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Topic: Regulation and compliance

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Are you prepared for the new EU prudential regime impacting investment firms?

Read Jochen Vester’s analysis which features in the latest issue of Citibank’s ‘Global Fiduciary and Trustee Services news and views’. To help our financial services clients navigate the implications of the new prudential regime, we have created an IFR transition hub on the NRF Institute. The hub includes our latest views and analysis on regulatory … Continue Reading

Practical governance: top tips for conference calls/virtual meetings

Many UK boards will be operating on a remote basis in response to the government’s guidance to avoid non-essential social contact and travel with effect from March 16 2020. Listed entities in particular will be facing difficult decisions about the impact COVID-19 is having, or might foreseeably have, on expected performance in a fast evolving … Continue Reading

ESMA extends closing dates for open consultations by four weeks

On 20 March 2020, the European Securities and Markets Authority (ESMA) announced that it was extending the response date for a number of ongoing consultations with a closing date on, or after, 16 March 2020 by four weeks. The consultations include those on the MiFIR report in systematic internalisers and draft technical standards under the … Continue Reading

ESMA clarifies call taping under MiFID II

On 20 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement aimed at clarifying issues regarding the application by firms of the MiFID II requirements on the recording of telephone conversations. In the public statement ESMA: reminds firms that it has issued numerous Q&As to assist firms in the application of … Continue Reading

FCA delays consultation papers and calls for input to 1 October 2020

On 17 March 2020, the FCA announced via a new webpage that it has decided to extend the closure dates for the following published consultation papers and calls for input until 1 October 2020, as part of its response to the COVID-19 outbreak. The delayed consultation papers are: CP20/4: Quarterly consultation 27; CP19/32: Building operational … Continue Reading

Government and regulators respond to House of Commons’ Treasury Committee report on IT failures in the financial services sector

On 13 March 2020, the House of Commons’ Treasury Committee published the Government and UK regulators’ (the PRA, FCA and Bank of England) responses to its reports on IT failures in the financial services sector and on economic crime. The Committee’s report made the following conclusions: the current level of financial services IT failures is … Continue Reading

Open data for SME finance: what we proposed and what we have learnt

On 12 March 2020, the Bank of England (BoE) published an open data for SME finance paper. The paper builds on the BoE’s response to the Future of Finance Report, where the BoE proposed an Open Data Platform to boost access to finance for SMEs. The paper explains that the Open Data Platform would, in … Continue Reading

ECB provides temporary capital and operational relief for banks against Covid-19 impact

On 12 March 2020, the European Central Bank (ECB) announced a number of measures to ensure that its directly supervised banks can continue to fulfil their role in funding the real economy. Key points in the announcement include: the ECB will allow banks to operate temporarily below the level of capital defined by the Pillar … Continue Reading

EBA statement on actions to mitigate the impact of COVID-19 on the EU banking sector

On 12 March 2020, the European Banking Authority (EBA) issued a statement on actions to mitigate the impact of COVID-19 on the EU banking sector. Key points in the statement include: the EBA will postpone the EU-wide stress test exercise to 2021. This is intended to allow banks to focus on and ensure continuity of … Continue Reading

HM Treasury formal response to call for evidence on regulatory co-ordination

On 11 March 2020, HM Treasury published its response to the first phase of the Government’s review into the financial services future regulatory framework. The first phase of the review considered the specific issue of coordination between UK regulatory bodies with responsibility for financial services regulation, with the aim of improving the effectiveness of coordination … Continue Reading

ESMA statement on COVID-19

On 12 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement which makes certain recommendations to market participants as regards the impact of COVID-19. The statement touches on: Business continuity planning; Market disclosure; Financial reporting; and Fund management.… Continue Reading

Getting ready for the IFR / IFD

The way in which investment firms are to be treated for the purposes of prudential regulation is changing. Set to take effect from June 2021, the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD) will make significant alterations to the framework governing investment firms. The new regime will mean higher regulatory capital requirements for … Continue Reading

ESMA consults on MiFIR transparency regime for non-equity instruments

On 10 March 2020, the European Securities and Markets Authority (ESMA) issued a consultation paper reviewing the transparency regime for non-equity instruments and the trading obligation for derivatives under the Market in Financial Instruments Regulation (MiFIR). The first part of the consultation paper focuses on the Level 1 review required under Article 52(1) and (6) … Continue Reading

COVID 19 – suggested checklist of actions for financial services firms to consider

We have produced both a short form and long form checklist of suggested actions that financial services clients may wish to consider as they respond to the COVID-19 outbreak. This is built around the four headline actions outlined in our publication “COVID-19: Regulatory aspects for boards to consider”. It is intentionally not prescriptive or exhaustive, … Continue Reading

ESMA supervision work programme 2020

On 9 March 2020, the European Securities and Markets Authority (ESMA) has published its 2020 Supervision Work Programme, detailing the areas of focus for its supervision of credit rating agencies, trade repositories and the monitoring of third country central clearing counterparties and central securities depositories.… Continue Reading

COVID-19: regulatory aspects for boards to consider

Introduction The COVID-19 outbreak has been declared as a public health emergency of international concern by the World Health Organization, which is causing a significant impact to people’s lives, businesses and the wider economy. Whilst a significant effort is being made globally to contain the virus, crises such as these can unfold unpredictably. Therefore as … Continue Reading

FCA Discussion Paper on driving purposeful cultures

On 5 March 2020, the FCA published Discussion Paper 20/1: Transforming culture in financial services – driving purposeful cultures (DP20/1). In DP20/1 the FCA sets out a collection of essays from industry leaders, professional bodies and culture experts which explore the role of purpose in driving a healthy, sustainable culture. The FCA is not requesting … Continue Reading

ECB letter to significant institutions re contingency preparedness in the context of COVID-19

On 3 March 2020, the European Central Bank (ECB) issued a letter to significant institutions concerning their contingency preparedness in the context of COVID-19. In the letter the ECB makes the point that supervised entities are expected to review their business continuity plans and consider what actions can be taken to enhance preparedness to minimise … Continue Reading

FCA Policy Statement: final rules and feedback on the amendment of the permitted links rules

On 4 March 2020, the FCA published Policy Statement 20/4: Amendment of COBS 21.3 permitted link rules – final rules and feedback to CP18/40 (PS20/4), which amends the permitted links framework that previously applied to insurers providing linked long-term contracts of insurance and impacts those who have an interest in investing in illiquid or higher … Continue Reading

PRA rules on board diversity

On 4 March 2020, the PRA published a letter it had sent to firms concerning its rules on board diversity. In the letter the PRA reminds firms of Supervisory Statement 5/16: Corporate governance: board responsibilities particularly its expectation that boards should have the diversity of experience and capacity to provide effective challenge across the full … Continue Reading

ESMA report on C6 energy derivative contracts under EMIR

On 2 March 2020, the European Securities and Markets Authority (ESMA) issued a report on C6 energy derivatives and related obligations under the European Market Infrastructure Regulation (EMIR). In particular, the report looks into the impact, cost, adequacy and feasibility of C6 energy derivative contracts being made subject to: (i) the clearing obligation set out … Continue Reading