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Topic: Regulation and compliance

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ESMA updates Q&A on MiFIR data reporting

On 28 September 2020, the European Securities and Markets Authority (ESMA) announced that it had updated its Q&A document on data reporting under MiFIR. ESMA explains that it has updated the Q&A as follows: Section 2: LEI of the issuer. A new Q&A (question 6, LEI of funds) that seeks to clarify which LEI (ISO … Continue Reading

ESMA publishes draft rules for third-country firms under the new MiFIR and MiFID II regimes

On 28 September 2020, the European Securities and Markets Authority (ESMA) published a final report containing draft regulatory and implementing technical standards (RTS and ITS) on the provision of investment services and activities in the EU by third-country firms under MiFIR and MiFID II. The draft technical standards are published following the changes to the … Continue Reading

ESMA consults on reference data and transaction reporting obligations under MiFIR

On 24 September 2020, the European Securities and Markets Authority (ESMA) issued a consultation paper reviewing the reference data and transaction reporting obligations under the Markets in Financial Instruments Regulation (MiFIR). The consultation paper covers the report to be delivered to the European Commission under Article 26(10) MiFIR which provides that: ESMA shall submit a … Continue Reading

FCA opens registration applications to UK securitisation repositories

On 21 September 2020, the FCA published a new web page on securitisation repositories. Among other things the web page states that firms that wish to apply to be a UK securitisation repository (SR) may complete the draft SR application form from 23 September 2020 and email it to SRapplications@fca.org.uk. Any queries in advance of … Continue Reading

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

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

CMU: Economic and Monetary Affairs Committee calls for an urgent completion

On 11 September 2020, the European Parliament issued a press release stating that the Economic and Monetary Affairs Committee has adopted a report calling for the urgent completion of the Capital Markets Union (CMU). In their report, MEPs call for the development of the CMU to be accelerated, arguing that this would be a viable … Continue Reading

New US DOJ guidance on corporate compliance programs emphasizes dynamic program design and implementation

During the summer, the United States Justice Department announced the latest set of updates to its “Evaluation of Corporate Compliance Programs” policy. The policy, which was first released in 2017 and revised last year, provides companies with detailed guidance on how the Department will review the adequacy and effectiveness of compliance programs when making charging … Continue Reading

Extending deadlines to publishing fund reports and accounts

On 9 September 2020, the FCA updated its web page regarding extending the deadlines to publishing fund reports and accounts. Earlier this year the FCA published a statement giving fund managers extra time to produce their annual and half-yearly reports and accounts due to the operational challenges of the COVID-19 pandemic. This included an assessment … Continue Reading

FMSB publishes Spotlight Review on measuring execution quality in FICC markets

On 7 September 2020, the FICC Markets Standards Board (FMSB) published a Spotlight Review looking at the challenges in measuring quality of trade execution and how this varies across different market participants and segments. The Spotlight Review is the fourth and final in a series that is collectively looking at issues of wholesale fixed income, … Continue Reading

Regulatory framework for haircuts on non-centrally cleared securities financing transactions – FSB extends implementation deadlines

On 7 September 2020, the Financial Stability Board (FSB) issued a press release stating that it has decided to delay by one year the implementation dates for its policy recommendations relating to minimum haircut standards for non-centrally cleared securities financing transactions. In August 2013 the FSB developed policy recommendations to address financial stability risks that … Continue Reading

ESMA provides for the option to apply the annual transparency calculations for non-equity instruments from 21 September

On 7 September 2020, the European Securities and Markets Authority (ESMA) announced that it had decided that trading venues and investment firms may postpone, for operational reasons, the application of the annual transparency calculations for non-equity instruments other than bonds to 21 September 2020 (instead of 15 September 2020). The decision also applies to the … Continue Reading

ESMA confirms Securitisation Regulation requirements entry into force on 23 September 2020

On 4 September 2020, the European Securities and Markets Authority (ESMA) issued a statement confirming that different elements of the new regime under the Securitisation Regulation will come into force on 23 September 2020. The statement follows the publication of seven technical standards implementing the Securitisation Regulation in the Official Journal of the EU. The … Continue Reading

FCA Quarterly Consultation Paper (No.29)

On 4 September 2020, the FCA published Consultation Paper 20/18: Quarterly Consultation Paper No.29 (CP20/18). Chapter 2 of CP20/18 sets out proposed consequential changes to chapter 8 of the Listing Rules to align with provisions for ‘exempted documents’ under the Prospectus Regulation. Chapter 8 of the Listing Rules has retained a reference to the term … Continue Reading

Responses to CP3/20 ‘Occasional Consultation Paper’

On 4 September 2020, the PRA published Policy Statement 20/20: Responses to chapters 2 to 7 of CP3/20 ‘Occasional Consultation Paper’ (PS20/20). In PS20/20 the PRA provides feedback to responses to chapters 2 to 7 of Consultation Paper 3/20 ‘Occasional Consultation Paper’ (CP3/20). It also includes the final rules, updated supervisory statements, forms, relevant templates … Continue Reading

‘Messages from the Engine Room’ 5 Conduct Questions – Industry Feedback for 2019/20 Wholesale Banking Supervision

On 4 September 2020, the FCA issued its 2019/20 report covering engagement work for the 5 Conduct Questions Programme. Due to prioritising COVID-19 work, the FCA is publishing the report later than usual. This latest report reflects the FCA’s widening engagement. It hosted conduct roundtable sessions with 18 wholesale banks, each represented by a group … Continue Reading

The European Commission and Financial Markets Law Committee feed back to European Parliament on AML regulation of virtual currencies

On 2 June 2020 the European Parliament posed questions relating to the registration and monitoring of Virtual Asset Service Providers (VASPs) in Member States as required by the provisions of the 5th EU Anti-Money Laundering Directive (5AMLD). VASPs include virtual currencies, fiat currencies and custodian wallet providers. Responses were received from the Financial Markets Law … Continue Reading

The Institute of International Finance feeds back on the European Commission’s AML/CTF action plan

On 26 August the Institute of International Finance (IIF) provided feedback to the European Commission on its Action Plan for a comprehensive Union policy on preventing money laundering and terrorist financing, published in May 2020. The IIF notes that a more coordinated approach to implement and oversea the EU’s anti-money laundering (AML) and counter terrorism … Continue Reading

COVID-19: FCA consults on additional guidance for mortgage firms

On 26 August 2020, the Financial Conduct Authority (FCA) published a guidance consultation containing additional draft guidance for mortgage firms in light of the COVID-19 pandemic. It sets out the FCA’s expectations in relation to the fair treatment of mortgage borrowers who are experiencing financial difficulty as a result of the pandemic. This guidance is … Continue Reading

Brexit: Where have we got to and what should you do now?

Webinar on 2 September 2020 at 8:45am to 10:00am (BST) 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 … Continue Reading
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