United Kingdom (and EU regulation)

Financial Services (Consequential Amendments) Regulations 2020

On 28 January 2020, there was published on the legislation.gov.uk website, the Financial Services (Consequential Amendments) Regulations 2020 (the Regulations), together with an explanatory memorandum. The Regulations are being made under the European Union (Withdrawal Agreement) Act 2020 (Act 2020) to delay the application of a number of financial services temporary permissions and transitional regimes established by EU Exit instruments made … Continue Reading

FCA letter to banks asking for information on new overdraft pricing decisions

On 28 January 2020, the FCA published a letter it had sent to banks ahead of its new rules on overdraft pricing coming into force on 6 April 2020. The FCA is seeking to understand more about banks’ overdraft pricing and the measures they have in place to help customers who may be adversely impacted … Continue Reading

PSR call for input on competition issues arising in New Payments Architecture

On 28 January 2020, the Payment Systems Regulator (PSR) issued a call for input on competition issues that could arise in the UK’s New Payments Architecture (NPA). The NPA is the UK payments industry’s proposed new way of organising the clearing and settlement of payments between banks, known as interbank payments, including payments that currently use BACs and … Continue Reading

FCA Dear CEO letter to benchmark administrators on supervision strategy

On 28 January 2020, the FCA published a Dear CEO letter (dated 24 January 2020) setting out the regulator’s view of the potential harm as well as the underlying drivers that benchmark administrators could pose to their customers and the markets in which they operate. The FCA sees three main ways in which benchmark administrators … Continue Reading

HM Treasury letter on post-Brexit equivalence in financial services

On 27 January 2020, the Department for Exiting the European Union (DExEU) published a letter from John Glen MP, Economic Secretary to the Treasury, to Lord Kinnoull, European Union Committee Chair, on equivalence in the area of financial services post-Brexit. Mr Glen begins the letter by reiterating that the financial services provisions in the revised … Continue Reading

The finalisation of the Basel III reforms in a post-Brexit environment: single or dual-track approach?

On 22 January 2020, Norton Rose Fulbright’s corporate financial services and government relations practices, in cooperation with the City of London Corporation, organised a panel debate on “The finalisation of the Basel III reforms in a post-Brexit environment: single or dual-track approach?”. Hosted in Norton Rose Fulbright’s Brussels office, the event gathered over 75 participants, … Continue Reading

The 2020 European Financial Services Outlook

For all financial services practitioners, 2020 will be a year of dynamic developments. The first full working year of the 2019-2024 College of Commissioners, under the leadership of Ursula von der Leyen, is expected to set the scene for the legislative, regulatory and policy agenda for the duration of its mandate. From the MiFID II … Continue Reading

PSR speech providing clarity on its response to APP scams

On 23 January 2020, the Payment Systems Regulator (PSR) published a speech by Chris Hemsley, Managing Director of the PSR, setting out his views on, among other things, ensuring that victims of authorised push payment (APP) fraud are reimbursed when they have done nothing wrong. The PSR welcomes the voluntary Contingent Reimbursement Model Code (CRM), … Continue Reading

Christopher Woolard appointed Interim Chief Executive of FCA

On 24 January 2020, the FCA announced that HM Treasury, with the advice of the Board of the FCA, has appointed Christopher Woolard as Interim Chief Executive. The appointment follows Andrew Bailey’s departure to become Governor of the Bank of England. HM Treasury will be running an open competition for the permanent Chief Executive and … Continue Reading

HM Treasury responds to consultation on implementing MLD5

Introduction On 24 January 2020, HM Treasury (HMT) published its response to the feedback it received on its consultation on the transposition of the EU Fifth Money Laundering Directive (5MLD). For further information on the consultation, please see our previous blog here. Points to note in the HMT response include: Cryptoassets The 5MLD definition of … Continue Reading

FCA and IBA response to ISDA letter providing clarity of implications of non-representative LIBOR

On 24 January 2020, the FCA published a letter from Richard Fox, FCA Head of Markets Policy, to the International Swaps and Derivatives Association (ISDA) (dated 20 January 2020) explaining why market participants should not assume that any period of non-representative LIBOR based on reduced panel bank submissions would last for more than a short … Continue Reading

European Parliament compromise text on a Proposed Regulation on sustainable investment framework

On 24 January 2020, the European Parliament published an updated version of the procedure file for the proposed Regulation on the establishment of a framework to facilitate sustainable investment (known as the ‘Taxonomy Regulation’). The procedure file states that, on 16 January 2020, there was approval in committee of the text of the Taxonomy Regulation, … Continue Reading

Corrigendum to IFR published in OJ

On 24 January 2020, there was published in the Official Journal of the EU a corrigendum to the Investment Firms Regulation (IFR). The corrigendum amends Article 63(4)(e)(7) and Article 63(4)(f)(8) bringing the deadline for the European Securities and Markets Authority to submit draft regulatory technical standards and draft implementing technical standards a year forward, from … Continue Reading

Implementing CRD IV: capital buffers

On 23 January 2020, the PRA published an updated version of Supervisory Statement 6/14: Implementing CRD IV: capital buffers (SS6/14). The FCA has published SS6/14 following the publication of Policy Statement 2/20: Pillar 2 Capital: Updating the Framework. SS6/14 has been updated to clarify the usability of buffers and the considerations taken into account in … Continue Reading

Pillar 2 capital: Updates to the framework

On 23 January 2020, the PRA published Policy Statement 2/20: Pillar 2 Capital: Updating the Framework (PS2/20). In PS2/20 the PRA provides feedback to the responses to Consultation Paper 5/19: Pillar 2 capital: Updates to the framework, which set out refinements to the PRA buffer (also referred to as Pillar 2B). In its consultation the … Continue Reading

Letter from Sarah Breeden and David Bailey ‘Removal of bespoke liquidity risk appetite’

On 23 January 2020, the PRA published a letter that it had sent to Chief Financial Officers of PRA regulated UK deposit takers and international banks. The letter was from Sarah Breeden (Executive Director, UK Deposit Takers Supervision) and David Bailey (Executive Director, International Banks Supervision) and concerns the removal of the bespoke liquidity risk … Continue Reading

Financial Services AI public private forum

On 23 January 2020, the FCA and the Bank of England (BoE) announced that they were establishing a Financial Services artificial intelligence public private forum. The forum will explore the means to support safe adoption of technology within financial services, and whether principles, guidance, regulation and/or industry good practice could support the safe adoption of … Continue Reading

European Union (Withdrawal Agreement) Bill 2019-20 receives Royal Assent

On 23 January 2020, the European Union (Withdrawal Agreement) Bill 2019-20 received Royal Assent becoming the European Union (Withdrawal Agreement) Act 2020 (the Act). Amendments made to the Bill in the House of Lords were overturned by MPs sitting in the House of Commons. Article 126 of the Withdrawal Agreement states that there shall be … Continue Reading

5MLD – Infringement proceedings on the horizon

On 21 January 2020, the European Commission published the opening remarks of Executive Vice-President Valdis Dombrovskis at the ECOFIN press conference. Among other things, Mr Dombrovskis notes that by 10 January 2020, Member States should have transposed the Fifth Anti-Money Laundering Directive. However, there are concerns that some Member States have not yet transposed the … Continue Reading

FCA Dear CEO letter on Alternatives Supervision Strategy

On 22 January 2020, the FCA published a Dear CEO letter that outlines its view of the key risks of harm that alternative investment firms pose to their customers or the markets in which they operate. Key messages in the Dear CEO letter include: overall standards of governance, particularly at the level of the regulated … Continue Reading

FCA Dear CEO letter to financial advisers on asset management supervision strategy

On 20 January 2020, the FCA published a Dear CEO letter to asset managers setting out the key areas of harm asset managers pose to their customers and markets in which they operate. Overall, the FCA has observed that standards of governance, particularly at the level of the regulated entity, generally fall below its expectations. … Continue Reading

EBA updates guidelines on fraud reporting under PSD2

On 22 January 2020, the European Banking Authority (EBA) published amendments to its 2018 guidelines on fraud reporting under the revised Payment Services Directive (PSD2). Article 96(6) of PSD2 requires all payment service providers to report statistical data on fraud relating to different means of payment to their national competent authorities and that such competent … Continue Reading

EBA discussion paper on future changes to EU-wide banking sector stress test

On 22 January 2020, the European Banking Authority (EBA) published a discussion paper on future changes to the EU-wide stress test. The proposed new framework comprises of two components owned by supervisors and banks respectively: the supervisory leg and the bank leg. The supervisory leg serves as the starting point for supervisory decisions and would … Continue Reading

FCA statement on second assessing suitability review

On 21 January 2020, the FCA published a statement on its second review of the market for pensions and market advice (the Assessing Suitability Review 2). The review will focus on the advice that consumers receive around retirement income as a greater number of options are now available in retirement planning and it is therefore … Continue Reading
LexBlog