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...
Category - Investments
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...
Emma RadmoreFCA 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...
Caroline StevensonFCA 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...
Rachael PrestonFCA 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...
Jonny WilliamsQueen’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...
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.
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...
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...
Queen’s Speech suggests post-Brexit FS Bill
Among the list of legislative proposals referred to in the Queen’s Speech is laws that will provide “certainty, stability and new opportunities” for the financial services sector through a Financial...
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...
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...
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...
European Banking Authority publishes Communication on preparation for Brexit
The European Banking Authority (EBA) has published a Communication on the remaining issues for financial institutions ahead of the UK’s departure from the EU. In its Communication the EBA urges continued progress...
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...
Guidance on unfair consumer terms Directive
The European Commission (the “Commission”) has issued guidance on the interpretation and application of Council Directive 93/13/EEC on unfair terms in consumer contracts (“UCTD”) The Commission...
ESAs Joint Committee defines its priorities for 2020
The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) (collectively “ESA”) has published its 2020 Work Programme setting out its strategy in the areas of cross-sectoral risk...
ESMA calls for evidence on product intervention measures
ESMA has launched a call for evidence to look at how effective the product intervention measures on CFDs and binary options have been. ESMA needs to report to the Commission on its experience, and welcomes views of...
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...
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...
Treasury approves JMLSG updates
Treasury has approved updated chapters in Part II of the JMLSG Guidance. The chapters now approved are:
credit unions
asset finance
brokerage services to funds.
FCA announces next steps for unit-linked funds
FCA has published its findings and next steps on its review of governance practices covering unit-linked funds. It notes that its Asset Management Market Study found asset managers were not good enough at considering...
Barry StimpsonIndustry 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...
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...
No more ink? Law Commission confirms validity of electronic signatures
A Law Commission report confirms that electronic signatures can be used to execute documents as an alternative to wet ink signatures in most circumstances. There are some important exceptions and the report only relates...
Suzanne GadoInvestment 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...
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...
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...
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...
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...
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 explains views on electoral polling and MAR
FCA has given guidance on how MAR might apply to information gained from electoral polling, and how firms should handle any information that might be inside information. It gives the example of how, if an established...
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...
Law Commission looks into intermediated securities
The Law Commission has asked all stakeholders for their views on how well the current system of intermediated securities works. Its call for evidence, which ends on 5 November, is in response to a request from BEIS to...
ASA rules share tipping site ad misleading
The ASA has upheld complaints in relation to three websites for Stockmarket Insider, an “investment advisory service”. The websites claimed: “of the thousands of “investment advisory...