United Kingdom (and EU regulation)

EBA peer review report on excluding transactions with non-financial counterparties established in a third country from credit valuation adjustment risk

On 30 May 2023, the European Banking Authority (EBA) published a peer review report on excluding transactions with non-financial counterparties established in a third country from credit valuation adjustment (CVA) risk. The global financial crisis of 2007-2008 revealed that CVA risk was a source of unexpected losses. Robust CVA management mitigates against losses and helps … Continue Reading

EBA consults on new RTS and ITS on supervisory colleges

By Simon Lovegrove (UK) on May 30, 2023 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 30 May 2023, the European Banking Authority (EBA) published a consultation paper containing draft technical standards which replace those contained in Commission Delegated Regulation (EU) 2016/98 and Commission Implementing Regulation (EU) 2016/99 specifying the functioning of supervisory colleges. The technical standards are being updated given that the legal framework for banks and investment firms … Continue Reading

ESMA final report on the review of the RTS on the information to be provided in an application for authorisation and registration under the Benchmarks Regulation

By Simon Lovegrove (UK) on May 30, 2023 Posted in Benchmarks, France, Germany, Italy, The Netherlands, United Kingdom

On 30 May 2023, the European Securities and Markets Authority (ESMA) published a final report on the review of the regulatory technical standards (RTS) on the information to be provided in an application for authorisation and registration under the Benchmarks Regulation. Article 34(8) of the Benchmarks Regulation states that ESMA shall develop RTS to specify … Continue Reading

ESAs consult on DORA criticality criteria

By Anna Carrier (BE) on May 30, 2023 Posted in EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, France, Germany, Italy, The Netherlands, United Kingdom

On 26 May 2023, the European Supervisory Authorities (ESAs) published a joint Discussion Paper on criteria for critical ICT third-party service providers and oversight fees. This Discussion Paper follows the request for technical advice that was sent by the European Commission (Commission) to the ESAs in late December 2022. The ESAs have published the Discussion … Continue Reading

The Insider Dealing (Securities and Regulated Markets) Order 2023

By Simon Lovegrove (UK) on May 26, 2023 Posted in Market abuse, United Kingdom

On 26 May 2023, there was published on the legislation.gov.uk website, The Insider Dealing (Securities and Regulated Markets) Order 2023. This Order updates Schedule 2 of the Criminal Justice Act 1993 (CJA), bringing securities and markets on which an offence can be committed in the CJA broadly in line with the Market Abuse Regulation (MAR). … Continue Reading

JMLSG proposed revisions to Part 1 of its Guidance

By Simon Lovegrove (UK) on May 26, 2023 Posted in Money laundering, United Kingdom

On 26 May 2023, the Joint Money Laundering Steering Group (JMLSG) published proposed revisions to Part 1 of its Guidance. The proposed revisions take account of amendments relating to discrepancy reporting, as introduced by the Money Laundering and Terrorist Financing (Amendment) (No.2) Regulations 2022 (affecting Part 1 Chapter 5 Paragraph 5.3129A). There is also a … Continue Reading

ESMA updates Q&As on AIFMD and crowdfunding

By Simon Lovegrove (UK) on May 26, 2023 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 26 May 2023, the European Securities and Markets Authority (ESMA) updated the following Q&As:… Continue Reading

New Regulation Tomorrow plus podcast – MoU establishing a framework for financial services regulatory cooperation between the EU and UK

By Simon Lovegrove (UK), Jonathan Herbst (UK) and Matthew Gregory (UK) on May 26, 2023 Posted in Brexit, Seminars, webinars and podcasts, United Kingdom

In this podcast Jonathan Herbst, Matthew Gregory and Simon Lovegrove discuss the pros and cons of the Memorandum of Understanding establishing a framework for financial services regulatory cooperation between the EU and the UK.… Continue Reading

HM Treasury publishes amendments to the Financial Services and Markets Bill regarding overseas CCPs

By Hannah Meakin (UK) and Jochen Vester (UK) on May 26, 2023 Posted in Brexit, Clearing and settlement, United Kingdom

On 26 May 2023, HM Treasury (HMT) published a policy paper outlining amendments to the Financial Services and Markets Bill (FSM Bill), concerning overseas central counterparties (CCPs). In January 2023, HMT introduced an amendment to the FSM Bill which, if enacted, would give the Bank of England (the Bank) the power to extend the maximum … Continue Reading

EBA consults on draft ITS amending implementing Regulation (EU) 2016/1799 on the mapping of ECAIs’ credit assessments under Article 136(1) and (3) of the CRR

By Simon Lovegrove (UK) on May 25, 2023 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 25 May 2023, the European Banking Authority (EBA) published a Consultation Paper containing draft implementing technical standards amending Implementing Regulation 2016/1799 on the mapping of External Credit Assessment Institutions (ECAIs) credit assessments under Article 136(1) and (3) of the Capital Requirements Regulation. The proposed amendments reflect the outcome of a monitoring exercise on the … Continue Reading

European Commission published Commission Delegated Regulation supplementing Directive (EU) 2019/2034 with regard to regulatory technical standards specifying the measurement of risks or elements of risks not covered or not sufficiently covered by the own funds requirements

By Jochen Vester (UK) on May 25, 2023 Posted in Capital adequacy, Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 25 May 2023, the European Commission published Commission Delegated Regulation (EU) of 25 May 2023 supplementing the Investment Firms Directive with regard to regulatory technical standards specifying the measurement of risks or elements of risks not covered or not sufficiently covered by the own funds requirements set out in parts three and four of … Continue Reading

FCA consults on strengthening protections for borrowers in financial difficulty: Consumer credit and mortgages

By Matthew Gregory (UK), Simon Lovegrove (UK) and Anita Edwards on May 25, 2023 Posted in FCA / PRA Handbook, Retail, United Kingdom

On 25 May 2023, the FCA published Consultation Paper CP23/13: Strengthening protections of borrowers in financial difficulty: Consumer credit and mortgages, which sets out proposed changes to FCA sourcebooks to reflect the planned withdrawal of the Tailored Support Guidance (TSG). Introduction During the coronavirus pandemic the FCA introduced the TSG to make clear how firms … Continue Reading

FCA publishes new and updated webpages on authorisations

By Victoria Pridmore on May 25, 2023 Posted in FCA / PRA Handbook, United Kingdom

On 25 May 2023, the FCA published new and updated webpages relating to aspects of the authorisation process. These include:… Continue Reading

FSCS publishes ‘Outlook’ update with revised compensation levy forecasts for 2023/24

By Matthew Gregory (UK) on May 25, 2023 Posted in Retail, United Kingdom

On 25 May 2023, the Financial Services Compensation Scheme (FSCS) published its latest Outlook update, containing revised compensation and levy forecasts for 2023/24. The FSCS has revised its levy forecast for 2023/24 to £270m. Whilst this is a reduction from the initial estimates the FSCS shared in November 2022, it still expects to pay £471m … Continue Reading

ESMA statement highlighting the risks arising from the provision of unregulated products and / or services by investment firms

By Simon Lovegrove (UK) on May 25, 2023 Posted in France, Germany, Italy, Retail, Retail, Retail, Retail, Retail, The Netherlands, United Kingdom

On 25 May 2023, the European Securities and Markets Authority (ESMA) published a statement highlighting the risks arising from the provision of unregulated products and/or services by investment firms. ESMA is concerned that the practice of investment firms offering products and services that are not regulated gives rise to both investor protection and prudential risks. … Continue Reading

BIS paper on central bank digital currencies: ongoing policy perspectives

On 25 May 2023, a group of central banks, together with the Bank for International Settlements, published a paper on central bank digital currencies (CBDC): ongoing policy perspectives. Since publishing (i) a report in October 2020 setting out the common foundational principles and core features of a CBDC, and (ii) an executive summary and three … Continue Reading

ESMA final report on the 2022 CSA on valuation

By Simon Lovegrove (UK) on May 25, 2023 Posted in Collective investment schemes, Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective Investment Schemes, France, Germany, Italy, The Netherlands, United Kingdom

On 24 May 2023, the European Securities and Markets Authority (ESMA) published a final report on the 2022 Common Supervisory Action (CSA) on valuation. Introduction In January 2022, ESMA launched a CSA with Member State national competent authorities (NCAs) on the supervision of the asset valuation rules under the UCITS Directive and Alternative Investment Fund … Continue Reading

Basel Committee joint report on margin dynamics in centrally cleared commodities markets in 2022

On 24 May 2023, the Basel Committee on Banking Supervision (BCBS), the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a joint report on margin dynamics in centrally cleared commodities markets in 2022. The report examines margin calls in centrally cleared commodities markets … Continue Reading

ESRB report on cryptos and decentralised finance

By Simon Lovegrove (UK) on May 25, 2023 Posted in Fintech, Fintech, Fintech, Fintech, Fintech, France, Germany, Italy, The Netherlands, United Kingdom

On 25 May 2023, the European Systemic Risk Board (ERSB) issued a report which considers the role of financial stability and macroprudential policy for cryptoassets, their service providers and decentralised finance (DeFi) applications. The report also covers the systemic implications of the cryptoasset market, its service providers and DeFi applications in the EU. The report … Continue Reading

ESMA publishes final report on market outages

By Floortje Nagelkerke (NL) and Hannah Meakin (UK) on May 24, 2023 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 24 May 2023, the European Securities and Markets Authority (ESMA) published a final report on market outages. On 28 September 2021, ESMA published a review report on algorithmic trading where it committed to provide guidance on how trading venues should communicate with market participants in case of an outage. As such, on 22 September … Continue Reading

Ten things to know about the EU Retail Investment Strategy

By Flupke van den Bogart on May 24, 2023 Posted in France, Germany, Italy, Retail, Retail, Retail, Retail, Retail, The Netherlands, United Kingdom

Today, the European Commission (Commission) published its Retail Investment legislative package with the aim of empowering retail investors to take more informed investment decisions that would better correspond to their investment needs and objectives. During the run-up to the Commission’s proposal, a number of issues were intensively debated by policymakers and stakeholders. The most controversial … Continue Reading

Directive on Green Claims

By Simon Lovegrove (UK), Haney Saadah and Daniel Nevzat (UK) on May 24, 2023 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

Our new briefing note on the draft Directive on Green Claims is available here… Continue Reading

LSB publishes report on access for d/Deaf customers in banking and credit

By Matthew Gregory (UK) and Simon Lovegrove (UK) on May 23, 2023 Posted in ESG, United Kingdom

On 23 May 2023, the Lending Standards Board (LSB) published a report on access for d/Deaf customers in banking and credit. The report includes insights and considerations aimed at helping the financial services industry to understand d/Deaf cultures and address remaining areas of inaccessibility for d/Deaf people. Within the report, the LSB looks at key … Continue Reading

ECB guide on qualifying holding procedures

By Simon Lovegrove (UK) on May 23, 2023 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 23 May 2023, the European Central Bank (ECB) published a guide on qualifying holding procedures. Article 4(1)(c) of the Regulation establishing the Single Supervisory Mechanism (SSM Regulation) gives the ECB exclusive competence to assess acquisitions and increases of qualifying holdings in credit institutions in the countries participating in the SSM. Article 6(4) of the … Continue Reading