United Kingdom (and EU regulation)

HM Treasury summary responses to access for cash consultation

On 19 May 2022, HM Treasury issued a summary of the responses to its earlier access to cash consultation. The document also sets out the government’s planned approach to legislating for access to cash in the Financial Services and Markets Bill. In summary, HM Treasury intends to designate firms for the purpose of ensuring continued … Continue Reading

FCA PS22/5 ‘New cancellation and variation power: Changes to the Handbook and Enforcement Guide’

On 19 May 2022, the FCA published Policy Statement 22/5 ‘New cancellation and variation power: Changes to the Handbook and Enforcement Guide’ (PS22/5). The Financial Services Act 2021 inserted a new Schedule 6A into the Financial Services and Markets Act 2000 (FSMA). This schedule sets out a new power allowing the FCA to more quickly … Continue Reading

ESMA final report on the relevance of extending the transitional period set out in Article 48 of the EU Crowdfunding Regulation

On 19 May 2022, the European Securities and Markets Authority (ESMA) issued a final report regarding the relevance of extending the transitional period set out in Article 48 of the EU Crowdfunding Regulation (ECSPR). The final report has been issued in response to a formal request that the ESMA received from the European Commission to … Continue Reading

ESMA report on highly liquid instruments

On 19 May 2022, the European Securities and Markets Authority (ESMA) issued a final report on highly liquid financial instruments for central counterparty (CCP) investment policies under the European Market Infrastructure Regulation (EMIR). The final report has been published in response to a mandate that the European  Commission issued on 18 May 2020 asking the … Continue Reading

FCA updates webpage on Payment Accounts Regulations: Linked Services List

On 18 May 2022, the FCA updated its webpage ‘Payment Accounts Regulations: Linked Services List’. The FCA has added to this webpage the following new sections: more information about who this applies to, next steps and stakeholder feedback. In terms of who this applies to, the FCA states that the webpage will be of interest … Continue Reading

FCA Market Watch 69

On 17 May 2022, the FCA published the latest edition of Market Watch, its newsletter on market conduct and transaction reporting issues. In Market Watch 69 the FCA covers firms’ arrangements for market abuse surveillance, drawing on its observations from engaging with small and medium sized firms. The FCA states that whilst the topics covered … Continue Reading

European Parliament draft report on proposal for a directive amending the AIFMD and UCITS IV Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds

On 16 May 2022, the European Parliament published a draft report concerning the proposal for a directive amending the Alternative Investment Fund Managers Directive (AIFMD) and UCITS IV Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds. The draft report sets … Continue Reading

EBA adopts decision on supervisory reporting for intermediate EU parent undertaking threshold monitoring

On 13 May 2022, the European Banking Authority (EBA) adopted a decision on supervisory reporting for intermediate parent undertaking (IPU) threshold monitoring for those entities belonging to third country groups (TCGs), including third country branches (TCBs). Article 21b of the Capital Requirements Directive IV (CRD IV) requires institutions belonging to TCGs to have an IPU … Continue Reading

Financial Crime Outlook

As the economy starts to recover following the impact of the COVID-19 pandemic, regulatory changes are under way in the anti-money laundering and market abuse space. In addition, the events in Ukraine, and the wide range of financial sanctions imposed on Russia in response, are having a significant impact on financial markets and must now … Continue Reading

Hot topics in sanctions compliance for financial services firms and broader considerations

The events in Ukraine and the economic sanctions imposed on Russia raise a number of issues that financial services firms will need to consider. Above and beyond the immediate challenges arising from the imposition of sanctions on clients and counterparties, firms may also need to address concerns about market conduct and systems and controls. This … Continue Reading

New FCA webpage – Reporting sanctions evasions

On 17 May 2022, the FCA published a new web page concerning the reporting of sanctions evasions. The web page provides information concerning the ways in which firms and individuals can report sanctions evasion to the FCA. It also covers what to tell the FCA and how to report another firm or individual. The web … Continue Reading

ESMA final reports on CCP resolution regime

On 16 May 2022, the European Securities and Markets Authority (ESMA) published its final reports on the central counterparties’ (CCPs) resolution regime under the Regulation on CCP recovery and resolution (CCPRRR). The final reports are: Final report on guidelines on the application of the circumstances under which a CCP is deemed to be failing or … Continue Reading

FCA consults on expansion of the Dormant Assets scheme

On 13 May 2022, the FCA published Consultation Paper 22/09 ‘Expansion of the Dormant Assets scheme’ (CP22/09). In February 2022, the Dormant Assets Act 2022 received Royal Assent. The Act amends the Dormant Bank and Building Society Accounts Act 2008 to expand the scope of dormant assets that can be contributed to the Dormant Asset … Continue Reading

Commission adopts Delegated Regulation amending RTS on the specification of the calculation of specific and general credit risk adjustments

On 12 May 2022, the European Commission adopted a Delegated Regulation amending the regulatory technical standards (RTS) laid down in Delegated Regulation (EU) No 183/2014, as regards the specification of the calculation of specific and general credit risk adjustment. The Delegated Regulation is intended to address an anomaly regarding the sale of defaulted exposures, where … Continue Reading

SFDR queries forwarded to the Commission

On 13 May 2022, the European Supervisory Authorities (ESAs) submitted to the European Commission 10 queries regarding the interpretation of the Sustainable Finance Disclosure Regulation (SFDR) and the Taxonomy Regulation (TR). The queries relate to the following five areas: Principal adverse impact (PAI) disclosures: Whether it is possible for a financial market participant to not … Continue Reading

Government consults on a new statutory debt solution

On 13 May 2022, HM Treasury issued a consultation on a new form of statutory debt solution, the statutory debt repayment plan (SDRP), that will allow for most of an individual’s debts to be combined into a single plan and repaid over a manageable period, with similar legal protections from creditor action as in breathing … Continue Reading

EBA consults on standardized information requirements to support sales of non-performing loans

On 16 May 2022, the European Banking Authority (EBA) issued a consultation regarding draft implementing technical standards (ITS) specifying the templates to be used by credit institutions for the provision of information to credit purchasers when selling or transferring non-performing loans (NPLs) for the purposes of financial due diligence and valuation of NPLs. The data … Continue Reading

Beyond the temporary permissions regime: is your firm ready?

Following Brexit, European firms that were previously providing services in the UK (either through a UK branch or on a cross-border basis) in reliance upon passporting rights, are able to continue to do so under the UK’s temporary permissions regime (TPR) until they are assigned a “landing slot” by the PRA / FCA to apply … Continue Reading

ESMA reminds fund managers of their obligations to investors amid the war in Ukraine

On 16 May 2022, the European Securities and Markets Authority (ESMA) issued a statement on the implications of Russia’s invasion of Ukraine on investment fund portfolios. In the statement ESMA recalls some general principles that can be derived from EU law that are of relevance to the management of the impact of the Russian invasion … Continue Reading

EBA final technical standards on crowdfunding service providers

On 13 May 2022, the European Banking Authority (EBA) published a final report setting out draft Regulatory Technical Standards (RTS) per its mandate under Article 19(7) of the European Crowdfunding Service Providers Regulation specifying the: Elements to be included in the information to investors with respect to the description of the method to calculate credit … Continue Reading

Update to Green Finance strategy – call for evidence

On 12 May 2022, the government issued a call for evidence to support the development of an update to the UK’s Green Finance Strategy. The call for evidence contains 39 questions on four key objectives: Capturing the opportunity of green finance. Mobilising finance for the UK’s energy security, climate and environmental objectives. Greening the financial … Continue Reading

New FCA webpage on CryptoSprint event

On 12 May 2022, the FCA published a new webpage regarding the two-day CryptoSprint event that it held recently which explored how cryptoassets could be regulated in the UK. Over the event, participants worked in mixed-discipline teams to explore some of the challenges facing the industry, including how the FCA can support and balance innovation … Continue Reading

CPMI paper – ‘Extending and aligning payment system operating hours for cross-border payments’

On 12 May 2022, the Committee on Payments and Market Infrastructures (CPMI) issued a final report on extending and aligning payment system operating hours for cross-border payments. The final report focuses on the operating hours of real-time gross settlement (RTGS) systems as key payment systems to enhance cross-border payments. Key points in the final report … Continue Reading

Council and European Parliament reach provisional agreement on DORA

On 11 May 2022, it was announced that the Council presidency and the European Parliament had reached provisional agreement on the Digital Operational Resilience Act (DORA). The provisional agreement is subject to approval by the Council and the European Parliament before going through the formal adoption procedure. The European Parliament’s press release on the provisional … Continue Reading
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