United Kingdom (and EU regulation)

PRA Policy Statement 22/21: Implementation of Basel standards: Final rules

By Jochen Vester (UK) and Simon Lovegrove (UK) on October 15, 2021 Posted in Capital adequacy, United Kingdom

On 14 October 2021, the Prudential Regulation Authority (PRA) published Policy Statement 22/21 ‘Implementation of Basel standards: Final rules’ (PS22/21). In Policy Statement 17/21 ‘Implementation of the Basel Standards’ (PS17/21), the PRA set out its feedback to responses and the resulting near-final policy following Consultation Paper 5/21 ‘Implementation of Basel standards’ which was published in … Continue Reading

BoE speech – Is ‘crypto’ a financial stability risk?

By Simon Lovegrove (UK) on October 14, 2021 Posted in Crypto assets, United Kingdom

On 13 October 2021, Sir John Cunliffe, Deputy Governor for Financial Stability at the Bank of England, gave a speech discussing the financial stability risk posed by crypto. Crypto is the underlying technology – the application of cryptographic innovation to the recording and to the transfer of the ownership of assets, often on public networks … Continue Reading

FSB publishes targets for enhancing cross-border payments

On 13 October 2021, the Financial Stability Board (FSB) published a press release announcing the publication of its first consolidated progress report covering the progress made during the first year of the G20’s Roadmap for Enhancing Cross-border Payments. The report highlights that most of the milestones set by the Roadmap for 2021 have been completed … Continue Reading

RT Plus Evolution and Divergence Series – Episode 2 on equities is out now

By Jonathan Herbst (UK) and Anna Carrier (BE) on October 14, 2021 Posted in Germany, Italy, Seminars, webinars and podcasts, The Netherlands, United Kingdom

The second episode in our special RT Plus series, Evolution and Divergence: Markets in the EU and UK, is out now to download and stream. In this mini-series, we are examining the evolution of the markets regime in both the UK and EU, drawing out any divergences are likely to emerge. In this episode, Jonathan … Continue Reading

House of Commons’ briefing paper – statistics on access to cash, bank branches and ATMs

By Simon Lovegrove (UK) on October 13, 2021 Posted in Banking, United Kingdom

On 12 October 2021, the House of Commons published a briefing paper titled, ‘Statistics on access to cash, bank branches and ATMs’. This briefing paper is comprised of statistics on cash use, access to cash, bank and building society branches, post offices and ATMs. Some of the headlines from the briefing paper include: Digital payments … Continue Reading

ESMA final report on technical standards on content and format of the STS notification for on-balance sheet securitisations

By Jochen Vester (UK) on October 13, 2021 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 12 October 2021, the European Securities and Markets Authority (ESMA) published a final report on technical standards specifying the content and format of the simple, transparent and standardised (STS) securitisation notification for on-balance sheet securitisations. Regulation (EU) 2021/557 amended the framework under the Securitisation Regulation (SECR) to on-balance sheet securitisations (also called synthetic securitisations). … Continue Reading

FCA sends ‘Dear CEO’ letter to Lloyd’s and London Market firms highlighting six potential harms

By Laura Hodgson (UK) on October 13, 2021 Posted in Insurance, United Kingdom

FCA sends ‘Dear CEO’ letter to Lloyd’s and London Market firms highlighting six potential harms The Financial Conduct Authority (FCA) has published a ‘Dear CEO’ letter written by Charlotte Cross, Head of Department, Wholesale Insurance, to the Lloyd’s and London Market portfolio of firms. The portfolio letter sets out six areas of harm that Lloyd’s … Continue Reading

FCA issues Warning Notices against three individuals for involvement in alleged pension scam

By Katie Stephen (UK) and Joe Smallshaw on October 13, 2021 Posted in Investigations and enforcement, United Kingdom

On 30 September 2021, the FCA published a Warning Notice Statement (21/2) in respect of Warning Notices that it had issued to three unnamed individuals on 10 August 2021 relating to their involvement in what the FCA describes as a pension scam. The FCA explained in the Warning Notice Statement that it considers that these … Continue Reading

New FCA webpage – Remote or hybrid working expectations for firms

By Simon Lovegrove (UK) on October 12, 2021 Posted in Regulation and compliance, United Kingdom

On 11 October 2021, the FCA published a new webpage concerning remote or hybrid working expectations for firms. The expectations on the webpage apply to existing firms, firms applying to be regulated and firms proposing to submit further applications, such as a waiver, variation of permission, change of control etc. In relation to existing firms … Continue Reading

Payments Landscape Review – response to the call for evidence

By Simon Lovegrove (UK) on October 12, 2021 Posted in Payment Services, United Kingdom

On 11 October 2021, the government published its response to the call for evidence to the 2020 Payments Landscape Review. The call for evidence was the first stage in the HM Treasury led review of the UK’s payments landscape which was announced in June 2019. The response sets out the government’s aims for payments networks … Continue Reading

PSR PS21/2: Consumer protection in interbank payments – response to CP21/4

By Simon Lovegrove (UK) on October 12, 2021 Posted in Payment Services, United Kingdom

On 11 October 2021, the Payment Systems Regulator (PSR) published Policy Statement 21/2: Consumer protection in interbank payments – response to CP21/4 (PS21/2). In February 2021, the PSR published a call for views on consumer protection in interbank payments (Consultation Paper 21/4: Consumer protection in interbank payments (CP21/4)). In CP21/4 the PSR set out its … Continue Reading

FSB report – Policy proposals to enhance money market fund resilience

On 11 October 2021, the Financial Stability Board (FSB) published a report which forms a key part of its work programme on non-bank financial intermediation. The policy proposals in the report aim to address systematic risk and minimise the need for future extraordinary central bank interventions to support the sector alongside enhancing money market fund … Continue Reading

The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2021

By Simon Lovegrove (UK) on October 12, 2021 Posted in Regulation and compliance, United Kingdom

On 11 October 2021, there was published on the legislation.gov.uk website The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2021 together with an explanatory memorandum. The Order amends the list of persons in Part 1 of the Schedule to the Financial Services and Markets Act 2000 (Exemption) Order 2001 (the Principal Order) to … Continue Reading

Commission Delegated Regulation supplementing MAR with regard to RTS containing a template document for cooperation arrangements with third countries

By Simon Lovegrove (UK) on October 12, 2021 Posted in France, Germany, Italy, Market Abuse, Market abuse, Market abuse, Market Abuse, Market abuse, The Netherlands, United Kingdom

On 11 October 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/1783 of 2 July 2021 supplementing the Market Abuse Regulation (MAR) with regard to regulatory technical standards (RTS) containing a template document for cooperation arrangements with third countries. Article 26(1) of MAR requires the competent authorities … Continue Reading

ESMA speech – ESMA as a data driven regulator and supervisor

By Simon Lovegrove (UK) on October 12, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 8 October 2021, the European Securities and Markets Authority (ESMA) published a speech by Natasha Cazenave (Executive Director, ESMA) in which she discussed the European Supervisory Authority’s priorities for 2022 including data. ESMA’s priorities for 2022 include: aiming to respond to challenges faced by the EU, its capital markets, and its investors; supporting three … Continue Reading

FSB letter to G20 Finance Ministers and Central Bank Governors

On 6 October 2021, the Financial Stability Board (FSB) published a letter from its chair to G20 Finance Ministers and Central Bank Governors. The letter focuses on two key areas of the FSB’s work: Developing a more resilient NBFI sector The letter notes that following the market turmoil in March 2020, the FSB agreed on … Continue Reading

FCA speech – Regulating for better outcomes – next steps in consumer credit

By Simon Lovegrove (UK) on October 11, 2021 Posted in Consumer credit, United Kingdom

On 8 October 2021, the FCA published a speech by Nisha Arora (Director of Consumer and Retail Policy, FCA) entitled Regulating for better outcomes – next steps in consumer credit. Key points in the speech include: It’s never been more important that the consumer credit market works well for consumers, firms and the economy. The … Continue Reading

PRA PS21/21: The UK leverage ratio framework

By Jochen Vester (UK) on October 11, 2021 Posted in Capital adequacy, United Kingdom

On 8 October 2021, the PRA published Policy Statement 21/21: The UK leverage ratio framework (PS21/21). PS21/21 is relevant to all firms subject to the Capital Requirements Regulation (CRR) and CRR consolidation entities on an individual, consolidated, and where relevant, sub-consolidated basis. In PS21/21 the PRA and Financial Policy Committee (FPC) provide their responses to … Continue Reading

PRA CP20/21: Trading activity wind-down

By Jochen Vester (UK) on October 11, 2021 Posted in Capital adequacy, United Kingdom

On 8 October 2021, the PRA published Consultation Paper 20/21: Trading activity wind-down (CP20/21). The proposals in CP20/21 are relevant, although may not apply directly, to all PRA authorised UK banks, their qualifying parent undertakings and PRA-designated investment firms that are engaged in trading activities, and relevant third country branches. In CP20/21 the PRA sets … Continue Reading

CPMI calls for ideas on solutions to expand PvP settlement

On 7 October 2021, the Committee on Payments and Market Infrastructures (CPMI) issued a call for ideas on payment-versus-payment (PvP) mechanisms. As part of the G20 cross-border payments roadmap, the CPMI is developing proposals for increased PvP adoption by encouraging enhancements to existing PvP arrangements and/or the design of new public and/or private sector solutions. … Continue Reading

FSB / IMF latest progress report on the G20 Data Gaps Initiative

On 8 October 2021, the Financial Stability Board and the International Monetary Fund co-published their sixth progress report on the G20 Data Gaps Initiative. Key messages in the progress report include: Significant progress has been achieved during phases 1 and 2 of the Data Gaps Initiative in closing identified policy-relevant data gaps. Although the initiative … Continue Reading

PRA statement on freezing O-SII buffer rates for a further year

By Jochen Vester (UK) on October 11, 2021 Posted in Capital adequacy, United Kingdom

On 8 October 2021, the PRA issued a statement confirming it was maintaining firms’ Other Systemically Important Institutions (O-SII) buffer rates at 2019 levels for a further year. The PRA is required to review O-SII buffer rates once a year, but the PRA states that barring an unforeseen change in circumstances, it does not currently … Continue Reading

Financial Policy Summary and Record of the FPC Meeting on 23 September 2021

By Simon Lovegrove (UK) on October 11, 2021 Posted in Banking, United Kingdom

On 8 October 2021, there was published the Financial Policy Summary and Record of the Financial Policy Committee (FPC) meeting on 23 September 2021. Among other things the document notes that the FPC is maintaining the UK countercyclical capital buffer (CCyB) rate at 0%. The FPC has previously stated that it expects to maintain a … Continue Reading

FCA publishes analysis of REP-CRIM data for the period between 2017 – 2020

By Katie Stephen (UK) on October 8, 2021 Posted in Investigations and enforcement, United Kingdom

On 7 October 2021, the FCA published an analysis of the annual financial crime data returns (REP-CRIM) for the 3 reporting periods between 2017 – 2020. For these periods the FCA received a total of 5,685 REP-CRIM submissions from over 2,300 different firms. The key observations of the analysis include: Firms reported approximately 89,000 Politically … Continue Reading