Monthly Archives: October 2016
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 […]
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 […]
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, […]
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 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.
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 […]
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, […]
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 […]
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 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 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 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 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 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.
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 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, […]
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 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.
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 […]
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: […]