Monthly Archives: October 2016

PRIIPs delegated regulation regarding product intervention published in OJ

The Commission Delegated Regulation (EU) 2016/1904 supplementing the PRIIPs Regulation was published in the Official Journal on 29 October 2016. Under the PRIIPs Regulation, national competent authorities and EIOPA have intervention powers to intervene in the marketing, distribution or sale of insurance-based investment products, financial activities or practices. This Delegated Regulation sets out a list […]

FCA publishes final report on corporate and investment banking

The FCA has published the final findings from its thematic review into corporate and investment banking. The study was designed to foster competition in the industry and has concluded that whilst many clients are well served by the sector, there are some areas where improvements could be made, especially for smaller clients. The report outlines a package of […]

Treasury consultation on distributable profits of long-term (life) insurers

The Treasury has launched a consultation on technical changes to the legal definition of life insurers’ distributable profits, in the light of the implementation of Solvency II and the necessity for consequent changes to the Companies Act 2006. As this issue has already been the subject of discussions with the industry, the consultation will close after a shorter period, […]

PRA and FCA final rules on regulatory references

Following a period of joint consultation, the PRA and FCA have recently published policy statements setting out the final rules on regulatory references. The final rules will come into force on 7 March 2017 and will apply to banks and insurers. The final rules on regulatory references follow on from the Senior Managers and Certification […]

ESMA publishes fund remuneration guidelines

ESMA has published its guidelines on remuneration practices under the AIFMD and for UCITS. The guidelines are new for UCITS management companies, and amended for AIFMs to address how to apply the rules in a group context where some group members are banks. The guidelines apply from 1 January 2017.

PSR speaks on super-complaint

Hannah Nixon, Managing Director of the PSR, has spoken about its first super-complaint and what PSR is doing about it. The PSR must respond by 22 December, and is looking at the scale of the “vishing” problem, what protections are in place, what developments are on the horizon and what actions the PSR or any […]

Government responds on AML and CTF

The Government has responded to the responses received to its request for views on its proposed action plan to combat money laundering and terrorist finance. Respondents had agreed the SARS regime needed reform, but had not agreed on the form the changed regime should take. The Government is introducing the Criminal Finances Bill which will, […]

Updated Consumer Credit information sheets published by the FCA

On 18 October 2016, the FCA announced that it had updated a number of consumer credit information sheets that lenders must use when they are notifying customers of being arrears or default: Arrears Default High cost short term loans High cost short term loans peer-to-peer lenders Arrears peer-to-peer lenders These information sheets must be used […]

EP to approve new prospectus rules

The European Parliament has backed the European Commission’s proposals for a new Prospectus Regulation, which will significantly increase the ability of SME’s to seek funding without having to publish a prospectus.  See our article on the key changes.

Treasury confirms new advice body

Treasury has confirmed it is to set up a new public body offering debt advice, money and pensions guidance to replace the MAS and bring together the existing pensions advisory bodies. The body has not yet been designed or named.

FCA gets tough on AML failings

FCA has fined Sonali Bank £3,250,600 and restricted it from accepting deposits from new customers for 168 days, and also fined the bank’s former MLRO £17,900 and banned him from performing the MLRO or compliance oversight functions. FCA found the bank had serious and systemic weaknesses at almost every level of its AML control and […]

FCA updates on smarter communications

FCA has updated its guidance on smarter communications with customers. It has removed some ineffective disclosure requirements from its rules, and published feedback on its discussion paper, looking at how firms can most usefully and clearly communicate with their customers.

ESMA publishes MiFID 2 investor protection FAQs

ESMA has published a new set of FAQs on investor protection issues under MiFID 2. The initial questions cover best execution, suitability and appropriateness, recording telephone conversations and electronic communications, record keeping, investment advice on an independent basis, underwriting and placement of a financial instrument, and inducements (research). No doubt ESMA will build significantly on […]

FATF reports on Beneficial Ownership

FATF has reported to G20 finance ministers on how it is progressing its aims on availability and exchange of beneficial ownership information. It plans to focus on progress in its upcoming peer reviews.

City publishes Brexit report

On 5 October, the City UK published a report by Oliver Wyman looking at the potential impact of Brexit on the UK-based financial services sector. The report looks at the potential consequences of various possible Brexit formulations and concludes, unsurprisingly, that if a Brexit that preserves the rights firms get from passporting and equivalence is […]

FCA fines Aviva for client money failings

FCA has fined Aviva Pension Trustees UK Limited and Aviva Wrap UK Limited £8,246,800 for failings in oversight of outsourced service providers for client assets. It found that Aviva had not put appropriate controls in place over its third party administrators and, as a result, had not been able properly to challenge the providers’ controls, […]

ESMA updates funds FAQs

In early October, ESMA updated its FAQs on the AIFMD in respect of the impact of the SFTR on AIFM reporting, and its FAQs on UCITS in respect of this and other questions including on regulated markets and reinvestment of cash collateral.

ESMA consults on product governance guidance

ESMA is consulting on draft guidelines for supervisors to help them assess whether product manufacturers and distributors have properly complied with MiFID 2’s requirements on product governance. The guidelines focus on the determination of target markets for products.

Latest Market Watch highlights

FCA’s latest “market watch” focuses on the results of a recent review of market abuse systems and controls in market making firms. Its review threw up some alarming conclusions, including considerable variance in awareness of market abuse risks outside the compliance teams. It found firms were better aware of the need for information barriers, but […]

Removal of ineffective disclosure requirements from FCA Handbook

The FCA’s policy statement PS16/23 follows its consultation paper CP15/32 which contained its proposals to remove certain disclosure requirements from the Handbook.  The policy statement confirms the removal of ‘ineffective’ requirements as part of the FCA’s focus on promoting smarter customer communications. The FCA has decided to remove the rules and guidance around the following documents: […]