United Kingdom (and EU regulation)

Handbook Notice 106

On 27 January 2023, the FCA published Handbook Notice 106. This Handbook Notice discusses the following instruments that the FCA board approved on 26 January 2023: In relation to the latter instrument it makes changes to the Handbook so that only firms that would have been both significant IFPR firms and IFPRU investment firms under … Continue Reading

New FCA webpage – Cryptoasset AML/CTF regime: feedback on good and poor quality applications

On 25 January 2023, the FCA published a new webpage setting out feedback on good and poor quality applications under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). The feedback is intended to help applicants when they prepare their application for registration. The webpage covers:… Continue Reading

ESRB recommendation on vulnerabilities in the commercial real estate sector in the EEA

On 25 January 2023, the European Systemic Risk Board (ESRB) issued a recommendation on vulnerabilities in the commercial real estate sector in the EEA. The ESRB has also published a report entitled Vulnerabilities in the EEA commercial real estate sector. The ESRB recommends that EU and Member State competent authorities improve the monitoring of systemic … Continue Reading

FCA multi-firm review: Consumer Duty implementation plans

On 25 January 2023, the FCA published the results of its review of the Consumer Duty implementation plans of larger ‘fixed’ firms with a dedicated FCA supervision team. The FCA conducted this review to better understand firms’ approach to embedding the Consumer Duty within their businesses. The FCA has published the findings of the review … Continue Reading

FCA provides further update on ancillary activities exemption for commodity derivatives

On 24 January 2023, the FCA issued a further update on its website regarding the ancillary activities exemption for commodity derivatives. The update follows a statement that the FCA published in March 2022 providing an update on the market share test and Handbook Notice No 99. In the statement of March 2022 the FCA said … Continue Reading

ESMA preliminary data report on the introduction of the market correction mechanism

On 23 January 2023, the European Securities and Markets Authority (ESMA) published a letter that it had sent to Mairead McGuinness, Commissioner in charge of Financial Stability, Financial Services and Capital Markets Union regarding the newly established market correction mechanism (MCM) that it is required to report on under Article 8 of Council Regulation 2022/2578. … Continue Reading

Edinburgh Reforms – SMCR

As part of the Edinburgh Reforms the Chancellor of the Exchequer issued a Ministerial Statement which announced that the Government would launch a review of the Senior Managers and Certification Regime (SMCR) in Q1 2023. The SMCR was introduced by The Financial Services (Banking Reform) Act 2013 (which amended the Financial Services and Markets Act … Continue Reading

Science Based Targets publish financial sector and TCFD reporting guidance

On 19 January 2023, Science Based Targets (SBTi) published financial sector and TCFD reporting guidance. The SBTi guidance considers climate impact by using backward looking emission-based metrics to quantify financed emissions alongside forward-looking target-based metrics to identify carbon intensive holdings and evaluate alignment to 1.5°C plans and pathways.  The Task Force on Climate Related Financial … Continue Reading

FCA announces thematic review of retirement income advice

On 19 January 2023, the FCA announced a thematic review assessing the advice consumers are receiving on meeting their income needs in retirement. Previously planned work on this topic (known as ‘Assessing Suitability Review 2’) was paused to allow resources to be concentrated on the FCA’s response to the COVID-19 pandemic. This new thematic review … Continue Reading

FCA publish Occasional Paper 63: HFTs and dealer banks: liquidity and price discovery in FX trading

On 20 January 2023, the FCA published an Occasional Paper on HFTs and dealer banks: liquidity and price discovery in FX trading. In this Occasional Paper, the FCA characterises the liquidity provision and price discovery roles of dealers and high frequency traders (HFTs) in the FX spot market during the sample period between 2012 and … Continue Reading

Commission publishes envisaged initiatives for H1 2023

The European Commission (Commission) has published its list of upcoming legislative initiatives it is planning to adopt over the first half of 2023. Among others, the Commission is planning to adopt the following financial services and payments-related proposals:… Continue Reading

ESMA consults on manual on post-trade transparency

On 19 January 2023, the European Securities and Markets Authority (ESMA) published a consultation paper which sets out proposals for Level 3 guidance on post trade transparency fields. The guidance takes the form of a manual. In March 2022 ESMA published final reports which proposed amendments to Commission Delegated Regulation (EU) 2017/587 (RTS 1) and … Continue Reading

EBA publishes report on high earners data as of end 2021

On 19 January 2023, the European Banking Authority (EBA) published a report on high earners data as of end 2021. Under the CRD IV and the Investment Firms Directive the EBA is required to publish aggregated data on high earners earning EUR 1 million or more per financial year. In this latest report the EBA … Continue Reading

FSB published progress report on the implementation of G20 non-bank financial intermediation reforms

On 18 January 2023, the Financial Stability Board (FSB) published its progress report on the implementation of G20 non-bank financial intermediation (NBFI) reforms. In 2013, the FSB working with standard-setting bodies, developed a framework and policy toolkit for strengthening the oversight and regulation of non-bank entities. The policy framework aimed to mitigate the potential systemic … Continue Reading

Commission Delegated Regulation amending and correcting RTS as regards certain transparency requirements applicable to transactions in equity instruments

On 17 January 2023, the European Commission published a Commission Delegated Regulation (EU) which amends the regulatory technical standards laid down in Delegated Regulation (EU) 2017/587 as regards certain transparency requirements applicable to transactions in equity instruments. In particular, the Delegated Regulation seeks to harmonise the types of transactions that are considered to be non-price … Continue Reading

Commission Delegated Regulation amending RTS as regards certain transparency requirements applicable to transactions in non-equity instruments

On 17 January 2023, the European Commission published a Commission Delegated Regulation amending the regulatory technical standards laid down in Delegated Regulation (EU) 2017/583 as regards certain transparency requirements applicable to transactions in non-equity instruments. In particular, the Delegated Regulation seeks to harmonise the types of transactions that are considered to be non-price forming and … Continue Reading

New Regulation Tomorrow podcast – Split the difference: Markets in EU and UK – what we should be expecting and hoping to see in 2023

In our new podcast series, Split the difference, which explores divergence between the EU and UK regimes in the markets space, Jonathan Herbst, Hannah Meakin, Anna Carrier and Floortje Nagelkerke provide an overview of what we should be expecting and hoping to see in 2023.… Continue Reading

FCA podcast on understanding the Consumer Duty products and services outcome

On 17 January 2023, the FCA published its latest podcast on the Consumer Duty together with a transcript. The podcast considers the Consumer Duty’s products and services outcome. The podcast makes a number of points including:… Continue Reading

New briefing note – Digital Operational Resilience for the Financial Sector (DORA): 10 things to know

On 16 January 2023, the Regulation on digital operational resilience for the financial sector (DORA) entered into force. As DORA is new and complex EU legislation we have published a new briefing note, Digital Operational Resilience for the Financial Sector (DORA): 10 things to know.… Continue Reading
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