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Topic: Regulation and compliance

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FCA Market Watch 59

On 17 April 2019, the FCA published the latest issue of Market Watch (no. 59), its newsletter on market conduct and transaction reporting issues. This issue of Market Watch covers: transaction reporting observations from the FCA. The FCA discusses some of the issues its Markets Reporting Team have found regarding the accuracy and completeness of … Continue Reading

Regulated fees and levies: rates for 2019/20

On 15 April 2019, the PRA published Consultation Paper 9/19: Regulated fees and levies: rates proposals 2019/20 (CP9/19). In CP9/19 the PRA sets out proposals for its fees and levies for 2019/20.  The proposals would make amendments to the Fees Part of the PRA Rulebook, and Supervisory Statement 3/16: Fees: PRA approach and application. The … Continue Reading

FCA Dear CEO letter setting out expectations as regards financial promotions

On 11 April 2019, the FCA published a Dear CEO letter reminding firms involved in the approval of financial promotions for unauthorised persons of their obligations when doing so. The Dear CEO letter follows a Dear CEO letter published earlier this year to all regulated firms reminding them of their responsibilities relating to the use … Continue Reading

Updated ESMA Questions and Answers on the Transparency Directive

On 11 April 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Transparency Directive (TD). The updated Q&As modify question 26 which deals with the situation where the UK leaves the EU without a Withdrawal Agreement and concerns a third country issuer and their disclosure of a … Continue Reading

Updated ESMA Questions and Answers on the Prospectus Regulation

On 11 April 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Prospectus Regulation. The updated Q&As amend question 103 which has been modified in the event the UK withdraws from the EU without a Withdrawal Agreement and concerns the position where third country issuers have chosen … Continue Reading

ESMA updates MiFIR data reporting Q&As

On 9 April 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFIR data reporting. The updated Q&As insert a new question within section 19 – defined list of instruments. The new question asks: How should operators of trading venue(s) report instrument reference data in accordance with Article … Continue Reading

Revised MoU between FCA and ASA

On 4 April 2019, the FCA published a revised memorandum of understanding (MoU) between itself and the Advertising Standards Authority (ASA). The purpose of the MoU is to facilitate and provide a framework for co-operation between the FCA and ASA by setting out the respective regulatory responsibilities of the FCA and ASA and a framework … Continue Reading

ECB update on TRIM

On 5 April 2019, the European Central Bank (ECB) published a note providing an interim update (dated 3 April 2019) on the targeted review of internal models (TRIM). The purpose of the note is to provide an overview of the TRIM project and to share aggregated information on its outcomes. The note complements the information … Continue Reading

ESMA publishes MiFID II supervisory briefing on appropriateness and execution-only

On 4 April 2019, the European Securities and Markets Authority published an updated version of its supervisory briefing on MiFID II appropriateness requirements. The new version of the supervisory briefing takes into account the new version of ESMA’s guidelines on suitability published last year with respect to aspects also relevant to the appropriateness rules. The … Continue Reading

The Financial Services and markets (Insolvency) (Amendment of Miscellaneous Enactments) Regulations 2019

On 1 April 2019, the Financial Services and markets (Insolvency) (Amendment of Miscellaneous Enactments) Regulations 2019 were made and published on legislation.gov.uk together with an explanatory memorandum. The Regulations come into force on 23 April 2019. The Regulations make consequential amendments to various financial services instruments in consequence of: in England and Wales, the revocation … Continue Reading

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

On 2 April 2019, the European Securities and Markets Authority (ESMA) updated its Q&As regarding market structures and transparency issues under MiFID II and MiFIR. New Q&As have been added to provide clarification on: determination of the turnover to be used for the average value of transactions calculation; money market instruments; impact for systematic internalisers … Continue Reading

ESMA opinion on the product intervention measures relating to binary options proposed by the FCA

On 2 April 2019, the European Securities and Markets Authority (ESMA) published an opinion on the product intervention measure relating to binary options proposed by the FCA. Our blog on the FCA ban on the sale of binary options to retail clients can be found here. National competent authorities (NCAs) may take product intervention measures … Continue Reading

Commission Implementing Decision recognising certain Singapore derivatives trading venues under MiFIR

On 2 April 2019, there was published in the Official Journal of the EU, Commission Implementing Decision (EU) 2019/541 of 1 April 2019 on the equivalence of the legal and supervisory framework applicable to approved exchanges and recognised market operators in Singapore under MiFIR. The Commission Implementing Decision provides that for the purposes of Article … Continue Reading

ESMA guidelines on risk factors under Prospectus Regulation

On 29 March 2019, the European Securities and Markets Authority (ESMA) published its final guidelines on how national competent authorities (NCAs) should review risk factors, as required by the Prospectus Regulation. ESMA published a Consultation Paper in July 2018, containing draft guidelines on risk factors which NCAs should incorporate as part of their review practices when scrutinising … Continue Reading

ESMA final report on technical advice on minimum information content for prospectus exemption

On 29 March 2019, the European Securities and Markets Authority (ESMA) published its technical advice on the minimum information content of documents describing a takeover, merger or division. Under the Prospectus Regulation, issuers may offer / admit securities in connection with takeovers, mergers or divisions without publishing a prospectus, provided that a document is made available to investors … Continue Reading

FCA Policy Statement on applying the SM&CR to claims management companies

On 29 March 2019, the FCA published Policy Statement 19/9: Applying the Senior Managers and Certification Regime to Claims Management Companies (PS19/9). In PS19/9 the FCA sets out how it will apply the Senior Managers and Certification Regime (SM&CR) to claims management companies (CMCs) and their staff. The new regime will start to apply to … Continue Reading

FICC Markets Standards Board statements of good practice

On 28 March 2019, the FICC Markets Standards Board (FMSB) published a statement of good practice for FICC market participants in relation to conduct risk in market transactions. Eight good practice statements are included in Section V of the document, which include: firms should have a taxonomy for the identification and assessment of common conduct … Continue Reading

Updated ESMA MiFID II Q&As on investor protection and intermediaries topics

On 28 March 2019, the European Securities and Markets Authority (ESMA) published updated Q&As on MiFID II and MiFIR investor protection and intermediaries topics. A number of new Q&As have been introduced, together with a number of modified Q&As. New Q&As introduced by the update address: the RTS 27 reporting requirements for market makers and … Continue Reading

HM Treasury update on the progress of proposed Regulation on disclosures relating to sustainable investments and sustainability risks

On 27 March 2019, HM Treasury published a letter from Economic Secretary, John Glen MP, to the Chair of the House of Lords European Union Committee. The letter provides an update on the progress of the EU Regulation on disclosures relating to sustainable investments and sustainability risks (the Regulation). Trilogues began on the Regulation in … Continue Reading

ESMA renews restriction on CFDs for further three months from May

On 27 March 2019, the European Securities and Markets Authority (ESMA) announced that it was renewing its restrictions on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients from 1 May 2019 (following the publication of the restriction in the Official Journal of the EU), for a further 3-month period. The … Continue Reading

New ESMA Q&As on the Prospectus Regulation

On 27 March 2019, the European Securities and Markets Authority (ESMA) published new Q&As on the Prospectus Regulation. The Q&As provide clarification on the following issues in relation to the Prospectus Regulation: the scope of the grandfathering of prospectuses approved under the national laws of Member States implementing the Prospectus Directive; the applicability of the … Continue Reading

ESMA updates MiFID II and MiFIR commodity derivatives Q&As

On 27 March 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFID II and MiFIR commodity derivatives topics. Importantly, the Q&A’s include one updated question on ancillary activity, regarding when a firm that wants to make use of the ancillary activity exemption needs to notify its competent … Continue Reading

SFTR related Delegated Regulations published in OJ

On 22 March 2019, the following were published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2019/356 of 13 December 2018 supplementing the SFTR with regard to regulatory technical standards (RTS) specifying the details of securities financing transactions (SFTs) to be reported to trade repositories; Commission Delegated Regulation (EU) 2019/357 of … Continue Reading

ESRB Recommendation on EU macro-prudential policy framework published in OJ alongside MiFID II Delegated Regulations

On 20 March 2019, there was published in the Official Journal of the EU (OJ): Recommendation of the European Systemic Risk Board of 15 January 2019 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macro-prudential policy measures. This Recommendation amends Recommendation ESRB/2015/2 by recommending that relevant authorities reciprocate certain … Continue Reading
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