Tag: Regulation and compliance

BoE speech – New tides

On 20 July 2022, the Bank of England published a speech by Benjamin Nathanaël (Executive Director, Authorisations, Regulatory Technology, and International Supervision) entitled New tides. The speech addresses how banks should act prepare for the risks posed by geographical and macro-economic changes, new technology and climate change, after operating under easy economic conditions for the … Continue Reading

Financial Services and Markets Bill – a landmark piece of legislation

Introduction On 19 July 2022, the current Chancellor of the Exchequer delivered his first Mansion House speech in which he discussed the Government’s priorities for the coming months. These priorities included controlling inflation, delivering on the Government’s promise to create conditions for a private sector recovery and moving forward on its plans for reforming the … Continue Reading

ESMA revision to guidelines and recommendations on the scope of the CRA Regulation

On 15 July 2022, the European Securities and Markets Authority (ESMA) published a final report concerning updates to its 2013 guidelines and recommendations on the scope of the Regulation on credit rating agencies. Specifically, the ESMA is providing additional clarification to paragraphs 14 and 15 of the 2013 guidelines, in particular to the following key … Continue Reading

Commission Implementing Regulation laying down ITS for the application of MiFID II with regard to the format in which branches of third-country firms and competent authorities have to report the information

On 15 July 2022, there was published in the Official Journal of the EU, Commission Implementing Regulation 2022/1220 of 14 July 2022. This Implementing Regulation lays down implementing technical standards for the application of MiFID II with regard to the format in which branches of third-country firms and competent authorities have to report information referred … Continue Reading

ESMA updates Q&As on MiFID II and MiFIR market structures topics

On 15 July 2022, the European Securities and Markets Authority (ESMA) published updated Q&As on MIFID II and MIFIR market structures topics. The Q&As fall part of the Interactive Single Rulebook (ISRB), an online tool aimed at providing a comprehensive overview of, and easy access to, all level 2 and level 3 measures adopted in relation … Continue Reading

ESRB letter to Commissioner on their view regarding data quality issues and risks for financial stability

On 13 July 2022, the European Systemic Risk Board (ESRB) published a letter to Commissioner Mairead McGuinness covering persistently poor data quality and the risks that this poses for financial stability. The letter highlights the difficulties that persistent data quality issues pose for the adequate monitoring of financial stability risks and how they may relate … Continue Reading

Commission Implementing Regulation laying down ITS for the application of MiFID II with regard to the format in which branches of third-country firms and competent authorities have to report the information referred to in Article 41(3) and (4) of that Directive

On 14 July 2022, the European Commission published an Implementing Regulation laying down implementing technical standards (ITS) for the application of MiFID II with regard to the format in which branches of third-country firms and competent authorities have to report the information referred to in Article 41(3) and (4) of that Directive and an annex. … Continue Reading

FSSC updated their inclusion measurement guide

On 14 July 2022, the Financial Services Skills Commission (FSSC) updated its inclusion measurement guide to support and improve the measurement of inclusion across the financial services sector. The inclusion measurement guide will help organisations: Measure inclusion in three priority areas for financial services organisations to promote an inclusive culture. These areas are inclusive leadership, … Continue Reading

FSB publish letter to G20 Finance Ministers and Central Bank Governors on the current outlook for financial stability

On 13 July 2022, the Financial Stability Board (FSB) published a letter to G20 Finance Ministers and Central Bank Governors regarding the current outlook for financial stability ahead of their meeting on 15-16 July. The letter warns that the combination of lower growth, rising inflation and tighter global financial conditions may crystallise pre-existing vulnerabilities in … Continue Reading

FSB interim report – Exit strategies to support equitable recovery and address effects from COVID-19 scarring in the financial sector

On 13 July 2022, the Financial Stability Board (FSB) published an interim report on exit strategies to support equitable recovery and address effects from COVID-19 and Russia’s invasion of Ukraine on the financial sector and how the FSB will address these issues going forward. It considers exit strategies in relation to financial stability and the … Continue Reading

FCA tells banks to improve treatment of struggling small business borrowers

On 12 July 2022, the Financial Conduct Authority (FCA) published a Dear Chair letter regarding action needed to ensure fair treatment of small and medium size enterprise (SME) customers when collecting and recovering debts, especially with the rising cost of living. The FCA has recently concluded multi-firm work with retail banks who provide SME lending … Continue Reading

ESMA’s opinion on the classification of third-country financial entities in weekly position reports under MiFID II

On 12 July 2022, the European Securities and Markets Authority (ESMA) published an opinion on the classification of third-country counterparties. The opinion clarifies how third-country financial entities should be classified in the weekly position reports on commodity derivatives and emission allowances derivatives under MiFID II. The opinion states that for the purpose of the weekly … Continue Reading

IOSCO final report on operational resilience of trading venues and market intermediaries during the COVID-19 pandemic & lessons for future disruptions

On 11 July 2022, the International Organization of Securities Commissions (IOSCO) published a final report on the operational resilience of trading venues and market intermediaries during the COVID-19 pandemic & lessons for future disruptions. In the report IOSCO summarizes some of the existing operational resilience work by IOSCO and other international organizations and outlines how … Continue Reading

ESMA Consultation Paper – Review of the Guidelines on MiFID II product governance requirements

On 8 July 2022, the European Securities and Markets Authority (ESMA) published a Consultation Paper on the review of the Guidelines on MIFID II product governance requirements. The Consultation Paper is primarily of interest to Member State competent authorities, firms that are subject to MIFID II and investors. The ESMA proposes updating its 2017 guidelines … Continue Reading

Report on the current framework for qualification of financial advisors in the EU and assessment of possible ways forward

On 7 July 2022, there was published a European Commission staff working document (dated 30 June 2022) being a report on the current framework for qualification of financial advisors in the EU and assessment of possible ways forward. The report was previously announced under the Capital Markets Union Action Plan and examines the feasibility of … Continue Reading

Report on EU SME referral scheme

On 7 July 2022, there was published a European Commission staff working document (dated 28 June 2022) being a report on an EU SME referral scheme. The report was previously announced under the Capital Markets Union Action Plan and analyses the merits and feasibility of setting up a referral scheme to require banks (and other … Continue Reading

Spotlight on the Appointed Representatives regime: what is changing and how best to prepare

Ahead of the anticipated FCA policy statement and final rules on the changes to the Appointed Representatives regime, which were expected to be published in H1 2022, in this briefing paper we consider some of the steps that firms should be taking to prepare for the anticipated changes in the FCA’s final policy.… Continue Reading

Commission Delegated Regulation supplementing the IFR with regard to RTS for public disclosure of investment policy by investment firms

On 6 July 2022, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2022/1159 of 11 March 2022 supplementing the Investment Firms Regulation with regard to regulatory technical standards for public disclosure of investment policy by investment firms. The provisions of the Delegated Regulation specify uniform disclosure formats and … Continue Reading

Managing emerging bribery risks for financial institutions

Despite financial institutions in the UK and many other jurisdictions being required to have in place sophisticated bribery and corruption (ABC) systems and controls, there has been a recent increase in the number of major ABC enforcement actions involving financial institutions, as well as a significant uptick in civil disputes alleging bribery. Looking ahead, as … Continue Reading

FCA’s approach to compromises for regulated firms

On 5 July 2022, the FCA published Finalised Guidance 22/4 ‘FCA’s approach to compromises for regulated firms’ (FG22/4). In FG22/4, the FCA clarifies how it approaches compromises in line with its statutory objectives to protect consumers and the integrity of markets. The FCA has issued FG22/4 as it is seeing an increase in the number … Continue Reading

FCA consultation on improving equity secondary markets

On 5 July 2022, the FCA published Consultation Paper 22/12 ‘Improving equity secondary markets’ (CP22/12). The proposals in CP22/12 are part of the review of the UK wholesale financial markets that the FCA has been conducting with HM Treasury. The FCA has issued consultation proposals as these concern parts of the UK wholesale financial markets … Continue Reading

FCA: Updated webpage: Change in control

On 1 July 2022, the FCA updated its webpage on ‘change in control’. The update provides that: Given recent delays in allocating FCA-led notifications to case officers over recent months, the FCA has recruited additional case officers. Currently, there is a delay of approximately one and a half months between submission of a complete notification … Continue Reading
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