United Kingdom (and EU regulation)

Dear Board of Directors letter to debt firms published by the FCA

On 18 January 2021, the FCA wrote to the board of directors at debt firms (being debt purchase, debt collection and debt administration firms) to set out they key risks associated with these types of firms, the FCA’s expectations of them and how it plans to supervise the sector. In spite of the impact of … Continue Reading

The FCA publishes its first report on consumer investments data

The FCA published a report today on its consumer investments data review, covering the period between 1 January and 31 October 2020. The report details the action the FCA has taken over the same period, in line with its consumer investment objectives, stated as: Stopping and disrupting firms causing consumer harm; Supporting and guiding consumers … Continue Reading

EBA consults on guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate EU parent undertakings under Article 21b of CRD IV

On 15 January 2021, the European Banking Authority (EBA) issued a consultation paper on draft guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate EU parent undertakings as laid down in the CRD IV. Article 21b of the CRD IV sets out a requirement for institutions belonging to … Continue Reading

Inquiry on the future UK-EU relations on trade in services launched

On 15 January 2021, the House of Commons’ EU Services Sub-Committee launched its inquiry into the future of UK-EU relations on trade in services. The inquiry will examine the impact of the provisions set out in the UK-EU Trade and Cooperation Agreement on the UK’s services sector. The service sectors of interest to the Committee’s … Continue Reading

ESAs letter to Commission on priority issues relating to SFDR application

On 15 January 2021, the Joint Committee of the European Supervisory Authorities (ESAs) published a letter it had sent to the European Commission concerning priority issues relating to the draft regulatory technical standards (RTS) under Regulation 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR). The letter reports that areas of uncertainty have been … Continue Reading

REMIT requirements for the registration of Registered Reporting Mechanisms

On 15 January 2021, the EU Agency for the Cooperation of Energy Regulators (ACER) announced that it had updated its requirements’ document for Registered Reporting Mechanisms (RRMs) and will resume their registration. ACER’s announcement follows the adoption and entry into application of the European Commission’s Decision on fees due to ACER for collecting, handling, processing … Continue Reading

ECA special report – Resolution planning in the SRM

On 15 January 2021, the European Court of Auditors (ECA) published a special report on resolution planning in the Single Resolution Mechanism (SRM).   In 2017, the ECA conducted its first audit report assessing whether the Single Resolution Board (SRB) was equipped to carry out the resolution of significant banks effectively. To inform policymakers and … Continue Reading

FCA publishes Defined Benefit Advice Assessment

On 15 January 2021, the FCA published a Defined Benefit Advice Assessment Tool (DBAAT). Supervising defined benefit (DB) transfers has been a key priority for the FCA since the pension reforms, commonly known as the ‘pension freedoms’, were introduced in 2015. The DBAAT is designed to help firms and pension transfer specialists understand the FCA’s … Continue Reading

JMLSG note – the implication of the end of the Brexit transition period on JMLSG guidance

On 14 January 2021, the Joint Money Laundering Steering Group (JMLSG) issued a note concerning the impact of the end of the Brexit transition period on its guidance. The note explains that the JMLSG guidance is based on The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) (as … Continue Reading

FMLC letter on the Financial Services Bill

On 13 January 2021, the Financial Markets Law Committee (FMLC) published a letter it had sent to HM Treasury concerning the Financial Services Bill (Bill). In the letter the FMLC draws HM Treasury’s attention to the following areas of legal uncertainty within the Bill’s provisions: Clause 36 of the Bill is designed to fix a … Continue Reading

Non-performing loans: vote on EU rules for selling NPLs to third parties

On 14 January 2021, the European Parliament announced that its Economic and Monetary Affairs Committee (ECON) had agreed on the text of the draft Directive on credit servicers, credit purchasers and the recovery of collateral. The ECON MEPs have also agreed to start negotiations with the Council and the European Commission on the draft text. … Continue Reading

FCA updates statement on MoUs with European authorities

On 14 January 2021, the FCA updated its statement on memoranda of understanding (MoUs) with European authorities in the areas of securities, investment services and asset management, insurance and pensions, and banking by adding links to the following: MoU between the European Banking Authority, the Bank of England and the FCA. MoU between the European … Continue Reading

Part II: Navigating the US presidential transition – cross-border business and regulatory perspective

United States | January 26, 2021 | 10:00 am ET | 3:00 pm GMT In the second installment of our post-election webinar series, George E. Pataki, former Governor of New York, and Sam Ramer, former Senior Associate Counsel to President Trump, will consider the latest developments regarding the US presidential election. With one party now … Continue Reading

Webinar: A practical guide to navigating the new UK post-Brexit regime

Wednesday, 3 February 2021 | 08:45am – 09:30am GMT On 3 February we will be holding a webinar exploring the architecture of the UK regulatory regime following the end of the transition period, the regulatory rules that apply to firms, and where to find this material. In theory, it should be simple as the UK … Continue Reading

FCA proposes update to guidance on mortgages and consumer credit repossessions

On 12 January 2021, the FCA announced that it was conducting a short consultation regarding updating its guidance for firms on the treatment of mortgage and consumer credit customers facing repossession. The FCA’s current guidance on mortgage repossessions means firms should not enforce repossessions before 31 January 2021 except in exceptional circumstances, such as a … Continue Reading

The Markets in Financial Instruments (Switzerland Equivalence) Regulations 2021

On 13 January 2021, there was published on legislation.gov.uk The Markets in Financial Instruments (Switzerland Equivalence) Regulations 2021 together with an explanatory memorandum. The statutory instrument specifies that the legal and supervisory framework for stock exchanges in Switzerland meet at least equivalent outcomes to the UK’s corresponding regime. It will allow UK investment firms subject … Continue Reading

Financial Crime Outlook: 2021 and beyond

Senior management and boards are increasingly acknowledging the threat of financial crime as a critical risk to their business that must be addressed. This has been exacerbated in the last 12 months through the impact of the pandemic as well as rising domestic and international tensions. Norton Rose Fulbright’s financial crime compliance specialists, located in … Continue Reading

ECB finalises guide on supervisory approach to consolidation

On 12 January 2021, the European Central Bank (ECB) published a final guide outlining its supervisory approach to consolidation in the banking sector, following a public consultation which ended on 1 October 2020. The ECB has also published a feedback statement setting out its views on respondents’ comments on the consultation. With the final guide, … Continue Reading

HM Treasury letter to the Chair of the Lord’s EU Committee regarding EMIR 2.2 and the recognition of CCP

On 12 January 2021, HM Treasury published a letter from John Glenn MP (Economic Secretary to HM Treasury) to Lord Kinnoull (Chair of the European Union Committee, House of Lords) providing information on the following: The deficiencies identified in the EU’s delegated acts implementing EMIR 2.2 and the timescale for introduction of EMIR 2.2 regulations … Continue Reading

Responsible openness: The PRA’s approach to supervising banks – speech by David Bailey

Following our recent blog on the PRA’s new consultation on international banks, the regulator has issued a speech by David Bailey (PRA Executive Director, Financial Market Infrastructure) on the same topic. In his speech Mr Bailey describes in more detail the concept of responsible openness which Sam Woods first described in his 2019 Mansion House … Continue Reading

New FCA and PRA webpages – The final countdown – Completing sterling LIBOR transition by end-2021

On 11 January 2021, the FCA issued a new webpage The final countdown: Completing sterling LIBOR transition by end-2021. On the webpage the FCA warns firms that 2021 is the critical year for firms to complete their transition away from LIBOR. The LIBOR administrator, ICE Benchmark Administration, is consulting on ceasing publication of all sterling … Continue Reading

ICE Benchmark Administration Launches ICE Term SONIA Reference Rates as a Benchmark for Use in Financial Instruments

On 11 January 2021, ICE Benchmark Administration announced the launch of its ICE Term SONIA Reference Rates (ICE TSRR) as a benchmark for use in financial instruments by licensees. The ICE TSRR are designed to measure expected (i.e. forward-looking) SONIA rates over one, three, six and 12 month tenor periods, and are based on a … Continue Reading

Consultation Paper 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’

Introduction On 11 January 2021, the PRA published Consultation Paper 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’ (CP2/21). The proposals in CP2/21 are relevant to existing or prospective PRA authorised banks and designated investment firms that are headquartered outside of the UK or are part of a group based outside of … Continue Reading

Adding a new sub-fund to an umbrella scheme in the TMPR – update

On 3 December 2020, we reported that the FCA had published a new webpage in which it explained the proposed process for adding a new sub-fund to an umbrella scheme that will be in the temporary marketing permissions regime (TMPR). On 31 December 2020, the FCA updated its webpage by inserting links to the final … Continue Reading