United Kingdom (and EU regulation)

Central clearing: Three lessons and a path forward – speech by Christina Segal-Knowles

On 19 May 2022, Christina Segal-Knowles gave a speech at the European Association of CCP Clearing Houses (EACH) in Brussels. The speech addressed central clearing, and the lessons that can be learnt from recent episodes of market stress in order to make central clearing stronger. The speech highlights how, going forward, cross border cooperation is … Continue Reading

Trilogue discussions on the proposed “travel rule” for crypto-assets continue

By Simon Lovegrove (UK) on May 23, 2022 Posted in Fintech, Fintech, Fintech, Fintech, Fintech, France, Germany, Italy, The Netherlands, United Kingdom

On 28 April 2022, a first political trilogue on the proposed regulation on information accompanying transfer of funds and certain crypto-assets (Transfer of Funds Regulation) took place between the European Commission, the Council and the European Parliament. By way of background, the proposed legislation seeks to implement in European law the so called “travel rule” … Continue Reading

ESMA updates Q&As

By Simon Lovegrove (UK) on May 23, 2022 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

On 20 May 2022, the European Securities and Markets Authority updated the following Q&As: Application of the Alternative Investment Fund Managers Directive. Application of the UCITS Directive. Implementation of the Regulation on improving securities settlement in the EU and on central securities depositories. On the European crowdfunding service providers for business Regulation. On MiFID II … Continue Reading

Listening up to level up – regulating finance for the whole of the UK

By Simon Lovegrove (UK) on May 23, 2022 Posted in Regulation and compliance, United Kingdom

On 20 May 2022, Charles Randell, chair of the FCA and PSR, gave a speech at the Centre for Commercial Law Studies at Queen Mary University of London, highlighting the need to listen to the diverse needs of the people in order to level up the UK. The key points of the speech are as … Continue Reading

Delegated Regulation amending Commission Delegated Regulation 2015/61 supplementing the CRR with regard to the liquidity coverage requirement for credit institutions

By Jochen Vester (UK) and Simon Lovegrove (UK) on May 23, 2022 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 20 May 2022, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2022/786 of 10 February 2022 amending Commission Delegated Regulation 2015/61 supplementing the Capital Requirements Regulation (CRR) with regard to the liquidity coverage requirement for credit institutions. Commission Delegated Regulation 2015/61 (LCR Delegated Regulation) is applicable to all … Continue Reading

ESMA issues four consultations on CCP resolution regime

By Hannah Meakin (UK) on May 23, 2022 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 19 May 2022, the European Securities and Markets Authority (ESMA) issued four consultation papers on proposed guidelines for the EU central counterparty (CCP) resolution regime. The consultation papers cover draft guidelines on: The summary of resolution plans. The guidelines provide resolution authorities with guidance as to the type of information that should be included … Continue Reading

SRB Addendum to the Public Interest Assessment – Deposit Guarantee Schemes Considerations

By Michael Born (DE) on May 23, 2022 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 20 May 2022, the Single Resolution Board (SRB) announced an enhancement to its approach to the Public Interest Assessment (PIA) policy in resolution planning. The PIA is one of the key policies underpinning the work of the SRB. It examines whether the resolution of a particular EU bank that is failing, or likely to … Continue Reading

Targeted consultation on the regime applicable to the use of benchmarks administered in a third country

By Simon Lovegrove (UK) on May 23, 2022 Posted in Benchmarks, France, Germany, Italy, The Netherlands, United Kingdom

On 20 May 2022, the European Commission issued a targeted consultation seeking views on further potential improvements in the functioning of the Benchmarks Regulation (BMR), specifically as regards the rules applicable to non-EEA benchmarks and the impact on market participants of the full entry into application of the third country regime as of 1 January … Continue Reading

HM Treasury summary responses to access for cash consultation

By Simon Lovegrove (UK) on May 20, 2022 Posted in Banking, United Kingdom

On 19 May 2022, HM Treasury issued a summary of the responses to its earlier access to cash consultation. The document also sets out the government’s planned approach to legislating for access to cash in the Financial Services and Markets Bill. In summary, HM Treasury intends to designate firms for the purpose of ensuring continued … Continue Reading

FCA PS22/5 ‘New cancellation and variation power: Changes to the Handbook and Enforcement Guide’

By Simon Lovegrove (UK) on May 20, 2022 Posted in Regulation and compliance, United Kingdom

On 19 May 2022, the FCA published Policy Statement 22/5 ‘New cancellation and variation power: Changes to the Handbook and Enforcement Guide’ (PS22/5). The Financial Services Act 2021 inserted a new Schedule 6A into the Financial Services and Markets Act 2000 (FSMA). This schedule sets out a new power allowing the FCA to more quickly … Continue Reading

ESMA final report on the relevance of extending the transitional period set out in Article 48 of the EU Crowdfunding Regulation

By Simon Lovegrove (UK) on May 20, 2022 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

On 19 May 2022, the European Securities and Markets Authority (ESMA) issued a final report regarding the relevance of extending the transitional period set out in Article 48 of the EU Crowdfunding Regulation (ECSPR). The final report has been issued in response to a formal request that the ESMA received from the European Commission to … Continue Reading

ESMA report on highly liquid instruments

By Hannah McAslan (UK) on May 20, 2022 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 19 May 2022, the European Securities and Markets Authority (ESMA) issued a final report on highly liquid financial instruments for central counterparty (CCP) investment policies under the European Market Infrastructure Regulation (EMIR). The final report has been published in response to a mandate that the European Commission issued on 18 May 2020 asking the … Continue Reading

FCA updates webpage on Payment Accounts Regulations: Linked Services List

By Simon Lovegrove (UK) on May 20, 2022 Posted in Payment Services, United Kingdom

On 18 May 2022, the FCA updated its webpage ‘Payment Accounts Regulations: Linked Services List’. The FCA has added to this webpage the following new sections: more information about who this applies to, next steps and stakeholder feedback. In terms of who this applies to, the FCA states that the webpage will be of interest … Continue Reading

FCA Market Watch 69

By Simon Lovegrove (UK) on May 20, 2022 Posted in Market abuse, United Kingdom

On 17 May 2022, the FCA published the latest edition of Market Watch, its newsletter on market conduct and transaction reporting issues. In Market Watch 69 the FCA covers firms’ arrangements for market abuse surveillance, drawing on its observations from engaging with small and medium sized firms. The FCA states that whilst the topics covered … Continue Reading

European Parliament draft report on proposal for a directive amending the AIFMD and UCITS IV Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds

By Simon Lovegrove (UK) on May 20, 2022 Posted in Canada, Collective investment schemes, Collective investment schemes, Collective Investment Schemes, Collective investment schemes, Collective Investment Schemes, France, Germany, Italy, The Netherlands, United Kingdom

On 16 May 2022, the European Parliament published a draft report concerning the proposal for a directive amending the Alternative Investment Fund Managers Directive (AIFMD) and UCITS IV Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds. The draft report sets … Continue Reading

EBA adopts decision on supervisory reporting for intermediate EU parent undertaking threshold monitoring

By Simon Lovegrove (UK) on May 20, 2022 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 13 May 2022, the European Banking Authority (EBA) adopted a decision on supervisory reporting for intermediate parent undertaking (IPU) threshold monitoring for those entities belonging to third country groups (TCGs), including third country branches (TCBs). Article 21b of the Capital Requirements Directive IV (CRD IV) requires institutions belonging to TCGs to have an IPU … Continue Reading

Financial Crime Outlook

By Hannah Meakin (UK), Nabeelah Begum, Victoria Pridmore and Catherine Pluck (UK) on May 20, 2022 Posted in Investigations and enforcement, Market abuse, Money laundering, United Kingdom

As the economy starts to recover following the impact of the COVID-19 pandemic, regulatory changes are under way in the anti-money laundering and market abuse space. In addition, the events in Ukraine, and the wide range of financial sanctions imposed on Russia in response, are having a significant impact on financial markets and must now … Continue Reading

Hot topics in sanctions compliance for financial services firms and broader considerations

By David Harris (UK), Hannah McAslan (UK) and Catherine Pluck (UK) on May 20, 2022 Posted in Beyond Sanctions: Key considerations for financial services firms, United Kingdom

The events in Ukraine and the economic sanctions imposed on Russia raise a number of issues that financial services firms will need to consider. Above and beyond the immediate challenges arising from the imposition of sanctions on clients and counterparties, firms may also need to address concerns about market conduct and systems and controls. This … Continue Reading

New FCA webpage – Reporting sanctions evasions

By Simon Lovegrove (UK) on May 18, 2022 Posted in Beyond Sanctions: Key considerations for financial services firms, United Kingdom

On 17 May 2022, the FCA published a new web page concerning the reporting of sanctions evasions. The web page provides information concerning the ways in which firms and individuals can report sanctions evasion to the FCA. It also covers what to tell the FCA and how to report another firm or individual. The web … Continue Reading

ESMA final reports on CCP resolution regime

By Jochen Vester (UK) on May 18, 2022 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 16 May 2022, the European Securities and Markets Authority (ESMA) published its final reports on the central counterparties’ (CCPs) resolution regime under the Regulation on CCP recovery and resolution (CCPRRR). The final reports are: Final report on guidelines on the application of the circumstances under which a CCP is deemed to be failing or … Continue Reading

FCA consults on expansion of the Dormant Assets scheme

By Simon Lovegrove (UK) on May 17, 2022 Posted in Regulation and compliance, United Kingdom

On 13 May 2022, the FCA published Consultation Paper 22/09 ‘Expansion of the Dormant Assets scheme’ (CP22/09). In February 2022, the Dormant Assets Act 2022 received Royal Assent. The Act amends the Dormant Bank and Building Society Accounts Act 2008 to expand the scope of dormant assets that can be contributed to the Dormant Asset … Continue Reading

Commission adopts Delegated Regulation amending RTS on the specification of the calculation of specific and general credit risk adjustments

By Jochen Vester (UK) on May 17, 2022 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 12 May 2022, the European Commission adopted a Delegated Regulation amending the regulatory technical standards (RTS) laid down in Delegated Regulation (EU) No 183/2014, as regards the specification of the calculation of specific and general credit risk adjustment. The Delegated Regulation is intended to address an anomaly regarding the sale of defaulted exposures, where … Continue Reading

SFDR queries forwarded to the Commission

By Simon Lovegrove (UK) on May 17, 2022 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 13 May 2022, the European Supervisory Authorities (ESAs) submitted to the European Commission 10 queries regarding the interpretation of the Sustainable Finance Disclosure Regulation (SFDR) and the Taxonomy Regulation (TR). The queries relate to the following five areas: Principal adverse impact (PAI) disclosures: Whether it is possible for a financial market participant to not … Continue Reading

Government consults on a new statutory debt solution

By Simon Lovegrove (UK) on May 17, 2022 Posted in General, United Kingdom

On 13 May 2022, HM Treasury issued a consultation on a new form of statutory debt solution, the statutory debt repayment plan (SDRP), that will allow for most of an individual’s debts to be combined into a single plan and repaid over a manageable period, with similar legal protections from creditor action as in breathing … Continue Reading