United Kingdom

Topic: Regulation and compliance

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ESMA publishes guidelines and technical documentation on reporting under EMIR REFIT

On 20 December 2022, the European Securities and Markets Authority (ESMA) published a final report on guidelines for reporting under EMIR. The guidelines aim to further enhance the harmonisation and standardisation of reporting under EMIR. The final report contains an assessment of the feedback received from stakeholders on key elements of ESMA guidelines on reporting … Continue Reading

Financial Markets: member states agree position to revise EU rules on central securities depositories

On 20 December 2022, EU member states settled their negotiating positions on a proposed update of the central securities depositories regulation (CSDR). The planned review will make EU securities settlement more efficient by simplifying requirements and clarifying authorisation processes among other things. The proposed new rules, if adopted, will clarify that it is the home … Continue Reading

Capital Markets Union: Council agrees negotiating mandate on proposal to strengthen market transparency

On 20 December 2022, the EU member states’ representatives agreed a mandate for negotiations with the European Parliament on the proposed regulation reviewing the Markets in Financial Instruments Regulation (MiFIR) and the second Markets in Financial Instruments Directive (MiFID II). The draft regulation aims to establish a centralised database or ‘consolidated tape’ which will provide … Continue Reading

ESMA publishes opinion on amendments to Commission Delegated Regulation (EU) 2017/587 (RTS 1) and Commission Delegated Regulation (EU) 2017/583 (RTS 2)

On 19 December 2022, the European Securities and Markets Authority (ESMA) published an opinion on amendments to Commission Delegated Regulation (EU) 2017/587 (RTS 1) and Commission Delegated Regulation (EU) 2017/583 (RTS 2). ESMA has issued this opinion in response to the European Commission’s (the EC) proposed amendments to the regulatory technical standards (RTS) regarding equity … Continue Reading

EU Member States agree gas market correction mechanism

On 19 December 2022 the European Union (EU) Member States agreed their position on a Proposal for a Council Regulation establishing a market correction mechanism. By means of background, the legislative proposal was published by the European Commission (“the Commission”) on 22 November 2022 (please see our blog note). While the text available is still … Continue Reading

FCA consults on remuneration: ratio between fixed and variable components of total remuneration (‘bonus cap’)

On 19 December 2022, the FCA published Consultation Paper CP22/28: Remuneration; Ratio between fixed and variable components of total remuneration. In CP22/28, the FCA sets out its joint proposed rule changes with the PRA to remove the existing limits on the ratio between fixed and variable components of total remuneration (the ‘bonus cap’). The aim … Continue Reading

Commission Implementing Regulation (EU) 2022/2454 laying down implementing technical standards for the application of Directive 2002/87/EC with regard to supervisory reporting of risk concentrations and intra-group transactions

On 19 December 2022, there was published in the Official Journal of the European Union, Commission Implementing Regulation (EU) 2022/2454 laying down implementing technical standards for the application of Directive 2002/87/EC of the European Parliament and of the Council with regard to supervisory reporting of risk concentrations and intra-group transactions. This Regulation shall enter into … Continue Reading

AIFMD guides: The marketing passport and the requirements for fund managers across the EU

We have now updated our two guides on the Alternative Investment Fund Managers Directive (AIFMD), which has now been in force for approximately nine years. Both guides are now in their fifth iteration. The first guide considers whether the AIFMD marketing passport is working in practice and is a useful tool for managers as it … Continue Reading

ESMA publishes final report on guidelines on standard forms, formats and templates to apply for permission to operate a DLT market infrastructure

On 15 December 2022, the European Securities and Markets Authority published a final report containing guidelines on standard forms, formats and templates to apply for permission to operate a Distributed Ledger Technology market infrastructure (DLT MI). Between 11 July and 9 September 2022, ESMA conducted a public consultation on draft guidelines on standard forms, formats … Continue Reading

Bank of England consults on the supervisory approach to wholesale cash distribution

On 15 December 2022, the Bank of England (BoE) published a Consultation Paper on the supervisory approach to wholesale cash distribution. The Consultation Paper sets out proposals for how the BoE proposes to implement its new powers in respect of the wholesale cash distribution (WCD) infrastructure in the UK, also known as the wholesale cash … Continue Reading

ESMA MiFID II supervisory briefing on the supervision of cross-border activities of investment firms

On 14 December 2022, the European Securities and Markets Authority (ESMA) published a supervisory briefing on the supervision of cross-border activities of investment firms. On 10 March 2022, ESMA published a peer review report on the supervision of cross-border activities of investment firms. In its report, ESMA identified the need for home supervisors to significantly … Continue Reading

ESMA statement on promoting clarity to market participants on best execution reporting

On 14 December 2022, the European Securities and Markets Authority (ESMA) published a public statement concerning the deprioritisation of supervisory actions on the obligation to publish RTS 27 reports after 28 February 2023 in light of the ongoing legislative procedure on the MiFID II/MiFIR review. Article 27(3) of MiFID II requires execution venues to make … Continue Reading

Letter from Andrew Bailey, to Jeremy Hunt: Response to the remit for the FPC

On 13 December 2022, the Bank of England (the Bank) published a letter from Andrew Bailey, Governor, to Jeremy Hunt, Chancellor of the Exchequer, responding to the remit for the Financial Policy Committee (FPC). The letter sets out the FPC’s response to the recommendations set out in the Chancellor’s letter of 17 November 2022 as … Continue Reading

Updates to the Regulatory Initiatives Grid

On 12 December 2022, the FCA updated its webpage concerning the Regulatory Initiatives Grid. The webpage now includes a new section ‘Delay to publication of November 2022 Regulatory Initiatives Grid’. The new section outlines how the FCA and other UK regulators are taking some additional time to collectively consider any necessary changes to planned or … Continue Reading

Spotlight on the Appointed Representatives regime: new FCA webpage on section 165 request for principal firms

On 8 December 2022, the FCA published a new webpage concerning the section 165 data request which it is sending to principal firms asking for more information about their appointed representatives. The webpage also includes responses to common questions. Principal firms have until 28 February 2023 to respond to the request.… Continue Reading

FCA sets out how mortgage firms should be supporting borrowers

On 7 December 2022, the FCA issued a consultation on draft guidance which seeks to clarify the effect of existing rules and principles for firms supporting their existing mortgage borrowers impacted by the rising cost of living. The draft guidance covers how firms can support their customers including through automated processes and digital channels. It … Continue Reading

FSB calls for urgent work to address cross-border resolution challenges in the non-bank sector

On 8 December 2022, the Financial Stability Board (FSB) published its 2022 Resolution Report. The report takes stock of progress made by FSB members in implementing resolution reforms and enhancing resolvability across the banking, financial market infrastructure, and insurance sectors. The report notes that there has been a lot of progress in resolvability in the … Continue Reading

Economic Crime and Corporate Transparency Bill – an attempt to reduce economic and financial crime

On Friday 25 November 2022, the Economic Crime and Corporate Transparency Bill (the Bill) entered Parliament. The Committee Stage (Commons) was brought to a conclusion on Tuesday 29 November 2022. The Bill, as amended by the Public Bill Committee, was published on 30 November 2022. The Bill proposes various reforms designed to reduce economic and … Continue Reading

FCA consults on introducing a gateway for firms who approve financial promotions

On 6 December 2022, the FCA published Consultation Paper CP22/27: Introducing a gateway for firms who approve financial promotions. Under current legislation, any FCA authorised firm is allowed to approve financial promotions on behalf of other firms who are not authorised by the regulator. Changes being introduced by Parliament will require authorised firms to undergo … Continue Reading

Spotlight on the Appointed Representatives regime: the new rules come into force

On 8 December 2022, the FCA’s new rules for the Appointed Representatives (AR) regime come into effect. In our previous briefing note covering the FCA’s Policy Statement on the updated AR regime we described 5 key areas of change and key steps for principal firms to consider when preparing for the new regime. As part … Continue Reading

Published in the OJ – Commission Implementing Regulation (EU) 2022/2365 amending technical standards as regards the mapping tables correspondence of credit assessments of external credit assessment institutions for securitisation

On 5 December 2022, there was published in the Official Journal of the European Union (OJ) Commission Implementing Regulation (EU) 2022/2365 of 2 December 2022 amending implementing technical standards laid down in Implementing Regulation (EU) 2016/1801 as regards the mapping tables correspondence of credit assessments of external credit assessment institutions for securitisation in accordance with … Continue Reading

Published in the OJ – Commission Delegated Regulation (EU) 2022/ 2360 amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/389 as regards the 90-day exemption for account access

On 5 December 2022, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2022/ 2360 of 3 August 2022 amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/389 as regards the 90-day exemption for account access. The Regulation shall enter into force on the twentieth … Continue Reading

FCA publishes update on debt packager proposals

On 5 December 2022, the FCA published an update on debt packager proposals. The update states that in November 2021, the FCA consulted on new rules to ban debt packagers from receiving fees or other remuneration for referrals to debt solution providers. Following analysis of the feedback received, the FCA decided to gather some additional … Continue Reading
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