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The Financial Markets Law Committee (FMLC) wrote to HM Treasury urging the government to ‘resuscitate’ the Financial Services (Implementation of Legislation) Bill in order to ensure HMT holds the power—in the event of a no-deal Brexit—to implement and make changes to a category of legislation which the Bill describes as ‘in-flight’. These are pieces of EU financial services legislation that were adopted by the EU but do not yet apply so cannot be captured by the Withdrawal Act, or are currently in negotiation and may be adopted within two years after exit day.
SI 2019/1390: This enactment is made in exercise of legislative powers under the European Communities Act 1972, the Financial Services and Markets Act 2000 (FSMA 2000), and the European Union (Withdrawal) Act 2018 in preparation for Brexit. This enactment amends UK primary and subordinate legislation, and amends and revokes retained direct EU legislation in relation to financial services in order to ensure a coherent and functioning financial services regulatory regime once the UK leaves the EU. It comes into force partly at 11:59pm on 24 October 2019, partly on 25 October 2019, partly immediately before exit day, and fully on exit day. (Updated from draft on 25 October 2019).
SI 2019/1416: This enactment is made in exercise of legislative powers under the European Communities Act 1972 and the European Union (Withdrawal) Act 2018 in preparation for Brexit. This enactment amends UK primary and subordinate legislation and retained direct EU legislation in relation to over–the–counter (OTC) derivatives, central counterparties (CCPs) and trade repositories (TRs) in order to ensure that the related legislation continue to operate effectively at the point at which the UK leaves the EU. It comes into force partly on 30 October 2019 and fully on exit day. (Updated from draft on 30 October 2019).
On 28 October 2019, the EU27 Ambassadors reconvened to consider the UK’s request to extend the Article 50 withdrawal period until 31 January 2020. Following extended talks, European Council President Donald Tusk announced the EU27’s provisional approval for an extension until 31 January 2020. According to the announcement, the extension will be granted on flexible terms, so that the extended withdrawal period lasts only as long as necessary, and no longer than 31 January 2020. The terms are to be finalised using the written procedure while MPs turn their attention to an early general election. Kieran Laird, partner at Gowling WLG, looks at the implications.
The Financial Conduct Authority (FCA) published a statement entitled ‘UK’s exit from the EU delayed’. It notes that the EU and the UK agreed to extend the date for the UK’s departure from the EU and therefore firms do not need to act to implement Brexit contingency plans for 31 October 2019. The FCA is extending the date by which firms and funds should notify it for entry into the temporary permissions regime (TPR) to 30 January 2020. Fund managers will have until 15 January 2020 to inform the FCA if they want to make changes to their existing notification.
The FCA published policy statement PS19/26, Brexit—Regulatory technical standards for strong customer authentication and common and secure open standards of communication, which confirms that, in the event of a no-deal Brexit, the FCA will make regulatory technical standards for strong customer authentication substantially the same as those in Commission Delegated Regulation (EU) 2018/389.
The executive director of international at the FCA, Nausicaa Delfas, gave a speech at the UK Financial Services Industry Beyond Brexit Summit in London on the future of financial services regulation in the UK. Delfas said that the FCA will continue to work closely with its EU counterparts after Brexit and that it will continue its activity in support of the development of sound international standards, rooted in strong regulatory co-operation.
The European Securities and Markets Authority (ESMA) informed stakeholders that, following the European Council’s decision to extend the period under Article 50(3) relating to the UK’s withdrawal from the EU, its previous statements relating to its preparations for a no-deal Brexit on 31 October no longer apply.
The European Banking Federation (EBF), together with Herbert Smith Freehills, published a factsheet on the global trade rules that will apply to European banks in the event of a no-deal Brexit. In the case of such a scenario, all trade between the EU and UK will be governed by the international rules agreed at the level of the World Trade Organisation (WTO). The factsheet specifically addresses the WTO implications for banks.
The economic secretary to the Treasury, John Glen, laid before Parliament two further directions in preparation for the UK’s withdrawal from the EU. One amends an existing direction to refer to prospectuses being prepared under the Prospectus Regulation rather than the Directive. The other ensures certain EEA central banks can continue to carry on their activities in the UK without disruption at exit.
The economic secretary to the Treasury and City minister, John Glen, delivered a speech to financial sector leaders at the fifth UK Financial Services Beyond Brexit Summit. Glen said the government wanted to see a ‘deep and comprehensive relationship with the EU in financial services’ after Brexit, and was ‘absolutely committed to upholding open financial markets, underpinned by the highest standards of regulation and appropriate supervisory oversight’.
The Office of Financial Sanctions Implementation (OFSI) updated its guidance on post-Brexit sanctions to include a new document on the sanctions regime imposed on Russia, which will come into force in the event of a no-deal Brexit. The guidance sets out the financial and investment restrictions in the Russia (Sanctions) (EU Exit) Regulations 2019, SI 2019/855. The sanctions under SI 2019/855 will enter into force the day the UK exits the EU and will replace the current EU sanctions regime relating to Russia’s action in Ukraine.
Seventeen UK banks and alternative lenders (including Bank of Scotland, Barclays UK, Close Brothers, Funding Circle, HSBC, Lloyds Bank, NatWest, RBS and Santander UK) made concrete commitments to support small and medium-sized enterprises (SMEs) through and after Brexit under the SME Finance Charter.
The Chancellor of the Exchequer, Sajid Javid, wrote to the Treasury Select Committee confirming the budget will not take place on 6 November 2019. The letter, written 25 October 2019, acknowledges Parliament voted for a delay to the UK’s withdrawal from the European Union and that the government is calling for a general election.
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The FCA published a speech by its CEO, Andrew Bailey, in which he set out an overview of global financial markets and regulation, as well as looking at specific UK issues affecting the FCA, including the rise of fintech, the regulatory perimeter, and the balance between risk taking and consumer protection.
The Treasury Committee announced that Mel Stride MP was elected as its new chair, taking the position with immediate effect.
The Council of the EU published the outcome of the Economic and Financial Affairs meeting held in Luxembourg on 10 October 2019. The meeting debated a number of items and approved a number of other items.
The governor of the Bank of England (BoE), Mark Carney, co-signed a letter calling for CEOs from around the globe to accelerate disability inclusion. The letter was written with other leading members of the disability inclusion campaign Valuable 500, which aims to sign up 500 national and multinational firms by the end of 2019.
The FCA said analysis of the historic Approved Persons register and the new Senior Managers and Certification Regime (SM&CR) showed ‘little changed on gender diversity at more accountable grades in the past 15 years’.
The Prudential Regulation Authority (PRA) published consultation paper CP28/19, Credit unions: Review of the capital regime, in which the PRA sets out its proposed changes to the capital requirements that apply to credit unions. The consultation closes on 24 January 2020.
The Council of the EU published texts of the regulation on the prudential requirements of investment firms and the directive on the prudential supervision of investment firms, which were adopted by the European Parliament in April 2019. The General Secretariat of the Council advised that the Council should be in a position to approve the Parliament’s position at first reading.
The Financial Services Committee of the General Secretariat of the Council of the European Union examined a special report by the European Court of Auditors (ECA), entitled: ‘EU-wide stress tests for banks: unparalleled amount of information on banks provided but greater co-ordination and focus on risks needed’, published in July 2019. The Financial Services Committee, and later the Economic and Financial Committee, agreed the text of draft Council conclusions on the report. The Permanent Representatives Committee (COREPER) is invited to approve the draft Council conclusions and submit them to the Council for adoption (I/A Item Note 13371/19).
The European Banking Authority (EBA) published the second of three opinions on the implementation of the recast Deposit Guarantee Schemes Directive 2014/49/EU (DGSD) in the EU. The proposals aim to enhance depositor protection and financial stability, and improve operational effectiveness. The second opinion focuses on deposit guarantee scheme (DGS) pay-outs. The first opinion (on the eligibility of deposits, coverage level and co-operation between DGSs) was published on 8 August 2019. The remaining opinion (on DGS funding and the uses of DGS funds) is due to be published later in 2019.
The Single Resolution Board (SRB) published its work programme for 2020, setting out its priorities and core tasks for the year ahead. 2020 is the final year of the SRB’s 2018–2020 multiannual work programme and will mark the fifth anniversary of the SRB taking on its full powers within the Single Resolution Mechanism.
The current level of IT failures in the financial services sector is unacceptably high, the House of Commons Treasury Committee found. In a report published on IT failures in financial services, the committee called on regulators to act to improve the operational resilience of the sector and recommends that levies are increased so financial regulators can hire experienced staff.
The FCA updated its webpage Cryptoassets: our work, adding information on the FCA’s role as anti-money laundering and counter-terrorist financing (AML/CTF) supervisor for firms carrying out certain cryptoasset activity from 10 January 2020. The FCA also published a new webpage, Cryptoassets: AML/CTF regime, which provides information on the application of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (as amended) (the MLRs) to cryptoassets.
The Financial Action Task Force (FATF) published best practice guidance on beneficial ownership for legal persons. It aims to help countries ‘get rid of the cloak of secrecy’ concerning the ultimate owner of a company, foundation, association or any other legal person, and prevent the misuse of anonymous shell companies for crime and terrorism.
FATF issued its methodology for assessing compliance with the FATF recommendations and the effectiveness of systems designated anti-money laundering (AML) and countering the financing of terrorism (CFT). FATF sets out that assessment is focussed around two areas—effectiveness and technical compliance. The methodology will be employed by FATF, FATF-style regional bodies and other assessment bodies such as the International Monetary Fund and the World Bank.
The OFSI updated its guidance on post-Brexit sanctions to include a new document on the sanctions regime imposed on Russia, which will come into force in the event of a no-deal Brexit. The guidance sets out the financial and investment restrictions in the Russia (Sanctions) (EU Exit) Regulations 2019, SI 2019/855. The sanctions under SI 2019/855 will enter into force the day the UK exits the EU and will replace the current EU sanctions regime relating to Russia’s action in Ukraine.
ESMA’s Securities and Markets Stakeholder Group (SMSG) published an opinion (dated 3 October 2019) on ESMA’s report on ‘Performance and costs of retail investment products in the EU’, published in January 2019. The SMSG believes that the report is a very valuable tool for retail investors as well as for the industry. Moreover, clear and comprehensive information on performance and costs of products offered across the EU can be beneficial to regulators and policymakers too. The SMSG also appreciates the discussion in the report about methodological issues and data limitations.
The Council of the European Union published a Trio Presidency note on improving enforcement of the single market, ahead of the meeting of the High Level Working Group on Competitiveness and Growth on 7 November 2019. The paper emphasises the importance of effective and uniform enforcement of single market rules for the growth and competitiveness of the EU, and aims to encourage debate on how to ensure enforcement and monitoring of the rules so as to create a level playing field for EU businesses and citizens.
The FCA announced that CashEuroNet UK LLC, trading as QuickQuid, Pounds to Pocket and Onstride, was placed into administration on 25 October. CashEuroNet is a high cost short term lender, otherwise known as a payday lender, which lends small sums to customers until the next payday or for a few months.
Company – Shares. In proceedings brought pursuant to section 90A and Schedule 10A of the FSMA 2000 in circumstances where the claimants held shares as registered owners of members of the Certificateless Registry for Electronic Share Transfer (CREST) using custodians to acquire, hold or dispose of the shares, the Chancery Division, dismissing the defendant Tesco plc's application for the claims to be struck out, held that, rights of persons holding intermediated securities through CREST, notwithstanding that they were in a custody chain, comprised an interest in securities such as to confer standing to sue under FSMA 2000 for compensation in respect of any untrue or misleading statement or omission in the issuer's published information if they were able to show that they acquired, continued to hold or disposed of the securities in question in reliance upon that statement or omission, which the claimants in the present case were able to show. For further information, see: [2019] EWHC 2858 (Ch).
The Loan Market Association (LMA) published its exposure draft reference rate selection agreement (RRS agreement) for transition of legacy transactions from the London Inter-Bank Offered Rate (LIBOR) to alternative, risk-free rates. The RRS agreement is published as an exposure draft and does not constitute a recommended form of the LMA—it is intended to be read alongside the exposure drafts of the compounded risk-free rate facility agreements for sterling and US dollars, dated 23 September 2019. The exposure draft RSS agreement is available to LMA members, and the LMA is welcoming feedback on the draft.
The BoE’s working group on sterling risk-free reference rates (RFRs) is asking providers of Loans Management Systems and Treasury Management Systems to present on their readiness to incorporate compounded SONIA capability into their products. Presentations would be made primarily to the infrastructure sub-group, though the main working group itself would be interested to hear directly from those that are most advanced in their implementation.
The FMLC published a paper which highlights the challenges of providing a new benchmark into the EU post-Brexit, once the UK (for the purposes of EU law) becomes a third country. The paper also sets out legal uncertainties arising from the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (Benchmarks SI), including territorial scope.
The International Swaps and Derivates Association (ISDA) released its Interest Rate Benchmarks Review for the third quarter of 2019. ISDA in the review analyses trading volumes of interest rate derivatives transactions in the US, referencing the Secured Overnight Financing Rate and other selected alternative risk-free rates, including the Sterling Overnight Index Average, the Swiss Average Rate Overnight and the Tokyo Overnight Average Rate. ISDA also intends to add the Euro Short-Term Rate to the analysis once there is trading activity. Data in the review is provided by the Depository Trust & Clearing Corporation swap data repository. As a result, it only includes trades that are required to be disclosed by US regulations.
The chair of ESMA, Steven Maijoor, delivered a speech at a conference organised by the Comisión Nacional del Mercado de Valores Madrid on ESMA’s role under the Benchmarks Regulation, and more generally in the global reform of interest rates.
ESMA announced that it will publish the systematic internaliser (SI) regime data for equity, equity-like instruments and bonds, and the quarterly liquidity assessment for bonds on 8 November 2019. The requirements based on this publication will apply from 16 November 2019. This follows the latest developments around the departure of the UK from the EU.
The European Supervisory Authorities (ESAs) issued a joint supervisory statement in order to ensure a consistent application of the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation to bonds.
ESMA’s SMSG published its 2 October 2019 advice to ESMA on its consultation paper setting out draft guidelines on disclosure requirements under the Prospectus Regulation (ESMA31–62–1239, 12 July 2019). The SMSG welcomes the draft guidelines in general, but sets out a number of recommendations for improvement.
The European Court of Auditors launched an assessment of how successful the European Commission’s action was so far in building the capital markets union (CMU). Although the direct impact of the CMU project remains to be seen, the auditors intend to assess its effectiveness and the progress made so far, and provide recommendations for a ‘future reboot’ if necessary.
The Regulatory Oversight Committee (ROC) for the legal entity identifier (LEI) launched a consultation on LEI eligibility for general government entities. The consultation closes on 6 December 2019.
The Regulation amending Regulation (EU) 648/2012 (EMIR) as regards the procedures and authorities involved for the authorisation of CCPs and requirements for the recognition of third-country CCPs (EMIR 2.2) was signed on 23 October 2019. This completes the legislative procedure for EMIR 2.2, which is expected to be published in the Official Journal of the EU (OJ) on 12 December 2019 and will enter into force 20 days later.
SI 2019/1416: This enactment is made in exercise of legislative powers under the European Communities Act 1972 and the European Union (Withdrawal) Act 2018 in preparation for Brexit. This enactment amends UK primary and subordinate legislation and retained direct EU legislation in relation to OTC) derivatives, CCPs and TRs in order to ensure that the related legislation continue to operate effectively at the point at which the UK leaves the EU. It comes into force partly on 30 October 2019 and fully on exit day. (Updated from draft on 30 October 2019).
ISDA released its Interest Rate Benchmarks Review for the third quarter of 2019. ISDA in the review analyses trading volumes of interest rate derivatives transactions in the US, referencing the Secured Overnight Financing Rate and other selected alternative risk-free rates, including the Sterling Overnight Index Average, the Swiss Average Rate Overnight and the Tokyo Overnight Average Rate. ISDA also intends to add the Euro Short-Term Rate to the analysis once there is trading activity. Data in the review is provided by the Depository Trust & Clearing Corporation swap data repository. As a result, it only includes trades that are required to be disclosed by US regulations.
The Financial Reporting Council (FRC) published a revised version of the Stewardship Code (the Code) which will apply to reporting years beginning on or after 1 January 2020. At the same time the FCA published feedback statement FS19/7—Building a regulatory framework for effective stewardship. The revised Code and feedback statement are relevant to FCA-regulated asset management firms and life insurers and other asset owners and investors. They will also affect public companies, issuers of debt and their advisors, and current and future signatories to the Code. Nick Dawson, managing director at Proxy Insight, stated that the original Code ‘was perfect for its time’, but the new Code enables more insight for observers into the true behaviours of each investor. Simon Daniel, partner at Eversheds Sutherland, added that ‘now is clearly an ideal time’ for the revision and strengthening of the Code due to a transformation of the attitudes, practices and regulatory expectations in the investment markets since the Code was last revised in 2012.
As part of a global initiative led by the International Investment Funds Association (IIFA) and supported by investment fund associations from around the world, the European Fund and Asset Management Association (EFAMA) published a document entitled ‘IIFA Cybersecurity Program Basics', which lays out the key cyber-prevention standards for investment management companies.
The PRA published consultation paper CP28/19, Credit unions: Review of the capital regime, in which the PRA sets out its proposed changes to the capital requirements that apply to credit unions. The consultation closes on 24 January 2020.
The EBF, together with Herbert Smith Freehills, published a factsheet on the global trade rules that will apply to European banks in the event of a no-deal Brexit. In the case of such a scenario, all trade between the EU and UK will be governed by the international rules agreed at the level of the World Trade Organisation (WTO). The factsheet specifically addresses the WTO implications for banks.
The EBA published a report on potential impediments to the cross-border provision of banking and payment services. It sets out recommended actions for the European Commission to remove barriers to entry and facilitate the scaling up of banking and payments activities across the EU. A set of FAQs on the report is published alongside, explaining the context and next steps.
The EBA published the second of three opinions on the implementation of the recast DGSD) in the EU. The proposals aim to enhance depositor protection and financial stability, and improve operational effectiveness. The second opinion focuses on DGS pay-outs. The first opinion (on the eligibility of deposits, coverage level and co-operation between DGSs) was published on 8 August 2019. The remaining opinion (on DGS funding and the uses of DGS funds) is due to be published later in 2019.
Barclays Bank reversed its decision to withdraw its access to cash agreement with local post offices. The Business, Energy and Industrial Strategy (BEIS) Committee report on the Future of the Post Office Network described the original decision from Barclays as a ‘highly retrograde step’ which would hurt vulnerable customers, undermine the Post Office network, and hit poorly remunerated sub-postmasters.
Bank – Banker/client relationship. The Court of Appeal was correct in dismissing the appellant bank and brokerage firm's appeal on the ground that, among other things, the judge correctly concluded that it would be wrong to attribute the director of the respondent company's conduct and fraudulent knowledge to the company, so as to bar the company's claim under Barclays Bank plc v Quincecare Ltd (breach of duty owed by a bank to its customer) (Quincecare) on grounds of illegality. The Supreme Court held that the purpose of the Quincecare duty was to protect the company against just the sort of misappropriation of its funds as took place in the present case, and the appellant should have realised that something suspicious was going on and suspended payment until it made reasonable enquiries to satisfy itself that the payments were properly to be made, but that the company, and through the company its creditors, was a victim of the appellant's negligence. For further information, see: [2019] All ER (D) 182 (Oct).
The FCA published policy statement PS19/27: Changes to mortgage responsible lending rules and guidance—feedback on CP19/14 and final rules, in which the FCA confirmed that it removed barriers that stop some mortgage customers from finding a cheaper mortgage deal. Changes were made to the FCA’s responsible lending rules, which allow lenders to use a different and more proportionate affordability assessment for consumers who are up to date with their existing mortgage and want to switch to a more affordable mortgage without borrowing more (except to finance certain fees). The amended rules also aim to reduce the time and costs of switching for all consumers meeting this definition.
House of Lords first reading 29 October 2019.
Insurance Europe (IE) issued a press release announcing that the UN Environment Programme Finance Initiative (UNEP FI), a global partnership between UN Environment and the financial sector, will hold its second Regional Roundtable for Europe in Luxembourg on 28–29 November 2019. IE is taking part as an event partner.
The European Insurance and Occupational Pensions Authority (EIOPA) updated its Risk Dashboard, based on Solvency II data for the second quarter 2019. EIOPA says the results show that the risk exposures of the European insurance sector remained stable overall compared to July. Macro and market risks continue at a high level.
IE published a joint response with the CRO—CFO Forum to a consultation by EIOPA on its discussion paper on methodological principles of insurance stress testing. The response calls on EIOPA to ensure that the objectives of future stress testing exercises are clearly defined and articulated. It says stress testing ‘must not be used as a parallel to Solvency II and should not be designed or used in a manner which leads to an amplification of capital requirements’.
IE published a joint response with the CRO Forum and CFO Forum (together, the industry) to a consultation by EIOPA on its proposals for the Solvency II 2020 review package on supervisory reporting and public disclosure, which were developed in response to a call for advice by the European Commission.
House of Lords second reading due 30 October 2019.
The Personal Investment Management & Financial Advice Association (PIMFA), the trade association for the personal investment and financial advice industry, responded to the FCA’s pension transfer advice on contingent charging, asking for the regulator to ‘raise the bar’, in their pursuit to ban contingent charging. PIMFA highlighted that the proposal would represent a significant intervention in the financial advice market, and as a result would expect the evidential bar to be set significantly higher, in order to justify the change.
The European Payments Council (EPC) revised its ‘Recirculation paper’, which aims to foster the best and most efficient ways to handle cash in the first levels of the cash circulation cycle, ie consumers, retailers and payment service providers, before currency reaches the level of cash centres and, ultimately, national central banks. The paper says a better understanding of how cash handling is evolving will enable stakeholders in the cash value chain to anticipate market shifts and plan for the retaining and reallocation of workforces accordingly.
The European Central Bank (ECB) adopted an amendment to its guidelines on the trans-European automated real-time gross settlement express transfer system (TARGET2). The amendment reflects the new single shared platform functionality which enables the processing of very critical and critical payments in a contingency.
Barclays Bank reversed its decision to withdraw its access to cash agreement with local post offices. The BEIS Committee report on the Future of the Post Office Network described the original decision from Barclays as a ‘highly retrograde step’ which would hurt vulnerable customers, undermine the Post Office network, and hit poorly remunerated sub-postmasters.
The FCA updated its webpage Cryptoassets: our work, adding information on the FCA’s role as AML/CTF supervisor for firms carrying out certain cryptoasset activity from 10 January 2020. The FCA also published a new webpage, Cryptoassets: AML/CTF regime, which provides information on the application of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (as amended) (the MLRs) to cryptoassets.
The FMLC published a paper which explores the ways in which regulators and legislators attempted to grapple with the many varieties of virtual currencies, and those which arguably come to function as money for legal purposes.
The BoE published a speech by its deputy governor for markets & banking, Dave Ramsden, entitled ‘Openness and integration—the new finance and new economy in a global context’, which sets out the BoE’s approach to fintech. Speaking at the Bund Summit in Shanghai, Ramsden said the BoE’s role was to provide robust but dynamic regulation that is appropriate for emerging innovations, and to weigh potential benefits to efficiency and resilience against potential risks to financial stability. He discussed machine learning, plans to help SMEs harness the power of their data, and the importance of global regulators working together on financial technology issues.
The Lord Mayor of the City of London, Peter Estlin, announced £10m of UK aid support for Kenyan fintech companies to increase financial inclusion for low-income and underserved consumers. Estlin was in Nairobi ahead of the first UK-Africa Investment Summit, in 2020, which will bring together businesses, governments and international institutions to encourage investment in a range of sectors, including fintech.
The Council of the EU published the text of the draft regulation amending Regulation (EU) 2016/1011 (Benchmarks Regulation) as regards EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks, which were adopted by the European Parliament on 26 March 2019. After finalisation of the adopted text by the legal linguists, the Parliament approved a corrigendum to that position at its plenary session from 9 to 10 October 2019. It reflects the compromise agreement reached between the Institutions and should, therefore, be acceptable to the Council.
IE issued a press release announcing that the UNEP FI, a global partnership between UN Environment and the financial sector, will hold its second Regional Roundtable for Europe in Luxembourg on 28–29 November 2019. IE is taking part as an event partner.
In a letter dated 29 October 2019, the chair of the Treasury Committee, Mel Stride MP, asked the chancellor of the exchequer, Sajid Javid MP, to clarify the government’s plans in a number of areas, including the impact of the government’s Green Finance Strategy on the UK regulators’ remit. Following the announcement that the government no longer intends to bring forward the budget on 6 November, in anticipation of a general election, Stride requested that HM Treasury clarify the timeline for formalising the change in the regulators’ remit to take account of the COP21 Paris Agreement (in which 195 countries agreed to keep global temperatures well below 2 degrees Celsius).
31 October 2019
Prudential requirements
The EBA’s consultation on draft guidelines for determining weighted average maturity of contractual payments due under the tranche of a securitisation transaction under CRR closes on 31 October 2019.
The deadline for feedback on the PSR’s consultation CP19/7 on its updated Powers and Procedures Guidance is 31 October 2019.
The deadline for feedback to ESMA’s consultation setting out draft guidelines on performance fees under the UCITS Directive closes on 31 October 2019. The draft guidelines aim to harmonise the way in which performance fees can be charged to UCITS and their investors while ensuring common standards of disclosure across the EU.
Christine Lagarde is to succeed Mario Draghi as ECB President for a non-renewable eight-year term.
The deadline for submissions to the PRA’s 2019 Insurance stress test for section C scenarios is 31 October 2019.
The FSB will begin the process of identifying global systemically important banks in November 2019.
The FSB expects to publish its final report on its evaluation of the effects of post-crisis financial regulatory reforms on the financing of small and medium-sized enterprises in November 2019.
Pay.UK aims to publish its decision on a change request from UK Finance by the end of November 2019.
IAIS scheduled to adopt new ComFrame and ICS version 2.00, and to publish these materials.
The Department for International Trade and HM Treasury two Fintech Bridge pilot programs, with Hong Kong and Australia, will run until November 2019.
Investment funds and asset management
Regulation of capital markets
Regulation of derivatives
Consumer credit, mortgage and home finance
The deadline for feedback to the FCA quarterly consultation paper no 24: CP19/27 for chapters 3–6 and 8 is 1 November 2019.
The Lending Standards Board (LSB) threshold under its Standards of Lending Practice for business customers will increase to protect businesses with a turnover over of up to £25m. The increase in threshold will come into effect on 1 November 2019 when the current set of standards will become obsolete.
CMCs are encouraged to submit Form A by 1 November 2019.
Changes to the FCA’s rules on wake-up packs, retirement risk warnings and reminder changes as set out in the Conduct of Business Sourcebook (Retirement Outcomes Review) Instrument 2019 appended to PS19/1 come into force.
The deadline for ESMA’s call for evidence on the effects of product intervention measures under MiFIR is 4 November 2019.
The Treasury Committee asked the FCA to respond to its letter on pension scheme trustees’ ESG stewardship policy request by 5 November 2019.
The deadline for feedback to the Law Commission’s call for evidence asking individual investors, institutions and experts for their views on how well the system of intermediated securities works and where improvement is needed is 5 November 2019.
The meeting of the High Level Working Group on Competitiveness and Growth is to take place on 7 November 2019.
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