Introduction On 19 April 2021, the FCA issued the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR) by publishing Consultation Paper 21/7: A new UK prudential regime for MiFID investment firms (CP21/7). CP21/7 should be read in conjunction with the FCA’s first consultation paper on the IFPR which it published last December (CP20/24). In CP21/7 the FCA sets out proposals in the following areas: own funds requirements,…

On 19 April 2021, HM Treasury issued a press release regarding the comments that the Chancellor, Rishi Sunak MP, made at the Fintech Week conference. Key points in the press release include: To support fintech firms to scale up, the FCA will take forward a ‘scale box’ – a package of measures to enhance its pioneering regulatory sandbox. The FCA will also launch the second phase of its Digital Sandbox to enable firms to test…

On 19 April 2021, the European Central Bank (ECB) published a project report concerning a targeted review of internal models. The targeted review of internal models (TRIM) was a multi-year project launched by the ECB at the beginning of 2016 in close cooperation with the national competent authorities (NCAs) that are part of European banking supervision. TRIM aimed to assess whether the Pillar I internal models used by significant institutions within the Single Supervisory Mechanism…

On 19 April 2021, HM Treasury issued a consultation document on the regulation of non-transferable debt securities (mini-bonds). Non-transferable debt securities (NTDS), commonly referred to as ‘mini-bonds’, are unlisted bonds typically issued by companies to retail investors in order to raise finance. As non-transferable securities, investors cannot sell their investment, which normally must be held until maturity. The issuance of NTDS is, in general, not a regulated activity for the purposes of the Financial Services…

On 19 April 2021, the Financial Ombudsman Service announced that Nausicaa Delfas had been appointed its interim Chief executive and chief ombudsman. Nausicaa succeeds Caroline Wayman, who has stepped down after seven years as Chief executive and chief ombudsman.…

On 19 April 2021, the Working Group on Sterling Risk-Free Reference Rates published a paper that builds on its work to date in areas relating to the bond market and the derivatives market, to support the transition for structured products. It is intended that the paper is used by structured product issuers, manufacturers, distributors and investors in their plans to meet the recommended milestones set out in the Working Group’s roadmap and priorities for transition…

On 19 April 2021, the PRA issued a statement providing information on capital, notification, disclosure and reporting requirements for loans under the Mortgage Guarantee Scheme (MGS) as set out in relevant UK legislation. The statement covers: Firms using the Standardised Approach to credit risk for the underlying mortgage loans. Firms using the Internal Ratings Based approach to credit risk for the underlying mortgage loans. 5% vertical slice. Maturity mismatch. Significant Risk Transfer Notification. Private Securitisation…