The FCA’s discussion paper DP23/2, which is open for comment until 22 May 2023, sets out a range of proposals to reform the UK regulatory regime for asset managers and funds. The DP follows the government’s conclusion in December 2022 of its Future Regulatory Framework review and is intended to help the FCA decide how … Continue Reading
On 21 March 2023, the European Securities and Markets Authority (ESMA) published a speech, given by Verena Ross, entitled ‘The macro-prudential supervision of investment funds – from a global debate to a balanced European regulatory frameworks’. In particular, Ms Ross discusses how remaining vulnerabilities of open-ended funds (OEFs) are being kept under scrutiny at global … Continue Reading
On 21 March 2022, the European Banking Authority (EBA) published a Consultation Paper (CP) on draft Implementing Technical Standards (ITS) amending Regulation (EU) 2021/453 with regard to the specific reporting requirements for market risk. As the full implementation of the Fundamental Review of the Trading Book (FRTB) in the EU approaches, and with the aim … Continue Reading
On 21 March 2023, the FCA published an update on its operating service metrics for authorisations timelines. Using a ‘Red/Amber/Green’ (RAG) rating system, the update notes that, for 2021/22, there were 8 green metrics, 5 amber and 6 red. In January/February 2023, 12 were green, 5 amber and 2 red. The FCA expects to see … Continue Reading
On 20 March 2023, the FCA updated its webpage on notification and disclosure of net short positions. The webpage has been updated to provide the following updates:… Continue Reading
On 10 March 2023, the FCA published its findings from a fast-growing firms (FGFs) multi-firm review. For its review, the FCA selected a sample of 25 firms that had experienced fast growth. The firms were CFD providers, wealth managers or payment services firms. The firms had undergone significant growth over a 3-year period (2018 – … Continue Reading
On 9 March 2023, HM Treasury published a Policy Paper: Terms of reference – Investment Research Review. The independent review, which was first announced as part of the government’s Edinburgh Reforms, will look at financial services investment research and its contribution to UK capital markets competitiveness. Through the review, the UK is seeking to identify … Continue Reading
On 7 March 2023, the Bank of England (BoE) published a letter from Mel Beaman to CFOs of the major UK banks, on firms’ preparations for the second Resolvability Assessment Framework (RAF) assessment. The letter provides information, ahead of the second RAF assessment, to support firms with their planning and ongoing work to maintain and … Continue Reading
On 3 March 2023, the FCA published Consultation Paper CP23/6: Quarterly Consultation No 39 (CP23/6). In CP23/6 the FCA proposes additional guidance for completing the Annual Claims Management Report form (CMC001) and minor amendments to the numbering of the fields in the form. Introduction In July 2022, new rules came into force prohibiting claims management … Continue Reading
On 3 March 2023, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2023/450 of 25 November 2022 supplementing the Central Counterparty Recovery and Resolution Regulation with regard to regulatory technical standards specifying the order in which CCPs are to pay the recompense referred to in Article 20(1) … Continue Reading
On 2 March 2023, the FCA published the Findings Report for its Trade Data Review. The review The FCA launched the review last year in order to look further at concerns highlighted in the FCA’s call for input on accessing and using wholesale data. These included concerns that a low level of competition was leading … Continue Reading
On 1 March 2023, HM Treasury published a draft statutory instrument: The Financial Services and Markets Act 2000 (Commodity Derivatives and Emission Allowances ) Order 2023. The purpose of this instrument is to streamline the process for determining when a firm trading commodity derivatives or emission allowances needs to be authorised as an investment firm, … Continue Reading
On 3 February 2023, the FCA published a portfolio letter addressed to CEOs of asset management firms, setting out its supervisory strategy for the sector. In the letter, the FCA outlines the harms to consumers or markets that it believes are most likely to arise from asset managers’ business models and explains how it intends … Continue Reading
On 1 March 2023, the European Parliament announced that MEPs had voted for changes to MiFID II and MiFIR. Among other things the changes cover data quality standards and investor protection, changes regarding market data consolidation and transparency as well as provisions on payment for order flow. The press release notes that:… Continue Reading
On 1 March 2023, the European Agency for the Cooperation of Energy Regulators (ACER) published an Effects Assessment Report on the Market Correction Mechanism (MCM). ACER and the European Securities and Markets Authority (ESMA) were tasked with publishing two preliminary reports, concerning the adoption of the MCM and focussing on the developments in the financial … Continue Reading
On 24 February 2023, the Bank of England (BoE) and the FCA jointly published Policy Statement 23/2 Changes to reporting requirements, procedures for data quality and registration of Trade Repositories under UK EMIR – feedback on CP21/31 and final rules and guidance (PS23/2). Previous consultation In November 2021, the FCA and the BoE jointly published … Continue Reading
On 23 February 2023, there was published in the Official Journal of the European Union (OJ) Decision of the EEA Joint Committee No 43/2020 of 20 March 2020 amending Annex IX (Financial Services) to the EEA Agreement [2023 /357]. This decision inserts into Annex IX Commission Implementing Decision (EU) 2019/2211 of 19 December 2019 amending … Continue Reading
In February 2022 it was confirmed that a new UK offence of failure to prevent fraud will be progressed as a priority, following the UK Law Commission report on corporate criminal liability in 2022. The UK Government is planning to introduce the offence as an amendment to its Economic Crime and Corporate Transparency Bill. The proposed … Continue Reading
On 13 February 2023, there was published in the Official Journal of the EU (OJ), Delegated Regulations extending the cross-border intragroup transactions derogations from margin requirements and from clearing requirements respectively: Both Delegated Regulations enter into force on the day following that of their publication in the OJ.… Continue Reading
On 8 February 2023, the European Banking Authority (EBA) published a consultation paper on draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) No 650/2014 laying down ITS with regard to the format, structure, contents list and annual publication date of the information to be disclosed by competent authorities in accordance with the Capital … Continue Reading
On 8 February 2023, the Bank of England (BoE) published its policy on outsourcing and third party risk management for Financial Market Infrastructures (FMIs). The finalisation of this policy follows the BoE’s consultation in 2022. The aims of the policy are to facilitate greater resilience and adoption of cloud and other technologies, set out the … Continue Reading
On 3 February 2023, the European Securities and Markets Authority (ESMA) updated its Questions and Answers (Q&As) on the implementation of Regulation (EU) 2022/858 on a pilot regime for market infrastructures based on distributed ledger technology (DLT). The Q&As have been updated to include the following topics:… Continue Reading
On 3 February 2023, the FCA published financial promotions data for 2022. Key messages from the FCA are: Sarah Pritchard, Executive Director, Markets said: ‘Our expectations remain the same. Financial promotions must be fair, clear and not misleading. What has changed is the FCA’s approach. By drawing on better technology, we’re finding poor quality or … Continue Reading
On 2 February 2023, the European Securities and Markets Authority (ESMA) published its long-awaited Opinion on the Trading Venue Perimeter. Publication of the opinion follows a public consultation that ESMA held early last year, and stems from ESMA’s commitment to provide guidance on the definition of multilateral systems and, specifically, when systems should be considered … Continue Reading
