the economic shocks caused by the COVID-19 pandemic. He also discusses the ways regulators around the world … Continue Reading

Commission Implementing Regulation laying down ITS for the application of the CRR with regard to the supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities

On 12 May 2021, there was published in the Official Journal of the EU (OJ), Commission Implementing Regulation (EU) 2021/763 of 23 April 2021 laying down implementing technical standards (ITS) for the application of the Capital Requirements Regulation (CRR) with regard to the supervisory reporting and public disclosure of the minimum requirement for own funds … Continue Reading

Episode 7 of the Regulation Tomorrow Podcast is out now

Episode 7 of the Regulation Tomorrow podcast is now available to listen to and download. In this month’s podcast we speak to Celia Cohen in New York about recent enforcement trends in the US, with a focus on whistle-blowing; we hear from Anna Carrier in Brussels who discusses the new European commodities regime and we … Continue Reading

Mobile data and investigations

Remote working has accelerated the merger of work and private data, particularly on mobile phones and instant messaging services such as WhatsApp. While employees are performing their jobs, mobile access may be putting their employers at risk – because work-related communications on unapproved platforms are frequently not preserved in accordance with regulatory requirements (where applicable), … Continue Reading

Updated FCA webpage – changes to regulatory reporting during coronavirus

On 11 May 2021, the FCA updated its webpage regarding changes to regulatory reporting during coronavirus. The update states that due to the challenges faced by firms and their auditors preparing audited financial statements during the COVID-19 pandemic, the FCA will allow flexibility in the submission deadline for FIN-A (annual report and accounts). For this … Continue Reading

FCA updated webpage – statement on the operation of the MiFID markets regime

On 10 May 2021, the FCA updated its statement on the operation of the MiFID markets regime. The update provides that the FCA has published its non-equity transparency results for the UK. These results cover the 2021 annual bonds threshold assessment, the May 2021 quarterly bonds liquidity determination and the 2021 annual derivatives threshold and … Continue Reading

UNEPFI guidance on financial inclusion and financial health target setting

On 11 May 2021, the United Nations Environment Programme published guidance on financial inclusion and financial health target setting. The guidance supports signatory banks in their efforts to set targets for financial inclusion and financial health, in line with the requirements of the Principles for Responsible Banking. Using the guide, banks can understand how to … Continue Reading

Commission report on the MCD

On 11 May 2021, the European Commission published a report that it had sent to the European Parliament and the Council on the review of the Mortgage Credit Directive (MCD) together with an annex. The report has been prepared under Article 44 MCD, which requires the Commission to review the effectiveness and appropriateness of the … Continue Reading

BoE speech – Descending safely: Life after Libor

On 11 May 2021, the Bank of England published a speech by its Governor, Andrew Bailey, entitled Descending safely: Life after Libor. In his speech Mr Bailey focuses on the transition away from Libor and covers: Developments in sterling markets. The use of forward looking term risk-free rates. Moving to the most robust reference rate. … Continue Reading
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