The UK Government has published a presentation (dated 25 July) that sets out a proposed ‘Framework for the UK-EU partnership’, as part of the preparations by the UK Brexit negotiating team. This document...
Category - Uncategorized
FCA Dear CEO Letter on cross border arrangements
The FCA has published a Dear CEO letter on cross border booking arrangements. In its letter, the FCA acknowledges that, in order to deal with the UK’s withdrawal from the EU, firms have put in place contingency...
EIOPA joins the Sustainable Insurance Forum
The European Insurance and Occupational Pensions Authority (EIOPA) has announced that it has become a member of the Sustainable Insurance Forum (SIF). The SIF is a network of insurance supervisors and regulators from...
FMLC reports on financial contracts post-Brexit
FMLC has published a report looking at contract continuity post-Brexit and highlights the legal uncertainties that will continue if there is no clear agreement on the UK/EU relationship. The paper, which reprises many...
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...
Where next for SARs?
We have written an article on the Law Commission’s Consultation paper on changes to the SARs regime.
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...
HM Treasury publishes temporary permissions draft SI
HM Treasury has published a draft SI setting out the proposed conditions for an incoming EEA firm to obtain a temporary permission to continue to carry on regulated activity in the UK after exit day, in the event of the...
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...
EBA GUIDELINES ON FRAUD REPORTING UNDER PSD2
The European Banking Authority (EBA) has published its final report on the fraud reporting guidelines under PSD2 (Guidelines). The Guidelines have been published following the consultation which took place in August...
Article on marketing of AIFs
We wrote an article for Compliance Monitor on the EU proposals for changes to the way in which AIFs can be marketed.
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...
New rules to prevent money laundering and combat terrorism financing in force
The European Commission (the Commission) announced that MLD5 entered into force on 9 July 2018. The new rules introduce stricter transparency requirements, including full public access to the beneficial ownership...
European Parliament looks into use of cryptocurrencies and blockchain by criminals for illegal activities
A paper prepared by Policy Department A at the request of the European Parliament’s Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance delves into the increasing use of cryptocurrencies by...
Evaluation of the Consumer Credit Directive
The European Commission has published a roadmap on the Consumer Credit Directive (Directive). The Commission is looking to assess: effectiveness: whether the original objectives of the Directive have been achieved;...
Mobile Contactless SEPA Card Payments Interoperability Implementation Guidelines
Following a consultation in October 2017, the European Payments Council has published a revised version of its mobile contactless Single Euro Payments Area (SEPA) card payments interoperability implementation guidelines...
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...
Industry publishes MiFID 2 distributor templates
PIMFA and TISA have published a MiFID 2 Feedback Template and a guide on distributor reporting. It hopes the documents will help firms to meet their responsibilities under MiFID 2 and particularly that the Q&A will...
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...
FCA statement on EBA’s draft PSD2 Guidelines and Opinion for banks and others involved in open banking
The FCA has published a statement on the European Banking Authority’s (EBA) draft PSD2 Guidelines and Opinion on the Regulatory Technical Standards (RTS) on Strong Customer Authentication and Common and Secure...
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...
EBA consults on PSD2 RTS Guidelines for ASPSPs
The EBA has published a consultation on draft Guidelines supplementing the Regulatory Technical Standards on strong customer authentication published in the OJ in March 2018, and applicable from September 2019. Article...
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...
EU agrees money laundering criminal sanctions
The Council of the EU has agreed measures on criminal sanctions for money laundering offences. A new Directive will set minimum rules for defining money laundering offences and the criminal sanctions for them. The...
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 gives IDD guidance to non-UK coverholders
Lloyd’s has published guidance for non-UK EEA coverholders on the actions they must take to ensure IDD compliance. The guidance focuses on agreement between all parties in the distribution chain on who the product...
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...
PRA publishes policy statement on financial management for insurers
Following its consultation on effective financial management and planning for insurance firms and groups, the PRA has now published its final policy statement PS10/18, and Supervisory Statement SS4/18, ‘Financial...
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...
EC VP speech highlights risks arising from Brexit
In a recent speech, Vice-President of the EC, Valdis Dombrovskis, warned of the consequences arising from the fact that the transition period agreed at a European level was part of the overall future withdrawal...
Andrew Bailey of the FCA discusses open financial markets
The FCA has published a speech by its Chief Executive, Andrew Bailey, in which he spoke about open markets through the prism of Brexit, including the prospects and reasons for a transition period and what the steady...
EP publishes MLD5 text
Following its vote to approve MLD5, the EP has now published the provisional version of the approved text.
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...
ECB consults on cyber resilience oversight expectations
The European Central Bank (ECB) has launched a consultation on cyber resilience oversight expectations. The consultation contains a draft document which defines the ECB’s expectations in terms of cyber resilience, based...
ECON DRAFT REPORT ON FINANCIAL SERVICES REGULATION AND SUPERVISION RELATIONSHIP BETWEEN EU AND THIRD COUNTRIES
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) published its draft report on the financial services regulation and supervision relationship between the EU and third countries. The...
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 responds on financial regulation post Brexit
John Glen, Economic Secretary to the Treasury, has responded to the Lords EU Financial Affairs Sub-Committee’s January report on the future of financial regulation and supervision post-Brexit. The response, which...
FCA SPEECH ON BREXIT: TRANSITION AND FINANCIAL REGULATION
The FCA has published a speech by Andrew Bailey, Chief Executive of the FCA, on Brexit, following the agreement reached between the UK and EU on a transition period. Key issues highlighted by Mr Bailey include: the...
Council of the EU approves EU-US insurance agreement
Following the announcement in September last year that the EU and the USA signed a bilateral agreement on insurance and reinsurance prudential measures, the Council of the EU has now formally adopted a decision to...
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...
EU Commission communicates Action Plan for financing sustainable growth
The EU Commission has published a communication on its action plan for financing sustainable growth. The action plan aims to: reorient capital flows towards sustainable investment in order to achieve sustainable and...
Commission unveils Fintech and crowdfunding action plan
The European Commission has published an action plan aimed at making Europe a global hub for Fintech. The plan is to make markets safer and easier for new players to access while enabling the financial sector to make...
Chancellor speaks on financial services and Brexit
Philip Hammond gave his long-awaited speech on financial services and the future. He referenced: that financial services is not just a London business and that two-thirds of financial services jobs in the UK are...
Insurance Europe publishes position paper on the consequences of Brexit on existing contracts
Insurance Europe has published a position paper on the consequences of Brexit on existing insurance contracts. The paper discusses: existing (re)insurance contracts that may be affected by Brexit and how customers may...
Council of EU publishes provisional text of Directive amending IDD transposition date
Further to the European Parliament’s vote on 1 March 2018, the Council of the EU has published the provisional text of the Directive amending IDD as regards the date of application of Member States’ transposition...
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...
EIOPA publishes final set of advice to the Commission on Solvency 2 Delegated Regulation
The European Insurance and Occupational Pensions Authority (EIOPA), has published its second and final set of advice to the European Commission on the Solvency Capital Requirement (SCR) formula under the Solvency 2...
AFME publishes Brexit guidance on wholesale FS contracts
The Association for Financial Markets in Europe (AFME), has published a guide on the impact of Brexit on wholesale financial services contracts. The guide takes the form of FAQs and is intended to help clients of banks...
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...
The three ESAs warn consumers on the risk of virtual currencies
The three ESAs (consisting of the European Securities and Markets Authority, the European Banking Authority and the European Insurance and Occupational Pensions Authority) issued a warning to consumers on the high risks...
Insurance Europe publishes Brexit position papers
Insurance Europe has published two position papers relating to Brexit. The first paper discusses the need for a transitional arrangement, stating that such an arrangement is crucial for business continuity until legal...
ESMA publishes 2018 Risk Assessment Work Programme
ESMA has published its Risk Assessment Work Programme for 2018, in which it establishes priorities for assessing securities market risks. ESMA will complement ongoing market monitoring through its semi-annual Report on...
Commission launches AIFMD survey
The European Commission is carrying out a survey on how the AIFMD has worked in practice and how it has met its objectives. Anyone can respond to the online survey.
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...
FCA speech – The future of the city
On 5 February 2018, Andrew Bailey, FCA Chief Executive, delivered a speech, the Future of the City, which focuses on the transition to Brexit and the future of the UK regulatory regime. Key highlights include: the FCA...
FCA consults on implementation of EU Benchmarks Regulation
FCA has published a consultation paper on Handbook changes necessary as a result of the EU Benchmarks Regulation and the UK Benchmarks Regulations 2018. Specifically, it plans changes to DEPP and EG FCA proposes to...
PRA consults on changes relating to IDD commencement date
The PRA has published a consultation paper on amending the effective date of its rules implementing the IDD, in response to proposals from the European Commission to push IDD implementation back from 23 February 2018 to...
Treasury delays transposition of IDD until the application date is confirmed
The European Parliament and European Council are considering the proposal to delay the application date of IDD until 1 October 2018. The Treasury has updated its webpage to explain that it will delay making the...
EU Blockchain Observatory and Forum launched
The European Commission has announced the launch of an EU Blockchain Observatory and Forum. This aims to: highlight key developments in blockchain technology; promote European participants; and reinforce European...
EBA starts 2018 stress test
EBA has launched the 2018 stress test. It will cover 48 banks and EBA expects to publish the results in early November.
MEPs divided on ML high risk list
The Economics and Home Affairs Committees in the EP have voted through additions to the Commission’s MLD4 blacklist of high risk jurisdictions by the narrowest of margins. The proposal was to include Tunisia, Sri...
EIOPA revises work programme for 2018
The European Insurance and Occupational Pensions Authority (EIOPA) has published a revised version of its 2018 work programme, which was first published in September 2017. The revised version incorporates resources...
EBA writes to Commission on authentication RTS
The EBA has written to the European Commission following the Commission’s adoption of the RTS on strong customer authentication under PSD2. The EBA welcomes the adoption, appreciates the note the Commission took...
Chancellor writes to businesses on Brexit
Philip Hammond, together with David Davies and Greg Clarke, has written an open letter to businesses setting out what the UK wants to see in the post-Brexit implementation period. The letter says the Government is clear...
European Commission publishes report on implementation and impact of EMD2
The European Commission has published a report on the implementation and impact of the second Electronic Money Directive (EMD2). The report focuses on the application of prudential requirements for electronic money...
Commission finalises own funds adjustment RTS
The European Commission has finalised the RTS for procedures excluding transactions with NFCs established in third countries for the purposes of the own funds requirement for credit valuation adjustment risk. The RTS...
MLD4 high risk jurisdiction list in OJ
The Commission’s Delegated Regulation adding Ethiopia to its list of high risk countries under MLD4 has been published in the OJEU.
ESAs publish CDD opinion
The joint committee of the ESAs has published an opinion on the use of innovative solutions towards CDD. The opinion forms part of wider work on the “responsible and effective” use of innovation to enhance...
GDPR compliance: the final countdown
We have written an article on the final countdown to GDPR compliance.
The new Office for Professional Body Anti-Money Laundering Supervision established
The new regulator for anti-money laundering, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), was launched on 18 January 2018 thereby strengthening the UK’s anti-money laundering (AML)...
FCA publishes third policy statement on IDD implementation
FCA has published its third policy statement on IDD implementation, responding to feedback received on various consultations and providing near-final rules. In relation to life insurance distribution business, it covers...
ESMA updates transparency calculations for MiFID II/MiFIR
The European Securities and Markets Authority (ESMA) has published an extended version of MiFID II/MiFIR transitional transparency calculations (TTC) for equity and bond instruments. ESMA has added the applicable TTC...
PM meets FIs to talk Brexit
Theresa May has chaired a meeting of senior executives from a number of financial institutions to discuss the opportunities and challenges Brexit presents. She noted the UK’s aim of agreeing an implementation...
FMLC publishes WTO Brexit views
FMLC has published a paper exploring the basis of UK trade with the EU following Brexit, and the interplay this will have with World Trade Organization (WTO) principles. As many commentators have noted, the basis of UK...
ESMA and FCA issue statements on LEIs
In advance of the implementation date for MiFID II on 3 January 2018, ESMA has issued a public statement that provides a form of 6 month transitional period for certain trading venues and certain legal persons, to...
European Commission publishes proposals regarding capital requirements for investment firms
The European Commission is proposing an overhaul of the prudential requirements for investment firms by bringing in a two track system. The largest, more systemically important firms will be subject to the same rules...