United Kingdom (and EU regulation)

ICO joins other data protection authorities in issuing statement on Facebook’s cryptocurrency Libra project

On 18 June 2019, Facebook announced plans to launch a new blockchain enabled cryptocurrency called Libra. In early August 2019, the UK’s Information Commissioner’s Office (the ICO) joined other data protection authorities from around the world (from Europe, the Americas, Africa and Australasia) in publishing a statement to Facebook and the 28 other companies behind … Continue Reading

FMLC letter to HM Treasury on the review of the Regulations implementing EMIR

On 15 August 2019, the Financial Markets Law Committee (FMLC) published a letter that it had sent to HM Treasury on the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (the Regulations). The Regulations implemented the European Markets Infrastructure Regulation (EMIR) in the UK. HM Treasury’s … Continue Reading

Report by the ECB working group on euro risk-free rates

On 19 August 2019, the European Central Bank’s (ECB) working group on euro risk-free rates published a report that focuses on the impact that the transition from the current euro overnight index average (EONIA) to the ECB’s euro short-term rate (€STR) will have on cash and derivatives products. In the report, the working group analyses … Continue Reading

ECB decision on oversight of systemically important payment systems

On 16 August 2019, there was published in the Official Journal of the EU (OJ), the European Central Bank (ECB) decision of 26 July 2019 on the procedure and conditions for exercise by a Member State competent authority of certain powers in relation to the oversight of systemically important payment systems (SIPs). In April 2012, … Continue Reading

Cyber resilience: Addressing the threats

The recording from our Regulatory Compliance Consulting webinar on cyber resilience is now available here. In an increasingly complex landscape of cyber risks and issues, this webinar considers key areas of importance including: The evolving threat landscape – changes we are seeing in terms of cyber-attacks and hot topics, including sectors and firms currently in … Continue Reading

Seminar: Retiring LIBOR – Fact or fiction?

On 27 September 2019 we will be holding a breakfast briefing that will provide insight to the progression of benchmark rate reform, and provide attendees with the opportunity to ask questions and engage in discussion regarding the key issues facing anyone involved in the financial markets. Further information can be found here.… Continue Reading

FCA protocols for independent reviews of regulatory action concerning IRHP and Connaught

On 14 August 2019, the FCA published two protocols in relation to lessons learned reviews commissioned by the non-executive directors of the FCA following the appointments of John Swift QC and Raj Parker as independent reviewers for the Interest Rate Hedging Products (IRHPs) review and the Connaught Income Fund Series 1 review respectively in June … Continue Reading

ECB advises banks to ramp up no-deal preparations

On 14 August 2019, the European Central Bank (ECB) published an article on its website calling on banks to step up their preparations for a no-deal Brexit at the end of October 2019. The ECB asserts that banks have transferred significantly fewer activities, critical functions and staff to euro area entities than originally foreseen as … Continue Reading

London 40 minute briefing series – new dates for September to November

The Norton Rose Fulbright LLP financial services team invite you to their latest breakfast briefings. Our latest series of briefings cover some of the key regulatory developments facing financial services firms: 4 September 2019: The clock is ticking on SMCR compliance. In this practical workshop conducted under Chatham House rules the Norton Rose Fulbright SMCR … Continue Reading

FCA agrees 18-month period for phased implementation of Strong Customer Authentication

On 13 August 2019, the FCA announced an 18 month plan to implement the Single Customer Authentication (SCA) rules under the revised Payment Services Directive (PSD2) for the e-commerce industry of card issuers, payments firms and online retailers. The announcement reflects the recent opinion of the European Banking Authority (our blog is here) which acknowledged … Continue Reading

European Commission agrees MOU with SRB

On 13 August 2019, the Single Resolution Board (SRB) published a memorandum of understanding (MOU) between itself and the European Commission in respect of co-operation and information exchange pursuant to the Single Resolution Mechanism Regulation (SRMR). The MOU aims to codify best practices and ensure that effective working arrangements are in place between the Commission … Continue Reading

ISDA statement on pre-cessation issues

On 9 August 2019, the International Swaps and Derivatives Association (ISDA) published a statement summarising the preliminary results of its consultation on how derivatives contracts should address a regulatory announcement that LIBOR and certain other interbank offered rates (IBORs) are no longer representative of an underlying market. The pre-cessation trigger for LIBOR would apply in … Continue Reading

Upper Tribunal dismisses application by financial advisers firm to suspend an FCA Supervisory Notice until final hearing

On 25 July 2019, the Upper Tribunal (Tax and Chancery Chamber) published a decision in respect of Sussex Independent Financial Advisers Limited (Sussex). Sussex sought to challenge a Supervisory Notice issued by the FCA which removed all of the firm’s permitted regulatory activities with effect from 8 July 2019.  It also imposed requirements restricting Sussex’s … Continue Reading

EBA opinion on deposit guarantee schemes

Article 19(6) of the Deposit Guarantee Schemes Directive (DGSD) requires the European Commission to submit to the European Parliament and to the Council a report on the progress towards the implementation of the DGSD. To support the Commission in meeting this obligation, the European Banking Authority (EBA) committed to drafting three opinions on the DGSD. … Continue Reading

PRA publishes Policy Statement on regulatory reporting for banks and building societies

On 7 August 2019, the PRA published Policy Statement 16/19: Regulatory reporting: EBA Taxonomy 2.9 (PS16/9). PS16/9 is relevant to UK banks and building societies as well as PRA-designated UK investment firms. It is not relevant to UK branches of firms in other EEA states and non-EEA countries, or to insurance firms. In PS16/9 the … Continue Reading

FCA letter on UK specific UCITS liquidity standards

On 7 August 2019, the FCA published a letter (dated 6 August 2019) from Andrew Bailey, FCA Chief Executive, in response to Lord Myners’ written question asking if the Government has ever formally reviewed the case for the UK establishing its own requirements for liquidity standards for UCITS at higher levels than specified in EU … Continue Reading

Updated MOU between CMA and FCA

On 7 August 2019, the Competition and Markets Authority (CMA) published two updated memorandums of understanding (MOU) between itself and the FCA on concurrent competition powers, and the use of concurrent powers under consumer protection legislation. The MOUs have been updated to reflect the changes introduced by the Financial Guidance and Claims Act 2018, which … Continue Reading

Statement on conventions for referencing SONIA in new contracts

The overall objective of the Bank of England Working Group on Sterling Risk-Free Reference Rates (Working Group) is to enable a broad-based transition to SONIA by the end of 2021 across the sterling bond, loan and derivative markets. This will reduce the financial stability risks arising from widespread reliance on sterling LIBOR. In March 2019 … Continue Reading

New FOS webpages – complaints relating to home credit and financial difficulties

On 5 August 2019, the Financial Ombudsman Service (FOS) published new webpages on complaints in relation to home credit, a type of unsecured cash loan arranged at the borrower’s home, and borrowers who are experiencing financial difficulties. Each webpage sets out the types of complaints that the FOS comes across, how it handles those specific … Continue Reading

ESRB Recommendation amending 2015 Recommendation on EU macroprudential policy measures and 2014 Recommendation on CCyB

On 6 August 2019, there was published in the Official Journal of the European Union the Recommendation of the European Systemic Risk Board (ESRB) of 28 June 2019 postponing certain deadlines for the submission of reports prescribed in two ESRB Recommendations: Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential … Continue Reading

EBA feedback on review of single rulebook Q&A tool

On 6 August 2019, the European Banking Authority (EBA) published feedback following an earlier review of its single rulebook Q&As. The scope of the review was limited to Q&As relating to the Capital Requirements Regulation and the Capital Requirements Directive IV, with a focus on policy issues, on which around 625 questions have been answered, … Continue Reading

FCA publishes SM&CR banking review

On 5 August 2019, the FCA published a new webpage containing the findings of its review into the embedding of the Senior Managers and Certification Regime (SM&CR) in the banking sector. Generally, the FCA found that the banking industry had made a concerted effort to implement the SM&CR finding that most firms have taken actions … Continue Reading

EBA issues advice on Basel III implementation

On 5 August 2019, the European Banking Authority (EBA) published its report to the European Commission, following an earlier call for advice in May 2018, on the assessment of the implementation of Basel III in the EU. The advice presents the findings of the EBA’s quantitative impact assessment analysis based on data from 189 banks … Continue Reading