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Topic: Regulation and compliance

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Government response to consultation on limited partnership law reforms

On 10 December 2018, the Department for Business, Energy & Industrial Strategy (BEIS) published the Government’s response to the consultation of reforms to limited partnership law. The BEIS published a consultation on 30 April 2018 on reforms to limited partnership law. The consultation document set out a range of proposals to achieve this, including stronger … Continue Reading

FCA policy development update

On 7 December 2018, the FCA updated its policy development webpage with details of recent publications it has issued, as well as upcoming publications. Upcoming publications by the FCA include: a policy statement on general standards and communication rules for the payment services and e-money sectors; a policy statement on the FCA’s approach to final … Continue Reading

Commission launches evaluation of Distance Marketing Directive

On 7 December 2018, the European Commission published an evaluation roadmap for the Distance Marketing of Financial Services Directive. The evaluation will assess whether the Directive’s original objectives have been achieved, how the Directive is functioning from a cost-benefits and burden reduction perspective and how the Directive works together with other legislation in the field … Continue Reading

BoE speech on buy-side adoption of the FX Global Code

On 6 December 2018, the Bank of England (BoE) published a speech by Andrew Hauser, Executive Director, Markets, on why the buy-side should adopt the FX Global Code (the Global Code). The speech includes a Q&A addressing the key uncertainties the buy-side has expressed with the Global Code. The speech also includes the following points: … Continue Reading

PRA Policy Statement on regulatory reporting

On 5 December 2018, the PRA published Policy Statement 30/18: Regulatory Reporting: responses to CP16/18 (PS30/18). In CP16/18, the PRA proposed changes to PRA reporting requirements including: discontinuation of Prudent Valuation Return PV001; changes to PRA reporting instructions to align with updated European Banking Authority (EBA) requirements (RFB001, PRA110, and PRA101 – PRA103); and amendments … Continue Reading

EBA Guidelines on exemption requirements for ASPSPs

On 4 December 2018, the European Banking Authority (EBA) published final guidelines that specify the conditions, set out in Article 33(6) of Commission Delegated Regulation (EU) 2018/389, to exempt account payment service providers (ASPSPs) that have opted for a dedicated interface from the obligation to set up the contingency mechanism described in Article 33(4) of … Continue Reading

ESMA reports on annual market share of CRAs

On 3 December 2018, the European Securities and Markets Authority (ESMA) has published its annual market share calculation for EU registered credit rating agencies (CRAs). The purpose of the report is to provide guidance on Article 8d of the Regulation on CRAs which provides that issuers or related third parties are required to consider appointing … Continue Reading

Commission Delegated Regulation with regard to RTS on development, operation and maintenance of the electronic register

On 30 November 2018, the European Commission published a Delegated Regulation supplementing the PSD2 with regard to RTS setting out technical requirements on development, operation and maintenance of the electronic central register within the field of payment services and on access to the information contained therein. The Commission is empowered to adopt such a Delegated … Continue Reading

Updated FCA approach to authorisation

On 28 November 2018, the FCA published a report, FCA Mission: Approach to Authorisation (the Report).  The FCA published a consultation on ‘our approach to authorisation’ in December 2017, and consequently the Report reflects those changes based on feedback to the consultation. The FCA notes in Annex 1 of the Report that the following amendments … Continue Reading

Commission communication to accelerate work on completing CMU

On 28 November 2018, the European Commission published a communication (the Communication) regarding progress on the Capital Markets Union (CMU). The Communication notes that thus far, only three out of thirteen tabled legislative proposals to form the framework of the CMU have been agreed between the European Parliament and the European Council (the Prospectus Regulation, … Continue Reading

ECB speech on central banks and climate change

On 28 November 2018, the European Central Bank (ECB) published a speech by Yves Mersch, Member of the Executive Board of the ECB, on climate change and central banking. Mr Mersch notes that climate change poses the risk of considerable social costs and economic disruption. The challenges of climate change are social issues. Mr Mersch … Continue Reading

Single Market: Commission adopts three communications

On 22 November 2018, the European Commission adopted the following communications: The Single Market in a changing world – a unique asset in need of renewed political commitment. The communication highlights three areas of focus upon which action is required to deepen and strengthen the Single Market: (i) swiftly adopt proposals on the table. The … Continue Reading

FSB publishes recommendations on compensation data reporting to address misconduct risk

On 23 November 2018, the Financial Stability Board (FSB) published its finalised Recommendations for national supervisors: Reporting on the use of compensation tools to address potential misconduct risks. The Recommendations are directed at national supervisory authorities and set out the types of data that can support improved monitoring on the use of compensation tools to … Continue Reading

ECB speech on progress of SSM

On 22 November 2018, the European Central Bank (ECB) published a speech by Ignazio Angeloni, a member of the ECB Supervisory Board, on the Single Supervisory Mechanism (SSM). The speech is centred on the SSM’s strategic objectives and key points to note include: restoring confidence in the banking sector: bank capital has grown between 2014 … Continue Reading

ECON report on proposed regulation on a sustainable investment framework

On 24 May 2018, the European Commission released a set of legislative proposals on financing sustainable growth. Among these legislation proposals was a draft Regulation on the establishment of a framework to facilitate sustainable investment. On 21 November 2018, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published a draft report (dated 16 … Continue Reading

FSB final report on the impact of financial regulatory reforms on infrastructure finance

On 20 November 2018, the Financial Stability Board (FSB) published a report evaluating the effects of financial regulatory reforms on infrastructure finance (the Report). The evaluation was carried out under the FSB framework for the post-implementation evaluation of the effects of the G20 financial regulatory reforms. It is part of a broader evaluation of the … Continue Reading

FCA regulation round up warns motor finance firms to comply with CONC 3

On 15 November 2018, the FCA published its November regulation round up – providing an update on the latest developments in the financial services sector. In the update, topics raised by the FCA to note include: the FCA has published, and is following up on, its Cryptoassets Taskforce report; in Q1 2019, the FCA will … Continue Reading

FCA consults on fees and levies for 2019/20

On 15 November 2018, the FCA published Consultation Paper 18/34: Regulatory fees and levies: policy proposals for 2019/20 (CP18/24). CP18/24 sets out the FCA’s proposed policy changes to the way that it will raise fees from 2019/20 – and applies to all FCA fee payers, credit rating agencies and trade repositories. These latter firms are … Continue Reading

Updated PRA remuneration policy template and table

On 15 November 2018, the PRA updated its strengthening accountability webpage to inform firms that the language within the Level 1 RPS template and data tables had been updated. These are available under the ‘Self-assessment templates and tables’ area of the strengthening accountability webpage. The changes were made in line with the PRA’s recent Letter … Continue Reading

1LoD Summit – Reflections and key takeaways

On 15 November 2018, Norton Rose Fulbright co-sponsored the 1LoD Summit at The Dorchester hotel in London. The conference brought together over 250 senior members of the financial services community, with panels focussed on key areas such as governance, controls testing, surveillance and culture. A lot of time was spent discussing opportunities for improving the … Continue Reading

FSB seventh report on implementation of resolution reforms

On 15 November 2018, the Financial Stability Board (FSB) published its seventh progress report on the implementation of resolution reforms (the Report). The Report provides an overview of the progress in implementing the FSB’s resolution policies in the banking (Section I) and insurance (Section II) sectors and for CCPs (Section III). Section IV sets out … Continue Reading

BoE Dear Compliance Officer letter

On 15 November 2018, the Bank of England (BoE) published a letter to compliance officers to make firms aware of the upcoming obligation on report settlement internalisation, which will come into effect in July 2019 under Article 9 of the EU Central Securities Depositories Regulation (CSDR). The reporting requirement covers data, which is to be … Continue Reading

EMMI second consultation on hybrid methodology for Euribor

On 15 November 2018, the European Money Markets Institute (EMMI) published their second consultation paper on a hybrid methodology for Euribor (the Consultation). The Consultation is part of EMMI’s commitment to deliver a reformed and robust methodology for Euribor, which aims to meet regulatory and stakeholder expectations in a timely manner. In March 2018, EMMI … Continue Reading

Updated MiFID II Q&As on transparency and market structures

On 14 November 2018, the European Securities and Markets Authority (ESMA) published two updated Q&As on: MiFID II and MiFIR market structures topics; and MiFID II and MiFIR transparency topics. The updated Q&As on market structures topics insert a new question concerning direct electronic access and algorithmic trading. The new question enquires as to whether … Continue Reading
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