United Kingdom (and EU regulation)

FCA updates TPR webpages

On 12 August 2022, the FCA updated the following webpages on the temporary permissions regime (TPR): Considerations for firms leaving the TPR – Under the section, ‘Firms that previously passported into the UK under schedule 3 or schedule 4 to FSMA’, the FCA has added the following text: “All firms in the TPR that we … Continue Reading

Commission Delegated regulation specifying the calculation methods of gross jump-to-default amounts for exposure to default risk arising from certain derivative instruments, and specifying the determination of notional amounts of instruments other than the instruments referred to in Article 325w(4) of the CRR

On 11 August 2022, the European Commission published a Commission Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards specifying the calculation methods of gross jump-to-default (JTD) amounts for exposures to debt and equity instruments and for exposures to default risk arising from certain derivative instruments, and specifying the determination … Continue Reading

Bank of England letter on the Financial Services and Markets Bill

On 11 August 2022, the House of Commons’ Treasury Committee published a letter from the Bank of England (BoE) regarding the Financial Services and Markets Bill. In the letter the BoE welcomes the Future Regulatory Framework measures contained in the Bill, which are intended to establish a strong, responsive and internationally respected approach to financial … Continue Reading

FCA updates webpages – cryptoassets

On 11 August 2022, the FCA updated the following webpages: Requirements for a change in control– The webpage now provides that, an FCA registered cryptoasset firm (i.e. a cryptoasset exchange provider and/or a custodian wallet provider) is subject to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the … Continue Reading

ESMA MoU with South Africa’s Financial Sector Conduct Authority, Prudential Authority and the South African Reserve Bank

On 11 August 2022, the European Securities and Markets Authority (ESMA) published a Memorandum of Understanding (MoU) between itself and South Africa’s Financial Sector Conduct Authority, Prudential Authority and the South African Reserve Bank related to central counterparties (CCPs) established in South Africa. By signing the MoU, the signatories affirm their willingness to cooperate and … Continue Reading

ESMA updates list of third-country CCPs recognised to offer services and activities in the EU

On 11 August 2022, the European Securities and Markets Authority published an updated list of third-country central counterparties recognised to offer services and activities in the EU in accordance with the European Markets Infrastructure Regulation.  … Continue Reading

Cryptoasset providers: Impact of the amendments to the MLRs 2017

In June, HM Treasury issued its response to its October 2021 consultation on amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017). The response contained a number of updates to the MLRs 2017 which, for the most part, come into force on 1 September 2022. … Continue Reading

Commission report on the treatment of CCP equity in the write-down and conversion tool under the Regulation on CCP recovery and resolution

On 10 August 2022, the European Commission published a report to the European Parliament and the Council on the treatment of central counterparty (CCP) equity in the write-down and conversion tool under the Regulation on CCP recovery and resolution (CCP-RRR). Under Article 27(7) of the CCP-RRR, the resolution authority must write down and convert any … Continue Reading

House of Commons’ Treasury Sub-Committee on Financial Services Regulations publishes letter to the PRA regarding the ‘Strong and Simple Framework’

On 10 August 2022, the House of Commons’ Treasury Sub-Committee on Financial Services Regulations published a letter addressed to the Prudential Regulation Authority (PRA) regarding the ‘Strong and Simple Framework’. The letter sets forth that on 20 July 2022, the Sub-Committee held its inaugural meeting, where evidence was taken from two ‘challenger’ banks, as well as … Continue Reading

ECB opinion on a proposal for a directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds

On 9 August 2022, the European Central Bank (ECB) published an opinion on a proposal for a directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds. The proposal forms part of a package of legal acts in support of the Capital … Continue Reading

UK Jurisdiction taskforce publishes a public consultation on the issuance and transfer of digital securities under English private law

On 8 August 2022, the UK Jurisdiction Taskforce published a public consultation on the issuance and transfer of digital securities under English private law. In November 2018, the UK Jurisdiction Taskforce published its Legal Settlement on the Status of Cryptoassets and Smart Contracts. The Legal Settlement expressed the view that cryptoassets were property and smart … Continue Reading

EBA consults on draft RTS on the determination by originator institutions of the exposure value of SES in securitisations

On 9 August 2022, the European Banking Authority launched a public consultation on its draft regulatory technical standards (RTS) on the determination by originator institutions of the exposure value of synthetic excess spread (SES) in securitisations. The draft RTS have been developed in accordance with Article 248(4) of Capital Requirements Regulation (CRR). The Capital Markets … Continue Reading

House of Commons Research briefing on the future of local banking services and access to cash

On 9 August 2022, the House of Commons published a research briefing on the future of local banking services and access to cash. The research briefing provides an overview of the policy relating to the closure of bank and building society branches and to efforts to protect access to cash. In particular: The Government announced a … Continue Reading

FCA portfolio letter on the Alternatives Supervisory Strategy

On 9 August 2022, the FCA published a portfolio letter on its Alternatives Supervisory Strategy. The letter outlines the FCA’s updated supervisory strategy and priorities for firms within its ‘Alternatives’ portfolio together with firms that are predominantly active in the alternative investment sector (together firms). The FCA’s alternatives portfolio is comprised of FCA authorised firms … Continue Reading

New RT Plus podcast – Beyond Sanctions – Key updates

The sixth instalment of our Beyond Sanctions podcast series is now available to stream and download on Apple Podcasts and Spotify. In this episode, David Harris, Co-Head of our Contentious Financial Services Group in London, discusses some recent developments in the sanctions landscape for regulated firms, including key points from the: Red Alert on Financial Sanctions … Continue Reading

New podcasts on the Financial Services and Markets Bill

In the latest episodes of our Regulation Tomorrow podcasts: Jonathan Herbst and Hannah Meakin provide a high-level overview of the Financial Services and Markets Bill which was introduced on the 20 July 2022 (Apple podcasts / Spotify). Jonathan Herbst, Hannah Meakin and Albert Weatherill focus specifically on the Bill’s provisions relating to critical third parties … Continue Reading

BoE releases Policy Statement on responses to CP3/22 ‘Occasional Consultation Paper’

On 8 August 2022, the Prudential Regulation Authority (PRA) published Policy Statement 7/22 ‘Responses to CP3/22 Occasional Consultation Paper’ (PS7/22). In PS7/22 the PRA sets out its final policy and rules following Consultation Paper 3/22 ‘Occasional Consultation Paper’ (CP3/22).  Earlier consultation In CP3/22, the PRA proposed various miscellaneous amendments to the PRA Rulebook including: An … Continue Reading

FCA appoints new Director of International

On 5 August 2022, the Financial Conduct Authority (FCA) announced the appointment of Ruairi O’Connell, OBE, as the new Director of International. Ruairi will join the FCA from the Home Office where he is Director, International. Ruairi has extensive experience in both the Home Office and the Foreign Office, including as British Ambassador to Kosovo. … Continue Reading

FCA publishes Consultation Paper on calculating redress for non-compliant pension transfer advice

On 2 August 2022, the Financial Conduct Authority (FCA) published Consultation Paper 22/15 ‘Calculating redress for non-compliant pension transfer advice’ (CP22/15). In CP22/15 the FCA is proposing to set up a redress scheme for people who transferred out of the British Steel Pensions Scheme (BSPS). This should see firms pay over £70 million of compensation … Continue Reading

CPMI / IOSCO discussion paper on CCP practices to address non default-losses

Introduction On 4 August 2022, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a discussion paper on central counterparty (CCP) practices to address non default-losses (NDLs). Non default events can threaten a CCP’s viability as a going concern and its ability to continue providing critical services. … Continue Reading

ESMA updates Q&As on the implementation of the CSDR

On 3 August 2022, the European Securities and Markets Authority (ESMA) updated its Q&As on the implementation of the Central Securities Depositories Regulation (CSDR). The updated Q&As amend settlement discipline question 3 – cash penalties. The question has now been updated to include answers to the following: Article 3(2) of Commission Delegated Regulation 2017/389 provides … Continue Reading

Commission summary report on targeted consultation on the functioning of the ESG ratings market in the EU and on the consideration of ESG factors in credit ratings

On 4 August 2022, the European Commission published a report providing an overview of the results of an earlier targeted consultation on ‘ESG ratings and ESG factors in credit ratings’. Among other things the report notes that: The vast majority of respondents declare that they do use ESG ratings and among these, 77% use them … Continue Reading

FCA releases Policy Statement on improvements to the Appointed Representatives regime

Introduction  On 3 August 2022, the Financial Conduct Authority (FCA) published Policy Statement 22/11 ‘Improvements to the Appointed Representatives regime’ (PS22/11). In PS22/11, the FCA provides feedback to its earlier consultation, Consultation Paper 21/34 ‘Improving the Appointed Representatives Regime’ (CP21/34), and sets out its final policy and Handbook rules. Earlier consultation Whilst the appointed representatives … Continue Reading

UK Finance blog on what does the Financial Services and Markets Bill mean for UK capital markets

On 3 August 2022, UK Finance published a blog ‘What does the Financial Services and Markets Bill mean for UK capital markets?’ UK Finance has been readily engaged in driving and shaping the market reform agenda. Over the last twelve months UK Finance has worked with members to respond to key initiatives such as the … Continue Reading
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