United Kingdom (and EU regulation)

Building Societies Legislation (Amendment) (EU Exit) Regulations 2018 made

On 15 November 2018, there was published on legislation.gov.uk the Building Societies Legislation (Amendment) (EU Exit) Regulations 2018 together with an explanatory memorandum. The Regulations contain only minor amendments to the draft published on  23 July 2018 which do not alter the substantive content of the Regulations. The Regulations were made on 14 November 2018, … Continue Reading

FSB seventh report on implementation of resolution reforms

On 15 November 2018, the Financial Stability Board (FSB) published its seventh progress report on the implementation of resolution reforms (the Report). The Report provides an overview of the progress in implementing the FSB’s resolution policies in the banking (Section I) and insurance (Section II) sectors and for CCPs (Section III). Section IV sets out … Continue Reading

FSB discussion paper on financial resources to support CCP resolution

On 15 November 2018, the Financial Stability Board (FSB) published a discussion paper on financial resources to support CCP resolution and the treatment of CCP equity in resolution. The purpose of the discussion paper is to obtain public comment so that is can consider whether there is a need for further guidance on the treatment … Continue Reading

BoE Dear Compliance Officer letter

On 15 November 2018, the Bank of England (BoE) published a letter to compliance officers to make firms aware of the upcoming obligation on report settlement internalisation, which will come into effect in July 2019 under Article 9 of the EU Central Securities Depositories Regulation (CSDR). The reporting requirement covers data, which is to be … Continue Reading

ECB general topics chapter of guide to internal models under SSM

On 15 November 2018, the European Central Bank (ECB) has published the general topics chapter of its guide to internal models (the Guide), together with a feedback statement to the ECB’s March consultation on the chapter (the Statement). The Guide provides transparency on how the ECB understands the general (i.e. non-model-specific) topics for internal models, … Continue Reading

ECB speech on cryptos, cyber and CCPs

The ECB has published a speech by Benoît Coeuré, the Chair of the Committee on Payments and Market Infrastructures (CPMI). The speech is entitled The new frontier of payments and market infrastructure: on cryptos, cyber and CCPs. The slides that accompanied the speech have also been published. Key messages in the speech include: the G20 … Continue Reading

ESMA annual report on administrative and criminal sanctions and other administrative measures under MAR

On 15 November 2018, the European Securities and Markets Authority (ESMA) published its latest annual report regarding aggregated information on all administrative sanctions and other administrative measures imposed by national competent authorities and criminal sanctions imposed in a given year.… Continue Reading

PRA Policy Statement on new EU securitisation framework and significant risk transfer

On 15 November 2018, the PRA published Policy Statement 29/18: Securitisation – the new EU framework and Significant Risk Transfer (PS29/18). In PS29/18 the PRA sets out its final policy approach to the EU Securitisation Regulation and certain aspects of the revised Capital Requirements Regulation banking securitisation capital framework. PS29/18 follows an earlier PRA consultation, … Continue Reading

Central Counterparties (Amendment, etc, and Transitional Provision) (EU Exit) Regulations 2018 made

On 15 November 2018, there was published on legislation.gov.uk the Central Counterparties (Amendment, etc, and Transitional Provision) (EU Exit) Regulations 2018 together with an explanatory memorandum. The Regulations were made on 13 November 2018 and will enter into force on 30 March 2019. The Regulations contain only minor changes to the draft published on 24 … Continue Reading

Updated draft Capital Requirements (Amendment) (EU Exit) Regulations 2018

On 15 November 2018, there was published on legislation.gov.uk an updated draft of the Capital Requirements (Amendment) (EU Exit) Regulations 2018, together with an explanatory memorandum. The Regulations have been laid before parliament, and contain minor changes to the draft published on 21 August 2018 (our blog on which can be found here), which do … Continue Reading

EMMI second consultation on hybrid methodology for Euribor

On 15 November 2018, the European Money Markets Institute (EMMI) published their second consultation paper on a hybrid methodology for Euribor (the Consultation). The Consultation is part of EMMI’s commitment to deliver a reformed and robust methodology for Euribor, which aims to meet regulatory and stakeholder expectations in a timely manner. In March 2018, EMMI … Continue Reading

IOSCO issue consultation on leverage

On 15 November 2018, the International Organization of Securities Commissions (IOSCO) published a consultation paper on the use of leverage by investment funds (the Consultation). The Consultation responds to recommendation 10 of the Financial Stability Board’s (FSB) report ‘‘Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities” in which the IOSCO was requested to: … Continue Reading

FSB report on reforming major interest rate benchmarks

On 14 November 2018, the Financial Stability Board (FSB) published a progress report on reforms to the major interest rate benchmarks (the Report). The Report follows up on the recommendations of the FSB’s 2014 report on the same topic which set out a series of recommendations for strengthening existing benchmarks for key interbank offered rates … Continue Reading

FCA review of firms’ whistleblowing arrangements

The FCA has finalised its review of how firms have implemented its whistleblowing rules, which became effective from September 2016 (the Rules). A copy of the review can be found here. The review, which focused on a range of retail and wholesale banks, found that the Rules had helped to ensure that firms implemented whistleblowing arrangements … Continue Reading

Draft Agreement on the UK’s withdrawal from the EU

On 14 November 2018, Prime Minister Theresa May formally announced that a draft agreement had been reached with the EU on the UK’s withdrawal from the EU (the Agreement) – the UK is due to leave the EU on 29 March 2019.  The Agreement has been published alongside a Political Declaration setting out the framework … Continue Reading

Valdis Dombrovskis statement on regulating virtual currencies

On 13 November 2018, European Commission Vice-President Valdis Dombrovskis issued a statement at the European Parliament Plenary on regulating virtual currencies and Initial Coin Offerings (ICOs). In the statement, Mr Dombrovskis posts two questions for financial regulators to consider: Whether crypto-assets are financial instruments, and are therefore covered by financial regulation? Whether that regulation is … Continue Reading

PRA Policy Statement on UK leverage ratio and systemic ring-fenced bodies

On 14 November 2018, the PRA published Policy Statement 28/18: UK leverage ratio – applying the framework to systemic ring-fenced bodies and reflecting the systemic risk buffer (PS28/18) UK leverage ratio: applying the framework to systemic ring-fenced bodies and reflecting the systemic risk buffer (SRB). PS28/18 provides feedback to PRA ‘Consultation Paper 14/18: UK leverage … Continue Reading

Updated MiFID II Q&As on transparency and market structures

On 14 November 2018, the European Securities and Markets Authority (ESMA) published two updated Q&As on: MiFID II and MiFIR market structures topics; and MiFID II and MiFIR transparency topics. The updated Q&As on market structures topics insert a new question concerning direct electronic access and algorithmic trading. The new question enquires as to whether … Continue Reading

ESMA updates Q&As on SSR

On 14 November 2018, the European Securities and Markets Authority (ESMA) published updated Q&As on the Short Selling Regulation (SSR).  The updated Q&As insert one new question concerning the identification of the relevant competent authority, asking which is the relevant competent authority for the financial instruments mentioned in point v) of Article 2(1)(j) of the … Continue Reading

Money Laundering and Transfer of Funds (Information) (Amendment) (EU Exit) Regulations 2018

On 13 November 2018, HM Treasury published the draft Money Laundering and Transfer of Funds (Information) (Amendment) (EU Exit) Regulations 2018 (the Regulations), together with an explanatory memorandum. The Fourth EU Anti-Money Laundering Directive was transposed into UK law by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 … Continue Reading

ESMA publications under the Securitisation Regulation

On 13 November 2018, the European Securities and Markets Authority (ESMA) published two final reports relating to the Securitisation Regulation: Securitisation Regulation technical standards on securitisation repository application requirements, operational standards, and access conditions (the Technical Standards); and ESMA’s technical advice to the European Commission on fees for securitisation repositories under the Securitisation Regulation (the … Continue Reading

FCA report on financial crime

On 13 November 2018, the FCA published a report entitled Financial crime: analysis of firms’ data. The report follows on from the FCA’s 2016 annual financial crime data return – in which over 2,000 firms (including all UK based banks and building societies), had to provide intelligence on the threats and trends they are facing. … Continue Reading

The Social Entrepreneurship Funds (Amendment) (EU Exit) Regulations 2018

On 13 November 2018, there was published on legislation.gov.uk an updated version of the draft Social Entrepreneurship Funds (Amendment) (EU Exit) Regulations 2018, together with an explanatory memorandum. The amended draft Regulations do not substantively alter or amend the content of the draft Regulations first published on 31 October 2018. The few amendments primarily concern … Continue Reading

The Venture Capital Funds (Amendment) (EU Exit) Regulations 2018

On 13 November 2018, there was published on legislation.gov.uk an updated version of the draft Venture Capital Funds (Amendment) (EU Exit) Regulations 2018, together with an explanatory memorandum. The amended draft Regulations do not substantively alter or amend the content of the draft Regulations first published on 31 October 2018. The few amendments primarily concern … Continue Reading
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