United Kingdom (and EU regulation)

Australian Federal Budget 2021-22: Changes for foreign financial services providers relief and licensing

On 11 May 2021, Treasurer Josh Frydenberg delivered the Australian Federal Budget 2021-2022, which contained an announcement as to future changes to the licensing and relief regime for foreign financial service providers. Our update can be found here.… Continue Reading

ECB launches consultation on its revised Guide to fit and proper assessments

On 15 June 2021, the European Central Bank (ECB) issued a consultation on the draft of a revised and more comprehensive version of its guide to fit and proper assessments and a new fit and proper questionnaire. Among other things the proposed changes introduce ECB supervisory expectations on climate-related and environmental risks and explain the … Continue Reading

Published in OJ – Commission Implementing Regulation setting out ITS under the Regulation on cross-border distribution of investment funds

On 15 June 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/955 of 27 May 2021 setting out implementing technical standards (ITS) in accordance with Articles 5(3), 10(3) and 13(3) of the Regulation on cross-border distribution of investment funds. The ITS in the Commission Implementing Regulation concern the … Continue Reading

PRA statement on firm authorisation under the TPR

On 14 June 2021, the PRA issued a statement concerning firm authorisation under the temporary permissions regime (TPR). Key points in the statement include: The TPR came into effect following the end of the transition period. The PRA has an extended period to process authorisation applications from EEA banks in the TPR (currently up to … Continue Reading

ISDA consultation on fallbacks for GBP LIBOR ICE Swap Rate and USD LIBOR ICE Swap Rate

On 11 June 2021, the International Swaps and Derivatives Association (ISDA) launched a new consultation on how to implement fallbacks for certain swap rates published by ICE Benchmark Administration. Specifically the ISDA’s new consultation seeks input on the implementation of: Fallbacks for the sterling LIBOR ICE Swap Rate suggested in a paper published by the … Continue Reading

Outsourcing and third-party risk – Overview of responses to FSB public consultation

On 14 June 2021, the Financial Stability Board (FSB) published a note which summarises the main issues raised by respondents to its discussion paper on regulatory and supervisory issues relating to outsourcing and third party relationships. In the FSB discussion paper financial institutions and third parties were invited to provide comments on: The key challenges … Continue Reading

The Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021

On 14 June 2021, there was published on the legislation.gov.uk website a draft of The Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021. When finalised the draft Order makes amendments to the following Orders dealing with macro-prudential measures: The Bank of England Act 1998 (Macro-prudential Measures) Order 2013/644. The Bank of England Act … Continue Reading

Episode 8 of the Regulation Tomorrow Podcast – out now

Episode 8 of the Regulation Tomorrow Podcast is available now to stream and download on your usual podcast platform. In this month’s episode we receive an update on Brexit from Jonathan Herbst, as he discusses the future of financial services in the UK with Hannah Meakin. We speak to Imogen Garner, Iona Wright and Daniel … Continue Reading

Updated CPS guidance on s330 POCA prosecutions where money laundering cannot be proven

On 2 June 2021, the Crown Prosecution Service (CPS) updated its guidance on prosecuting failure to report cases under s330 Proceeds of Crime Act 2002 (POCA). Prior to the update, the CPS did not charge failure to report offences under s330 POCA where there was insufficient evidence to establish that money laundering was in fact … Continue Reading

Mortgage interest rates and LIBOR: information for borrowers

On 11 June 2021, the FCA published a new webpage providing information to mortgagees on the impact of LIBOR reform. The webpage covers the following topics: Do I have a mortgage which uses LIBOR to calculate my interest rate? The FCA explains that most mortgage interest rates are not calculated using LIBOR. If a mortgage … Continue Reading

BIS and BoE launch Innovation Hub London centre

On 11 June 2021, the Bank for International Settlements (BIS) and the Bank of England announced the launch of a BIS Innovation Hub London Centre, the fourth new Innovation Hub Centre to be opened in the past two years. The launch is part of a plan to expand the Hub’s global reach, which also includes … Continue Reading

EBA report on the data provided by PSPs on their readiness to apply SCA for e-commerce card-based payment transactions

On 11 June 2021, the European Banking Authority (EBA) issued a report on the data provided by payment service providers (PSPs) on their readiness to apply strong customer authentication (SCA) for the subset of payment transactions that are e-commerce card-based payment transactions. The report highlights the status of issuing and acquiring PSPs in enrolling online … Continue Reading

Latest FCA Policy Development update

On 11 June 2021, the FCA published its latest Policy Development update setting out information on recent and upcoming FCA publications. In terms of future FCA publications the Policy Development update notes the following: Policy Statement on the regulation of funeral plans – expected July 2021. Consultation Paper on resolution and FSCS protection rules for … Continue Reading

ESMA public statement on the implementation of the FRANDT commercial terms to provide clearing services

On 11 June 2021, the European Securities and Markets Authority (ESMA) issued a statement regarding the implementation of the fair, reasonable, non-discriminatory and transparent (FRANDT) commercial terms to provide clearing services. Key points in the statement include: ESMA is aware that certain clearing members and clients are facing challenges when preparing for the 18 June … Continue Reading

Basel Committee consults on prudential treatment of cryptoasset exposures

On 10 June 2021, the Basel Committee on Banking Supervision (BCBS) launched a public consultation on the prudential treatment of cryptoasset exposures by credit institutions. Following on from the BCBS’ December 2019 discussion paper where it sought stakeholders’ views on a range of issues relating to the prudential treatment of cryptoassets, the current consultation document … Continue Reading

EBA publishes final revised guidelines on major incident reporting under PSD2

On 10 June 2021, the European Banking Authority (EBA) published revised guidelines on major incident reporting under the revised Payment Services Directive (PSD2). The revised guidelines optimise and simplify the reporting process and templates, focus on incidents with significant impact on payment service providers and improve the meaningfulness of the information to be reported. The … Continue Reading

Commission Delegated Regulation supplementing the CRR with regard to RTS specifying the nature, severity and duration of an economic downturn

On 10 June 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2021/930 of 1 March 2021 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying the nature, severity and duration of an economic downturn referred to in Article 181(1), point (b) and Article … Continue Reading

Commission Delegated Regulation (supplementing the CRR with regard to RTS on the standardised approach for counterparty credit risk

On 10 June 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2021/931 of 1 March 2021 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) on the standardised approach for counterparty credit risk. The RTS specify: The method for identifying derivative transactions with one … Continue Reading

ESAs publish amended technical standards on the mapping of ECAIs

On 10 June 2021, the Joint Committee of the three European Supervisory Authorities (ESAs) published two amended Implementing Technical Standards (ITS) on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs). Since the adoption in 2019 of the ITS on the mapping of credit assessments of ECAIs, two additional credit rating agencies (CRAs) … Continue Reading

Good governance: lessons from the pandemic and key considerations as lockdown eases – recording now available

On 9 June we hosted the latest in our monthly briefing series, which focussed on good governance in a pandemic and post pandemic context. Within this, the session covered the following topics: Senior Managers and Certification Regime: How this has evolved through the pandemic FCA key areas of focus Governance hot topics Culture, diversity and … Continue Reading

Independent expert group appointed to advise Government on standards for green investment

On 9 June 2021, the Government announced the appointment of a Green Technical Advisory Group (GTAG). The GTAG will provide independent, non-binding advice to the Government on developing and implementing a Green Taxonomy in the UK context. This includes advising on: Approach to developing a UK Green Taxonomy that is usable and practicable for financial … Continue Reading

Published in OJ – CRD IV RTS on criteria to identify material risk takers for remuneration purposes

On 9 June 2021, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2021/923 of 25 March 2021 supplementing the Capital Requirements Directive IV by setting out regulatory technical standards (RTS) on the criteria to identify all categories of staff whose professional activities have a material impact on the institutions’ … Continue Reading
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