United Kingdom (and EU regulation)

40 minute briefing on 4 December – Going green: ESG reforms

Our 40 minute briefing on 4 December will be a seminar, we hope to see you at our London offices. In this briefing members from our Financial Services team and Government Relations team will discuss the EU legislative measures on sustainable finance and the latest green communications from the PRA and FCA. To register your … Continue Reading

MiFID investment firms will need to use a new form to notify FCA of management body changes for non-SMF directors

On 2 December 2019, the FCA published an update on its website reminding solo regulated MiFID investment firms and MiFID optional exemption firms (except credit institutions) that, from 9 December 2019, they need to use a new form to submit information to the FCA when appointing non-SMF directors to, or withdrawing them, from their management … Continue Reading

FMSB statement of good practice for participation in sovereign and supranational auctions in fixed income markets

On 2 December 2019, the FICC Markets Standards Board (FMSB) issued a transparency draft of a new statement of good practice for participation in sovereign and supranational auctions (SSAs) in fixed income markets. The draft statement is the tenth statement of good practice that the FMSB has published since it was set up in 2015 … Continue Reading

ESMA guidance on registering securitisation repositories

On 2 December 2019, the European Securities and Markets Authority (ESMA) published guidance on registering securitisation repositories. ESMA has direct responsibilities regarding the registration and supervision of securitisation repositories under the Securitisation Regulation laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation. The purpose of the … Continue Reading

Council adopts ESFS reforms

On 2 December 2019, the Council of the EU meeting in its configuration as the Justice and Home Affairs Council adopted the legislative texts reforming the European System of Financial Supervision (ESFS). The legislative texts comprise: Omnibus Regulation (PE-CONS 75/19) (Regulation concerning the powers, governance and funding of the European Supervisory Authorities); Omnibus Directive (PE-CONS … Continue Reading

SMCR is only one week away

The extension of the senior managers and certification regime (SMCR) is now only one week away from its implementation date of 9 December 2019. If you do not yet have your implementation plans fully in place, or are grappling with the transitional provisions, we can help. We offer a range of solutions, including our SMCR toolkit which provides … Continue Reading

FMLC letter to ESMA consultation on MAR review

On 29 November 2019, the Financial Markets Law Committee (FMLC) published a letter responding to the European Securities and Markets Authority’s (ESMA) consultation paper on the review of the Market Abuse Regulation (MAR). In the letter, the FMLC raises concerns that the possibility to later amend the definition of inside information is likely to be … Continue Reading

Commission adopts Delegated Regulations on RTS on securitisation repositories

On 29 November 2019, the European Commission (Commission) adopted two Delegated Regulations containing regulatory technical standards (RTS) for securitisation repositories relating to mandates under the Securitisation Regulation: Commission Delegated Regulation on RTS on securitisation repository operational standards for data collection, aggregation, comparison, access and verification of completeness and consistency and Annex. Article 10(7)(a) and 17(2) … Continue Reading

ESMA publishes CRA market share calculation for 2019

On 29 November 2019, the European Securities and Markets Authority (ESMA) published its annual report on market share calculation for EU registered credit rating agencies for 2019 (CRAs). The purpose of the report is to provide guidance on Article 8d of the Regulation on CRAs which provides that issuers or related third parties are required … Continue Reading

FSB final report on the evaluation of the effects of financial regulatory reforms on SME financing

On 29 November 2019, the Financial Stability Board (FSB) published a final report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing. The FSB’s intention behind the final report is motivated by the need to better understand the effects of the reforms introduced by the G20 in … Continue Reading

Extending the Senior Managers and Certification Regime to Benchmark Administrators

On 29 November 2019, the FCA published a consultation paper (CP 19/31) on how to apply the Senior Managers Regime (SMR) to benchmark administrators. The SMR will come into force for benchmark administrators that do not undertake any other regulated activities on 7 December 2020. In CP 19/31, the FCA explains its proposals to: not … Continue Reading

Basel Committee consults on targeted adjustments to CVA risk

On 28 November 2019, the Basel Committee on Banking Supervision (Basel Committee) launched a consultation paper setting out a set of targeted adjustments to the credit valuation adjustment (CVA) risk framework issued in December 2017. The purpose of the adjustments is to align the relevant parts of the revised CVA risk framework with the minimum … Continue Reading

EBA publishes guidelines on ICT and security risk management

On 28 November 2019, the European Banking Authority (EBA) published its final guidelines on ICT and security risk management (the Guidelines). The Guidelines are addressed to financial institutions, which for these purposes are: payment services providers (PSPs) as defined in Article 4(11) of the revised Payment Services Directive (PSD2) and credit institutions and investment firms … Continue Reading

Regulatory Enforcement and Sanctions Trends 2019

In this on-demand webinar, members of our Regulation and Investigations team in London explore regulatory and sanctions trends that emerged throughout 2019 as well as likely developments for the upcoming year based on recent enforcement cases and forward-looking statements from the regulators. To access the webinar, please click the below link and enter your details … Continue Reading

APP scams voluntary code signatories to continue funding ‘no-blame’ scenario until March 2020

On 27 November 2019, UK Finance announced that the seven launch signatories to its automatic push payment (APP) scams voluntary code (the Code) have agreed to continue interim funding for the ‘no-blame’ scenario until 31 March 2020. The continuation of interim-funding is in response to Pay.UK’s recently published conclusions that there is no industry consensus … Continue Reading

Basel Committee guiding principles for operationalisation of sectoral countercyclical capital buffers

On 27 November 2019, the Basel Committee on Banking Supervision (Basel Committee) published guiding principles for the operationalisation of a sectoral countercyclical capital buffer (SCCyB). The Basel III standards introduced a countercyclical capital buffer regime (CCyB), which was phased in from 1 January 2016 and became fully effective on 1 January 2019. National authorities can … Continue Reading

New FCA webpage on approving financial promotions of unauthorised persons

As previously blogged, the FCA introduced temporary intervention measures on the marketing of speculative illiquid securities that will apply from 1 January 2020 to 31 December 2020. On 26 November 2019, the FCA published a related webpage setting out guidance under its existing rules on approving financial promotions of unauthorised persons. These existing requirements are … Continue Reading

FSB updates regulatory framework for haircuts on non-centrally cleared SFTs

On 26 November 2019, the Financial Stability Board (FSB) published an updated version (dated 25 November 2019) of its regulatory framework for haircuts on non-centrally-cleared securities financing transactions (SFTs). The framework aims to address financial stability risks associated with SFTs. The framework includes numerical haircut floors to apply to non-bank-to-non-bank SFTs that were finalised after … Continue Reading

Basel Committee statement on proportionality

On 26 November 2019, the Basel Committee on Banking Supervision (Basel Committee) published a newsletter containing a joint statement with the Basel Consultative Group on the use of proportionality in the implementation of the Basel framework. In the statement, the Basel Committee states that it supports the use of proportionality in implementing the Basel framework … Continue Reading

ECB speech on the European retail payments market

On 26 November 2019, the European Central Bank (ECB) published a speech given by Benoît Cœuré, ECB executive board member, entitled “Crossing the chasm to the retail payments of tomorrow”. In his speech, Mr Cœuré explains the ECB’s governing council decision to relaunch its retail payments strategy. The aim of the strategy is to actively … Continue Reading

Council of EU progress report on banking union

On 25 November 2019, the Council of the EU published a progress report on work on strengthening the EU Banking Union. The report focuses on the following: European deposit insurance scheme (EDIS). Among other things the report states that Commission services presented the main findings of a soon-to-be published study Options and national discretions under … Continue Reading

Next 40 minute briefing (4 December) – Going green: ESG reforms

Our next 40 minute briefing will be a seminar. In this briefing members from our Financial Services team and Government Relations team will discuss the EU legislative measures on sustainable finance and the latest green communications from the PRA and FCA. To register your place for the briefing please click here.… Continue Reading

FCA temporary intervention on the marketing of speculative mini-bonds to retail investors

The FCA has today announced the introduction of temporary product intervention measures for 12 months from 1 January 2020 to address risks of consumer harm from the promotion of speculative mini-bonds to retail investors. The intervention reflects the FCA’s concerns with the widespread marketing of mini-bonds in spite of their high risk nature and difficulty … Continue Reading
LexBlog