United Kingdom (and EU regulation)

EBA seeks input from institutions on their ESG disclosure practices

On 17 September 2020, the European Banking Authority (EBA) published an online survey to receive input from credit institutions on their practices and views in the area of disclosure of information on environmental, social and governance (ESG) risks. The survey, which is addressed to large credit institutions that will be required to disclose prudential information … Continue Reading

LIBOR transition: getting my firm ready

On 17 September 2020, the FCA published a new web page, LIBOR transition: getting my firm ready. On this web page the FCA explains what firms need to know about LIBOR transition. The web page starts by setting out information useful to all regulated firms concerning LIBOR transition. This includes that a key consideration of … Continue Reading

ESMA renews its decision requiring net short position holders report positions of 0.1% and above

On 17 September 2020, the European Securities and Markets Authority (ESMA) announced that it was renewing its decision to temporarily require the holders of net short positions in shares traded on an EU regulated market to notify the relevant national competent authority if the position reaches or exceeds 0.1% of the issued share capital. The … Continue Reading

ECB allows temporary relief in banks’ leverage ratio after declaring exceptional circumstances due to the COVID-19 pandemic

On 17 September 2020, the European Central Bank (ECB) announced that euro area banks under its direct supervision may exclude certain central bank exposures from the leverage ratio. The announcement comes after the Governing Council of the ECB confirmed that there are exceptional circumstances due to the COVID-19 pandemic. Banks under ECB supervision can benefit … Continue Reading

Commission impact assessment – long-term investment funds – review of EU rules

On 16 September 2020, the European Commission issued an inception impact assessment concerning proposed amendments to the Regulation on European long-term investment funds (ELTIFs). The impact assessment notes that the current challenge with the ELTIF regime is that, to date, the initial take-up of ELTIFs by the market has been slow, with only a limited … Continue Reading

UK Finance – Discontinuation of LIBOR: a guide for business customers

On 16 September 2020, UK Finance published a guide which is intended for business customers with LIBOR-linked loans to help them understand: The anticipated discontinuation of the benchmark rate LIBOR. Why LIBOR is being discontinued. What they should expect to hear from their bank or lender in the coming months.  … Continue Reading

Christopher Woolard to chair review of unsecured credit market regulation

On 16 September 2020, the FCA announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market. The review will concentrate on how regulation can better support a healthy unsecured lending market. It will take into account the impact of the coronavirus pandemic on employment security and credit scores, … Continue Reading

FCA proposes the next stage of support for consumer credit and overdraft customers

On 16 September 2020, the FCA published Draft guidance: consumer credit and coronavirus – additional guidance for firms. The FCA originally published guidance on credit cards (including retail revolving credit) and personal loans on 9 April 2020 and later updated it on 1 July 2020. Publication of guidance covering motor finance and other high-cost credit … Continue Reading

October 40 Minute Briefing – Learning lessons: Proactive governance in the autumn

We are evolving our successful 40-minute briefings into webinars for financial services professionals. This includes senior management and those in legal, compliance and risk teams who have or are developing financial services expertise. The webinars will be led by senior members of our financial services team from legal, risk consulting and government affairs backgrounds and … Continue Reading

Commission report assessing whether Member States have duly identified and made subject to the obligations of the 4MLD all trusts and similar legal arrangements governed under their laws

On 16 September 2020, the European Commission published a report to the European Parliament and the Council assessing whether Member States have duly identified and made subject to the obligations of the Fourth Anti-Money Laundering Directive (4MLD) all trusts and similar arrangements governed under their laws. Article 31 of the 4MLD requires trustees or persons … Continue Reading

Fees regime for the supervision of FMI

On 16 September 2020, the Bank of England (BoE) published a Policy Statement ‘Fees regime for the supervision of financial market infrastructure (FMI)’. In the Policy Statement the BoE sets out: The final fee rates to meet the Bank’s 2020/21 funding requirement for FMI supervisory activity and the policy activity that supports this, as permitted … Continue Reading

ISDA article on Brexit and the impact on the derivatives trading obligation and the characteristic of OTC derivatives in the EU and the UK

On 15 September 2020, the ISDA published a paper recommending that the EU and the UK recognise the equivalence of each other’s derivatives trading venues in order to mitigate the impact of the UK’s withdrawal from the EU. The paper explains that equivalence is the best solution for addressing conflicts and avoiding fragmentation of liquidity … Continue Reading

Latest EU Exit SIs for financial services

On 15 September 2020, there was published on legislation.gov.uk: The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020. This statutory instrument amends the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 to implement amendments made by Fifth Anti-Money Laundering Directive (5AMLD). The main changes are made to … Continue Reading

PSR report – market review into the supply of card-acquiring services

On 15 September 2020, the Payment Systems Regulator (PSR) issued an interim report on the supply of card acquiring services. The interim report contains the PSR’s provisional findings of its market review into the supply of card acquiring services in the UK. The PSR conducted the market review using its general powers under Part 5 … Continue Reading

FCA Call for Input – the consumer investments market

On 15 September 2020, the FCA issued a Call for Input looking at areas where the consumer investments market is not working well for customers and seeking views on what changes the regulator can make to improve protections and outcomes in this market. The Call for Input is focussed on the following core questions: What … Continue Reading

ECB – new initiative to facilitate cyber information and intelligence sharing

On 15 September 2020, the European Central Bank (ECB) announced that members of the Euro Cyber Resilience Board for pan-European Financial Infrastructures have created the Cyber Information and Intelligence Sharing Initiative (CIISI-EU). This is a multilateral initiative which brings together a community of public and private entities. The CIISI-EU initiative is further explained in a … Continue Reading

FCA finalises guidance on branch and ATM closures or conversions

On 14 September 2020, the FCA published Finalised Guidance 20/3: Branch and ATM closures or conversions (FG20/3). FG20/3 applies to regulated firms that operate (or have agents operate) branches, or ATMs (cash machine or cashpoint), and who are subject to Principles 6, 7 and 11 of the Principles for Businesses. It applies when such a … Continue Reading

Mortgages and coronavirus: additional guidance for firms – finalised guidance

On 14 September 2020, the FCA finalised its additional guidance setting out how firms should provide tailored support to mortgage borrowers who have benefitted from payment deferrals under its June 2020 guidance and who continue to face financial difficulties, as well as those whose financial situation may be affected by coronavirus after 31 October 2020. … Continue Reading

Commission Regulations amending the Prospectus RTS Regulation and Delegated Regulation

On 14 September 2020, there was published in the Official Journal of the EU: Commission Delegated Regulation (EU) 2020/1272 of 4 June 2020 amending and correcting Delegated Regulation (EU) 2019/979 supplementing Regulation (EU) 2017/1129 of the European Parliament and of the Council with regard to regulatory technical standards on key financial information in the summary … Continue Reading

FATF report – virtual assets red flag indicators of money laundering and terrorist financing

On 14 September 2020, the Financial Action Task Force (FATF) published a report, Virtual Assets – Red Flag Indicators of Money Laundering and Terrorist Financing. The report is based on more than 100 case studies and is designed to help national authorities and financial institutions identify potential money laundering and terrorist financing activity involving virtual … Continue Reading

CMU: Economic and Monetary Affairs Committee calls for an urgent completion

On 11 September 2020, the European Parliament issued a press release stating that the Economic and Monetary Affairs Committee has adopted a report calling for the urgent completion of the Capital Markets Union (CMU). In their report, MEPs call for the development of the CMU to be accelerated, arguing that this would be a viable … Continue Reading

Latest FCA Policy Development update

On 11 September 2020, the FCA published its latest Policy Development update. The Policy Development update provides information on recent and upcoming FCA publications but should not be regarded as comprehensive. In terms of upcoming FCA publications, these include: Expected Q4 2020: Consultation Paper on amendments to accommodate Breathing Space Regulations. Expected Q4 2020: Policy … Continue Reading

Government to help pension schemes seize long-term opportunities

On 11 September 2020, the Department for Work and Pensions issued the Government’s response to the February 2019 consultation ‘Investment Innovation and Future Consolidation’ which included a further consultation on proposed measures to improve outcomes for defined contribution scheme members. The Government addresses stakeholder responses to the consultation proposal to use increased transparency as a … Continue Reading
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