The Treasury Committee has published its report on the future framework for regulation of financial services. The report considers the future of financial services following the end of the Brexit transition period and...
Category - Brexit
Lucy HadrillFCA speaks on tough regulation and the future
Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...
Emma RadmoreTaskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
Prime Minister speaks with financial services leaders
Boris Johnson hosted a virtual roundtable with financial services leaders alongside the Chancellor Rishi Sunak and the BoE Governor Andrew Bailey. Topics discussed include: boosting home ownership by transforming...
BoE speech: responsible openness in the insurance sector
BoE’s Anna Sweeney (Executive Director, Insurance) delivered a speech at the Association of British Insurers Prudential Regulation Webinar on how the UK will regulate insurance services post-Brexit. The speech...
Update on AIFMD Delegation Rules
The EU has been saying for some time that it wishes to review the rules by which EU AIFMs may delegate investment management to entities outside of the EU. In its August 2020 letter regarding the review of the AIFMD...
FIN. TeamFCA consults on changes to UK MiFID firm organisational requirements
FCA is consulting, as part of its wider capital markets reform work, on a set of changes to the conduct and organisational requirements on research and best execution. The aim is that the rules continue to achieve...
PSR consults on Brexit changes to IFR guidance
PSR has opened a consultation into changes to its guidance on the Interchange Fee Regulation (IFR) as a result of Brexit and changes to the regulatory framework. Following Brexit, the IFR is now retained EU law, which...
Duncan ScottFCA speech: regulating the UK as a global financial centre
Speaking at the City & Financial Global virtual conference, Nausicaa Delfas, the FCA’s Executive Director of International, stressed that the UK’s departure from the EU is an opportunity the FCA intends...
FCA issues reminder to consumer credit firms about post-Brexit disclosure changes
FCA has issued a statement and published an updated webpage to remind firms subject to regulations 8, 10 and 11 of the Disclosure Regulations 2010 and the corresponding rules in the FCA Handbook of the changes they will...
UK/EU Technical Discussions on MoU concluded
Treasury has announced that the technical discussions on the text of the UK/EU financial services regulatory MoU have concluded. Now the formal steps needed to actually sign up to the MoU can hopefully happen quickly.
CMA publishes annual plan for 2021/2022
Following consultation, the CMA has now published its annual plan for 2021-2022. The CMA has identified four key themes on which it intends to concentrate: protecting consumers and driving recovery during and after the...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
Government provides update on Australia free trade negotiations
The Department for International Trade published a press release with an update on the ongoing negotiation of a free trade agreement between the UK and Australia. The fourth round of talks took place between 22 February...
FS Bill at Committee Stage in Lords – including new FTP offence
The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are: an requirement for a member of the FCA governing body to have...
FCA updates TPR pages
FCA has updated its website to help firms in the TPR understand what is coming next. Among other things, it has started to email firms about their landing slots. It cautions that firms should not apply before their...
Treasury publishes Kalifa Fintech Review
Treasury has published the Kalifa Review of UK Fintech, which launched last summer. The report sets out proposals for the UK to build on its existing strengths in the sector. The review looks at the development...
PRA clarifies credit risk approach
PRA has clarified its approach to published EBA Guidelines and EU RTS in relation to credit risk following the end of the Brexit transition period. PRA had thought that the RTS on economic downturn would have been made...
Emma RadmoreUK applies to join CPTPP
The UK government has submitted a formal request to join one of the world’s largest free-trade areas, the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The move would deepen the UK’s...
UK and Switzerland in talks on better FS cooperation
The UK and Switzerland are planning a comprehensive mutual recognition agreement in relation to financial services. The plan is for it to cover insurance, banking, asset management, capital markets and market...
FCA consults on changes to SCA-RTS and payment services perimeter guidance
FCA is consulting on: changes to the RTS on SCA. Key changes will include: a new exemption from SCA when customers access their information through an AISP; mandating the use of APIs by ASPSPs to faciliate TPP access to...
FCA updates on EU MoUs
FCA has updated its website to reflect the Memoranda of Understanding it has signed with various European authorities on co-operation and exchange of information. It has MoUs with ESMA, EIOPA and EBA as well as...
ESMA reminds firms about MiFID 2 reverse solicitation and Brexit
ESMA has written to firms noting that some “questionable practices” around reverse solicitation in the context of MiFID 2 have become apparent since Brexit. It gives as an example, pop up “I...
Regulators confirm Gibraltar passporting
PRA and FCA have confirmed that UK and Gibraltar firms will be able to continue to apply for and use a passport to do business in the other’s jurisdiction until, probably, the end of 2021.
Brexit “Trade and Cooperation” Agreement – FS impact
The Trade and Cooperation Agreement finally agreed between the UK and the EU contains very little definitive provision for financial services. As expected, there is no continuation of anything approaching the single...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
FCA finalises all Brexit instruments and TTP
FCA has published its final Brexit rulebook onshoring instruments and guidance, and directions under its Temporary Transitional Power. The final instruments are largely unchanged from the “near final”...
PRA confirms rules on changes before end of transition
PRA and the BoE have confirmed their final and near-final policies setting out: EU exit instruments; non-binding materials; the PRA and Bank transitional direction and guidance documents – including on Solvency...
BoE Financial Stability Report
The Bank of England published the Financial Stability Report for December. The report sets out the Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or...
FCA makes new rules
At FCA’s latest board meeting, it made a number of Brexit-related instruments, including: general amendments, including amendments to BTS to check they operate effectively in UK law; SMCR and approved person...
FCA publishes Brexit FAQs
FCA has created a new page on its website with FAQs on Brexit. The website draws together questions on:
the TPR
passporting
operating and the TPP and
transaction reporting changes
PRA consults on designating firms within certain banking UK consolidation groups
The PRA has published a consultation paper setting out its proposed approach to designating entities within certain banking UK consolidation groups as responsible for ensuring that consolidated prudential requirements...
FCA updates on MAR and Brexit
The FCA has updated its website to explain what will happen to the EU Market Abuse Regulation (EU MAR) after 31 December 2020. At the end of the transition period, EU MAR will be onshored into UK law by virtue of the...
FCA launches UK Benchmarks Register
In preparation for the end of the Brexit transition period, FCA has announced the launch of the new UK Benchmarks Register. The Register, which can be accessed from 11pm on 31 December 2020, will replace the ESMA...
FCA reminds firms to be ready for Brexit
FCA has reminded firms they have less than a month before the end of the transition period. It highlights: the changed rules that will apply from 1 January 2021, which are not subject to the Temporary Transitional...
PRA confirms CRDV statement date
PRA has issued a statement explaining to firms when they can expect further information on the implementation of CRD V. PRA issued two separate consultations, the later of which closed on 17 November. It plans to...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
Regulators make Brexit reporting statements
ESMA and FCA have published statements on: the impact of the end of the transition period on the trading obligation for derivatives under MiFIR; the reporting of securities financing transactions under the UK SFTR;...
Regulators update on FS Bill reforms
Treasury, PRA and FCA have updated the industry on the planned timelines for the introduction of the UK Investment Firms Prudential Regime and implementation of remaining Basel 3 reforms. The targeted implementation...
Government takes equivalence decisions
The Treasury has announced its first set of equivalence decisions for EEA measures. The decisions relate to parts of EMIR, the CRR, Solvency 2, the CSDR, the Benchmarks Regulation, the CRA Regulation, the SSR and CCPs...
Government heralds future financial services regulation
Rishi Sunak has announced a range of measures the UK is now to take to ensure the financial services industry moves forward. In a speech, he praised all the measures the industry has taken to date and through the...
EBA reminds firms to finalise Brexit plans
EBA has reminded firms that, from the end of the transition period, UK firms can no longer provide services to EU customers on a passporting basis. It notes that: UK financial institutions offering services to EU...
FCA updates on EEA regulator Brexit guidance
FCA has put together an information page sharing links to the websites of EEA regulators on which they have published guidance about the effects of Brexit on UK firms operating in their jurisdictions. Some of the pages...
UK Finance reports on post-Brexit sanctions SIs
UK Finance has published the results of a study it has carried out in relation to UK Sanctions statutory instruments, as they will look at the end of the transition period, to assess what differences there will be from...
FCA outlines approach on share trading obligation
The FCA has set out its approach to the share trading obligation (STO) at the end of the Brexit transition period, if mutual equivalence is not agreed. The approach is intended to ensure open markets and competition...
Committee calls for more evidence on post-Brexit FS
The House of Lords EU sub-committee has called for more evidence on financial services after Brexit. It now wants to focus on the priorities for the future relationship between the UK and EU and the consequences if...
Financial Regulatory Working Group issues joint statement on UK-US
The Financial Regulatory Working Group’s meeting on 20 October was the first since the UK left the EU. The meeting focussed on five key themes: the economic response to, and potential financial stability impacts...
FCA confirms new rules
FCA has issued a Handbook Notice summarising rule changes finalised over recent months. Key among them are: the new section on COBS (22.6) to ban derivatives and ETNs that reference certain cryptoassets to be marketed...
UK and Japan sign free trade agreement
The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) was signed on 23 October marking the first agreement that the UK has secured as an independent trading nation. The deal is hoped to boost UK-Japan trade...
Regulators update insurers and others on Brexit expectations
PRA and FCA have written a joint letter to CEOs of insurance firms on the importance of being prepared for the end of the transition period, and FCA has also more generally updated its website. The regulators stress the...
HMT consults on financial services regulatory framework post-Brexit
HM Treasury has published a consultation paper in relation to Phase II of its Financial Services Future Regulatory Framework Review. HMT is seeking views on proposals for the financial services regulatory framework post...
Lords responds to HMT on equivalence
Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...
EIOPA calls on insurance industry to be ready for end of transition
EIOPA has reminded the insurance sector that as of 31 December 2020, Solvency II and the IDD will no longer apply to the UK, and that the industry must be prepared for the consequences of UK and Gibraltar firms becoming...
HMT writes to House of Lords on equivalence
The Economic Secretary to HM Treasury, John Glen MP, has responded to the House of Lords EU Services Sub-Committee’s queries on UK-EU regulatory cooperation for UK financial services post-Brexit. In its letter to...
FPC updates on stability risks
The FPC has concluded that Covid-19 continues to put strain on households and businesses, but that banks are strong enough to keep supporting them as a result of the actions to strengthen the system taken after the 2008...
FCA updates Handbook for end of transition
FCA has published an updated version of its Handbook to reflect the rules that will apply at the end of the Brexit transition period, and explained how it will use its Temporary Transitional Power. Broadly, FCA plans to...
FCA updates on Brexit preparations
FCA has urged firms to make sure they have considered how the end of the transition period will impact them and their customers. It has updated its webpage to include stressing that firms with any client money or...
FCA reopens TPR window and tells fund managers to update
FCA has reopened the TPR window for EEA firms and fund managers that have not previously done so to make notifications if they wish to use the regime. The window will close on 30 December. Fund managers are also able...
FCA consults on international firm regulation
FCA is consulting on its approach to authorisation and supervision of international firms operating in the UK. The approach will apply to EEA firms seeking authorisation as they exit the TPR, and firms from non-EEA...
PRA consults on pre-Brexit changes
BoE and PRA have issued a consultation on changes to its rules before the end of the transition period. The paper covers: an update on the use of BoE and PRA’s intended use of the temporary transitional power;...
Regulatory Initiatives Grid heralds return to “normality”
FCA has published the second edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. The grid, first published in May, is aimed to help firms see upcoming regulatory work...
UK and Japan strike free trade deal
The Government has announced a new free trade agreement between the UK and Japan, which it says will increase trade with Japan by an estimated £15.2 bn. For financial services, there will be improved market access and...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation mainly covers: onshoring changes to the Handbook or technical changes FCA will need to make as a result of onshoring. It asks for comment on the bulk of the changes by 4...
PRA writes to firms on “operational readiness” for TPR
PRA has written to CEOs of all firms preparing to enter the TPR at the end of the transition period. The letter notes that all firms that have submitted a notification or application for authorisation will automatically...
FCA to reopen TPR window
FCA has updated its website pages on the Temporary Permissions Regime. It plans to reopen the TPR notification window on 30 September to allow for further new notifications, and to allow fund managers to update...
European Commission publishes Brexit Readiness Checklist for companies
The European Commission (“the Commission“) has published a ‘Brexit Readiness Checklist’ which aims to help EU companies doing business in the UK and/or UK companies doing business in the EU to...
Amelia GreenFMLC responds on departure from EU case law
FMLC has offered its views to the Ministry of Justice on whether courts and tribunals other than the Supreme Court and High Court of Judiciary should have the ability to depart from retained EU lase law after the end of...
High Court gives reasons for Part VII approval
The High Court has handed down its judgment on the Part VII transfer application between Rothesay Life PLC and Monument Life Insurance DAC. On 31 July, the court approved the transfer of around 400 in-force life...
BoE released updated financial stability information
BoE has published: a summary of the latest meeting of the Financial Policy Committee, which looked at how the UK financial system has performed during the pandemic. It notes how the system has met the initial surge in...
Treasury amends PRIIPs requirements
Treasury has published a policy statement on how it proposes to amend the PRIIPs Regulation as it onshores it. It plans early changes to address the most pressing concerns and to ensure the regime provides more...
FCA Guide: Prepare Your Firm for Brexit
The Brexit transition period is currently operating until 31 December 2020. The FCA have produced a list of key considerations to help firms consider how they will be impacted by this and what action they may need to...
Lloyd’s updates on Part VII and Brexit
Lloyd’s has confirmed that, as of the end of the Transition Period on 31 December, Members’ policies will be transferred to Lloyd’s Insurance Company SA. The affected policies will be those where all...
MPs want Brexit information
The EU Services Sub-Committee has written to John Glen asking for more detail on: UK/EU equivalence – it wants to now when the Government will be publishing its decisions. The Government had said it has finished...
Treasury consults on CRDV, prudential regime and Brexit
Treasury is consulting on the UK’s approach to implementation of those parts of CRD V that fall to be implemented into national law by 28 December. The Government has long said that it will transpose all EU...
Commission updates Brexit preparedness notices
The Commission has added more notices to stakeholders on preparing for Brexit and the consequences of loss of the passport. Among the notices now updated are those for: asset management consumer protection credit rating...
Commission says no MIFIR equivalence by year end
The European Commission has published a Communication to the EP, Council, EESC and the Committee of the Regions on preparations for the end of the transition period. The Communication looks at: changes happening in any...
Commission begins Brexit warning notices
The European Commission has stated the process of sending Stakeholder Preparedness Notices, to summarise for stakeholders the effect of Brexit on over 100 sectors. It had originally published these notices during...
FCA reformats Brexit advice
FCA has revamped its information page on Brexit. The page gives advice to firms on what they should be considering in preparation for the end of the transition period. Much of the information is not news, and includes a...
FCA to reopen TPR
FCA has updated its webpages on the temporary permissions regime, to note it will reopen the TPR windows for inbound passporting EEA firms and funds on 30 September, and will also allow fund managers to update their...
Treasury agrees future UK/Switzerland relationship
Rishi Sunak has confirmed that he and his Swiss counterpart have signed an agreement to develop a deep agreement on financial services once the Treasury acquires its new “equivalence” powers after the end of...
Barnier speaks on Brexit
Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations. He noted the desire to give the EU/UK negotiations “every chance of succeeding”. He noted he had rescheduled many other meetings...
FCA speaks on response to Covid-19 and Brexit
Nausicaa Delfas has spoken on FCA’s national and international response to Covid-19 and Brexit. On Covid-19, she noted: FCA’s priority to keep markets open and orderly, help firms continue to operate...
Regulator Covid-19 update 6 May: SMCR, financial crime systems and other updates
On 6 May: FCA published a modification by consent and a direction to enable all solo-regulated firms to arrange for an unapproved senior manager to cover SMFs in an emergency, from the normal 12 weeks to 36 weeks, as...
EC publishes latest version of the EU/UK Partnership Agreement
The European Commission published the latest version of the EU/UK Partnership Agreement on 18 March 2020. The text follows consultation between the European Parliament and Council and it aims to provide a tool to...