United Kingdom (and EU regulation)

FCA Market Watch: issue 56

Hannah Meakin (UK)By Hannah Meakin (UK) on Posted in Market abuse, United Kingdom
The FCA has published the latest issue of its newsletter Market Watch (issue 56). Market Watch is the FCA’s newsletter on market conduct and transaction reporting issues, in this issue the FCA covers: observations on market abuse surveillance; calibration of surveillance systems; assessing the risk of market abuse; fixed income surveillance; firm rationales for failings; and … Continue Reading

FCA webpage on FAMR baseline tracking

Charlotte Henry (UK)Joe Bamford (UK)By Charlotte Henry (UK) and Joe Bamford (UK) on Posted in Retail, United Kingdom
On 24 September 2018, the FCA published a new webpage on baseline tracking relating to the Financial Advice Market Review (FAMR). The webpage includes new FCA research tracking baseline indicators (the Report). Baseline indicators were identified in the FAMR baseline report published in June 2017. The baseline report was the culmination of the FCA and … Continue Reading

EBA launches 2018 EU-wide transparency exercise

Jack Prettejohn (UK)By Jack Prettejohn (UK) on Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom
On 24 September 2018, the European Banking Authority (EBA) issued a press release announcing the launch of its fifth annual EU-wide transparency exercise. In December 2018, together with the Risk Assessment Report (RAR), the EBA will release over 900000 data points on roughly 130 EU banks. The data to be released will cover: capital positions; … Continue Reading

ESMA opinion on amendments to systematic internalisers’ quote obligations under MiFIR RTS

Hannah Meakin (UK)By Hannah Meakin (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
On 21 September 2018, the European Securities and Markets Authority (ESMA) published an opinion (the Opinion) on the European Commission’s (the Commission’s) revised proposal for amending Delegated Regulation (EU) 2017/587 (RTS 1). On 10 August 2018, the Commission endorsed, with amendments, ESMA’s proposal to amend RTS 1  to specify the concept of ‘prices reflecting prevailing … Continue Reading

ECON draft reports on regulatory proposals on cross-border distribution of collective investment funds

Imogen Garner (UK)Iona Wright (UK)By Imogen Garner (UK) and Iona Wright (UK) on Posted in Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective investment schemes, Germany, Italy, The Netherlands, United Kingdom
On 21 September 2018, the European Committee on Economic and Monetary Affairs (ECON) published two draft reports (the Reports) on European Parliament proposals in relation to the cross-border distribution of collective investment funds: draft report on the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC of the European … Continue Reading

ECB guide to on-site inspections and internal model investigations

Jack Prettejohn (UK)By Jack Prettejohn (UK) on Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom
On 21 September 2018, the European Central Bank (ECB) published its guide to on-site inspections and internal model investigations (the Guide). The Guide acts as a reference document for the supervised entities and other legal entities for which the ECB has decided to launch an on-site inspection of. The Guide applies to inspections conducted in … Continue Reading

ESRB Recommendation amending 2015 Recommendation on EU macroprudential policy measures published in OJ

Joe Bamford (UK)By Joe Bamford (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
On 21 September 2018, there was published in the Official Journal of the European Union (OJ) the Recommendation of the European Systemic Risk Board (ESRB) of 16 July 2018 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (the Recommendation). The Recommendation amends ESRB/2015/2 by recommending that … Continue Reading

1LoD Summit – Best Practice for Control Functions within the 1st Line of Defence

John DavisonBy John Davison on Posted in Regulation and compliance, United Kingdom
Norton Rose Fulbright is pleased to be sponsoring the 1LoD Summit in London on November 15. The 1LoD Summit is the largest event in the world dedicated to the front office risk and control function within the business. Topics on the agenda will include Supervision, Control Assurance, Conduct Risk, Surveillance, Rogue Trading and  more. The Summit is designed … Continue Reading

FCA consults on extension of SM&CR to CMCs

Charlotte Henry (UK)By Charlotte Henry (UK) on Posted in Regulation and compliance, United Kingdom
On 20 September 2018, the FCA published Consultation Paper 18/26: Claims management companies: how we propose to apply the Senior Managers and Certification Regime, (CP18/26). Claims management companies (CMCs) will be regulated by the FCA from April 2019, and as such will be required to comply with the Senior Managers and Certification Regime (SM&CR), particularly … Continue Reading

BCBS reports on September 2018 meeting

Peter Snowdon (UK)Jack Prettejohn (UK)By Peter Snowdon (UK) and Jack Prettejohn (UK) on Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom
On 20 September 2018, the Basel Committee on Banking Supervision (BCBS) published a press release on the outcome of their meeting  of 19 and 20 September 2018 (the Press Release).  The Press Release notes that the BCBS discussed: the results of the annual assessment exercise for global systemically important banks (G-SIBs). The BCBS also agreed … Continue Reading

BCBS FAQs on liquidity risk treatment of settled-to-market derivatives

Jack Prettejohn (UK)By Jack Prettejohn (UK) on Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom
On 20 September 2018, the Basel Committee on Banking Supervision (BCBS) published responses to FAQs relating to the treatment of settled-to-market derivatives under the liquidity coverage ratio and net stable funding ratio. The FAQ responses clarify that the liquidity risks associated with settled-to-market derivatives are the same as those for more conventional collateralised-to-market derivatives, and … Continue Reading

IOSCO policy measures on selling OTC leveraged products to retail investors

Hannah Meakin (UK)By Hannah Meakin (UK) on Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom
On 20 September 2018, the International Organization of Securities Commissions (IOSCO) published a final report on retail OTC leveraged products (the Report), which provides measures for securities regulators to consider when addressing the risks arising from the marketing and sale of OTC leveraged products to retail investors. The Report provides three ‘toolkits’ containing guidance and measures … Continue Reading

Council non-objection to Delegated Regulation adding Pakistan to list of high-risk third countries under MLD4

Albert Weatherill (UK)By Albert Weatherill (UK) on Posted in Anti-Money Laundering, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom
On 18 September 2018, the Council of the EU published the minutes of its meeting on general affairs (the Minutes). On page 13 of the Minutes, the Council provides a non-objection to the Commission Delegated Regulation adding Pakistan to the list of high-risk third countries under the Fourth Anti-Money Laundering Directive (the Delegated Regulation). The … Continue Reading

FCA bans Christian Bittar in relation to Euribor submission requests without imposing an additional fine

Katie Stephen (UK)Sonya Zywko (UK)By Katie Stephen (UK) and Sonya Zywko (UK) on Posted in Enforcement, United Kingdom
The FCA has prohibited Christian Bittar, a former derivatives trader of products referenced to Euribor at a global bank, from all controlled functions for seeking to manipulate Euribor. The FCA refrained from imposing an additional financial penalty on the basis that the Crown Court had sentenced Mr Bittar to 5 years and 4 months in prison … Continue Reading

Brexit survey: the impact on the foreign banking sector

Jonathan Herbst (UK)Peter Snowdon (UK)Charlotte Henry (UK)By Jonathan Herbst (UK), Peter Snowdon (UK) and Charlotte Henry (UK) on Posted in Brexit, United Kingdom
We have launched a second Brexit report (the Report), produced in conjunction with the Association of Foreign Banks (AFB), exploring the impact of the leave vote on the foreign banking sector. The Report is based on the findings of a survey, carried out over the summer, of a cross-section of AFB members, including senior executives … Continue Reading

House of Commons Treasury Committee pushes for cryptocurrency regulation

Conor Foley (UK)Albert Weatherill (UK)By Conor Foley (UK) and Albert Weatherill (UK) on Posted in Fintech, United Kingdom
On 19 September 2018 the UK House of Commons Treasury Committee (the Committee) published its report on the possible regulation of crypto-assets (the Report). Commenting on the Report, Committee chair Rt Hon. Nicky Morgan MP argued that the crypto-assets industry is highly unregulated, which results in numerous risks for investors. Hence, with this Report the … Continue Reading

Updated LMA / ACT guide to LIBOR reform

Imogen Garner (UK)Jochen Vester (UK)By Imogen Garner (UK) and Jochen Vester (UK) on Posted in Regulation and compliance, United Kingdom
On 18 December 2018, the Loan Market Association (LMA) and the Association of Corporate Treasurers (ACT) published the second edition of their guide, The future of LIBOR: what you need to know (the Guide). The Guide provides an overview of the developments of key issues with regards to the proposed transition away from LIBOR benchmarks. … Continue Reading

Joint FCA and PRA Dear CEO letters on preparations for the transition from LIBOR to risk-free rates

Jochen Vester (UK)By Jochen Vester (UK) on Posted in Regulation and compliance, United Kingdom
On 19 September 2018, the Prudential Regulation Authority (PRA) and FCA jointly published a Dear CEO letter to banking firms on firms’ preparations for the transition from LIBOR to risk-free rates (the Letter). The purpose of the Letter is to seek assurance that firms’ senior managers and boards understand the risks associated with the LIBOR … Continue Reading

House of Commons Exiting the EU Committee report on progress of the UK’s negotiations on EU withdrawal

Simon Lovegrove (UK)By Simon Lovegrove (UK) on Posted in Brexit, United Kingdom
On 18 September 2018, the House of Commons Exiting the European Union Committee (the Committee) published their ninth report of session 2017-19, The progress of the UK’s negotiations on EU withdrawal (June to September 2018) (the Report). The Report sets out the opinions and recommendations of the Committee on the progress of the UK’s negotiations … Continue Reading

EBA reports on asset encumbrance

Hannah Meakin (UK)Jack Prettejohn (UK)By Hannah Meakin (UK) and Jack Prettejohn (UK) on Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom
On 19 September 2018, the European Banking Authority (EBA) published their fourth annual report on asset encumbrance (the Report). There was a slight increase in the level of asset encumbrance across the EU in 2017 compared to previous years, with particularly high levels noted in jurisdictions with established covered bond markets (e.g. Sweden), and those … Continue Reading

EBA reports on EU banks’ funding plans

Hannah Meakin (UK)Jack Prettejohn (UK)By Hannah Meakin (UK) and Jack Prettejohn (UK) on Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom
On 19 September 2018, the European Banking Authority (EBA) published a report on EU banks’ funding plans (the Report). The report analyses trends in the market to assess the feasibility of banks’ funding plans submitted to the EBA. Most banks expect their assets to grow by 6.2% until 2020, driven primarily by household loans and … Continue Reading

FMLC report on proposed Regulation amending EMIR supervisory regime for EU and third-country CCPs

Hannah Meakin (UK)By Hannah Meakin (UK) on Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom
On 14 September 2018, the Financial Markets Law Committee (FMLC) published a paper (dated July 2018), European Market Infrastructure Regulation (EMIR): the European Commission’s Legislative Proposal to Amend Procedures for recognition of Third Country Central Counterparties (the Paper). On 14 July 2017, the European Commission (Commission) adopted a legislative proposal to amend the processes for … Continue Reading

IOSCO final report and guidance on conflicts of interest and associated conduct risks

Imogen Garner (UK)Charlotte Henry (UK)By Imogen Garner (UK) and Charlotte Henry (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
On 18 September 2018, the International Organisation of Securities Commission (IOSCO) published a final report on conflicts of interest and associated conduct risks during the equity capital raising process (the Report). The Report follows the IOSCO Board’s August 2017 mandate for  Committee 3 on Regulation of Market Intermediaries (C3) to examine conflicts of interest and … Continue Reading
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