Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

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ECB finalises guide on supervisory approach to consolidation

January 13, 2021

On 12 January 2021, the European Central Bank (ECB) published a final guide outlining its supervisory approach to consolidation in the banking sector, following a public consultation which ended on 1 October 2020. The ECB has also published a feedback statement setting out its views on respondents’ comments on the consultation. With the final guide, ECB banking supervision intends to clarify, within the current regulatory framework, the principles underpinning the prudential supervisory approach it follows…

Financial services: Regulation tomorrow

HM Treasury letter to the Chair of the Lord’s EU Committee regarding EMIR 2.2 and the recognition of CCP

By Simon Lovegrove (UK)

January 13, 2021

On 12 January 2021, HM Treasury published a letter from John Glenn MP (Economic Secretary to HM Treasury) to Lord Kinnoull (Chair of the European Union Committee, House of Lords) providing information on the following: The deficiencies identified in the EU’s delegated acts implementing EMIR 2.2 and the timescale for introduction of EMIR 2.2 regulations in the UK. The letter notes that the Government took steps to ensure that the onshored EMIR 2.2 delegated acts…

Financial services: Regulation tomorrow

Responsible openness: The PRA’s approach to supervising banks – speech by David Bailey

By Simon Lovegrove (UK)

January 12, 2021

Following our recent blog on the PRA’s new consultation on international banks, the regulator has issued a speech by David Bailey (PRA Executive Director, Financial Market Infrastructure) on the same topic. In his speech Mr Bailey describes in more detail the concept of responsible openness which Sam Woods first described in his 2019 Mansion House speech. Mr Bailey also covers supervisory cooperation noting in particular the open and supportive relationship the UK regulators have with…

Financial services: Regulation tomorrow

New FCA and PRA webpages – The final countdown – Completing sterling LIBOR transition by end-2021

By Simon Lovegrove (UK) & Hannah Meakin (UK)

January 12, 2021

On 11 January 2021, the FCA issued a new webpage The final countdown: Completing sterling LIBOR transition by end-2021. On the webpage the FCA warns firms that 2021 is the critical year for firms to complete their transition away from LIBOR. The LIBOR administrator, ICE Benchmark Administration, is consulting on ceasing publication of all sterling LIBOR settings at the end of 2021, leaving just one year for firms to remove their remaining reliance on…

Financial services: Regulation tomorrow

ICE Benchmark Administration Launches ICE Term SONIA Reference Rates as a Benchmark for Use in Financial Instruments

By Hannah Meakin (UK)

January 12, 2021

On 11 January 2021, ICE Benchmark Administration announced the launch of its ICE Term SONIA Reference Rates (ICE TSRR) as a benchmark for use in financial instruments by licensees. The ICE TSRR are designed to measure expected (i.e. forward-looking) SONIA rates over one, three, six and 12 month tenor periods, and are based on a Waterfall Methodology using eligible prices and volumes for specified SONIA-linked interest rate derivative products.…

Financial services: Regulation tomorrow

Consultation Paper 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’

By Jonathan Herbst (UK), Matthew Gregory (UK) & Simon Lovegrove (UK)

January 11, 2021

Introduction On 11 January 2021, the PRA published Consultation Paper 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’ (CP2/21). The proposals in CP2/21 are relevant to existing or prospective PRA authorised banks and designated investment firms that are headquartered outside of the UK or are part of a group based outside of the UK. The proposals cover the PRA’s approach to supervising the UK activities of these banks and investment firms…

Financial services: Regulation tomorrow

Adding a new sub-fund to an umbrella scheme in the TMPR – update

By Imogen Garner (UK) & Iona Wright (UK)

January 11, 2021

On 3 December 2020, we reported that the FCA had published a new webpage in which it explained the proposed process for adding a new sub-fund to an umbrella scheme that will be in the temporary marketing permissions regime (TMPR). On 31 December 2020, the FCA updated its webpage by inserting links to the final versions of the following: Direction under regulations 63(3)(c) and 64(1) of the Collective Investment Schemes (Amendment etc) (EU Exit) Regulations…

Financial services: Regulation tomorrow

Market Watch 66

By Simon Lovegrove (UK)

January 11, 2021

On 11 January 2021, the FCA published Market Watch 66 in which it set out its expectations for firms on recording telephone conversations and electronic communications when alternative working arrangements are in place, including increased homeworking. In terms of risk from reduced monitoring, the key messages in Market Watch 66 include: Risks from misconduct may be heightened or increased by homeworking. Firms will need to ensure that where unmonitored and encrypted communication applications are used…

Financial services: Regulation tomorrow

Financial crime systems and controls during coronavirus situation – update

By Lisa Lee Lewis (UK) & John Coley (UK)

January 11, 2021

On 6 May 2020, we reported that the FCA had published a new webpage concerning a statement on financial crime systems and controls during coronavirus situation. On 8 January 2021, the FCA added the following text to this webpage, “This statement will no longer apply from 7 February 2021”.…

Financial services: Regulation tomorrow

FCA updates webpage on information for firms regarding the COVID-19 pandemic

By Simon Lovegrove (UK)

January 11, 2021

On 17 March 2020, we reported that the FCA had published a new webpage containing information for firms regarding the COVID-19 pandemic. On 6 May 2020, we further reported that the FCA had added a new section to this webpage concerning information security. On 8 January 2021, the FCA updated the text that appears on this webpage under the heading ‘Market and Reporting’. The updated text provides that: “At the start of the pandemic, if…

Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

ECB finalises guide on supervisory approach to consolidation

HM Treasury letter to the Chair of the Lord’s EU Committee regarding EMIR 2.2 and the recognition of CCP

Responsible openness: The PRA’s approach to supervising banks – speech by David Bailey

New FCA and PRA webpages – The final countdown – Completing sterling LIBOR transition by end-2021

ICE Benchmark Administration Launches ICE Term SONIA Reference Rates as a Benchmark for Use in Financial Instruments

Consultation Paper 2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’

Adding a new sub-fund to an umbrella scheme in the TMPR – update

Market Watch 66

Financial crime systems and controls during coronavirus situation – update

FCA updates webpage on information for firms regarding the COVID-19 pandemic

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