United Kingdom (and EU regulation)

PRA Policy Statement on changes to notification and application forms

On 17 January 2019, the PRA published Policy Statement 2/19: Regulatory transactions – changes to notification and application forms (PS2/19). PS2/19 provides the final rules and forms to to its earlier consultation (CP21/18) (our blog is here). The PRA received no responses to its consultation. The PRA is consequently making the changes to the rules … Continue Reading

IOSCO report on good practices in supporting audit quality

On 17 January 2019, the International Organization of Securities Commissions (IOSCO) published a report setting out its views on good practices for audit committees of listed companies in supporting external audit quality. The report notes that whilst the auditor has primary responsibility for audit quality, the audit committee should promote and support quality and thereby … Continue Reading

Basel Committee update on principles for sound liquidity risk management and supervision

On 17 January 2019, the Basel Committee on Banking Supervision (Basel Committee) issued a press release announcing that it has completed a review of its 2008 principles for sound liquidity risk management and supervision. The review confirmed that the sound principles remain fit for purpose, and the Basel Committee advises banks and supervisors to remain … Continue Reading

Draft Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019

On 17 January 2019, there was laid before Parliament a draft version of The Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019, together with an explanatory memorandum.  The draft statutory instrument forms part of the UK Government’s contingency planning for a no deal Brexit and is made under the … Continue Reading

EBA final guidelines on high risk exposures under CRR

On 17 January 2019, the European Banking Authority (EBA) published its final report on the guidelines on specification of types of exposures to be associated with high risk under Article 128(3) of the Capital Requirements Regulation (CRR). Article 128(3) CRR provides a mandate to the EBA to draft guidelines that specify which types of exposures, … Continue Reading

Draft Uncertificated Securities (Amendment and EU Exit) Regulations 2019

On 17 January 2019, HM Treasury published a draft version of the Uncertificated Securities (Amendment and EU Exit) Regulations 2019, together with an explanatory memorandum. The draft statutory instrument serves two purposes: it amends the Uncertified Securities Regulations (the USR) in light of the EU Central Securities Depositories Regulation (CSDR) as implemented in the UK … Continue Reading

New FCA online portal for mutual societies

On 16 January 2019, the FCA launched a new online portal for mutual societies. The portal provides a gateway to the FCA’s mutuals team, to allow mutual societies to complete tasks online previously managed via post and email. The portal is available to all mutual societies and allows them to: submit annual returns and accounts; … Continue Reading

The Credit Institutions and Insurance Undertakings Reorganisation and Winding Up (Amendment) (EU Exit) Regulations 2019

On 14 January 2019, The Credit Institutions and Insurance Undertakings Reorganisation and Winding Up (Amendment) (EU Exit) Regulations 2019 were made. The draft Regulations were published by HM Treasury on 30 November 2018 (our blog is here). The majority of the Regulations come into force on exit day, and amend: The Credit Institutions (Reorganisation and … Continue Reading

PRA Dear CFO letter – disclosures about IFRS 9 expected credit losses

On 16 January 2019, the PRA published a Dear CFO letter concerning disclosures about International Financial Reporting Standard (IFRS) 9 expected credit losses. The Dear CFO letter refers to the November 2018 report prepared by the Taskforce on Disclosures about Expected Credit Losses which contained certain recommendations that the PRA expects firms to implement in … Continue Reading

ECJ considers meaning of payment services linked to issuing e-money under EMD II

On 16 January 2019, the Court of Justice of the EU (ECJ) handed down a preliminary ruling regarding the interpretation of Articles 5(2) and 6(1)(a) of the second Electronic Money Directive (EMD II) in Paysera LT (Case C-389/17). By way of background, Article 5(2) of EMD II sets out the possible methods of calculating the … Continue Reading

SRB publishes second part of 2018 MREL policy

On 16 January 2019, the Single Resolution Board (SRB) published the second part of its 2018 policy on the minimum requirement for own funds and eligible liabilities (MREL) pertaining to the second wave of resolution plans – i.e. plans for the most complex banking groups. The second part introduces a series of new elements strengthening … Continue Reading

FCA response to enquiry on access to financial services

On 15 January 2019, the House of Commons’ Treasury Select Committee (the Committee) published written evidence submitted by the FCA as part of the Committee’s inquiry into consumer access to financial services (the Submission). The Submission outlines the FCA’s work and approach to issues of financial access for consumers, focusing on vulnerable people. Key points … Continue Reading

Financial Services Contracts (Transitional and Saving Provision) (EU Exit) Regulations 2019 laid before Parliament

On 15 January 2019, there was published on legislation.gov.uk a draft of The Financial Services Contracts (Transitional and Saving Provision) (EU Exit) Regulations 2019 together with an explanatory memorandum. The draft Regulations were first published by HM Treasury on 17 December 2018 (our blog is here) and have now been laid before Parliament. You can … Continue Reading

ESAs announce multilateral agreement on exchange of information between ECB and competent authorities

On 15 January 2019, the European Supervisory Authorities (ESAs) published a multilateral agreement on the practical modalities for the exchange of information pursuant to article 57a(2) of the Fourth Anti-Money Laundering Directive (the Agreement). The purpose of the Agreement is to define practical modalities for the exchange of information between anti-money laundering / counter terrorist … Continue Reading

Basel Committee work programme for 2019-20

On 14 January 2019, the Basel Committee on Banking Supervision (Basel Committee) published its 2019-2020 work programme. The work programme is structured around four key areas: Policy development: The Basel Committee notes that there now remains only a targeted set of policy initiatives that require finalisation. This includes work related to the leverage ratio treatment … Continue Reading

Basel Committee finalises revised minimum capital requirements for market risk

On 14 January 2019, the Basel Committee on Banking Supervision (Basel Committee) published its final standards on the minimum capital requirements for market risk (the Final Standards). The Final Standards replace the current minimum capital requirements for market risk set out in the Basel II and Basel 2.5 reforms. The revisions made in the Final … Continue Reading

Commission call for advice on benchmarking of national loan enforcement frameworks

On 15 January 2019, the European Banking Authority (EBA) published a letter from the European Commission’s Director General of FISMA, regarding a Call for Advice to the EBA to gather data for a benchmarking of national loan enforcement frameworks from a bank creditor perspective. The Call for Advice to the EBA has also been published. … Continue Reading

Brexit: Financial Services Contracts Regime

What is the FSCR? For some time now the UK Government has been implementing plans for a no deal Brexit scenario, where the UK leaves the EU without a ratified Withdrawal Agreement. These plans have essentially involved amending the UK statute book to onshore EU legislation so that it can continue to function immediately after … Continue Reading

Draft Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2019

On 14 January 2019, HM Treasury published a draft of the  Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2019, together with an updated explanatory information webpage. The draft statutory instrument is part of the UK Government’s contingency planning for a no deal Brexit to ensure that the UK statute book continues to function after exit … Continue Reading

JMLSG revisions to AML and CTF guidance

On 10 January 2019, the Joint Money Laundering Steering Group (JMLSG) published a webpage noting that certain amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information of the Payer) Regulations 2017 came into effect on 10 January 2019. These amendments have resulted in minor changes to the JMLSG guidance in Part I paragraphs … Continue Reading

ECON reports on proposed Omnibus Regulation and proposed Regulation amending ESRB Regulation

On 14 January 2019, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published the following: report on the amended text of the proposed Omnibus Directive; and report on the amended text of the proposed Regulation amending the Regulation that established the European Systemic Risk Board (ESRB). ECON voted to adopt these reports on 10 January … Continue Reading

Commission consults on evaluating the CCD

On 14 January 2019, the European Commission launched a consultation evaluating whether the Consumer Credit Directive (CCD) is still fit for purpose given all the market developments since its launch in in April 2008. Stakeholders can contribute to the consultation by filling in an online questionnaire. The deadline for responses is 8 April 2019.… Continue Reading

ECON report on legislative proposal amending Regulation on low carbon benchmarks and positive carbon impact benchmarks

On 11 January 2019, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a report on the European Commission’s proposed Regulation amending the Benchmarks Regulation on low carbon benchmarks and positive carbon impact benchmarks. ECON voted to adopt the report on 13 December 2018. The European Parliament will consider the report in plenary.… Continue Reading
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