FIN.

Category - Investments

Financial services after Brexit updates

The EU Financial Affairs Sub-committee has opened an inquiry into financial services after Brexit and has been taking evidence. Most recently it has been questioning the BoE and FCA.  They largely discussed the key...

EP publishes negotiating mandate with UK

The European Parliament has published its proposed mandate for a new partnership with the UK.  The declaration acknowledges that the “close relationship” that will subsist and which, according to the...

FCA updates authorisation application fee

FCA has increased the application fee for moderately complex applications to £5,500 – so the fee tranches for standard financial services applications (excluding asset managers and consumer credit firms) are...

Up next from FCA

The latest Policy Development Update highlights the following publications before the end of Q1 2020: policy statement on fees and levies; consultation on exit fees in investment platforms and comparable firms;...

ESMA outlines sustainable finance strategy

On 6 February, ESMA published its sustainable finance strategy which sets out how ESMA plans to focus on sustainability. ESMA’s key priorities include: completing the regulatory framework on transparency...

FCA writes strategy letter to platforms

FCA’s latest  portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...

ESMA takes action on suitability

ESMA is launching a common supervisory action with national authorities on the application of the MiFID 2 suitability rules. It feels it needs to gauge how intermediaries have been applying the requirement and help in...

FCA updates on skilled persons figures

FCA has published its latest figures on the numbers of skilled persons reports it has commissioned. During Q3 of 2019/2020 it commissioned 10 – of which 5 related to wholesale financial markets, 2 each to retail...

ESMA reports on product intervention

ESMA has published its final report on product intervention requirements under MiFIR. It notes that nearly all national authorities have used the measures in relation to marketing or selling binary options or CFDs to...

FCA writes strategy letter to platforms

FCA’s latest  portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...

FCA updates further on post-Brexit issues

FCA has further updated its website with information on Brexit and Temporary Directions.  It explains how: It will not need to use the Temporary Transitional Power it had previously made directions under, as the...

UK and EU regulators update on Brexit

On Brexit day: FCA has issued an update including new Handbook Instruments, including an instrument providing guidance on the implementation period and updates to various existing guidance about EU non-legislative...

DExEU updates on FS equivalence post-Brexit

The Department for Exiting the EU has published an updated communication from the European Commission on equivalence in the area of financial services.  The documentation notes that temporary equivalence decisions are...

Dear CEO letter re FSA047/048 returns

Given the progress of the UK Withdrawal Bill, the PRA has confirmed through a Dear CEO letter that relevant financial institutions no longer need to submit FSA047/048 returns after 22 January 2020. This return had been...

FCA updates on RDR and FAMR review

FCA has provided an update on its work on the RDR and FAMR review, on which it expects to fully report later this year.  Its most recent work involved surveying around 400 firms for information on their advice services...

FSCS announces Plan and Budget

FSCS has published its full Plan and Budget for 2020/2021. As well as the indicative levy of £635m (£87m more than the current year, mainly because of a rise in SIPP operator claims) and management expenses budget of...

Up next from FCA

FCA plans a number of important publications during Q1 2020 including: consultation on exit fees in investment platforms and comparable firms potential policy statement on general insurance value reporting measures and...

FCA calls for input on open finance

FCA has launched a Call for Input on Open Finance. The concept builds on the principles of open banking and extends it to a wider range of products.  FCA has a vision that open finance will allow consumers and...

FOS consults on plans and budget

FOS has published its consultation on its strategic plans and budget for 2020/2021. Next year, it expects to receive 245,000 complaints and resolve 290,000 (just under half in each case relating to PPI).  It expects to...

ESMA publishes MAR review papers

ESMA has published a series of papers relating to the operation of MAR. The papers include: a peer review report on how regulators handle STORs. The review showed there had been a significant increase in market...

FCA makes new rules

FCA has published new rules on: conduct of business in what it refers to as “speculative illiquid securities” (taking effect on 1 January 2020 and 1 December 2020). These rules create a temporary product...

FCA makes platform transfer rules

FCA has made new rules to make it easier for consumers to move between investment platforms and thereby improve competition.  The rules form part of the Investment Platforms Market Study remedy package and will take...

EMIR updating Regulation published in OJ

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...

EU calls for halt on stablecoins

The European Council and Commission have called for a halt on any stablecoin arrangements in the EU, saying they should not start operating until the legal, regulatory and oversight challenges and risks have been...

Investment firm legislation in OJEU

The Directive and Regulation making changes to existing laws on prudential requirements for, and supervision of, investment firms, have been published in the Official Journal. The legislation makes several significant...

ESMA updates MiFID 2 and AIFMD FAQs

ESMA has updated: its FAQs on MiFID 2 and MiFIR investor protection and intermediaries in respect of information on costs and charges in respect of portfolio management services; and product intervention –...

FMLC responds on MAR review

The FMLC has responded to ESMA’s consultation on the MAR review. Its response makes 2 key points: although the current definition of market abuse is not perfect, it should not be changed now, given the efforts...

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...

AFME calls for crypto supervision convergence

AFME has published a paper setting out recommendations to help deliver consistent regulatory treatment of crypto-assets within Europe. It wants to establish a taxonomy; provide clear expectations for market participants...

FCA consults on fees

FCA has published its annual consultation on fees and levies. Key changes to the current year’s policy include: introducing a £5,000 pa fee for proxy advisers; using income as the basis for calculating periodic...

FCA endorses SEC no action letter

The FCA has endorsed SEC’s extension of its staff ‘no-action letter’ until 3 July 2023.  The no-action letter addresses potential conflicts between US regulation and MiFID 2. MiFID 2 permits investment...

EU adopts capital markets reforms

The Council of the European Union has adopted several legislative reforms as part of the progress towards the capital markets union. The reforms target: Sustainable finance. The first reform establishes disclosure...

Up next from FCA

FCA’s latest Policy Development Update promises a number of publications before the end of the year, including: feedback on the Investment Platforms Market Study remedies; consultation on policy proposals for next...

FCA confirms TPR extension

FCA has confirmed that: firms no longer need to implement their Brexit emergency plans for 31 October; and the TPR window will be open for notifications from fund managers until 15 January 2020 to let FCA know if they...

FCA speaks on future of regulation

Nausicaa Delfas spoke on the future of UK financial regulation post-Brexit. She said FCA continued to prepare for Brexit, whatever form it takes and whenever it happens, and referenced its preparations for a no-deal...

Market Watch on PA dealing concerns

The latest edition of Market Watch sets out FCA’s concerns about how firms police PA dealing by staff. FCA has noted a number of common problems, such as: employees appearing not to understand their firms’...

FCA updates change in control pages

FCA has updated its guidance on how to submit an application for change in control. The page now includes useful tips on what FCA needs to know to deal with the application quickly, and links to all the required forms.

Government responds on regulatory perimeter

The Government has published its response to the Treasury Committee’s report on the regulatory perimeter and how it could be refined and should be policed. The report had criticised the lack of a formal system for...

Market Watch Brexit special

FCA’s latest Market Watch newsletter is aimed at helping firms prepare for a possible no-deal Brexit. The edition covers: transaction reporting and the temporary transitional power – but noting firms may...

Up next from FCA

FCA’s latest Policy Development Update heralds the following publications before the end of the year: consultation on investment platforms market study remedies; policy statement on OPBAS fees; consultation on...

ESMA updates MiFID 2 FAQs

ESMA has updated its Q&As on investor protection and intermediaries issues under MiFID 2 and MiFIR.  The new questions focus on best execution and disclosure of reports to the public; and on what “ongoing...

ESMA consults on MAR review

ESMA is consulting on its required review of MAR. Its paper looks at many issues including: whether to include spot FX within MAR; differing concepts of inside information and delayed disclosure of it; whether the...

FCA makes new rules

FCA has published its latest Handbook Notice with new rules. Most of the changes are minor, and update terminology and cross-references.  FCA is also making changes to: SYSC and SUP, including adding a new Annex to SUP...

FCA pleased with MiFID 2 unbundling effects

FCA has published the results of a multi-firm review looking at whether the research unbundling rules brought in under MiFID 2 have improved asset manager accountability over costs. FCA’s research has found that...

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...

FCA offers Brexit help

FCA has set up a dedicated phone line for firms needing to ensure they are prepared for a no-deal Brexit, and also worked to signpost all its online resources. It expects firms to have planned properly for it. It notes...

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...

FCA publishes quarterly consultation

FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October,  and also other miscellaneous amendments including: minor...

ESAs respond on crypto assets

EBA and ESMA have published a joint response to the Commissions’ paper on crypto-assets.  The response explains the work the ESAs are undertaking, including an imminent national stock-taking exercise on the...