Joint statement by the European Council and the Commission on ‘Stablecoins’

On December 5, 2019, the European Council and Commission released a Joint Statement on “Stablecoins”. The Statement highlighted the economic benefits and opportunities of technological innovations vis a versa challenges and risks posed by Stablecoins. The Joint Statement reiterated that global ‘Stablecoin’ projects and arrangements should not be operated until all related risks and concerns […]

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MIFID Investment Firms will need to use a new form to notify the FCA of Management Body changes for Non-SMF Directors

From 9 December 2019, MIFID Investment Firms and Optional Exempt Firms will need to use a new form to submit information to the Financial Conduct Authority, when appointing Non-SMF Directors to, or withdrawing them from, their Management Body. If a Firm’s Management Body changes, the Firm will need to complete the form ‘Notification Procedures for […]

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BCBS Proposes Revisions to Credit Valuation Adjustment Risk Framework

The Basel Committee on Banking Supervision has issued a Consultation detailing limited, targeted, and final adjustments to the Credit Valuation Adjustment Risk Framework. Issued in December 2017, The ‘BCBS’ issued the associated ‘CVA’ Risk Framework, as part of the Basel III Post-Crisis Regulatory Reforms. This revision aims to align the Risk Framework with the Minimum […]

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UK Government Letter in respect of the EU-wide ‘Whistleblower’ Rules to be implemented by 2021

The Council of the European Union has formally approved new Rules detailing the protection of ‘Whistleblowers’. The Directive on the protection of persons who report breaches of Union law entered into force in the EU on 12 November 2019. Members States have 2 years after the date to transpose the new Rules into their National […]

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EBA publishes guidelines on Information and Communication Technology and Security Risk Management

Following increasing Security Risks bolstered by the complexity of Information and Communication Technology and associated cyber-related incidents, the European Banking Authority has released its Final Report on the guidelines for ‘ICT’ and Security Risk Management for Financial Institutions. These guidelines describe how ‘FIs’ should manage their Internal and External ‘ICT’ and Security Risk Exposures. It […]

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Basel Committee guiding principles for operationalisation of sectoral countercyclical capital buffers

On 27th November 2019. the Basel Committee on Banking Supervision published its guiding principles for the operationalisation of sectorial Countercyclical Capital Buffer (‘SCCyB’). This gives National Authorities the power, in addition to the already implemented Basel III standards on 1st January 2019 (known as ‘CCyB’), to implement an additional buffer of capital in order to […]

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FCA temporary intervention on the marketing of speculative mini-bonds to retail investors

On 26th November 2019 the Financial Conduct Authority announced it was introducing a temporary product intervention for 12 months, commencing 1st January 2020, on the promotion of Speculative Mini-Bonds to Retail Investors. This is driven by the fact that the ‘FCA’ considers that Retail Investors do not fully understand the high risk nature of these […]

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EBA consults on amendments to Regulatory Technical Standards and Implementing Technical Standards on passport notification

The European Banking Authority has launched a Consultation Paper on draft amended Regulatory Technical Standards and Implementing Technical Standards (‘ITS’) on Passport Notification. The Consultation examines two sets of Technical Standards on Passport Notification, developed by the ‘EBA’, in accordance with the mandate set out in Articles 35, 36 and 39 of the Capital Requirequirements […]

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FCA publish Handbook Notice No. 71

On 22 November 2019, the Financial Conduct Authority published Handbook Notice No. 71. Which describes the changes to the Handbook and other materials made by the FCA Board under its legislative and other statutory powers on 24 October 2019 and 21 November 2019. Firms should note that there is no particular sectorial theme to this Handbook […]

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EU Commission Delegated Regulation amending the EU ETS Auctioning Regulation

On 8 November, the EU Commission published their Delegated Regulation (EU) 2019/1868 of 28 August 2019 amending Regulation (EU) No 1031/2010. To align the Auctioning of Allowances with the European Union Emissions Trading System (‘ETS’) Rules for the period 2021 to 2030 and with the classification of allowances as Financial Instruments pursuant to the Markets […]

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ESMA consultation on MiFID II position limits

The European Securities and Markets Authority has launched a Consultation on Position Limits and Position Management Controls in Commodity Derivatives. The Consultation Paper is divided into two parts, covering: (1) MiFID II Review Report on the application of Position Limits and Position Management Controls and (2) Technical advice on Position Reporting Thresholds. ‘Consequently, ESMA’ seeks […]

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FCA asks Authorised Fund Managers to review their liquidity management arrangements

The Financial Conduct Authority has published a letter sent by the Head of its Asset Management Department to the Chairs of Authorised Fund Managers in relation to good practices for effective liquidity management. The letter stresses that ‘AFMs’ are responsible for ensuring effective fund liquidity, even where Investment Management has been delegated to another person. […]

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