CFTC Customer Advisory On Monday, the Commodity Futures Trading Commission (“CFTC” or “Commission”) issued its fourth virtual currency customer advisory, Customer Advisory 7756-18, as part of its outreach effort to educate market participants.  Titled, Use Caution When Buying Digital Coins or Tokens, the advisory warns customers of the risks of speculation of future value and fraud; it ultimately advises that the best protection is to exercise caution and to extensively research digital tokens and coins—and those who offer them for sale—prior to purchase. View Full Post
On 19 July 2018, the European Commission issued a further Communication on preparing for the UK’s withdrawal from the EU. The text of the Communication calls on Member States and private parties to step up preparations and follows a request by the European Council last month to intensify preparedness at all levels and for all outcomes. View Full Post
On 19 July 2018, the FCA published a speech given by Nausicaa Delfas (Executive Director of International, FCA). The speech, The FCA’s approach to Brexit: our preparations and our vision for the future, discusses the FCA’s preparations for Brexit. Key points include: the FCA is planning for a range of scenarios including the possibility of a ‘no-deal’ or ‘hard’ Brexit in March 2019; the changes that need to be made to UK financial services legislation will also mean changes to the FCA Handbook which the FCA intends to consult on in the autumn. View Full Post
On 20 July 2018, the European Supervisory Authorities published further guidance on the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs). The guidance consists of: additional Questions and Answers; and updates to the Flow diagrams for the risk and rewards calculations (New calculation example for Category 3 PRIIPs stress performance scenario). View Full Post
On 18 July 2018, the European Banking Authority (EBA) published final guidelines on fraud reporting under the revised Payment Services Directive (PSD2). The guidelines require payment service providers across the EU to collect and report data on payment transactions and fraudulent payment transactions using a consistent methodology, definitions and data breakdowns. View Full Post
On 18 July 2018, the Financial Action Task Force (FATF) published its report to the July 2018 G20 Finance Ministers and Central Bank Governors’ meeting. The report sets out FATF’s ongoing work to fight money laundering and terrorist financing. Such work includes de-risking and money laundering and terrorist financing risks of virtual currencies / crypto assets. View Full Post
On 19 July 2018, the European Banking Authority (EBA) published the following documents: final report on the guidelines on the revised common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing; revised final guidelines on the management of interest rate risk arising from non-trading activities; and revised final guidelines on institutions’ stress testing. View Full Post
“Sanctions” have been in the news quite often lately. The United Nations has adopted, and many of its member-states have imposed, trade and economic sanctions against North Korea to pressure its regime to give up nuclear weapons. Similarly, recent political developments surrounding the so-called “Iran Nuclear Deal” have been all about re-imposing sanctions in relation to Iran’s development of nuclear weapons. View Full Post