United Kingdom (and EU regulation)

Financial Crime Outlook: 2021 and beyond

Senior management and boards are increasingly acknowledging the threat of financial crime as a critical risk to their business that must be addressed. This has been exacerbated in the last 12 months through the impact of the pandemic as well as rising domestic and international tensions. Norton Rose Fulbright’s financial crime compliance specialists, located in … Continue Reading

ECB finalises guide on supervisory approach to consolidation

On 12 January 2021, the European Central Bank (ECB) published a final guide outlining its supervisory approach to consolidation in the banking sector, following a public consultation which ended on 1 October 2020. The ECB has also published a feedback statement setting out its views on respondents’ comments on the consultation. With the final guide, … Continue Reading

HM Treasury letter to the Chair of the Lord’s EU Committee regarding EMIR 2.2 and the recognition of CCP

On 12 January 2021, HM Treasury published a letter from John Glenn MP (Economic Secretary to HM Treasury) to Lord Kinnoull (Chair of the European Union Committee, House of Lords) providing information on the following: The deficiencies identified in the EU’s delegated acts implementing EMIR 2.2 and the timescale for introduction of EMIR 2.2 regulations … Continue Reading

Responsible openness: The PRA’s approach to supervising banks – speech by David Bailey

Following our recent blog on the PRA’s new consultation on international banks, the regulator has issued a speech by David Bailey (PRA Executive Director, Financial Market Infrastructure) on the same topic. In his speech Mr Bailey describes in more detail the concept of responsible openness which Sam Woods first described in his 2019 Mansion House … Continue Reading

New FCA and PRA webpages – The final countdown – Completing sterling LIBOR transition by end-2021

On 11 January 2021, the FCA issued a new webpage The final countdown: Completing sterling LIBOR transition by end-2021. On the webpage the FCA warns firms that 2021 is the critical year for firms to complete their transition away from LIBOR. The LIBOR administrator, ICE Benchmark Administration, is consulting on ceasing publication of all sterling … Continue Reading

ICE Benchmark Administration Launches ICE Term SONIA Reference Rates as a Benchmark for Use in Financial Instruments

On 11 January 2021, ICE Benchmark Administration announced the launch of its ICE Term SONIA Reference Rates (ICE TSRR) as a benchmark for use in financial instruments by licensees. The ICE TSRR are designed to measure expected (i.e. forward-looking) SONIA rates over one, three, six and 12 month tenor periods, and are based on a … Continue Reading

Consultation Paper 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’

Introduction On 11 January 2021, the PRA published Consultation Paper 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’ (CP2/21). The proposals in CP2/21 are relevant to existing or prospective PRA authorised banks and designated investment firms that are headquartered outside of the UK or are part of a group based outside of … Continue Reading

Adding a new sub-fund to an umbrella scheme in the TMPR – update

On 3 December 2020, we reported that the FCA had published a new webpage in which it explained the proposed process for adding a new sub-fund to an umbrella scheme that will be in the temporary marketing permissions regime (TMPR). On 31 December 2020, the FCA updated its webpage by inserting links to the final … Continue Reading

Market Watch 66

On 11 January 2021, the FCA published Market Watch 66 in which it set out its expectations for firms on recording telephone conversations and electronic communications when alternative working arrangements are in place, including increased homeworking. In terms of risk from reduced monitoring, the key messages in Market Watch 66 include: Risks from misconduct may … Continue Reading

Financial crime systems and controls during coronavirus situation – update

On 6 May 2020, we reported that the FCA had published a new webpage concerning a statement on financial crime systems and controls during coronavirus situation. On 8 January 2021, the FCA added the following text to this webpage, “This statement will no longer apply from 7 February 2021”.… Continue Reading

FCA updates webpage on information for firms regarding the COVID-19 pandemic

On 17 March 2020, we reported that the FCA had published a new webpage containing information for firms regarding the COVID-19 pandemic. On 6 May 2020, we further reported that the FCA had added a new section to this webpage concerning information security. On 8 January 2021, the FCA updated the text that appears on … Continue Reading

Brexit – Reminder from the French regulator to UK financial institutions on their obligations towards customers residing in France

On 4 January 2021, the French regulator (the Autorité de Contrôle Prudentiel et de Résolution – ACPR) issued a press release reminding UK authorised financial institutions (including those located in Gibraltar) of their obligations towards customers residing in France. As of 1 January 2021, European law is no longer applicable in the United Kingdom (UK). … Continue Reading

Brexit – France clarifies the form and content of the information to be provided by UK insurers to their French insureds and policyholders following Brexit – Update

As mentioned in our previous post published in April 2019, the French Ministry of Economy and Finance passed a decree dated 22 March 2019 (the March 2019 Decree) implementing the provisions of the ordinance n°2019-75 of 6 February 2019, introducing a contingency plan for the financial services sector in connection with the withdrawal of the … Continue Reading

UK Government consults on plan to regulate stablecoins

On 7 January 2021 HM Treasury published a call for evidence on a proposed expansion of the UK’s regulatory perimeter to stablecoins, whilst also seeking input on investment and wholesale use cases for cryptoassets (the CfE). The CfE is a further step in HM Treasury’s broader policy approach to cryptoassets, following the close of its … Continue Reading

ISDA paper on COVID-19 and CCP risk management frameworks

On 8 January 2021, the ISDA published a paper on COVID-19 and CCP risk management frameworks. The paper is based on the feedback that the ISDA Clearing Member Committee received from central counterparties (CCPs) and how their risk management frameworks reacted to the pandemic. The ISDA found that CCPs have dealt with the pandemic well … Continue Reading

CFTC and ESMA sign enhanced MoU related to certain recognised CCPs

On 7 January 2021, the United States’ Commodity Futures Trading Commission (CFTC) and the European Securities and Markets Authority (ESMA) announced that they had signed a new Memorandum of Understanding (MoU) regarding cooperation and exchange of information with respect to certain registered derivatives clearing organisations established in the United States that are central counterparties (CCPs) … Continue Reading

UK regulatory approach to cryptoassets and stablecoins: consultation and call for evidence

On 7 January 2021, HM Treasury issued a consultation document on the Government’s approach to cryptoasset regulation, with a focus on stablecoins and a call for evidence on investment and wholesale uses. In the March 2020 Budget HM Treasury outlined two measures as part of the UK’s response to cryptoassets: Consulting on bringing certain cryptoassets … Continue Reading

FCA publishes coronavirus financial resilience survey data

On 7 January 2021, the FCA published the results of its COVID-19 financial resilience survey data. The surveys were sent to solo-regulated firms to inform the FCA of the impact of the pandemic on firms’ financial resilience. The surveys did not cover the 1,500 largest firms in the UK financial sector who are regulated by … Continue Reading

Publication of financial instruments reference data after the end of the Brexit transition period

On 6 January 2021, the European Securities and Markets Authority (ESMA) published its first set of Financial Instruments Reference Data System (FIRDS) files following the end of the Brexit transition period. ESMA states that the FIRDS delta files contain information about: Termination of all UK financial instruments: (ISIN, MIC) records for MICs in the UK … Continue Reading

ESMA promotes transparency for TLTRO III transactions

On 6 January 2021, the European Securities and Markets Authority (ESMA) issued a public statement promoting transparency in the IFRS financial statements of banks regarding accounting for the third series of the European Central Bank’s targeted longer-term refinancing operations (TLTRO III). The main recommendations for affected banks are to: Provide entity-specific disclosures of the significant … Continue Reading

ESMA launches a common supervisory action with NCAs on the supervision of costs and fees of UCITS

On 6 January 2021, the European Securities and Markets Authority (ESMA) announced that it was launching a Common Supervisory Action (CSA) with Member State national competent authorities (NCAs) on the supervision of costs and fees of UCITS across the EU. The CSA will be conducted during 2021. The CSA will assess entities’ compliance with the … Continue Reading

The Short Selling (Notification Thresholds) Regulations 2021

On 6 January 2021, there was published on the legislation.gov.uk website The Short Selling (Notification Thresholds) Regulations 2021 together with an explanatory memorandum. The statutory instrument amends the onshored Short Selling Regulation by lowering the initial notification threshold for the reporting of net short positions to the FCA, in relation to the issued share capital … Continue Reading

Direction exempting market participants from the obligation to register with Ofgem under REMIT

On 4 January 2021, Ofgem issued a direction stating that under Article 9(1A) of the onshored Regulation on wholesale energy market integrity and transparency (REMIT), as amended, until further notice, the obligation to register with it does not apply to wholesale energy market participants that are already registered with the Northern Ireland Authority or with … Continue Reading

Corrigendum to Commission Delegated Regulation (EU) No 667/2014

On 29 December 2020, there was published in the Official Journal of the EU a Corrigendum to Commission Delegated Regulation (EU) No 667/2014 of 13 March 2014 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to rules of procedure for penalties imposed on trade repositories by the European … Continue Reading
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