United Kingdom (and EU regulation)

Part 4: The Growing Importance of the Money Laundering Reporting Officer

2021 Financial crime Outlook series Senior management and boards are increasingly acknowledging the threat of financial crime as a critical risk to their business that must be addressed. This has been exacerbated in the last 12 months through the impact of the pandemic as well as rising domestic and international tensions. Our financial crime compliance … Continue Reading

Outcomes of the February 2021 FATF Plenary

By Lisa Lee Lewis (UK) and Clarinda Grundy on February 26, 2021 Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

The first quarterly Financial Action Task Force (FATF) plenary of 2021 took place over 22, 24 and 25 February 2021 to discuss developments with respect to anti-money laundering (AML) and counter terrorist financing (CTF). Delegates discussed a number of initiatives relating to FATF’s strategic priorities as well as the AML/CTF frameworks of specific jurisdictions. The … Continue Reading

HM Treasury consultation – Expanded resolution regime for CCPs

By Hannah Meakin (UK) and Hannah McAslan (UK) on February 25, 2021 Posted in Clearing and settlement, United Kingdom

On 24 February 2021, HM Treasury issued a consultation document setting out the Government’s proposals to expand the resolution regime for central counterparties (CCPs). Amendments to the Banking Act 2009 extended the UK’s resolution regime for banks to include CCPs (although the regime takes a different approach to a CCP resolution in comparison to a … Continue Reading

EBA consults on draft technical standards to improve supervisory cooperation for investment firms

By Simon Lovegrove (UK) on February 25, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 24 February 2021, the European Banking Authority (EBA) issued two public consultations on regulatory technical standards (RTS) and implementing technical standards (ITS) on cooperation and information exchange between Member State competent authorities involved in the prudential supervision of investment firms. The draft standards are part of the phase 2 mandates of the EBA roadmap … Continue Reading

Commissioner McGuinness speech, ‘What Vision for Europe?’

By Simon Lovegrove (UK) on February 25, 2021 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

On 23 February 2021, the European Commission published the speech that Commissioner McGuinness gave at the European Parliamentary Financial Services Forum Winter Conference, ‘What vision for Europe?’ Key points in the speech include: Some Member States are expected to see economic output returning to pre-pandemic levels by the end of this year, while the recovery … Continue Reading

BoE letter to CEOs of major UK banks in scope of the first RAF reporting and disclosure cycle

By Jochen Vester (UK) on February 25, 2021 Posted in Banking, United Kingdom

On 24 February 2021, the Bank of England (BoE) published the letter it had sent to the CEOs of the eight major UK banks in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle. The letter mentions that during the first RAF cycle, the BoE will place particular emphasis on examining how … Continue Reading

ESMA’s second annual report on waivers and deferrals for non-equity instruments

By Hannah Meakin (UK) and Jochen Vester (UK) on February 25, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 24 February 2021, the European Securities and Markets Authority (ESMA) published its second annual report on waivers and deferrals for non-equity instruments under MiFIR. Articles 4(4) and 9(2) of the Markets in Financial Instruments Regulation (MiFIR) require ESMA to monitor the application of pre-trade transparency waivers and to submit an annual report to the … Continue Reading

Working Group on Sterling Risk-Free Reference Rates paper – Path to ending new use of GBP LIBOR-linked derivatives

By Hannah Meakin (UK) on February 25, 2021 Posted in Benchmarks – IBOR transition, United Kingdom

On 24 February 2021, the Working Group on Sterling Risk-Free Reference Rates published a paper to support market participants in meeting its upcoming recommended milestones for ending new use of GBP LIBOR in derivatives. The first of these is to cease initiation of new GBP LIBOR-linked linear derivatives by the end of March 2021, except … Continue Reading

Delegated Regulations supplementing the PEPP Regulation

By Imogen Garner (UK) and Georgia Karamani (UK) on February 25, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 24 February 2021, the European Commission published: Commission Delegated Regulation of 24.2.2021 supplementing Regulation (EU) No 2019/1238 of the European Parliament and of the Council with regard to additional information for the purposes of the convergence of supervisory reporting. Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 … Continue Reading

ESMA guidelines to harmonise CCP supervisory reviews and evaluation under EMIR

By Anna Carrier (BE) on February 25, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 24 February 2021, the European Securities and Markets Authority (ESMA) issued a final report on guidelines designed to assist Member State competent authorities in the application of the European Market Infrastructure Regulation provisions that deal with the review and evaluation of central counterparties. The guidelines will be translated in the official EU languages and … Continue Reading

FCA launches guidance for firms on the fair treatment of vulnerable customers

By Matthew Gregory (UK) and John Coley (UK) on February 24, 2021 Posted in Retail, United Kingdom

On 23 February 2021, the FCA published Finalised Guidance 21/1: Guidance for firms on the fair treatment of vulnerable customers (FG21/1). FG21/1 applies to all firms where the Principles for Businesses (Principles) apply, regardless of sector. It applies to the supply of products or services to retail customers who are natural persons, even if a … Continue Reading

Transforming Data Collection from the UK Financial Sector: A Plan for 2021 and beyond

By Simon Lovegrove (UK) on February 24, 2021 Posted in Regulation and compliance, United Kingdom

On 23 February 2021, the Bank of England (BoE) published ‘Transforming Data Collection from the UK Financial Sector: A Plan for 2021 and beyond’. The document is the BoE’s plan to transform its ability to collect data over the next decade. The document is the BoE’s response to deal with the strains that are currently … Continue Reading

Financial services 40 minute briefings: The changing shape of the retail sector

By Matthew Gregory (UK) and John Coley (UK) on February 23, 2021 Posted in Seminars, webinars and podcasts, United Kingdom

The pandemic has created a number of challenges for the retail sector as firms deal with growing operational and financial pressures, whilst many of their customers face difficulties in meeting their commitments. Join us on 3 March at 08.50 – 09.30 GMT for our latest 40 minute briefing as we explore the current state of … Continue Reading

EBA calls on national authorities to take supervisory actions for the removal of obstacles to account access under the Payment Services Directive

By Simon Lovegrove (UK) on February 23, 2021 Posted in France, Germany, Italy, Payment services, Payment Services, Payment services, Payment services, The Netherlands, United Kingdom

On 22 February 2021, the European Banking Authority (EBA) issued a regulatory opinion on supervisory actions Member State competent authorities (NCAs) should take to ensure banks remove any remaining obstacles that prevent third party providers from accessing payment accounts, which restrict EU consumers’ choice of payment services. The EBA has produced the opinion under the … Continue Reading

Enhancing regulatory accountability through increased challenge

By Katie Stephen (UK), Matthew Gregory (UK) and Catherine Pluck (UK) on February 22, 2021 Posted in Banking, Brexit, Financial Services, United Kingdom

Executive summary The ability of firms to effectively challenge regulatory decisions on rule-making and rule application is a key part of holding regulators properly to account. Whilst there are existing review mechanisms in place for firms such as the ability to seek judicial review through the courts, some features of these mechanisms may currently be … Continue Reading

EBA final report on draft RTS for determination of indirect exposures to underlying clients of derivatives and credit default derivatives under CRR

By Simon Lovegrove (UK) on February 22, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 19 February 2021, the European Banking Authority (EBA) published a final report containing draft regulatory technical standards (RTS) on the determination of indirect exposures to underlying clients of derivative and credit derivative contracts under Article 390(9) of the Capital Requirements Regulation (CRR). Article 390(5) of the CRR, as amended by Regulation (EU) 2019/876, requires … Continue Reading

EBA publishes final draft technical standards on disclosure of indicators of global systemic importance by G-SIIs

By Simon Lovegrove (UK) on February 19, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 18 February 2021, the European Banking Authority (EBA) issued a final report containing final draft Implementing Technical Standards (ITS) on the disclosure of indicators of global systemically important institutions (G-SIIs). The final report has been prepared by the EBA in pursuance to the mandate given to it under Article 434a of the Capital Requirements … Continue Reading

Commission Implementing Regulation amending Implementing Regulation (EU) 2015/2197 with regard to closely correlated currencies in accordance with the CRR

By Matthew Gregory (UK) on February 19, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 18 February 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2021/249 of 17 February 2021 amending Implementing Regulation (EU) 2015/2197 with regard to closely correlated currencies in accordance with the Capital Requirements Regulation. The Annex to Implementing Regulation (EU) 2015/2197 is replaced by the text in … Continue Reading

Council Presidency seeks relaunch of the EU FTT debate

By Anna Carrier (BE) on February 19, 2021 Posted in EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, France, Germany, Italy, The Netherlands, United Kingdom

The Portuguese Presidency of the Council (“the Presidency”) will host on 24 February 2021 a meeting of the Working Party on Tax Questions, the main agenda item of which includes a discussion on the current state of play and on the way forward in respect of the Proposal for a Council Directive implementing enhanced cooperation … Continue Reading

EBA consults on guidance to assess breaches of the large exposure limits

By Matthew Gregory (UK) on February 18, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 17 February 2021, the European Banking Authority (EBA) published a consultation paper concerning draft guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits of Article 395(1) of the Capital Requirements Regulation (CRR) and the time and measures to return to compliance pursuant to Article 396(3) of the … Continue Reading

Raising capital in Europe: Key regulatory issues for US asset managers

By Martin Krause (DE), Imogen Garner (UK), Manfred Dietrich (LU), Floortje Nagelkerke (NL) and Simon Lovegrove (UK) on February 18, 2021 Posted in Germany, Italy, Seminars, webinars and podcasts, The Netherlands, United Kingdom, United States

When looking for new sources of investors and capital US fund managers often look towards Europe, but the European market is more tightly regulated when compared to the US market. In our forthcoming webinar taking place on February 25, 2021, Raising capital in Europe: Key regulatory issues for US asset managers, a team of partners … Continue Reading

ESMA board of supervisors – decision on delegation to the ESMA Chair of the adoption of non-controversial opinions on position limits

By Hannah McAslan (UK) on February 18, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 27 January 2021, the European Securities and Markets Authority (ESMA) issued a decision from its board of supervisors concerning the delegation to the chair of non-controversial opinions on position limits. The board of supervisors has delegated to the chair of ESMA the task to: Assess the compatibility of position limits with the objectives of … Continue Reading

Commission Delegated Regulation amending Delegated Regulation (EU) 2016/2251 as regards to the timing of when certain risk management procedures will start to apply for the purpose of the exchange of collateral

By Jochen Vester (UK) on February 18, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 17 February 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/236 of 21 December 2020 amending technical standards laid down in Delegated Regulation (EU) 2016/2251 as regards to the timing of when certain risk management procedures will start to apply for the purpose of the exchange … Continue Reading

Commission Delegated Regulation (EU) 2021/237 of 21 December 2020 amending RTS laid down in Delegated Regulations (EU) 2015/2205, (EU) 2016/592 and (EU) 2016/1178 as regards the date at which the clearing obligation takes effect for certain types of contracts

By Hannah Meakin (UK) on February 18, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 17 February 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/237 of 21 December 2020 amending regulatory technical standards (RTS) laid down in Delegated Regulations (EU) 2015/2205, (EU) 2016/592 and (EU) 2016/1178 as regards the date at which the clearing obligation takes effect for certain types … Continue Reading