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Topic: Regulation and compliance

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FCA agrees 18-month period for phased implementation of Strong Customer Authentication

On 13 August 2019, the FCA announced an 18 month plan to implement the Single Customer Authentication (SCA) rules under the revised Payment Services Directive (PSD2) for the e-commerce industry of card issuers, payments firms and online retailers. The announcement reflects the recent opinion of the European Banking Authority (our blog is here) which acknowledged … Continue Reading

PRA publishes Policy Statement on regulatory reporting for banks and building societies

On 7 August 2019, the PRA published Policy Statement 16/19: Regulatory reporting: EBA Taxonomy 2.9 (PS16/9). PS16/9 is relevant to UK banks and building societies as well as PRA-designated UK investment firms. It is not relevant to UK branches of firms in other EEA states and non-EEA countries, or to insurance firms. In PS16/9 the … Continue Reading

ESRB Recommendation amending 2015 Recommendation on EU macroprudential policy measures and 2014 Recommendation on CCyB

On 6 August 2019, there was published in the Official Journal of the European Union the Recommendation of the European Systemic Risk Board (ESRB) of 28 June 2019 postponing certain deadlines for the submission of reports prescribed in two ESRB Recommendations: Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential … Continue Reading

EBA feedback on review of single rulebook Q&A tool

On 6 August 2019, the European Banking Authority (EBA) published feedback following an earlier review of its single rulebook Q&As. The scope of the review was limited to Q&As relating to the Capital Requirements Regulation and the Capital Requirements Directive IV, with a focus on policy issues, on which around 625 questions have been answered, … Continue Reading

House of Commons’ Treasury Committee report on the perimeter

On 2 August 2019, the House of Commons’ Treasury Committee (the Committee) published its report on the work of the FCA on the perimeter of regulation (the Report). The Report follows the publication of the FCA’s first annual report on the perimeter earlier this year (see previous blog post) and contains recommendations to HM Treasury … Continue Reading

Commission implementing decisions on CRA Regulation equivalence

On 30 July 2019, there was published in the Official Journal of the EU, European Commission implementing decisions relating to the equivalence of jurisdictions’ legal and supervisory frameworks to the requirements of the Credit Rating Agencies (CRA) Regulation. Commission implementing decisions repealing previous positive equivalence determinations under the CRA Regulation have been published for Argentina; … Continue Reading

Joint statement on transition to PSD2 RTS

On 26 July 2019, representatives of the two European Third Party Providers (TPP) associations and representatives of the three European Credit Sector Associations (ECSAs) and the Financial Data and Technology Association (FDATA) published a joint statement concerning the transition to the new security and communication standards that will be applicable from 14 September 2019 within … Continue Reading

PSR consults on powers and procedures guidance

On 25 July 2019, the Payment Systems Regulator (PSR) published Consultation Paper 19/7 – PSR powers and procedures guidance consultation (CP19/7). The PSR initially published its Powers and Procedures Guidance (PPG) in March 2015 when it became operational. Since then, the powers and functions employed by the PSR have significantly increased. The PPG sets out … Continue Reading

ESMA resources and updated Q&As on Securitisation Regulation

On 18 July 2019, the European Securities and Markets Authority (ESMA) published additional resources to assist market participants to comply with the disclosure requirements under the Securitisation Regulation. In advance of several disclosure-related delegated acts that are due to be adopted by the European Commission ESMA has published a set of reporting instructions, validation rules … Continue Reading

EEA Joint Committee Decisions published in OJ

On 18 July 2019, there was published in the Official Journal of the European Union: Decision 35/2019 of the EEA Joint Committee concerning the incorporation of the equivalence of arrangements of the US Commodity Futures and Trading Commission regime for derivative transactions into the EEA Agreement. The date of entry into force is specified as … Continue Reading

ESMA report on sanctions and measures imposed under MiFID II in 2018

Article 71(4) of MiFID II, requires the European Securities and Markets Authority (ESMA) to publish an annual report regarding information on sanctions and measures imposed under MiFID II in the previous calendar year, as notified by Member State national competent authorities (NCAs). On 17 July 2019, ESMA delivered its latest report collating information submitted by … Continue Reading

ESMA call for evidence on impact of the inducement and costs and charges disclosure requirements under MiFID II

On 17 July 2019, the European Securities and Markets Authority (ESMA) issued a call for evidence on certain investor protection topics included in the European Commission mandate to ESMA on the reports to be submitted by the Commission under Article 90 of MiFID II. Article 90 of MiFID II provides that the Commission shall, after consulting ESMA, … Continue Reading

ESMA consults on MiFID II guidelines regarding compliance functions

On 15 July 2019, the European Securities and Markets Authority (ESMA) published a consultation paper containing draft guidelines on aspects of the compliance functions requirements under MiFID II. The purpose of the draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the expanded compliance function requirements introduced under … Continue Reading

ESMA consults on MiFID II reports on prices for trade data and consolidated tape for equities

On 12 July 2019, the European Securities and Markets Authority (ESMA) issued a public consultation on the development in prices for pre- and post-trade data and on the post-trade consolidated tape (CT) for equity instruments. The consultation covers the review provisions on the development in prices for pre- and post-trade transparency data from regulated markets, … Continue Reading

Cross border distribution of investment funds – legislation published in the OJ

On 12 July 2019, the following legislative acts were published in the Official Journal of the EU (OJ): Directive (EU) 2019/1160 amending the UCITS Directive and the Alternative Investment Fund Managers Directive with regard to the cross-border distribution of collective investment undertakings; and Regulation (EU) 2019/1156 on facilitating cross-border distribution of collective investment undertakings and … Continue Reading

ESMA warns CFDs providers on application of product intervention measures

On 12 July 2019, the European Securities and Markets Authority (ESMA) issued a statement addressed to providers marketing, distributing or selling contracts for differences (CFDs) to retail clients. The statement is in response to various practices and situations observed in the market, which raise concerns of non-compliance with the legal requirements applicable when providing services … Continue Reading

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

On 12 July 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on market structures and transparency issues under MiFID II and MiFIR. The updated Q&As provide clarification on the following topics: the use of pre-arranged transactions for non-equity instruments; the hedging exemption of Article 8 of MiFIR; the treatment of constant maturity … Continue Reading

ESMA Q&As on MiFID II and MiFIR investor protection and intermediaries

On 11 July 2019, the European Securities and Markets Authority updated its Q&As on the implementation of investor protection topics under MIFID II and MiFIR. The new Q&As provide clarification on the following: Best execution – Classification of financial instruments under RTS 27 if ESMA has not published any calibrated market sizes.… Continue Reading

Update of annual equity transparency calculations – application of the tick size regime for third-country shares

On 7 July 2019, the European Securities and Markets Authority (ESMA) published a statement regarding the updated results of the annual equity transparency calculations published on 21 June 2019. ESMA states that it is currently investigating  an issue with the updated calculations which appears to affect the results for shares whose main pool of liquidity … Continue Reading

UK Finance good practice guidelines – access to payment account services

On 4 July 2019, UK Finance published guidelines aimed at both credit institutions providing access to payment account services and applicants seeking access to such an account within the UK. The guidelines are voluntary and are intended to assist the banking industry in implementing the requirements of proportionality, objectivity and non-discrimination set out in Regulation … Continue Reading

Non-bank payment service providers – requirements for safeguarding of customer funds

On 4 July 2019, the FCA published a new web page concerning a multi-firm review it had undertaken with 11 non-bank payment service providers to assess how well they meet the requirements for safeguarding service users’ funds in the Payment Services Regulations 2017 and Electronic Money Regulations 2011. The new web page sets out the … Continue Reading

The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2019

On 2 July 2019, there was published on legislation.gov.uk, The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2019. This Order inserts a new Article 36FA in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO). This introduces a new exclusion from the ambit of Article 36A, which specifies credit … Continue Reading

The Financial Services and Markets Act 2000 (Prospectus) Regulations 2019

On 26 June 2019, there was published on legislation.gov.uk, the Financial Services and Markets Act 2000 (Prospectus) Regulations 2019. These Regulations give effect to the EU Prospectus Regulation by making amendments to the Financial Services and Markets Act 2000. The Regulations amend the Financial Services and Markets Act 2000 to give effect to the requirements … Continue Reading
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