United Kingdom (and EU regulation)

JMLSG publishes amendments to Sectors 8 and 9 in Part II

By Haney Saadah and Lisa Lee Lewis (UK) on March 17, 2023 Posted in Money laundering, United Kingdom

On 17 March 2023, the Joint Money Laundering Steering Group (JMLSG) published final amendments to the following text in Part II of its Guidance: These have been submitted to HM Treasury for Ministerial approval.… Continue Reading

FCA call for input: SME access to the FOS

By Simon Lovegrove (UK) on March 17, 2023 Posted in Retail, United Kingdom

On 17 March 2023, the FCA launched a call for input to inform its review of whether the thresholds for small and medium sized enterprises (SMEs) to be able to refer complaints to the Financial Ombudsman Service (FOS) remain appropriate. The FCA’s policy objective is to provide access to the FOS to SMEs it thinks … Continue Reading

European Commission proposes amendments to REMIT

By Anna Carrier (BE) on March 17, 2023 Posted in EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, France, Germany, Italy, The Netherlands, United Kingdom

On 14 March 2023, the European Commission (“the Commission”) published a package of legislative proposals that will reform European electricity markets and strengthen European wholesale energy markets’ protection against market manipulation. In addition to amendments to Regulation (EU) 2019/943 (the Electricity Regulation) and Directive (EU) 2019/944 (the Electricity Directive) which set the framework for Europe’s … Continue Reading

FCA publishes Dear CEO letter on the FCA’s priorities for payments firms

By Albert Weatherill (UK) on March 16, 2023 Posted in Fintech, Payment Services, Retail, United Kingdom

On 16 March 2023, the FCA published a Dear CEO letter on its priorities for payments firms. The letter was sent to CEOs of firms within the FCA’s payments portfolio, including those authorised or registered under the Payment Services Regulations 2017 (PSRs) and the Electronic Money Regulations 2011 (EMRs). The letter explains that the FCA … Continue Reading

EBA Handbook on data submissions for supervisory benchmarking of internal models

By Jochen Vester (UK) on March 16, 2023 Posted in Capital adequacy, Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 16 March 2023, the European Banking Authority (EBA) published a Handbook on data submissions for supervisory benchmarking of internal models. The Handbook is an online tool that provides guidance and links to relevant documents and information for the supervisory benchmarking to facilitate their accessibility. In particular, the Handbook includes overviews for all applicable Q&As … Continue Reading

Published in the OJ: Corrigendum to Commission Delegated Regulation (EU) 2021/2268

By Simon Lovegrove (UK) on March 16, 2023 Posted in France, Germany, Italy, Retail, Retail, Retail, Retail, Retail, The Netherlands, United Kingdom

On 16 March 2023, there was published in the Official Journal of the European Union (OJ) a Corrigendum to Commission Delegated Regulation (EU) 2021/2268 of 6 September 2021 amending the regulatory technical standards laid down in Commission Delegated Regulation (EU) 2017/653 as regards the underpinning methodology and presentation of performance scenarios, the presentation of costs … Continue Reading

FATF updates Recommendations on international standards on combatting money laundering and the financing of terrorism proliferation

On 10 March 2023, the Financial Action Task Force (FATF) published updated Recommendations which were adopted at its plenary on 15 February 2023. The FATF has reviewed and updated the FATF Recommendations, in close co-operation with the FATF-Style Regional Bodies (FSRBs) and the observer organisations, including the International Monetary Fund, the World Bank and the … Continue Reading

Commission Delegated Regulation supplementing the Regulation on a framework for the recovery and resolution of CCPs with regard to RTS specifying the contents of the resolution plan

By Jochen Vester (UK) on March 15, 2023 Posted in Clearing and settlement, Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 14 March 2023, the European Commission published Commission Delegated Regulation (EU) of 14 March 2023 supplementing Regulation (EU) 2021/23 of the European Parliament and of the Council with regard to regulatory technical standards (RTS) specifying the contents of the resolution plan. This delegated act sets out the contents of the resolution plan in accordance … Continue Reading

Commission Delegated Regulation supplementing the Regulation on a framework for the recovery and resolution of CCPs with regard to RTS specifying the content of the written arrangements and procedures for the functioning of the resolution colleges

On 14 March 2023, the European Commission published Commission Delegated Regulation (EU) of 14 March 2023 supplementing Regulation (EU) 2021/23 of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of the written arrangements and procedures for the functioning of the resolution colleges. This delegated act sets out … Continue Reading

FATF publishes report on countering ransomware financing

On 14 March 2023, the Financial Action Task Force (FATF) published a report on countering ransomware financing. The report analyses the methods that criminals use to carry out their ransomware attacks and how payments are made and laundered. The report highlights that criminals are almost exclusively using crypto, or virtual assets and have easy access … Continue Reading

The Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) Order 2023

By Simon Lovegrove (UK) on March 15, 2023 Posted in Banking, United Kingdom

On 14 March 2023, there was published on the legislation.gov.uk website The Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) Order 2023. The purpose of the Order is to make certain amendments to the law, in order to enable powers under Part 1 of the Banking Act 2009 to be used effectively … Continue Reading

PRA Consultation Paper 6/23 ‘The non-performing exposures capital deduction’

By Jochen Vester (UK) on March 14, 2023 Posted in Capital adequacy, United Kingdom

On 14 March 2023, the PRA published Consultation Paper 6/23 ‘The non-performing exposures capital deduction’ (CP6/23). In CP6/23 the PRA sets out a proposal to remove the Common Equity Tier 1 (CET1) deduction requirement in the PRA Rulebook, regarding non-performing exposures (NPEs) that are treated as insufficiently covered by firms’ accounting provisions. Among other things … Continue Reading

ESMA updates Q&As on the implementation of the CSDR

By Hannah Meakin (UK) on March 14, 2023 Posted in Clearing and settlement, Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 13 March 2023, the European Securities and Markets Authority (ESMA) updated its Q&As on the implementation of the Central Securities Depository Regulation (CSDR). In its Q&As ESMA has provided further Q&As on partial settlement functionality.… Continue Reading

New briefing note: Ten key steps to reduce the risk of a greenwashing regulatory enquiry

By Katie Stephen (UK), Catherine Pluck (UK) and Joe Smallshaw on March 14, 2023 Posted in ESG, Investigations and enforcement, United Kingdom

Identifying and preventing greenwashing is a growing priority for regulators around the world. In the UK, there are a number of regulators active in this space, including not only the financial services regulators such as the Financial Conduct Authority, but also the Advertising Standards Authority, the Competition and Markets Authority and the Financial Reporting Council. … Continue Reading

BoE publishes report on climate-related risks and the regulatory capital frameworks

By Haney Saadah, Jochen Vester (UK) and Simon Lovegrove (UK) on March 13, 2023 Posted in ESG, United Kingdom

On 13 March 2023, the Bank of England (BoE) published a report on climate-related risks and the regulatory capital frameworks. The report includes updates on capability and regime gaps, capitalisations timelines, and areas for future research and analysis. Background In October 2021, the BoE published its Climate Change Adaptation Report (CCAR) which set out early … Continue Reading

Split the difference: Markets in EU and UK – Cryptoassets

By Hannah Meakin (UK), Albert Weatherill (UK), Floortje Nagelkerke (NL), Anna Carrier (BE) and Simon Lovegrove (UK) on March 13, 2023 Posted in Crypto assets, Seminars, webinars and podcasts, United Kingdom

In the latest in our podcast series, Split the difference, which explores divergence between the EU and UK regulatory regimes in the markets space, Hannah Meakin, Albert Weatherill, Floortje Nagelkerke and Anna Carrier explore some of the markets dimensions of the regulatory reforms involving cryptoassets.… Continue Reading

FATF updates Guidance on Beneficial Ownership of Legal Persons

On 10 March 2023, the Financial Action Task Force (FATF) published updated guidance that focuses primarily on Recommendation 24 (beneficial ownership transparency of legal persons). In March 2022, the FATF agreed on tougher global beneficial ownership standards in its Recommendation 24 by requiring countries to ensure that competent authorities have access to adequate, accurate and … Continue Reading

FCA publishes findings from the FGFs multi-firm review

By Simon Lovegrove (UK) on March 10, 2023 Posted in Regulation and compliance, United Kingdom

On 10 March 2023, the FCA published its findings from a fast-growing firms (FGFs) multi-firm review. For its review, the FCA selected a sample of 25 firms that had experienced fast growth. The firms were CFD providers, wealth managers or payment services firms. The firms had undergone significant growth over a 3-year period (2018 – … Continue Reading

ESMA publishes updated Q&As

By Simon Lovegrove (UK) on March 10, 2023 Posted in Collective investment schemes, Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective Investment Schemes, France, Germany, Italy, The Netherlands, United Kingdom

On 10 March 2023, the European Securities and Markets Authority (ESMA) updated the following Questions and Answers (Q&As)… Continue Reading

FCA publishes Finalised Guidance for firms supporting their existing mortgage borrowers impacted by the rising cost of living

By Simon Lovegrove (UK) and Matthew Gregory (UK) on March 10, 2023 Posted in Retail, United Kingdom

On 10 March 2023, the FCA published final guidance which sets out the ways mortgage lenders can help customers worried about or already struggling with their mortgage payments because of the rising cost of living. The FCA has also published new data and analysis on the mortgage market. The new data shows that, in addition … Continue Reading

HM Treasury publishes policy paper on the Investment Research Review

By Simon Lovegrove (UK) on March 10, 2023 Posted in Regulation and compliance, United Kingdom

On 9 March 2023, HM Treasury published a Policy Paper: Terms of reference – Investment Research Review. The independent review, which was first announced as part of the government’s Edinburgh Reforms, will look at financial services investment research and its contribution to UK capital markets competitiveness. Through the review, the UK is seeking to identify … Continue Reading

Treasury Sub-Committee on Financial Services Regulations publishes letter to the FCA following SDR and investment labels consultation

By Simon Lovegrove (UK) and Haney Saadah on March 10, 2023 Posted in ESG, United Kingdom

On 9 March 2023, the House of Commons’ Treasury Sub-Committee on Financial Services Regulations published a letter addressed to the FCA, following the FCA’s consultation on Sustainability Disclosure Requirements and investment labels. The letter raises the following issues: The Sub-Committee has asked the FCA for a response by 23 March 2023.… Continue Reading

European Commission invites ESAs to conduct a one-off climate risk scenario that goes beyond the usual climate stress tests

By Haney Saadah and Simon Lovegrove (UK) on March 9, 2023 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 9 March 2023, the European Commission published a letter addressed to the Chairs of the European Supervisory Authorities (ESAs) regarding an assessment of the EU financial system’s resilience to stress in the transition to the EU’s 2030 goals for the reduction of greenhouse gas emissions. The letter invites the ESAs to conduct a one-off … Continue Reading

Governance back in the spotlight: BoE and FCA announce actions against LME Clear and LME in connection with March 2022 nickel market suspension

By Katie Stephen (UK), Joe Smallshaw, Simon Lovegrove (UK) and Catherine Pluck (UK) on March 8, 2023 Posted in Investigations and enforcement, United Kingdom

On 3 March 2023, the Bank of England (BoE) and the Financial Conduct Authority (FCA) announced further actions being taken by them in connection with the London Metal Exchange’s (LME) temporary suspension of nickel trading in March 2022. These latest updates, as further detailed below, act as a reminder of the current regulatory focus on … Continue Reading