On 1 October 2020, the FCA published an updated version of the FCA Handbook to show the rules and guidance that will apply at the end of the transition period. Nausicaa Delfas, Executive Director of International at the FCA, said: ‘We are approaching the end of the transition period, so firms should be completing their final preparations. To help firms to prepare and provide clarity, we have published a version of our Handbook that will…

Financial services: Regulation tomorrow

EIOPA launches a consultation on a draft supervisory statement on risk mitigation techniques undertaken by insurers and reinsurers

By Laura Hodgson (UK)

October 1, 2020

The European Insurance and Occupational Pensions Authority (EIOPA) has launched a consultation on a draft supervisory statement that seeks to promote supervisory convergence in relation to the assessment and use of risk-mitigation technique in insurance. EIOPA has concerns that divergent practices or supervisory arbitrage in this area could create an un-level playing field. The supervisory statement is designed to be applied alongside the Solvency II Directive (2009/138/EC), the Solvency II Delegated Regulation ((EU) 2015/35) and…

Financial services: Regulation tomorrow

FCA sends ‘Dear CEO’ letter to general insurance intermediaries on adequate client money arrangements

By Laura Hodgson (UK)

October 1, 2020

The Financial Conduct Authority (FCA) has sent a ‘Dear CEO’ letter from Christopher Woolard, interim chief executive officer, to general insurance intermediaries. The letter states that during the COVID-19 pandemic it is imperative that intermediary firms maintain adequate arrangements to safeguard client money. The FCA expects senior management to have appropriate oversight over client money arrangements. The board should consider the letter and agree what further action might be necessary to ensure that the business…

Financial services: Regulation tomorrow

UK TPR notification window re-opens

By Simon Lovegrove (UK)

September 30, 2020

On 30 September 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 FCA has now re-opened the TPR notification window. The TPR will now take effect at the end of the transition period. EEA firms can now notify the FCA if they wish to use the TPR. Notifications should be submitted via the FCA’s Connect system before the end…

Financial services: Regulation tomorrow

ESMA updates RTS under the Benchmarks Regulation

By Hannah McAslan (UK)

September 30, 2020

On 29 September 2020, the European Securities and Markets Authority (ESMA) published a final report containing new sets of draft regulatory technical standards (RTS) under the Benchmarks Regulation (BMR). The ESMA final report has five chapters covering each of the areas for which ESMA is required to develop draft RTS (see below). Each chapter provides background information on ESMA’s mandate and the feedback it received to an earlier consultation on the draft RTS. ESMA also…

Financial services: Regulation tomorrow

ESMA proposes amendments to the MiFIR transparency regime for non-equity financial instruments

By Hannah Meakin (UK)

September 30, 2020

On 29 September 2020, the European Securities and Markets Authority (ESMA) published a final report on the MiFID II/MiFIR transparency regime applicable to non-equity financial instruments. In section 3 of the final report ESMA covers level 1 provisions starting with the proposals concerning the pre-trade transparency regime for non-equity instruments (section 3.1) which are intended to simplify the regime and, at the same time, increase transparency in the markets. ESMA also covers in this section…

Financial services: Regulation tomorrow

FCA publishes annual report on the regulatory perimeter

By Simon Lovegrove (UK)

September 30, 2020

On 29 September 2020, the FCA published its second annual perimeter report. In the perimeter report the FCA discusses its role and provides updates on the progress it has made on the issues which it discussed in last year’s report. It also sets out other areas where the FCA has made progress or where it continues to see harm to consumers and market users around the perimeter, particularly as a consequence of the COVID-19…

Financial services: Regulation tomorrow

Guidance on the annex to ESMA opinion determining third-country trading venues for the purpose of transparency under MiFIR

By Jochen Vester (UK)

September 30, 2020

On 29 September 2020, the European Securities and Markets Authority published a document providing guidance on the annex to its opinion determining third country trading venues for the purpose of transparency under MiFIR.…

Financial services: Regulation tomorrow

European Commission notice on BRRD II published in OJ

By Jochen Vester (UK) & Simon Lovegrove (UK)

September 30, 2020

On 29 September 2020, there was published in the Official Journal of the EU a Commission Notice relating to the interpretation of certain legal provisions of the revised bank resolution framework in reply to questions raised by Member States competent authorities (NCAs). The Commission Notice answers certain questions that NCAs have raised on the: Bank Recovery and Resolution Directive, as amended by Directive (EU) 2019/879 (BRRD). Single Resolution Mechanism Regulation, as amended by Regulation (EU)…

Financial services: Regulation tomorrow

Bank of England statement on ESMA recognition decisions

By Simon Lovegrove (UK)

September 29, 2020

On 28 September 2020, the Bank of England (BoE) issued a statement welcoming the European Securities and Markets Authority’s recognition decisions with respect to central counterparties (CCPs) established in third countries. The decisions give the formal permission for UK CCPs to operate in the EU, continue to provide clearing services to their EU members, and EU banks to continue to meet their obligations to UK CCPs.…

Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

Blog Authors

FCA publishes rules that will apply at the end of the transition period

EIOPA launches a consultation on a draft supervisory statement on risk mitigation techniques undertaken by insurers and reinsurers

FCA sends ‘Dear CEO’ letter to general insurance intermediaries on adequate client money arrangements

UK TPR notification window re-opens

ESMA updates RTS under the Benchmarks Regulation

ESMA proposes amendments to the MiFIR transparency regime for non-equity financial instruments

FCA publishes annual report on the regulatory perimeter

Guidance on the annex to ESMA opinion determining third-country trading venues for the purpose of transparency under MiFIR

European Commission notice on BRRD II published in OJ

Bank of England statement on ESMA recognition decisions

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