Financial

By Jochen Vester (UK) on June 26, 2019

On 25 June 2019, the PRA published Consultation Paper 14/19: Pillar 2 liquidity: PRA110 reporting frequency threshold (CP14/19). In CP14/19 the PRA set out proposals to amend the reporting frequency of the PRA110 reporting template, when a firm is in stress. The proposal introduces a further threshold of total assets of £5 billion or above, calculated in accordance with Council Directive 86/635/EEC. Firms above this threshold, that would otherwise report PRA110 monthly, would report on…

Financial services: Regulation tomorrow

FCA confirms recognition of the FX Global and UK Money Markets Codes

By Simon Lovegrove (UK) on June 26, 2019

On 26 June 2019, the FCA confirmed that it was recognising the following voluntary market codes of best practice under its codes recognition scheme: FX Global Code – maintained and updated by the Global Foreign Exchange Committee. The code sets global principles of good practice standards in the foreign exchange (FX) market, promoting the integrity and effective functioning of the wholesale FX market; and UK Money Markets Code – maintained and updated by the Money…

Financial services: Regulation tomorrow

Joint statement on opportunistic strategies in the credit derivatives markets

By Hannah Meakin (UK) & Imogen Garner (UK) on June 26, 2019

On 24 June 2019, the FCA and the US Commodity Futures Trading Commission (CFTC) issued a joint statement on opportunistic strategies in the credit derivative markets. The statement outlines the respective agencies concerns and the commencement of collaborative efforts to address these concerns. The joint statement provides: ‘The continued pursuit of various opportunistic strategies in the credit derivatives markets, including but not limited to those that have been referred to as ‘manufactured credit events,’ may…

Financial services: Regulation tomorrow

ESMA consults on short-termism in financial markets

By Simon Lovegrove (UK) on June 26, 2019

On 24 June 2019, the European Securities and Markets Authority (ESMA) published a questionnaire which aims to gather evidence on potential short-term pressures on corporations stemming from the financial sector. By December 2019, ESMA will deliver a report to the European Commission based on its findings, in line with the Commission’s request to each of the three European Supervisory Authorities. The report will present evidence and possibly advice on potential undue short-termism. The Commission will…

Financial services: Regulation tomorrow

SRB updates MREL policy to reflect new Capital Requirements Regulation

By Matthew Gregory (UK) & Jochen Vester (UK) on June 26, 2019

On 25 June 2019, the Single Resolution Board (SRB) published an update on its policy on the minimum requirement for own funds and eligible liabilities (MREL) in light of the publication of the Banking Package in the Official Journal of the EU on 7 June 2019. The update is in the form of an addendum to the 2018 SRB MREL policy for the second wave of resolution plans (published on 16 January 2019), which applies…

The D&O Diary

U.S. Supreme Court Denies Cert in Toshiba Unsponsored ADRs Securities Suit

By Kevin LaCroix on June 25, 2019

As I noted in a recent post, the securities class action lawsuit pending against Toshiba raises the question of whether or not the U.S. securities laws apply to transactions in unsponsored American Depository Receipts (ADRs). The company’s petition to the U.S. Supreme Court posed the larger question of whether there are exceptions to the second-prong of the Morrison standard holding that the U.S. securities laws apply to domestic transactions in securities. A number of…

Broker- Dealer Law Corner

Implicit Recommendations To Hold: FINRA’s Suitability Rule Goes Toe-To-Toe With SEC’s Regulation BI

By Alan Wolper on June 25, 2019

Nearly ten years ago, FINRA decided to update its old suitability rule, NASD Rule 2310. It had been around a long time, and while it seemed to work fine, FINRA decided to incorporate into the new amended rule – FINRA Rule 2111 – some new concepts. One such concept concerned recommendations to hold. Under the old rule, only recommendations to purchase, sell or exchange a security had to be suitable. Under the new rule, FINRA…

Financial Services Perspectives

Private Flood Insurance Mandatory Acceptance Begins July 1, 2019

By Heather Howell Wright on June 25, 2019

In February 2019, the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (the interagency regulators) issued a final rule implementing the portion of the Biggert-Waters Flood Insurance Reform Act mandating acceptance of private insurance policies in certain circumstances. The rule goes into effect on July 1, 2019. Is your institution ready to…

FinReg

New Economic Sanctions on Iran: More Sound than Fury

By John B. Reynolds, Jeanine P. McGuinness, Will Schisa & Brooklynn Moore on June 25, 2019

On June 24, 2019, President Trump signed an Executive Order (“EO” or “Order”) imposing new economic sanctions on the Supreme Leader of Iran, Ayatollah Ali Khamenei, and the Iranian Supreme Leader’s Office. The EO blocks all of the Supreme Leader’s property and interests in property in the United States, that come within the United States, or come within the possession or control of any United States person, and provides that such property may not be…

Securities litigation and enforcement

The Test on a Motion to Strike Pleadings in Proceedings Before the Ontario Securities Commission

By Linda Fuerst on June 25, 2019

In (Re) El-Bouji, 2019 ONSEC 19, the Ontario Securities Commission (OSC) determined that the test on a motion to strike portions of an affidavit filed by Staff in response to the respondent’s motion challenging the Commission’s jurisdiction to adjudicate certain allegations in a Notice of Hearing and Statement of Allegations is essentially the same as the test set out in Rule 25.11 of the Ontario Rules of Civil Procedure. Orders by the OSC to…

Financial

Pillar 2 liquidity: PRA110 reporting frequency threshold

FCA confirms recognition of the FX Global and UK Money Markets Codes

Joint statement on opportunistic strategies in the credit derivatives markets

ESMA consults on short-termism in financial markets

SRB updates MREL policy to reflect new Capital Requirements Regulation

U.S. Supreme Court Denies Cert in Toshiba Unsponsored ADRs Securities Suit

Implicit Recommendations To Hold: FINRA’s Suitability Rule Goes Toe-To-Toe With SEC’s Regulation BI

Private Flood Insurance Mandatory Acceptance Begins July 1, 2019

New Economic Sanctions on Iran: More Sound than Fury

The Test on a Motion to Strike Pleadings in Proceedings Before the Ontario Securities Commission

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