The FCA has issued a statement to address an error made during the on-shoring of the The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the FPO). During the on-shoring of the FPO, the definition of Relevant Market inadvertently failed to include relevant UK markets. Presently, this means that the exemptions under Articles 37, 41, 67, 68, 69 of the FPO do not cover financial promotions relating to relevant UK markets or investments…

Financial services: Regulation tomorrow

PRA issues PS18/21 to correct the definition of ‘higher paid material risk taker’

By Iona Wright (UK) & Arup Sen

July 22, 2021

The Prudential Regulation Authority’s (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 9/21 ‘Remuneration: Correction to the definition of ‘higher paid material risk taker’. It also contains the PRA’s final policy, as follows: amendments to the Remuneration Part of the PRA Rulebook (Appendix 1); and an updated Supervisory Statement (SS) 2/17 ‘Remuneration’ (Appendix 2). In CP9/21 the PRA made the following proposals which have now been finalised in PS18/21: as regards…

Financial services: Regulation tomorrow

Monthly Global FinTech regulatory updater

By Hannah Meakin (UK)

July 22, 2021

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought them together since 2015. In 2018, PTDL came under the umbrella of the Global Blockchain Business Council (GBBC). The…

Financial services: Regulation tomorrow

Commission overhauls AML and CFT rules

By Lisa Lee Lewis (UK), John Coley (UK) & Simon Lovegrove (UK)

July 21, 2021

On 20 July 2021, the European Commission published a package of legislative proposals designed to strengthen the EU’s anti-money laundering and countering the financing of terrorism (AML/CFT) rules. The legislative package consists of a: Regulation establishing a new EU AML/CFT Authority. In the financial sector, this new European Authority directly supervise financial sector entities that are exposed to the highest risk of money laundering and terrorist financing. The new Authority will also play a vital…

Financial services: Regulation tomorrow

FCA consults on post-Brexit divergence for PRIIPS regulation

By Matthew Gregory (UK) & Simon Lovegrove (UK)

July 21, 2021

On 20 July 2021, the FCA published Consultation Paper 21/23: PRIIPs – Proposed scope rules and amendments to Regulatory Technical Standards (CP21/23). The proposals in CP21/23 will be of particular interest to consumers, consumer organisations and those firms and individuals that manufacture Packaged Retail and Insurance based Investment Products (PRIIPs) and those who advise on or distribute PRIIPs. In CP21/23 the FCA is seeking views on proposed targeted amendments to address concerns with the PRIPPs…

Financial services: Regulation tomorrow

Basel Committee consults on an amendment to the process for reviewing the G-SIB methodology

By Matthew Gregory (UK)

July 21, 2021

On 20 July 2021, the Basel Committee of Banking Supervision published a consultation document setting out a technical amendment to the Basel framework. The amendment sets out a new process that will be used by the Committee to review the assessment methodology for global systemically important banks (G-SIBs). The Committee plans to replace the existing three year review cycle with a process of ongoing monitoring and review. This will include monitoring: (i) recent developments in…

Financial services: Regulation tomorrow

ESMA publishes fourth annual report on use of sanctions for UCITS

By Iona Wright (UK)

July 21, 2021

On 20 July 2021, the European Securities and Markets Authority (ESMA) issued its latest report in the use of supervisory sanctions by Member State competent authorities (NCAs) under the UCITS IV Directive. The report has been prepared in accordance with Article 99e(1) of the UCITS IV Directive and covers the period from 1 January 2020 to 31 December 2020. In this period 13 NCAs imposed a total of 57 penalties. The total aggregated value of…

Financial services: Regulation tomorrow

ESMA makes new Q&As available

By Simon Lovegrove (UK)

July 21, 2021

On 20 July 2021, the European Securities and Markets Authority announced that it had updated Q&As covering: Alternative Investment Fund Managers Directive. UCITS Directive. MiFIR data reporting. Prospectus Regulation. Benchmarks Regulation.…

Financial services: Regulation tomorrow

ESMA publishes second report on sanctions under AIFMD

By Iona Wright (UK)

July 21, 2021

On 20 July 2021, the European Securities and Markets Authority (ESMA) issued its second annual report on the use by Member State competent authorities (NCAs) of sanctions under the Alternative Investment Fund Managers Directive (AIFMD). The report has been prepared in accordance with Article 48(3) AIFMD. It contains information on the penalties and measures imposed by NCAs from 1 January 2020 to 31 December 2020. Overall, 11 NCAs imposed a total of 61 penalties; the…

Financial services: Regulation tomorrow

Commission sets out proposed Directive as regards access of NCAs to centralised bank account registries through the single access point

By Simon Lovegrove (UK)

July 21, 2021

On 20 July 2021, the European Commission published a draft Directive as regards access of Member State competent authorities to centralised bank account registries through the single access point. Article 32a of the Fifth Anti-Money Laundering Directive requires Member States to put in place centralised automated mechanisms, such as central registers or central electronic data retrieval systems, to allow for the identification of any natural or legal persons holding or controlling payment accounts, bank…

Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

Blog Authors

FCA issues statement for firms using certain exemptions to the Financial Promotions Order

PRA issues PS18/21 to correct the definition of ‘higher paid material risk taker’

Monthly Global FinTech regulatory updater

Commission overhauls AML and CFT rules

FCA consults on post-Brexit divergence for PRIIPS regulation

Basel Committee consults on an amendment to the process for reviewing the G-SIB methodology

ESMA publishes fourth annual report on use of sanctions for UCITS

ESMA makes new Q&As available

ESMA publishes second report on sanctions under AIFMD

Commission sets out proposed Directive as regards access of NCAs to centralised bank account registries through the single access point

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