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For further information on the effects of COVID-19 on financial services, see: Coronavirus (COVID-19)—key developments for financial services lawyers and
Coronavirus (COVID-19)—key financial services issues.
The Financial Conduct Authority (FCA) announced proposals to ensure that firms provide tailored support for users of consumer credit and overdraft products who continue to face payment difficulties due to the coronavirus (COVID-19). The proposals
will cover users of credit cards and other revolving credit (store card and catalogue credit), personal loans, overdrafts, motor finance, buy-now pay-later (BNPL), rent-to-own (RTO), pawnbroking and high-cost short-term credit (HCSTC) products.
The deadline for comments is 21 September 2020.
Source: FCA proposes the next stage of support for consumer credit and overdraft customers.
For further information ,see: FCA: Treating Customers Fairly—essentials.
The FCA confirmed the support mortgage borrowers will receive if they continue to face payment difficulties due to the coronavirus (COVID-19) pandemic. It has also published finalised guidance on how firms should support ‘mortgage borrowers
who have benefitted from payment deferrals under the current guidance and who continue to face financial difficulties, as well as those whose financial situation may be affected by coronavirus after 31 October.’ The FCA has also published
FS20/14—a feedback statement on the draft guidance on mortgages and coronavirus.
Source: FCA confirms the next stage of support for mortgage borrowers.
The FCA asked a number of the firms it regulates to complete a short follow-up survey to help it obtain a more accurate view of firms’ financial resilience as a result of coronavirus (COVID-19). The completion of this survey is mandatory.
Source: Coronavirus (COVID-19) Financial Resilience Survey.
The European Fund and Asset Management Association (EFAMA) published a position paper on the European Commission’s proposal to modify the MiFID II investment research rules for SMEs and fixed income instruments, as part of its broader capital
markets recovery package proposed in response to the coronavirus (COVID-19) pandemic. Loosening research and execution unbundling requirements when the research relates to small and mid-cap companies is one of several measures envisaged to improve
the visibility and financing opportunities of SME companies during the recovery. EFAMA welcomes the optionality of the regime proposed, but says there are more effective ways to foster SMEs’ access to markets.
Source: EFAMA position paper on EC consultation paper on COVID-19’s ‘Capital markets recovery package’—Investment research for SME and fixed income instruments.
UK Finance is urging people to be aware of criminals exploiting the coronavirus (COVID-19) to target their victims, after figures revealed a sharp rise in impersonation scams in the first half of 2020. According to the trade association, almost 15,000
impersonation scam cases were reported in the first half of 2020, up 84 per cent compared to the same period in 2019.
Sources: Impersonation scams almost double in first half of 2020 as criminals exploit COVID-19 to target victims and
Which? response to UK Finance figures on impersonation scams.
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The International Swaps and Derivatives Association (ISDA) has published a letter dated 7 September 2020 asking the European Commission and the European Securities and Markets Authority (ESMA) to consider taking action to mitigate the risks posed to EU
banks, investment firms and pension funds, as well as UK pension funds, by the fact that UK pension funds will cease to benefit from the exemption under the EMIR clearing obligation for pension scheme arrangements following the end of the Brexit transition
period on 31 December 2020.
Source: Letter on post-Brexit exemption for pension scheme arrangements under EMIR
The International Swaps and Derivatives Association (ISDA) has published a paper setting out its analysis of the impact of Brexit on the derivatives trading obligation (DTO) under the Markets in Financial Instruments Directive 2014/65/EU (MiFID II). In
the paper ISDA recommends that the EU and the UK recognise the equivalence of each other’s derivatives trading venues to ensure EU and UK counterparties can continue to trade with each other after the Brexit implementation period has ended.
Source: ISDA analysis of the impact of Brexit on the MIFID derivatives trading obligation
The FCA announced that its interim CEO, Chris Woolard, will chair a review of the future regulation of the unsecured credit market, reporting to the FCA board. The review will concentrate on how regulation can better support a healthy unsecured lending
market. Woolard will leave the FCA after the review is finished.
Sources: Christopher Woolard to chair review of unsecured credit market regulation and
Governor Andrew Bailey statement on Chris Woolard’s departure from the Financial Conduct Authority.
The FCA published its 2019–2020 Annual Report and Accounts. Highlights from the FCA include work in relation to coronavirus (COVID-19), Brexit, imposing over £224m in fines, work in relation to the Senior Managers and Certification Regime
(SM&CR), scam protection, protecting vulnerable customers from high-cost credit and disclosure failings.
Sources: FCA publishes Annual Report and Accounts 2019/20 and
Annual Report and Accounts 2019/20.
The Payment Systems Regulator (PSR) published its Annual Report and Accounts for 2019/20, which sets out its work in tackling payment scams; helping protect people’s access to cash; supporting the development of a new interbank payment system;
and continuing to promote competition and innovation in payment systems.
Sources: Payment Systems Regulator publishes Annual Report and Accounts for 2019/20 and
Factsheet—Annual Report and Accounts 2019/20.
The FCA published its latest policy development update, which sets out recent publications, upcoming consultations and feedbacks, and expected quarterly consultations.
Source: FCA policy development update.
Guideline (EU) 2020/1284 of the European Central Bank (ECB), which amends Guideline (EU) 2018/797 on the Eurosystem’s provision of reserve management services in euro to central banks and countries located outside the euro area and to international
organisations (ECB/2020/34), has been published in the Official Journal of the EU. The amending guideline seeks to further increase transparency in reporting and information sharing within the Eurosystem.
Source: Guideline (EU) 2020/1284 of the European Central Bank of 7 September 2020 amending Guideline (EU) 2018/797 on the Eurosystem’s provision of reserve management services in euro to central banks and countries located outside the euro area and to international organisations (ECB/2020/34)
The Bank of England (BoE) published a policy statement (PS) providing feedback on the responses it received to the consultation paper (CP) on the fees regime for financial market infrastructure (FMI) supervision 2020/21 and other related policy changes,
which ran from May to July 2020. The PS also sets out the final FMI fee rates for 2020/21 and how the BoE will apportion the surplus from the 2019/20 FMI fee year.
Source: Fees regime for the supervision of financial market infrastructure (FMI)—September 2020.
The European Banking Authority (EBA) issued a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting. The revised list highlights those validation rules which have been deactivated due to incorrectness
or for triggering IT problems. The EBA also informs EU Competent Authorities that ‘data submitted in accordance with these ITS should not be formally validated against the set of deactivated rules’.
Source: EBA issues revised list of ITS validation rules.
The FCA launched a call for input (CFI) to help shape its work on improving the consumer investment market, with the aim of delivering ‘a market that works well for the millions of people who rely on it’. The CFI seeks to address the FCA’s
goal of reducing harm in the consumer investments market, which was identified as a priority in its 2020/21 business plan. The deadline for comments is 15 December 2020.
Source: FCA seeks views on how to improve the consumer investment market.
PIMFA, the trade association for the wealth management and financial advice industry, has given evidence to the House of Commons’ Work and Pension Select Committee inquiry into pension freedoms and scams, in which it said that scams and Financial
Services Compensation Scheme (FSCS) issues are symptomatic of supervisory failings.
Source: Scams and FSCS issues are symptomatic of supervisory failings says PIMFA at Select Committee inquiry.
The European Commission delivered a report to the European Parliament and Council assessing whether Member States have identified all trusts and similar legal arrangements governed under their laws and made them subject to the obligations of the Fourth
Money Laundering Directive (EU) 2015/849 (MLD4). The report reveals a lack of consistency among Member States in identifying arrangements similar to trusts and monitoring and registering these legal arrangements, as well as variations
in transparency of beneficial ownership information.
Source: Report from the Commission to the European Parliament and the Council assessing whether Member States have duly identified and made subject to the obligations of Directive (EU) 2015/849 all trusts and similar legal arrangements governed under their laws.
For further information, see: Money Laundering Directive 4 (MLD4)—essentials.
The EBA published its response to the European Commission’s call for advice on how to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT). In its advice, the EBA sets out ways to tackle
vulnerabilities linked to divergent national approaches and gaps in the EU defences against money laundering and terrorist financing (ML/TF).
Source: EBA calls on the EU Commission to establish a single rulebook on fighting money laundering and terrorist financing.
The Financial Action Task Force (FATF) published a report on ‘red flag’ indicators of money laundering and terrorist financing (ML/TF) in virtual assets and related services. FATF hopes the report will help national authorities and other
stakeholders detect whether virtual assets are being used for criminal activity. The report covers red flag indicators related to transactions, transaction patterns, anonymity, geographical risks, indicators about senders or recipients and indicators
in the source of funds or wealth. The report highlights that the indicators are not exhaustive and ‘are best used when applying other contextual information from domestic law enforcement and public sources.’
Source: Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing .
The Euro Cyber Resilience Board for pan-European Financial Infrastructures (ECRB) launched the Cyber Information and Intelligence Sharing Initiative (CIISI-EU), a multilateral initiative bringing together public and private entities to share strategic,
operational and tactical cyber information through technical platforms and meetings. By exchanging knowledge and experience within a trusted community, the ECRB aims to improve both individual and joint preparedness to tackle potential cyber threats.
Source: New initiative to facilitate cyber information and intelligence sharing.
The Complaints Commissioner issued final report FCA00763, dated 28 August 2020, concerning a complaint made against the FCA in relation to its online registration process. The complaint was partly upheld by the Complaints Commissioner, who recommended
that the FCA ask the complainant for feedback and suggestions for improving the use of its screens and registering for its new data collection system.
Source: FCA00763—Issued 28 August 2020. Published 15 September 2020.
The FCA, the Prudential Regulation Authority (PRA) and the BoE have accepted the Treasury Committee’s request to extend the deadline of the consultation (CP20/11) on the proposal to revise the Complaints Scheme, which handles complaints
against the FCA, the BoE and the PRA. The new closing date will therefore be 12 October 2020.
Source: Bank of England and FCA letter to TSC re CP20/11: Complaints against the regulators.
The chair of the Treasury Committee, Mel Stride MP, has written to the FCA and the BoE urging them to consider extending the consultation period on the proposal to revise the Complaints Scheme, which handles complaints against the FCA, the BoE
and the Prudential Regulation Authority (PRA). The consultation is due to end on 14 September 2020, but the Committee has received representations expressing concern that the eight-week consultation period is not sufficient.
Source: Financial regulators should urgently consider extending complaints scheme consultation.
The FCA published a decision notice in respect of Corrado Abbattista, an experienced trader and a portfolio manager, partner and chief investment officer at Fenician Capital Management LLP, for market abuse, imposing a financial penalty of £100,000
and prohibiting him from performing any functions in relation to regulated activity.
Source: FCA publishes Decision Notice against Corrado Abbattista for market manipulation.
The Working Group on Sterling Risk-Free Reference Rates (WGSRFRR) recommended that, by the end of September 2020, lenders should be prepared to offer non-LIBOR linked products to customers as well as to work with their customers to ensure clear
contractual arrangements are included which are able to facilitate conversion of all new or refinanced LIBOR-linked products to SONIA, or other alternatives, before the transition from LIBOR in 2021. In addition, the WGSRFRR advises that lenders
cease to issue all sterling LIBOR-linked loan products which expire after 2021 by March 2021.
Source: The Working Group on Sterling Risk-Free Reference Rates News Release: Securing a SONIA-based sterling loan market.
For further information, see: LIBOR transition.
UK Finance and the CBI have jointly published a guide for business customers with LIBOR-linked loans to help them understand the anticipated discontinuation of the benchmark rate LIBOR and what they should expect to hear from their bank or lender
in the coming months. This is an updated version of UK Finance’s November 2019 guide and reflects recent developments, including updated timelines.
Sources: Discontinuation of LIBOR—Guide for business customers and
The end of LIBOR: Time for businesses to prepare for transition.
Commission Delegated Regulation (EU) 2020/1272 of 4 June 2020 amending and correcting Delegated Regulation (EU) 2019/979 supplementing the Regulation (EU) 2017/1129 of the European Parliament and of the Council (the Prospectus
Regulation) with regard to regulatory technical standards on key financial information in the summary of a prospectus, the publication and classification of prospectuses, advertisements for securities, supplements to a prospectus, and the notification
portal has been published in the Official Journal.
Source: Commission Delegated Regulation (EU) 2020/1272 of 4 June 2020 amending and correcting Delegated Regulation (EU) 2019/979 supplementing Regulation (EU) 2017/1129 of the European Parliament and of the Council with regard to regulatory technical standards on key financial information in the summary of a prospectus, the publication and classification of prospectuses, advertisements for securities, supplements to a prospectus, and the notification portal
For further information, see: The Prospectus Regulation—essentials.
Commission Delegated Regulation (EU) 2020/1273 of 4 June 2020 amending and correcting Delegated Regulation (EU) 2019/980 supplementing Regulation (EU) 2017/1129 of the European Parliament and of the Council (the Prospectus Regulation)
as regards the format, content, scrutiny and approval of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market has been published in the Official Journal.
Source: Commission Delegated Regulation (EU) 2020/1273 of 4 June 2020 amending and correcting Delegated Regulation (EU) 2019/980 supplementing Regulation (EU) 2017/1129 of the European Parliament and of the Council as regards the format, content, scrutiny and approval of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market
The Association for Financial Markets in Europe (AFME) is calling on the EU to help unlock the potential of new technologies for European capital markets, outlining a regulatory framework needed to support banks as they adopt new technologies such
as cryptoassets, artificial intelligence (AI) and cloud computing, harness the value from data, and address the challenges of cybersecurity and operational resilience.
Source: AFME calls for the EU to unlock innovative, competitive, and resilient European capital markets in the digital age.
The EFAMA published a position paper on the European Commission’s proposal to modify the MiFID II investment research rules for SMEs and fixed income instruments, as part of its broader capital markets recovery package proposed in response to
the coronavirus (COVID-19) pandemic. Loosening research and execution unbundling requirements when the research relates to small and mid-cap companies is one of several measures envisaged to improve the visibility and financing opportunities of
SME companies during the recovery. EFAMA welcomes the optionality of the regime proposed, but says there are more effective ways to foster SMEs’ access to markets.
The Council of the EU has published a corrigendum to the Commission Delegated Regulation of 16.10.2019 supplementing Regulation (EU) 2017/2402 (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 SSPE. Corrections are made to Annex XI: Underlying exposures information—asset-backed commercial paper..
Source: Corrigendum of 20.7.2020 to Annexes to the Commission Delegated Regulation (EU) …/... of 16.10.2019 supplementing Regulation (EU) 2017/2402 of the European Parliament and of the Council with regard to regulatory technical standards specifying the information and the details of a securitisation to be made available by the originator, sponsor and SSPE.
For further information, see: Securitisation Regulation—essentials.
The Committee on Economic and Monetary Affairs (ECON) of the European Parliament has adopted a report on the further development of the capital markets union (CMU) to improve access to capital market finance, in particular by SMEs, and further enable
retail investor participation.
Source: Results of the morning voting session of 10 September—updated.
For further information, see: The Capital Markets Union.
The EFAMA published a report entitled: 'Household participation in capital markets—Assessing the current state and measuring future progress'. The report precedes the European Commission’s forthcoming new action plan on the capital markets
union (CMU) and contains ten policy recommendations to help advance the CMU goal of fostering retail investments in capital markets instruments.
Source: EFAMA calls for the use of KPIs to monitor national progress in household participation in capital markets.
The FCA published its annual Market Cleanliness Statistic for the UK equity markets, alongside trade transparency and market liquidity data.
Sources: Market cleanliness statistics and Trade transparency and market liquidity data.
The International Capital Market Association (ICMA) responded to the European Commission consultation on investment research. The Commission had invited feedback about its delegated directive draft amending rules regarding the regime for research
on small and mid-cap issuers and on fixed-income instruments to help the recovery from the coronavirus (COVID-19) pandemic. In its response, ICMA highlights that the Commission should consider other policy options to support SME research than
to partially review unbundling rules. According to ICMA, the approach taken by the Commission would not ‘contribute to reviving SME research’ as an important number of ICMA’s members would not be able to make use of these potential
Source: ICMA AMIC responds to EC consultation on investment research.
The World Federation of Exchanges (WFE), the global industry group for exchanges and central counterparties (CCPs), has issued a guidance note, aimed at policy questions arising from any resurgence of market volatility. In particular, the WFE’s
guidance focuses on how exchanges create fair and orderly markets; and why, when navigating times of economic uncertainty, it is better and safer to maintain continuous visibility of asset prices and risk premia rather than suppressing markets.
The WFE says understanding these issues is key to avoiding harmful public policy in relation to all three regulatory imperatives: investor protection, market integrity and systemic risk.
Source: The World Federation of Exchanges issues guidance on fair & orderly markets as new wave looms.
The European Parliament’s Economic and Monetary Affairs Committee (ECON) has voted to recommend that the Parliament raise no objections to three Commission delegated regulations adopted by the European Commission on 14 July 2020 in relation
to the treatment of third country central counterparties (CCPs) under Regulation (EU) 648/2012 (EMIR).
Sources: Recommendation for a decision pursuant to Rule 111(6) of the Rules of Procedure to raise no objections to the Commission delegated regulation of 14 July 2020 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to fees charged by the European Securities and Markets Authority to central counterparties established in third countries (C(2020)4891—2020/2720(DEA)),
Recommendation for a decision pursuant to Rule 111(6) of the Rules of Procedure to raise no objections to the Commission delegated regulation of 14 July 2020 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council
with regard to the criteria that ESMA should take into account to determine whether a central counterparty established in a third country is systemically important or likely to become systemically important for the financial stability of the
Union or of one or more of its Member States (C(2020)4892—2020/2726(DEA)) and Recommendation for a decision pursuant to Rule 111(6) of the Rules of Procedure to raise no objections to the Commission delegated regulation of 14 July 2020 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to the minimum elements to be assessed by ESMA when assessing third-country CCPs’ requests for comparable compliance and the modalities and conditions of that assessment (C(2020)4895—2020/2729(DEA)).
For further information, see: EMIR—essentials.
The Council of the EU started a written procedure for three draft commission delegated regulations supplementing Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR). The delegated regulations
concern third country central counterparties (CCPs) and in particular requests for comparable compliance, fees payable and criteria for determining whether the CCPs are systemically important. Responses are due by 11 September 2020.
Source: START OF WRITTEN PROCEDURE.
The International Swaps and Derivatives Association (ISDA) announced the launch of a new online platform named ISDA Create. The platform allows buy- and sell-side firms to electronically negotiate their documentation, making the process 'more efficient
and less time consuming'. In addition, the platform allows for legal and commercial data within the documents to be captured ‘without any additional effort’. The ISDA's press release contains all relevant information relating to ISDA
Create, broken down into six key sections including features, fact sheets and webinars.
Source: ISDA Create InfoHub.
SI 2020/990: Provisions are made to extend the scope of the Pension Protection Fund’s rights as a creditor when moratoriums are in place in relation to relevant Co-operative and Community Benefit Societies and when restructuring
plans are in place in relation to relevant societies (as defined in regulation 3), which include credit unions. The Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) (Amendment) Regulations
2020 are revoked. These Regulations come into force on 16 September 2020.
Read the official version of this legislation and the explanatory memorandum.
Pentti Hakkarainen, a member of the supervisory board of the European Central Bank (ECB), has said in a speech that banks must pursue ambitious digital transformation plans in order to adapt to long-term technological changes that will alter the way
customers demand and receive financial products. In Hakkarainen’s view, this will require innovation to place the focus on the customer service experience; merely adopting advanced technologies to improve internal processes is not enough.
Source: Technology exposes banks’ vulnerabilities.
The European Commission is seeking feedback for its upcoming review of European long-term investment funds (ELTIFs), which will analyse how well ELTIFs are working, and in particular how they are contributing to the integration of capital markets
in Europe (CMU) and the EU’s goal of smart, sustainable and inclusive growth. Responses are sought by 14 October 2020.
Source: Long-term investment funds—review of EU rules.
For further information, see: European Long-Term Investment Funds Regulation (the ELTIF Regulation).
The FCA updated its coronavirus (COVID-19)-related webpage on extending deadlines to publishing fund reports and accounts.
Source: Extending deadlines to publishing fund reports and accounts.
The Investment Association (IA) launched a consultation on the future of its global bonds sector; one of its 37 open-ended fund sectors. This consultation forms part of IA’s work to include exchange-traded funds (ETFs) into its fund sectors.
Responses are due by 10 October 2020.
Source: IA LAUNCHES CONSULTATION ON GLOBAL BONDS SECTOR.
The PRA has published letters it has emailed to the boards of directors of Category 5 credit unions with the findings of its 2020 annual assessment. Credit unions (CUs) received one of two letters, depending on which peer group they fell into.
The PRA carries out individual assessments for those Category 5 plus credit unions, but also an annual assessment of all Category 5 credit unions as part of their larger peer group.
Sources: PRA 2020 annual assessment of category 5 credit unions, Category 5 plus credit unions and Category 5 credit unions under £15m and 10,000 members.
For further information, see: Credit unions—essentials.
SI 2020/963: Amendments are made to the Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 to omit paragraph 1J of Part 1A of Schedule 1. Paragraph
1J made a modification omitting section A55 of the Insolvency Act 1986, which provides that the Secretary of State may make regulations making different provision for different purposes, and consequential and other provisions. The
effect of omitting paragraph 1J is that section A55 applies, by virtue of article 2 of the 2014 Order. This Order comes into force on 10 September 2020.
SI 2020/Draft: This draft enactment replaces the previous draft SI published on 15 July 2020. These draft Regulations are laid to establish the first part of a debt respite scheme for people with debt problems. This part gives eligible people
with debt problems who receive professional debt advice access to a 60-day period in which interest, fees and charges are frozen and enforcement action is paused in England and Wales. They come into force partly on the day that section
157, 181 and 187 of the Renting Homes (Wales) Act 2016 and Schedule AA1 to the Mental Capacity Act 2005 come into force, and fully on 4 May 2021. This draft enactment was re-laid with technical corrections.
The full draft legislation can be found here. The draft explanatory memorandum can be found
The FCA announced proposals to ensure that firms provide tailored support for users of consumer credit and overdraft products who continue to face payment difficulties due to the coronavirus (COVID-19). The proposals will cover users of credit
cards and other revolving credit (store card and catalogue credit), personal loans, overdrafts, motor finance, buy-now pay-later (BNPL), rent-to-own (RTO), pawnbroking and high-cost short-term credit (HCSTC) products. The deadline for comments
is 21 September 2020.
The FCA confirmed the support mortgage borrowers will receive if they continue to face payment difficulties due to the coronavirus (COVID-19) pandemic. It has also published finalised guidance on how firms should support ‘mortgage borrowers
who have benefitted from payment deferrals under the current guidance and who continue to face financial difficulties, as well as those whose financial situation may be affected by coronavirus after 31 October.’ The FCA also published
FS20/14—a feedback statement on the draft guidance on mortgages and coronavirus.
The FCA issued a press release in response to the judgment handed down by the High Court in the FCA’s business interruption insurance test case. The FCA’s interim chief executive Christopher Woolard said the judgment, in which the court
substantially found in favour of the arguments presented by the FCA on the majority of the key issues, was ‘a significant step in resolving the uncertainty being faced by policyholders’.
Source: Result of FCA’s Business Interruption test case.
For further information, see: Coronavirus (COVID-19)—business interruption insurance.
On 15 September 2020, the High Court handed down its judgment in the Financial Conduct Authority’s (FCA) test case. Joe Bryant, partner at Beale & Co, comments on the practical implications of the judgment for the insurance sector.
Sources: Business interruption insurance and Result of FCA’s Business Interruption test case.
On 15 September 2020, the High Court handed down its judgment in the Financial Conduct Authority’s (FCA) test case. Sarah Irwin, solicitor at Weightmans, comments on the practical implications of the judgment for the insurance sector.
The FCA announced that the court has advised that the judgment in the business interruption (BI) insurance test case will be handed down at 10.30 am on 15 September 2020. The FCA will publish it on its dedicated BI website and LexisPSL will also provide
comprehensive analysis of the judgment.
Source: Business interruption insurance.
Insurance Europe (IE) published its high-level views in response to a consultation by the European Commission on an intra-EU investment protection and facilitation initiative. IE states that a stable and favourable investment environment with clear
rules, effective remedies and measures to facilitate access to investment opportunities is crucial and is in line with the objectives of flagship initiatives, such as the capital markets union (CMU) project.
Source: Intra-EU investment: Insurers support improved investment protection and facilitation.
IE published its response to a consultation by the European Insurance and Occupational Pensions Authority (EIOPA) on the (re)insurance value chain and new business models arising from digitalisation, in which it calls for a level regulatory playing
field for new market entrants and business models.
Source: Insurers call for level regulatory playing field for new market entrants and business models.
The FCA published finalised guidance FG20/3: Branch and ATM closures or conversions, which sets out the regulator’s expectations for the steps firms should take when considering closing branches or ATMs, or converting a free-to-use ATM to pay-to-use.
Source: FCA finalises its expectation for firms on maintaining access to cash for customers.
The PSR published details of its annual monitoring exercise into the Current Account Switch Service (CASS)’s compliance with the Payment Account Regulations 2015 (PARs 2015). According to the PSR, it is satisfied that the CASS continues to meet
the criteria for designation as an alternative switching scheme. This follows a review of information and evidence submitted by Pay.UK, the operator of CASS, for the purpose of an annual assessment.
Source: PSR’s annual monitoring 2020: CASS’s compliance with the Payment Account Regulations 2015.
The PSR published two documents which set out its plans to disclose material underlying its pass-through analysis through a ‘confidentiality ring’, to help in responding to the soon-to-be-published consultation that will accompany the
PSR’s interim report of its market review into card-acquiring services (the Market Review). The consultation is due to last for 12 weeks.
Sources: Pass-through disclosure in the market review into card-acquiring services and
Draft undertakings for the confidentiality ring used for pass-through disclosure.
The PSR published its interim report on the supply of card-acquiring services, which shows that merchants could make savings by shopping around and either switching or negotiating with their current provider—but many small and medium ones don’t.
The PSR has been carrying out a market review following concerns that the supply of these services may not be working well for merchants, and ultimately consumers. The PSR has been examining competition issues, the fees merchants pay for card-acquiring
services, and the quality of service they receive.
Sources: MR18/1.7—Market review into the supply of card-acquiring services: Interim report,
PSR announces provisional findings of card acquiring market review, MR18/1.7—Glossary—Card-acquiring market review,
Infographic—What happens when a consumer uses a credit or debit card?, MR18/1.7 Annex 1—Industry background—Card-acquiring market review, MR18/1.7 Annex 2—Pass-through analysis—Card-acquiring market review, MR18/1.7 Annex 3—Financial Review—Card-acquiring market review, MR18/1.7—Annex 4—Scheme fees—Card-acquiring market review, MR18/1.7 Annex 5—Barriers to entry and expansion—Card-acquiring market review, MR18/1.7 Annex on merchant survey results and MR18/1.7 Annex on merchant survey technical report.
Pay.UK published an update regarding its consultation on the ‘Next Generation Standard for UK Retail Payments’, which closed in April 2020 (following a coronavirus (COVID-19)-related extension). The update includes details of Pay.UK’s
recommended direction for the adoption of ISO 20022 and information regarding the delivery plan for the next generation standard.
Source: ‘Next Generation Standard for UK Retail Payments’ consultation update.
Pay.UK and the BoE announced the appointment of Karen Braithwaite, the global head of transaction banking at Barclays, as the new chair of the Standards Advisory Panel, from 16 September 2020.
Source: New chair announced for the Standards Advisory Panel.
The Investment Association (IA) has published a guide for investment managers working with fintechs, providing advice for understanding, on-boarding and implementing fintech within the investment and wealth management sector. The guide follows the process
of considering fintech engagement from the establishment of a clear ‘problem statement’ or business need through to the implementation of new technologies within firms, and provides operational advice and checklists for both investment
managers and fintechs.
Source: IA launches guidance for investment managers working with fintechs.
The EBA has prepared a questionnaire to collect information on institutions’ current practices regarding environmental, social and governance (ESG) disclosures, and on the classifications and metrics currently in use, and on their view on
how Pillar 3 disclosures should be implemented and interact with other disclosure frameworks.
Source: Pillar 3 disclosures on ESG risks under Article 449a CRR.
For further information, see: Environmental social governance—the investment market.
The Personal Investment Management & Financial Advice Association (PIMFA) is launching an environmental, social and governance (ESG) online training platform for financial advisers, to help them to advise their clients about ESG investing.
The CPD-accredited course is free to PIMFA members, and has been designed especially for financial advisers ‘to provide them with an immersive and engaging learning experience that supports them in making the most of the growing opportunities
arising for their clients from ESG investments’.
Source: PIMFA launches online ESG Academy to help advisers meet soaring investor demand.
The Securities and Markets Stakeholder Group (SMSG) issued advice to the European Supervisory Authorities (ESAs) on their joint consultation paper on draft regulatory technical standards (RTS) with regard to environmental, social and corporate
governance (ESG) disclosures pursuant to the Sustainable Finance Disclosure Regulation (EU) 2019/2088 (SFDR). The SMSG calls for more alignment between the the SFDR and other legislation, in particular the Non-Financial Reporting Directive
(NFRD) and the Taxonomy Regulation.
Source: SMSG advice to the ESA’s joint consultation paper on ESG disclosures (draft regulatory technical standards with regard to the content, methodologies and presentation pursuant to Article 2a, Article 4(6) and (7), Article 8(3), Article 9(5), Article 10(2) and Article 11(4) of Regulation EU 2019/2088.
The Central Banks and Supervisors’ Network for Greening the Financial System (NGFS) published two papers on environmental risk analysis (ERA) by financial institutions, which aim to promote greater collective efforts to tackle climate-related
and environmental risks by regulators, financial institutions, international organisations, third-party vendors, and academic institutions.
Source: NGFS promotes environmental risk analysis in financial industry.
The Association for Financial Markets in Europe (AFME) and global law firm Latham & Watkins have published an industry roadmap entitled: ‘Governance, conduct and compliance in the transition to sustainable finance’. It considers
how banks can embed environmental, social and governance (ESG) principles into their business models, addressing issues such as corporate purpose, board governance oversight, shareholder activism and greenwashing from a legal, compliance and
Source: First industry roadmap helps embed sustainable finance into banks’ strategy and governance.
21 September 2020
ESMA announced that trading
venues and investment firms may postpone, for operational reasons, the application of the annual transparency calculations (required by the MiFIR) for non-equity instruments other than bonds to 21 September 2020. This decision also applies
to the quarterly calculations for the purpose of the systematic internaliser (SI) regime for non-equity instruments other than bonds.
23 September 2020
Regulation of capital markets
Seven regulatory technical standards (RTS) under Regulation (EU) 2017/2402 (the Securitisation Regulation) will enter into force on 23 September 2020.
25 September 2020
Banks and Mutuals
Deadline for responses to the ECB’s guide for
consultation that explains how it expects banks to safely and prudently manage climate-related and environmental risks, and how firms should disclose such risks transparently under the current prudential framework.
Deadline for responses to the EBA’s discussion paper exploring
ways on how to enhance the Bank Recovery and Resolution Directive (BRRD) framework on early intervention measures.
Deadline for responses to the FCA’s discussion paper (DP20/2) on
a new prudential regime for UK investment firms.
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