United Kingdom (and EU regulation)

UNEPFI – Guidelines for Climate Target Setting for Banks

On 21 April 2021, the United Nations Environment Programme Finance Initiative (UNEPFI) published guidelines for climate targets setting for banks. The guidelines outline key principles to underpin the setting of credible, robust, impactful and ambitious targets in line with achieving the objectives of the Paris Agreement. The guidelines outline four principles for target-setting: Banks shall … Continue Reading

BoE speeches – Meeting varied people

On 21 April 2021, the Bank of England published speeches from: Andrea Rosen (AR) – Opening remarks: meeting varied people. In her opening remarks AR briefly covers the BoE’s market intelligence activities and why pursuing diversity in the markets contacts is so important. In particular AR states that gathering the widest possible range of well-informed … Continue Reading

The Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021

On 21 April 2021, there was published on the legislation.gov.uk website The Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021 together with an explanatory memorandum. The statutory instrument is part of the legislative effort to establish a United Kingdom (UK) Emissions Trading Scheme (ETS) and accompanying emission allowance market. The statutory instrument updates existing … Continue Reading

Commission consults on a road map for a retail investment strategy

On 20 April 2021, the European Commission published for consultation a road map for a retail investment strategy for the EU. The September 2020 Capital Markets Union Action Plan noted the Commission’s intention to propose a retail investment strategy for the first half of the year of 2022, that should seek to ensure that retail … Continue Reading

Commission Implementing Regulation on ITS on public disclosures under CRR published in OJ

On 21 April 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/637 of 15 March 2021 laying down implementing technical standards with regard to public disclosures by institutions of the information referred to in Titles II and III of Part Eight of Regulation (EU) No 575/2013 of the … Continue Reading

Commission adopts Delegated Regulation correcting MiFID II Delegated Regulation

On 21 April 2021, the European Commission adopted a Delegated Regulation and Annex correcting Delegated Regulation (EU) 2017/565 supplementing MiFID II (the MiFID II Delegated Regulation) as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of MiFID II. The Delegated Regulation amends Article 1 paragraph 1 of the … Continue Reading

European Commission adopts legislative and regulatory package on sustainable finance

The European Commission (Commission) has published a number of legislative and regulatory initiatives in the context of its Sustainable Finance Action Plan. The aim of the Sustainable Finance Action Plan, which was first presented in 2018, is to channel more investment towards sustainable activities. The Commission has published the following initiatives: A Delegated Regulation under … Continue Reading

FCA speech: Levelling the playing field – innovation in the service of consumers and the market

On 20 April 2021, the FCA published a speech given by its CEO, Nikhil Rathi, during the FinTech Week event. The speech is entitled Levelling the playing field – innovation in the service of consumers and the market. Highlights in the speech include: The Chancellor has announced that the FCA will be taking forward the … Continue Reading

Joint Association Letter on the use of EEA UCITS as Collateral

On 19 April 2021, ISDA, the Alternative Investment Management Association, Investment Company Institute, the Institutional Money Market Funds Association and SIFMA’s Asset Management Group sent a letter to the Bank of England, FCA and HM Treasury to ask them to permit EEA UCITS to be used as collateral in their non-cleared derivatives business. Under the … Continue Reading

CP21/8: FCA regulated fees and levies: Rates Proposals 2021/22

On 20 April 2021, the FCA published Consultation Paper 21/8 ‘FCA regulated fees and levies: rates proposals 2021/22’ (CP21/8). In CP21/8 the FCA consults on its periodic fees for the next financial year (2021/22) and further FCA fees policy proposals. The FCA is also consulting on the Financial Ombudsman Service general levy, Money and Pensions … Continue Reading

FMSB publishes Spotlight Review on LIBOR back book transition

On 20 April 2021, the FICC Markets Standards Board (FMSB) published a new Spotlight Review on LIBOR transition, looking at how market participants may manage potential conduct risks arising in back book transition. Back book transition covers long-dated derivative contracts and the need for parties to them to take steps before the end of 2021 … Continue Reading

PRA – Waivers and modifications of rules

On 19 April 2021, the PRA updated its webpage concerning waivers and modifications of rules. The updated webpage states that the consolidated list of waivers, CRR and Solvency II Permissions granted by the PRA to PRA-authorised firms is no longer being provided. If PRA-authorised firms wish to discuss their requirements they need to contact PRA-Waivers@bankofengland.co.uk. … Continue Reading

FCA reviewing how its Regulatory Decisions Committee functions

In a speech yesterday by the FCA’s CEO, Nikhil Rathi, to FinTech Week the FCA has said that it is currently reviewing how the Regulatory Decisions Committee (RDC) functions. The RDC  is  a Committee of the FCA Board which makes certain key decisions including in the context of contested enforcement matters and supervisory and authorisation … Continue Reading

Changes to the EU Securitisation Regulation – a more liberal approach to NPE securitisations and extending the STS framework – EU/UK regulatory divergence in action?

Regulation (EU) 2021/557 and Regulation (EU) 2021/558 (together, the Regulations) were published in the Official Journal of the European Union on 6 April 2021 and came into force on 9 April 2021. Regulation (EU) 2021/557 amended European Regulation 2017/2402 (EUSR)[i] extending the Simple, Transparent and Standardised (STS) framework to on-balance sheet synthetic securitisations (previously only … Continue Reading

FATF Meeting of Private Consultative Forum on Virtual Assets

On 20 April 2021, the Financial Action Task Force (FATF) hosted a meeting of its private consultative forum to discuss its ongoing work streams concerning virtual assets. The meeting was organised in two main sessions: the first session was focused on money laundering (ML) and terrorist financing (TF) risks in virtual assets, and the second … Continue Reading

Webinar | IFR / IFD: the new prudential regime for MiFID II investment firms

Date: 12th May 2021 Time: 08:50am – 09:30am GMT Set to take effect in Europe on 26 June 2021 and in the UK on 1 January 2022, the Investment Firm Regulation (IFR) and the Investment Firm Directive (IFD) will make significant changes to the framework governing investment firms authorised under the revised Markets in Financial … Continue Reading

FCA CP21/7 A new UK prudential regime for MiFID investment firms

Introduction On 19 April 2021, the FCA issued the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR) by publishing Consultation Paper 21/7: A new UK prudential regime for MiFID investment firms (CP21/7). CP21/7 should be read in conjunction with the FCA’s first consultation paper on the IFPR which it … Continue Reading

Ambitious plans to boost UK fintech and financial services set out by Chancellor

On 19 April 2021, HM Treasury issued a press release regarding the comments that the Chancellor, Rishi Sunak MP, made at the Fintech Week conference. Key points in the press release include: To support fintech firms to scale up, the FCA will take forward a ‘scale box’ – a package of measures to enhance its … Continue Reading

ECB project report on TRIM

On 19 April 2021, the European Central Bank (ECB) published a project report concerning a targeted review of internal models. The targeted review of internal models (TRIM) was a multi-year project launched by the ECB at the beginning of 2016 in close cooperation with the national competent authorities (NCAs) that are part of European banking … Continue Reading

HM Treasury consultation – Regulation of non-transferable debt securities (mini-bonds)

On 19 April 2021, HM Treasury issued a consultation document on the regulation of non-transferable debt securities (mini-bonds). Non-transferable debt securities (NTDS), commonly referred to as ‘mini-bonds’, are unlisted bonds typically issued by companies to retail investors in order to raise finance. As non-transferable securities, investors cannot sell their investment, which normally must be held … Continue Reading