United Kingdom (and EU regulation)

FSB publishes implementation progress of OTC derivatives market reforms in 2021

On 3 December 2021, the Financial Stability Board (FSB) published a report regarding the implementation progress of over-the-counter (OTC) derivatives market reforms in 2021. The report tracks the international progress in implementing G20 reforms to global OTC derivatives markets following the 2008 global financial crisis. The following progress has been made since the previous annual … Continue Reading

FCA Discussion Paper 21/5 ‘Compensation framework review’

On 6 December 2021, the Financial Conduct Authority (FCA) published Discussion Paper 21/5 ‘Compensation framework review’ (DP21/5). The purpose of DP21/5 is to open a discussion with stakeholders on ways in which aspects of the compensation framework which the FCA is responsible for could be improved. The review is not of the Financial Services Compensation … Continue Reading

HM Treasury consultation – amendments to the Building Societies Act 1986

On 6 December 2021, HM Treasury issued a consultation setting out proposals to update the Building Societies Act 1986 with regard to building societies’ funding model and corporate governance requirements. It also requests views on future trends which may impact building societies’ funding models. The government proposes: excluding funding from liquidity insurance facilities within the … Continue Reading

FCA publishes second consultation on new Consumer Duty

On 7 December 2021, the FCA published Consultation Paper 21/36 ‘A new Consumer Duty – Feedback to CP21/13 and further consultation (CP21/36). CP21/36 follows Consultation Paper 21/13: A new Consumer Duty (CP21/13) which the FCA published in May. In CP21/13 the FCA set out a package of proposals for a ‘Consumer Duty’ consisting of: A … Continue Reading

Beyond the temporary permissions regime: what is next for EEA firms operating in the UK?

Following Brexit, European firms that were previously providing services in the UK (either through a UK branch or on a cross-border basis) in reliance upon passporting rights, are able to continue to do so under the UK’s temporary permissions regime (TPR) for a period of time. The TPR will expire on 31 December 2023, unless … Continue Reading

New online briefing note – European Commission’s AIFMD legislative proposal: Focus on delegation

We have published a new online briefing note on the European Commission’s AIFMD legislative proposal focussing on delegation.… Continue Reading

FCA proposes stronger requirements on oversight of appointed representatives

On 3 December 2021, the FCA published Consultation Paper 21/34 ‘Improving the Appointed Representatives regime’ (CP21/34). On the same date HM Treasury issued a call for evidence on how market participants use the appointed representatives (ARs) regime; how effectively the regime works in practice; potential challenges to the safe operation of the regime; and possible … Continue Reading

BoE’s review of its approach to setting MREL – Policy Statement

On 3 December 2021, the Bank of England (BoE) issued a Policy Statement ‘The Bank of England’s review of its approach to setting a minimum requirement for own funds and eligible liabilities’. The Policy Statement follows a consultation that the BoE conducted earlier this year which reviewed its approach to setting a minimum requirement for … Continue Reading

Speech by Mairead McGuinness: Structured Dialogue with the ECON Committee in the European Parliament

On 3 December 2021, the European Commission published the opening remarks made by Mairead McGuiness at the Structured Dialogue with the ECON Committee in the European Parliament. Among others things the remarks mention that: An extension of the equivalence decision for UK CCPs will be proposed early in 2022. The goal is to set up … Continue Reading

Derivatives clearing obligation – introduction of contracts referencing TONA: Amendment to BTS 2015/2205

On 3 December 2021, the Bank of England (BoE) published a Policy Statement containing its final policy on the proposal to add Overnight Index Swaps (OIS) that reference TONA to the scope of contracts subject to the derivatives clearing obligation. The BoE’s final policy maintains the proposal in an earlier consultation to add TONA OIS … Continue Reading

FCA publishes Consultation Paper 21/35 ‘Quarterly Consultation No 34’

On 3 December 2021, the Financial Conduct Authority (FCA) published Consultation Paper 21/35 ‘Quarterly Consultation No 34’ (CP21/35). In CP21/35 the FCA proposes: Chapter 2 – Minor amendments to the Enforcement Guide to reflect the EU Exit Passport Regulations. Changes will provide information about when the FCA are generally likely to consider using the power … Continue Reading

Primary Market Effectiveness Review: Feedback and final changes to the Listing Rules (PS21/22)

On 2 December 2021, the Financial Conduct Authority (FCA) published Policy Statement 21/22 ‘Primary Market Effectiveness Review: Feedback and final changes to the Listing Rules’ (PS21/22). In PS21/22 the FCA provides feedback to the comments received on Consultation Paper 21/21 ‘Primary Markets Effectiveness Review’ (CP21/21) and sets out final rules. In CP21/21 the FCA sought … Continue Reading

What’s coming up in December?

Introduction Here is a short summary of some of the key regulatory milestones in December. EU Commission Implementing Regulation (EU) 2021/1848 on the designation of a replacement for the benchmark Euro overnight index average (EONIA) and Commission Implementing Regulation (EU) 2021/1847 of 14 October 2021 on the designation of a statutory replacement for certain settings … Continue Reading

The UK TPR is ending – what should EU firms do next?

The recording of our recent webinar ‘The UK TPR is ending – what should EU firms do next’ is now available. The webinar, which is targeted both at standalone EU firms using the temporary permissions regime (TPR) and at EU firms using the TPR who are within those groups with a UK presence, covers the … Continue Reading

FCA PS21/20 ‘Changes to UK MiFID’s conduct and organisational requirements’

On 30 November 2021, the Financial Conduct Authority (FCA) published Policy Statement 21/20 ‘Changes to UK MiFID’s conduct and organisational requirements’ (PS21/20). In PS21/20 the FCA sets out its final policy position and rules on changes to the research rules and the removal of best execution reporting in Regulatory Technical Standards (RTS) 27 and 28. … Continue Reading

FCA consults on regulatory fees and levies for 2022/23

On 30 November 2021, the Financial Conduct Authority (FCA) published Consultation Paper 21/33 ‘Regulatory fees and levies proposals for 2022/23’ (CP21/33). In CP21/33 the FCA sets out proposed policy changes to the way in which it will raise FCA fees from 2022/23. The FCA is funded entirely by the fees and levies from the firms … Continue Reading

FSB report on good practices for Crisis Management Groups

On 30 November 2021, the Financial Stability Board (FSB) issued a report on good practices for Crisis Management Groups (CMGs). The report sets out good practices that have helped CMGs to enhance preparedness for the management and resolution of a cross-border financial crisis affecting a global systemically important bank (G-SIB) consistent with the FSB’s Key … Continue Reading

FCA PS21/19: Changes to the SCA-RTS and to guidance in the Approach Document and the Perimeter Guidance Manual

On 29 November 2021, the FCA published Policy Statement 21/19 ‘Changes to the SCA-RTS and to the guidance in ‘Payment Services and Electronic Money – Our Approach’ and the Perimeter Guidance Manual’ (PS21/19). Earlier this year the FCA issued Consultation Paper 21/3 ‘Changes to the SCA-RTS and to the guidance in ‘Payment Services and Electronic … Continue Reading

PRA DP3/21 – The PRA Rulebook website: Planned updates

On 29 November 2021, the PRA issued Discussion Paper 3/21 ‘The PRA Rulebook website: Planned updates’ (DP3/21). In DP3/21 the PRA sets out its plans for the next iteration of the PRA Rulebook website, as well as possible future changes on a longer timeframe. In its Business Plan for 2021/22, the PRA mentioned that it … Continue Reading

FCA publish a policy statement restricting CMC charges for financial products and services claims

On 29 November 2021, the Financial Conduct Authority (FCA) published Policy Statement 21/18 ‘Restricting CMC charges for financial products and services claims’ (PS21/18). In PS21/18 the FCA responds to the comments received to Consultation Paper 21/1 ‘Restricting CMC charges for financial services and products claims’ (CP21/1) and sets out final rules. In PS21/18 the FCA … Continue Reading

IOSCO and CPMI publish a discussion paper on client clearing: access and portability

On 29 November 2021, the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) published a discussion paper on client clearing. The discussion paper considers issues concerning access to central counterparties (CCPs) and effective porting practices. The discussion paper does not intend to provide guidance on … Continue Reading

Draft Solvency 2 (Group Supervision) (Amendment) Regulations 2021 laid before Parliament

A draft of the Solvency 2 (Group Supervision) (Amendment) Regulations 2021 was laid before Parliament on 15 November 2021, alongside a draft explanatory memorandum.  The regulations are part of the measures being taken to address deficiencies in UK law after leaving the European Union. The draft regulations amend provisions (regulations 24-26 and 28) of the … Continue Reading

PS21/17 ‘A new UK prudential regime for MiFID investment firms’

On 26 November 2021, the FCA published Policy Statement 21/17 ‘A new UK prudential regime for MiFID investment firms’ (PS21/17). PS21/17 is the third in a series of Policy Statements on the UK Investment Firm Prudential Regime (IFPR). In PS21/17 the FCA summarises the feedback it received to Consultation Paper 21/26 ‘A new UK prudential … Continue Reading
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