On 17 October 2019, the International Swaps and Derivatives Association (ISDA) published a set of No-Deal Brexit FAQs. The FAQs provide a high level summary of the key impacts in the case of a no-deal Brexit on the over-the-counter derivatives market and ISDA documentation. These FAQs are additional to the ISDA’s previously published Brexit FAQs (see previous blog here). The FAQs focus on the consequences immediately arising on exit day and do…

On 17 October 2019, the FCA published a memorandum of understanding (MoU) agreed between itself, HM Treasury, the Bank of England (BoE), and the PRA on equivalence and exemptions. The MoU has been established in accordance with Regulation 6 of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) Regulations 2019 (Equivalence Regulations). The MoU sets out how the parties expect to coordinate the discharge of their respective functions in relation to equivalence…

On 17 October 2019, the FCA published its latest complaints data which shows that overall complaints increased by 9.7% compared to the previous six months, driven by the increase in payment protection insurance (PPI) related complaints which continues to be the most complained about product. However, the FCA notes that when PPI is excluded, complaints decreased by a 6% drop, from 2.32m to 2.18m. According to the FCA, when PPI is taken out of the…

On 17 October 2019, the PRA published Consultation Paper: Liquidity: The PRA’s approach to supervising liquidity and funding risks (CP27/19). In CP27/19 the PRA sets out its proposals to update its supervisory statement on supervising liquidity and finding risk (SS24/15) to: reflect updates to the Bank of England’s (BoE’s) Market Operations Guide which was published in October 2019 outlining the framework for the BoE’s operations in sterling money markets and updated its sterling market framework.…

On 16 October 2019, the European Commission (Commission) published a Delegated Regulation supplementing the Securitisation Regulation with regard to regulatory technical standards (RTS) specifying the information and the details of a securitisation to be made available by the originator, sponsor and securitisation special purpose entity (SSPE). Article 7(3) and (4) of the Securitisation Regulation mandates the European Securities and Markets Authority (ESMA) to produce draft RTS and implementing technical standards (ITS) specifying both what information…

On 17 October 2019, the European Central Bank’s (ECB) working group on euro risk-free rates published a report on the risk of management implications of the transition from the current euro overnight index average (EONIA) to the ECB’s euro short-term rate (€STR) and the introduction of €STR-based fallbacks for the Euro Interbank Offered Rate (EURIBOR). The report focuses mainly on the risk management implications for banks, but also touches on additional challenges facing the asset…

On 16 October 2019, the European Banking Authority (EBA) issued a consultation paper containing draft Implementing Technical Standards (ITS) on public disclosures by institutions of the information referred to in Titles II and III of Part Eight of the Capital Requirements Regulation (CRR). Regulation 2019/876 (CRR2) amending the CRR mandates the EBA, in Article 434a, to develop draft ITS specifying uniform disclosure formats, and associated instructions in accordance with which the disclosures required under Titles…