On 2 July 2020, the FCA published Policy Statement 20/7: FCA regulated fees and levies 2020/21: including feedback on CP20/06 and made rules (PS20/7). In PS20/7 the FCA sets out its feedback to its earlier consultation on regulated fees and levies for 2020/21 and confirms its final fees and levies. All FCA fee payers are affected by PS20/7. Table 1.1 at the end of chapter 1of PS20/7 will assist fee payers in identifying which chapters…

Financial services: Regulation tomorrow

Basel Committee finalises AML/CFT guidelines on supervisory cooperation

By Simon Lovegrove (UK)

July 3, 2020

On 2 July 2020, the Basel Committee on Banking Supervision issued an updated version of its guidelines on ‘Sound management of risks related to money laundering and financing of terrorism’. The updated version of the guidelines contains a new paragraph 96 in Part IV (role of supervisors) and Annex 5 (interaction and cooperation between prudential and AML/CFT supervisors). Annex 5 sets out specific principles, recommendations and descriptive examples, to facilitate effective and efficient…

Financial services: Regulation tomorrow

Commission decides to refer Austria, Belgium and the Netherlands to the Court of Justice of the EU for failing to fully implement EU anti-money laundering rules

By Lisa Lee Lewis (UK)

July 3, 2020

On 2 July 2020, the European Commission announced that it had referred Austria, Belgium and the Netherlands to the Court of Justice of the European Union, with a request for financial sanctions, for failing to fully implement the Fourth Anti-Money Laundering Directive into their national law. The Commission states that incomplete transposition concerns fundamental aspects of the anti-money laundering framework, such as betting and gambling legislation (Austria), mechanisms under which the Financial Intelligence Units exchange…

Financial services: Regulation tomorrow

European Commission’s High-Level Forum on Capital Markets Union issues final report

By Patrick Dolan (US) & Kathleen Scott (US)

July 3, 2020

On June 10, 2020, the European Commission’s High-Level Forum (HLF) issued its final report on the Capital Markets Union (CMU), which proposes detailed recommendations for improving and enhancing the capital markets of the European Union (EU). The report’s 17 recommendations are grouped under four larger themes: (i) creating a vibrant and competitive business environment; (ii) building stronger and more efficient market infrastructure; (iii) fostering retail investments in capital markets; and (iv) going beyond boundaries across…

Financial services: Regulation tomorrow

European Commission launches consultation on Solvency II

By Laura Hodgson (UK)

July 3, 2020

The European Commission has launched a consultation on key elements of the prudential framework for insurance and reinsurance firms required by the Solvency II Directive. While the European Insurance and Occupational Pensions Authority (EIOPA) is undertaking a technical consultation and data gathering exercise on Solvency II, the Commission seeks to obtain stakeholders views on the broader policy objectives and priorities in reviewing the Directive. The Commission is interested in stakeholders’ views related to insurers’ role…

Financial services: Regulation tomorrow

Lloyd’s announces timetable for the launch of its new third-party oversight regime

By Laura Hodgson (UK)

July 3, 2020

In July 2019 Lloyd’s announced (in Market Bulletin Y5257) proposals to introduce a new oversight framework for third-parties operating in the market. On 1 July 2020, Lloyd’s announced in a further Market Bulletin (Y5296) that the framework would be brought into effect on 30 September 2020. The new framework aims to ensure that arrangements with third-parties such as delegated underwriting authorities are more robustly managed and deliver better outcomes for policyholders. The…

Financial services: Regulation tomorrow

HKMA publishes white paper on green and sustainable banking

By Etelka Bogardi (HK) & Amy Chung

July 3, 2020

The Hong Kong Monetary Authority (the HKMA) has published a white paper outlining its initial views on the supervisory expectations for authorized institutions (AIs) in addressing climate-related issues. The development of the supervisory expectations forms part of the work envisaged under phase 2 of the three-phased approach introduced by the HKMA in May 2019, which is aimed at encouraging the adoption of green and sustainable banking in Hong Kong. The HKMA is proposing to launch…

Financial services: Regulation tomorrow

Update on TPR notification window

By Simon Lovegrove (UK)

July 2, 2020

On 1 July 2020, the FCA updated its web page on the temporary permissions regime (TPR) for inbound passporting EEA firms and funds. The update provides that the TPR will now take effect at the end of the transition period and that the FCA will re-open the notification window on 30 September 2020. This will allow firms and fund managers that have not yet notified the FCA of their intention to enter into the TPR…

Financial services: Regulation tomorrow

PRA Dear CEO letter on managing climate-related financial risk

By Daniel Nevzat (UK)

July 2, 2020

On 1 July 2020, the PRA issued a Dear CEO letter in which it states that firms should have fully embedded their approaches to managing climate-related financial risks by the end of 2021. This means that by the end of 2021, firms should be able to demonstrate that the expectations set out in ‘Supervisory Statement 3/19: Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change’ (SS3/19) have been implemented and embedded…

Financial services: Regulation tomorrow

FSCP discussion paper on digital advertising in financial services

By Matthew Gregory (UK)

July 2, 2020

On 1 July 2020, the Financial Services Consumer Panel (FSCP) issued a discussion paper on digital advertising in financial services. The discussion paper sets out potential consumer protection issues highlighted in two earlier FSCP exploratory research studies covering the digital customer journey for high-cost consumer lending and pensions encashment and online marketing strategies used by high-cost lenders and cash-to-pensions firms. The FSCP research provided evidence of potential consumer protection issues in the digital advertising of…

Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

Blog Authors

FCA Policy Statement on regulated fees and levies 2020/21

Basel Committee finalises AML/CFT guidelines on supervisory cooperation

Commission decides to refer Austria, Belgium and the Netherlands to the Court of Justice of the EU for failing to fully implement EU anti-money laundering rules

European Commission’s High-Level Forum on Capital Markets Union issues final report

European Commission launches consultation on Solvency II

Lloyd’s announces timetable for the launch of its new third-party oversight regime

HKMA publishes white paper on green and sustainable banking

Update on TPR notification window

PRA Dear CEO letter on managing climate-related financial risk

FSCP discussion paper on digital advertising in financial services

Stay Connected

Company

Support

New to the Network