United Kingdom (and EU regulation)

EBA template for no-deal Brexit MoU with FCA and PRA

On 20 March 2019, the European Banking Authority (EBA) published a press release announcing that it has agreed a template for the memorandum of understanding (MoU) outlining provisions of supervisory cooperation and information exchange between the EU supervisory authorities and the UK PRA and FCA. The template will serve as the basis for bilateral MoUs that … Continue Reading

ESMA data operational plan in a no deal Brexit scenario

On 20 March 2019, the European Securities and Markets Authority (ESMA) issued a statement on its data operational plan under a  no-deal Brexit scenario. Under this scenario, the submission of UK data to ESMA will cease from 30 March 2019. Consequently, ESMA is currently preparing all its IT systems and databases to continue functioning for … Continue Reading

ESMA statement on impact of no-deal Brexit on trading obligation for shares under MiFIR and FCA response

On 19 March 2019, the European Securities and Markets Authority (ESMA) published a statement on the impact of a no-deal Brexit on the trading obligation for shares under Article 23 of MiFIR. Article 23 of MiFIR requires investment firms to conclude transactions in shares admitted to trading on a regulated market (RM) or traded on … Continue Reading

European Commission consults on draft Implementing Decisions under BMR

On 19 March 2019, the European Commission published for consultation the following draft Implementing Decisions under the Benchmarks Regulation (BMR): Commission Implementing Decision (EU) on the equivalence of the legal and supervisory framework applicable to benchmarks in Singapore in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council, and annex; and … Continue Reading

Updated EBA methodological guide on risk indicators and detailed risk analysis tools

On 20 March 2019, the European Banking Authority (EBA) published an updated methodological guide on risk indicators and detailed risk analysis tools. The updated guide includes additional indicators based on IFRS 9 information, as well as other indicators to better understand institutions’ profitability, exposures to sovereign counterparties and own funds requirements for operational risk, among … Continue Reading

ESRB Recommendation on EU macro-prudential policy framework published in OJ alongside MiFID II Delegated Regulations

On 20 March 2019, there was published in the Official Journal of the EU (OJ): Recommendation of the European Systemic Risk Board of 15 January 2019 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macro-prudential policy measures. This Recommendation amends Recommendation ESRB/2015/2 by recommending that relevant authorities reciprocate certain … Continue Reading

EMMI consults on EONIA methodology changes

On 20 March 2019, the European Money Markets Institute (EMMI) published a consultation on the change in the methodology of the Euro OverNight Index Average (EONIA), as recommended by the Working Group on Euro Risk-Free Rates. The EMMI is consulting on the following recommendations of the Working Group: the implementation of the recalibrated methodology for … Continue Reading

Basel Committee and EBA report on Basel III monitoring exercise as of 30 June 2018

On 20 March 2019, the Basel Committee on Banking Supervision (Basel Committee) published the results of its Basel III monitoring exercise, based on data as of 30 June 2018. Data is provided for a total of 189 banks, including 106 large internationally active banks. These “Group 1” banks are defined as internationally active banks that have … Continue Reading

Working Group on Sterling Risk-Free Reference Rates’ report on conventions for referencing SONIA

On 19 March 2019, the Bank of England’s Working Group on Sterling Risk-Free Reference Rates published a discussion paper on conventions for referencing SONIA in new contracts. The discussion paper is intended to raise market awareness of the identified conventions for referencing SONIA. The discussion paper has been divided into three parts: Section 1 is … Continue Reading

FCA technical communication on operation of UK MiFIR transparency regime following no-deal Brexit

On 19 March 2019, the FCA published a technical communication on the operation of the MiFIR transparency regime post-Brexit, sitting alongside its supervisory statement on the same topic (our blog on this is here). The technical communication sets out technical details on: the contents of the FCA Financial Instrument Transparency System which is due to … Continue Reading

JMLSG consults on changes to anti-money laundering guidance

On 19 March 2019, the Joint Money Laundering Steering Group (JMLSG) published the text of proposed revisions to part II of its guidance on the prevention of money laundering and the financing of terrorism for the UK financial services industry. The proposed revisions impact two sectors, ‘credit unions’ (sector 4) and ‘brokerage services to funds’ … Continue Reading

ESMA results of MiFID II annual calculations of LIS and SSTI thresholds for bonds for 2019/20

On 19 March 2019, the European Securities and Markets Authority (ESMA) published the results of the annual transparency calculations of the large in scale (LIS) and size specific to the instruments (SSTI) thresholds for bonds. The results are published on a per bond-type basis in excel format in the Annual transparency calculations for non-equity instruments register . … Continue Reading

Basel Committee report on proportionality in bank regulation and supervision

On 19 March 2019, the Basel Committee on Banking Supervision (Basel Committee) published a report on proportionality in bank regulation and supervision. The report summarises the responses received to the Basel Committee’s survey on the same topic by member jurisdictions and participants of the Basel Consultative Group. The Basel Committee found that the majority of … Continue Reading

Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2019 made

On 15 March 2019, there was published on legislation.gov.uk The Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2019, together with an explanatory memorandum. These Regulations have now been made – the contents of these regulations was covered in our earlier blog here. You can track the financial services Brexit EU Exit statutory instruments (as well … Continue Reading

The Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019

On 14 March 2019, The Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019 were made and published on legislation.gov.uk. Following the UK’s withdrawal from the EU, this statutory instrument replaces two EU sanctions regimes in respect of terrorism. One of the EU regimes is the regime adopted on the basis of Common Position 2001/931/CFSP and implemented … Continue Reading

EBA goes live with its central register of payment and electronic money institutions under PSD2

On 18 March 2019, the European Banking Authority (EBA) launched its central electronic register under the revised Payments Services Directive (PSD2). The statutory basis of the register is Article 15(1) of the PSD2. This requires the EBA to develop, operate and maintain an electronic central register that contains information as notified by competent authorities. The … Continue Reading

Brexit: Doing business in the EU – Updated

Spain: updated 11 March 2019 Poland: new country added 12 March 2019 Italy: updated 13 March 2019 Denmark: updated 18 March 2019 Germany: updated 18 March 2019 Sweden: updated 21 March 2019 We have produced a colour coded heat map and table identifying the temporary emergency measures being implemented in EEA jurisdictions, and how financial services provides can … Continue Reading

The Financial Regulators’ Powers (Technical Standards etc) and Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2019

The Financial Regulators’ Powers (Technical Standards etc) and Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2019 have been made and published on legislation.gov.uk, together with an explanatory memorandum. Our earlier blog on these Regulations is here. You can track the financial services Brexit EU Exit statutory instruments (as well as gain access to our … Continue Reading

FCA and ESMA statements endorsing credit ratings in the event of no-deal Brexit

On 15 March 2019, the FCA published a statement endorsing credit ratings from the EU into the UK for regulatory use in a no deal Brexit scenario. The FCA has assessed the EU regulatory regime to be ‘as stringent as’ the UK’s regime for the purposes of allowing UK registered credit rating agencies  to endorse … Continue Reading

EBA report on convergence of supervisory practices

On 15 March 2019, the European Banking Authority (EBA) published its fourth report on the convergence of supervisory practices and its activities carried out in 2018 to promote convergence. Key points to note from the EBA’s analysis of supervisory practices include: in 2018, a good degree of progress was made by the competent authorities in … Continue Reading

European Commission Communication on progress on developing the CMU

On 15 March 2019, the European Commission published a communication on its progress on developing the Capital Markets Union (CMU). The communication outlines the rationale of the CMU, as well as the progress achieved so far in developing the CMU. The communication makes three conclusions: the European Commission has now delivered the measures it committed … Continue Reading

Commission Delegated Regulation on PSD2 electronic central register

On 15 March 2019, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2019/411 of 29 November 2018 supplementing the revised Payment Services Directive (PSD2) with regard to RTS setting technical requirements on development, operation and maintenance of the electronic central register within the field of payment services and … Continue Reading

Commission Implementing Regulation on ITS with regard to the details and structure of the information to be notified in payment services

On 15 March 2019, there was published in the Official Journal of the EU (OJ), Commission Implementing Regulation (EU) 2019/410 of 29 November 2018 laying down implementing technical standards with regard to the details and structure of the information to be notified, in the field of payment services, by competent authorities to the EBA pursuant … Continue Reading
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