FIN.

Category - Investments

ESMA publishes cloud outsourcing guidelines

ESMA has published its final report on outsourcing to cloud service providers. The guidelines cover: risk assessment and due diligence on providers; governance, organisational and control frameworks for monitoring CSP...

FCA makes Remuneration Code changes

FCA has published its final rules on updating the dual-regulated firms’ Remuneration Code to reflect CRD V.  It has finalised its guidance on proportionality for the dual-regulated firms code,  and published a set...

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 confirms mini-bond marketing ban

FCA has confirmed that it will permanently ban marketing of speculative illiquid securities, including mini-bonds, to retail investors, from 1 January 2021. The permanent rules will also include a ban on listed bonds...

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 publishes RDR and FAMR evaluation

FCA has published an evaluation of the impact of the RDR and FAMR. On the whole, it found a positive impact. It notes that the FAMR has: led to a small increase in the number of adults who receive financial advice, and...

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...

FOS loses judicial review hearing

The Court has found against FOS in a judicial review hearing brought by a forex firm. TF Global Markets (UK) Ltd has suspended a number of accounts, including those of three individuals who subsequently complained to...

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...

FCA consults on use of FSB Benchmark powers

FCA is consulting on how it proposes to use its new powers under the FS Bill to ensure an orderly wind-down of LIBOR, following the announcement by ICE Benchmark Administrations that it plans to cease its euro...

FSB publishes 2020 Resolution Report

The Financial Stability Board (FSB) has published its 2020 Resolution Report which highlights the need for resolution preparedness. It also looks at lessons learnt from the Covid-19 pandemic, which stressed the...

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...

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...

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...

Commission publishes EU work programme 2021

The European Commission has announced its focus for 2021.  As well as continuing to work on managing the effects of the pandemic, its priorities will include: a “Fit for 55” packages to reduce emissions by...

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...

FCA fines for short selling disclosure breach

FCA has issued its first fine for breach of the Short Selling Regulation. It fined Asia Research and Capital Management Limited, an asset management firm based in Hong Kong, nearly £875,000 for failing to notify FCA and...

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...

FCA extends 10% depreciation guidance

FCA is giving a further 6 month extension to its measures on 10% depreciation notifications.  Its first set of measures expire on 30 September, and it is extending them such that it will not take action for breach of...

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...

EU to recognise UK CCPs from 1 January 2021

The European Securities and Markets Authority (ESMA) has announced that it will recognise the three central counterparties (CCPs) established in the UK as third country CCPs (TC-CCPs) from 1 January 2021.  The decision...

FCA reports on regulatory perimeter

FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...

ESMA publishes draft third country RTS

ESMA has published draft RTS and ITS for third country investment firms under MiFID 2/MiFIR.  It needed to make changes following the IFR and IFD, which requires information to go to ESMA even where the third-country...

ESMA issues report on MAR

The European Securities and Markets Authority (ESMA) has published its first in-depth review of the Market Abuse Regulation (MAR) since its implementation in 2016. It is expected that the report will feed into the...

PRA publishes proprietary trading review

PRA has published a report required by law that looks at the extent of proprietary trading by deposit takers and dual-authorised investment firms.  The report looks at: the extent of trading; the risks trading poses to...

BoE updates on LIBOR transition

The Bank of England has updated its website on the transition from LIBOR, and what it is doing to catalyse using SONIA as the primary interest rate benchmark in sterling markets. The Working Group on Sterling Risk-Free...

FMSB reviews trade execution challenges

The FICC Markets Standards Board (FMSB)’s latest Spotlight Review explores the challenges faced in measuring quality of trade execution and how this varies across market participants and segments. FMSB says that...

FCA censures individual for market abuse

FCA has publicly censured the former CEO of Worldspreads and banned him from any roles linked to regulated activity, as as result of market abuse.  It originally fined Conor Foley around £650,000 but imposed a public...

FCA looks at transaction reporting and Brexit

In the latest edition of Market Watch, FCA looks at how MiFID firms should be preparing for the end of the transition period. It: explains the temporary transitional power, noting why it is not appropriate to use it for...

London and Capital report delayed

Dame Elizabeth Gloster has explained to FCA that she will need until late November to complete and report on her investigation into FCA’s regulation of London and Capital Finance. FCA is happy to work with her...

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...

Up next from FCA

FCA’s latest Policy Development Update heralds: consultation on financial crime reporting during Q3; PS on debt advice levy rates in Q4; CP on exit fees in investment platforms and comparable firms during 2021; PS...

FCA consults on Remuneration Code

FCA is consulting on proposals to update its Dual-Regulated firms Remuneration Code and guidance as part of CRD V implementation. The consultation largely follows PRA’s and proposes: changes to SYSC 19D in respect...

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...

ESAs finish PRIIPs KID review

The ESAs have reported to the European Commission on the outcome of their review of the PRIIPs KID. A draft Final Report following public consultation was submitted to the boards of the 3 ESAs for approval, but...

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...

Commission consults on CMU roadmap

The European Commission is consulting on its roadmap toward capital markets union.  The “roadmap” is a short, high-level document, setting out the reasons for and priorities of the initiative. Consultation...

FCA confirms open-access trading extension

FCA has confirmed that the agreed extension to the deadline for applying the open access rules of MiFIR to trading venues and CCPs that offer trading and clearing of exchange-traded derivatives will apply equally in the...

Up next from FCA

Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...

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...

IOSCO consults on AI use

IOSCO is consulting on the use of AI and machine learning by market intermediaries and asset managers. It has produced guidance for its members to help them supervise its use. IOSCO notes the key potential benefits of...

FCA updates on Covid-19 delayed activities

FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...

Chancellor updates on FS laws and Brexit

Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...

ESMA updates work programme

ESMA has updated its 2020 work programme to include its work on its immediate reaction to the Covid-19 crisis and what may be deprioritised as a result.  It has also published its 2019 annual report.

Randell speaks on supporting the recovery

Charles Randell has spoken to a virtual roundtable of bank chairs on how the financial services industry can work to support recovery from the Covid-19 pandemic. He noted the great efforts that banks and other market...

FCA updates market abuse pages

FCA has updated the guidance on its website on reporting suspected market abuse. The guidance includes FCA’s expectations in respect of how firms should make market observations in situations where they will not...

ESMA clarifies MiFIR open access application

ESMA has issued a statement to clarify how supervisors should apply the open access provisions of MiFIR for trading venues and CCPs in the light of Covid-19. The current temporary powers to grant exemptions from the...

ESRB gives guidance on distributions

The BoE and PRA have acknowledged the ESRB recommendations on the restriction of distributions during Covid-19.  They note the recommendation will apply to the UK throughout the Transition period, and also note that...

ESMA opines on compliance function

ESMA has given new guidance on the MiFID 2 compliance function, replacing 2012 guidance.  The new version aims to provide more clarity and more convergence in implementation and supervision of the requirements of MiFID...

Up next from FCA

FCA’s latest Policy Development Update highlights the following publications due over the next few months: CP on marketing speculative illiquid securities to retail investors (including speculative mini-bonds); CP...