United Kingdom

Topic: Regulation and compliance

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PRA consults on outsourcing and third party risk management

On 5 December 2019, the PRA published Consultation Paper: Outsourcing and third party risk management (CP30/19). In CP30/19 the PRA sets out its proposals for modernising the regulatory framework on outsourcing and third-party risk management. The PRA’s proposals pursue the following objectives: complement the policy proposals on operational resilience in Consultation Paper: Operational resilience: impact tolerances … Continue Reading

UK Authorities’ consultation on operational resilience in the financial services sector

On 5 December 2019, the FCA, PRA and Bank of England (together the regulators) published joint consultation papers on operational resilience in the financial services sector. The proposals develop and expand on the ideas set out in the regulators discussion paper in 2018 (see previous blog here). The proposals set requirements and expectations for firms … Continue Reading

GFXC agrees priorities for updating the FX Global Code

On 4 December 2019, the Global Foreign Exchange Committee (GFXC) published a press release setting out its priorities for updating the FX Global Code (the Code). Following the first day of its two-day meeting held in Sydney on 4-5 December, the GFXC discussed the feedback received on the Code and agreed to focus its work … Continue Reading

FMSB statement of good practice for participation in sovereign and supranational auctions in fixed income markets

On 2 December 2019, the FICC Markets Standards Board (FMSB) issued a transparency draft of a new statement of good practice for participation in sovereign and supranational auctions (SSAs) in fixed income markets. The draft statement is the tenth statement of good practice that the FMSB has published since it was set up in 2015 … Continue Reading

ESMA guidance on registering securitisation repositories

On 2 December 2019, the European Securities and Markets Authority (ESMA) published guidance on registering securitisation repositories. ESMA has direct responsibilities regarding the registration and supervision of securitisation repositories under the Securitisation Regulation laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation. The purpose of the … Continue Reading

Council adopts ESFS reforms

On 2 December 2019, the Council of the EU meeting in its configuration as the Justice and Home Affairs Council adopted the legislative texts reforming the European System of Financial Supervision (ESFS). The legislative texts comprise: Omnibus Regulation (PE-CONS 75/19) (Regulation concerning the powers, governance and funding of the European Supervisory Authorities); Omnibus Directive (PE-CONS … Continue Reading

ESMA publishes CRA market share calculation for 2019

On 29 November 2019, the European Securities and Markets Authority (ESMA) published its annual report on market share calculation for EU registered credit rating agencies for 2019 (CRAs). The purpose of the report is to provide guidance on Article 8d of the Regulation on CRAs which provides that issuers or related third parties are required … Continue Reading

FSB final report on the evaluation of the effects of financial regulatory reforms on SME financing

On 29 November 2019, the Financial Stability Board (FSB) published a final report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing. The FSB’s intention behind the final report is motivated by the need to better understand the effects of the reforms introduced by the G20 in … Continue Reading

EBA publishes guidelines on ICT and security risk management

On 28 November 2019, the European Banking Authority (EBA) published its final guidelines on ICT and security risk management (the Guidelines). The Guidelines are addressed to financial institutions, which for these purposes are: payment services providers (PSPs) as defined in Article 4(11) of the revised Payment Services Directive (PSD2) and credit institutions and investment firms … Continue Reading

FCA statement on SEC decision to extend no-action relief relating to MiFID II inducements and research provisions

On 8 November 2019, the FCA published a statement on the US Securities and Exchange Commission’s announcement to extend the SEC staff “no action letter” relating to the MiFID II Directive inducements and research provisions. The letter addresses the potential conflict between US regulation and MiFID II. The existing relief was due to expire on … Continue Reading

PRA Dear CEO letter on reliability of regulatory returns

On 1 November 2019, the PRA published a Dear CEO letter (dated 31 October 2019) on the reliability of regulatory returns. In the letter, the PRA sets out its expectations for firms to be able to respond promptly to a request to: demonstrate how the design and operation of the governance, controls and other processes … Continue Reading

CPMI toolkit for reducing risk of wholesale payments fraud related to endpoint security

On 22 October 2019, the Committee of Payments and Market Infrastructures (CPMI) published a toolkit to support central banks in reducing the risk of wholesale payments fraud related to endpoint security in their institutions and jurisdictions. The CPMI has developed a strategy with seven elements designed to address all areas relevant to preventing, detecting, responding … Continue Reading

Regulation in a changing world – FCA speech

On 21 October 2019, the FCA published a speech by Christopher Woolard (Director of Strategy and Competition at the FCA) entitled Regulation in a changing world. Key points in the speech include: the first wave of post-crisis regulation is done. Firms are better capitalised and the personal responsibility of their leaders is more embedded. This … Continue Reading

FCA response to House of Commons Treasury Committee report on regulatory perimeter

On 17 October 2019, the House of Commons Treasury Committee published the FCA’s response to its report published earlier this year on the regulatory perimeter. The conclusions in the Committee report found that the: informal system for the FCA requesting changes to the regulatory perimeter from HM Treasury is insufficient; current system allows grey area … Continue Reading

FSB report on the implementation and effects on the G20 financial regulatory reforms

On 16 October 2019, the Financial Stability Board (FSB) published its fifth annual report on the implementation and effects of the G20 financial regulatory reforms. The FSB states that the implementation of the reforms arising as a result of the financial crisis are progressing and is contributing to an open and resilient financial system that … Continue Reading

FCA responds to suggestions on users’ experiences with Gabriel platform

On 14 October 2019, the FCA published a new webpage summarising the feedback received through its online survey in relation to users’ experience of Gabriel, the FCA’s new data collection platform. Following the survey the FCA has highlighted the following three key areas for improvements: accessing Gabriel. The feedback focused on the need for improvements … Continue Reading

New FCA webpage – Submitting a change in control notification

On 14 October 2019, the FCA published a new webpage explaining how to submit a notification for a change in control. The FCA states that the guidance contained on the webpage is not an exhaustive list and there may be additional factors that need to be considered on a case-by-case basis. The FCA states that … Continue Reading

FSB letter – ongoing work on market fragmentation

On 14 October 2019, the Financial Stability Board (FSB) published a report to G20 Finance Ministers and Central Bank Governors providing progress updates on its ongoing work on market fragmentation. In its June 2019 report on market fragmentation, the FSB identified four areas for further work to address market fragmentation. The latest report provides a … Continue Reading

FMSB issues final statement of good practice on conflicts of interest

On 14 October 2019, the FICC Markets Standards Board published a final statement of good practice on conflicts of interest. The main purpose of the statement is to provide fixed income currencies and commodities (FICC) market participants with guidance as they consider ways in which to identify, manage or mitigate conflicts of interest that arise … Continue Reading

FSB and IMF publish 2019 progress report on G20 data gaps initiative

On 11 October 2019, the Financial Stability Board (FSB) and International Monetary Fund (IMF) jointly published the fourth progress report on the implementation of the second phase of the G20 data gaps initiative (DGI-2). The report provides an overview of the progress made since September 2018 in addressing the issue of post-crisis data gaps and … Continue Reading

Government response to Treasury Committee report on work of FCA and regulatory perimeter

On 10 October 2019, the House of Commons’ Treasury Committee (Committee) published its report following the Government’s response to the Committee’s earlier report on the work of the FCA and the perimeter of regulation (see previous blog here). In response to the Committee’s recommendations, the Government states that it is working with the FCA to … Continue Reading

FCA Financial Instruments Transparency System Instructions

On 10 October 2019, the FCA published instructions for its Financial Instruments Transparency System (FITRS). The instructions provide details on the files containing UK only transparency calculation results that the FCA will publish and instructions on how to use these files. The FCA states that that the intended audience for these instructions are market participants … Continue Reading

FSB, CPMI and IOSCO reports on governance arrangements for UPI, UTI and CDE

On 9 October 2019, the Financial Stability Board (FSB) published a report setting out governance arrangements for the globally harmonised Unique Product Identifier (UPI) and the unique transaction identifier (UTI). In addition, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report on governance arrangements for … Continue Reading

ECB Regulation amending Annex to Regulation on money market statistics published in OJ

On 8 October 2019, there was published in the Official Journal of the European Union (OJ) the Regulation (EU) 2019/1677 of the European Central Bank (ECB) amending Regulation (EU) 1333/2014 concerning statistics on the money markets. The Regulation amends the minimum standards applied by reporting agents under the Money Market Statistical Reporting Regulation. The Regulation … Continue Reading
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