United Kingdom (and EU regulation)

FCA publishes final guidance on cryptoassets regulation

On 31 July 2019, the FCA published Policy Statement 19/22: Guidance on cryptoassets – feedback and final guidance to CP19/3 (PS19/22). In PS19/22 the FCA responds to the feedback it received to Consultation Paper 19/3: Guidance on cryptoassets (CP19/3) (our blog is here) and sets out the final guidance. The purpose of CP19/3 was to … Continue Reading

BoE policy statement on fees regime for FMI supervision 2019/20

On 31 July 2019, the Bank of England (BoE) published a policy statement on the fees regime for the supervision of financial market infrastructure (FMI). The policy statement provides feedback to responses from an earlier consultation paper published in April 2019 on the 2019/20 fees regime for FMI supervision. The policy statement also sets out: … Continue Reading

Pensions Regulator consults on trustee guidance

On 31 July 2019, the Pensions Regulator (TPR) published a consultation paper on draft guides to deliver the Competition and Markets Authority’s (CMA) recommendation for the TPR to produce guidance to trustees of occupational pension schemes on engaging with investment consultants and fiduciary managers. TPR’s guidance includes draft guides to: tendering for fiduciary management services; … Continue Reading

PRA speech on its approach to enforcement

On 31 July 2019, the Bank of England (BoE) published a speech given by Miles Bake (PRA Head of Legal, Enforcement & Litigation Division). In his speech, Mr Bake outlined the PRA’s approach to enforcement providing an overview of recent PRA enforcement actions and explained the enforcement department’s agenda going forward. In terms of recent … Continue Reading

EBA consults on draft guidelines on weighted average maturity of contractual payments

On 31 July 2019, the European Banking Authority (EBA) published a consultation paper proposing draft guidelines on the determination of the weighted average maturity (WAM) of the contractual payments due under the tranche of a securitisation transaction. The framework under the Capital Requirements Regulation (CRR) for securitisations has introduced a tranche maturity as an additional … Continue Reading

FMLC letter to HM Treasury on definition of cryptoassets in 5MLD

On 30 July 2019, the Financial Markets Law Committee (FMLC) published a letter it had sent to HM Treasury concerning the implementation of the Fifth Anti-Money Laundering Directive (5MLD) and cryptoassets. The FMLC highlights discrepancies between the definition of ‘virtual currencies’ provided for in Article 1(2)(d) of 5MLD and the non-legislative definition adopted by UK … Continue Reading

FCA consults on changes to onshored Securitisation Regulation

On 30 July 2019, the FCA published Consultation Paper 19/26: Draft technical standards on the content and format of STS notifications under the onshored Securitisation Regulation (CP19/26). The European Securitisation Regulation (the EU Securitisation Regulation) came into effect on 1 January 2019. It is part of the Capital Markets Union action plan, outlines the general … Continue Reading

BoE and PRA finalise the Resolvability Assessment Framework

On 30 July 2019, the Bank of England (BoE) and the PRA published the Resolvability Assessment Framework (RAF).The RAF builds on the work done since the financial crisis and sets out the next step in implementing the resolution regime: ensuring that firms are, and are able to demonstrate that they are, resolvable. This will require … Continue Reading

FCA launches package of pension related proposals

On 30 July 2019, the FCA published a package of pension related proposals designed to improve the quality of pension transfer advice and to help consumers get better value from their pension. These proposals include: consultation paper (CP19/25) setting out a proposed ban on contingent charging for pension transfer advice designed to protect customers from … Continue Reading

Commission implementing decisions on CRA Regulation equivalence

On 30 July 2019, there was published in the Official Journal of the EU, European Commission implementing decisions relating to the equivalence of jurisdictions’ legal and supervisory frameworks to the requirements of the Credit Rating Agencies (CRA) Regulation. Commission implementing decisions repealing previous positive equivalence determinations under the CRA Regulation have been published for Argentina; … Continue Reading

ESMA updates Q&As on MiFID II data reporting

On 29 July 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFIR data reporting. The updated Q&As insert a new question and answer within section 5 – Maturity Date, expiry date and termination date: What date should be populated in Field 24 (Expiry date) of RTS 23 for financial … Continue Reading

Commission sets out its equivalence policy with non-EU countries

On 29 July 2019, the European Commission issued a communication setting out its overall approach to equivalence and recent legislative developments in terms of how the Commission grants equivalence to non-EU countries. It also describes how the Commission and the European Supervisory Authorities monitor the situation in those non-EU countries after equivalence decisions have been … Continue Reading

AFME updates model equity selling restrictions

On 26 July 2019, the Association for Financial Markets in Europe (AFME) published a revised version of its model equity selling restrictions to reflect the application in full of the Prospectus Regulation that came into force on 21 July 2019. The updated version of the equity selling restrictions replaces references to the Prospective Directive with … Continue Reading

FCA Handbook Notice 68

On 26 July 2019, the FCA published Handbook Notice 68. This Handbook Notice provides a summary of the changes the FCA board made to the Handbook on 11 and 25 July 2019. The relevant instruments are: Prospectus Regulation Rules Instrument 2019; Individual Accountability (FCA-Authorised Firms) Instrument 2019; Conduct of Business Sourcebook (Investment Pathways) Instrument 2019; … Continue Reading

ECB guideline on €STR published

On 26 July 2019, there was published in the Official Journal of the EU, the European Central Bank (ECB) guideline governing the euro short-term rate (€STR) and establishing the ECB’s responsibility for its administration and oversight. The guidelines also establish the responsibilities of the ECB and national central banks and sets out the provisions for … Continue Reading

Joint statement on transition to PSD2 RTS

On 26 July 2019, representatives of the two European Third Party Providers (TPP) associations and representatives of the three European Credit Sector Associations (ECSAs) and the Financial Data and Technology Association (FDATA) published a joint statement concerning the transition to the new security and communication standards that will be applicable from 14 September 2019 within … Continue Reading

ECB letter regarding stablecoin initiatives

On 26 July 2019, the European Central Bank (ECB) published a letter from its president, Mario Draghi, to Markus Ferber MEP. In the letter Mr Draghi discusses how the European System of Central Banks (ESCB) is closely monitoring innovation in the financial sector, including stablecoin projects such as Facebook’s ‘Libra’. The ESCB also contributes to … Continue Reading

A conversation on the Green Finance Strategy

On July 2, 2019, the Government published its policy paper on the Green Finance Strategy – a strategy that “recognises the role of the financial sector in delivering global and domestic climate and environmental objectives.” Imogen Garner, partner in the Financial Services team, Glenn Hall, partner and head of the Government Relations and Public Policy … Continue Reading

FCA Policy Statement 19/20: Optimising the Senior Managers & Certification Regime and feedback to CP19/4

On 26 July 2019, the FCA published Policy Statement 19/20: Optimising the Senior Managers & Certification Regime and feedback to CP19/4 (PS19/20). In January 2019, the FCA consulted on changes to optimise the Senior Managers and Certification Regime (SM&CR). In PS19/20 the FCA summarises the feedback it received to the consultation, its response to the … Continue Reading

NGFS technical supplement to report on climate change as a source of financial risk

On 23 July 2019, the Network for Greening the Financial System (NGFS) published a technical supplement to its first comprehensive report on climate change as a source of financial risk which is aimed at central banks and financial supervisors. The paper provides an analysis of two types of risks that arise from climate change: physical … Continue Reading

PSR consults on powers and procedures guidance

On 25 July 2019, the Payment Systems Regulator (PSR) published Consultation Paper 19/7 – PSR powers and procedures guidance consultation (CP19/7). The PSR initially published its Powers and Procedures Guidance (PPG) in March 2015 when it became operational. Since then, the powers and functions employed by the PSR have significantly increased. The PPG sets out … Continue Reading

Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment etc and Transitional Provision) (EU Exit) (No 2) Regulations 2019: Brexit SI

On 25 July 2019, there was published on the legislation.gov.uk website a draft version of the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment etc and Transitional Provision) (EU Exit) (No 2) Regulations 2019, together with a draft explanatory memorandum. The draft Regulation is being made using the power in section 8 of … Continue Reading

Joint Bank of England / PRA Consultation Paper 18/19: UK withdrawal from the EU – changes following extension of Article 50

On 25 July 2019, the Bank of England (BoE) and PRA issued a joint consultation paper which contains: an update on the BoE’s and PRA’s intended use of the temporary transitional power; and proposals to fix deficiencies arising from the UK’s withdrawal from the EU and consequential changes in light of the extension of the … Continue Reading

FCA announces extension to its use of the temporary transitional power

On 25 July 2019, the FCA confirmed that it intends to extend the proposed duration of the directions issued under the temporary transitional power to the 31 December 2020. This is to reflect the extension of Article 50. Other than the additional time the FCA’s approach remains unchanged. As the FCA announced in February 2019, … Continue Reading