United Kingdom (and EU regulation)

PRA publishes ‘Dear CEO’ letter to UK insurers regarding distribution of profits

On 31 March 2020, the Prudential Regulation Authority (PRA) published a Dear CEO letter from Sam Woods, Deputy Governor, to the CEOs of UK insurers regarding distribution of profits. The letter outlines an expectation on insurers to pay close attention to the need to protect policyholders and maintain safety and soundness in order to ensure … Continue Reading

PRA publishes ‘Dear CEO’ letter to UK insurers regarding distribution of profits

On 31 March 2020, the Prudential Regulation Authority (PRA) published a Dear CEO letter from Sam Woods, Deputy Governor, to the CEOs of UK insurers regarding distribution of profits. The letter outlines an expectation on insurers to pay close attention to the need to protect policyholders and maintain safety and soundness in order to ensure … Continue Reading

Beware the use of Whatsapp at work

Introduction Before the onset of COVID-19, many firms did not permit the use of WhatsApp in a work context.  However, many employees are now working remotely in response to the government’s guidance to avoid non-essential social contact and travel with effect from Monday March 16 2020, and certain firms may be contemplating relaxing their Whatsapp … Continue Reading

Adapting to change is business as usual: keeping you connected throughout the pandemic Financial relief for consumer borrowers

Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our fourth video diary, Matthew Gregory discusses today’s FCA proposals (made … Continue Reading

Adapting to change is business as usual: keeping you connected throughout the pandemic TCF considerations for mortgage lenders and administrators

Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our third video diary, Iain Hawthorn discusses the recent government announcements … Continue Reading

NYDFS Requires COVID-19 Plans by April 9

On March 10, 2020, the New York Department of Financial Services (NYDFS) issued guidance to all of its regulated institutions engaged in virtual currency business activity, requiring them to have plans for preparedness to manage the possible operational and financial risks posed by the COVID-19 pandemic. NYDFS requires the plans to be submitted by Thursday, … Continue Reading

FATF statement on the global pandemic and measures to combat illicit financing

On 1 April 2020, the Financial Action Task Force (FATF) published a statement in response to the ongoing COVID-19 pandemic. The statement touched on a number of areas of which the key ones for the financial services industry were: Remaining vigilant in light of the COVID-19-related financial crime risks: FATF has flagged an increase in … Continue Reading

SRB publishes its Expectations of Banks document

On 31 March 2020, the Single Resolution Board (SRB) published its Expectations for Banks document. The SRB has updated this document to reflect industry feedback and sets out the capabilities the SRB expects banks to demonstrate in order to show that they are resolvable. It describes best practice and sets benchmarks for assessing resolvability. It … Continue Reading

EBA provides additional clarity on measures to mitigate the impact of COVID-19 on the EU banking sector

On 31 March 2020, the European Banking Authority (EBA) published the following: Statement on supervisory reporting and Pillar 3 disclosures in light of COVID-19. Among other things the EBA states that Member State competent and resolution authorities should assess the extent to which a delayed submission of all the data or subsets of the data … Continue Reading

ESMA advises the Commission on inducements and costs and charges disclosures

On 1 April 2020, the European Securities and Markets Authority (ESMA) published its final report to the European Commission on inducements and costs and charges disclosures under MiFID II. The final report deals with technical advice in relation to certain investor protection topics under MiFID II. In this respect, in line with the previous mandate … Continue Reading

ESMA provides clarifications for best execution reports under MiFID II

On 1 April 2020, the European Securities and Markets Authority (ESMA) issued a public statement intended to clarify issues regarding the publication by execution venues and firms of the general best execution reports required under Regulatory Technical Standards (RTS) 27 and 28 of MiFID II. The statement notes that the next general best execution reports … Continue Reading

FCA proposes new package of financial relief for consumer borrowers

On 2 April, 2020 the FCA proposed several measures, intended to come into effect within seven days, to provide relief to consumers across a range of consumer credit products. The measures complement the announcement from HM Government to provide support to mortgage holders, and the assistance to be provided to furloughed employees and the self-employed. … Continue Reading

Chair of the House of Commons Treasury Committee writes to Director General of the ABI seeking information on insurance companies’ response to coronavirus

Mel Stride MP, Committee Chair of the House of Commons Treasury Committee, has written a letter to Huw Evans, Director General of the Association of British Insurers (ABI) seeking responses to a series of questions about how insurance companies are responding to the coronavirus.  The letter opens by stating that “many will be looking to … Continue Reading

FCA updates its statement on expectations for insurers and brokers during the pandemic

On 31 March 2020, the Financial Conduct Authority (FCA) updated its statement on what it expects insurers and brokers to do during the covid-19 pandemic. The update concerns the expectations for MOTs, product suspension and renewals. For the previous statement please read our earlier blog. Vehicle MOTs In light of the guidance from the Department … Continue Reading

April 2020 40 Minute Briefing – Managing your relationship with the regulator: the individual accountability agenda

On 1 April 2020, Norton Rose Fulbright hosted a virtual roundtable as part of the 40 Minute Briefing series. The session focussed on the individual accountability agenda, whilst also factoring in recent developments as to the COVID 19 outbreak, and how accountability frameworks would be viewed in light of the revised working patterns that firms … Continue Reading

Approach taken by the Financial Conduct Authority (the FCA)

As market volatility has increased in the wake of the Covid-19 outbreak, several competent authorities have imposed bans on short sales in certain shares.   Approach taken by the Financial Conduct Authority (the FCA) To date, the FCA has introduced only temporary prohibitions on short selling in certain listed instruments, on the 13 and 17 … Continue Reading

FCA updates webpage on strong customer authentication under PSRs 2017

On 31 March 2020, the FCA updated its web page on strong customer authentication (SCA) under the Payment Services Regulations 2017 (PSRs 2017). In particular the FCA states: the current challenges arising from COVID-19 are likely to affect the planned implementation of SCA for e-commerce. The FCA welcomes the progress so far and industry’s continuing … Continue Reading

FCA updates statement on short selling bans and reporting

On 31 March 2020, the FCA updated its statement on short selling bans and reporting as follows: “On 16 March 2020, the European Securities and Markets Authority (ESMA) issued a decision to temporarily amend the threshold for notifying net short positions to Competent Authorities under the SSR [Short Selling Regulation] from 0.2% of issued share … Continue Reading

ESMA publishes advice on fines and penalties for third country CCPs

On 31 March 2020, the European Securities and Markets Authority (ESMA) published its final technical advice to the European Commission on procedural rules for imposing fines and penalties on third country central counterparties and alignment of those for trade repositories and credit rating agencies. ESMA’s final technical advice covers: the right to be heard by … Continue Reading

ESMA consults on standardised information to facilitate cross-border funds distribution

On 31 March 2020, the European Securities and Markets Authority (ESMA) launched a consultation paper on the standard forms, templates, and procedures that Member State national competent authorities (NCAs) should use to publish information on their websites to facilitate cross-border distribution of funds. The consultation paper represents the first stage in the development of draft … Continue Reading

ESMA update on reporting under the MMF Regulation

On 31 March 2020, the European Securities and Markets Authority (ESMA) announced that it was delaying the first reports by money market funds managers under the Money Market Funds Regulation (MMF Regulation) until September 2020. The original date for submissions was April 2020. The amended XML schema and reporting instructions will be published shortly on … Continue Reading

Signatories to the UN Principles for Responsible Banking publish a portfolio impact analysis tool for banks

On 31 March 2020, the United Nations Environment Programme Finance Initiative (UNEP FI) announced that a community of signatories to the Principles for Responsible Banking and UNEP FI member banks had developed a portfolio impact analysis tool for banks (the Tool) together with a guidance document. The Tool guides banks through a holistic analysis of … Continue Reading

Implementing Regulation amending ITS on supervisory reporting under CRR

On 30 March 2020, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2020/429 of 14 February 2020 amending Implementing Regulation (EU) No 680/2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council. … Continue Reading

EBA final draft RTS on key areas for implementing FRTB

On 27 March 2020, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on the new Internal Model Approach (IMA) under the Fundamental Review of the Trading Book (FRTB). These final draft RTS have been developed according to Articles 325bd(7), 325be(3), 325bf(9), 325bg(4) of the Capital Requirements Regulation as amended by the … Continue Reading
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