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On 13 December 2018, the FCA and PRA jointly published a consultation paper setting out proposed changes to mortgage reporting requirements (FCA CP18/41, PRA CP30/18). The joint consultation will be directly relevant to: mortgage lenders, home finance administrators and entities that own mortgage books but which are not authorised to lend. The consultation is also relevant to stakeholders with an interest in the mortgage and home finance market including trade bodies representing home finance firms.…
On 13 December 2018, the FCA issued a short update on its website concerning firms’ preparations for Brexit. The FCA states that it has updated its webpage on firms’ preparations for Brexit on some key areas: contract continuity – firms that do business in the EEA under a passport are reminded that they need to consider how they will continue to service customers with existing contracts after Brexit; execution of firms’ contingency plans – firms…
On 13 December 2018, a draft of The Financial Markets and Insolvency (Amendment and Transitional Provision) (EU Exit) Regulations 2019 was published on the legislation.gov.uk website and laid before Parliament. An explanatory memorandum has also been published. The draft statutory instrument makes amendments to retained EU law related to financial market infrastructure insolvency to ensure that the legal framework can operate effectively in a UK context once the UK leaves the EU in any scenario.…
On 13 December 2018, there was published on the legislation.gov.uk website The Money Laundering and Terrorist Financing (Miscellaneous Amendments) Regulations 2018 together with an explanatory memorandum. The statutory instrument amends the: Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs) in order to implement minor amendments the Fourth Anti-Money Laundering Directive made by Directive 2018/843/EU and to specify fully the appeal rights under the MLRs; Oversight of…
On 12 December 2018, HM Treasury published a draft version of The Law Applicable to Contractual Obligations and Non-Contractual Obligations (Amendment etc.) (EU Exit) Regulations 2018 (the draft SI), together with an explanatory memorandum. The purpose of the draft SI is to ensure that the EU rules that determine the law applicable to contractual and non-contractual obligations continue to operate effectively in domestic law after the UK leaves the EU. Those EU rules are…
On 12 December 2018, HM Treasury published a draft version of the Mortgage Credit (Amendment) (EU Exit) Regulations 2019 (the draft SI).  An accompanying explanatory information webpage was published on 22 November 2018. The EU Mortgage Credit Directive (MCD) sets out the EU’s framework of conduct rules for mortgage firms. The UK’s Mortgage Credit Directive Order 2015 (MCDO) is domestic secondary legislation which transposed the MCD into UK law. The draft SI addresses deficiencies in…
On 12 December 2018, HM Treasury published a draft version of the Financial Services (Distance Marketing) (Amendment and Savings Provisions) (EU Exit) Regulations 2019 (the draft SI). An accompanying explanatory information webpage was published on 21 November 2018. Distance contracts are defined in Article 2 of the Financial Services (Distance Marketing) Regulations 2004 (the UK Regulations) as contracts for financial services between consumers and suppliers concluded under an organised distance sale, or service provision scheme…
On 12 December 2018, the FCA published Consultation Paper 18/40: consultation on proposed amendment of COBS 21.3 permitted links rules  (CP18/40). The FCA’s proposals in CP18/40 will be of interest to those with an interest in unit-linked funds that may wish to hold illiquid or higher risk assets. The proposals follow recommendations by the Law Commission in its June 2017 report on pension funds and social investment regarding potential regulatory barriers to investment in…
On 11 December 2018, the House of Commons’ Treasury Committee published a report (the Report) on the Government’s and Bank of England’s analysis of the draft Withdrawal Agreement (our blog on the former analysis can be found here). The Report documents evidence collected in the Treasury Committee’s inquiry of 3 to 5 December 2018, on the UK’s future economic relationship with the EU. Chapter 6 of the Report considers the impact of the draft…
On 10 December 2018, the FCA published the key findings from its cyber multi-firm review of a sample of 20 firms operating in the asset management and wholesale banking sectors. The review involved meetings with board members, management committees and executives from the firms’ first and second lines of defence. Key findings include: whilst boards and management committees were more sensitive to the topic of cyber security than in the past, most continue to have…