Regulation (EU) 2019/2099 amending EMIR (commonly known as EMIR 2.2) has been published in the OJ. The objective of amendments introduced by this regulation includes the establishment of a CCP supervisory committee to...
Author - Roseyna Jahangir
Roseyna Jahangir
EIOPA proposes Guidelines for ICT security and governance
In the context of the increasing complexity of ICT and frequency of cyber incidents with a material detrimental impact on operations, EIOPA has published a consultation paper on proposed Guidelines on Information and...
BIS considering prudential treatment for crypto-assets
BIS is inviting responses to a discussion paper on the design of a prudential treatment for crypto-assets, in recognition of the growth in these types of products and related services, and consequential and resulting...
FSB publishes BigTech and cloud service provider reports
The Financial Stability Board (FSB) has published two reports considering the financial stability implications from market developments in BigTech in finance, and from third party dependencies in cloud services. The...
Regulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
PRA to modernise outsourcing and risk management expectations
In the light of the development of various European Guidelines regarding outsourcing requirements, as well as recent practical ‘failures’ such as IT systems going down, the PRA is consulting on proposals to...
Risk management guidance published by professional bodies association
The Risk Coalition, a UK association comprising not-for profit professional bodies and membership organisations and focusing on raising the standards of risk management, has published a guidance document for board risk...
CMA confirms amendment of Retail Banking Market Investigation Order 2017
Following the CMA’s consultation on amending the Retail Banking Market Investigation Order 2017, the CMA has confirmed the removal of the provisions in and related to Part 6 that are effectively duplicative of new...
PRA fines banks £43.9m for regulatory reporting failures
The PRA has announced that a combined penalty has been imposed on three Citi entities of £43.9 million. The penalty arises from failings in their internal controls and governance arrangements, resulting in incomplete...
FCA publishes ‘approving financial promotions’ webpage
In the light of its new temporary restrictions on the financial promotion of ‘mini-bonds’, the FCA has provided guidance for firms approving the financial promotions of unauthorised persons. The new page on...
FCA takes action on sale of mini-bonds to retail investors
In the wake of recent financial firm scandals leading to investor losses, such as London Capital and Finance, the FCA has announced that it is going to use its powers to introduce temporary rules without consultation...
BIS report on Open Banking and APIs
BIS has published a report that looks at the growing trend in many jurisdictions towards an open banking. In particular, the report focuses on those aspects relating to customer-permissioned data sharing, ie where...
FCA addresses LIBOR transition issues
As part of its work on the transition from LIBOR from 2021, the FCA has published a webpage covering conduct risks arising from the transition. The matters covered are set out in question and answer format, addressing...
UK Jurisdiction Taskforce confirms legal status of cryptoassets and smart contracts under English law
The UK Jurisdiction Taskforce, a group set up by the industry-led LawTech Delivery Panel, has published the results of a public consultation and legal study that considered several key questions for determining the...
EPC 2019 SEPA scheme rulebooks in force
The European Payments Council has confirmed that its rulebooks covering: SEPA Credit Transfers, SEPA Instant Credit Transfers, SEPA Direct Debits, and SEPA Direct Debits Business-to-Business, came into force from 17...
Investment Association agrees ESG definitions set
The Investment Association (IA) has announced the launch of an industry-wide responsible investment framework and supplementary definitions. This initiative has been developed to assist in clarity and consistency when...
PRA tells GI firms of focus areas
The PRA has published a ‘Dear CEO’ letter detailing the PRA’s priority areas of supervisory focus for general insurance firms. These include: Reserve adequacy and associated reserving governance and...
EBA reports on potential barriers to cross-border banking and payment services
The EBA has published a report identifying potential impediments to the cross-border provision of banking and payment services in the EU. The report was developed under the EBA’s FinTech Roadmap, and calls on the...
Consultation on legal entity identifiers for general government entities
The Regulatory Oversight Committee for the legal identity identifier (LEI ROC) has opened a consultation on proposals for LEI Eligibility for General Government Entities. Questions range from whether there is a need...
FCA confirms PSD2 SCA RTS standards to apply in event of no-deal Brexit
The FCA has published a policy statement setting out UK regulatory technical standards and Handbook changes that would apply to customer authentication if the UK were to leave the EU on ‘no deal’ terms. The...
FMLC evaluates exchange tokens
The Financial Markets Law Commission has published a report in which it evaluates some of the live issues and considerations in relation to exchange tokens and virtual currencies. The report provides an overview of...
ESAs issue supervisory statement on PRIIPs Regulation
The European Supervisory Authorities have issued guidance to NCAs on the scope of the application of the PRIIPs Regulation to bond markets. In particular, the supervisory statement sets out considerations on the extent ...
EBA recommends enhanced online disclosure requirements
The EBA has issued an Opinion directed to the EC, setting out recommendations to revise the scope and consistency of disclosure requirements in EU law to take account of the increasing use of digital marketing channels...
SRB consults on banks resolvability best practice
The Single Resolution Board has opened a public consultation on its proposed ‘Expectations for Banks’, which sets out at a general level the capabilities banks will be expected to demonstrate in order to...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
Goods Mortgages Bill starts passage through Parliament
The long awaited Goods Mortgages Bill has completed its first reading in the House of Lords. In its consultation on the draft bill, HM Treasury described it as: providing increased protection for consumers who use goods...
FCA Guidance on new credit broking exemption for registered social landlords
The FCA has updated FG18/6, which provides specific guidance for registered social landlords on when they may be carrying on regulated activities, to reflect the amendment introduced earlier this year to the Financial...
Regulatory risks of Stablecoins in focus
The emergence of global stablecoins has been a focus point over the past few days, with the FSB, FATF and the G7 Working Group on Stablecoins all publishing statements on the impact and risks of the development of these...
ESAs consult on changes to PRIIPs KID Regulation
The EBA, EIOPA and ESMA have published a joint consultation on proposed amendments to the PRIIPs Delegated Regulation. The proposed measures are intended to, allow the appropriate application of the PRIIPs KID by UCITS...
EU and Japan hold first joint financial regulatory forum
The Joint EU-Japan financial regulatory forum has held its inaugural meeting. Topics covered at the meeting included: the regulatory cooperation framework under the Japan-EU Economic Partnership Agreement, and the...
EBA publishes further Opinion on SCA implementation deadline
Following the EBA Opinion on the implementation of SCA requirements under PSD2, and the indication of a possible grace period at the discretion of NCAs, the EBA has published a further Opinion providing further details...
FCA publishes feedback statement on climate change disclosures
The FCA has published its proposals for its future work on climate change and green finance, following responses to its Discussion Paper in 2018 . In its work, the FCA will be focusing on three outcomes: Issuers provide...
FCA provides Brexit preparations update for firms
The FCA has published an update on the steps firms will be expected to take in the event that there is a hard Brexit. In particular, the FCA reminds EEA passporting firms of the need to notify the FCA by 30 October if...
SMCR conversion notification – FCA webpage provides explanation
The FCA has published a new webpage setting out specific guidance for the solo-regulated firms that have to complete Form K as part of their preparation for the start of SMCR. The deadline for submission of Form K is...
Payment Systems Regulator invites comments on LINK Specific Direction 8
The PSR is asking for views to be submitted on the operation of Specific Direction 8. This was given to LINK at the end of last year, and is focused on the maintenance of a broad geographic spread of free-to-use ATMs...
FCA imposes £15.4m file for Principles breaches
The FCA has announced that it fined an interdealer broker, Tullett Prebon, £15.4 million, due to ‘serious’ breaches of: Principle 2, by virtue of failing to conduct their business with due skill, care and...
EIOPA publishes thematic review of, and warning to, travel insurance market
EIOPA has concluded a thematic review focusing on travel insurance products, in particular with a view to identifying sources of potential conduct risk and consumer detriment. The key findings of its review included:...
BoE to stress test for climate change risks
The Governor of the BoE addressed the inaugural Task Force on Climate-related Financial Disclosures (TCFD) summit in Tokyo yesterday. In his speech, Mr Carney warned of the growing challenges climate change brings, and...
FCA publishes insurance pricing report
The FCA published its interim report of its market study into the pricing of home and motor insurance on 4 October. The report sets out the FCA’s initial findings and possible remedies to tackle the issues...
PRA strengthens individual accountability expectations
The PRA has published PS20/19, ‘Strengthening individual accountability: resolution assessments and reporting amendments’. This Policy Statement sets out: feedback to responses to CP 12/19, ‘Strengthening...
Estimated £3.4m redress due to unclear interest term in mortgage agreement
The FCA has published an undertaking from the Co-operative Bank (t/a Platform), relating to a term in its mortgage agreement, and agreeing to amend the term on the grounds that it contravened the transparency...
EC sustainable finance classification system to be developed
The Council of the European Union has agreed a position on the proposed EU-wide sustainable finance taxonomy regulation. This would develop a common language for assessing what economic activities can be considered...
Banking industry commits to climate change action
130 international banks, representing one third of the global banking sector by NAV, have signed the new Principles for Responsible Banking. This initiative commits their firms to strategically align their business...
EBA starts 2019 transparency exercise
The EBA has launched this year’s transparency exercise, which will lead to the release in November of up to 2.2 million data points collated from EU supervisory reporting data. The data that will be released for...
Industry associations raise concerns about timetable for sustainability disclosures
A group of European industry associations have written to the European Commission raising concerns about the timing for implementation of the Regulation on disclosures relating to sustainable investments and...
EIOPA publishes evaluation of Cyber Risk for Insurers
EIOPA has published the findings of its study of the cyber insurance market, covering both cybersecurity challenges and cyber underwriting practices. To produce its report, EIOPA surveyed 41 large (re)insurance groups...
FCA updates on Brexit preparations
In a recent speech, Andrew Bailey, the chief executive of the FCA, provided an update on the FCA’s state of preparation for Brexit, and in particular for a no-deal, no-transition Brexit scenario. However, while Mr...
Investment Association guidance on authenticity of electronic instructions
The Investment Association has published guidance for operators of UK-authorised collective investment schemes on ‘reasonable steps’ that may be taken to ensure the authenticity of electronic instructions...
CMA consults on amending Retail Banking Market Investigation Order 2017
In the light of the forthcoming FCA rules on overdraft notifications, the CMA is consulting on a provision decision to vary the Retail Banking Market Investigation Order 2017, to remove provisions in Part 6 that are...
PRA revises Branch Returns for international banks
The PRA has published Policy Statement 17/19, confirming changes to the Return that branches of international banks must complete, and associated reporting guidance. The first revised Returns will need to be submitted...
PRA consults on update to PIN process
The PRA is proposing amendments to its Pre-Issuance Notification regime for capital instruments within the scope of CRR. The proposed amendments reflect changes arising from CRR II, and also the PRA’s experience...
Payment Systems Regulator working on widening data access
In the PSR’s response to its Data in the Payments Industry discussion paper, the regulator heralds work with Pay.UK on opening up access to data in the UK’s new payments architecture. The aims of such a...
EBA to provide guidance on use of CRR ‘legacy instruments’
The EBA has confirmed that it will be developing communications aimed at providing clarity on the appropriate treatment of capital instruments that, for the purposes of the CRR, are currently classified as ‘legacy...
FCA postpones wholesale market data Call for Input
The FCA has announced that they are postponing the Call for Input they had planned for for Q2 2019/20, in the light of the impact of Brexit preparations on firms, and in particular on those individuals in firms that...
ECB speaks about work and priorities for year ahead
The Chair of the Supervisory Board of the ECB has addressed the European Parliament’s Economic and Monetary Affairs Committee at its first ordinary hearing in 2019. Comments covered: key supervisory priorities for...
EC calls for action with publication of no-deal Brexit checklist
The EC is urging EU businesses and citizens to consider whether they are prepared for the UK leaving the UK on ‘no-deal’ terms on 31 October, reminding them in this scenario there will be no transition...
PRA consults on updates to ISPVs authorisation and supervision approach
The PRA is consulting on changes to certain aspects in its approach to the authorisation and supervision of ISPVs, in the light of experience gained of operating the regime since its introduction. The proposed changes...
Securitisation Regulation added to Single Rulebook
The EBA has added the Securitisation Regulation and associated RTS and Guidance to its online Interactive Single Rulebook. Consequently the Q&A tool is likewise extended to include this Regulation.
FCA publishes SCA webpage
As the official deadline approaches for SCA implementation, albeit mitigated by the conditional extension agreed with UK Finance, the FCA has published an overview page setting out the state of play for industry...
Big Data Analytics consultation by IAIS
The IAIS has published a draft issues paper on the use of Big Data Analytics in Insurance. The draft issues paper focuses on potential benefits and risks to consumers of the use of personal and other data by insurers...
European Payments Council urges no-deal Brexit preparation
Earlier this year, the European Payments Council (EPC) approved (on the application of UK Finance) the continued participation by UK PSPs in the SEPA payment schemes in the event of UK withdrawal from the EU on a no...
ESMA publishes Guidelines on funds liquidity stress testing
ESMA has published stress testing Guidelines that build upon and amplify the requirements of AIFMD and UCITS Directive. The Guidelines are directed at fund managers, and will require them to stress test the assets and...
FCA ‘Dear CEO’ letter on SCA published
The FCA has sent a Dear CEO letter to payment firms within the scope of PSD2 SCA, confirming the plan for an 18 month phased implementation of SCA for card-not-present e-commerce transactions. The FCA’s letter...
Consultation on restricting use of credit cards for gambling
The Gambling Commission is consulting on whether to prohibit or restrict the use of credit cards for online gambling. The basis for this proposal lies in evidence they have received suggesting there are risks of...
ECB calls for step up in Brexit preparation
ECB is concerned that banks have not progressed as far with their Brexit planning as they had originally indicated they would. ECB notes that it considers the risks of a no-deal Brexit to the overall euro area financial...
Deposit Guarantee Schemes Directive Opinion published
The EBA has published the Opinion on the implementation of the Deposit Guarantee Schemes Directive (DGSD) that it is mandated to submit under article 19(6) of DGSD. The proposals set out in the Opinion include: a...
Feedback on EBA Single Rulebook published
The EBA has published the results of a review exercise it conducted to assess the utility of the Single Rulebook. As might be expected, overall feedback from the competent authorities and selected industry...
EBA publishes Basel III implementation analyses
In the run up to full implementation of Basel III in the EU, the EBA has published an implementation impact study and policy advice set, covering securities financing transactions, operational risk, output floor and...
ABI updates guidelines addressing customers with criminal convictions
The ABI has published updated guidelines aimed at helping insurers ensure they are treating fairly customers who have convictions or related offences. The existing guidelines have been reviewed to take account of...
PRA sets out their approach to enforcement
In a recent speech, Miles Bake, head of the PRA’s enforcement and litigation legal division, provided insight into: the PRA’s rationale for enforcement recent examples of enforcement action key themes; and...
FCA’s Final Guidance on Cryptoassets published
Having issued a consultation earlier this year on its proposed guidance on categorisation of cryptoassets and the perimeter of regulated activities, the FCA has now published its finalised guidance. The FCA notes that...
Publication of AG Opinion on consequence of removing unfair terms in consumer contracts
The European Court of Justice has published the AG’s Opinion in a case concerning the effect of a declaration of unfair terms for the purposes of the Unfair Contract Terms Directive (in UK law as the Consumer...
BoE and PRA confirm Resolvability Assessment Framework
Following the consultation at the end of last year, the Bank of England and PRA have published the final version of their proposals for resolvability. The Resolvability Assessment Framework applies to certain UK banks...
EC sets out position statement on equivalence decisions
The EC has published a communication about equivalence decisions (the timing of which is no doubt entirely unrelated to the ascension of pro-Brexit Boris Johnson to the Prime Ministership of the UK). The communication...
Call for views on Access to Cash research
The Payment Systems Regulator has published the results of its commissioned research into how people and businesses are using cash in today’s landscape. It found that despite the transition to and increase in...
‘General good’ report published by EIOPA
EIOPA has conducted a review of the approaches of NCA to ‘greater good’ rules. The findings of the report included the assessment that divergence between Member States in relation to, in particular, the...
PRA consults on group own funds for insurance firms
The PRA is consulting on its approach to the determination of the availability of subordinated liabilities and preference shares in group own funds under Solvency II. Views on the PRA’s statements regarding...
EIOPA discussion paper on insurance stress testing
EIOPA is inviting views from stakeholders on the methodological principles of insurance stress testing. The discussion paper considers aspects of stress tests such as: process and objectives; scope scenario design; and...
EBA publishes updated report on CET1 instruments
As part of its mandate under CRR to monitor and report on capital instruments, the EBA has published an update to its CET1 Report along with an updated list of instruments. The EBA notes the inclusion of 16 new forms...
Updated FCA and PRA MoU published
The FCA and the PRA have updated the MoU setting out the relationship between the two regulators and the way in which they respectively operate, particularly in common areas. The MoU was first published at the time of...
EBA FinTech report published
The EBA has analysed the regulatory landscape for FinTech firms, both in terms of activities around the regulatory perimeter and within authorisation. The report sets out the findings of this analysis, including...
FCA publishes feedback statement on fair pricing
In the context of ongoing work by both the FCA and CMA on fair pricing and loyalty penalties, the FCA has published a feedback statement setting out a framework for how it will evaluate the fairness of a given pricing...
Call for evidence on impact of MiFID II disclosure requirements
ESMA has opened a call for evidence regarding the impact of MiFID II disclosure requirements in relation to inducements, and costs and charges. The responses will form part of ESMA’s assessment of the...
FCA to help travel insurance customers with pre-existing medical conditions
The FCA has launched a consultation on a new ‘signposting’ rule, aimed at helping customers with pre-existing medical conditions (PEMC) purchase travel insurance. The rule would specify circumstances in...
Lending Standards Board confirms threshold increase for small businesses
The Lending Standards Board (LSB) has announced that from the Standards of Lending Practice for business customers are to apply to businesses with a turnover of up to £25 million, from the previous £6.5 million...
FCA discusses AI in financial services
In a recent speech, Christopher Woolard of the FCA considered three lenses through which the FCA views the issues relating to AI: what are new, and what are existing issues; how to ensure that AI creates value for...
MiFID II compliance function consultation published
ESMA is consulting on draft guidelines regarding the compliance function under MiFID. The proposals build on the existing 2012 guidelines by, among other aspects, addressing the changes MiFID II made to the compliance...
ESMA consults on harmonisation of performance fees under UCITS Directive
ESMA has published draft guidelines addressing the way in which performance fees can be charged to a UCITS and its investors. The areas covered by the draft guidelines include the circumstances in which a performance...
FCA invites feedback on Gabriel replacement
The FCA has announced that it is planning a replacement for Gabriel, its data collection system. It has therefore asked current Gabriel users to complete a feedback survey to provide views that can be considered in the...
ESA evaluates cross-border supervision of retail financial services
A report published by the Joint Committee of European Supervisory Authorities, ie the EBA, ESMA and EIOPA, has reviewed the current landscape of cross-border supervision, in particular in the light of the regulatory...
BEIS review of Consumer Contracts (Information, Cancellation and Additional Charges) Regulations
The Department of Business, Energy and Industrial Strategy has completed its 5 year review of the Consumer Contracts Regulations. While these regulations broadly exclude financial services, they may be engaged where...
EBA evaluates FinTech’s impact on business models of payment and electronic money institutions
The EBA has published a thematic report evaluating the impact of FinTech on the payment institution (PI) and electronic money institutions’ (EMI) business models. The report reviews key trends and drivers in the...
Irish regulator fines bank for CRD IV failings
The Irish Central Bank has imposed a €5.9 million fine on Wells Fargo Bank International Unlimited Company for breaches of regulatory reporting and governance requirements under CRD IV, as implemented in Ireland. The...
CMA censures Barclays for SME undertaking breach
CMA has censured Barclays, and directed it to pay £1,910.55 to affected SMEs for making them pay for accounts they did not need. The bank had bundled products together, which had the effect of preventing SME customers ...
UK Finance publishes payment account service guide
On 1 July, UK Finance published a voluntary good practice guide to help credit institutions providing access to payment account services and those seeking to access such accounts. The guide recommends that: all relevant...
UK financial regulators publish climate change Joint Declaration
The FCA, PRA, TPR and FRC have jointly issued a declaration reiterating their commitment to work on the enhancement of climate-related disclosures. The Joint Declaration also welcomes the UK’s Green Finance...
UK government launch Green Finance Strategy
HM Treasury and BEIS have launched a Green Finance Strategy to meet the government’s target of reducing emissions to net zero by 2050, to boost sustainable investment, and to help make the UK a ‘green...
EIOPA consults on cloud outsourcing guidelines
EIOPA is consulting on draft guidelines regarding outsourcing to cloud service providers. The areas covered by the draft guidelines include: guidance on determining whether or not cloud services should be considered to...
ECB will fight post-Brexit market fragmentation
Benoît Cœuré, a member of the executive board of the ECB, recently spoke about priorities and challenges facing European capital markets. He asserted that finance market fragmentation has become an increasingly...