United Kingdom (and EU regulation)

Basel Committee releases consultative documents on Principles for operational risk and operational resilience

On 6 August 2020, the Basel Committee on Banking Supervision (Basel Committee) published a consultative document seeking comments on proposed Principles for operational resilience. Given the natural relationship between operational resilience and operational risk, the Basel Committee is also proposing to update its Principles for the sound management of operational risk (PSMOR). The Basel Committee … Continue Reading

Global Asset Management Quarterly – 15th edition now available online

The latest issue of Global Asset Management Quarterly is now available here. This issue contains the following articles: Europe •           European update •           EU/UK regulatory roundup United Kingdom •           Climate Financial Risk Forum publishes guide on climate-related financial risk management •           Heightened risk of market abuse in a remote working context? •           Observations on the … Continue Reading

Anti-money laundering and counter-terrorist financing: supervision report, 2018/2019

On 6 August 2020, HM Treasury published its eighth annual report on anti-money laundering / countering the financing of terrorism (AML/CTF) supervision. The report includes self-reported data about activity undertaken in 2018-19 across the UK’s AML/CTF regime, which supervisors provided to HM Treasury in their annual returns. The data collected in the returns covered the … Continue Reading

FCA highlights concerns when credit firms allow repeat borrowing

On 6 August 2020, the FCA published the findings of its review into relending by firms that offer high-cost credit. The review, which was completed prior to the coronavirus pandemic, highlights concerns about poor practices by some firms and notes that nearly half of consumers regretted borrowing more money. As firms in this sector begin … Continue Reading

FCA consults on debt advice levy rates for 2020/21

On 5 August 2020, the FCA published Consultation Paper 20/16: Debt advice levy rates for 2020/21 – Additional funding (CP20/16). The Department for Work and Pensions (DWP) has notified the FCA that it must collect an additional £14.2m for the Money and Pensions Service (MaPS) in 2020/21 to provide debt advice in England. This is … Continue Reading

FCA confirms recognition for the LSB’s update to Standards for CBILS and BBLS lending

On 5 August 2020, the Lending Standards Board (LSB) issued a statement advising that the FCA had confirmed that formal recognition of the Standards of Lending Practice for business customers had been maintained and that recognition now covered the updates to the Standards issued by the LSB to take account of the Government’s new coronavirus lending … Continue Reading

Financial Services Compensation Scheme – Temporary High Balance Coverage Extension

On 5 August 2020, the PRA published Policy Statement 19/20: Financial Services Compensation Scheme – Temporary High Balances Coverage Extension (PS19/20). In PS19/20 the PRA provides feedback to responses to Consultation Paper 6/20: Financial Services Compensation Scheme – Temporary High Balances Coverage Extension (CP6/20). It also includes final policy in the form of amendments to … Continue Reading

ISDA: letter to RFR WGs on adherence to the ISDA IBOR Fallback Protocol

On 4 August 2020, the ISDA published a letter dated 22 July 2020 that it had sent to the risk-free rate working groups concerning adherence to the ISDA IBOR Fallback Protocol. Key points in the letter include that the ISDA hopes to soon be in a position to launch the IBOR Fallback Protocol and the … Continue Reading

FCA publishes statement on the provision of data under the Civil Liability Act 2018

The Civil Liability Act 2018 (and subsequent Civil Liability (Information Requirements) and Risk Transformation (Amendment) Regulations 2020) requires that certain insurers (broadly, those insurers writing more than 100,000 private motor policies a year) must submit data to the Financial Conduct Authority (FCA) about the effect that the Civil Liability Act 2018 will have on motor … Continue Reading

FCA consults on new rules to improve open-ended property fund structures

On 3 August 2020, the FCA published Consultation Paper 20/15: Liquidity mismatch in authorised open-ended property funds (CP20/15). In 2017 the FCA launched a discussion paper (DP17/1) on illiquid assets in open-ended funds. As a result of the feedback it received, the FCA consulted on (CP18/27), and set out new rules (PS19/24) for open-ended funds … Continue Reading

FCA announces proposals to update Dual-regulated firms Remuneration Code

On 3 August 2020, the FCA published Consultation Paper 20/14: Updating the Dual regulated firms Remuneration Code to reflect CRD V (CP20/14). The following types of regulated firm need to read CP20/14: Credit institutions (banks and building societies). Designated investment firms (those designated for prudential regulation by the PRA). Firms from outside the European Economic … Continue Reading

EBA publishes final draft technical standards on disclosure and reporting on MREL and TLAC

On 3 August 2020, the European Banking Authority (EBA) published final draft Implementing Technical Standards (ITS) on disclosure and reporting on the global systemically important institution (G-SII) requirement for own funds and eligible liabilities (TLAC) and the minimum requirements for own funds and eligible liabilities (MREL). This is the first time that the EBA has … Continue Reading

FCA speech: LIBOR transition – the critical tasks ahead of us in the second half of 2020

On 3 August 2020, the FCA published a speech by Edwin Schooling Latter (Director Markets and Wholesale Policy, FCA) on ‘LIBOR transition – the critical tasks ahead of us in the second half of 2020’. Key points in the speech include: The 4 to 6 months ahead are arguably the most critical period in the … Continue Reading

FCA publishes statement on non-damage business interruption settlements and deductions in relation to Government support

In response to concerns expressed about how insurers are calculation non-damage business interruption (BI) claims payments where liability has been agreed, the Financial Conduct Authority (FCA) has published a statement on deductions being made for Government support received.  Over the past few months many BI claimants have received some form of Government support in response … Continue Reading

SFO receives approval for DPA with G4S Care & Justice (UK) Limited

The UK’s eighth deferred prosecution agreement (DPA) has been approved in relation to the UK Serious Fraud Office’s (SFO) investigation into G4S Care & Justice (UK) Ltd (G4S). The SFO’s investigation into G4S began in 2013 in relation to G4S’s provision of electronic monitoring services for the Ministry of Justice (MoJ)  between 2005 and 2013, … Continue Reading

OFSI publishes financial sanctions compliance guidance for the maritime shipping sector

In July 2020, the UK Office of Financial Sanctions Implementation (OFSI) published guidance for entities and individuals operating within the maritime shipping sector. The size and scale of the UK shipping sector is large and thus may be particularly susceptible to criminals seeking to deploy tactics to confuse or conceal the identities of vessels, cargo, … Continue Reading

Are you thinking about SRD II?

From 3 September 2020, the provisions under SRD II which focus on encouraging long-term shareholder engagement and enhancing transparency between companies and investors apply, along with Implementing Regulation 2018 / 1212. Intermediaries, and those with responsibility for implementing regulatory change within institutions, will need to be thinking about how the requirements as regards shareholder identification, … Continue Reading

HM Treasury Policy Statement: Amendments to the Packaged Retail Investment and Insurance based Products Regulation

On 30 July 2020, HM Treasury published a Policy Statement providing an update on its proposed approach to bringing forward certain amendments to the onshored Regulation on packaged retail investment and insurance based products (the PRIIPs Regulation) in order to avoid consumer harm and provide appropriate certainty to industry once the UK ceases to be … Continue Reading

FCA Call for input – Ongoing support for consumers affected by coronavirus: mortgages and consumer credit

The COVID-19 pandemic is continuing to present challenges across the board with regional lockdowns, closures of “air-bridges” and talks of a second wave dominating media outlets at the present time. If the pandemic has brought certainty in one regard, it is that the future is more uncertain than ever. In order to help provide further … Continue Reading

PRA consults on implementation of CRD V

On 31 July 2020, the PRA published Consultation Paper 12/20: Capital Requirements Directive V (CP12/20). In CP12/20 the PRA sets out proposed changes to its rules, supervisory statements (SS) and statements of policy (SoP) in order to implement elements of the Capital Requirements Directive V (CRD V). CP12/20 covers: The PRA’s proposed implementation of changes … Continue Reading

EBA and ESMA launch consultation to revise joint guidelines for assessing the suitability of members of the management body and key function holders

On 31 July 2020, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) issued a consultation revising their joint guidelines on the assessment of the suitability of members of the management body and key function holders. The review reflects the amendments introduced by the fifth Capital Requirements Directive (CRD V) and … Continue Reading

EBA launches consultation to revise its guidelines on internal governance

On 31 July 2020, the European Banking Authority (EBA) issued a consultation seeking to revise its guidelines on internal governance. The guidelines were developed on the basis of Article 74 of the Capital Requirements Directive IV (CRD IV), which mandates the EBA to further harmonise credit institutions’ governance arrangements, processes and mechanisms across the EU. … Continue Reading

FCA sets out views on Employer Salary Advance Schemes

On 30 July 2020, the FCA issued a statement setting out its view of the risks and benefits of Employer Salary Advance Schemes (ESAS) and what employers and employees should consider when using them. The statement covers: What ESAS offer. What employees need to consider. What employers need to consider. The FCA reminds employers that … Continue Reading

EBA updates on 2021 EU-wide stress test timeline, sample and potential future changes to its framework

On 30 July 2020, the European Banking Authority announced that it had agreed on the tentative timeline and sample of the 2021 EU-wide stress test. The stress test will be carried out at the highest level of consolidation on a sample of 51 banks, of which 39 will be from the Euro Area, covering broadly … Continue Reading
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