The FCA has updated its webpage concerning its supervisory priorities arising from EMIR.
The webpage notes that during 2015, the FCA’s areas of focus will include:
- counterparties complying with the requirements for trade reporting, including having established connectivity or appropriate delegated reporting arrangements, internal systems to ensure the accuracy of reports, and having both acquired Legal Entity Identifiers and ensured that they are renewed annually;
- non-financial firms assessing and monitoring their status against the clearing threshold in line with EMIR;
- clearing members complying with the EMIR Article 39 requirements around segregation, account offering and disclosure of risks and costs associated with the clearing services they offer to clients; and
- readiness of financial firms and non-financials above the clearing threshold for the clearing obligation and for collateralisation of non-centrally cleared over-the-counter derivatives.
The FCA also states that in relation to its supervisory approach it will continue to focus on targeted implementation work and, from 2015 onwards, will start gradually integrating EMIR regulatory requirements into business-as-usual supervision.
In relation to the new EMIR obligations coming into force from 2015 onwards, the FCA states that firms should have robust and specific plans in place to comply with them as they come into force. It adds that if there is a reason why full compliance cannot be achieved by the relevant date in specific circumstances, a firm should prioritise having a detailed and realistic plan to achieve compliance within the shortest possible timeframe. However, this does not prejudge the FCA’s approach to any instances of non-compliance.
View FCA supervisory priorities arising from EMIR, 17 December 2014