United Kingdom (and EU regulation)

Commission consults on review of the EU Benchmarks Regulation

On 11 October 2019, the European Commission (Commission) launched consultation on a review of the EU Benchmarks Regulation (BMR). The Commission is mandated by Article 54 BMR to conduct a review of certain provisions of the BMR and to submit a report to the European Parliament and to the Council by 1 January 2020. In … Continue Reading

New FCA webpage – Form K explained

On 11 October 2019, the FCA published a new webpage providing further information on the submission of Form K; the senior managers and certification regime (SMCR) conversion notification form. Form K enables firms to inform the FCA regarding approved individuals they wish to convert from the Approved Persons Regime to corresponding senior management functions under … Continue Reading

HM Treasury approves the latest amendments to Chapter 17 of the JMLSG Guidance

On 10 October 2019, the Joint Money Laundering Steering Group (JMLSG) announced that HM Treasury had approved the revised guidance on syndicated lending set out in Part II, Chapter 17 of the JMLSG guidance. The amendments to the JMLSG guidance clarify that market participants entering into a syndicated loan transaction, whether in the capacity of … Continue Reading

FCA sets out latest expectations for firms on Brexit

On 11 October 2019, the FCA issued a press release concerning its latest expectations for firms on Brexit. The FCA reports that it is aware that leaving the EU during the working week could pose operational challenges for firms. During this time firms should take reasonable steps to be prepared to comply with post-exit MiFID … Continue Reading

FSB and IMF publish 2019 progress report on G20 data gaps initiative

On 11 October 2019, the Financial Stability Board (FSB) and International Monetary Fund (IMF) jointly published the fourth progress report on the implementation of the second phase of the G20 data gaps initiative (DGI-2). The report provides an overview of the progress made since September 2018 in addressing the issue of post-crisis data gaps and … Continue Reading

Commission issues non-paper on key elements of a refined methodology for identifying high-risk third countries under Directive (EU) 2015/849

On 1 October 2019, the General Secretariat of the Council of the EU (the Council) published a European Commission (Commission) non-paper on key elements of a refined methodology for identifying high-risk third countries under Directive (EU) 2015/849 (the Fourth Anti-Money Laundering Directive). Following the rejection by the Council of the most recent Delegated Regulation identifying … Continue Reading

COREPER approves European Parliament position on EMIR 2.2

On 11 October 2019, the Council of the EU (Council) published an ‘A’ item note relating to the Permanent Representatives Committee’s (COREPER) approval of the European Parliament’s (Parliament) position on the proposed Regulation amending the EMIR supervisory regime for EU and third-country central counterparties (EMIR 2.2). The note also invites the Council to approve the … Continue Reading

European Commission launches public consultation on the implementation of the final Basel III reform in the EU

On 11 October 2019, the European Commission launched a public consultation on the implementation in the European Union of the December 2017 Basel Committee on Banking Supervision (BCBS) standard (Basel III: Finalising post-crisis reforms). The consultation document addresses the key elements of the BCBS standard, including revisions to the Basel III standards on credit risk, … Continue Reading

Commissioner Margrethe Vestager: A level playing field for banks in the Union

On 10 October 2019, the European Commission (Commission) published a speech given by Margrethe Vestager (Competition Commissioner) at the SRB Conference 2019. The speech was entitled A level playing field for banks in the Union. In her speech Competition Commissioner Vestager discusses the Commission’s response to the financial crisis of 2008, competition control in the … Continue Reading

Update on the proposed Regulation amending the BMR on low carbon benchmarks and positive carbon impact benchmarks

On 10 October 2019, HM Treasury published a letter (dated 9 October 2019) from John Glen MP, Economic Secretary to HM Treasury, to the Earl of Kinnoull, House of Lords EU Committee Chair, in respect of the proposed Regulation amending the Benchmarks Regulation (BMR) on low carbon benchmarks and positive carbon impact benchmarks. Mr Glen … Continue Reading

Government response to Treasury Committee report on work of FCA and regulatory perimeter

On 10 October 2019, the House of Commons’ Treasury Committee (Committee) published its report following the Government’s response to the Committee’s earlier report on the work of the FCA and the perimeter of regulation (see previous blog here). In response to the Committee’s recommendations, the Government states that it is working with the FCA to … Continue Reading

FCA Financial Instruments Transparency System Instructions

On 10 October 2019, the FCA published instructions for its Financial Instruments Transparency System (FITRS). The instructions provide details on the files containing UK only transparency calculation results that the FCA will publish and instructions on how to use these files. The FCA states that that the intended audience for these instructions are market participants … Continue Reading

FPC agrees principles to ensure payment systems support financial stability

On 9 October 2019, the Bank of England published the financial policy summary and record (FPSR) of the Financial Policy Committee (FPC) meeting on 2 October 2019. During the course of the meeting, among other things, the FPC agreed a set of principles that will guide its assessment of how prudential regulation and supervision should … Continue Reading

PRA letter to Treasury Select Committee on IT failures in the financial services sector

On 8 October 2019, the House of Commons’ Treasury Select Committee (Committee) published a letter (dated 16 September 2019) from Lyndon Nelson, Deputy CEO, PRA, following up on his appearance before the Committee on 24 July 2019, as part of its inquiry addressing IT failures in the financial services sector. During the hearing, Mr Nelson … Continue Reading

Financial Services (Implementation of Legislation) Bill 2017-19 falls

On 9 October 2019, the UK Parliament updated its webpage on the Financial Services (Implementation of Legislation) Bill 2017-19 (Bill) to confirm that the Bill failed to complete its passage through Parliament before the end of the session. This means the Bill will make no further progress. This is a result of the prorogation of … Continue Reading

FSB, CPMI and IOSCO reports on governance arrangements for UPI, UTI and CDE

On 9 October 2019, the Financial Stability Board (FSB) published a report setting out governance arrangements for the globally harmonised Unique Product Identifier (UPI) and the unique transaction identifier (UTI). In addition, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report on governance arrangements for … Continue Reading

ESMA publishes annual report on the application of waivers and deferrals under MIFIR

On 9 October 2019, the European Securities and Markets Authority (ESMA) published its annual report on the application of waivers and deferrals under MIFIR. Articles 4(4), 7(1), 9(2) and 11(1) of MIFIR mandates ESMA to monitor the application of pre-trade transparency waivers and deferred trade-publication. As part of this mandate, ESMA submits an annual report … Continue Reading

First Data Access Agreement under the CLOUD Act signed by UK and US

On 3 October 2019, the UK and US governments signed the first bilateral Data Access Agreement (the Agreement) under the US Clarifying Lawful Overseas Use of Data Act 2018 (CLOUD Act) and the UK Crime (Overseas Production Orders) Act 2019. The Agreement seeks to facilitate faster and more direct access by each country’s agencies in criminal … Continue Reading

FCA Market Watch 61

On 7 October 2019, the FCA published the latest issue of Market Watch (no. 61), its newsletter on market conduct and transaction reporting issues. In this issue of Market Watch, the FCA provides information to help firms prepare for a possible no-deal Brexit on 31 October 2019. Firms requiring guidance on Brexit-related issues should look … Continue Reading

FCA statement reminding SIPP operators of their obligations

On 4 October 2019, the FCA published a statement providing information for Self-Invested Pension Plan (SIPP) operators following the administration of Berkeley Burke SIPP Administration Ltd (BBSAL). On 18 September 2019, the directors of BBSAL placed the company into administration as they were unable to cover the costs of litigation arising out of consumer complaints relating … Continue Reading

ESMA publishes final report on CSDR guidelines on standardised procedures and messaging protocols

On 8 October 2019, the European Securities and Markets Authority (ESMA) issued its final report on standardised procedures and messaging protocols under Article 6(2) of the Central Securities Depositories Regulation (CSDR). Article 6(2) of the CSDR requires investment firms to take measures to limit the number of settlement fails. It specifies that these measures should … Continue Reading

ESMA final report on draft RTS on co-operation arrangements under MAR

On 8 October 2019, the European Securities and Markets Authority (ESMA) issued its final report on a set of draft regulatory technical standards (RTS) on co-operation arrangements under the Market Abuse Regulation (MAR). Article 26 of MAR mandates ESMA to develop draft RTS containing a template document for cooperation arrangements that are to be used … Continue Reading
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