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Topic: Regulation and compliance

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Change to supervising remuneration compliance for Level One firms

On 17 October 2018, the PRA published a Dear Chair of the Remuneration Committee letter. In advance of the annual review of firms’ remuneration policies and practices, the PRA is updating the way in which it supervises compliance within the requirements of the Remuneration Part of the PRA Rulebook. The update affects remuneration proportionality Level … Continue Reading

Increasing the award limit for the FOS

On 16 October 2018, there was published Consultation Paper 18/31: Increasing the award limit for the Financial Ombudsman Service (CP18/31). CP18/31 sets out proposals to increase the award limit for the Financial Ombudsman Service’s (FOS) compulsory jurisdiction (CJ). It states that the proposals will ensure that more complainants receive fair compensation when the FOS upholds … Continue Reading

FCA Mission Document – competition

On 15 October 2018, the FCA published a Mission Document concerning its approach to competition. In this document the FCA discusses its objectives and competition duty. The objective of the FCA is to promote competition in the interests of consumers, not for its own sake. In chapter 1 of the Mission Document the FCA explains … Continue Reading

PRA consults on a draft supervisory statement on banks’ and insurers’ approaches to climate change

On 15 October 2018, the PRA published Consultation Paper 23/18: Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (CP23/18). The PRA’s recent review of the banking and insurance sectors has highlighted significant differences in the level of maturity of firms’ responses to the financial risks from climate change. While firms’ … Continue Reading

FCA discussion paper on climate change and green finance

On 15 October 2018, the FCA published Discussion Paper 18/8: Climate change and green finance (DP18/8). At the beginning of DP18/8 the FCA states that it is widely recognised that the risks from climate change will affect the risks to, and therefore value of, some kinds of investment. Institutional investors are considering climate change-related issues, … Continue Reading

ESMA decisions on MiFID II assessments of third country trading venues

On 11 October 2018, the European Securities and Markets Authority (ESMA) published the following decisions from its board of supervisors: Decision of the Board of Supervisors on delegation to the ESMA chair of the assessment regarding third country trading venues for the purposes of Articles 57(4) of MiFID; and Decisions of the Board of Supervisors … Continue Reading

Regulation of claims management services – transfer to the FCA

On 5 October 2018, there was published on legislation.gov.uk The Financial Guidance and Claims Act 2018 (Commencement No. 4) Regulations 2018 (the Regulations). The Regulations brought into force on 6 October 2018 the following provisions of The Financial Guidance and Claims Act 2018: section 27(1) to (14) (transfer to FCA of regulation of claims management … Continue Reading

ESMA opinions on position limits

On 5 October 2018, the European Securities and Markets Authority (ESMA) published the following opinions on position limits on: Swiss power base contracts. The ESMA opinion is in response to a notification from the Federal Financial Supervisory Authority (BaFin) under Article 57(5) MiFID II regarding the exact position limits the BaFin intends to set for … Continue Reading

AFME guidance on FCA rules relating to analysts’ participation in pitches

On 4 October 2018, the Association for Financial Markets in Europe (AFME) published a guidance note (the Guidance) on financial analysts’ interactions with representatives of private companies and/or their financial advisers under COBS 12.2.21A G (the Rule). The Rule came into force on 1 July 2018. The Rule applies to recital 56 of the MiFID Organisational … Continue Reading

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

On 4 October 2018, the European Securities and Markets Authority (ESMA) published two updated MiFID II and MiFIR Q&As concerning transparency topics, and market structures. The Q&A on transparency topics modifies a question on the default liquidity status of bonds under Article 2(1)(17)(a) of MiFIR, and introduces two new questions on the classification of derivatives … Continue Reading

ESMA withdraws MiFID automated trading guidelines following their incorporation into MiFID II

On 3 October 2018, the European Securities and Markets Authority (ESMA) announced the withdrawal of the MiFID guidelines on systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities. ESMA has decided to withdraw the guidelines on the basis that they have been fully incorporated into MiFID II and … Continue Reading

ESMA speech on the state of implementation of MiFID II

On 3 October 2018, the European Securities and Markets Authority (ESMA) published a speech, The state of implementation of MiFID II and preparing for Brexit, given by its chair, Steven Maijoor. The first half of the speech focuses on MiFID II covering transparency, the double volume cap (DVC), trading obligation derivatives and systematic internalisers (SIs). … Continue Reading

ESMA updates MIFID II Q&As on investor protection

On 3 October 2018, the European Securities and Markets Authority (ESMA) updated its Q&As on investor protection topics under MiFID II and MiFIR. ESMA provides answers to the following new questions which appear on pages 28 and 48 respectively: In some instances, investment firms use the request for quote (RFQ) system of a trading venue … Continue Reading

ECON report on Regulation amending BMR on low carbon benchmarks and positive carbon impact benchmarks

On 2 October 2018, the European Parliaments’ Committee on Economic and Monetary Affairs (ECON) published a draft report (the Report) on the European Commission’s proposal for Regulation of the European Parliament and of the Council amending Regulation (EU) 2016/1011 on low carbon benchmarks and positive carbon impact benchmarks, published on 24 May 2018 (see our … Continue Reading

ESMA opinion on calculating market size of ancillary activity under MiFID II

On 3 October 2018, the European Securities and Markets Authority (ESMA) published an opinion (the Opinion) on ancillary activity – market size calculation. The Opinion comes as a response from Member State national competent authorities (NCAs) and market participants who have asked for guidance for determining the market size figures in line with Article 2(3) … Continue Reading

ESMA updates Q&As for MiFID II and MiFIR commodity derivatives

On 2 October 2018, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFID II and MiFIR commodity derivatives topics. A new Q&A on position limits has been inserted providing an answer to the following question: Do position limits also apply to positions in contracts that have been entered … Continue Reading

ESMA 2019 work programme

On 2 October 2018, the European Securities and Markets Authority (ESMA) published its 2019 Annual Work Programme (the Programme). The Programme sets out the key priorities and objectives for ESMA’s work in the forthcoming year. The four key priorities noted for 2019 are: promoting supervisory convergence: the implementation of MiFID II / MiFIR, Prospectus and … Continue Reading

BoE publishes whistleblowing disclosures report

On 1 October 2018, the Bank of England (BoE) and the PRA jointly published their annual report on The Prescribed Persons (Reports on Disclosures of Information) Regulations 2017 for the period 1 April 2017 to 31 March 2018. The BoE and the PRA are both Prescribed Persons as defined by The Public Interest Disclosure (Prescribed … Continue Reading

Changes to PRA forms

On 1 October 2018, the PRA issued a consultation paper proposing to make changes to notification and application forms in the following parts of its Rulebook: Passporting; Change in control; Insurance special purpose vehicles; and Notifications. The PRA proposes to update the Branch Notification Form and the Cross Border Services Notification Form (the Passporting forms) … Continue Reading

ESMA Decision on binary options product intervention published in OJ

On 1 October 2018, there was published in the Official Journal of the EU (OJ) the European Securities and Markets Authority Decision (EU) 2018/1466 of 21 September 2018 renewing and amending the temporary prohibition in Decision (EU) 2018/795 on the marketing, distribution or sale of binary options to retail clients (the Decision). The decision amends … Continue Reading

ESMA letter to European Commission on MiFID II / MiFIR third-country regimes

On 1 October 2018, the European Securities and Markets Authority (ESMA) wrote to the European Commission in relation to additional issues concerning MiFID II / MiFIR requirements on investor protection and intermediaries. ESMA’s letter follows earlier correspondence with the Commission last year on the MiFID II / MiFIR requirements regarding trading venues. The letter covers: … Continue Reading

ESMA updates Q&As on its temporary product intervention measures

On 28 September 2018, the European Securities and Markets Authority (ESMA) updated its Q&As on temporary product intervention measures on the marketing, distribution or sale of contracts for differences (CFDs) and binary options to retail clients. The updated Q&As provide clarification on the application of the temporary product intervention measures in relation to rolling spot … Continue Reading
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