Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

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On 21 September 2018, the European Securities and Markets Authority (ESMA) published an opinion (the Opinion) on the European Commission’s (the Commission’s) revised proposal for amending Delegated Regulation (EU) 2017/587 (RTS 1). On 10 August 2018, the Commission endorsed, with amendments, ESMA’s proposal to amend RTS 1  to specify the concept of ‘prices reflecting prevailing market conditions’ and clarify that systematic internaliser’s quotes would only reflect prevailing market conditions where those quotes reflect the…
On 21 September 2018, the European Committee on Economic and Monetary Affairs (ECON) published two draft reports (the Reports) on European Parliament proposals in relation to the cross-border distribution of collective investment funds: draft report on the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC of the European Parliament and of the Council and Directive 2011/61/EU of the European Parliament and of the Council with regard to cross-border…
On 21 September 2018, the European Central Bank (ECB) published its guide to on-site inspections and internal model investigations (the Guide). The Guide acts as a reference document for the supervised entities and other legal entities for which the ECB has decided to launch an on-site inspection of. The Guide applies to inspections conducted in (i) significant institutions; (ii) less significant institutions, when the ECB decides to exercise directly all the relevant supervisory powers for…
On 21 September 2018, there was published in the Official Journal of the European Union (OJ) the Recommendation of the European Systemic Risk Board (ESRB) of 16 July 2018 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (the Recommendation). The Recommendation amends ESRB/2015/2 by recommending that relevant authorities reciprocate certain specified macroprudential policy measures that have already been adopted by the relevant authorities in Belgium, Estonia…
Norton Rose Fulbright is pleased to be sponsoring the 1LoD Summit in London on November 15. The 1LoD Summit is the largest event in the world dedicated to the front office risk and control function within the business. Topics on the agenda will include Supervision, Control Assurance, Conduct Risk, Surveillance, Rogue Trading and  more. The Summit is designed for those working in risk and control functions in the front office and individuals working in the 2nd and 3rd lines of…
On 20 September 2018, the FCA published Consultation Paper 18/26: Claims management companies: how we propose to apply the Senior Managers and Certification Regime, (CP18/26). Claims management companies (CMCs) will be regulated by the FCA from April 2019, and as such will be required to comply with the Senior Managers and Certification Regime (SM&CR), particularly given that evidence exists of misconduct among some firms in the CMC sector, which has been shown to be harming…
On 20 September 2018, the Basel Committee on Banking Supervision (BCBS) published a press release on the outcome of their meeting  of 19 and 20 September 2018 (the Press Release).  The Press Release notes that the BCBS discussed: the results of the annual assessment exercise for global systemically important banks (G-SIBs). The BCBS also agreed to publish the high-level indicator values of all the banks that are part of the G-SIB assessment exercise; progress on…
On 20 September 2018, the Basel Committee on Banking Supervision (BCBS) published responses to FAQs relating to the treatment of settled-to-market derivatives under the liquidity coverage ratio and net stable funding ratio. The FAQ responses clarify that the liquidity risks associated with settled-to-market derivatives are the same as those for more conventional collateralised-to-market derivatives, and should therefore be treated in an equivalent manner.…
On 20 September 2018, the International Organization of Securities Commissions (IOSCO) published a final report on retail OTC leveraged products (the Report), which provides measures for securities regulators to consider when addressing the risks arising from the marketing and sale of OTC leveraged products to retail investors. The Report provides three ‘toolkits’ containing guidance and measures for IOSCO members on ways to mitigate harm to retail investors in the sector. The three toolkits respectively set…