On 4 September 2020, the FCA published Consultation Paper 20/18: Quarterly Consultation Paper No.29 (CP20/18).

Chapter 2 of CP20/18 sets out proposed consequential changes to chapter 8 of the Listing Rules to align with provisions for ‘exempted documents’ under the Prospectus Regulation. Chapter 8 of the Listing Rules has retained a reference to the term ‘equivalent document’. This term was linked to provisions in the Prospectus Directive that allowed certain documents to be deemed ‘equivalent’ to an approved prospectus by national competent authorities. The Prospectus Directive was replaced by the Prospectus Regulation, which fully applied from 21 July 2019. One aspect of the changes was that ‘equivalent documents’ were replaced by ‘exempted documents’. The FCA is proposing to amend the Listing Rules to align this reference and clarify two closely related rules.

Chapter 3 sets out proposed amendments to the open banking identification requirements (eIDAS certificate). The regulatory technical standards under the revised Payment Services Directive (PSD2) dealing with strong customer authentication and common and secure communication (SCA-RTS) set out the standards of communication required and regulate access by third party providers (TPPs) to customer accounts held by account servicing payment service providers (ASPSPs). Article 34(1) of the SCA-RTS requires TPPs to rely on eIDAS certificates for the identification of ASPSPs. EIDAS certificates for identification will be carried across into the onshored UK regulatory technical standards for strong customer authentication and secure communication (UK-RTS), and the eIDAS Regulation will be onshored at the end of the transitional period. Earlier this year the European Banking Authority issued a press release on Brexit stating that eIDAS certificates of all UK-based TPPs will be revoked at the end of the transition period. While eIDAS certificates remain valid under UK law, the revocation of individual certificates under EU law will mean that after the transition period TPPs will no longer hold a valid certificate for use in the UK. At present there is no scope within the PSD2 eIDAS regime to issue UK-only certificates. To avoid disruption to open banking services, the FCA is proposing to change the regulatory requirements to allow for the use of an alternative form of identification. The FCA is proposing to amend Article 34 of the UK-RTS to require ASPSPs to accept at least one other electronic form of identification issued by an independent third party. This will be in addition to continuing to accept eIDAS certificates.

Chapter 4 covers proposed onshoring changes to the FCA Handbook for legislative provisions and/or relevant technical changes needed to FCA rules as a result of onshoring over the transition period for EU withdrawal. A summary of the proposed changes and the Handbook areas affected are set out in a table at paragraph 4.10 of CP20/18. This includes proposals to finalise the commencement date of the fees rules for credit rating agencies, trade repositories and securitisation repositories, and updating some definitions in the light of the Securitisation Regulation and Securities Financing Transaction Regulation.

Comments should reach the FCA by 5 October 2020 for chapter 3 and 4 November 2020 for chapters 2 and 4, except for the Fees (Credit Rating Agencies, Trade Repositories and Securitisation Repositories) Instrument 2020, which closes on 5 October 2020.