United Kingdom (and EU regulation)

FCA publishes its Anti-money Laundering Annual Report emphasising the use of ‘dual track’ enforcement

On 9 July 2019, the FCA published its Anti-money Laundering (AML) Annual Report for 2018/2019. The report echoes Mark Steward’s comments in a speech earlier this year in relation to the FCA’s increasing focus on criminal investigations for money laundering. The newly published Report states that ‘some’ of the FCA’s current AML investigations are now … Continue Reading

Draft Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 3) Regulations 2019 laid before Parliament

On 16 July 2019, there was published on legislation.gov.uk a draft version of the Draft Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 3) Regulations 2019 together with a draft explanatory memorandum. The content of the Regulations is addressed in our earlier blog here. You can track the financial services Brexit EU Exit statutory instruments (as well as gain access … Continue Reading

LSB publishes revised Standards of Lending Practice for business customers

On 16 July 2019, the Lending Standards Board (LSB) published a revised version of its standards of lending practice (SLPs) for business customers (see previous blog post). The LSB has extended the SLPs to apply to businesses with a consolidated turnover of up to £25m, from a previous turnover threshold of £6.5m, bringing consistency in … Continue Reading

FATF Guidance for a risk-based approach to virtual assets and virtual asset service providers

On 21 June 2019 the Financial Action Task Force (FATF) adopted its 2019 Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (the Guidance). The Guidance updates the 2015 version of the guidance and accompanies the FATF’s June 2019 Interpretive Note to Recommendation 15 on New Technologies (INR 15) that clarifies … Continue Reading

ESMA report on sanctions and measures imposed under MiFID II in 2018

Article 71(4) of MiFID II, requires the European Securities and Markets Authority (ESMA) to publish an annual report regarding information on sanctions and measures imposed under MiFID II in the previous calendar year, as notified by Member State national competent authorities (NCAs). On 17 July 2019, ESMA delivered its latest report collating information submitted by … Continue Reading

ESMA call for evidence on impact of the inducement and costs and charges disclosure requirements under MiFID II

On 17 July 2019, the European Securities and Markets Authority (ESMA) issued a call for evidence on certain investor protection topics included in the European Commission mandate to ESMA on the reports to be submitted by the Commission under Article 90 of MiFID II. Article 90 of MiFID II provides that the Commission shall, after consulting ESMA, … Continue Reading

EMMI publishes EURIBOR benchmark statement

On 17 July 2019, the European Money Markets Institute (EMMI) published the benchmark statement for the administration of the Euro Interbank Offered Rate (EURIBOR). The statement provides information on EURIBOR across the following areas: market or economic reality; input data and methodology; exercise of judgement or discretion by the EMMI or contributors; cessation and change … Continue Reading

ESMA consults on MiFID II guidelines regarding compliance functions

On 15 July 2019, the European Securities and Markets Authority (ESMA) published a consultation paper containing draft guidelines on aspects of the compliance functions requirements under MiFID II. The purpose of the draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the expanded compliance function requirements introduced under … Continue Reading

EBA update on ITS package for 2020 benchmarking exercise

On 16 July 2019, the European Banking Authority (EBA) published an update to its implementing technical standards (ITS) on benchmarking of internal approaches to reflect comments received following an earlier consultation in December 2018 (see previous blog post). The ITS include all benchmarking portfolios that will be used for the 2020 benchmarking exercise. A zip … Continue Reading

EBA report on final draft ITS on supervisory reporting in regard to FINREP

On 16 July 2019, the European Banking Authority (EBA) published a report setting out its final draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 680/2014 on supervisory reporting of institutions with regard to financial reporting (FINREP). The amendments in the draft ITS address the risks of high non-performing exposures (NPE) and forborne exposures … Continue Reading

ESMA consults on draft guidelines on performance fees in UCITS

On 16 July 2019, the European Securities and Markets Authority (ESMA) issued a public consultation on draft guidelines on performance fees under the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. The draft guidelines aim to improve harmonisation in the way in which performance fees can be charged to UCITS. This follows a mapping … Continue Reading

LIBOR: preparing for the end

In a speech at the Securities Industry and Financial Markets Association’s (SIFMA) LIBOR Transition Briefing on 15 July 2019, Andrew Bailey, the Chief Executive of the FCA emphasized the need for the loan market to transition away from LIBOR ahead of 2021. He stated that market participants should not wait for the development of a … Continue Reading

New platform to replace Gabriel and improve the way the FCA collects data from firms

On 16 July 2019, the FCA announced that it has started to improve the way it collects data from firms and plans to move to a new platform for its data collection systems, which includes replacing Gabriel. Firms that currently use Gabriel are asked to complete a feedback survey to help shape the FCA’s thinking.… Continue Reading

Court approves first-of-its kind “Group” DPA: five key points

On 4 July 2019, the UK’s fifth Deferred Prosecution Agreement (DPA) was approved. The DPA is between the Serious Fraud Office (SFO) and Serco Geografix Limited (SGL), a subsidiary of Serco Group PLC, and relates to fraud and false accounting offences. The offences relate to a scheme to dishonestly mislead the Ministry of Justice (MoJ) … Continue Reading

Large exposures: Reciprocation of French measure

On 15 July 2019, the PRA published Consultation Paper 15/19: Large exposures: Reciprocation of French measure (CP15/19). In CP15/19 the PRA sets out its proposal to apply a tighter limit for large exposures to certain French non-financial corporations, to reciprocate the same measure imposed by France. The proposed measure applies on a consolidated basis to … Continue Reading

ESMA updates its EMIR Q&A

On 15 July 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on practical questions regarding the European Markets Infrastructure Regulation (EMIR). ESMA has updated the Q&As so that they are aligned with the EMIR Refit Regulation. The following have been amended or deleted: General questions – Question 1 – Funds, counterparties – … Continue Reading

High Court’s judgment provides insight on how banks deal with suspicions of money laundering activities

On 8 July 2019, in the case of N v the Royal Bank of Scotland plc, the High Court (the Court) handed down a judgment which provides guidance on how banks respond to alleged money laundering activities. N, an authorised payment institution, issued proceedings for an interim mandatory injunction against the bank after it decided … Continue Reading

Global Asset Management Quarterly

The latest issue of Global Asset Management Quarterly is now available here. In this issue we cover: Sustainable finance is a trend set to stay Brexit: latest developments Luxemburg update Ireland update The proposed Australian corporate collective investment vehicle SFC raises disclosure requirements for Green or ESG funds Mutual recognition of funds: Netherland – Hong … Continue Reading

EBA report on the monitoring of the LCR implementation in the EU

On 12 July 2019, the European Banking Authority (EBA) published its first report on the monitoring of liquidity coverage ratio (LCR) implementation in the EU. The EBA’s monitoring of the LCR contributes to a consistent application of EU law and promotes common supervisory approaches and practices in this area. In the report, the EBA has … Continue Reading

ESMA report on the licensing of FinTech business models

On 12 July 2019, the European Securities and Markets Authority (ESMA) published a report on the status of licencing regimes of FinTech firms across the EU. The report is based on two surveys conducted by ESMA since January 2018, which gathered evidence from Member State national competent authorities (NCAs) on the licencing regimes of FinTech … Continue Reading

ESMA consults on MiFID II reports on prices for trade data and consolidated tape for equities

On 12 July 2019, the European Securities and Markets Authority (ESMA) issued a public consultation on the development in prices for pre- and post-trade data and on the post-trade consolidated tape (CT) for equity instruments. The consultation covers the review provisions on the development in prices for pre- and post-trade transparency data from regulated markets, … Continue Reading
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