United Kingdom (and EU regulation)

Financial Services Academy: Focusing on financial promotions

On 2 February 2022, we will be holding the second session in our Financial Services Academy, a series of online webinars aimed at up-and-coming in-house regulatory lawyers and compliance professionals, as well as anyone in need of a refresher. During this session, our financial services team will guide attendees through the key components of the … Continue Reading

On 25 January 2022, the Financial Conduct Authority (FCA) published Guidance Consultation 22/1 ‘FCA’s approach to compromises for regulated firms’ (GC22/1). The FCA reports that it is seeing an increase in the number of regulated firms proposing compromises (arrangements that allow a firm to settle its liabilities with creditors and/or shareholders). The FCA sets out … Continue Reading

Financial regulatory family strengthen Wider Implications Framework

On 25 January 2022, the Financial Ombudsman Service (FOS) published a new webpage regarding the Wider Implications Framework (the Framework). The Framework sets out a structure for its members (the FOS, Financial Conduct Authority, Financial Services Compensation Scheme, the Pensions Regulator and the Money and Pensions Service) to collaborate on matters of common interest to … Continue Reading

UK guidance for marketers in the cryptoasset space

On 18 January 2022, HM Treasury announced that it will be bringing adverts for cryptoassets in line with other types of financial advertising by extending the financial promotion restrictions to encompass them.  This will mean that adverts for cryptoassets will need to be either promoted by a firm authorised by the Financial Conduct Authority (FCA) … Continue Reading

EBA publishes binding standards on Pillar 3 disclosures on ESG risks

On 24 January 2022, the European Banking Authority (EBA) published a final report containing draft implementing technical standards (ITS) on prudential disclosures on environmental, social and governance (ESG) risks in accordance with Article 449a of the Capital Requirements Regulation (CRR). The final report presents the EBA final draft ITS on Pillar 3 disclosures on ESG … Continue Reading

Platform on Sustainable Finance – Response to Complementary Delegated Act

On 24 January 2022, the Platform on Sustainable Finance (Platform) published a report to the European Commission containing its feedback on the draft Taxonomy Complementary Delegated Act – Commission Delegated Regulation (EU) …/… of XXX amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards … Continue Reading

IFR Delegated Regulation setting out RTS specifying adjustments to the K-factor ‘daily trading flow’ coefficients

On 20 January 2022, there was published in the Official Journal of the EU, Commission Delegated Regulation 2022/76 of 22 September 2021 supplementing the Investment Firms Regulation (IFR) with regard to regulatory technical standards (RTS) specifying adjustments to the K-factor ‘daily trading flow’ coefficients. The RTS reflect a mandate under Article 15(5)(c) of the IFR. … Continue Reading

EBA consults on draft guidelines on remuneration and gender pay gap benchmarking exercise for banks and investment firms

On 21 January 2022, the European Banking Authority (EBA) issued a consultation to update its guidelines on the remuneration benchmarking exercise under the Capital Requirements Directive IV (CRD IV), which was originally published in 2012 and updated in 2014. The review is necessary to take into account additional requirements introduced by the CRD V regarding … Continue Reading

EBA consults on updates to its guidelines on data collection exercises regarding high earners

On 21 January 2022, the European Banking Authority (EBA) launched a consultation on updates to its guidelines on the data collection exercise on high earners, which were originally published in 2012 and revised in 2014. The review of the data collection exercises reflect the amended remuneration framework laid down in the Capital Requirements Directive (CRD … Continue Reading

Fraud-related investigations and their impact on financial institutions

Since the pandemic began in March 2020, there has been a rise in fraudulent behaviour as fraudsters look to take advantage of members of the public and financial institutions (FIs). Phishing, text scams and small-scale fraudulent activity targeting the British public were up 285% in the first half of 2021; HM Revenue and Customs estimates … Continue Reading

FCA review finds evidence of growing competition in retail banking

On 20 January 2022, the FCA published its 2022 Final Report on competition in retail banking markets. This builds on the FCA’s 2018 Final Report and 2018 Progress Report. The key findings in the 2022 Final Report include: Large banks are in a strong position but face increasing competition, in particular for Personal Current Accounts … Continue Reading

ESMA CSA on the valuation of UCITS and open-ended AIFs across the EU

On 20 January 2022, the European Securities and Markets Authority (ESMA) announced that it was launching a Common Supervisory Action (CSA) with Member State competent authorities on the valuation of UCITS and open-ended Alternative Investment Funds (AIFs) across the EU. Throughout 2022 the CSA will focus on authorised managers of UCITS and open-ended AIFs investing … Continue Reading

FCA updates webpage on FG15/8 ‘FCA’s powers and procedures under the Competition Act 1998

On 19 January 2022, the FCA updated its webpage concerning Finalised Guidance 15/8 ‘FCA’s powers and procedures under the Competition Act 1998’ (FG15/8). The FCA states that it has made certain updates to FG15/8 including: Inserting a section clarifying the FCA’s competition powers following EU withdrawal. Making clear that since April 2019 the FCA’s competition … Continue Reading

Interim statement of the independent review panel on ring-fencing and proprietary trading

The Financial Services (Banking Reform) Act 2013 required HM Treasury to appoint an independent panel to review the operation of the legislation relating to ring-fencing and banks’ proprietary trading activities. HM Treasury appointed Keith Skeoch as chair of the independent Review Panel (Panel) with responsibility to oversee and deliver two statutory reviews on the operation … Continue Reading

Borrowers in financial difficulty project – supporting those facing payment difficulties due to coronavirus

On 19 January 2022, the FCA issued a webpage regarding its borrowers in financial difficulty project which is intended to ensure firms continue to support borrowers in financial difficulty. With the pandemic ongoing the FCA wants to reiterate its expectations for the treatment of customers, as set out in the Tailored Support Guidance (TSG) for … Continue Reading

Financial Services Academy: Focusing on financial promotions

On 2 February 2022, we will be holding the second session in our Financial Services Academy, a series of online webinars aimed at up-and-coming in-house regulatory lawyers and compliance professionals, as well as anyone in need of a refresher. During this session, our financial services team will guide attendees through the key components of the … Continue Reading

IOSCO good practices aim to foster cooperation through global supervisory colleges

On 18 January 2022, the International Organization of Securities Commissions (IOSCO) issued a final report on lessons learned from the use of global supervisory colleges. The report is based on previous IOSCO work on market fragmentation and provides a framework for securities regulators seeking to create new global supervisory colleges for sectors of financial markets … Continue Reading

Letter to Danish Financial Supervisory Authority regarding Interpretation of the Payment Accounts Directive and Negative interest rates

On 17 January 2022, the European Commission published its response to letters it had received from the Danish Financial Supervisory Authority (FSA) regarding the interpretation of the Payment Accounts Directive (PAD) and charging negative interest rates on payment accounts. In its letter the Commission states that it leans towards a conclusion whereby negative interest rates … Continue Reading

New FCA webpage – TPR firms that do not meet our expectations

On 18 January 2022, the FCA issued a new webpage regarding the temporary permissions regime (TPR) and the action that the regulator may take in the following scenarios: FSMA firms that miss their landing slot. Firms that fail to respond to mandatory information requests. Firms that do not intend to apply for full authorisation. Firms … Continue Reading

FCA CP22/2: Strengthening our financial promotion rules for high risk investments, including cryptoassets

On 19 January 2022, the FCA published Consultation Paper 22/2: Strengthening our financial promotion rules for high risk investments, including cryptoassets (CP22/2). The proposals in CP22/2 build on the questions the FCA asked in Discussion Paper 21/1 (DP21/1) on how it could strengthen the financial promotions rules. The proposals in CP22/2 are a key part … Continue Reading

Government to strengthen rules on misleading cryptocurrency adverts

Introduction On 18 January 2022, HM Treasury set out its response to its July 2020 consultation seeking to bring certain cryptoassets into the scope of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO). The consultation set out a proposed definition for qualifying cryptoassets, to be brought into the scope of the … Continue Reading

Summary report – ‘Targeted consultation on taking stock of the framework for supervising European capital markets, banks, insurers and pension funds: supervisory convergence and the single rulebook’

On 17 January 2022, the European Commission issued a summary report ‘Targeted consultation on taking stock of the framework for supervising European capital markets, banks, insurers and pension funds: supervisory convergence and the single rulebook’. The targeted consultation was issued last year and feeds into the preparation of a report required by the Capital Markets … Continue Reading

ECB opinion on a proposal to amend the CRR with respect to resolution

On 17 January 2022, the European Central Bank (ECB) issued an opinion on a proposal to amend the Capital Requirements Regulation (CRR) with respect to resolution. The ECB supports the proposed regulation, which ensures better alignment between the provisions of the CRR and the Bank Recovery and Resolution Directive following the entry into force of … Continue Reading

IOSCO consults on measures to address risks arising from digitalisation of retail marketing and distribution

On 17 January 2022, the International Organization of Securities Commissions (IOSCO) published a consultation report intended to assist its members in adapting their regulatory and enforcement approaches to meet the challenges posed by recent technological developments and the rapid growth in digitalisation and use of social media which is changing the way financial products are … Continue Reading
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