United Kingdom (and EU regulation)

OJ publication – RTS on the homogeneity of the underlying exposures in securitisation

In July the European Banking Authority published two final draft regulatory technical standards (RTS) under the Securitisation Regulation. The first of these RTS established the conditions for which underlying exposures are to be considered homogeneous, being one of the requirements with respect to simplicity, standardisation and transparency of a securitisation transaction. Our earlier blog is … Continue Reading

Council of EU and European Commission draft joint statement on stablecoins

On 6 November 2019, the Council of the EU released a note (13571/19) from its Presidency addressed to it, which annexes a joint statement of the Council and the European Commission (Commission) on stablecoins. In particular, the joint statement provides that “the Council and the Commission state that no global stablecoin arrangement should begin operation … Continue Reading

EBA revised materials for EU-wide stress test 2020

On 7 November 2019, the European Banking Authority (EBA) published the final methodology and draft templates for its 2020 EU-wide stress test along with key milestones of the exercise. The objective of the stress test is to provide EU supervisors, banks and other market participants with a common analytical framework to consistently compare and assess … Continue Reading

New EU prudential regime for investment firms – webinar recording

The recording from our latest 40 minute briefing webinar covering the new EU prudential regime for investment firms is now available. The webinar covers: Where we are in the legislative process for the IFR and IFD; Transitional provisions; Firm classification; New prudential requirements; Remuneration and governance; Equivalence; and What does the new regime mean in … Continue Reading

FMLC addendum to paper on legal uncertainty arising out of Brexit – the provision and application of third country regimes in EU legislation

On 5 November 2019, the Financial Markets Law Committee (FMLC) published an addendum to its July 2017 paper (see previous blog here) which focused on issues of legal uncertainty arising out of the UK’s withdrawal from the European Union without retaining access to the Single Market under any other legal provision. The addendum provides key … Continue Reading

The Prospectus Directive and Transparency Directive Equivalence (Variation) Directions 2019

On 6 November 2019, there was published on legislation.gov.uk the Prospectus Directive and Transparency Directive Equivalence (Variation) Directions 2019 (Directions). The Directions have been made by HM Treasury in exercise of the power conferred by regulation 2(1) and paragraph 9 of Schedule 1 of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) … Continue Reading

Financial services related inquiries close following dissolution of UK Parliament

On 6 November 2019, there was published on parliament.uk an update concerning the UK General Election 2019. Following the dissolution of the UK Parliament on 6 November, all select committees have ceased to exist, and until the committees are reappointed after the General Election on 12 December 2019, there are no chairs or members of … Continue Reading

ECB TARGET2 Decision and Guideline published in OJ

On 5 November 2019, there was published in the Official Journal of the EU (OJ): Decision (EU) 2019/1848 of the European Central Bank (ECB) of 29 October 2019 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2019/32) (the Decision). The Decision is amended to reflect the changes made on 4 October 2019 by … Continue Reading

ESMA consultation on MiFID II position limits

On Tuesday, 05 November 2019, ESMA launched public consultation on position limits and position management controls in commodity derivatives. The consultation paper is divided into two parts and covers – (1) MiFID II review report on the application of position limits and position management controls and (2) technical advice on position reporting thresholds. Following on … Continue Reading

FCA asks Authorised Fund Managers to review their liquidity management arrangements

On 4 November 2019, the FCA published a letter sent by the head of its Asset Management Department, Nick Miller, to the Chairs of Authorised Fund Managers (AFMs) in relation to good practices for effective liquidity management. Mr Miller starts by stressing that AFMs are responsible for ensuring effective fund liquidity, even if investment management … Continue Reading

IOSCO statement on study of emerging global stablecoin proposals

On 4 November 2019, the International Organization of Securities Commissions (IOSCO) released a statement on a study of stablecoin initiatives with a potential global reach (Global Stablecoins). IOSCO’s FinTech Network (the Network), which is chaired by the FCA and was established in May 2018 to facilitate exchanges among IOSCO members on their experiences relating to … Continue Reading

Tomorrow’s financial services webinar – Prudential regime for investment firms

As previously advertised, this month’s financial services briefing will take place tomorrow in the form of a webinar rather than a seminar. In this webinar we will discuss the proposed approach to the prudential classification of investment firms and the new capital requirements methodology. We will then look at the new reporting requirements and remuneration provisions. … Continue Reading

HM Treasury letter confirming UK Government seeking equivalence post-Brexit

On 31 October 2019, HM Treasury published a letter from John Glen, Economic Secretary to the Treasury, to Sir William Cash, House of Commons European Scrutiny Committee Chair (Committee), addressing questions raised by the Committee relating to the UK’s access to the EU financial services markets after Brexit. In the letter, Mr Glen confirms that … Continue Reading

PRA Dear CEO letter on reliability of regulatory returns

On 1 November 2019, the PRA published a Dear CEO letter (dated 31 October 2019) on the reliability of regulatory returns. In the letter, the PRA sets out its expectations for firms to be able to respond promptly to a request to: demonstrate how the design and operation of the governance, controls and other processes … Continue Reading

BCBS update following October 2019 meeting

On 31 October 2019, the Basel Committee on Banking Supervision (BCBS) issued a press release on the outcome of its Madrid meeting on 30-31 October 2019. At its meeting, the BCBS considered, inter alia, initiatives relating to the following issues: credit valuation adjustment (CVA) risk. The BCBS agreed to consult on a final set of … Continue Reading

Council note on financial services legislative files

On 31 October 2019, the Council of the EU published a note from the General Secretariat of the Council relating to progress on financial services legislative files. The note sets out, among other things, the dates on which the Council intends to adopt the following legislation governing: investment firms on 8 November 2019; sustainable finance … Continue Reading

FCA Handbook Notice 70

On 31 October 2019, the FCA published Handbook Notice 70. This Handbook Notice provides a summary of the changes the FCA board made to the Handbook on 26 September 2019 and 24 October 2019. The relevant instruments are: Overdrafts (Information and Tools) Instrument 2019; Mortgages (Regulatory Reporting) Instrument 2019; Conduct of Business Sourcebook (Retirement Outcomes Review) … Continue Reading

FCA and FOS Handbook instrument amending voluntary jurisdiction rules in DISP

On 31 October 2019, the FCA published the Exiting the European Union: Dispute Resolution: Complaints (Amendments) Instrument 2019 (the Instrument). The Instrument amends certain provisions in chapter 2 of the Dispute Resolution: Complaints Sourcebook (DISP) relating to the Financial Ombudsman Service’s voluntary jurisdiction rules by replacing references to “1 April 2019” with references to “exit … Continue Reading

FCA revised directions extending notification window to enter temporary permissions regime

On 31 October 2019, the FCA published the following revised directions for: EEA firms with passports and Treaty firms; EEA collective investment schemes; EEA alternative investment funds; authorised payment institutions and EEA registered account information service providers; and e-money institutions. The directions amend the previous versions in the FCA Handbook and extend the notification period … Continue Reading

BIS speech on the future of payments

On 30 October 2019, the Bank for International Settlements published a speech given by Burkhard Baltz, Deutsche Bundesbank Executive Board Member, entitled “Curtain up for the future of payments: from Bigtechs and Fintechs to smartphones”. In his speech, Mr Baltz discusses the three aspects that he believes are key to the digitalisation of the payments … Continue Reading

ESMA validation rules and XML schema for reporting under SFTR

On 31 October 2019, the European Securities and Markets Authority (ESMA) published a press release announcing it has published further technical details for the reporting of Securities Financing Transactions (SFTs) as required under the SFT Regulation (SFTR) The materials include the validation rules applicable to SFTR reports together with the XML schemas that reporting entities … Continue Reading

EEA Joint Committee Decision incorporating MiFID II into EEA Agreement

On 31 October 2019, there was published in the Official Journal of the EU, Decision of the EEA Joint Committee No78/2019 of 29 March 2019 amending Annex IX (Financial services) to the EEA Agreement. The decision states that Annex IX to the EEA Agreement should be amended to incorporate MiFIR, MiFID II, Delegated Regulation 2016/1033 … Continue Reading

FATF consults on draft guidance on digital identity

On 31 October 2019, the Financial Action Task Force (FATF) launched a consultation on draft guidance on digital identity (Digital ID). The purpose of the consultation is to develop guidance to clarify how Digital ID can be used for customer due diligence (CDD). The FATF intends to use the guidance to assist governments, regulated entities … Continue Reading