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Topic: Regulation and compliance

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PRA Policy Statement on 2019/20 regulatory fees and levies

On 13 June 2019, the PRA published Policy Statement 12/19 (PS12/19) on regulated fees and levies, detailing its rates for 2019/20. Specifically, PS12/19 sets out the PRA’s final policy on: the fee rates to meet the PRA’s 2019/20 Annual Funding Requirement (AFR) for the financial period 1 March 2019 to 29 February 2020; amendments to … Continue Reading

Economic and Monetary Union: Commission reports on progress

On 12 June 2019, the European Commission issued a press release which takes stock of the progress made to deepen Europe’s Economic and Monetary Union since the Five President’s Report. The press release also states that ahead of the Euro Summit of 21 June, the Commission invites EU leaders to: reach an agreement on the … Continue Reading

FCA consults on framework for assessing adequate financial resources

On 13 June 2019, the FCA published Consultation Paper 19/20: Our Framework: Assessing Adequate Financial Resources (CP19/20). Understanding a firm’s financial risks, its proximity to failure and how harm is minimised in failure is an important component of the FCA’s supervisory work. Firms should undertake their own assessment of the adequacy of financial resources and … Continue Reading

European Commission adopts further implementing decisions on CRA regulatory equivalence

On 11 June 2019, the European Commission published for consultation nine draft implementing decisions regarding the equivalence of jurisdictions’ supervisory frameworks with the Credit Rating Agencies (CRA) Regulation.  The following decisions repeal previous equivalence decisions on the basis that these jurisdictions no longer meet the equivalence requirements under the CRA Regulation: Argentina; Australia; Brazil; Canada; … Continue Reading

Swiss-EU stalemate prolongs share trading uncertainty

Dialogue on the EU-Switzerland Framework Agreement recommenced on Friday 07 June with a letter from the Swiss Federal Council to European Commission President Jean-Claude Juncker . This is the first public correspondence since negotiations reached a stalemate in December 2018. Negotiations on an inter-institutional agreement, which would usually be of little importance to equity markets, … Continue Reading

ESMA final report on frequent batch auctions under MiFID II

On 11 June 2019, the European Securities and Markets Authority (ESMA) published its final report following its call for evidence on periodic auctions (our blog is here). The report summarises the feedback received to the call for evidence and presents ESMA’s reflections on the feedback provided, including possible follow-ups. Where follow-ups are identified, ESMA intends … Continue Reading

G20 communique from June 2019 meeting

On 10 June 2019, the G20 published a communique, detailing the discussion points from the G20 Finance Ministers and Central Bank Governors meeting held on 9 June 2019. Key takeaways from the communique as regards financial services include: G20 members should consider assisting financial institutions to make any needed adjustments to their business models and … Continue Reading

Approach document on FCA’s role under the PSRs 2017 and the EMRs 2011

On 7 June 2019, the FCA published an updated approach document on its role under the Payment Services Regulations 2017 and the Electronic Money Regulations 2011.The updated approach document adds guidance on refused payment fees. The majority of the updated guidance can be found at paragraph 8.251 of the approach document.… Continue Reading

FCA and Dutch regulator announce closer partnership

On 5 June 2019, the FCA announced that it has signed an agreement with the Dutch Authority for the Financial Markets (AFM) to work more closely together to protect and enhance the integrity and stability of both countries financial systems. Since the UK announced its intention to withdraw from the EU, several financial institutions currently … Continue Reading

Application of ESMA guidelines on commodity derivatives definitions under MiFID II

On 5 June 2019, the European Securities and Markets Authority (ESMA) announced published a press release announcing that it has published the official translations of its guidelines on the application of C6 and C7 of Annex 1 of MiFID II. Member State national competent authorities must notify ESMA by 5 August 2019 as to whether … Continue Reading

FSB user guide for overnight risk-free rates

On 4 June 2019, the Financial Stability Board (FSB) published a user guide to overnight risk-free rates (RFRs). The guide provides an overview of RFRs, details of how they are calculated, and options on how overnight RFRs can be used in cash products. In doing so the FSB intends to broaden the overview on RFRs … Continue Reading

IOSCO report on market fragmentation and cross-border regulation

On 4 June 2019, the International Organization of Securities Commissions (IOSCO) published a report on market fragmentation and cross-border regulation. In 2015, IOSCO released a Final Report from its Task Force on Cross Border Regulation (2015 Report), which included a toolkit of three broad types of approaches for cross-border regulation: national treatment; recognition; and passporting. … Continue Reading

FSB report on market fragmentation

On 4 June 2019, the Financial Stability Board (FSB) published a report on market fragmentation. The report was delivered to G20 Finance Ministers and Central Bank Governors ahead of their meetings in Fukuoka on 8-9 June 2019. The report looks at some examples of financial activities where supervisory practices and regulatory policies may give rise … Continue Reading

FCA policy statement and final rules on SRD II and related party transactions

On 31 May 2019, the FCA published Policy Statement 9/13: Proposals to promote shareholder engagement: Feedback to CP19/7 and final rules (PS19/13). PS19/13 follows Consultation Paper 19/7: Consultation to improve shareholder engagement (CP19/7) (our blog is here). In CP19/7 the FCA set out proposals to implement the requirements of the revised Shareholder Rights Directive (SRD … Continue Reading

ESMA updates MiFID II Q&As on transparency topics

On 3 June 2019, the European Securities and Markets Authority (ESMA) published updated Q&As on MiFID II and MiFIR transparency topics. The updated Q&As contain a number of modified Q&As on: general transparency topics; pre-trade transparency waivers; double volume cap; and the systematic internaliser regime. Two new Q&As are also inserted relating to: the voluntary … Continue Reading

ESMA supervisory briefing on MiFIR pre-trade transparency requirements

On 3 June 2019, the European Securities and Markets Authority (ESMA) published a supervisory briefing on ensuring compliance with the MiFIR pre-trade transparency requirements in commodity derivatives. The briefing provides guidance to Member State competent authorities (NCAs) as regards supervisory and enforcement actions to ensure compliance with pre-trade transparency requirements for negotiated trades in commodity … Continue Reading

ESMA launches common supervisory action on MiFID II appropriateness rules

On 3 June 2019, the European Securities and Markets Authority (ESMA) announced that it is launching a common supervisory action (CSA) which participant national competent authorities (NCAs) will carry out simultaneously in the second half of 2019. The supervisory activity will focus on the application of the MiFID II requirements on the assessment of appropriateness. … Continue Reading

Commission Delegated Regulation (EU) 2018/815 supplementing the Transparency Directive with regard to RTS on the specification of a single electronic reporting format

On  30 May 2019, there was published in the Official Journal of the EU,  Commission Delegated Regulation (EU) 2018/815 of 17 December 2018 supplementing the Transparency Directive with regard to RTS on the specification of a single electronic reporting format. The Commission Delegated Regulation specifies the single electronic reporting format, as referred to in Article … Continue Reading

ESMA list of market makers and authorised primary dealers using the exemption under the SSR

On 29 May 2019, the European Securities and Markets Authority (ESMA) published an updated list of market makers and authorised primary dealers who are using the exemption under the Short Selling Regulation (SSR). The list has been compiled from notifications from Member State competent authorities to ESMA under Article 17(12) of the SSR.… Continue Reading

FCA Policy Statement 19/12: Changes to align the FCA Handbook with the EU Prospectus Regulation

On 31 May 2019, the FCA published Policy Statement 19/12: Changes to align the FCA Handbook with the EU Prospectus Regulation (PS19/12). In PS19/12 the FCA provides feedback on its earlier consultation (Consultation Paper 19/6) and sets out near final rules implementing changes to the Handbook so that it is aligned with the Prospectus Regulation … Continue Reading

ESMA opinion on calculating market size of ancillary activity under MiFID II

On 27 May 2019, the European Securities and Markets Authority (ESMA) published an updated opinion on calculating market size of ancillary activity under MiFID II. The opinion, targeted at Member State national competent authorities, relates to Article 2(3) of Delegated Regulation 2017/592 which lays down the rules for calculating the overall market trading activity. The … Continue Reading

FCA wholesale banking report for 2018/19

In 2015, the FCA introduced its 5 Conduct Question (5CQ) programme for wholesale banks in order to help them improve their conduct risk management and, ultimately, drive cultural change. The 5CQs are: What proactive steps do you take as a firm to identify the conduct risks inherent within your business? How do you encourage the … Continue Reading

ESMA launches call for evidence on position limits in commodity derivatives under MiFID II

On 24 May 2019, the European Securities and Markets Authority (ESMA) published a call for evidence on position limits and position management in commodity derivatives. Under Article 90(1) of MiFID II, “Before 3 March 2020, the European Commission shall, after consulting ESMA, present a report to the European Parliament and the Council on…the impact of … Continue Reading

ESAs consult on draft ITS on reporting of intragroup transactions under FCD

On 22 May 2019, the Joint Committee of the European Supervisory Authorities (ESAs) published a consultation paper on draft implementing technical standards (ITS) on the reporting of intragroup transactions and risk concentration under Article 21a(2b) and (2c) of the Financial Conglomerates Directive (FCD). The draft ITS proposes harmonised templates for the reporting of intra-group transaction … Continue Reading
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