United Kingdom (and EU regulation)

Next 40 minute briefing (4 December) – Going green: ESG reforms

Our next 40 minute briefing will be a seminar. In this briefing members from our financial services team and Government Relations team will discuss the EU legislative measures on sustainable finance and the latest green communications from the PRA and FCA. To register your place for the briefing please click here.… Continue Reading

New publication: UK financial services reporting: Trends and enforcement

There has been a dramatic increase in regulatory reporting obligations, in step with an increase in investigations and enforcement actions. John Coley, Lisa Lee Lewis and Katie Stephen explore the risks and opportunities this creates for firms in the November 2019 issue of PLC magazine. You can access the publication on our webpage.… Continue Reading

ESMA advises on the supervisory regime for third country CCPs

Introduction On 11 November 2019, the European Securities and Markets Authority (ESMA) published three sets of technical advice to the European Commission (Commission) regarding third country central counterparties (TC-CCPs) under the revised European Market Infrastructure Regulation (EMIR 2.2). The technical advice covers: how to specify the criteria to determine whether a TC-CCP is systemically important … Continue Reading

OJ – Commission Delegated Regulation amending the EU ETS Auctioning Regulation

On 8 November 2019, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2019/1868 of 28 August 2019 amending Regulation (EU) No 1031/2010 to align the auctioning of allowances with the EU ETS rules for the period 2021 to 2030 and with the classification of allowances as financial instruments pursuant … Continue Reading

Basel Committee consults on guidelines on interaction and cooperation between prudential and AML/CFT supervision

On 8 November 2019, the Basel Committee on Banking Supervision (Basel Committee) issued a consultative document concerning the introduction of guidelines on the interaction and cooperation between prudential and anti-money laundering / countering the financing of terrorism (AML / CFT) supervision. In the consultative document the Basel Committee proposes certain amendments to its guidelines on … Continue Reading

NCA 2019 report reveals increase of over 50% in consent SARs

The National Crime Agency (NCA) has published its Suspicious Activity Reports (SARs) Annual Report 2019. The report shows that the number of SARs has continued to increase; an issue that prompted the Law Commission to propose a series of reforms to the SAR regime earlier this year. There has been a 3% increase in the … Continue Reading

FCA statement on SEC decision to extend no-action relief relating to MiFID II inducements and research provisions

On 8 November 2019, the FCA published a statement on the US Securities and Exchange Commission’s announcement to extend the SEC staff “no action letter” relating to the MiFID II Directive inducements and research provisions. The letter addresses the potential conflict between US regulation and MiFID II. The existing relief was due to expire on … Continue Reading

Financial Services Duty of Care Bill to make no further progress

On 8 November 2019, the UK Parliament updated its webpage on the Financial Services Duty of Care Bill 2019 (the Bill). Following the dissolution of the 2017-2019 Parliament, the Bill will make no further progress. For more information on the Bill, see our previous blog here. In October 2019, the FCA expressed its intentions to … Continue Reading

FSB plenary meeting November 2019

On 7 November 2019, the Financial Stability Board (FSB) published a press release outlining the discussions held during its plenary meeting in New York. Key points from the meeting include: Current vulnerabilities in the global financial system. Members discussed a report assessing vulnerabilities associated with leveraged loans and collateralised loan obligations. The report suggests that … Continue Reading

Commission Delegated Regulation amending PRIIPs Delegated Regulation to align transitional arrangements

On 8 November 2019, there was published in the Official Journal of the European Union (OJ) a  Commission Delegated Regulation (EU) 2019/1866 which amends Article 18 of Delegated Regulation (EU) 2017/653 supplementing the Regulation on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to … Continue Reading

Council of EU adopts EU consumer protection Directive

On 8 November 2019, the Council of the EU announced that it had adopted a Directive amending the Unfair Commercial Practices Directive (2005/29/EC), the Consumer Rights Directive (2011/83/EU), the Unfair Contract Terms Directive (93/13/EEC) and the Price Indication Directive (98/6/EC) (the Directive). The intention of the Directive is to guarantee higher standards of protection for … Continue Reading

Council of EU adopts legislative reforms to progress the Capital Markets Union

On 8 November 2019, the Council of the EU announced that it had adopted a set of legislative reforms which are part of the progress towards forming the Capital Markets Union, including: the creation of a new category of benchmarks contributing to sustainable finance; transparency obligations for sustainable investments; a new prudential framework for investment … Continue Reading

EBA progress report on NPLs

On 8 November 2019, the European Banking Authority (EBA) published its second thematic report on non-performing loans (NPLs). The report is based on supervisory data of asset quality metrics, and provides an update on the progress made so far in addressing NPLs in Europe. It also takes stock of ongoing initiatives to tackle the NPL … Continue Reading

PRA sends ‘Dear CEO’ letter to general insurance firms setting out current areas of focus

On 5th November, acting director of insurance supervision at the Prudential Regulation Authority (PRA), Gareth Truran, sent a letter to the Chief Executives of general insurance firms. The letter sets out the PRA’s priorities for the general insurance sector in the coming months. The letter focuses on: Reserving adequacy, governance and controls – particularly in … Continue Reading

New Banking horizons video: All change: the trends reshaping the global payments landscape

In our latest Banking horizons video, Alan Bainbridge, partner and global head of banks, and Albert Weatherill, senior associate, discuss the commercial, legal and regulatory issues currently impacting the payments space, as well as what they see as lying ahead.… Continue Reading

FCA statement on UK EMIR validation rules

On 7 November 2019, the FCA published an updated statement on the reporting of derivatives under the UK EMIR regime in a no-deal scenario. The statement explains that in the event that the UK withdraws from the EU without an agreed deal on 31 January 2020, UK reporting counterparties and trade repositories (TRs) should use … Continue Reading

ECB working group recommendations for fallback provisions in contracts referencing LIBOR

On 6 November 2019, the European Central Banks’s (ECB) working group on euro risk-free rates issued high level recommendations for fallback provisions in contracts referencing EURIBOR. The working group notes that historically, contractual fallback provisions generally only contemplate the temporary unavailability of EURIBOR and do not address its permanent cessation and/or any differences between EURIBOR … Continue Reading

OJ publication – RTS on the homogeneity of the underlying exposures in securitisation

In July the European Banking Authority published two final draft regulatory technical standards (RTS) under the Securitisation Regulation. The first of these RTS established the conditions for which underlying exposures are to be considered homogeneous, being one of the requirements with respect to simplicity, standardisation and transparency of a securitisation transaction. Our earlier blog is … Continue Reading

Council of EU and European Commission draft joint statement on stablecoins

On 6 November 2019, the Council of the EU released a note (13571/19) from its Presidency addressed to it, which annexes a joint statement of the Council and the European Commission (Commission) on stablecoins. In particular, the joint statement provides that “the Council and the Commission state that no global stablecoin arrangement should begin operation … Continue Reading

EBA revised materials for EU-wide stress test 2020

On 7 November 2019, the European Banking Authority (EBA) published the final methodology and draft templates for its 2020 EU-wide stress test along with key milestones of the exercise. The objective of the stress test is to provide EU supervisors, banks and other market participants with a common analytical framework to consistently compare and assess … Continue Reading

New EU prudential regime for investment firms – webinar recording

The recording from our latest 40 minute briefing webinar covering the new EU prudential regime for investment firms is now available. The webinar covers: Where we are in the legislative process for the IFR and IFD; Transitional provisions; Firm classification; New prudential requirements; Remuneration and governance; Equivalence; and What does the new regime mean in … Continue Reading

FMLC addendum to paper on legal uncertainty arising out of Brexit – the provision and application of third country regimes in EU legislation

On 5 November 2019, the Financial Markets Law Committee (FMLC) published an addendum to its July 2017 paper (see previous blog here) which focused on issues of legal uncertainty arising out of the UK’s withdrawal from the European Union without retaining access to the Single Market under any other legal provision. The addendum provides key … Continue Reading

The Prospectus Directive and Transparency Directive Equivalence (Variation) Directions 2019

On 6 November 2019, there was published on legislation.gov.uk the Prospectus Directive and Transparency Directive Equivalence (Variation) Directions 2019 (Directions). The Directions have been made by HM Treasury in exercise of the power conferred by regulation 2(1) and paragraph 9 of Schedule 1 of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) … Continue Reading