FIN.

Category - Uncategorized

No strong case to merge Ombudsmen

“There is not a strong case to merge TPO and FOS at the present time” is the conclusion of a tailored review of the Pensions Ombudsman (TPO) published by the DWP.   A merger between the two Ombudsmen...

Regulatory framework review underway

The Chancellor has launched the first phase of the Financial Services Future Regulatory Framework review by publishing a call for evidence that looks primarily at how co-ordination between regulatory authorities could...

EU Council adopts crowdfunding position

The Council of the EU has adopted a position it hopes will make it easier for crowdfunding platforms to provide services across the EU, by setting minimum requirements that the platforms must meet and harmonising...

PRA proposes minor form changes

PRA’s latest Occasional Consultation Paper proposes minor changes to miscellaneous Rulebook Parts, Supervisory Statements and templates and LOG files in respect of: Solvency II: The quality of capital instruments...

IUA publishes cyber exclusion clauses

The International Underwriting Association (IUA) has published two new cyber exclusion clauses: Cyber Loss Absolute Exclusion Clause (IUA 09-081): provides a broad exclusion against losses arising from the use of a...

EP publishes draft fund marketing report

The EP has published draft reports on the Commission’s proposals relating to fund marketing. The key concern of the rapporteur, Wolf Klinz, is that while it is a good idea to make pre-marketing to professional...

Carney and Cunliffe to continue in post

Treasury and the BoE have announced that Mark Carney is to carry on in his role as Governor of the Bank until 31 January 2020, an extension of 7 months to his originally agreed term, while Sir Jon Cunliffe, deputy...

FCA publishes quarterly consultation

FCA’s latest quarterly consultation focuses on SUP. FCA proposes changes that will update the Gabriel validation rule and FCA guidance on the capital adequacy form for APIs, and update its supervisory principles...

Treasury updates Brexit draft laws

Treasury has published further drafts of Brexit-related statutory instruments: the EEA Passport Rights (Amendment, etc, and Transitional Provisions)(EU Exit) Regulations 2018 address the necessary amendments to...

ECON calls for equivalence reform

The Committee on Economic and Monetary Affairs has published a report on relationships between the EU and third countries on financial services regulation and supervision. The report calls for a Resolution requiring the...

Pakistan added to MLD4 high risk list

The European Commission has adopted a Delegated Regulation adding Pakistan to the list of high-risk third countries under MLD4.  Member States will be bound to require application of EDD when dealing with any persons...

Treasury publishes CRR Brexit regulations

The latest draft Regulations anticipating Brexit relate to capital resources requirements. The draft Capital Requirements (Amendment)(EU Exit) Regulations 2018 are intended to make sure the CRR can continue to operate...

FCA consults on CMC costs and fees

FCA is consulting on how it proposes to set fees to recover its costs for setting up the regulatory regime for claims management companies and for ongoing supervision of the sector. The consultation covers fees under...

ESMA updates product intervention FAQs

ESMA has updated its FAQs on the use of its temporary product intervention measures in respect of CFDs and binary options.  New questions: state that turbo certificates are not within the scope of the CFD decision as...

FCA plans changes for loan-based crowdfunding

FCA is consulting on rule changes for loan-based crowdfunding platforms, following its post-implementation review. It has noted the market has developed, and models have become increasingly complex, since FCA’s...

ESMA updates funds FAQs

ESMA has updated its FAQs on the UCITS Directive and the AIFMD. New questions include those addressing when UCITS invest in UCITS with different investment policies and supervision of branches of UCITS management...

ESAs update KID FAQs

The ESAs have published some further guidance on KIDs under the PRIIPS Regulation. The additions to the existing guidance provide some additional FAQs and updates to the flow diagrams for risk and reward calculations...

FCA speaks on Brexit and the future

Nausicaa Delfas has spoken on the FCA’s approach to Brexit.  She looked at how it is preparing and forward to the future. She stressed that FCA is working hard with the Government and other regulators to ensure...

Treasury updates AML advisory

Treasury has updated its AML advisory notice on high risk jurisdictions. The advisory meets the requirements of the 2017 MLRs to ensure the regulated sector applies EDD to high-risk countries with reference, among other...

EIOPA publishes Q&As on application of IDD

The first set of Questions and Answers (Q&As) on the application of the Insurance Distribution Directive (IDD) were published today by the European Insurance and Occupational Pensions Authority (EIOPA).  Answers...

Prospectus exemptions amended

The FSMA (Prospectus and Markets in Financial Instruments) Regulations 2018 take effect on 21 July and amend two of the thresholds that trigger the requirement to produce a prospectus. The changes reflect the 2017 EU...

EU unhappy at MLD4 implementation

The European Commission is unhappy with Member State transposition of MLD4. It currently has open infringement procedures against 20 Member States but says most have adopted and notified missing transposition measures...

Serbia to be added to MLD4 high risk list?

The Commission has confirmed it will assess, at the end of June,  Serbia’s progress and commitments towards meeting its AML obligations and the FATF recommendations. It may then decide to add the country to the...

EBA urges Brexit “no deal” preparation

EBA has published an Opinion in which it asks national regulators to ensure financial institutions are taking practical steps to prepare for a “no deal” Brexit with no transition period. It does not think...

MLD5 published in OJ

MLD5 has now been published in the OJEU. It is dated 30 May and was published on 19 June.  Member States are required to implement it by 10 January 2020.

EU fund marketing proposals progress

The Council of the EU has agreed a negotiating mandate for progressing the Commission’s proposals on cross-border marketing of funds. It has also published compromise texts based on the Commission’s...

EP adopts “EMIR Refit” proposal

The European Parliament has voted in plenary session to adopt the so called “EMIR Refit” Regulation. The European Commission has proposed that small financial counterparties (SFCs) should not be subject to...

ESMA speaks on a genuine single market

Verena Ross has spoken on progress towards a “genuine” single European financial market, focusing on the role of regulation and supervision. She commented that the EU now has a robust and integrated...

FCA consults on CMC regulation

FCA is consulting on draft rules for regulating claims management companies (CMCs) when it acquires regulatory responsibility for them on 1 April 2019. FCA is focussing on 3 key aspects: empowering customers to be...

ESMA exercises product intervention powers

ESMA has exercised its product intervention powers under MiFIR to: ban the marketing, distribution or sale or binary options to retail investors from 2 July; and restrict the marketing of CFDs to retail investors from 1...

ESMA publishes MiFID 2 suitability guidelines

ESMA has published its final guidelines on certain aspects of the MiFID 2 suitability requirements. The guidelines build on their MiFID 1 predecessor, and broaden them to address technological developments such as a the...

ESMA updates MiFID 2 FAQs

ESMA has updated its FAQs on investor protection and intermediaries under MiFID 2. New questions added in May focus on: best execution: a new question addresses what is meant by “other liquidity provider”;...

ESMA updates UCITS FAQ

ESMA has updated its FAQs on the application of the UCITS Directive. The additions look at how to apply remuneration disclosure requirements to staff or the delegate of a UCITS management company who have been delegated...

Data Protection Bill receives Royal Assent

On 23 May, the Data Protection Act 2018 was finally passed into law. The new Act repeals the Data Protection Act 1998, and facilitates the implementation into UK law of the General Data Protection Regulation (EU)...

Lloyd’s Brussels obtains licence

Lloyd’s has announced that it has received licence approval from the National Bank of Belgium for Lloyd’s Insurance Company S.A. Post-Brexit, this subsidiary of Lloyd’s will be able to write non-life...

EU adopts MLD5

The Council has formally adopted MLD5 in its meeting of 14 May. The changes to MLD4, already agreed between the Council and Parliament, include: greater transparency of beneficial ownership of companies and trusts;...

Government responds on Brexit

The Government has published its response to the House of Lords EU Committee Report on financial regulation and supervision after Brexit. It offers assurances that: the UK will continue to lead global standards; the...

Treasury makes IDD perimeter law changes

Treasury has made the Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018 and laid it before Parliament on 1 May. The Order makes changes, mainly to the RAO, to reflect the changes to...

MLD5 final text published

Ahead of its adoption, the Council and Parliament text of MLD5 was published on 26 April. After formal adoption it will need to be published in the Official Journal, and it will come into force 18 months after that...

EU updates on withdrawal plans

The European Commission has updated its website with notices on plans for Brexit in several industry sectors including financial services. The latest news reports a request from the Commission and Treasury to the ECB...

Barnier speaks on Brexit

Michel Barnier has spoken to Eurofi. He described Brexit as a lose-lose situation, with no added value.  He said: there can be no frictionless trade outside the Customs Union and Single Market so businesses will be...

FCA speaks on asset management

Andrew Bailey has given a regulatory perspective on asset management. His speech considered: market-wide risks: he looked at the growth in the asset management sector and particularly the increase in proportionate...

EP votes through MLD5

The European Parliament adopted in plenary session on 19 April  the proposals for MLD5. In an EP press release prior to the vote: the proposals to require public access to beneficial ownership information, to introduce...

The future of the defined benefit system

The funding deficits of defined benefit (DB) pension schemes have made news headlines in recent times, following the difficulties encountered by the British Steel Pension Scheme and some high profile business failures...

EU Exit Committee sets out key Brexit tests

The Commons Committee for Exiting the EU has published a report setting out the key tests it says any deal agreed by October must meet. From the financial services perspective, the report notes the critical importance...

Government heralds Brexit transition progress

The Department for Exiting the EU has published a draft Withdrawal Agreement following the conclusion of a key set of negotiations.  David Davis and Michel Barnier both welcomed the progress.  Mr Davis heralded the...

PM speaks on Brexit and Financial Services

Theresa May, speaking at Mansion House, set out her vision for the future economic partnership between the UK and the EU. In relation to financial services, she explained why existing models will not work. For example...

LMA publishes IDD guidance for UK coverholders

The Lloyd’s Market Association (LMA) has published guidance on the IDD for UK coverholders. The guidance covers some aspects of IDD, including: product oversight and governance; product information (including the...

UK Finance positive on MiFID 2

UK Finance reports that initial impressions of MiFID 2 implementation are that it has been smoother than expected.  While there have been some teething problems and outstanding issues, firms seem, generally, to have...

Council agrees IDD delay

EU ambassadors have confirmed, on behalf of the Council, that the transposition deadline for the IDD should be delayed until 1 July, and the application date to 1 October.  The EP and Council, however, are not expected...

FCA and ICO update on GDPR

An update from FCA and the ICO confirms FCA’s view that firms can comply with both the GDPR and its rules. The update notes that GDPR is a board level responsibility, and firms must produce evidence to show what...

ESMA updates MiFID 2 FAQ

ESMA has updated its Q&As on transparency and market structure issues under MiFID 2. The latest additions cover pre-trade transparency waivers.

MEPs agree MLD4 blacklist additions

MEPs have approved the proposal to add Tunisia, Sri Lanka and Trinidad and Tobago to the list of high-risk third country jurisdictions under MLD4. The vote passed the additions, despite continuing dissatisfaction among...