United Kingdom (and EU regulation)

A regulatory perspective: the drivers of culture and the role of purpose and governance

On 18 September 2020, the FCA published a speech by Marc Teasdale (Director of Wholesale Supervision – Supervision Investment, Wholesale & Specialists Division) entitled A regulatory perspective: the drivers of culture and the role of purpose and governance. Key points in the speech include: When the FCA refers to culture, it means the typical, habitual … Continue Reading

IOSCO issues measures to reduce conflict of interests in debt capital raising

On 21 September 2020, the International Organization of Securities Commissions (IOSCO) published a final report containing guidance on potential conflicts of interest and associated conduct risks market intermediaries may face during the debt capital raising process. The guidance is in the form of nine measures. Each measure is designed to address one or more of … Continue Reading

EBA phases out its guidelines on legislative and non-legislative loan repayments moratoria

On 21 September 2020, the European Banking Authority (EBA) announced that it will phase out its guidelines on legislative and non-legislative payment moratoria in accordance with its end of September deadline. The EBA guidelines on legislative and non-legislative loan repayments moratoria were published on 2 April 2020 to ensure that EU banks, while maintaining comparable … Continue Reading

Delegated Regulations supplementing EMIR on tiering, comparable compliance and fees for third-country CCPs published in OJ

On 21 September 2020, the following Delegated Regulations supplementing the European Market Infrastructure Regulation regarding central counterparties (CCPs) established in third countries were published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2020/1302 of 14 July 2020 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with … Continue Reading

2021: A defining moment for the interest rates reform

On 21 September 2020, the European Securities and Markets Authority (ESMA) published a speech by its chair, Steven Maijoor, entitled 2021: A defining moment for the interest rates reform. In his speech Mr Maijoor discusses recent and expected developments of the global interest rates reform and the crucial role that the cooperation between public authorities … Continue Reading

ESAS launch survey on environmental and/or social financial product templates

On 21 September 2020, the European Supervisory Authorities (ESAs) published a survey seeking public feedback on presentational aspects of product templates, pursuant to Article 8(3), Article 9(5) and Article 11(4) of the Regulation on sustainability‐related disclosures in the financial services (SFDR). In particular, the ESAs are inviting stakeholders to comment on the layout of the … Continue Reading

FCA proposes measures to address problems identified in general insurance pricing practices

The Financial Conduct Authority (FCA) has published the final report in its study of general insurance pricing practices (MS18/1). The final report follows a two year study into pricing in the general insurance sector in the UK. An interim report was published in October 2019 setting out interim findings. Alongside the final report the FCA … Continue Reading

Directors’ duties in regulated firms

For the latest webinar exploring topics where regulatory and insolvency issues meet, we were joined by members of KPMG’s restructuring group to provide an update on the impact of COVID on directors’ duties in regulated firms. Topics included: Companies Act and common law and equitable duties versus duties under the senior managers and certification regime … Continue Reading

Horizon scanning – UK regulators update Financial Services Regulatory Initiatives Grid

On 18 September 2020, the UK regulatory authorities (HM Treasury, Bank of England, PRA, FCA, Payment Systems Regulator, Competition and Markets Authority, the Pensions Regulator and the Information Commissioners Office) published an updated version of the Financial Services Regulatory Initiatives Grid. This edition of the Grid contains 111 initiatives, an increase on the 85 that … Continue Reading

EBA flags to the EU Commission elements of the definition of credit institution and aspects of the scope of authorisation

On 18 September 2020, the European Banking Authority (EBA) published an opinion addressed to the European Commission to raise awareness as to the opportunity to clarify certain issues relating to the definition of credit institution in the upcoming review of the Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV. The opinion illustrates that … Continue Reading

ECB finalises guide to assessing how banks calculate counterparty credit risk

On 18 September 2020, the European Central Bank (ECB) published its finalised guide outlining the methodology it uses to assess how euro area banks under its supervision calculate their exposure to counterparty credit risk (CCR) and advanced credit valuation adjustment (CVA) risk, following a public consultation which ended on 18 March 2020. The Capital Requirements … Continue Reading

FCA statement on listings of cannabis-related businesses

On 18 September 2020, the FCA issued a statement in response to queries from cannabis-related companies interested in listing in the UK. The FCA statement is pending a guidance consultation which will follow in due course. Key points in the statement include: While medicinal cannabis was legalised in the UK in 2018, investment in overseas-licensed … Continue Reading

Risk Consulting Hot Topic Series: Retail conduct and Fair Customer Treatment

The COVID-19 pandemic has impacted the lives of every individual across the country and brought the fair treatment of customers into even sharper focus. As the virus began to unfold, the regulator took swift action to publish various guidance outlining its expectations as to how firms should treat customers who are impacted by it to … Continue Reading

EBA seeks input from institutions on their ESG disclosure practices

On 17 September 2020, the European Banking Authority (EBA) published an online survey to receive input from credit institutions on their practices and views in the area of disclosure of information on environmental, social and governance (ESG) risks. The survey, which is addressed to large credit institutions that will be required to disclose prudential information … Continue Reading

LIBOR transition: getting my firm ready

On 17 September 2020, the FCA published a new web page, LIBOR transition: getting my firm ready. On this web page the FCA explains what firms need to know about LIBOR transition. The web page starts by setting out information useful to all regulated firms concerning LIBOR transition. This includes that a key consideration of … Continue Reading

ESMA renews its decision requiring net short position holders report positions of 0.1% and above

On 17 September 2020, the European Securities and Markets Authority (ESMA) announced that it was renewing its decision to temporarily require the holders of net short positions in shares traded on an EU regulated market to notify the relevant national competent authority if the position reaches or exceeds 0.1% of the issued share capital. The … Continue Reading

ECB allows temporary relief in banks’ leverage ratio after declaring exceptional circumstances due to the COVID-19 pandemic

On 17 September 2020, the European Central Bank (ECB) announced that euro area banks under its direct supervision may exclude certain central bank exposures from the leverage ratio. The announcement comes after the Governing Council of the ECB confirmed that there are exceptional circumstances due to the COVID-19 pandemic. Banks under ECB supervision can benefit … Continue Reading

Commission impact assessment – long-term investment funds – review of EU rules

On 16 September 2020, the European Commission issued an inception impact assessment concerning proposed amendments to the Regulation on European long-term investment funds (ELTIFs). The impact assessment notes that the current challenge with the ELTIF regime is that, to date, the initial take-up of ELTIFs by the market has been slow, with only a limited … Continue Reading

UK Finance – Discontinuation of LIBOR: a guide for business customers

On 16 September 2020, UK Finance published a guide which is intended for business customers with LIBOR-linked loans to help them understand: The anticipated discontinuation of the benchmark rate LIBOR. Why LIBOR is being discontinued. What they should expect to hear from their bank or lender in the coming months.  … Continue Reading

Christopher Woolard to chair review of unsecured credit market regulation

On 16 September 2020, the FCA announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market. The review will concentrate on how regulation can better support a healthy unsecured lending market. It will take into account the impact of the coronavirus pandemic on employment security and credit scores, … Continue Reading

FCA proposes the next stage of support for consumer credit and overdraft customers

On 16 September 2020, the FCA published Draft guidance: consumer credit and coronavirus – additional guidance for firms. The FCA originally published guidance on credit cards (including retail revolving credit) and personal loans on 9 April 2020 and later updated it on 1 July 2020. Publication of guidance covering motor finance and other high-cost credit … Continue Reading

October 40 Minute Briefing – Learning lessons: Proactive governance in the autumn

We are evolving our successful 40-minute briefings into webinars for financial services professionals. This includes senior management and those in legal, compliance and risk teams who have or are developing financial services expertise. The webinars will be led by senior members of our financial services team from legal, risk consulting and government affairs backgrounds and … Continue Reading

Commission report assessing whether Member States have duly identified and made subject to the obligations of the 4MLD all trusts and similar legal arrangements governed under their laws

On 16 September 2020, the European Commission published a report to the European Parliament and the Council assessing whether Member States have duly identified and made subject to the obligations of the Fourth Anti-Money Laundering Directive (4MLD) all trusts and similar arrangements governed under their laws. Article 31 of the 4MLD requires trustees or persons … Continue Reading

Fees regime for the supervision of FMI

On 16 September 2020, the Bank of England (BoE) published a Policy Statement ‘Fees regime for the supervision of financial market infrastructure (FMI)’. In the Policy Statement the BoE sets out: The final fee rates to meet the Bank’s 2020/21 funding requirement for FMI supervisory activity and the policy activity that supports this, as permitted … Continue Reading
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