United Kingdom (and EU regulation)

Basel Committee consults on ‘Principles for the effective management and supervision of climate-related financial risks’

On 16 November 2021, the Basel Committee on Banking Supervision (BCBS) issued a public consultative document titled Principles for the effective management and supervision of climate-related financial risks. The BCBS reports that a review of the existing Basel Framework has concluded that while the ‘Core Principles for Effective Banking Supervision’ (Core Principles) and the ‘Supervisory … Continue Reading

Primary Market Bulletin 36

On 15 November 2021, the FCA issued a special edition of its Primary Market Bulletin. The Bulletin focusses on the introduction of specific Task Force on Climate-related Financial Disclosures (TCFD) aligned climate-related disclosure requirements for listed companies and sets out the FCA’s disclosure expectations and supervisory strategy. This includes an important consultation on the addition … Continue Reading

PRA Policy Statement 26/21: Domestic Liquidity Sub-Groups

On 15 November 2021, the PRA issued Policy Statement 26/21: Domestic Liquidity Sub-Groups (PS26/21). In PS26/21 the PRA provides feedback to the responses it received to Consultation Paper 19/21: Domestic Liquidity Sub-Groups. It also sets out its final policy in the form of amendments to the: Glossary, Liquidity (CRR), and Internal Liquidity Adequacy Assessment Parts … Continue Reading

Amendments to the FPC’s framework for the O-SII buffer

On 15 November 2021, the Bank of England issued a consultation on the Financial Policy Committee’s (FPC) framework. The consultation is relevant to PRA-regulated ring-fenced banks and large building societies that are subject to the other systemically important institutions (O-SII) buffer. The consultation sets out proposals to amend the FPC framework as follows: To change … Continue Reading

RT Plus – Recent U.S. Enforcement Developments

A new episode of RT Plus is available now to stream and download. This episode features Celia Cohen and Samuel Ramer, both of whom are partners in NRF’s US practice. This podcast will be of particular interest to US based firms but also to non-US firms that have some dealings with the US. In this … Continue Reading

Co-legislators continue negotiations over Digital Operational Resilience Act proposal

The legislative bodies of the European Union, the Council of the European Union (the Council) and the European Parliament (Parliament), are getting closer to reaching their individual positions on the proposed regulation on digital operational resilience for the EU financial sector (DORA). The proposal was published by the European Commission (Commission) in September 2020 and … Continue Reading

FCA Market Watch 68

On 16 November 2021, the FCA published its latest newsletter regarding market conduct and transaction reporting issues, titled Market Watch 68. This Market Watch discusses web-based trading platforms which are widely used for rates and fixed income products. The FCA have observed wholesale brokers introducing types of electronic trading platforms to increase access to liquidity … Continue Reading

Open Banking around the world 2021 | A global comparative guide

Since open banking was first implemented in the UK through the PSD2 and the Open Banking Standard in 2018, jurisdictions around the world have adopted their own approaches, and the concept has gained momentum internationally. The open banking around the world comparative guide profiles the new approaches being taken to facilitate open banking throughout key … Continue Reading

EBA publishes ESEP and EREP for 2022

On 12 November 2021, the European Banking Authority (EBA) published its European Supervisory Examination Programme (ESEP) for 2022. The EBA are required to contribute to enhancing supervisory convergence across the internal market. They have an active role in building a common supervisory culture and consistent supervisory practices throughout the European Union. The ESEP is designed … Continue Reading

Global webinar on 18 November 2021 – ESG regulation: Global themes and what’s on the horizon

We invite you to join our webinar on 18 November 2021 in which our global financial services team will discuss and examine recent ESG related developments across key jurisdictions and provide their views on what’s on the horizon. The webinar will be held on the following times during 18 November 2021: 14:00 SGT and HKT … Continue Reading

EBA discussion paper on machine learning for IRB models

On 11 November 2021, the European Banking Authority (EBA) published a discussion paper on machine learning for internal ratings-based (IRB) models.  The discussion paper is a first step to engage the industry and the supervisory community to investigate the possible use of machine learning as IRB models and to build up a common understanding of … Continue Reading

FCA Dear CEO letter – funeral plan providers

On 12 November 2021, the FCA published a letter addressed to Chief Executives regarding applications for authorisation to be a funeral plan provider. The Government has legislated to bring pre-paid funeral plan markets into the scope of FCA statutory regulation from 29 July 2022, at this point all funeral plan providers and intermediaries must have … Continue Reading

Corrigendum to Commission Implementing Regulation 2021/955

On 11 November 2021, there was published in the Official Journal of the EU a Corrigendum to Commission Implementing Regulation (EU) 2021/955 of 27 May 2021 laying down implementing technical standards for the application of Regulation (EU) 2019/1156 with regard to the forms, templates, procedures and technical arrangements for the publications and notifications of marketing … Continue Reading

Corrigendum to CRR II Regulation

On 11 November 2021, there was published in the Official Journal of the EU a Corrigendum to Regulation 2019/876 amending the Capital Requirements Regulation as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, … Continue Reading

The Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2021

On 11 November 2021, there was published on the legislation.gov.uk website the Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2021.These Regulations extend by 12 months the transitional arrangements under Parts 2 and 3 of the Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2019, which enable specified categories of Gibraltar-based firms to provide financial services in … Continue Reading

New FCA web page: Amendments to the IFPR Instrument 2021 since publishing the near-final version

On 12 November 2021, the FCA published a new web page titled Amendments to the IFPR Instrument 2021 since publishing the near-final version. Tables found on the webpage summarise the relevant changes to the near-final Investment Firms Prudential Regime (IFPR) Instrument. Below are the relevant provisions that have been amended: Glossary definition of ‘UK parent … Continue Reading

EBA’s guidance on how to grant authorisation as a credit institution

On 11 November 2021, the European Banking Authority (EBA) published its final report, ‘Guidelines on a common assessment methodology for granting authorisation as a credit institution under Article 8(5) of Directive 2013/36/EU’. These draft Guidelines are targeted to all Member State competent authorities in charge of granting authorisation as a credit institution and sets out … Continue Reading

ESMA publishes technical standards on crowdfunding

On 10 November 2021, the European Securities and Markets Authority (ESMA) published its final report on technical standards (RTS and ITS) under the European crowdfunding service providers for business Regulation. The draft technical standards have been amended and improved based on the feedback received during an earlier consultation which was published in February 2021 where … Continue Reading

FSCS Publishes November 2021 Outlook

On 11 November 2021, the Financial Services Compensation Scheme (FSCS) published its latest Outlook, which confirms its total levy forecast for 2021/22. It also provides an early indication of the 2022/23 levy. The total levy for the 2021/22 financial year is now £717m, which is lower than the £833m levy announced at the last forecast in … Continue Reading

Letter from Sir Jon Cunliffe to UK FMIs on the distribution of profits

On 11 November 2021, the Bank of England (BoE) published a letter from its Deputy Governor, Financial Stability, Sir Jon Cunliffe, regarding the distribution of profits. In its June 2020 letter, the BoE expressed its concerns and stated that all regulated UK Financial Market Infrastructures and specified service providers, must discuss with the BoE in … Continue Reading

Commissioner McGuinness announces proposed way forward for central clearing

On 10 November 2021, the European Commission published a statement by the Commissioner for Financial Services, Financial Stability and Capital Markets Union, Mairead McGuinness. In her statement Commissioner McGuinness states that the Commission will propose an extension of the equivalence decision for UK CCPs in early 2022. However, Commissioner McGuinness also adds that this extension … Continue Reading

RT Plus episode on commodities firms under the UK IFPR regime – out now

The latest episode of RT Plus is out now to stream and download. This episode continues our UK IFPR Series and focusses on the requirements imposed upon commodities firms. In this episode of RT Plus, Jonathan Herbst, Hannah Meakin and Jochen Vester discuss the application of the IFPR regime to commodities firms at a macro … Continue Reading

Financial Services Future Regulatory Framework Review

On 9 November 2021, HM Treasury published its response to the feedback received to its earlier consultation on the launch of the second phase of the Future Regulatory Framework (FRF) Review, which considers how the regulatory framework for financial services needs to adapt to be fit for the future. The response makes a series of … Continue Reading
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