United Kingdom

Topic: Financial Services

Subscribe to Financial Services RSS feed

ESMA seek feedback from market participants on the practical aspects of MiFID II and MiFIR implementation

On 1 September 2020 the European Services and Markets Authority (ESMA) published a call for evidence to gather insights and feedback from market participants relating to the practical implementation of MiFID II and MiFIR provisions for equity and non-equity instruments. ESMA seek responses on a dedicated template on or before 31 October 2020. Historically, ESMA … Continue Reading

EMSA proposes further postponement to February 2022 to the implementation of new regulatory technical standards for CSDR

On 26 August the European Securities and Markets Authority (ESMA) published its final report relating to the postponement of the effective date of new regulatory technical standards (RTS) on settlement discipline pursuant to Central Securities Depositories Regulation (CSDR). The RTS was initially planned to come into force on 13 September 2020, but in May 2020 … Continue Reading

The European Commission and Financial Markets Law Committee feed back to European Parliament on AML regulation of virtual currencies

On 2 June 2020 the European Parliament posed questions relating to the registration and monitoring of Virtual Asset Service Providers (VASPs) in Member States as required by the provisions of the 5th EU Anti-Money Laundering Directive (5AMLD). VASPs include virtual currencies, fiat currencies and custodian wallet providers. Responses were received from the Financial Markets Law … Continue Reading

COVID-19: PRA ends temporary approach to value-at-risk back-testing exceptions

On 27 August 2020, the Prudential Regulation Authority (PRA) published a statement setting out its decision to terminate its temporary approach to value-at-risk (VAR) back-testing exceptions from 30 September 2020. This statement follows the PRA’s review of the temporary approach that allowed firms to offset increases due to new back-testing exceptions through a commensurate reduction … Continue Reading

FCA publishes Market Watch Issue 64 focussing on MiFID II implementation after the Brexit transition period

In August 2020 the FCA published its latest edition of Market Watch, issue 64, focussing on the implementation of MiFID II during the Brexit transition period. Importantly, the FCA reminds firms that Brexit temporary transitional powers won’t be applied to transaction reporting rules under MiFID II. Therefore, firm and Approved Reporting Mechanisms (ARMs) must comply … Continue Reading

The Institute of International Finance feeds back on the European Commission’s AML/CTF action plan

On 26 August the Institute of International Finance (IIF) provided feedback to the European Commission on its Action Plan for a comprehensive Union policy on preventing money laundering and terrorist financing, published in May 2020. The IIF notes that a more coordinated approach to implement and oversea the EU’s anti-money laundering (AML) and counter terrorism … Continue Reading

COVID-19: FCA consults on additional guidance for mortgage firms

On 26 August 2020, the Financial Conduct Authority (FCA) published a guidance consultation containing additional draft guidance for mortgage firms in light of the COVID-19 pandemic. It sets out the FCA’s expectations in relation to the fair treatment of mortgage borrowers who are experiencing financial difficulty as a result of the pandemic. This guidance is … Continue Reading

FCA and Bank of England launch survey on liquidity mismatch in open ended funds

The FCA updated its COVID 19 webpage on 26 August 2020 to announce the launch of a new survey in to the liquidity mismatch in open ended funds. In Q4 last year, the Financial Policy Committee (FPC) judged that the mismatch between redemption terms and the liquidity of some funds’ assets could become a systemic … Continue Reading

FCA consults on extending financial crime reporting obligation

On 24 August 2020, the Financial Conduct Authority (FCA) published a consultation paper (CP20/17) focused on extending its annual financial crime reporting obligation to include firms that carry on regulated activities that potentially pose a higher money laundering risk. This follows its 2019/20 Business Plan commitment to consider extending the reporting obligation to more firms. … Continue Reading

EBA updates data for the global systemically important institutions (G-SIIs) for the 2019 period

On 20 August, the European Banking Authority (EBA) updated data relating to the 37 largest institutions in the EU whose leverage ratios exceed EUR 200 billion. This in turn will be used to identify a smaller group of banks which are considered to be global systemically important institutions (G-SIIs). This is the first year that … Continue Reading

EBA responds to EU action plan for a comprehensive EU policy on preventing money laundering and terrorist financing

On 19 August 2020 the European Banking Authority (EBA) published its response to the European Commission’s consultation on its action plan for a comprehensive EU policy on preventing money laundering and terrorist financing. The European Commission’s action plan includes 6 “pillars” to strengthen the EU’s anti-money laundering (AML) and counter terrorist financing (CTF) framework, and … Continue Reading

COVID-19: FCA statement on accounting for lease modifications (amendment to IFRS 16)

On 18 August, the FCA announced temporary relief for issuers who choose to use the amended International Reporting Standard (IFRS) 16 (COVID-19-related rent concessions – Amendment to IFRS 16) during the coronavirus (COVID-19) pandemic and its aftermath. The amendment to IFRS 16 is effective for reporting periods beginning on or after 1 June 2020 and … Continue Reading

Government publishes two consultation papers to strengthen protections around the promotion of financial products and cryptoassets

The Economic Secretary to the Treasury & City Minister, John Glen, announced the publication of two consultation papers today. The consultations contain proposals to increase the oversight of financial promotions issued by unauthorised firms, and to bring the promotion of certain types of cryptoassets under Financial Conduct Authority (FCA) regulation for the first time. The … Continue Reading

Singapore company discloses potential US sanctions violations

On 28 May 2020, Flex Ltd (“Flex”), a Singapore-based electronics manufacturer listed on the NASDAQ, disclosed in its 2020 US Securities and Exchange Commission (“SEC”) filing that it had initiated a voluntary self-disclosure to the US Office of Foreign Assets Control (“OFAC”) on 14 February 2019. The initial disclosure related to possible non-compliance with US … Continue Reading

FCA publishes final guidance for insurers and premium finance firms on the fair treatment of customers in difficulty as a result of coronavirus (COVID-19)

On 14 May 2020, the Financial Conduct Authority (FCA) published final guidance for insurers and premium finance firms on the fair treatment of customers who are experiencing financial difficulty as a result of coronavirus (COVID-19) – see FS20/5: Coronavirus and customers in temporary financial difficulty: guidance for insurance and premium finance firms. The finalised guidance … Continue Reading

Monitor and protect: Consumers and COVID-19

Just as the challenges faced by individuals and businesses during the pandemic are exceptional, so too is the Government’s response, and it is clear that both of the UK regulators expect firms to approach their business in the same way. There are lessons to be learned from the experience of the last financial crisis, as … Continue Reading

Ombudsman publishes insights into complaints arising in respect of underinsurance, misrepresentation and non-disclosure

The Financial Ombudsman Service (FOS) has published on its website an insight into how it deals with complaints in relation to consumer misrepresentations and non-disclosures and the impact of underinsurance. The insights indicate that in some instances insurers are not applying the proportionate remedy rules in the Consumer Insurance (Representations and Disclosure) Act 2012 (CIDRA) … Continue Reading

FCA publishes Sector Views

On 18 February 2020, the Financial Conduct Authority (FCA) published its annual Sector Views publication which considers the risks and potential harms to customers across financial services markets. The Sector Views publication includes a summary of the risks likely to impact the general insurance and protection markets. Each sector view describes actual or potential harms … Continue Reading

FCA publishes interim report on general insurance pricing practices as part of its market study

The Financial Conduct Authority (FCA) has published an interim report on its market study into General insurance pricing practices (MS18/1.2). A market study was launched in October 2018 by the FCA to understand whether pricing practices in home and motor insurance support effective competition and lead to good consumer outcomes. The market study followed a … Continue Reading

PRA publishes PS21/19 responses to CP13/19 ‘Occasional Consultation Paper’ with updated Supervisory Statements

The Prudential Regulation Authority (PRA) has published a Policy Statement (PS) to provide feedback to responses to Consultation Paper (CP) 13/19 ‘Occasional Consultation Paper’. In PS21/19 the PRA sets out its final rules and guidance on issues consulted on in the following chapters of CP13/19: Chapter 2: Solvency II: the quality of capital instruments. Chapter … Continue Reading

EIOPA publishes opinion on sustainability within Solvency II

On 30 September 2019, the European Insurance and Occupational Pensions Authority (EIOPA) published an Opinion on sustainability within Solvency II. The Opinion follows a request made in August 2018 by the European Commission for an opinion on sustainability with an emphasis upon climate change mitigation. The European Commission will take the Opinion into account in … Continue Reading

EBA report on crypto-assets

On 9 January 2019, the European Banking Authority (EBA) published a report containing the results of its assessment of the applicability and suitability of EU law to crypto-assets. The report states that based on the analysis conducted by the EBA, crypto-assets typically fall outside the scope of EU financial services legislation and specific services relating … Continue Reading

European Secured Notes: EBA assessment published

On 24 July 2018, the European Banking Authority (EBA) published a report setting out the outcome of its assessment of the European Commission’s call for advice on European Secured Notes (ESNs). The report makes 5 recommendations on key aspects for consideration by the European Commission when structuring the legislative framework for ESNs: Small and medium-sized … Continue Reading

SONIA compliance with IOSCO principles for financial benchmarks confirmed by BoE

On 25 July 2018, the Bank of England (BoE) published its statement of compliance (as at 14 May 2018) with the International Organization of Securities Commission (IOSCO) principles for financial benchmarks. The IOSCO principles, which the statement shows BoE in compliance with, ensure international best practice in the BoE’s administration of the Sterling Overnight Index … Continue Reading