On 27 November 2023, the Financial Stability Board (FSB) published the 2023 list of global systemically important banks (G-SIBs). FSB member authorities apply the following to G-SIBs: high capital buffer, total loss-absorbing capacity, group wide resolution planning and regular resolvability assessments and higher supervisory expectations including for risk management functions. The new list of G-SIBs … Continue Reading
On 27 November 2023, the Basel Committee on Banking Supervision published material related to the identification of the 2023 global systemically important banks (G-SIB), including updated denominators used to calculate banks’ scores, the thresholds used to allocate the banks to buckets and the values of the 13 high-level indicators of all banks in the main … Continue Reading
On 27 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a supervisory newsletter on the adoption of the Principles for Operational Resilience (POR) and the revised Principles for the Sound Management of Operational Risk (PSMOR). The newsletter reports on the Basel Committee’s evaluation of the POR and the PSMOR in early 2023 … Continue Reading
Last month the FCA announced that it had fined Equifax Limited £11,164,400 for failing to manage and monitor the security of UK consumer data it had transferred to its parent company based in the US, Equifax Inc, for processing. In our latest podcast in this series, Catherine Pluck discusses with Katie Stephen and Rosie Nance … Continue Reading
On 24 November 2023, a Technology Working Group of industry experts established by HM Treasury’s Asset Management Taskforce issued a report, UK Fund Tokenisation – A Blueprint for Implementation. Tokenisation refers to the issuing of units that are recorded on a distributed ledger, as opposed to units that are recorded on more traditional systems of … Continue Reading
On 24 November 2023, the Bank of England (BoE) published a statement of policy on its fees regime for financial market infrastructure supervision 2023/24. In this statement of policy, which follows an earlier consultation paper, the BoE confirms: Having considered the responses to the earlier consultation, the BoE does not propose to make any changes … Continue Reading
On 24 November 2023, the PRA and FCA issued consultation papers on prudential assessment of acquisitions and increases in control. The PRA consultation paper is PRA CP25/23 and the FCA consultation paper is FCA CP23/23. Part XII of the Financial Services and Markets Act 2000 (FSMA) establishes the UK legal framework for change in control … Continue Reading
The Bank of England (BoE) co-operates with the FCA to supervise financial market infrastructure (FMI) and the framework for this cooperation is set out in a memorandum of understanding (MoU). The BoE and FCA must review the MoU annually to confirm whether the intended arrangements are proving effective. On 24 November 2023, the FCA issued … Continue Reading
On 24 November 2023, the European Banking Authority (EBA) issued a public consultation on new guidelines on preventing the abuse of funds and certain crypto-asset transfers for money laundering and terrorist financing purposes. Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets recasts Regulation (EU) 2015/847 and extends its scope to the … Continue Reading
On 23 November 2023, the UK Parliament published the Alternative Investment Fund Designation Bill, which has been introduced to Parliament. This is Private Member’s Bill, intended to amend the Alternative Investment Fund Managers Regulations 2013 (which implemented the Alternative Investment Fund Managers Directive in the UK) to remove listed investment companies from Alternative Investment Fund … Continue Reading
On 23 November 2023, UK Finance published a report on the impact of artificial intelligence (AI) in financial services, including opportunities, risks and policy considerations. The report examines the state of play of AI in the financial sector – where it is being deployed, where it shows promise for the future and how to make … Continue Reading
On 23 November 2023, the FCA published a speech by Emily Shepperd, Chief Operating Officer and Executive Director of Authorisations, delivered at City and Financial’s Culture and Conduct Forum. The speech focuses on how to “flex” an organisation’s power through culture. In her speech, Ms Shepperd makes the following comments: For further updates on regulatory … Continue Reading
In our EMEA regulatory insights series colleagues from our EMEA offices provide an update on the key regulatory issues they are seeing in their local market. In this third episode James Morris from our Sydney office discuss what they are seeing in the Australian market touching on reforms to payment systems regulation, buy now pay … Continue Reading
On 22 November 2023, HM Treasury (HMT) published a near-final draft Statutory Instrument (SI) and accompanying Policy Note on the UK Retail Disclosure Framework. These documents, published alongside the Chancellor’s Autumn Statement, set out HMT’s planned approach to replacing the EU Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation and creating a new UK retail … Continue Reading
On 22 November 2023, HM Treasury (HMT) published a report on the Future of Payments Review. The report, published alongside the Chancellor’s Autumn Statement, considers how payments are likely to be made in the future and makes recommendations on the steps needed to successfully deliver world leading retail payments, further boosting UK fintech competitiveness. The … Continue Reading
On 22 November 2023, HM Treasury (HMT) published a draft statutory instrument (SI), the Short Selling Regulations 2024, and accompanying policy note. The documents were published alongside the Chancellor’s Autumn Statement. HMT is publishing the draft SI to replace the EU-inherited Short Selling Regulation, as part of its programme to deliver a Smarter Regulatory Framework … Continue Reading
On 22 November 2023, HM Treasury (HMT) published its response to the July 2023 consultation on sovereign debt and credit default swaps in relation to the Short Selling Regulation. The response, published alongside the Chancellor’s Autumn Statement, sets out HMT’s final policy position for the regulation of the short selling of sovereign debt and credit … Continue Reading
Introduction As anticipated in our previous horizon scan (see here), the end of 2023 has brought about significant developments in financial crime enforcement and a real focus on fraud. Looking ahead to 2024, we predict that developments affecting organisations doing business in the UK will include: a focus from organisations on fraud, in particular preparing … Continue Reading
On 22 November 2023, the European Securities and Markets Authority (ESMA) published three explanatory notes covering key topics of the Sustainable Finance (SF) framework. The explanatory notes are purely descriptive and cover: For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
On 22 November 2023, the European Banking Authority (EBA) published a final report on the draft regulatory technical standards (RTS) on the assessment methodology under which Member State competent authorities verify an institution’s compliance with the internal model approach as per Article 325az(8) of the Capital Requirements Regulation (CRR). The draft RTS have been developed … Continue Reading
On 22 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a newsletter on the implementation of the Principles for the effective management and supervision of climate-related financial risks (the Principles). The Basel Committee published the Principles, which seek to improve banks’ climate-related financial risk management and supervisors’ practices, as part of its … Continue Reading
On 22 November 2023, HM Treasury (HMT) published its response to the July 2023 consultation on the Digital Securities Sandbox (DSS). The response sets out the Government’s final approach to implementing the DSS, which will facilitate the use of digital assets in financial markets. The DSS will be the first Financial Market Infrastructure (FMI) Sandbox … Continue Reading
On 21 November 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to … Continue Reading
On 21 November 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023 amending Delegated Regulation (EU) 2021/2139 (Taxonomy Climate Delegated Act) establishing additional technical screening criteria for determining the conditions under which certain economic activities qualify as contributing substantially to climate change mitigation or … Continue Reading