Author Archives: Roseyna Jahangir
Following the initiation of its market study into the wholesale insurance brokers market in November 2017, the FCA has now published its final report. The focus of the market study was on the following five areas: the possibility of some brokers being able to exercise market power to earn high commission and erect barriers to […]
Under the Solvency II Directive, the Commission is required to review certain areas covered by the Directive by 2020. Accordingly, the Commission has sent EIOPA a formal request for technical advice on the review of the Directive. EIOPA is asked to review a number of areas, including: the function of the matching adjustment and volatility […]
ESMA has announced that, in the event of a no-deal Brexit, LCH Limited, ICE Clear Europe Limited and LME Clear Limited will be recognised as equivalent. The confirmation of equivalence for the purposes of EMIR follows an assessment will ensure the continued clearing of derivatives trades through these clearing houses.
The European Parliament has approved new rules to prohibit high charges on cross-currency payments within the EU. The new rules will mean that charges for cross-border payments in the single euro payments area (SEPA) will be aligned with charges for corresponding national payments in the national currency of the Member State in which the payment […]
In its capacity as supervisor of financial market infrastructure (FMI) firms, the Bank of England has published its Annual Report, providing an overview this sector in 2018 and future developments and priorities for 2019. Accompanying the Report, the Bank has also produced a short video describing what FMI firms are, and why they are important […]
The Financial Stability Board has published its work programme for the forthcoming year. The areas upon which it intends to focus are: addressing emerging vulnerabilities in the financial system; working with standard-setting bodies to finalise and opererationalise post-crisis reforms; monitor the completion of reforms implementation; and evaluate the effect of the post-crisis reforms.
ESMA has published information on how derivatives data that must be reported under EMIR should be handled in the event of a ‘no deal’ Brexit. ESMA’s statement sets out expectations in relation to: reporting by CCPs and counterparties; reconciliation and recordkeeping by trade repositories; portability and aggregation by trade repositories; and timeline for completion of […]
Following its consultation on general standards and communication rules for payment services and e-money sectors, the FCA has now published final rules and guidance on, among other matters, the extension of the Principles for Business and rules on communication in BCOBS to certain payment service providers and e-money issuers. The new rules and guidance will […]
A group of 29 international regulators and bodies, including the FCA, has opened a cross-border pilot sandbox. Applicants that want to test innovative products and services across international markets are invited to submit applications to the UK part of the Global Financial Innovation Network (GFIN). The deadline for applications is 28 February 2019.
Under draft legislation published by the Treasury, the FCA and the PRA are to be given temporary powers to make transitional provisions, in order to ensure that most firms and other regulated entities’ day to day UK regulatory obligations will be as unaffected by Brexit as possible. However, the FCA has published a statement setting […]
As part of the preparation for a ‘no-deal’ Brexit, the FCA has agreed MoUs with ESMA and with EU and NCAs, covering supervision, enforcement and information exchange, including in relation to credit rating agencies and trade repositories.
As part of the Brexit preparations, the BoE and ESMA have published an MoU setting out cooperation and information-sharing arrangements in relation to CCPs and CSDs. This agreement, and the adoption by the EC of temporary equivalence decisions for UK CCPs and CSDs, will facilitate continued recognition of UK CCPs and CSDs and their continued […]
ESMA has published its Regulatory Work Programme for 2019, setting out ESMA’s Single Rulebook work. The matters it is working on for the forthcoming year include: Post-trading RTS under EMIR; RTS relating to registration requirements under the European Social Entrepreneurship Funds Regulation and the European Venture Capital Funds Regulation; and A report to the Commission on […]
As part of its follow up work to its asset management market study, the FCA has published new rules and guidance to help asset managers and customers understand more about how funds are being managed. The new provisions include: guidance on how fund managers should describe fund objectives and investment policies; requirements for how benchmarks, where […]
The European Commission has adopted delegated regulations under the EuSEF Regulation (346/2013) and the EuVECA Regulation (345/2013). These Regulations respectively introduced measures to allow venture capital funds to market their funds across the EU using a single set of rules. They also made provision for delegated regulations to be developed to specify requirements such as […]
The FCA is working with the the FRC to set out proposals and a discussion paper encouraging asset managers and others managing investments to take a closer interest in the operation of the businesses in which they invest. The FCA consultation is on measures implementing the second Shareholders Rights Directive which mainly affects FCA regulated […]
The FCA is inviting views on proposals to require firms to report certain value measures data on a wide range of GI products. This consultation follows the identification of issues of poor value in the GI market, and a pilot trialed in 2016 involving reporting requirements and publication of the resultant data sets. Under the […]
The PSR has published its final terms of reference for its market review into the supply of card-acquiring services. the review will look at a variety of issues including how merchants buy the services, whether there are alternatives to them and what the market is delivering for both merchants and consumers. The PSR aims to […]
ISDA has published an updated webpage with FAQs on the impact of Brexit on ISDA documentation.
As the FCA prepares for the extension of SMCR to most solo-regulated firms next December, it is consulting on a few areas regarding the existing regime for banks and large insurers previously identified as wanting attention. The proposals set out in CP19/4 include: excluding the legal function from the scope of SMCR; amend the scope of […]
The FCA is consulting on draft guidance on activities that the FCA regulates in this area. Noting that this is an area in which investor activity is on the increase, and where there is still uncertainty about where the regulatory perimeter falls, the guidance will provider greater clarity, and also assist consumers in knowing what […]
We are delighted that Jonny Williams has joined the financial services regulatory team at Womble Bond Dickinson UK. More information on Jonny and his appointment can be found here.
The FCA has launched a new portal to enable mutual societies complete tasks and submit information to the FCA that was previously done online or by post, such as the submission of annual rules and accounts and applications for rule amendments. Mutuals societies can start to register as users of this portal; the FCA will […]
The European Commission has opened a consultation to invite views from a range of stakeholders on the functioning of the Consumer Credit Directive (CCD). The purpose of the evaluation is to consider whether the CCD is still fit for purpose given market developments in the ten years since its adoption in 2008. Responses are invited […]
UK Finance has applied on behalf of the UK to stay in SEPA. SEPA is operated by the EPC outside the EU institutional framework. UK Finance says the SEPA community would support it staying, and its own members want to do so. The final decision will be made on 7 March, but UK Finance anticipate […]
At the end of last year, the the Treasury published draft regulations making provision for contractual certainty for firms currently passporting into the UK in the event of a ‘hard’ Brexit. Following this, the FCA has published CP19/02 on Brexit and contractual continuity. This consultation paper is aimed at such incoming firms. It consults on […]
In December 2018, the FCA confirmed that as part of its take over of the regulation of CMCs from April 2019, it would require CMCs to register for temporary permission in order to continue to operate from April, and pending submission and approval by the FCA of a ‘full’ application to continue to do business. […]
EIOPA has published an Opinion on the supervision of cross-border non-life insurance where the risk is of a long term nature. In the Opinion, EIOPA notes that this type of insurance is often more uncertain than the majority of non-life business, requiring both knowledge of the local market and actuarial skills for the calculation of […]
As part of its preparation for onshoring EU legislation, the PRA has published CP32/18. This consultation paper contains two consultations: the first sets out the PRA’s proposals regarding the PRA Rulebook and the Binding Technical Standards (BTS) that are to come within the PRA’s remit; the second relates to BTS that will come within the […]
FCA is consulting on how it proposes to make technical standards which are substantially the same as the PSD2 SCA RTS to ensure strong customer authentication and common and secure open standards of communication post-Brexit. FCA comments that some of the SCA-RTS take effect from 14 March 2019 and others not until 14 September. In […]
The BoE and the PRA have published consultation papers on resolvability and resolution assessments for certain firms. PRA CP31/18 sets out proposed rules that would require relevant firms to report to the PRA on their assessment of their preparations for resolution, and publicly disclose summaries of those reports. The BoE consultation paper includes proposals on […]
The EBA has issued a press release that urges firms with customers that may be affected by Brexit to be more proactive in communicating with their customers about how they may be affected. In particular customers should be told about any actions that firms have had to take as part of contingency planning that could […]
Earlier this year, the FCA published CP18/12, which proposed measures to reduce consumer harm and strengthen protections for customers of home-collected credit, catalogue credit and store cards. Following this, the FCA has published CP18/43, which: responds to feedback received to this earlier consultation paper and sets out final rules and guidance; includes finalised guidance for registered […]
As an early Christmas present, the FCA has published its Final Report into retail banking models. The review into this sector was launched in April 2017, and the FCA published an interim Progress Report in June 2018. The FCA’s next steps following the review will involve an on-going monitoring of retail banking business models, and […]
As part of its ongoing work to tackle high cost credit, the FCA has announced proposals to restrict the charges banks are able to impose for overdrafts. The FCA is proposing a package of measures that include stopping firms from charging higher fees for unannounced overdrafts, controlling overdraft charges, and requiring firms to work more […]
The FCA has now published final rules confirming the expansion of the jurisdiction of the FOS to include certain SME customers. The new rules will mean that from 1 April 2019, the FOS will be able to hear complaints from SMEs who meet two of the three following criteria – fewer than 50 employees; annual […]
The FOS has published a consultation on its plans and budget for 2019/2020. It notes that from April 2019, its jurisdiction will be expanded by the addition of two significant areas of work: complaints made by SME customers of financial services, and complaints made by customers of claims management services. The consultation questions include inviting […]
PRA has published the Q3 2018 figures for skilled persons reports commissioned. There have been 3 on controls and risk management frameworks and one in the prudential insurance lot.
PRA has updated its Policy Statement relating to the Systemic Risk Buffer. The update follows consultation in response to which it received no comments.
The EBA has published its Opinion on how eIDAS certificates and be used under the SCA and CSC RTS under PSD2. The Opinion: clarifies that it is the ASPSPs that should choose whether a Qualified certificate for electronic seals (QSealC) or a qualified certificate for web authentication (QWAC) should be used for identification purposes; suggests […]
FCA has updated its website to show the forms that now apply to insurers, who have become subject to the SMCR from 10 December.
The European Parliament and the Council of the European Union have reached a provisional political agreement on the banking package of reforms that will result in CRD V/ CRR II. Proposed measures include more risk-sensitive capital requirements, in particular in the areas of market risk, counterparty credit risk and for exposure to central counterparties, and […]
The FCA has published the outcome of its thematic review into the treatment of customers with long-term mortgage arrears. While in general it found that firms treated such customers appropriately, it did note areas for improvement and inconsistencies in management practices. The FCA recommends that firms that offer or administer mortgages should read the review, […]
BIS has published a report on range of practices relating to cyber resilience. The report focuses on four areas of cyber resilience: governance and culture risk measurement and assessment of preparedness (both in preventing and recovering/learning) communication and information sharing interconnections with third parties. Drawing on competent authorities responses, exchanges between international experts and input […]
The EBA has published final Guidelines on the exemption from the fall back mechanism requirement under the RTS on Secure Customer Authentication and Common and Secure Communications (Commission Delegated Regulation (EU) 2018/389) (SCA & CSC RTS). This exemption applies to account servicing payment service providers (ASPSP) who meet the four conditions sets out in the […]
ESMA has added to its EMIR Regulation Q&A document. The updated question relates to Article 41 of EMIR, on margin requirements.
EIOPA has published draft technical advice to the Commission on the integration of sustainability risks and factors in delegated acts under Solvency II and IDD. The proposed amendments include the addition (in the Solvency II Delegated Act) of a responsibility for identifying and assessing emerging sustainability risks to the risk management function, and including any […]
As part of the preparation for a ‘hard’ Brexit, the Treasury has published a Policy Note that accompanies a draft Bill covering in-flight financial services legislation, currently progressing through Parliament. The Policy Note comments that in scope of the Bill are pieces of EU legislation agreed or in negotiation at the point of exit, with implementation […]
ESMA has released a Public Statement on how central clearing is to be addressed in the event of a no-deal Brexit. ESMA supports continued ability to access UK CCPs and has therefore welcomed the decision to adopt a temporary and conditional equivalence decision. It is now working to plan for recognition of UK CCPs in […]
The Department for Exiting the EU published a press statement alongside the announcement on 14 November that the UK and EU negotiating teams had reached an “in principle” agreement on the Withdrawal Agreement and an outline of the Political Declaration on the future relationship. It also published the draft agreement, outline declaration and joint statement. […]
ESMA has updated its Q&As on MiFID II and MiFIR, and on the Short-Selling Regulation. The topics addressed by the MiFID II and MiFIR Q&As include making market structures and transparency issues. The Short-Selling Q&A updates a regulatory reference.
In the light of the implementation of IDD, the CMA is proposing to amend the Payment Protection Insurance Market Investigation Order 2011 (Order). Currently, the Order requires PPI providers to send policyholders and Annual Review document, which contains specified information, including a policy summary. The CMA proposes that the Order should mandate that the reference […]
As part of the implementation of the Securities Regulation, which begins to apply from 1 January 2019, ESMA has published: draft regulatory and implementing standards on the contents of applications to register with ESMA as a securitisation repository; Final Technical Advice on fees to be charged for registering and supervising securitisation repositories; further guidance to […]
The ECB has published non-binding guidance for banks on its expectations regarding internal capital liquidity adequacy assessment processes. The guides will be applied from 1 January 2019. These guides updated previous guidance from January 2016, and indicate an intensification of the ECB’s supervisory assessments and an increase in the role of ICAAP and ILAAP in […]
ESMA has published a report with draft RTS that would amend the 3 Commission Delegated Regulations on EMIR. ESMA is proposing a limited exemption that would facilitate novation of certain non-centrally cleared OTC derivatives to EU counterparties for a specific time-window in the event of a no-deal Brexit. The proposals would allow novation without triggering the […]
PRA has published a policy statement to its second consultation on extending the SMCR to insurers. Following FCA’s finalisation of its rules on the extension, PRA now confirms it had no responses to its consultation and has made no changes to the rules it consulted on. As a result, it has now made the rules, […]
The Bank of England and Pay.UK are inviting expressions of interest from senior stakeholders who could represent the payments industry on a newly created Standards Advisory Panel. The new Panel will focus on the implementation of ISO20022, but also cover also payments standards for the UK. The deadline for applications is Monday 10 December 2018.
The PRA has issued a direction that confirms the process, including timings, for notifications by incoming EEA firms that wish to continue operating in the UK after Brexit (in the event of no applicable transitional agreement being in place).
Following its consultation in July 2018 on handling complaints about regular premium PPI, the FCA has published finalised guidance that confirms that firms should assess PPI commission disclosures not only at point of sale, but on an on-going basis. The FCA is also consulting on new rules that would require firms that sold relevant products […]
EIOPA has issued a call to action for insurance firms to take steps in good time to ensure they will be able to continue to service policyholders in the event of the UK withdrawing from the EU without an agreement. It notes that UK (and Gibraltar) insurance entities who have cross-boarder insurance contracts should write to […]
As part of its preparation for the contingency of a ‘hard’ Brexit, HM Treasury has published draft onshoring legislation relating to: Payment accounts Financial markets infrastructure insolvency Central securities depositories and Investment funds and managers The changes made under these SIs are unlikely to take effect if an implementation period is agreed.
The Treasury Committee has published the Twenty-Fourth Report of Session 2017-2019 on SME Finance. The Committee highlighted the investigation into RBS’ Global Restructuring Group (GRG), and noted the FCA’s comment that the failures at the GRG might have triggered disciplinary action, had they occurred in a regulated business. The Committee commented that the justification for […]
Bank of England communications on approach to financial services legislation under EU (Withdrawal) Act
The Bank of England has published a package of documents covering various aspects of contingency measures required in the event of there being no applicable Brexit transition period agreed. The publications include: ‘Dear CEO’ letters from the PRA to all PRA authorised and regulated firms and incoming EEA firms, and from Bank of England to […]
The Bank of England is consulting on the proposed fee for applications for non-UK CCPs that will seek UK recognition both before and after Brexit. Comments and feedback on all aspects of the proposal are sought by 2 January.
HM Treasury has published a response to the consultation conducted in August – September 2016 on proposed Mutuals’ Deferred Shares Regulations. These would have implemented provision in the Mutuals’ Deferred Shares Act 2015 for a new type of capital to be issued by mutual insurers. The government’s response noted that the nine responses to the […]
HMT has published the latest set of Brexit transition draft and updated draft SIs to be made under the EU Withdrawal Act 2018 in the event of a ‘hard’ Brexit, and accompanying explanatory notes. These cover: Central Securities Depositories Over the Counter Derivatives, Central Counterparties and Trade Repositories Financial Conglomerates and Other Financial Groups (explanatory […]
As part of its Brexit preparations, the FCA has updated its webpage for incoming trade repositories that wish to ensure they can continue to do business in the UK following Brexit. Firms are now able to complete draft application forms for registration as a trade repository. The FCA has also published guidance notes for this […]
The latest Occasional Consultation Paper from the PRA covers changes to the Rulebook, Supervisory Statements, Statements of Policy and Forms, in the following areas: Reporting – amendment to the Branch Return Form and amendments to the reporting templates for calculating risk based levies Ring fencing – imposition of financial penalties Written reports by external auditors to […]
ESMA has published an own initiative report on additional steps it can take to contain the risks for investors arising from ICOs and crypto-assets (noting that there are no obvious related stability risks as yet). The report recommends that: additional guidance is produced by EMSA on the interpretation of MiFID with respect to applicability to […]
John Neal, most recently Group CEO of QBE Insurance Group, is to be the new Lloyd’s CEO.
PRA is consulting on a draft supervisory statement setting out how it expects banks and insurers to manage the financial risks from climate change. The statement sets out how effective governance, risk management, scenario analysis and disclosures can be used to address the risks and is intended to build on previous statements and embed appropriate […]
PRA has published updated Supervisory Statements on: regulatory reporting, internal model outputs, and on ORSA and the ultimate time horizon for non-life firms. The new policies take effect for all financial year-ends on or after 31 December 2018; internal models – modelling of the volatility adjustment and am amended SS on internal models – assessment, […]
The FCA has published a consultation on proposed guidance to help solo-regulated firms draft their Statements of Responsibilities (SoR) and (for enhanced firms) Responsibilities Maps, in preparation for the SMCR extension in December 2019. Although targeted at solo-regulated firms, the FCA notes that the guidance may also be useful for dual-regulated firms preparing or updating […]
As heralded at the end of last year, the FCA has now published two consultation papers that make provision for operations in the event of a ‘hard’ Brexit next March. The first consultation sets out changes to the FCA’s Handbook and to those EU Binding Technical Standards, which, it is proposed, would be incorporated directly […]
The FCA is consulting on the introduction of rules to address issues that could arise where open-ended funds with illiquid asset holdings encounter stressed conditions. Following the outcome of the Brexit referendum in June 2016, a number of such funds had to cease trading for a period of time, following a rush by investors to […]
Following the FCA’s Call for Input into the implementation of the PRIIPs Regulation, the Personal Investment Management and Financial Advice Association (PIMFA) has commented that it agrees with concerns about the practical operation and the detailed KID requirements of the regime. In particular, PIMFA has noted that there is a suggestion that UCITS and other […]
ESMA has updated its FAQs on MiFID 2 and MiFIR on market structures and transparency. New questions look at: how derivatives are classified for transparency purposes amending an existing question on the default liquidity status of bonds the scope of the MiFIR pre-trade transparency waiver market making activities and incentives in stressed trading consitions bulk […]
Following a super-complaint by the Citizens Advice bureau, the CMA has announced that it is seeking views on concerns about long term customers paying more for goods and services. The CMA has identified four key issues to which it invites responses by 14 October 2018: the existence, impact and root causes of a ‘loyalty penalty’ […]
ESMA has published an update to its Q&As on MiFID II and MiFIR, answering questions relating to investor protection and intermediaries. The answers address: best execution: reporting for firms using a venue’s RFQ system to agree a trade; and investment advice on an independent basis: use of a ‘look-through’ approach. EMSA has also formally withdrawn […]
The APP Scams Steering Group, set up by the PSR, is consulting on a draft industry code to reimburse victims of APP scams. The code sets standards for industry to meet to help get appropriate treatment for customers. The code proposes, among other things, that where a consumer has met their requisite level of care […]
The PRA has published a report examining the impact of climate change on banks in terms of financial risk implications. The report notes that 70% of banks recognise that climate change poses financial risks to their business model, for example, and immediately, exposures to mortgaged homes at risk of flooding or by investments in countries […]
As part of its implementation of PSD2, the FCA has published a consultation on matters relating to the Regulatory Technical Standards for strong customer authentication and common and secure open standards of communication (SCA-RTS) (CP18/25). Most of the SCA-RTS provisions come into effect from 14 September 2019, and certain provisions relate to measures that regulators […]
The PRA has published the second part of its consultation on the extension of SM&CR to insurers. These proposed amendment to its rules consist of ‘technical consequential changes’ and ‘minor administrative amendments’ arising from this extension, for example refining the scope of those individuals for whom insurers may consider seeking approval for a PRA senior […]
The Treasury is not planning to include EEA market operators in the proposed arrangements enabling incoming firms and businesses to continue to operate immediately after Brexit. Accordingly if EEA market operators are no longer able to rely on MiFID II passporting rights (eg because a transitional deal is not agreed), they may need to have […]
The ASA has published a ruling which upheld a complaint that the representative APR (RAPR) in an advertisement for Sunny Loans was insufficiently prominent. The advert’s ‘incentives’ that triggered then requirement for the RAPR were the lines ‘At Sunny they don’t charge fees at all’, and ‘Loans with no fees from £100’, delivered in voiceover and […]
The FCA has held its annual public meeting, at which it reviews the year past, talks about key priorities for the year ahead and takes questions from the public. Charles Randell, who was chairing his first Annual Public Meeting, opened the meeting by: noting that the demands of Brexit preparation meant that they were forced […]
Treasury has published further drafts of Brexit-related statutory instruments: the EEA Passport Rights (Amendment, etc, and Transitional Provisions)(EU Exit) Regulations 2018 address the necessary amendments to legislation to repeal passport rights under single market directives consequent on Brexit and legislates for the temporary permissions regime for those who will lose any passports; the draft Payments […]
The August edition of the PRA’s Regulatory Digest includes: news about a New Insurer Start-up Unit. This is a joint initiative with the FCA. The dedicated page on the Bank of England’s website includes a guide to becoming an insurer in the UK, and also a call for feedback on perceived barriers to entry in […]
The Dubai Financial Services Authority (DFSA) and the Singapore Monetary Authority (MAS) have announced that they have entered into an agreement to promote the regulation of innovative businesses. The agreement allows referrals of FinTech firms between the two authorities, provides a framework for sharing information on innovation, and also records a commitment to collaborate on […]
The UK Government has published a presentation (dated 25 July) that sets out a proposed ‘Framework for the UK-EU partnership’, as part of the preparations by the UK Brexit negotiating team. This document sets out a proposed model, that would be based on the principle of autonomy, including autonomous judgement over market access, legislation and […]
In December 2017 the Law Commission confirmed that one of the projects it would be working on was addressing the absence of explicit case law and legislation that has given rise to uncertainty as to the validity of electronic signatures in some cases. Consequently, the Law Commission has now published early conclusions from its review […]
The Financial Stability Board has published the Summary Terms of Reference of a thematic peer review of the implementation of the Legal Entity Identifier. The thematic review seeks feedback from a range of stakeholders on issues such as: awareness and adoption of the LEI in various jurisdictions; types of private sector uses of the LEI; […]
New FCA rules requiring banks to publish information about personal and business current accounts came into force on 15 August 2018. The new rules cover standing data relating to account opening and service availability and major incident metrics. Further rules will require firms to publish information about account opening and debit card replacement from 15 […]
The Co-Chair of the All-Party Parliamentary Group on Fair Business Banking has written to Andrew Bailey of the FCA in the wake of the FCA’s announcement that it was unable to take further action in relation to its investigation of RBS’ treatment of business customers. The letter calls for further information and action on a […]
The industry body UK Finance has developed a voluntary ‘How to’ guide on compliance with the requirements of the Funds Transfer Regulation (also referred to as the Wire Transfer Regulation). The guide aims to assist with an industry-wide harmonised approach to compliance, thereby increasing the efficiency of payment processing. The guidance’s stated aim is to […]
The FCA is progressing with its statutory obligation to review the CCA, by publishing an interim report on its review. The interim report sets out the FCA’s initial views on whether the repeal of CCA provisions would adversely affect consumers. Comments are requested by 2 November 2018; the final report must be delivered by 1 April 2019. […]
The International Association of Insurance Supervisors has published a draft issues paper on the increasing use of digital technology in insurance and its potential impact on consumer outcomes. The focus of the paper is on product design, underwriting and distribution. The paper notes the potential for advances in digitalisation to impact fair customer outcomes, including […]