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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 European Banking Authority (EBA) announced that it plans to phase out its guidelines on legislative and non-legislative payment moratoria, issued in the early phases of the coronavirus (COVID-19) pandemic, in accordance with its end of September
2020 deadline. The EBA said the guidelines have provided the necessary flexibility as well as certainty for the regulatory framework, and that the payment moratoria have been an effective tool to address short-term liquidity challenges caused
by the pandemic.
Source: EBA phases out its guidelines on legislative and non-legislative loan repayments moratoria.
The European Supervisory Authorities (the ESAs)—the EBA, the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA)—issued their first joint risk assessment report on the
financial sector since the outbreak of the coronavirus (COVID-19) pandemic. It highlights how the pandemic has led to further amplified profitability concerns across the board and heightened liquidity challenges in segments of the investment fund
sector. It particularly points to economic and market uncertainty as a key challenge going forward.
Source: EU financial regulators assess risks to the financial sector after the outbreak of COVID-19 and call for enhanced co-operation.
Decision (EU) 2020/1306 of the European Central Bank (ECB) of 16 September 2020 on the temporary exclusion of certain exposures to central banks from the total exposure measure in view of the coronavirus (COVID-19) pandemic (ECB/2020/44) has been
published in the Official Journal.
Source: Decision (EU) 2020/1306 of the European Central Bank of 16 September 2020 on the temporary exclusion of certain exposures to central banks from the total exposure measure in view of the COVID-19 pandemic (ECB/2020/44).
The Finance & Leasing Association (FLA) and the Association of Chartered Certified Accountants (ACCA) will co-host a roundtable event on 17 September 2020 to discuss with the Minister for Small Business, Paul Scully MP, the practical measures
that need to be included in the Comprehensive Spending Review to kickstart the economy. The FLA is urging the government to transfer the key features of the temporary Coronavirus Business Interruption Loan Scheme (CBILS)—such as the 80%
government guarantee—to the existing asset finance variant of the Enterprise Finance Guarantee Scheme, in order to improve its effectiveness in channelling finance to businesses for capital investment.
Source: FLA publishes Comprehensive Spending Review submission ahead of roundtable with the Small Business Minister to discuss measures needed for the recovery.
HM Treasury and the Bank of England (BoE) confirmed that the Covid Corporate Financing Facility (CCFF) will close for new purchases of commercial paper (CP) from eligible issuers with effect from 23 March 2021. In the Market Notice of 22 September
2020 published on the BoE’s website, HM Treasury and the BoE confirmed that the CCFF will make no purchases of CP after 22 March 2021 and will close to new applications from counterparties and issuers looking to become eligible on 31 December
Source: Update on the Covid Corporate Financing Facility (CCFF)—Market Notice 22 September 2020.
The Financial Stability Board (FSB) Regional Consultative Group (RCG) for the Middle East and North Africa held its 18th meeting (virtually) on 21 September 2020 to discuss recent global and regional macroeconomic and financial market developments.
Members exchanged views on the latest financial stability implications of the coronavirus (COVID-19), and received an update on the FSB’s deliverables to the Saudi Arabian G20 presidency, with an emphasis on the initiatives where the RCGs
have provided input.
Source: FSB Middle East and North Africa group discusses economic and financial market developments.
HM Treasury announced that 1.33 million businesses in the UK are currently being supported through coronavirus (COVID-19) lending schemes backed by the government. These schemes include the Coronavirus Business Interruption Loan Scheme, which has
supported 66,600 businesses with £15.5bn in financing packages, the Bounce Back Loan Scheme, which has supported more than 1.26 million small and micro businesses, and the Coronavirus Large Business Interruption Loan, which has backed 566
larger businesses using £3.8bn in funding.
Source: Over 1.3 million businesses supported through Covid-19 lending schemes.
The chair of the House of Commons Treasury Committee, Mel Stride, has written to the chancellor of the exchequer, Rishi Sunak, requesting that the government return to publishing weekly updates on some of the government’s coronavirus (COVID-19)
business loan schemes.
Source: Treasury Committee urges government to publish coronavirus business loans updates more frequently.
SI 2020/Draft: This draft enactment is laid in exercise of legislative powers under the European Communities Act 1972 (ECA 1972) and the European Union (Withdrawal) Act 2018 (EU(W)A 2018) in preparation for IP completion day. This
draft enactment is proposed to amend one piece of UK primary legislation and five pieces of UK secondary legislation in relation to consumer protection to address failures of retained EU law to operate effectively and other deficiencies arising
from the withdrawal of the UK from the EU. It comes into force partly on the day following when these Regulations are made, and fully on IP completion day.
The full draft legislation can be found here. The draft explanatory memorandum can be found here.
For further information, see: Brexit—Financial Services—Statutory Instruments (SI) tracker.
The BoE and the Prudential Regulation Authority (PRA) jointly published a consultation paper (CP13/20) on the UK withdrawal from the EU: Changes before the end of the transition period. The consultation paper includes an update on the BoE’s
and PRA’s intended use of the temporary transitional powers, as well as a consultation with proposals to fix deficiencies arising from Brexit and make consequential changes before the end of the implementation period. The consultation closes
on 17 November 2020.
Source: UK withdrawal from the EU: Changes before the end of the transition period.
For further information ,see: Brexit—impact on financial services.
The BoE and the PRA published a report on their exercise of sub-delegated powers under the European Union (Withdrawal) Act 2018 for the year ending 29 February 2020. It was presented to Parliament pursuant to paragraph 32(2)(a) of Schedule
7 to the Act.
Source: Exercise by the Bank of England and Prudential Regulation Authority of sub-delegated powers under the European Union (Withdrawal) Act 2018.
The Financial Conduct Authority (FCA) launched consultation paper CP20/20 on its approach to the authorisation and supervision of international firms operating in the UK. The FCA does not propose to change existing rules or provisions. The deadline
for consultation responses is 27 November 2020.
Source: FCA launches consultation on the regulation of international firms.
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The European Parliament’s Economic and Monetary Affairs Committee (ECON) published a draft report on the proposal for a directive amending the Markets in Financial Instruments Directive 2014/54/EU (MiFID II) in relation to information
requirements, product governance and position limits to help the recovery from the coronavirus (COVID-19) pandemic. ECON’s position at first reading, set out in the draft report, includes a number of amendments to the proposed directive, which
was adopted by the European Commission in July 2020 as part of its capital markets recovery package.
Source: Draft Report on the proposal for a directive of the European Parliament and of the Council amending Directive 2014/65/EU as regards information requirements, product governance and position limits to help the recovery from the COVID-19 pandemic (COM(2020)0280—C9-0210(2020) —2020/0152(COD)) Committee on Economic and Monetary Affairs.
ESMA appointed the chair and independent members of the central counterparty (CCP) supervisory committee, and reappointed the chairs of its data and investment management standing committees.
Sources: ESMA appoints chair and independent members of the CCP supervisory committee and
ESMA reappoints the chairs of its data and investment management standing committees.
EIOPA submitted to the European Parliament its opinion on the discharge decision for the financial year 2018. The document, adopted by the board of supervisors, provides an overview of the measures taken by EIOPA in the light of the observations and
comments made by the European Parliament in respect of the implementation of the budget for the financial year 2018.
Source: EIOPA submitted its opinion to the European Parliament on the discharge for the financial year 2018.
The BoE published a report setting out the findings of a review commissioned in December 2019 into misuse of the BoE’s press conferences audio feed, and associated recommendations. The governor of the BoE, Andrew Bailey, is now commissioning
an external review to determine whether any further steps are needed, and the BoE has called on the government to consider whether the market abuse regime should be extended to include spot foreign exchange.
Sources: Report on the misuse of the Bank of England’s press conferences audio feed,
The Bank of England’s response to the report on the misuse of the Bank of England’s press conferences audio feed and
Update on the FCA enquiry into the Bank of England audio issue.
The European Court of Auditors (ECA) announced that, on 24 September 2020, it will publish a review on how the EU took account of lessons learned from the 2008–2012 financial and sovereign debt crises. The ECA says ‘sound recovery’
from the coronavirus (COVID-19) pandemic will depend on learning lessons from the last crisis and being aware of the weaknesses observed.
Source: European Court of Auditors announcement 2009_18-02.
The FCA published a speech by its interim chief executive, Christopher Woolard, in which he discussed the impact of the coronavirus (COVID-19) pandemic, the response of the financial services sector, and how the FCA might adapt its regulatory models
to a changing landscape.
Source: FCA speech: Evolution of a new model for financial regulation in the UK.
The FCA published its regulation round-up for September 2020, which includes discussion of its finalised guidance on mortgages and draft guidance on consumer credit products and overdrafts in light of the coronavirus (COVID-19) pandemic, as well as
the launch of its call for input on the consumer investments market.
Source: Regulation round-up.
The Financial Services Regulatory Initiatives Forum issued the second edition of the Regulatory Initiatives Grid. The Forum is made up of the Bank of England (including the Prudential Regulation Authority), the Financial Conduct Authority, the Payment
Systems Regulator and the Competition and Markets Authority, with HM Treasury attending as an observer member.
Source: Financial regulators publish updated Regulatory Initiatives Grid.
The FCA issued a press release announcing that the first firms will be moved from Gabriel to RegData over the weekend of 17 and 18 October 2020. Those firms will then complete their regulatory reporting on RegData. Firms will continue to be moved to RegData
from Gabriel in the coming months as the FCA moves users across in stages, based on their reporting requirements.
Sources: First firms to begin move to new data collection platform, RegData and
The PRA published a report, ‘Proprietary Trading Review’, which reviews the extent of proprietary trading engaged in by PRA-authorised deposit takers and investment firms incorporated in the UK.
Source: Proprietary Trading Review.
The EBA published an opinion on elements of the definition of 'credit institution' under Article 4(1) the Capital Requirements Regulation (EU) 575/2013 (CRR) and on aspects of the scope of the authorisation of credit institutions. The
opinion is intended to raise awareness of the opportunity to clarify certain issues relating to the definition of credit institution in the upcoming review of the CRR and Capital Requirements Directive 2013/36/EU (CRD IV).
Source: EBA flags to the EU Commission elements of the definition of credit institution and aspects of the scope of authorisation.
For further information, see: CRD IV—essentials.
The ECB published its finalised guide outlining the methodology it uses to assess how euro area banks calculate their exposure to counterparty credit risk (CCR) and advanced credit valuation adjustment (CVA) risk, following a public consultation
which ended on 18 March 2020.
Source: ECB finalises guide to assessing how banks calculate counterparty credit risk.
For further information, see: Capital Requirements Regulation—counterparty credit risk, credit valuation adjustment and disclosures on quality of capital and
CRD IV Credit Valuation Adjustment.
The ECB published the European System of Central Banks (ESCB)’s input into a EBA feasibility report on reducing the reporting burden for the European banking industry. Under Article 430c of the CRR, the European Parliament and the Council
of the European Union mandated the EBA to carry out a feasibility study and requested that input from the ESCB be taken into account.
Sources: ECB proposes to reduce reporting burden for banks and increase data quality and
The ESCB input into the EBA feasibility report under article 430c of the Capital Requirements Regulation (CRR 2).
The ECB published a staff working paper discussing the banking euro area stress test (BEAST)—a large scale semi-structural model developed to assess the resilience of the euro area banking system from a macroprudential perspective.
Source: Banking euro area stress test model.
The General Court of the European Union (ECJ) has annulled the decision of the Single Resolution Board (SRB) on the calculation of the 2017 ex ante contributions to the Single Resolution Fund (SRF) and declared that Delegated Regulation (EU)
2015/63 is unlawful in part. The SRB has said it will ‘carefully consider’ the ECJ’s judgments in cases T-411/17 Landesbank Baden-Württemberg v Conseil de résolution unique (CRU), T-414/17 Hypo
Vorarlberg Bank AG v CRU and T-420/17 Portigon AG v CRU.
Source: The General Court annuls the decision of the Single Resolution Board on the calculation of the 2017 ex-ante contributions to the Single Resolution Fund and declares that Delegated Regulation 2015/63 is unlawful in part.
The Bank for International Settlements published the closing address by Mr Pablo Hernández de Cos, governor of the Bank of Spain and chair of the Basel Committee on Banking Supervision, to the seminar ‘The financial system in the COVID-19
crisis. Challenges and commitments’, in a summer course organised by the Spanish Financial Press Association Universidad Internacional Menéndez Pelayo, Madrid, 1 September 2020.
Source: Pablo Hernández de Cos: The impact of the COVID-19 crisis on financial stability.
The FCA published a speech by its director of wholesale supervision—supervision investment, wholesale & specialists division, Marc Teasdale, on the drivers of culture and the role of purpose and governance. Teasdale argued that a strong and
genuinely held purpose is critical to good consumer outcomes; good governance supports that purpose; and an embedded focus on diversity and inclusion—both at staff and customer level—is essential for both.
Source: A regulatory perspective: the drivers of culture and the role of purpose and governance.
The Chair of the Treasury Committee, Rt Hon Mel Stride MP, wrote to government Ministers, HMRC and the FCA to answer a series of questions regarding the recently released FinCEN papers. Stride said: 'Some of the information coming from the release
of the FinCEN papers is deeply troubling. The Treasury Committee wants to know whether Ministers, HMRC and the FCA are on top of this. With various roles to play in combatting economic crime, it’s vital that the appropriate parts of the
system are ready to act, if required.'
Source: Treasury Committee seeks answers from Ministers, HMRC and FCA on FinCEN papers.
The Financial Services Compensation Scheme (FSCS) issued a press release noting that, 12 years on, it has just received the final recovery payment from the 2008 banking crisis through the administration of Heritable Bank. The FSCS has therefore taken
the opportunity to explain the vital role the FSCS’s recoveries process plays.
Source: Full recovery: FSCS closes the book on the 2008 banking crisis.
An opinion of Advocate General Campos Sánchez-Bordona of the European Court of Justice, delivered on 17 September 2020 in respect of BT v Balgarska Narodna Banka (Case C-501/18), has been published in the Official Journal of the EU. The
opinion considers the concept of ‘deposit due and payable’ referred to in Article 1(3)(i) of the Deposit Guarantee Schemes Directive 94/19/EC (DGSD) and the validity of a recommendation of the EBA to the Bulgarian authorities
on action necessary to comply with the DGSD.
Source: Opinion of Advocate General Campos Sánchez-Bordona delivered on 17 September 2020.
The FCA issued a prohibition order in respect of Simon Oakley, a financial adviser who was convicted in 2017 of making misleading, false or deceptive statements in relation to two fraudulent investment schemes that resulted in more than £2.3m of
losses. In a final notice, the FCA said that his conviction demonstrates a ‘clear and serious lack of integrity’ such that he is not fit and proper to perform regulated activities.
Source: Final Notice: Simon Charles Oakley.
The list available on the UK government website of public cases currently being undertaken in the regulated sectors by UK Competition Network (UKCN) members under the Competition Act 1998 has been updated to include an investigation by the FCA
into suspected anti-competitive arrangements under Chapter I of the Act, which was opened in September 2020. No other details have been provided.
Source: Competition Act 1998 cases in the sectors regulated by UKCN members (updated).
The Council of the EU published an opinion of the ECB, dated 18 September 2020, on the proposed regulation amending the Benchmarks Regulation (EU) 2016/1011 (BMR) in relation to the exemption of certain third country foreign exchange
benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation (CON/2020/20). The ECB welcomes the main objective of the proposal but sets out some proposed drafting amendments in an accompanying technical working
Source: Opinion of the ECB on the Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2016/1011 as regards the exemption of certain third country foreign exchange benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation.
For further information, see: Benchmarks Regulation—essentials.
The ESMA published a speech by its chair, Steven Maijoor, on recent and expected developments in global interest rates reform and the crucial role that the co-operation between public authorities and the financial industry is playing in this process.
Source: Steven Maijoor delivers keynote speech at City Week 2020.
The BoE published details of a speech given by its executive director of markets, Andrew Hauser, in which he notes that LIBOR is not safe. Structural change in the financial markets mean that the trading that used to underpin LIBOR—term
unsecured lending between banks—has virtually disappeared. In its place lies little more than informed guesswork. And that is not a viable long-term basis for the debt and financial instruments on which all businesses rely. Sooner or
later, a benchmark based on such shaky foundations would, according to Hauser, collapse.
Source: From LIBOR to SONIA: a bridge to the future—remarks by Andrew Hauser.
For further information, see: LIBOR transition.
The FCA published a new webpage on how firms can prepare for LIBOR transition. The webpage covers general LIBOR transition issues, the need to consider all exposures and risks raised by LIBOR transition, including how it may affect pricing, valuation,
risk management and booking, systems and software, as well as the need to treat customer fairly and timely customer communications. It also covers LIBOR transition issues which are specific to asset management, benchmark administration, corporate
finance (and similar) advice, custody services provision, principal trading and wholesale brokerage.
Source: LIBOR transition: getting my firm ready.
The BoE published a ‘Bank Overground’ piece on why firms need to accelerate the transition from Libor benchmarks. The authors note that market volatility in response to the coronavirus (COVID-19) pandemic further highlighted Libor’s
weakness as an interest rate benchmark and made it clear that firms must move away from Libor before the end of 2021.
Source: Why do firms need to accelerate the transition from Libor benchmarks?.
The International Swaps and Derivatives Association (ISDA) published an article by its CEO Scott O'Malia on the fallbacks timetable for derivatives referencing key interbank offered rates (IBORs). It also published a letter ISDA sent to the Bank
of England and the Federal Reserve Bank of New York on the forthcoming launch of the IBOR Fallbacks Protocol and the IBOR Fallbacks Supplement to implement the new fallbacks for legacy and new derivative contracts, respectively.
Sources: Updating the fallbacks timetable and Timing of the ISDA IBOR Fallbacks Protocol.
The European Commission adopted a delegated regulation supplementing Regulation (EU) 2017/2402 (the Securitisation Regulation) with regard to fees charged by the ESMA to securitisation repositories. The regulation specifies the type of fees
to be charged by ESMA to securitisation repositories, the matters for which fees are due and the manner in which they are to be paid.
Source: COMMISSION DELEGATED REGULATION (EU) …/... of 18.9.2020 supplementing Regulation (EU) No 2017/2402 of the European Parliament and of the Council with regard to fees charged by the European Securities and Markets Authority to securitisation repositories.
For further information, see: Securitisation Regulation—essentials.
The ESMA announced that it has received its first application for registration as a securitisation repository under the Securitisation Regulation.
Source: ESMA receives securitisation repository registration application.
The FCA has published a new webpage for securitisation repositories under the Securitisation Regulation, announcing the ability to apply for registration in the UK following the onshoring of the Securitisation Regulation. An securitisation repositories
is a legal entity which centrally collects and maintains the records of securitisations, as set out by the Securitisation Regulation.
Source: FCA announces opening of registration applications for UK securitisation repositories.
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted a report on further development of the capital markets union (CMU), improving access to capital market finance, in particular by SMEs, and further enabling retail
investor participation. The report has been tabled for consideration by the Parliament in plenary on 5 October 2020.
Source: Report on further development of the capital markets union (CMU): improving access to capital market finance, in particular by SMEs, and further enabling retail investor participation.
For further information, see: The Capital Markets Union.
The ESMA renewed its decision to temporarily require the holders of net short positions in shares traded on an EU regulated market to notify the relevant national competent authority (NCA) if the position exceeds 0.1% of the issued share capital.
This temporary notification measure applies from 18 September 2020 for a period of three months. It applies to any natural or legal person, irrespective of their country of residence. However, it does not apply to shares admitted to trading on
a regulated market where the principal venue for the trading of the shares is located in a third country, market making or stabilisation activities.
Sources: ESMA renews its decision requiring net short position holders to report positions of 0.1% and above and
Decision of 16 September 2020 renewing the temporary requirement to natural or legal persons who have net short positions to lower the notification thresholds of net short positions in relation to the issued share capital of companies whose shares
are admitted to trading on a regulated market to notify the competent authorities above a certain threshold in accordance with point (a) of Article 28(1) of Regulation (EU) No 236/2012 of the European Parliament and of the Council.
For further information, see: The EU Short Selling regulation.
The FCA published a webpage setting out its approach to the assessment of cannabis-related companies interested in listing in the UK. This is pending a guidance consultation which the FCA says will follow in due course.
Source: Listings of cannabis-related businesses.
The board of the International Organization of Securities Commissions (IOSCO) published final guidance to help its members address potential conflicts of interest and associated conduct risks market intermediaries may face during the debt capital
raising process. The guidance also seeks to address some specific concerns observed by certain regulators during the coronavirus (COVID-19) crisis that may affect the integrity of the capital raising process.
Source: IOSCO issues measures to reduce conflict of interests in debt capital raising.
The Association for Financial Markets in Europe (AFME) is calling on policy makers to use independent data to support their review of equities markets structure with a view to promoting ‘competitive, diverse, well-regulated and innovative European
capital markets’ which are more efficient to attract further investment. AFME has launched a data-driven initiative to highlight the threat of inaccurate information and market data, and promote a fact-based approach to policymaking.
Source: AFME calls for data-led approach on market structure policymaking.
Three Commission delegated regulations relating to third-country central counterparties (CCPs) under the European Markets Infrastructure Regulation (Regulation (EU) No 648/2012) (EMIR) have been published in the Official Journal.
Commission Delegated Regulation (EU) 2020/1302 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
Commission Delegated Regulation (EU) 2020/1303 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
Commission Delegated Regulation (EU) 2020/1304 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
For further information, see: EMIR—essentials.
The European Commission adopted a time-limited decision that the regulatory framework applicable to central counterparties (CCPs) in the UK is equivalent to the EMIR, to give financial market participants 18 months to reduce their exposure to UK central
counterparties (CCPs). The decision, which has been published in the Official Journal of the EU, applies from 1 January 2021 until 30 June 2022 and is intended to ensure legal certainty for clearing members and trading venues until a full review
of equivalence has been carried out.
Sources: Financial stability: Commission adopts time-limited decision giving market participants the time needed to reduce exposure to UK central counterparties (CCPs),
Commission Implementing Decision (EU) 2020/1308 of 21 September 2020 determining, for a limited period of time, that the regulatory framework applicable to central counterparties in the United Kingdom of Great Britain and Northern Ireland is equivalent,
in accordance with Regulation (EU) No 648/2012 of the European Parliament and of the Council and Bank of England statement on the European Commission equivalence decision on the future UK legal and supervisory framework for central counterparties (CCPs).
The European Parliament published decisions to raise no objections to three Commission delegated regulations of 14 July 2020 supplementing EMIR (Regulation (EU) No 648/2012) with regard to third country central counterparties (CCPs), in particular
on assessment of systemic importance, comparable compliance and fees.
Sources: Non-objection to a delegated act: minimum elements for assessing third country CCP's comparable compliance and modalities,
Non-objection to a delegated act: criteria for determining third-country CCP's systemic importance and
Non-objection to a delegated act: fees charged by ESMA to third country CCPs.
The Council of the EU published a note from its general secretariat to the Permanent Representatives Committee regarding a political agreement on a proposal for a regulation on a framework for the recovery and resolution of central counterparties
Source: Proposal for a Regulation of the European Parliament and of the Council on a framework for the recovery and resolution of central counterparties and amending Regulations (EU) No 1095/2010, (EU) No 648/2012, and (EU) 2015/2365 and Directives 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU and (EU) 2017/1132—Political agreement.
ISDA published a guide to the steps required in preparation for initial margin, taking account of the new Basel Committee on Banking Supervision/IOSCO implementation schedule. Each September until 2022 increasing numbers of entities will be required
to meet initial margin regulations as the threshold level for compliance reduces. ISDA notes that preparation for meeting these requirements will take significant time, and will involve intensive work to ensure systems, processes and documentation
are in place.
Source: Getting ready for initial margin: The steps to take.
Banking Competition Remedies Ltd (BCR) announced the awards of the Capability and Innovation Fund (CIF) Pool E (Application Period Two), which was open to organisations that meet the same eligibility criteria as previous Pool A, B and C bodies.
Grants with a combined value of £80m were awarded.
Source: Banking Competition Remedies Ltd (BCR) announces the awards of Capability and Innovation Fund Pool E (Application Period Two).
The ECB announced that euro area banks under its direct supervision may exclude certain central bank exposures from the leverage ratio. The move is aimed at easing the implementation of monetary policy, and came after the Governing Council of
the ECB, as monetary authority of the euro area, confirmed that there are exceptional circumstances due to the coronavirus (COVID-19) pandemic.
Source: ECB allows temporary relief in banks’ leverage ratio after declaring exceptional circumstances due to pandemic.
The chair of the supervisory board of the ECB, Andrea Enria, responded to a letter dated 10 August 2020 from Markus Herbrand, a member of the Bundestag, regarding the supervision of Wirecard Bank AG.
Source: Letter from Andrea Enria, chair of the supervisory board, to Mr Herbrand, member of the German Bundestag, on banking supervision.
The FCA has published the final report of its market study into the pricing of home and motor insurance, and is proposing ‘significant reform’ of these markets through measures which seek to enhance competition, ensure consumers will
receive fair value, and increase trust in these markets. Feedback to consultation paper CP20/19, published alongside the report, is sought by 25 January 2021. Alongside the consultation, the FCA has published policy statement PS20/9, General
Insurance value measures reporting and publication, with rules on the publication of value measures data on claims frequencies and related data.
Source: FCA sets out proposals to tackle concerns about general insurance pricing.
The FCA published its Dear CEO letter, dated 18 September 2020, in relation to the High Court's decision in the FCA test case, relating to whether certain business interruption (BI) insurance policies respond to coronavirus (COVID-19) related
Sources: FCA—Dear CEO letter and Business interruption insurance.
For further information, see: Coronavirus (COVID-19)—business interruption insurance.
The executive director of the insurance supervision division at the BoE, Anna Sweeney, delivered a speech on 22 September 2020 at the Bank of America 25th European Financials CEO Conference, focusing on the role of the insurance sector and regulatory
framework in supporting the economy in a changed landscape due to coronavirus (COVID-19).
Sources: Ask not what the economy can do for insurers – ask what insurers can do for the economy - speech by Anna Sweeney and
Speech given by Anna Sweeney, Executive Director, Insurance Supervision Division.
Insurance Europe (IE) published its response to the European Commission's consultation on ethical and legal requirements for artificial intelligence (AI). IE welcomes the initiative and believes a European approach is necessary so a digital single
market is not fragmented. It will also ensure fair competition and protect businesses and individuals.
Sources: Insurers call on EC to adopt appropriate framework to promote uptake of AI and
Response to EC roadmap consultation on ethical and legal requirements for trustworthy AI.
The Community Access to Cash Pilot (CACP) initiative announced the plans for the nine Cash Pilot locations across the UK, where trials are being tested to help address challenges of improving cash access and acceptance. The pilots operate in a wider
context of a UK-wide cash infrastructure under threat, and aim to trial solutions which could have wider applicability across the UK.
Source: Innovation in Community Access to Cash Pilots unveiled.
The European Payments Council (EPC) decided to migrate all its Single European Payments Area (SEPA) payment schemes to the 2019 version of the ISO 20022 message standard by 19 November 2023, ie the entry-into-force date of the 2023 EPC SEPA payment
scheme rulebooks. The EPC says this implementation, combined with possibly new/amended business and/or functional rules in a single rulebook release, may present a challenge for some SEPA payment scheme participants. Therefore, all 2023 EPC SEPA
payment scheme rulebooks and related implementation guidelines will be published in May 2022 instead of November 2022.
Source: Some 2020 change requests entering into force in November 2023.
For further information, see: SEPA Regulation and cross-border payments—essentials.
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted a report with recommendations to the European Commission on emerging risks in crypto-assets and regulatory and supervisory challenges in the area of financial
services, institutions and markets. The report has been tabled for consideration by the Parliament in plenary on 5 October 2020.
Source: Report with recommendations to the Commission on Digital Finance: emerging risks in crypto-assets—regulatory and supervisory challenges in the area of financial services, institutions and markets.
The Law Commission announced that it has begun work on two new projects in order to ensure that English law can accommodate the two emerging technologies of smart contracts and digital assets. The projects will attempt to fill any gaps in law, as
well as ensure that the law ‘is capable of accommodating electronic documents, cryptoassets and other digital assets’. With regards to smart contracts, the Law Commission is ‘currently seeking initial views from business and
from the technology sector, with a view to publishing a call for evidence in late 2020’. Similarly, with digital assets, the Law Commission intends to publish a consultation paper on the subject during the first half of 2021.
Source: Adapting English law for the digital revolution.
The European Supervisory Authorities—namely the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority (the ESAs)—have published a survey seeking public
feedback on presentational aspects of product templates, pursuant to Articles 8(3), 9(5) and 11(4) of the Regulation on sustainability‐related disclosures in the financial services (SFDR). The survey is open for comments until 16 October 2020.
Sources: ESAs launch survey on environmental and/or social financial product templates and
EIOPA: ESAs launch survey on environmental and/or social financial product templates.
SI 2020/Draft: This draft enactment is laid in exercise of legislative powers under the European Communities Act 1972 (ECA 1972) and the European Union (Withdrawal) Act 2018 (EU(W)A 2018) in preparation for IP completion day. This
draft enactment is propo
Source: European Green Deal Call: €1 billion investment to boost the green and digital transition.
The ECB decided that bonds with coupon structures linked to certain sustainability performance targets will become eligible as collateral for Eurosystem credit operations and also for Eurosystem outright purchases for monetary policy purposes, provided
they comply with all other eligibility criteria. The decision applies from 1 January 2021.
Source: ECB to accept sustainability-linked bonds as collateral.
The BoE published a KnowledgeBank piece explaining the fundamental concepts of Islamic finance and noting that, as Islamic banks are unable to use BoE deposit accounts because interest is paid on them, the BoE is creating a new type of account for
such banks that doesn’t pay interest. This means Islamic banks in the UK will be able to use some of the same support the BoE gives to other banks.
Source: What is Islamic finance?.
The Islamic Financial Services Board (IFSB) and the International Centre for Education in Islamic Finance (INCEIF) will hold the 14th executive programme on Islamic finance, virtually, on 24 September 2020. The programme will explore measures to create
resilience for the Islamic finance industry during and after the coronavirus (COVID-19) crisis, with an emphasis on regulatory perspectives.
Source: The 14th IFSB-INCEIF executive programme to discuss measures to create resilience for the Islamic finance industry during and post-crisis: Regulator’s perspectives.
25 September 2020
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.
Investment funds and asset management
Deadline for responses to the FCA’s discussion paper (DP20/2) on
a new prudential regime for UK investment firms.
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 FCA’s consultation paper ‘CP20/14: Updating the Dual-regulated firms Remuneration Code to reflect CRD V’.
27 September 2020
Competition in financial services
Consumer credit, mortgage and home finance
The statutory deadline for funeral investigation hearings.
28 September 2020
Regulation of benchmarks and IBOR reform
Deadline for responses to the IASB’s proposals to update
the IFRS Taxonomy to reflect the disclosure requirements included in the amendments.
30 September 2020
Deadline for responses to the FCA’s consultation paper ‘CP20/16: Debt advice levy rates for 2020/21 – additional funding’.
Deadline for responses to the FCA’s ‘GC20/3: Guidance consultation and feedback statement for firms on the fair treatment of vulnerable customers’.
30 September 2020.
Deadline for the application of the EBA’s guidelines on the criteria to be fulfilled by legislative and non-legislative moratoria.
Deadline for responses to the PRA’s consultation on
the implementation of CRD V.
The FCA will re-open the notification window on 30 September 2020 to allow firms and
fund managers that have not yet notified the FCA that they wish to use the temporary permissions regime.
Deadline for responses to FSB’s consultation on report on evaluation of too-big-to-fail (TBTF) reforms for systemically important banks.
The FCA’s modification to COBS
13 Annex 2 1.9R is valid until 30 September 2020.
Deadline for responses to survey for the joint Bank of England and FCA review of liquidity mismatch in open-ended funds.
ESMA’s guidelines on
liquidity stress testing in UCITS and AIFs will become applicable on this date.
Regulation of insurance
Deadline for responses to the PRA’s consultation on
setting out its proposed approach to the publication of Solvency II technical information (TI) after the end of the Brexit transition period.
Payment services and systems
Deadline for responses to the Lending Standards Board’s consultation on its review
of the Contingent Reimbursement Model Code.
Fintech and cryptoassets
Deadline for responses to the EBA’s two RegTech industry surveys seeking
feedback from financial institutions and ICT third-party providers.
1 October 2020
Regulation of capital markets
Deadline for responses to FCA consultation paper ‘CP20/8: High-risk investments: Marketing speculative illiquid securities (including speculative mini-bonds) to retail investors’.
Deadline for responses to FCA consultation paper ‘CP20/5: Open-ended Investment Companies—Proposals for a more proportionate Listing regime’.
Risk management and controls
Deadline for feedback to IOSCO’s proposed updates to its principles for regulated entities
that outsource tasks to service providers is 1 October 2020.
UK, EU and international regulators and bodies
Nikhil Rathi becomes permanent chief executive of the FCA.
Deadline for responses to the FCA’s and BoE’s co-ordinated consultation papers (BoE/FCA)
on requirements to strengthen operational resilience in the financial services sector.
Responses to the qualitative section of the EBA’s questionnaire on its study of
cost of compliance with supervisory reporting are expected by this date.
Deadline for responses to FCA consultation paper ‘CP20/3: Proposals to enhance climate-related disclosures by listed issuers and clarification of existing disclosure obligations’.
Deadline for responses to the FCA’s call for input ‘Open Finance.
Deadline for responses to the ECB’s consultation on a guide that
aims to clarify its supervisory approach to consolidation projects involving euro area banks.
Deadline for responses to the EBA’s questionnaire looking for ways to optimise
supervisory reporting requirements and reduce reporting costs for institutions, especially smaller ones.
Markets and trading
Deadline for responses to FCA call for input on a review on
data in wholesale markets.
Deadline for responses to FCA consultation paper ‘CP20/1: Introducing a Single Easy Access Rate for cash savings’.
Part 1 of the annex to the Mortgages (Regulatory Reporting) Instrument 2019 (FCA 2019/88) comes
into force on this date.
Part 2 of Annex A and Part 2 of Annex C of Handbook Administration (No 53) Instrument 2020 comes
into force on this date.
The FCA’s Conduct of Business Sourcebook (Pension Transfers) (No 3) Instrument 2020 comes
into force on this date.
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