United Kingdom

Topic: Regulation and compliance

Subscribe to Regulation and compliance RSS feed

Commission adopts Delegated Regulation amending MiFID II tick size regime

On 13 February 2019, the European Commission adopted a Delegated Regulation amending Regulatory Technical Standard (RTS) 11 as regards the possibility to adjust the average daily number of transactions for a share where the trading venue with the highest turnover of that share is located outside the EU. Article 49(3) of MiFID II requires the … Continue Reading

PRA Policy Statement on changes to periodic and transaction fees for designated investment firms and insurers

On 13 February 2019, the PRA published Policy Statement 3/19: PRA fees and levies – changes to periodic and transaction fees (PS3/19). In PS3/19 the PRA provides feedback to the responses to Consultation Paper 28/18: PRA fees and levies: Changes to periodic and transaction fees (CP28/18). It also sets out the PRA’s final policy on: … Continue Reading

FCA modification to compliance reporting in SUP

On 12 February 2019, the FCA published a direction relating to a modification by consent of a rule (16.23A.6R(1)) in the Supervision manual (SUP) for employers’ liability register compliance reporting. This modification allows a firm to appoint the Employer’s Liability Trading Office (ELTO) , instead of an auditor, to prepare a report satisfying the requirements of … Continue Reading

FCA guidance notes: Primary Market Bulletin No 20

On 8 February 2019, the FCA published the 20th edition of Primary Market Bulletin (the PMB). The PMB provides general news and developments within the FCA’s regulatory sphere, as well as changes the FCA has, or is going to make, to its Knowledge Base. The Knowledge Base is the FCA’s source of technical guidance on … Continue Reading

Council of EU invited to agree on general approach for ESFS reforms

On 8 February 2019, the Presidency of the Council of the EU published a note concerning the general approach to the review of the European System of Financial Supervision (ESFS). The note mentions that the latest compromise proposal for a negotiating mandate on the European Supervisory Authorities framework, MiFID II and Solvency II, and the … Continue Reading

ESMA 2019 risk assessment work programme

On 7 February 2019, the European Securities and Markets Authority (ESMA) published its risk assessment work programme for 2019. The work programme provides an overview of ESMA’s analytical, research, data and statistical activities for 2019. The headlights from the work programme are: as data collected under the Alternative Investment Fund Managers Directive, the Markets in … Continue Reading

Banking leaders share their insights on adopting the SM&CR

On 7 February 2019, the FCA published a new video on its website in which senior leaders from four financial services firms talk about their experiences of adopting the Senior Managers and Certification Regime. Our SMCR toolkit is a subscription service providing access to all of the key documents that firms need to implement the … Continue Reading

ESMA sets out 2019 priorities for supervisory convergence

On 6 February 2019, the European Securities and Markets Authority (ESMA) published its 2019 supervisory convergence work programme, which sets out ESMAs work streams to promote consistent supervision across the EU. For 2019, the following priorities for supervisory convergence were identified: ensuring supervisory convergence in the context of the UK’s decision to withdraw from the … Continue Reading

ESMA publishes supervisory briefing on the supervision of non-EU branches of EU firms

On 6 February 2019, the European Securities and Markets Authority (ESMA) published a MiFID II supervisory briefing on the supervision of non-EU branches of EU firms providing investment services and activities. The supervisory briefing is aimed at Member State competent authorities and also gives market participants indications of compliant implementation of the MiFID II provisions … Continue Reading

Call for advice to ESAs to collect evidence of undue short-term pressure from the financial sector on corporations

On 6 February 2019, the European Commission issued a call for advice to each of the European Supervisory Authorities (ESAs) to develop a report presenting evidence and possible advice on potential undue short-term pressure on corporations. The ESAs are asked to investigate potential sources of such pressure on corporates stemming from the financial sector. If … Continue Reading

ESMA report on guidelines on submission of periodic information by CRAs

On 5 February 2019, the European Securities and Markets Authority (ESMA) published a final report on the second edition of its guidelines on the submission of periodic information to it by credit rating agencies (CRAs). The purpose of the revision is to more clearly structure and specify the information that ESMA needs to receive from … Continue Reading

Public statement on the use of UK data in ESMA databases and performance of MiFID II calculations in case of a no-deal Brexit

On 5 February 2019, the European Securities and Markets Authority (ESMA) issued a statement in relation to the impact on its databases of a no-deal Brexit.  The statement informs stakeholders on ESMA’s approach to all ESMA IT applications and databases in case of a no-deal scenario and focuses in particular on the MiFID II / … Continue Reading

FSB Global Monitoring Report on Non-Bank Financial Intermediation

On 4 February 2019, the Financial Stability Board (FSB) published the Global Monitoring Report in Non-Bank Financial Intermediation 2018. The report sets out the results of the FSB’s most recent annual monitoring exercise that assesses global trends and risks from non-bank financial intermediation. It covers data up to end-2017 from 29 jurisdictions, which together represent … Continue Reading

ESMA updates Q&As on MiFIR data reporting

On 4 February 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFID data reporting. The updated Q&As insert the following: a new question concerning the legal entity identifier asking: “How should operators of trading venue(s) and systematic internaliser(s) populate field 5 (issuer or operator of the trading … Continue Reading

ESMA 2019 regulatory work programme

On 4 February 2019, the European Securities and Markets Authority (ESMA) published its regulatory work programme (RWP) for 2019. The RWP lists all the technical standards and technical advice that ESMA has been mandated to draft over the coming year, and these are set out under the appropriate legislation. Work for the coming year includes: … Continue Reading

European Commission adopts proposals for Council decisions incorporating Directives into EEA Agreement

On 4 February 2019, the European Commission adopted a number of proposals for decisions of the Council of the EU regarding the incorporation of certain financial services Directives into the EEA Agreement. The proposed decisions adopted are: Proposal for a Council decision on the position to be adopted, on behalf of EU, within the EEA … Continue Reading

FCA Policy Development update

On 1 February 2019, the FCA published an updated version of its policy development website. The website notes recently published FCA publications, as well as upcoming publications. Notable upcoming publications include a: policy statement on general standards and communication rules for the payment services and e-money sectors; policy statement on the FCAs approach to final … Continue Reading

Updated ESMA Q&As on MiFID II and MiFIR market structures topics

On 1 February 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on market structures and transparency issues under MIFID II and MiFIR. The new Q&As provide clarification on the following: Approved Publication Arrangement reports to competent authorities and ESMA; and Identification of high frequency trading techniques.… Continue Reading

PRA and FCA consult on FSCS MELL for 2019/20

On 31 January 2019, the PRA and FCA jointly published Consultation Paper 19/9 (CP19/9) on the 2019/20 management expenses levy limit (MELL) for the financial services compensation scheme (FSCS). Under Section 223(1) of the Financial Services and Markets Act 2000, the FCA and the PRA must set an annual limit for the total management expenses … Continue Reading

Updated ESMA Q&As on the Transparency Directive

On 31 January 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Transparency Directive. The Q&As inset a new question 26, asking, in the case that the UK withdraws from the EU without a withdrawal agreement, under the Transparency Directive which obligations does an issuer which currently … Continue Reading

Updated ESMA MiFID II Q&As on MiFID II and MiFIR transparency topics

On 31 January 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFID II and MiFIR transparency topics. The updated Q&As modifies ESMA’s response to question 1 of its section on the systematic internaliser regime. The question asks: “By when will ESMA publish information about the total number … Continue Reading

FCA consults on improving shareholder engagement

On 30 January 2019, the FCA published Consultation Paper 19/7 (CP19/7) on proposals to improve shareholder engagement. CP19/7 sets out how parts of the revised Shareholder Rights Directive (SRD II) will be implemented in the UK. SRD II aims to promote effective stewardship and long-term investment decision making. CP19/7 relates to the implementation of those … Continue Reading
LexBlog