United Kingdom (and EU regulation)

FCA Asset Management Market Study: FCA tightens the rules further

Introduction In November 2015, the FCA published the terms of reference for an asset management market study (AMMS). The intention behind the AMMS was to understand how asset managers compete to deliver value to both retail and institutional investors. The FCA published an interim report in November 2016 which was followed up by a final … Continue Reading

New 40 minute briefing recording: Buy-side focus

The webex recording of our February 40 minute briefing, Buy-side focus, is now available. To access the recording, please click here. To register for or access our Asset Management Regulation Hub referenced in the briefing, please click here. The Asset Management Regulation Hub is a free service in which you will find resources to help monitor … Continue Reading

ESMA thresholds below which an EU prospectus is not required

The Prospectus Regulation does not apply to an offer of securities to the public with a total consideration in the EU of less than 1 million EUR calculated over a period of 12 months. Article 3(2) of the Prospectus Regulation also provides that Member States may decide to exempt offers of securities to the public … Continue Reading

Council of EU invites approval of final compromise text of proposed pension product Regulation

On 8 February 2019, the Council of the EU published an ‘I’ Item note on the proposed Regulation on a pan-European personal pension product. Following negotiations between the Austrian Presidency, the European Parliament and the European Commission, a provisional agreement between the institutions was achieved on 13 December 2018 – a final compromise text is … Continue Reading

Financial crime outlook – key themes for 2019

An increasingly globalised business environment, coupled with a growth in technology, continues to increase the risk of financial crime for all institutions. With this in mind, our Regulatory Compliance Consulting team have identified what they see as the key financial crime threats and issues that should be of focus for Heads of Financial Crime, Money … Continue Reading

Council of EU Presidency compromise proposals on ESFS reform

On 8 February 2019, the Council of the EU published three notes (dated 4 February 2019)  to delegations setting out compromise proposals relating to the European Commission’s proposed legislative reforms to the European System of Financial Supervision (ESFS): Omnibus Regulation on reforms to the ESFS; Omnibus Directive amending MiFID II; and Regulation amending the Regulation … Continue Reading

UK Government to develop a code of practice to tackle sexual harassment in the workplace

In December 2018, the UK Government announced that it will introduce a new statutory code of practice to tackle workplace sexual harassment following a July 2018 report from the House of Commons’ Women and Equalities Select Committee (the Committee). The Committee’s report called on the Government to: Prioritise sexual harassment: The report calls on the … Continue Reading

PSR consults on working paper on proposed pass-through analysis as part of card-acquiring market review

On 8 February 2019, the Payments Systems Regulator (PSR) published for consultation a working paper concerning its market review into the supply of card-acquiring services. The final terms of reference (ToR) for the market review were published on 24 January 2019. The ToR state that the PSR will examine how the level of fees merchants pay for card-acquiring … Continue Reading

FCA guidance notes: Primary Market Bulletin No 20

On 8 February 2019, the FCA published the 20th edition of Primary Market Bulletin (the PMB). The PMB provides general news and developments within the FCA’s regulatory sphere, as well as changes the FCA has, or is going to make, to its Knowledge Base. The Knowledge Base is the FCA’s source of technical guidance on … Continue Reading

Council of EU invited to agree on general approach for ESFS reforms

On 8 February 2019, the Presidency of the Council of the EU published a note concerning the general approach to the review of the European System of Financial Supervision (ESFS). The note mentions that the latest compromise proposal for a negotiating mandate on the European Supervisory Authorities framework, MiFID II and Solvency II, and the … Continue Reading

ESAs publish recommendations on changes to the PRIIPs KID

On 8 February  2019, the European Supervisory Authorities (ESAs)  issued final recommendations following their consultation on targeted amendments to the Delegated Regulation covering the rules for the key information document (KID) for packaged retail and insurance based investment products (PRIIPs). The ESAs have decided not to propose targeted amendments at this stage. Instead they will … Continue Reading

UK Government confirms that public beneficial ownership registers will be established in the British Overseas Territories by 2023

On 28 January 2019, the UK Government (the Government) explained the timetable to the new 2023 deadline for the creation of public beneficial ownership registers in the British Overseas Territories (BOTs). The Government has explained that draft legislation will be prepared by the end of 2020, as required by the Sanctions and Anti-Money Laundering Act … Continue Reading

Draft Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations laid before Parliament

On 7 February 2019, there was published on legislation.gov.uk a draft version of The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 which has now been laid before Parliament. The draft statutory instrument was first published by HM Treasury on 6 February 2019 (our blog is here). You can track the financial services Brexit EU Exit statutory … Continue Reading

IOSCO final report with best or sound practices for commodity storage and derivative infrastructures

On 7 February 2019, the International Organization of Securities Commissions (IOSCO) published a final report on good or sound practices within commodity storage and delivery infrastructures. The report builds on the findings of IOSCO’s report ‘The Impact of Storage and Delivery Infrastructure on Derivatives Market Pricing’ (Storage Report), which was published in May 2016. The … Continue Reading

ESMA 2019 risk assessment work programme

On 7 February 2019, the European Securities and Markets Authority (ESMA) published its risk assessment work programme for 2019. The work programme provides an overview of ESMA’s analytical, research, data and statistical activities for 2019. The headlights from the work programme are: as data collected under the Alternative Investment Fund Managers Directive, the Markets in … Continue Reading

New EBA working group on APIs under PSD2

On 7 February 2019, the European Banking Authority (EBA) published a webpage concerning a new working group on application programming interfaces (APIs) under the revised Payment Services Directive (PSD2). The webpage notes that the working group will be chaired by the EBA and composed of representatives from a variety of external stakeholders, with which the … Continue Reading

Banking leaders share their insights on adopting the SM&CR

On 7 February 2019, the FCA published a new video on its website in which senior leaders from four financial services firms talk about their experiences of adopting the Senior Managers and Certification Regime. Our SMCR toolkit is a subscription service providing access to all of the key documents that firms need to implement the … Continue Reading

ESMA publishes new page on Brexit

On 7 February 2019, the European Securities and Markets Authority (ESMA) published a new web page on Brexit. The web page contains information regarding: clearing and settlement – access to UK central counterparties and UK central securities depositories; credit rating agencies and trade repositories; cooperation agreements; and supervisory convergence.… Continue Reading

Draft Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019

On 6 February 2019, HM Treasury published a draft of the Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019. The draft statutory instrument is made under the European Union (Withdrawal) Act 2018 (EUWA 2018) and is part of the contingency planning for a no deal Brexit. Essentially it makes amendments to UK primary and secondary legislation … Continue Reading

FCA to announce next steps on its work on the duty of care in the Spring

On 6 February 2019, the FCA added a “next steps” section to its webpage on Discussion Paper 18/5 which discusses the case for and against introducing a duty of care on firms as well as seeking views on what form it might take. The deadline for comments on the Discussion Paper was 2 November 2018. … Continue Reading

Political agreement reached on EMIR Refit Regulation

On 5 February 2019, the Council of the EU announced that it and the European Parliament had reached a preliminary agreement on the draft Regulation amending the EMIR (the EMIR Refit Regulation). The announcement states that the agreed text: introduces a new category of “small financial counterparties” which will be exempted from the obligation to … Continue Reading

ESMA sets out 2019 priorities for supervisory convergence

On 6 February 2019, the European Securities and Markets Authority (ESMA) published its 2019 supervisory convergence work programme, which sets out ESMAs work streams to promote consistent supervision across the EU. For 2019, the following priorities for supervisory convergence were identified: ensuring supervisory convergence in the context of the UK’s decision to withdraw from the … Continue Reading

ESMA publishes supervisory briefing on the supervision of non-EU branches of EU firms

On 6 February 2019, the European Securities and Markets Authority (ESMA) published a MiFID II supervisory briefing on the supervision of non-EU branches of EU firms providing investment services and activities. The supervisory briefing is aimed at Member State competent authorities and also gives market participants indications of compliant implementation of the MiFID II provisions … Continue Reading