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Topic: Regulation and compliance

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New FCA webpage – Remote or hybrid working expectations for firms

On 11 October 2021, the FCA published a new webpage concerning remote or hybrid working expectations for firms. The expectations on the webpage apply to existing firms, firms applying to be regulated and firms proposing to submit further applications, such as a waiver, variation of permission, change of control etc. In relation to existing firms … Continue Reading

The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2021

On 11 October 2021, there was published on the legislation.gov.uk website The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2021 together with an explanatory memorandum. The Order amends the list of persons in Part 1 of the Schedule to the Financial Services and Markets Act 2000 (Exemption) Order 2001 (the Principal Order) to … Continue Reading

ESMA speech – ESMA as a data driven regulator and supervisor

On 8 October 2021, the European Securities and Markets Authority (ESMA) published a speech by Natasha Cazenave (Executive Director, ESMA) in which she discussed the European Supervisory Authority’s  priorities for 2022 including data. ESMA’s priorities for 2022 include: aiming to respond to challenges faced by the EU, its capital markets, and its investors; supporting three … Continue Reading

FSB letter to G20 Finance Ministers and Central Bank Governors

On 6 October 2021, the Financial Stability Board (FSB) published a letter from its chair to G20 Finance Ministers and Central Bank Governors. The letter focuses on two key areas of the FSB’s work: Developing a more resilient NBFI sector The letter notes that following the market turmoil in March 2020, the FSB agreed on … Continue Reading

Joint Statement on the EU – U.S. Joint Financial Regulatory Forum

On 4 October 2021, there was published the latest joint statement on the EU – U.S. Joint Financial Regulatory Forum (Forum). The joint statement notes that the Forum focussed on six themes: Market developments and current assessment of financial stability risks. Sustainable finance. Multilateral and bilateral engagement in banking and insurance. Regulatory and supervisory cooperation … Continue Reading

ESMA publishes MiFID II/MiFIR review report on algo trading, recommends authorisation of third-country HFT firms

On 28 September 2021, the European Securities and Markets Authority (ESMA) published its final MiFID II/MiFIR review report on algorithmic trading.   The report covers a comprehensive range of topics, including high frequency trading (HFT) and high intraday message rates, Direct Electronic Access (DEA), third-country firms, organisational requirements for investment firms and for trading venues, as … Continue Reading

PRA letter – ‘Thematic feedback from the 2020/2021 round of written auditor reporting’

On 30 September 2021, the PRA published a letter (dated 29 September 2021) which it had sent to the chief financial officers of selected deposit-takers which provides thematic feedback from the regulator’s review of written auditor reports received in 2021. Each year, the FCA receives a written report from its auditors responding to questions on … Continue Reading

ESMA calls for legislative changes to improve access to and use of credit ratings

On 30 September 2021, the European Securities and Markets Authority (ESMA) published an opinion that explains the reasons why users of credit ratings rely on unregulated, fee bearing sources of credit ratings and related information in order to meet their regulatory reporting obligations rather than using the credit ratings disclosed on credit rating agencies (CRAs) … Continue Reading

FSB launches new financial stability surveillance framework

On 30 September 2021, the Financial Stability Board (FSB) published a new Financial Stability Surveillance Framework. The new framework will support the  comprehensive, methodical and disciplined review of vulnerabilities, helping to identify and address new and emerging risks to financial stability. The FSB will regularly communicate its view on vulnerabilities through its annual reports. John … Continue Reading

Commission adopts Delegated Regulation amending notification threshold under the Short Selling Regulation

On 28 September 2021, the European Commission adopted a Delegated Regulation amending the Short Selling Regulation as regards the adjustment of the relevant threshold for the notification of significant net short positions in shares. The objective of the Delegated Regulation is to adjust the relevant threshold for the notification to Member State competent authorities of … Continue Reading

ESMA publishes 2022 Annual Work Programme

On 28 September 2021, the European Securities and Markets Authority published its 2022 Annual Work Programme, setting out its priority areas for the next 12 months. Natasha Cazenave, Executive Director, said: “ESMA faces another year of change and challenge in 2022, with new supervisory powers for benchmarks and data service providers, significant contributions expected to … Continue Reading

ESMA’s priorities for derivatives

On 28 September 2021, the European Securities and Markets Authority published a speech given by Natasha Cazenave (Executive Director, ESMA) at the FIA IDX conference. During the speech Natasha Cazenave shares with the audience ESMA’s priorities around derivatives focussing in particular on the European Supervisory Authority’s recommendations for the review of the MiFID II / … Continue Reading

Productive Finance Working Group publishes recommendations addressing the barriers to investment in less liquid assets

On 27 September 2021, the Productive Finance Working Group (Working Group) published a report, A Roadmap for Increasing Productive Finance Investment. The report contains four recommendations, underpinned by 13 specific actions, with a focus on supporting Defined Contribution (DC) pensions schemes to invest and developing the long-term asset fund (LTAF) structure. The Working Group is … Continue Reading

ESMA consults on proposals for a review of the MiFID II best execution reporting regime

On 24 September 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper setting out proposals for improvements to the MiFID II framework on best execution reports. Article 27 of MiFID II sets out best execution requirements which aim at ensuring that investment firms take all sufficient steps to obtain, when executing client … Continue Reading

A regulatory perspective: measuring and assessing culture, now and in the future, the role of purpose and the importance of D&I

On 24 September 2021, the FCA published a speech by Sheldon Mills (Executive Director, Consumers and Competition, FCA) entitled A regulatory perspective: measuring and assessing culture, now and in the future, the role of purpose and the importance of D&I. Highlights in the speech include: Culture remains central to how the FCA supervises the firms … Continue Reading

ESMA consults on the review of the Short Selling Regulation

On 24 September 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on the review of the Short Selling Regulation (SSR). In the consultation paper ESMA conducts a systematic review of the provisions of the SSR. Among other things ESMA sets out suggestions for operational improvements and policy clarifications on: The calculation … Continue Reading

Seizing opportunity – challenges and priorities for the FCA

On 22 September 2021, the FCA published a speech by its CEO, Nikhil Rathi, entitled Seizing opportunity – challenges and priorities for the FCA. Key points in the speech include: The FCA will be publishing its third annual perimeter report next month, sharing its views on how the regulatory framework might evolve. The FCA will … Continue Reading

The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021

On 22 September 2021, there was published on the legislation.gov.uk website The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021 together with an explanatory memorandum. The purpose of the Regulations is to address deficiencies in the onshored version of MiFIR in relation to the non-discriminatory access regime for exchange-traded derivatives, … Continue Reading

The Capital Requirements Regulation (Amendment) Regulations 2021

On 22 September 2021, there was published on the legislation.gov.uk website The Capital Requirements Regulation (Amendment) Regulations 2021 together with an explanatory memorandum. The Financial Services Act 2021 (FS Act) enables HM Treasury to transfer responsibility for implementing the Basel standards to the PRA, by providing a power for HM Treasury to revoke relevant provisions … Continue Reading

Basel Committee calls for improved cyber resilience, reviews climate-related financial risks and discusses impact of digitalisation

On 20 September 2021, the Basel Committee on Banking Supervision issued a newsletter calling on banks to improve their resilience to cyber threats. In the newsletter the Basel Committee reminds firms and institutions that remote working arrangements and increased provision of financial services using digital channels have enlarged banks’ attack surfaces. The Basel Committee also … Continue Reading

Financial holding companies: Further implementation – PRA PS20/21

On 15 September 2021, the PRA published Policy Statement 20/21 ‘Financial holding companies: Further implementation’ (PS20/21). In PS20/21 the PRA provides feedback on Consultation Paper 12/21 ‘Financial holding companies: Further implementation’ (CP12/21) and sets out final rules. It also contains: New Statement of Policy ‘Supervisory measures and penalties in relation to financial holding companies’. Updated … Continue Reading

PRA Dear CEO letter ‘Thematic findings on the reliability of regulatory reporting’

On 10 September 2021, the PRA published a Dear CEO letter ‘Thematic findings on the reliability of regulatory reporting’. The Dear CEO letter follows a letter that the PRA sent in October 2019 reiterating its expectation that all banks and building societies submit complete, timely and accurate regulatory returns. Since its letter in October 2019 … Continue Reading

PRA / FCA Dear CEO letter – trade finance activity

On 9 September 2021, the PRA and FCA co-published a Dear CEO letter on trade finance activity. The Dear CEO letter reports that during the past 18 months there have been several high-profile failures of commodity and trade finance firms with significant financial loss. The PRA and FCA (together the regulators) remind firms that they … Continue Reading
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