United Kingdom (and EU regulation)

ESAs propose disclosures for fossil gas and nuclear energy investments

On 30 September 2022, the three European Supervisory Authorities (ESAs) published a final report containing draft regulatory technical standards (RTS) regarding the disclosure of financial products’ exposure to investments in fossil gas and nuclear energy activities under the Sustainable Finance Disclosure Regulation (SFDR). The proposed RTS amend the RTS laid down in Delegated Regulation (EU) … Continue Reading

EBA response to the Commission on the current level of margins and of excessive volatility in energy derivatives markets

On 29 September 2022, the European Banking Authority (EBA) published its response to the European Commission’s earlier letter asking the European Supervisory Authority for its views on the current level of margins and of excessive volatility in energy derivatives markets. In summary the EBA states that: Banks are already providing significant levels of support to … Continue Reading

The FCA’s Consultation Paper on the perimeter of the definition of trading venue

There are three types of trading venue under MiFID II: Regulated Markets, Multilateral Trading Facilities and Organised Trading Facilities. MiFID II introduced a definition of multilateral system[1], still relevant in the UK, which is common to all types of trading venue and requires that all multilateral systems operate in accordance with Title II or Title … Continue Reading

All signs point to increased US regulation of Buy Now, Pay Later

Driven by an increase in online and mobile app shopping during the COVID-19 pandemic, the Buy Now, Pay Later (BNPL) market has experienced exponential growth as an innovative consumer offering, particularly for the unsecured credit market. The explosion of the BNPL market, however, is attracting scrutiny from financial services regulators concerned about the lack of … Continue Reading

FCA Handbook Notice No 102

On 30 September 2022, the FCA published Handbook Notice No 102. The Handbook Notice describes the changes to the FCA Handbook and other material made by the FCA Board under its legislative and other statutory powers on 15 July 2022 and 29 July 2022. Where relevant, it also refers to the development stages of that … Continue Reading

Commission Implementing Decisions on the equivalence of the regulatory framework for CCPs in Taiwan and Colombia

On 30 September 2022, there was published in the Official Journal of the European Union (OJ):  Commission Implementing Decision (EU) 2022/1684 of 28.9.22 on the equivalence of the regulatory framework for central counterparties in Taiwan to Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards Futures Clearing Houses under the … Continue Reading

Commission Delegated Regulation (EU) 2022/1671 extending the transitional period referred to in Article 89(1) of Regulation (EU) No 648/2012

On 30 September 2022, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2022/1671 of 9.6.22 extending the transitional period referred to in Article 89(1), first subparagraph, of the European Markets Infrastructure Regulation. The Delegated Regulation enters into force on the day following that of its publication in … Continue Reading

BoE speech – Message received and understood

On 29 September 2022, the Bank of England (BoE) published a speech by Dave Ramsden (Deputy Governor, Markets and Banking) entitled Message received and understood. In his speech Mr Ramsden focuses on the BoE’s responsibilities for payments and provides a real-life example of why having real-time data matters and points to how the BoE could … Continue Reading

EBA updates data used for the identification of G-SIIs

On 29 September 2022, the European Banking Authority (EBA) disclosed the data items used to identify global systemically important institutions within the EU. The EBA has published 13 indicators and updated underlying data for the 30 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200bn. Acting as a central data hub … Continue Reading

Net Zero review

On 29 September 2022, the Department for Business, Energy & Industrial Strategy (BEIS) announced that it has commissioned an independent review of the government’s approach to delivering its net zero target. The review will assess the economic co-benefits associated with different policies and how the government can drive down the cost curve for net zero … Continue Reading

ESRB to publish a report on whether bank capital requirements can be an effective tool for reducing carbon emissions

On 29 September 2022, the European Systemic Risk Board issued a press release reporting on the meeting that its general board held on 22 September 2022. At the meeting, the general board issued a warning on vulnerabilities in the EU’s financial system. The general board concluded that risks to the financial stability in the EU … Continue Reading

European Commission launches consultation on consumer rights – adapting out-of-court dispute resolution to digital markets

On 28 September 2022, the European Commission launched a consultation on consumer rights – adapting out-of-court dispute resolution to digital markets. The consultation aims to collect views of various interested organisations and businesses on how to increase the efficiency of retail markets in the EU, how to ensure a level playing field among traders operating … Continue Reading

European Commission launches consultation on consumer protection – strengthened enforcement cooperation

On 28 September 2022, the European Commission launched a consultation on consumer protection-strengthened enforcement cooperation. The consultation aims to collect the views of various interested organisations and businesses on how to increase the efficiency of retail markets in the EU, how to ensure a level playing field among all traders operating in this market, from … Continue Reading

Basel Committee publishes review of margining practices

On 29 September 2022, the Basel Committee on Banking Supervision (Basel Committee) published a report concerning a review of margining practices. Background In non-centrally cleared markets, the Basel Committee and the International Organisation of Securities Commissions (IOSCO) developed a framework that established minimum standards for margin requirements for non-centrally cleared derivatives (although not non-centrally cleared … Continue Reading

FCA announces decision on cessation of 1- and 6- month synthetic sterling LIBOR at end-March 2023

On 29 September 2022, the FCA announced that following its earlier consultation in June it will be requiring the continued publication of the 1- and 6-month synthetic sterling LIBOR settings for a further three months after the end of 2022, until 31 March 2023. The FCA adds that it has no intention to use its … Continue Reading

PSR Consultation Paper CP22/4 ‘Authorised push payment scams: Requiring reimbursement’

On 29 September 2022, the Payment Systems Regulator (PSR) published Consultation Paper 22/4 ‘Authorised push payment scams: Requiring reimbursement’ (CP22/4). Introduction Authorised Push Payment (APP) scams happen when fraudsters trick someone into sending a payment to a bank account controlled by a fraudster. Once a victim realises that they’ve been scammed it’s often too late … Continue Reading

European Commission adopts two additional equivalence decisions for non-EU jurisdictions

On 29 September 2022, the European Commission adopted two decisions determining that the legal and supervisory frameworks for central counterparties (CCPs) in Colombia and Taiwan are equivalent to the requirements applicable under the European Markets Infrastructure Regulation (EMIR). The decisions allow these CCPs to apply for recognition by the European Securities and Markets Authority (ESMA). … Continue Reading

What firms and customers can expect from the Consumer Duty and other regulatory reforms

On 29 September 2022, the FCA published a speech by Sheldon Mills (FCA Executive Director, Consumers and Competition) entitled What firms and customers can expect from the Consumer Duty and other regulatory reforms. Key points in the speech include: The Consumer Duty will be a significant shift in what the FCA expects of firms. It … Continue Reading

FCA updates webpage on the new benchmarks register

On 28 September 2022, the FCA updated their webpage on the new Benchmarks Register. The webpage now includes the following text: “Following Brexit, we have developed the new Benchmarks Register, which replaces the ESMA Register for UK supervised users, and UK and third country-based benchmark administrators that want their benchmarks to be used in the … Continue Reading

ESMA report on the review of the clearing thresholds under EMIR

On 28 September 2022, the European Securities and Markets Authority (ESMA) issued a feedback report on the review of the clearing thresholds under the European Markets Infrastructure Regulation (EMIR). The feedback report has been produced in response to Regulation (EU) 2019/834 (EMIR Refit) which introduced a mandate in EMIR for ESMA to periodically review the … Continue Reading

ECB guidelines on transferability to support the resolvability assessment for transfer strategies

On 28 September 2022, the European Banking Authority (EBA) published final guidelines on transferability to support the resolvability assessment for transfer strategies. The guidelines complement the EBA resolvability guidelines as regards resolution tools other than bail-in. They assess the feasibility and credibility of transfer strategies and encompass requirements relating to the implementation of transfer tools … Continue Reading

Innovation in post trade services – opportunities, risks and the role for the public sector

On 28 September 2022, the Bank of England published a speech by its Deputy Governor for Financial Stability, Sir Jon Cunliffe, entitled Innovation in post trade services – opportunities, risks and the role for the public sector. Key points in the speech include: In recent years, regulators and central banks have become increasingly focussed on … Continue Reading

ECB consults on guide of how to assess buyers of qualifying stakes in banks

On 28 September 2022, the European Central Bank (ECB) issued a public consultation on a draft guide which seeks to clarify how it assesses applications to acquire qualifying holdings in banks. The ECB intends for the guide to function as a user-friendly handbook. The guide explains who is obliged to undergo qualifying holding assessments, the … Continue Reading
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