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...
Category - Investments
Jonny WilliamsUp 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...
Emma RadmoreFSB comments on benchmark reform and Covid-19
The Financial Stability Board has been monitoring closely the impact of Covid-19 on global benchmark transition. It recognises the challenges, but still thinks that both financial and non-financial sector firms across...
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...
FCA gets judgment against unregulated introducers
FCA has won a case in the High Court against Avacade Limited and Alexandra Associates (UK) Limited and their three directors. The companies provided a pension reports service and made misleading statements as a result...
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...
Government encourages LIBOR transition amid legislative plans
Rishi Sunak has made a written statement to Parliament on the Government’s proposals for ensuring LIBOR transition. The statement referenced previous statements that underline the importance of firms migrating...
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...
Treasury updates on Financial Services Bill prudential intentions
Treasury has provided some detail on the legislative approach it will take on prudential standards in the Financial Services Bill. The statement goes alongside the FCA discussion paper on the prudential regime for...
FCA looks to better prudential rules for investment firms
FCA has published a discussion paper on a bespoke prudential regime for investment firms. FCA has long wanted to introduce a better regime for firms, but has been constrained largely by MiFID. The EU is now introducing...
EP issues draft report on further development of the CMU
On 19 June, the European Parliament (“EP“) published a draft report on the further development of the Capital Markets Union (“CMU“), improving access to capital market finance, in particular by...
Amelia GreenFCA consults on high-risk investment marketing
FCA is consulting on marketing of speculative illiquid securities including speculative mini-bonds. It wants to make its ban (which it introduced in January without consultation) on mass marketing of these products to...
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...
FMSB publishes LIBOR transition case studies
The FICC Market Standards Board (FMSB) has published a review on LIBOR transition with case studies to help market participants navigate conduct risks when offering new products to clients or changing performance...
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...
Commission consults on green finance preferences
The European Commission is consulting on a set of draft delegated Regulations that would oblige AIFs and other investment funds, investment firms, insurance firms and brokers, (re)insurers and mutual funds to advise...
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...
FCA speaks on current concerns and crisis response
Megan Butler has spoken to PIFMA on FCA’s response to Covid-19 and its expectations for the rest of the year, with a focus on its actions and expectations in respect of wealth managers. Generally, she thought the...
EP debates green finance taxonomy
On 2 June. the European Parliament recommended the Council’s position on the “taxonomy” for green finance for adoption following a second reading. The Regulation will set out the criteria for...
FOS publishes 2019/20 data
FOS has published details of the complaints it received and dealt with in 2019/2020. It received around 270,000 complaints and dealt with nearly 300,000, with the Ombudsman making nearly 30,000 decisions. As ever, the...
ESMA consults on cloud outsourcing guidelines
ESMA published a consultation paper today on guidelines for outsourcing to cloud service providers. The consultation, which closes on 1 September, looks at the detail of the proposed guidelines which will provide...
FCA finalises SMCR rules for benchmark administrators
FCA has published its final rules on extending the SMCR to employees at benchmark administrators. The rules, bespoke to firms that undertake no other regulated activities, take effect from 7 December. UK-based...
FCA updates on LCF report delay
Dame Elizabeth Gloster wrote to FCA on 15 May to note that she would be unable to complete her investigation into FCA’s regulation of London Capital & Finance by 10th July as required. The reason for this is...
Compulsory FCA survey coming to firms
FCA is to send a survey by email with a link to 13,000 solo regulated firms, aimed to helping FCA understand the impact of Covid 19 on regulated firms and their financial resilience, where the greatest impacts are for...
FCA takes passports from Cypriot firms
FCA has used its power to remove passporting rights from overseas firms for the first time. It has removed the passports of four Cypriot firms that appear to have used unauthorised celebrity endorsements as part of...
ESMA updates investor protection FAQs
ESMA has updated its Q&As on investor protection issues under MiFID 2 and MiFIR. The changes specifically address what is an “acceptable minor non-monetary benefit” for the purposes of the inducements...
EU Crowdfunding Regulation – investor protection aspects
We’ve now published the second part of our review of the proposed EU Crowdfunding Regulation, looking at the investor protection aspects.
Market Watch Covid special
FCA’s latest edition of Market Watch looks at market conduct and discipline in the context of coronavirus. It stresses particularly the importance of complying with the standards of MAR. Given the likely need for...
FSCS announces 2020/21 levy
FSCS has announced its levy for 2020/2021 at £649m. This is £14m more than forecast in the plan and budget, mainly to reflect estimated compensation costs for LCF opf £44m which will be borne by the Life Distribution...
Government publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
EBA addresses financial crime risks of dividend arbitrage
EBA has conducted an inquiry into dividend arbitrage trading schemes. It concluded that differences in domestic tax laws mean that national authorities do not share the same understanding of these schemes. As a result...
FCA updates on Covid-19 and complaints
FCA has updated its webpage on how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...
FCA gives lending application guidance
FCA has updated its webpages giving guidance to applicants for authorisation, The latest updated page includes a sample business plan for consumer credit business, with guidance for different types of firms, and...
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
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...
Complaints Commissioner decides on Connaught Complaint
The Complaints Commissioner has published his decision in relation to complaint brought by Mark Bishop about the actions of the FCA’s Chair and Chief Executive in relation to the establishment of the independent...
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...
Government sets out equivalence views
John Glen has written to the Chair of the European Scrutiny Committee explaining the Government’s stance on equivalence in financial services. The Government cannot provide great detail given the early stage of...
Up next from FCA
Unsurprisingly, FCA’s recent publications have almost exclusively focused on Covid-19. However, in BAU, it still proposes: a consultation on exit fees on investment platforms and comparable firms over the summer;...
UK and Switzerland work to strengthen ties
Economiesuisse and The CityUK have been working on a joint position paper setting out how to strengthen the countries’ relationship in the time of coronavirus and in the future. In terms of financial services, the...
EFAMA calls for urgent PRIIPs KID changes
EFAMA is adamant that the Covid-19 crisis makes it all the more important for action to be taken quickly on revisions to the PRIIPs KID, which it has long argued is “fundamentally flawed”. It says the...
Regulator Covid-19 Update 27 April
On 27 April: FCA has clarified the relationship between its rules and the UK’s CBILS and Bounce Back Loan schemes. It notes that, pending the roll-out of the BBL scheme, which, from 4 May, will give small...
Commission approves Green Finance position
The European Commission has sent a Communication to the Parliament on the sustainable finance initiative. It explains the background to the “taxonomy” for the common classification system, and the areas on...
Regulator Covid-19 update 22 April
On 22 April FCA published a new webpage on PII cover for financial advisers. It recognises that firms may be concerned about their ability to renew their PII during the Covid-19 crisis, which may impact on their...
Council publishes EU Crowdfunding Regulation compromise text
In March the European Commission submitted two legislative proposals to the Council of the European Union (“the Council“). The final compromise text of the proposals has now been published: Proposal for a...
EU Council adopts sustainable finance taxonomy
The Council of the EU (“the Council“) has adopted a regulation setting out an EU-wide classification system which will enable businesses and investors to identify economic activities which are considered...
FCA updates on funds expectations
FCA has updated its website in respect of funds and Covid-19. It has added sections on: its flexibility around statements on 10% portfolio value reporting – which is the same as for retail business as outlined by...
Regulator Covid-19 Update 8 April
On 8 April: PRA welcomed the decision by some insurance companies to pause dividends. The decisions followed PRA’s letter of 31 March; PRA’s credit union supervision team wrote to firms explaining...
FCA consults on fees
FCA has published its fees and levies proposals for 2020/2021. Covid-19 has affected FCA’s plans, and it is taking action to protect small and medium sized firms from the burden of regulatory fees. Comments are...
Regulator Covid-19 Update 7 April
Regulatory fatigue may be starting to set in, as there were fewer regulatory announcements directly consequent on Covid-19 on 7 April. FCA made its rules on deferring commencement of various handbook provisions on...
FCA Business Plan 20/21
The FCA published its business plan for the coming year this morning. The plan focuses around 5 key priorities for the year. It has been significantly reshaped because of coronavirus as it was intended to show the...
Regulator Covid-19 Update 6 April
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...
Regulator 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...
Regulator 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...
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...
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...