United Kingdom (and EU regulation)

FCA and the Pensions Regulator outline a framework for value for money in defined contribution pension schemes

On 16 September 2021, the Pensions Regulator and the FCA jointly issued Discussion Paper 21/3: Driving Value for Money in defined contribution pensions (DP21/3). In DP21/3 the regulators discuss developing a common framework for measuring value for money (VFM) in defined contribution (DC) pension schemes. The aim of the two regulators is to drive a … Continue Reading

SRB approach to prior permissions regime: update

On 16 September 2021, the Single Resolution Board (SRB) published an update to information on its approach to prior permissions for eligible liabilities. Prior to calling, redeeming, repaying or repurchasing eligible liabilities instruments before their contractual maturity, institutions are required to obtain the authorisation of the resolution authority in accordance with Article 77(2) of the … Continue Reading

FCA Regulation Roundup – update on SMR and AR applications and switching off fsa.gov.uk redirects

On 16 September 2021, the FCA published its latest Regulation Round-up. Among other things the Regulation Round-up provides an update on: Senior Manager Regime (SMR) and Appointed Representative (AR) applications. The FCA mentions its earlier communication in December about delays in determining SMR and Significant Influence Function (SIF) applications, following the large volume of applications … Continue Reading

UK Finance paper ‘Navigating the path to respectability: Making sense of the financial crime risk posed by cryptoassets and how to manage it appropriately’

On 16 September 2021, UK Finance published ‘Navigating the path to respectability: Making sense of the financial crime risk posed by cryptoassets and how to manage it appropriately’. The paper is intended to help readers understand cryptoasset business models from crypto ATMs to exchanges, P2P sites and ICO issuance and how they can be exploited … Continue Reading

FCA sets out plan to tackle investment harm

On 15 September 2021, the FCA published its strategy for consumer investments together with a feedback statement following its earlier call for input on consumer investments. The purpose of the strategy is to give consumers the confidence to invest, supported by a high quality, affordable advice market, which should lead to fewer people being scammed … Continue Reading

Financial holding companies: Further implementation – PRA PS20/21

On 15 September 2021, the PRA published Policy Statement 20/21 ‘Financial holding companies: Further implementation’ (PS20/21). In PS20/21 the PRA provides feedback on Consultation Paper 12/21 ‘Financial holding companies: Further implementation’ (CP12/21) and sets out final rules. It also contains: New Statement of Policy ‘Supervisory measures and penalties in relation to financial holding companies’. Updated … Continue Reading

EBA publishes final guidance to assess breaches of the large exposure limits

On 15 September 2021, the European Banking Authority (EBA) published a final report containing guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures to return to compliance. The guidelines have been developed in accordance with the mandate contained in Article 396(3) of the … Continue Reading

EBA publishes revised guidelines on the stress tests of deposit guarantee schemes

On 15 September 2021, the European Banking Authority (EBA) published revised guidelines on the stress tests conducted by Member State deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD). The revised guidelines strengthen the current DGS stress-testing framework by requiring the DGSs to stress test their ability to perform all of the interventions they … Continue Reading

BoE approach to the monitoring of third country systems designated under the Settlement Finality Regulations

On 14 September 2021, the Bank of England (BoE) published its approach to monitoring third country systems designated under the UK’s Settlement Finality Regulations (UK SFR). In response to the UK’s withdrawal from the EU, the UK amended its legislation to enable third country central counterparties, central securities depositories and payment systems, which are not … Continue Reading

Commission adopts Delegated Regulation supplementing MAR with RTS on cooperation arrangements with third countries

On 14 September 2021, the European Commission adopted a Delegated Regulation of 2 July 2021 supplementing the Market Abuse Regulation with regard to regulatory technical standards containing a template document for cooperation arrangements with third countries and an Annex containing a template document. The adoption of the Delegated Regulation had been delayed due to the … Continue Reading

FCA updates latest policy development update

On 10 September 2021, the FCA updated its latest policy development update by adding that on 25 October 2021 it expects to publish a Policy Statement on restricting claims management company charges for financial products and services claims. The Policy Statement follows Consultation Paper 21/1: Restricting CMC charges for financial services and products claims that … Continue Reading

PRA Dear CEO letter ‘Thematic findings on the reliability of regulatory reporting’

On 10 September 2021, the PRA published a Dear CEO letter ‘Thematic findings on the reliability of regulatory reporting’. The Dear CEO letter follows a letter that the PRA sent in October 2019 reiterating its expectation that all banks and building societies submit complete, timely and accurate regulatory returns. Since its letter in October 2019 … Continue Reading

Latest FCA policy development update

On 10 September 2021, the FCA published its latest policy development update. The policy development update provides some information on the FCA’s recent and upcoming publications but should not be regarded as comprehensive. Among other things the policy development update notes that: A policy statement is expected at the end of November 2021 covering changes … Continue Reading

PRA / FCA Dear CEO letter – trade finance activity

On 9 September 2021, the PRA and FCA co-published a Dear CEO letter on trade finance activity. The Dear CEO letter reports that during the past 18 months there have been several high-profile failures of commodity and trade finance firms with significant financial loss. The PRA and FCA (together the regulators) remind firms that they … Continue Reading

FCA Consultation Paper 21/28 ‘New cancellation and variation power: Changes to the Handbook and Enforcement Guide’

On 9 September 2021, the FCA published Consultation Paper 21/28 ‘New cancellation and variation power: Changes to the Handbook and Enforcement Guide’ (CP21/28). The Financial Services Act 2021 inserted a new Schedule 6A into the Financial Services and Markets Act 2000 (FSMA). This schedule set out a new power allowing the FCA to more quickly … Continue Reading

Critical Benchmarks (References and Administrators’ Liability) Bill

On 8 September 2021, the Critical Benchmarks (References and Administrators’ Liability) Bill had its first reading in the House of Lords. The Explanatory notes to the Bill explain both the policy and legal background to the Bill. In summary, the Bill will: Support the orderly wind-down of critical benchmarks, protecting both users of these benchmarks … Continue Reading

IOSCO statement on credit sensitive rates

On 8 September 2021, the Board of the International Organization of Securities Commissions (IOSCO) issued a statement on credit sensitive rates. Among other things the statement notes that regulators are concerned that some of LIBOR’s shortcomings may be replicated through the use of credit sensitive rates that lack sufficient underlying transaction volumes. The disproportionality between … Continue Reading

Basel III and global cooperation: where do we go from here?

On 8 September 2021, the Basel Committee on Banking Supervision published a speech given by its Secretary General, Carolyn Rogers, entitled Basel III and global cooperation: where do we go from here? During the course of her speech Carolyn Rogers addresses, among other things, some of the more common arguments that have been used to … Continue Reading

UK Finance report – Retail CBDC – A threat or opportunity for the payments industry?

On 8 September 2021, UK Finance issued a report Retail CBDC – A threat or opportunity for the payments industry? . In April 2021, the Chancellor announced a new Taskforce between HM Treasury and the Bank of England (BoE) to explore a UK central bank digital currency (CBDC). The BoE issued a discussion paper on … Continue Reading

Updated FCA webpage – PS20/11: Policy Statement 20/11: Removing barriers to intra-group switching and helping borrowers with maturing interest-only and part-and-part mortgages

On 8 September 2021, the FCA updated its webpage on Policy Statement 20/11: Removing barriers to intra-group switching and helping borrowers with maturing interest-only and part-and-part mortgages to reflect the fact that the temporary guidance on maturing interest-only and part-and-part mortgages will expire on 31 October 2021 and will not be extended. The FCA states … Continue Reading

Delegated Regulation supplementing EMIR specifying the conditions when commercial terms of central clearing are FRANDT

On 8 September 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2021/1456 of 2 June 2021 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council by specifying the conditions under which the commercial terms for clearing services for over-the-counter derivatives are to be considered … Continue Reading

PRA CP18/21 – Remuneration: Identification of material risk takers

On 8 September 2021, the PRA published Consultation Paper 18/21 – Remuneration: Identification of material risk takers (CP18/21). In CP18/21 the PRA sets out proposed changes in respect of the applicable requirements on the identification of material risk takers (MRTs) for the purposes of the PRA’s remuneration regime. In particular the PRA sets out proposals … Continue Reading

TheCityUK publication – Making the UK the leading global financial centre: An international strategy for the UK-based financial and related professional services industry

On 7 September 2021, TheCityUK published a new international strategy that seeks to return the UK to being the world’s leading international financial centre within five years. The international strategy – ‘Making the UK the leading global financial centre’ – sets out a plan for future success, with a focus on bolstering competitiveness and attractiveness. … Continue Reading

IOSCO publishes guidance for intermediaries and asset managers using Artificial Intelligence and Machine Learning

On 7 September 2021, the International Organization of Securities Commissions (IOSCO) published guidance to help its members regulate and supervise the use of Artificial Intelligence (AI) and Machine Learning (ML) by market intermediaries and asset managers, following its consultation report published in June. The guidance consists of six measures that reflect expected standards of conduct … Continue Reading
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