On 6 April, the regulators further update their Covid-19 measures: FCA updated its expectations on solo-regulated firms in respect of the SMCR; FCA published a summary of queries it has received on client assets...
Category - Investments
Jonny WilliamsRegulator Covid-19 update 3 April
On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...
Emma RadmoreRegulator Covid-19 Update 2 April
On 2 April, the main regulatory initiative was FCA’s emergency consultation on consumer protection measures in the regulated lending markets. Also: PRA and Treasury confirmed the delay of Basel 3.1 by one year...
Parliament Committee seeks equivalence answers
The Third Report of Session of the House of Commons European Scrutiny Committee seeks clarification on the Government’s intentions for negotiations of equivalence arrangements with the EU from the end of the...
ESMA publishes MiFID 2 reports
ESMA has published 2 reports on the impact of MiFID 2: advice to the Commission on the impact of the inducements and costs and charges disclosure requirements: despite some respondents to its consultation proposing...
FOS confirms case fees and releases 2020/21 budget
FCA has confirmed FOS’ 2020/21 budget. Key elements include: continuing to allow 25 “fee” cases for firms outside the group account fee arrangement – so 90% of firms will pay no case fees; 50...
FLA gets firms access to CBIL Scheme
FLA has successfully negotiated with the Government to get access for independent and non-bank lenders to the Coronavirus Business Interruption Loan Scheme. It says this was critical to allow firms to continue to run...
FCA writes to retail firm CEOs on Covid-19
FCA has written a Dear CEO letter to firms that provide services to retail investors. It notes that it has received hundreds of requests from trade associations and firms for it to adapt its regulatory approach, and...
Lords calls for UK/EU cooperation
The House of Lords EU Financial Affairs Committee has written to Rishi Sunak urging the government to set up a structured dialogue with the EU that will support cross-border financial services. It wants: to minimise...
Regulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Regulators give leeway on company accounts
The FRC, PRA and FCA have announced a series of actions to help listed companies during the Covid-19 crisis. Listed companies may have an additional 2 months to publish audited financial statements. But issuers are...
Government confirms extension of TTP
In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...
ESMA extends response dates
ESMA has extended the response date of all consultations due to close on or after 16 March by 4 weeks. This includes the consultation on technical standards for the provision of investment services and activities in the...
FSCS comments on LCF judicial review
As a judicial review action starts in respect of eligibility of London Capital & Finance investors for FSCS payment, FSCS commented that this is a large case, and that it had carried out extensive factual...
FMLC responds on crypto taxonomy
FMLC has responded to the European Commission’s consultation on classification of crypto assets. The detailed response notes: the current parallel classification of cryptoassets in the UK on the one hand and the...
PIFMA concerned about Open Finance
PIFMA has responded to FCA’s call for input on open finance. While it applauds FCA’s stance on encouraging innovation, and feels the financial services sector has lagged behind other sectors in adopting...
EU writes to Chancellor on equivalence
Valdis Dombrovskis has written to Rishi Sunak on equivalence assessments. The letter merely notes that both sides should start to assess equivalence as soon as possible, on the basis of the Political Declaration, with a...
Treasury Committee responds on IT failure and economic crime reports
The Treasury Committee has commented on the responses from Government and regulators on: its October report on failures in the IT industry. The report had concluded, among other things, that: regulators need to improve...
Treasury consults on UK/Gibraltar FS access
Treasury is consulting on the post-Brexit market access arrangements between the UK and Gibraltar. Constitutionally, Gibraltar is an Overseas Territory with internal self-government. Responsibility for financial...
FSCS allocation of claims regarding IFAs and SIPP operators
The Financial Services Compensation Scheme (“FSCS“) has issued guidance on compensation payments as a result of failed investments made via a Self-invested Personal Pension scheme (a “SIPP”). The guidance...
Rachael PrestonESMA publishes its 2019 Annual Report 2020 Supervision Work Programme
The European Securities and Markets Authority (“ESMA“) has published jointly (i) its annual report to highlight its direct supervisory activities during 2019 regarding credit rating agencies...
Treasury Committee calls for better carbon footprint awareness
The Treasury Committee, as part of its inquiry on decarbonisation and green finance, is concerned that consumers need better help to understand the carbon footprint of financial products and has written to BoE and FCA...
FCA calls for evidence on wholesale market data
FCA has launched a call for input on access and use of data and advanced analytics in the wholesale markets. It wants to understand the value to market participants and whether the information is being competitively...
The FCA announces proposals to improve climate-related disclosures by listed companies
The FCA has today published proposals outlining new climate-related disclosure requirements for premium listed issuers. The new rule will require all commercial companies with a premium listing to either make climate...
PRA writes to chairs on board diversity
PRA has written to the chairs of dual regulated firms reinforcing the importance it places on diversity within boards for improving decision making and providing effective challenge. It reminds firms it expects them to...
FCA writes to CEOs on end of LIBOR
FCA has written a Dear CEO letter to asset management firms on preparing for the end of LIBOR. It expects firms to take all reasonable steps to ensure the end of LIBOR does not lead to markets being disrupted or...
Rebecca JonesCommission publishes PRIIPs information test results
The Commission has carried out a project testing the effectiveness of presented information to retail investors within the PRIIPs framework. It sent out 10 different versions of performance scenarios and past...
More UK/EU policies revealed
The Government has published a policy paper on its approach to the future relationship with the EU. It sets out the Government’s suite of proposals, based around the desire for a comprehensive Free Trade...
Barnier to be EU negotiator on post-Brexit issues
The Council of the EU has adopted a decision authorising negotiations between the EU and UK towards a new partnership and authorising the European Commission, in the person of Michel Barnier, as the EU negotiator. The...
Dormant Assets Scheme Consultation
This morning, HM Treasury published a consultation document setting out its proposals for expanding the dormant assets scheme. The consultation discusses the background to the current scheme and then sets out proposals...
Caroline StevensonFinancial 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...
FCA publishes annual sector views
The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...
Commission consults on MiFID 2/MiFIR framework
The European Commission is consulting on the effectiveness of the regulatory framework for investment firms and market operators under MiFID 2 and MiFIR. The consultation runs until 20 April and requests responses by...
ESMA updates MiFID 2 FAQs
ESMA has updated its MiFID 2 and MiFIR FAQs on investor protection. The new questions focus on how the revised BRRD applies
ESMA Chair delivers speech on sustainable finance issues
On 12 February, Steven Maijoor delivered a keynote speech on sustainable financial markets at the European Financial Forum in Dublin. In his speech, Mr Maijoor discussed the role of regulatory authorities in tackling...
Lucy HadrillEP 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;...
Regulators warn firms on selling personal data
The FCA, ICO and FSCS have warned regulated firms and insolvency practitioners of the need to be responsible when dealing with personal data. The regulators have become aware of sales of client data to CMCs either...
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...
EU to prioritise green deal and MLD5 implementation
In his opening remarks to the ECOFIN conference, Valdis Dombrovskis, handing over to the new Croatian Presidency, singled out as key developments: the Green Deal or Sustainable Europe Investment Plan, the success of...
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 writes supervisory priorities letter to financial advisers
FCA’s Dear CEO letter to financial advisers identifies the following key harm risks on which it will focus its supervisory strategy: consumers receiving advice that is not suitable for their needs and objectives:...
FCA updates on asset management supervisory strategies
FCA has: written a Dear CEO letter about its asset management supervision strategy. The letter outlines FCA’s view of the key causes of harm asset managers can post to their customers or the markets in which they...
Financial institutions raise concerns about PRIIPs RTS review
Insurance Europe, AMICE, the EBF and EFAMA (the Group) have raised concerns about The Joint Committee of the European Supervisory Authorities (the ESA’s) consultation on potential changes to the regulatory technical...
FCA and BoE outline initial expectations for firms transitioning from LIBOR to SONIA
The Bank of England’s Financial Policy Committee (FPC) has published a letter to Senior Management Function holders in regulated firms on the future of LIBOR. In the letter it considers further potential...
FCA and BoE encourage switch from LIBOR to SONIA from Spring 2020
The FCA has published a Statement encouraging market makers to change the market convention for sterling interest rate swaps from LIBOR to SONIA on 2 March 2020. The change is intended to move the greater part of new...
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...
CCPs deemed equivalence and recognition decisions extended by ESMA and Commission
In the light of the impending putative date for the UK to leave the EU, potentially on the basis of a ‘hard Brexit’, the European securities regulator and the Commission have extended the temporary...
Queen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
EU reaches political agreement on crowdfunding measures
The EU Council and Parliament have reached a provisional political agreements on the Commission’s proposal for legislation to boost crowdfunding in the EU. The framework is the 12th of the 13 pieces of the CMU...
Regulators update on climate change action
UK and EU regulators have published papers on the regulatory response to the risks of climate change. the BoE has published a discussion paper on how it proposes to carry out its “biennial exploratory...
Europe reaches agreement on ‘green taxonomy’ regulation
Negotiations between the European Parliament and Council have reached agreement on environmental objectives for determining the sustainability of an economic activity. The Commission proposal for a ‘taxonomy...
FPC publishes latest Financial Stability Report
In its latest Financial Stability Report, the FPC has published its latest stress testing results and current view on the stability and state of the UK financial system. In addition to its comments on open-ended funds...
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...
Roseyna JahangirEU 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...
Extension of the Senior Managers and Certification Regime comes into force
The FCA has extended the Senior Managers and Certification Regime (SM&CR) to solo-regulated firms, including senior managers and certification staff in those firms. The SM&CR already applies to the banking and...
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...
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...
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 –...
Mark Carney named UN’s Special Envoy for Climate Action and Finance
On 1 December 2019 the United Nations Secretary-General António Guterres announced the appointment of the Governor of the Bank of England, Mark Carney, as UN Special Envoy for Climate Action and Finance. Mark Carney...
FCA alerts investment firms to new management body form
FCA has alerted firms to a new form that MiFID investment firms and optional exempt firms will need to use when submitting information to it in relation to non-SMF directors. The form will apply from 9 December and is...
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 secures £291,070 confiscation order against convicted fraudster
The FCA has issued a press release confirming that a confiscation order of £291,070.36 has been obtained against a convicted fraudster. Barry Starling is already serving a 5 years’ prison sentence for defrauding...
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...
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...
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...
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...
More pressure on fund managers to follow ESG voting instructions?
The push to require pension scheme trustees to develop voting policies on environmental, social and governance (ESG) issues (which are considered to be financially material to their investments) is meeting some...
Gavin EllisonFCA 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...
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...
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...
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...
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’...
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...
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...