Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

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Whilst the global financial crisis may have receded, the asset management industry continues to assimilate significant regulatory change – Brexit, AIFMD review, FCA Asset Management Market Study – to name but a few. We have recently published a new Asset Management Regulation hub that houses all of all knowledge materials in this area including our AIFMD surveys, our global asset management quarterly updates, AIFMD and UCITS insight resources and relevant Brexit related materials. To access…
There has been published in the OJ, Commission Delegated Regulation (EU) 2018/1108 of 7 May 2018 supplementing the Fourth Anti-Money Laundering Directive with regard to regulatory technical standards on the criteria for the appointment of central contact points for electronic money issuers and payment service providers and with rules on their functions. The Delegated Regulation enters into force on the twentieth day following its publication in the OJ.…
On August 8, 2018, the Superintendent of the New York State Department of Financial Services issued a reminder to DFS-regulated financial services businesses that starting September 4, 2018, they were required to be in compliance with the next set of requirements in the DFS cybersecurity regulations located at Part 500 of the New York State Financial Services regulations. Subject to certain exemptions, New York State imposes cybersecurity requirements on all entities (Covered Entities) subject to…
On 9 August 2018, HM Treasury published a further financial services related draft statutory instrument (draft SI) under the European Union (Withdrawal) Act 2018. The draft SI, The Short Selling (Amendment) (EU Exit) Regulations 2018, is intended to ensure that the EU Short Selling Regulation continues to operate effectively in the UK once the UK has left the EU. In particular, the explanatory memorandum to the draft SI states that changes for firms with…
On 9 August 2018, there was published in the Official Journal of the EU (OJ) the following legislative measures supplementing the Benchmarks Regulation (BMR): Commission Implementing Regulation (EU) 2018/1105 of 8 August 2018 laying down implementing technical standards with regard to procedures and forms for the provision of information by competent authorities to ESMA under the BMR; and Commission Implementing Regulation (EU) 2018/1106 of 8 August 2018 laying down implementing technical standards with regard to…
On 9 August 2018, the European Securities and Markets Authority (ESMA) updated its validation rules under EMIR, with regards to the revised technical standards on reporting under Article 9 of EMIR. The updated validation rules are provided in an excel document, and are highlighted in red within the ‘Conditions, and Format and Content’ column. The updated validation rules concern the submitted reports for the following fields: Reporting Timestamp; Reporting Counterparty ID; ID of the Other…
On 9 August 2018, a group of international regulatory authorities (the Basel Committee on Banking Supervision, Committee on Payments and Market Infrastructures, Financial Stability Board and International Organization of Securities Commissions) co-published a report on the analysis of central clearing interdependencies. The international authorities launched a data collection project in 2016 to identify, quantify and analyse interdependencies between central counterparties (CCPs) and major clearing members and financial service providers, and the resulting systemic implications. Initial…
On 8 August 2018, the FCA published a Dear CEO letter concerning cross-border booking arrangements. In light of the UK’s withdrawal from the EU, the FCA underlines that its duties gained from regulation such as MiFID II will continue, to ensure the integrity of the UK’s financial markets. The FCA further states that firms expanding into Europe must structure themselves in a way to ensure the FCA can continue to supervise their activities. The FCA…
On 7 August 2018, a group of international standard setting bodies (the Basel Committee on Banking Supervision, the Committee on Payments and Market Infrastructures, the Financial Stability Board (FSB) and the International Organization of Securities Commissions) published a consultative document on incentives to centrally clear over-the-counter (OTC) derivatives. The international standard setting bodies reconvened the Derivatives Assessment Team (DAT) to “re-examine whether adequate incentives to clear centrally OTC derivatives are in place” as one of…
On 8 August 2018, the European Securities and Markets Authority (ESMA) published an updated communication on the clearing and trading obligation for pension scheme arrangements (PSAs). In the communication, ESMA appreciates that certain PSAs would face challenges to start clearing their over-the-counter (OTC) derivative contracts and trading them on trading venues on 17 August 2018, the date when the current temporary exemption from the clearing obligation under EMIR expires. ESMA states that from a legal perspective,…