United Kingdom (and EU regulation)

Treasury Committee establishes Sub-Committee for scrutiny of financial services regulations

On 23 June 2022, the House of Commons’ Treasury Committee published a report on future parliamentary scrutiny of financial services regulations. The report provides that the Treasury Committee believes that the full impact of Brexit on the flow and volume of regulatory proposals in financial services is yet to be seen. However, the transfer of … Continue Reading

European Affairs Committee report on the UK-EU relationship in financial services

On 23 June 2022, the House of Lords’ European Affairs Committee published a report on the UK-EU relationship in financial services. The  report is based on an inquiry undertaken between February and April 2022. The scope of the inquiry included the impact so far on the UK financial services sector of the UK’s exit from … Continue Reading

FCA evaluation report – Supporting innovation in ESG data and disclosures: the digital sandbox sustainability pilot

On 23 June 2022, the FCA published an evaluation report regarding the digital sandbox sustainability pilot. The report provides an overview of the digital sandbox sustainability cohort and discusses the key lessons learned. The FCA also covers its current thinking for the future of the sandbox. The FCA is committed to establishing a permanent operating … Continue Reading

ESMA updated Q&As on the Market Abuse Regulation

On 23 June 2022, the European Securities and Markets Authority (ESMA) updated its Q&As on the Market Abuse Regulation (MAR). The ESMA has added a new answer concerning the scope of Article 11(1a) of the MAR. Specifically, the answer covers whether the scope of Article 11(1a) is limited to the communication of information to potential … Continue Reading

FCA data strategy update 2022

On 23 June 2022, the FCA published its data strategy update 2022. The FCA sets out where it has made progress and where it has more to do following the publication in January 2020 of its vision for the use of data and analytics. In terms of progress, the FCA reports that, among other things, … Continue Reading

EBA responds to Commission call for advice on the PSD2

On 23 June 2022, the European Banking Authority (EBA) responded to the European Commission’s call for advice on the review of the revised Payment Services Directive (PSD2). The EBA’s response takes the form of an opinion and a report and offers more than 200 proposals to help develop the EU retail payments market. The PSD2 … Continue Reading

Anti-money laundering: Regulation Around the World

In the latest instalment of our Regulation Around the World series, financial services partners in 13 jurisdictions provide an update on anti-money laundering developments. Our global updater is accompanied by further analysis and insights in our Regulation Around the World podcast which is available now to stream and download. The podcast features speakers from the … Continue Reading

Presidency final compromise text – Directive amending the AIFMD and the UCITS Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds

On 21 June 2022, the Council of the European Union published the Presidency’s final compromise text for the draft Directive amending the Alternative Investment Funds Managers Directive and the UCITS Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds.… Continue Reading

Commission adopts two equivalence decisions for Chinese and Israeli CCPs

On 22 July 2022, the European Commission adopted two equivalence decisions for central counterparties (CCPs) under the supervision of the People’s Bank of China and the Israel Securities Authority. Both equivalence decisions do not come into force until published in the Official Journal of the EU. The equivalence decisions follow the recent decisions adopted for … Continue Reading

PSR sets out the details for its work on card fees

On 21 June 2022, the Payment Systems Regulator (PSR) set out terms of reference for its plans to carry out two market reviews focusing on card fees. The terms of reference provide that, the reviews will focus on MasterCard and Visa, as these two card payment system operators account for 99% of debit and credit … Continue Reading

PRA Consultation Paper 6/22 ‘Model risk management principles for banks’

On 21 June 2022, the Prudential Regulation Authority (PRA) published Consultation Paper 6/22 ‘Model risk management principles for banks’ (CP6/22). In CP6/22 the PRA sets out its proposed expectations regarding bank’s management of model risk. The PRA has developed a proposed set of five principles (see below), which it considers to be key in establishing … Continue Reading

EBA draft principles assessing the representativeness of COVID-19-impacted data for banks using IRB models

On 21 June 2022, the European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19–impacted data for banks, using internal ratings based (IRB) models. These principles will be part of a supervisory handbook, which the EBA will publish later this year, with the objective to ensure a … Continue Reading

Commission Delegated Regulation supplementing the CRD IV with regard to RTS specifying the information to be provided in the application for the authorisation as a credit institution

On 17 June 2022, the European Commission published a Delegated Regulation supplementing the Capital Requirements Directive IV (CRD IV) with regard to regulatory technical standards (RTS) specifying the information to be provided in the application for authorisation as a credit institution, and specifying the obstacles which may prevent the effective exercise of supervisory functions of … Continue Reading

MEPs want to revive European long-term investment funds

On 20 June 2022, the European Parliament issued an announcement stating that its Economic and Monetary Committee had adopted new rules for long-term investment funds. Lead MEP, Michiel Hoogeveen has said on the matter, ‘While the legislative framework for European long-term investment funds (ELTIFs) was adopted in 2015, so far their market remains small…The Parliament … Continue Reading

Published in OJ: Commission Delegated Regulation (EU) 2022/954 of 12 May 2022 amending the RTS laid down in Delegated Regulation (EU) No 183/2014

On 21 June 2022, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2022/954 of 12 May 2022 amending the regulatory technical standards laid down in Delegated Regulation (EU) No 183/2014 as regards the specification of the calculation of specific and general credit risk adjustments. The Delegated Regulation adds … Continue Reading

European Commission considers Euro-clearing overhaul

On 16 June 2022 the European Commission hosted a meeting of the Derivatives and Market Infrastructures Member States Working Group, which is an expert group composed of Member States’ representatives. The agenda for the meeting included consideration of possible legislative and non-legislative measures to be developed in the context of the European clearing strategy announced … Continue Reading

Council agrees its position on updated rules for hedge funds, private debt funds, and other alternative investment funds

On 25 November 2021, the European Commission proposed a number of legislative amendments to the Alternative Investment Funds Manager Directive (AIFMD), the UCITS Directive and the Regulation on European long term investment funds, namely the “AIFMD 2 Proposal”. The AIFMD Proposal aims to improve the integration of asset management markets in Europe, while modernising the … Continue Reading

FPC confirms withdrawal of mortgage market affordability test

On 20 June 2022, the Bank of England confirmed that it will be withdrawing its mortgage affordability test recommendation. The withdrawal will come into effect from 1 August 2022. The mortgage affordability test was introduced in 2014 to guard against a loosening in mortgage underwriting standards and a material increase in household indebtedness. The test … Continue Reading

Outcomes FATF Plenary, 14-17 June 2022

On 17 June 2022, the Financial Action Task Force (FATF) published the outcomes of its plenary on 14 to 17 June 2022. Delegates from over 200 jurisdictions participated in the plenary and the FATF expressed its deepest sympathies for the people of Ukraine, and as a result of Russia’s invasion, the FATF agreed to severely … Continue Reading

Government responds to BNPL consultation

Introduction On 20 June 2022, HM Treasury published the government’s response to its October 2021 consultation on the regulation of Buy-Now Pay-Later (BNPL) products. The consultation was preceded by an announcement from the government in February 2021, indicating that it wanted to bring unregulated interest-free BNPL products within the scope of regulation given the potential … Continue Reading

FCA’s work on market abuse and manipulation

On 17 June 2022, in response to recent reports about their approach to market abuse and manipulation, the FCA published a new webpage providing an update on its work in this area. The webpage describes the FCA’s data-led approach plus its use of criminal and civil enforcement tools. Key points on the webpage include: Data: … Continue Reading

NCA/UKFUI revises guidance on SAR glossary codes and reporting routes

On 17 June 2022, the National Crime Agency (NCA) and the UK Financial Intelligence Unit (UKFIU) published updated guidance on suspicious activity report (SAR) glossary codes and reporting routes. The key points outlined in the updated guidance are as follows: The glossary codes are crucial for enabling the UKFIU and wider law enforcement to conduct … Continue Reading

FCA announces funeral plan providers likely to be authorised

On 17 June 2022, the FCA published a list of providers it intends to authorise when pre-paid funeral plans come within the scope of FCA regulation from 29 July. There are 24 firms on the list, including the largest funeral plan providers. Together, these firms hold approximately 87% of existing customer plans. From 29 July, … Continue Reading

Published in OJ – Delegated Regulation specifying fees relating to the supervision by the ESMA of data reporting service providers

On 17 June 2022, Commission Delegated Regulation (EU) 2022/930 of 10 March 2022 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council by specifying fees relating to the supervision by the European Securities and Markets Authority of data reporting service providers, was published in the Official Journal of the European Union. … Continue Reading
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