United Kingdom (and EU regulation)

UK Funds Outlook

Introduction Irrespective of one’s view on whether the FX and Gilts markets’ reaction to the UK mini-budget announced on September 23 2022 was proportionate to the threat posed to the UK’s fiscal position and Sterling, the crisis of confidence and volatility triggered by the mini-budget has served to focus attention on the UK’s particular set … Continue Reading

FCA Dear CEO letter – FCA strategy for firms providing high-cost lending products

On 6 October 2022, the FCA published a Dear CEO letter which sets out an updated view on the key risks of harm the regulator believes high-cost lending firms pose to their customers and the markets in which they operate. The FCA also sets out in the letter its strategy for this portfolio of firms … Continue Reading

New FCA webpage ‘Consumer Duty – information for firms’

On 5 October 2022, the FCA published a new webpage ‘Consumer Duty – information for firms’. The FCA has created the webpage following the receipt of queries from firms on the new Consumer Duty. The webpage covers three areas which cover queries which are relevant for the wider market: October implementation plans. The FCA does … Continue Reading

RTS under Articles 124(4) and 164(8) of the CRR

On 5 October 2022, the European Commission published a draft Delegated Regulation supplementing the Capital Requirements Regulation with regard to regulatory technical standards (RTS) specifying the types of factors to be considered for the assessment of the appropriateness of risk weights for exposures secured by immovable property and the conditions to be taken into account … Continue Reading

The new Economic Crime and Corporate Transparency Bill: its plans to reform Companies House and improve policing of cryptoassets

In this post, we summarise the new Economic Crime and Corporate Transparency Bill (the Bill) which was published on 22 September 2022 and the significant reform proposed to the role of Companies House. The Bill proposes giving Companies House improved investigation and enforcement powers and makes changes to strengthen regulators’ powers to seize and detain … Continue Reading

The New Economic Crime Bill and plans to expand the Serious Fraud Office’s investigative Powers

In recent years, the UK government has been seeking to tackle ever-growing financial crime and money laundering. In this post, we summarise the Economic Crime and Corporate Transparency Bill (the Bill) published on 22 September 2022 as well the expansion of the Serious Fraud Office’s (SFO) investigative powers under the Bill in an effort to … Continue Reading

Basel Committee report – Buffer usability and cyclicality in the Basel framework

On 5 October 2022, the Basel Committee on Banking Supervision issued a report, Buffer usability and cyclicality in the Basel framework. The report is the Basel Committee’s second report on the impact and effectiveness of the implemented Basel reforms and provides an in-depth examination of several questions regarding buffer usability and cyclicality of the Basel … Continue Reading

FCA CP22/19 ‘Creation of a baseline financial resilience regulatory return’

On 3 October 2022, the FCA published Consultation Paper 22/19 ‘Creation of a baseline financial resilience regulatory return’ (CP22/19). In CP22/19 the FCA is proposing is introduce a new baseline financial resilience regulatory return, FIN073, which will replace the current Financial Resilience Survey (FRS) issued to the solo regulated firm population. The FCA estimates that … Continue Reading

FCA Market Watch 70

On 3 October 2022, the FCA published Market Watch 70. Market Watch is the FCA’s newsletter on market conduct and transaction reporting issues. In this issue the FCA outlines some of its recent observations on the transaction reporting and instrument reference data regimes. Key points in this issue of Market Watch include: National identifiers. The … Continue Reading

ESAs propose disclosures for fossil gas and nuclear energy investments

On 30 September 2022, the three European Supervisory Authorities (ESAs) published a final report containing draft regulatory technical standards (RTS) regarding the disclosure of financial products’ exposure to investments in fossil gas and nuclear energy activities under the Sustainable Finance Disclosure Regulation (SFDR). The proposed RTS amend the RTS laid down in Delegated Regulation (EU) … Continue Reading

EBA response to the Commission on the current level of margins and of excessive volatility in energy derivatives markets

On 29 September 2022, the European Banking Authority (EBA) published its response to the European Commission’s earlier letter asking the European Supervisory Authority for its views on the current level of margins and of excessive volatility in energy derivatives markets. In summary the EBA states that: Banks are already providing significant levels of support to … Continue Reading

The FCA’s Consultation Paper on the perimeter of the definition of trading venue

There are three types of trading venue under MiFID II: Regulated Markets, Multilateral Trading Facilities and Organised Trading Facilities. MiFID II introduced a definition of multilateral system[1], still relevant in the UK, which is common to all types of trading venue and requires that all multilateral systems operate in accordance with Title II or Title … Continue Reading

All signs point to increased US regulation of Buy Now, Pay Later

Driven by an increase in online and mobile app shopping during the COVID-19 pandemic, the Buy Now, Pay Later (BNPL) market has experienced exponential growth as an innovative consumer offering, particularly for the unsecured credit market. The explosion of the BNPL market, however, is attracting scrutiny from financial services regulators concerned about the lack of … Continue Reading

FCA Handbook Notice No 102

On 30 September 2022, the FCA published Handbook Notice No 102. The Handbook Notice describes the changes to the FCA Handbook and other material made by the FCA Board under its legislative and other statutory powers on 15 July 2022 and 29 July 2022. Where relevant, it also refers to the development stages of that … Continue Reading

Commission Implementing Decisions on the equivalence of the regulatory framework for CCPs in Taiwan and Colombia

On 30 September 2022, there was published in the Official Journal of the European Union (OJ):  Commission Implementing Decision (EU) 2022/1684 of 28.9.22 on the equivalence of the regulatory framework for central counterparties in Taiwan to Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards Futures Clearing Houses under the … Continue Reading

Commission Delegated Regulation (EU) 2022/1671 extending the transitional period referred to in Article 89(1) of Regulation (EU) No 648/2012

On 30 September 2022, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2022/1671 of 9.6.22 extending the transitional period referred to in Article 89(1), first subparagraph, of the European Markets Infrastructure Regulation. The Delegated Regulation enters into force on the day following that of its publication in … Continue Reading

BoE speech – Message received and understood

On 29 September 2022, the Bank of England (BoE) published a speech by Dave Ramsden (Deputy Governor, Markets and Banking) entitled Message received and understood. In his speech Mr Ramsden focuses on the BoE’s responsibilities for payments and provides a real-life example of why having real-time data matters and points to how the BoE could … Continue Reading

EBA updates data used for the identification of G-SIIs

On 29 September 2022, the European Banking Authority (EBA) disclosed the data items used to identify global systemically important institutions within the EU. The EBA has published 13 indicators and updated underlying data for the 30 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200bn. Acting as a central data hub … Continue Reading

Net Zero review

On 29 September 2022, the Department for Business, Energy & Industrial Strategy (BEIS) announced that it has commissioned an independent review of the government’s approach to delivering its net zero target. The review will assess the economic co-benefits associated with different policies and how the government can drive down the cost curve for net zero … Continue Reading

ESRB to publish a report on whether bank capital requirements can be an effective tool for reducing carbon emissions

On 29 September 2022, the European Systemic Risk Board issued a press release reporting on the meeting that its general board held on 22 September 2022. At the meeting, the general board issued a warning on vulnerabilities in the EU’s financial system. The general board concluded that risks to the financial stability in the EU … Continue Reading

European Commission launches consultation on consumer rights – adapting out-of-court dispute resolution to digital markets

On 28 September 2022, the European Commission launched a consultation on consumer rights – adapting out-of-court dispute resolution to digital markets. The consultation aims to collect views of various interested organisations and businesses on how to increase the efficiency of retail markets in the EU, how to ensure a level playing field among traders operating … Continue Reading

European Commission launches consultation on consumer protection – strengthened enforcement cooperation

On 28 September 2022, the European Commission launched a consultation on consumer protection-strengthened enforcement cooperation. The consultation aims to collect the views of various interested organisations and businesses on how to increase the efficiency of retail markets in the EU, how to ensure a level playing field among all traders operating in this market, from … Continue Reading

Basel Committee publishes review of margining practices

On 29 September 2022, the Basel Committee on Banking Supervision (Basel Committee) published a report concerning a review of margining practices. Background In non-centrally cleared markets, the Basel Committee and the International Organisation of Securities Commissions (IOSCO) developed a framework that established minimum standards for margin requirements for non-centrally cleared derivatives (although not non-centrally cleared … Continue Reading
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