FS weekly highlights—7 November 2019

FS weekly highlights—7 November 2019

In this issue

 

 

Brexit news
UK, EU and international regulators and bodies
Authorisation, approval and supervision
Prudential requirements
Financial crime
Enforcement and redress
Markets and trading
MiFID II
Regulation of capital markets and Capital Markets Union
Regulation of derivatives
Investment funds and asset management
Banks and mutuals
Consumer credit, mortgage and home finance
Regulation of insurance
Regulation of personal pension and stakeholder products
Payment services and systems
Fintech and cryptoassets
Sustainable finance
Islamic finance
Dates for your diary

 

Brexit news

 

European Union (Withdrawal) Act 2018 (Exit Day) (Amendment) (No 3) Regulations 2019

SI 2019/1423: This enactment is made in exercise of legislative powers under the European Union (Withdrawal) Act 2018 (EU(W)A 2018) in preparation for Brexit. This enactment amends the definition of ‘exit day’ in EU(W)A 2018, s 20(1) from 31 October 2019 to 31 January 2020, and consequently amends EU(W)A 2018, s 20(2). Various provisions of EU(W)A 2018, including the repeal of the European Communities Act 1972, and a wide range of primary and secondary legislation, take effect or come into force on exit day. It comes into force immediately after 2:06pm on 30 October 2019.

FCA publishes handbook amendment on DISP rules after Brexit

The Financial Conduct Authority (FCA) published an amendment to the DISP rules to reflect the changes the Financial Ombudsman Service (FOS) made to its voluntary jurisdiction to incorporate Brexit.

FCA updates CRA webpage to reflect delayed Brexit day

The FCA amended its credit rating agencies (CRAs) webpage to reflect the postponement of EU exit day to 31 January 2020. The deadline for notification to convert an ESMA registration or certification is changed to midnight on 2 January 2020 and the deadline for advance application for registration as a CRA is changed to 11 pm on 31 January 2020.

FMLC updates its Brexit analysis on third country regimes in EU legislation

The Financial Markets Law Committee (FMLC) published an addendum to its 2017 report entitled ‘Issues of legal uncertainty arising in the context of the withdrawal of the UK from the EU—the provision and application of third country regimes in EU legislation’ (the 2017 report). The addendum sets out key updates to the 2017 report. The FMLC concludes that the uncertainties highlighted in the 2017 report continue to paint a daunting picture for UK market participants who have been, and would like to continue, providing services into the EU. The risk of a ‘cliff edge’ continues to present a substantial danger of market disruption and of litigation in relation to legacy business.

John Glen letter on equivalence in financial services

John Glen MP, Economic Secretary to the Treasury, wrote to the European Scrutiny Committee to clarify the government’s plans for seeking equivalence from the EU in the area of financial services.

EIOPA publishes responses from national authorities on its Brexit recommendations

The European Insurance and Occupational Pensions Authority (EIOPA) published responses from national competent authorities on their compliance, intention to comply or non-compliance with EIOPA’s ‘Recommendations for the insurance sector in light of the [UK] withdrawing from the [EU]’.

 

 

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UK, EU and international regulators and bodies

 

FCA publishes Handbook Notice No. 70

The FCA published Handbook Notice No. 70, which includes changes to the FCA Handbook made by the FCA board on 26 September 2019 and 24 October 2019. Feedback on the relevant consultation papers (CPs) is set out in Chapter 3 of the Notice or in separate policy statements (PSs). 

FCA November 2019 policy development update

The FCA published its policy development update for November 2019, providing information on the FCA’s recent and upcoming publications. 

New non-executive directors appointed to FCA board

The economic secretary to the Treasury, John Glen, made three new appointments to the board of the FCA. Liam Coleman, Alice Maynard CBE and Tommaso Valletti will take up roles as non-executive directors. Maynard was jointly appointed by the Treasury and the Department for Business, Energy and Industrial Strategy. They will each serve three-year terms from 5 November 2019. 

Council of the EU provides update on progress of financial services legislative files

The Council of the EU published a document giving the state of play of current legislative proposals in the field of financial services as at 31 October 2019. 

ESA chairs brief ECON on current priorities

The chairs of the European Supervisory Authorities (ESAs), comprising the European Banking Authority (EBA), the  EIOPA and the  European Securities and Markets Authority (ESMA), made introductory statement at the hearing of the Committee on Economic and Monetary Affairs of the European Parliament (ECON).

ESMA publishes conclusions of its October 2019 management board meeting

ESMA published a summary of its management board meeting of 1 October 2019, including the board’s conclusions on ESMA’s strategic direction in relation to investor protection, sustainable finance and ESMA’s in role promoting competitive EU financial markets. 

Sajid Javid issues recommendations for the FCA, Financial Policy Committee and Prudential Regulation Committee

The chancellor of the exchequer, Sajid Javid, wrote to the chief executive of the FCA and to the governor of the Bank of England (BoE) setting out HM Treasury’s recommendations for the FCA, the BoE’s Financial Policy Committee (FPC) and the BoE’s Prudential Regulation Committee (PRC) for the 2017-2019 Parliament.

 

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Authorisation, approval and supervision

 

BSB publishes full suite of SM&CR good practice guidance

The Banking Standards Board (BSB) published four good practice guidance documents intended to help firms reference their own policies and procedures against a statement of what ‘good’ looks like in relation to the FCA’s Senior Managers and Certification Regime (SM&CR). According to the BSB, this guidance facilitates the practical application of the rules in a way that respects both the purpose and spirit of the FCA’s requirements.

 

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Prudential requirements

 

HMRC guidance on tax treatment of hybrid regulatory capital

HMRC issued two notes explaining HM Treasury regulations coming into force on 29 November 2019, which ensure that interest payments made on certain hybrid instruments issued by banks and insurers as regulatory capital under new BoE requirements continue to receive a tax deduction. These regulations have effect for payments made on or after 1 January 2019 and will be replaced from 1 January 2020 by new regulations to comply with more stringent rules under the EU anti-tax avoidance directive. The notes published were:

Basel Committee discusses upcoming consultations and BIS publishes Basel III report

The Basel Committee on Banking Supervision (BCBS) discussed a range of policy and supervisory issues at a meeting in Madrid on 30–31 October 2019. The Bank for International Settlements (BIS) also published a report on the implementation of Basel III and transitional arrangements. 

BCBS newsletter on capital buffer framework

The BCBS published a newsletter on the capital buffer framework. The newsletter reiterates the importance of the framework and emphasises that buffers are designed to be usable.

PRA Dear CEO letter on importance of regulatory returns

The Prudential Regulation Authority (PRA) published a letter to chief executive officers of PRA-regulated banks and building societies on the importance of regulatory returns. The letter informs firms that the PRA intends to commission reports from skilled persons on the regulatory returns of some larger firms.

 

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Financial crime

 

FATF consults on digital identity systems for customer due diligence

The Financial Action Task Force (FATF) is developing guidance to clarify how digital identity systems can be used for customer due diligence (CDD), and consulting on a draft. The guidance intends to help governments, financial institutions and other relevant entities apply a risk-based approach to the use of digital ID for CDD. Feedback is sought by 29 November 2019. 

Treasury Committee publishes report on economic crime and consumers

The Treasury Committee published a report, ‘Economic Crime—Consumer View’, which focuses on authorised push payments (APP) where the genuine customer processes a payment to another account which is controlled by a criminal, and unauthorised fraud, where the account holder does not provide authorisation for the payment to proceed and the transaction is carried out by a third party. 

Over 478,000 suspicious activity reports processed in 2018–19

The National Crime Agency published its annual UK financial intelligence unit (UKFIU) report into suspicious activity reports (SARs). The UKFIU reports that it received and processed 478,437 SARs between April 2018 and March 2019, including 34,543 requests for a defence against money laundering (representing a 52.72% increase) with refusals of a defence numbering a small 1372. These refused requests related to a total of £131,667,477 in funds which were restrained, seized, forfeited or recovered as a result (more than double on the previous year). 459 cases involved no previous or existing law enforcement investigation. 

 

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Enforcement and redress

 

FOS publishes feedback on its funding consultation

The FOS published a summary and feedback statement following the consultation on its future funding. The FOS says it is reassured by respondents’ general agreement with its assessment of the challenges it is facing, as well as their recognition of the wider value of the service. There was ‘widespread support’ for the established funding principles, and most respondents acknowledged the need for change in the way the FOS is funded. 

Treasury Committee closes financial services-related inquiries due to general election

The House of Commons Treasury Committee announced that it has closed all of its inquiries in light of the forthcoming December 2019 general election. The following webpages were updated:

Sajid Javid agrees to review BBRS eligibility criteria

Following concerns raised by the all-party Parliamentary group (APPG) on fair business banking, the chancellor of the exchequer, Sajid Javid, agreed to review the eligibility criteria for firms to access the Business Banking Resolution Service (BBRS). APPG chair Kevin Hollinrake told Javid it would be ‘a fundamental error’ to exclude many complainants that went through past bank-led redress schemes, and it would risk undermining the principal premise of the BBRS: to start to rebuild trust between small-to-medium businesses (SMEs) and the banks. 

Complaints Commissioner recommends FCA review FS Register procedures

In a final report by the Complaints Commissioner dated 2 October 2019 (Complaint number FCA00609), the Commissioner recommended that the FCA review its procedures around updating the Financial Services Register. The Commissioner concluded the FCA should update the FS Register as a matter of urgency when it is provided with information that a firm should no longer be authorised to carry out regulated activities, in order to ensure that its objective of consumer protection is met. The FCA accepted this recommendation.

Complaints Commissioner criticises FCA’s handling of conflict of interest complaint

The Office of the Complaints Commissioner (OCC) published a final report, FCA00619, in which it criticises the FCA’s treatment of a complaint concerning the appointment of a firm to act as a ‘skilled person’ where there were conflicts of interest. The OCC found that the FCA did not follow and record a proper process to address the potential conflicts of interest in this case. 

Launch of Banking Business Resolution Service live pilot

The Banking Business Resolution Service, the non-profit organisation set up to resolve disputes between eligible SMEs and participating banks, launched its live pilot in preparation for its full launch in early 2020. 

FCA calls for customers of illegal loan scheme to get in touch

The FCA is urging customers who took out a loan with Mr Dharam Prakash Gopee to contact the FCA as they may be eligible for compensation. Gopee was convicted of illegal money lending offences in February 2018 and sentenced to three and a half years in prison. The FCA began confiscation proceedings against him in order to recover the financial benefit he obtained from his criminality. Money recovered under the confiscation order can then be used to compensate victims.

 

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Markets and trading

 

ESMA publishes further technical detail for SFTR reporting

ESMA published further technical details for the reporting of securities financing transactions (SFTs) as required under the SFT Regulation (SFTR). 

Working group on euro risk-free rates makes EURIBOR fallback recommendations

The private sector working group on euro risk-free rates published a set of recommendations for fallback provisions in contracts for cash products and derivative transactions referencing EURIBOR. The recommendations support compliance with the EU Benchmarks Regulation (EU) 2016/1011 (BMR), and aim to enhance legal and commercial certainty.

 

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MiFID II

 

EEA Joint Committee decisions on MiFID II and MiFIR published in OJ

Two decisions of the EEA Joint Committee incorporating MiFID II, MiFIR, and related Commission Delegated Regulations and Commission Implementing Regulations into the EEA Agreement were published in the Official Journal of the EU (OJ). The decisions published were:

SMSG publishes advice to ESMA on draft guidelines relating to MiFID II compliance function

ESMA’s Securities and Markets Stakeholder Group (SMSG) published its 31 October 2019 advice to ESMA on ESMA’s consultation paper on draft guidelines on certain aspects of the MiFID II compliance function (ESMA 22106-2002). The SMSG welcomes the draft guidelines in general but sets out a number of recommendations for improvement.

ESMA consults on commodity derivatives position limits

ESMA launched a consultation paper on position limits and position management in commodity derivatives, in the context of the review ESMA and the European Commission are required to carry out under Directive 2014/65/EU (MiFID II) into the impact of position limits and position management on liquidity, market abuse, and orderly pricing and settlement conditions in the commodity derivatives markets. The consultation closes on 8 January 2020.

 

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Regulation of capital markets and Capital Markets Union

 

FCA to hold seminar on MAR and the public disclosure regime for SME issuers

The FCA is to hold a day-long seminar on navigating the public disclosure regime for SME issuers, particularly with regard to the application of the Market Abuse Regulation (MAR). The event will introduce delegates to the work of the FCA’s Primary Market Oversight department. The day will include a panel Q&A session with relevant FCA staff, with the opportunity to pre-submit specific disclosure questions for the panel during the registration process.

EU Securitisation Regulation: FMLC asks Commission to clarify third country due diligence ambiguity

The FMLC wrote to the European Commission in connection with the interpretation of Article 5(1)(e) of the EU Securitisation Regulation (EU) 2017/24. The letter sets out the FMLC’s preferred interpretation and calls on the Commission to issue guidance on the approach to the due diligence assessments of transactions involving third country entities, so as to promote legal certainty in this area.

ESMA report shows continuing decrease in prospectus approvals

ESMA said in 2018 the number of prospectus approvals across the European Economic Area (EEA) decreased by almost 5% compared to 2017 (from 3,567 to 3,390). This decrease in prospectus approvals follows a decade-long trend observed since the start of the financial crisis.

AFME paper examines barriers to public cloud adoption in financial services

The Association for Financial Markets in Europe (AFME) published a paper setting out 14 recommendations to ‘help realise the full potential of public cloud computing across the capital markets industry’. It aims to help banks, cloud providers, regulators and the industry as a whole increase the transparency and collaboration required to build further confidence, trust and capability in public cloud computing.

 

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Regulation of derivatives

 

ESMA consults on commodity derivatives position limits

ESMA launched a consultation paper on position limits and position management in commodity derivatives, in the context of the review ESMA and the European Commission are required to carry out under Directive 2014/65/EU (MiFID II) into the impact of position limits and position management on liquidity, market abuse, and orderly pricing and settlement conditions in the commodity derivatives markets. The consultation closes on 8 January 2020.

Acuiti progress report on the EONIA to €STR transition

Acuiti Management Intelligence published a progress report (in association with Eurex Group) on the transition from the euro overnight index average (EONIA) to the euro short-term rate (€STR), considering preparedness in the derivatives industry and challenges caused by the transition.

ISDA CEO discusses technological solutions for the derivatives industry

The CEO of the International Swaps and Derivatives Association (ISDA), Scott O’Malia, addressed the ISDA Tech Forum. O’Malia discussed the impact of technology on derivatives transactions and urged the derivatives industry to tackle ageing infrastructure which is limiting efforts to automate at scale across firms and platforms. O’Malia emphasised the importance of standardisation as a pre-requisite to scalable automation, focusing on the importance of the ISDA Common Domain Model.

 

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Investment funds and asset management

 

FCA sets out liquidity management expectations for authorised fund managers

The head of the asset management department at the FCA, Nick Miller, wrote to the boards of authorised fund management firms setting out the FCA’s expectations on liquidity management. Miller reminds firms of the need for suitable portfolio composition, effective fund governance, understanding of the investor base and redemption rights, and the appropriate use of liquidity tools, particularly in times of market volatility and stress. 

Better Finance reports on UCITS prospectuses analysis

Better Finance took part in what it believes to be the first-ever study of UCITS prospectuses. It considers that the findings shed light on a range of issues, including who uses prospectuses, the main purposes of use, what types of information they look for, and how easy it is to find and understand that information. The study looked at the top 50 cross-border asset managers, with the prospectus of each company’s flagship UCITS selected for analysis and testing.

IA manifesto aims to promote UK as ‘the global leader for investment management’

The Investment Association (IA) published an investment management industry manifesto setting out policy recommendations ‘to ensure the sector maintains its existing world-leading position’. It urges the next government to promote the UK as ‘the global leader for investment management’, with a modern regulatory system that focuses on international competitiveness as well as consumer protection. 

SBAI updates its standardised board agenda to strengthen governance in funds

The Standards Board for Alternative Investments (SBAI) published an updated version of its Standardised Board Agenda in its SBAI Toolbox. The original version was published in April 2014 to provide guidance to fund directors, managers and investors on issues relating to running fund board meetings, topics to be addressed and documentation to be produced at those board meetings. The 2014 version has been updated in light of increased investor scrutiny of fund governance arrangements and the strengthening of governance frameworks in fund jurisdictions.

ECB working paper on stress testing model for investment funds

The ECB published a working paper by Régis Gourdel, Eduardo Maqui and Matthias Sydow, entitled ‘Investment funds under stress’. The paper presents a model for stress testing investment funds, based on a sample of open-ended equity and bond funds.

 

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Banks and mutuals

 

BSB publishes full suite of SM&CR good practice guidance

The BSB published four good practice guidance documents intended to help firms reference their own policies and procedures against a statement of what ‘good’ looks like in relation to the FCA’s SM&CR. According to the BSB, this guidance facilitates the practical application of the rules in a way that respects both the purpose and spirit of the FCA’s requirements.

HMRC guidance on tax treatment of hybrid regulatory capital

HMRC issued two notes explaining HM Treasury regulations coming into force on 29 November 2019 which ensure that interest payments made on certain hybrid instruments issued by banks and insurers as regulatory capital under new BoE requirements continue to receive a tax deduction. These regulations have effect for payments made on or after 1 January 2019 and will be replaced from 1 January 2020 by new regulations to comply with more stringent rules under the EU anti-tax avoidance directive. The notes published were:

Open Banking update on banks’ implementation of the Customer Experience Guidelines

Open Banking published an overview of how the six largest banks in Great Britain and the three largest banks in Northern Ireland (known collectively as the CMA9) have implemented the Customer Experience Guidelines, which set out how a customer journey can be low-friction, speedy and simple, and the measures the Open Banking Implementation Entity and the CMA9 are taking to remedy any outstanding issues. 

BCBS newsletter on capital buffer framework

The BCBS published a newsletter on the capital buffer framework. The newsletter reiterates the importance of the framework and emphasises that buffers are designed to be usable.

Andrea Enria on the history of the banking union and the future of EU/UK relations

The ECB published a speech by the chair of its supervisory board, Andrea Enria, in which he argued that although the banking union is not yet complete, it made a lot of progress and benefits everyone. Enria said there is still some way to go to restore the quality of banks’ assets to pre-crisis levels, but the policies are in place and the banks have clear targets to achieve. Enria also discussed the future EU/UK relationship, predicting that they would ‘remain closely intertwined’.

Sajid Javid agrees to review BBRS eligibility criteria

Following concerns raised by the APPG on fair business banking, the chancellor of the exchequer, Sajid Javid, agreed to review the eligibility criteria for firms to access the BBRS. APPG chair Kevin Hollinrake told Javid it would be ‘a fundamental error’ to exclude many complainants that went through past bank-led redress schemes, and it would risk undermining the principal premise of the BBRS: to start to rebuild trust between SMEs and the banks.

 

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Consumer credit, mortgage and home finance

 

FCA publishes Handbook Notice No. 70

The FCA published Handbook Notice No. 70, which includes changes to the FCA Handbook made by the FCA board on 26 September 2019 and 24 October 2019. Feedback on the relevant CPs is set out in Chapter 3 of the Notice or in separate PSs.

 

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Regulation of insurance

 

HMRC guidance on tax treatment of hybrid regulatory capital

HMRC issued two notes explaining HM Treasury regulations coming into force on 29 November 2019, which ensure that interest payments made on certain hybrid instruments issued by banks and insurers as regulatory capital under new BoE requirements continue to receive a tax deduction. These regulations have effect for payments made on or after 1 January 2019 and will be replaced from 1 January 2020 by new regulations to comply with more stringent rules under the EU anti-tax avoidance directive. The notes published were:

PRA letters set out insights and expectations from review of insurance firms’ reserving

The PRA wrote to the chief actuaries of general insurance firms regulated in the UK to share insights from the latest review of firms’ reserving during 2019. The PRA also wrote to the CEOs of UK general insurance firms with some more general observations of recent supervisory work and priorities for supervising the sector in the months ahead.

EIOPA publishes responses from national authorities on its Brexit recommendations

EIOPA published responses from national competent authorities on their compliance, intention to comply or non-compliance with EIOPA’s ‘Recommendations for the insurance sector in light of the [UK] withdrawing from the [EU]’.

IAIS newsletter for October 2019 discusses new peer review process

The International Association of Insurance Supervisors (IAIS) published its newsletter for October 2019, with a focus on the IAIS completing its first assessment under the new peer review process. The lead article sets out the background to the new process and says the full report will be published later in November 2019.

 

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Regulation of personal pension and stakeholder products

 

Committee ‘extremely disappointed’ by government rejecting ‘core’ pensions recommendation

The House of Commons Work and Pensions Select Committee (WPSC) published both the government’s and the FCA’s responses to its report into pension costs and transparency. The WPSC welcomed the government’s decision to accept two recommendations—to introduce a requirement on pension funds to disclose costs to fund managers in a uniform template and for the government to review the level and scope of the pension product charge gap and permitted charging structures. However, WPSC also states that it is ‘extremely disappointed’ by the government’s rejection of the ‘core recommendation’ to publish a timetable for the rollout of a non-commercial pensions dashboard by the end of 2019. Kirsty Bartlett, partner at Squire Patton Boggs, comments on the responses, saying it is ‘encouraging to see progress being made on a voluntary basis’. 

 

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Payment services and systems

 

ECB amended guideline and decision on TARGET2 published in the Official Journal

ECB Guideline (EU) 2019/1849 amending Guideline ECB/2012/27 on a Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2) and Decision (EU) 2019/1848 amending Decision ECB/2007/7 on the terms and conditions of TARGET2 were published in the OJ. The amending guideline clarifies and updates certain aspects of Guideline ECB/2012/27, including the conditions under which investment firms may participate in TARGET2, and the amending decision updates Decision ECB/2007/7 to reflect the changes to the guideline. 

FATF consults on digital identity systems for customer due diligence

FATF is developing guidance to clarify how digital identity systems can be used for CDD, and consulting on a draft. The guidance intends to help governments, financial institutions and other relevant entities apply a risk-based approach to the use of digital ID for CDD. Feedback is sought by 29 November 2019.

 

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Fintech and cryptoassets

 

AFME paper examines barriers to public cloud adoption in financial services

AFME published a paper setting out 14 recommendations to ‘help realise the full potential of public cloud computing across the capital markets industry’. It aims to help banks, cloud providers, regulators and the industry as a whole increase the transparency and collaboration required to build further confidence, trust and capability in public cloud computing. 

Statement on IOSCO study of emerging global stablecoin proposals

At its meeting on 30 October 2019 in Madrid, the board of the International Organization of Securities Commissions (IOSCO) met, among other things, to consider the risks and benefits arising from stablecoin initiatives with a potential global reach (global stablecoins) and how securities market regulation may apply to such initiatives.

 

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Sustainable finance

 

OECD report on due diligence for responsible corporate lending and securities underwriting

The Organisation for Economic Co-operation and Development (OECD) published a paper entitled: ‘Due diligence for responsible corporate lending and securities underwriting: Key considerations for banks implementing the OECD Guidelines for Multinational Enterprises’.

AFME comments on adopted texts of proposed Taxonomy Regulation

AFME commented on the adopted texts of the proposed Regulation of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment (also referred to as the Taxonomy Regulation) in light of the trilogue negotiations. 

New taskforce aims to increase Islamic finance engagement with the UN Sustainable Development Goals

The UK Islamic Finance Council UK (UKIFC), a not-for-profit, advisory and developmental body focused on promoting and enhancing the global Islamic and ethical finance industry, is to run a new international taskforce to engage the Islamic finance industry with the UN’s Sustainable Development Goals (SDGs). Recent analysis from UKIFC found ‘a considerable lack of knowledge, misunderstandings and minimal engagement by Islamic financial institutions with the SDGs’.

ESMA publishes conclusions of its October 2019 management board meeting

ESMA published a summary of its management board meeting of 1 October 2019, including the board’s conclusions on ESMA’s strategic direction in relation to investor protection, sustainable finance and ESMA’s role promoting competitive EU financial markets. 

 

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Islamic finance

 

The IFSB consults on revised Islamic finance capital adequacy standard

The Islamic Financial Services Board (IFSB) is consulting on an exposure draft of a revised capital adequacy standard for institutions offering Islamic banking services (ED-RCAS). Feedback is sought by 2 January 2020. IFSB invites comments from central banks, regulatory and supervisory authorities, international organisations, institutions offering Islamic financial services (IIFS), academics and other interested parties.

The IFSB disseminates data for Islamic banking systems in member countries

The IFSB announced the dissemination of country-level data on financial soundness and growth of the Islamic banking systems for Q2 of 2019 from IFSB member jurisdictions. This 14th dissemination completes the availability of quarterly data from Q4 of 2013 to Q2 of 2019. This Prudential and Structural Islamic Financial Indicators project currently compiles data from Afghanistan, Bahrain, Bangladesh, Brunei, Egypt, Indonesia, Iran, Jordan, Kazakhstan, Kuwait, Lebanon, Libya, Malaysia, Nigeria, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Sudan, Turkey, the United Arab Emirates and the UK.

New taskforce aims to increase Islamic finance engagement with the UN Sustainable Development Goals

The UKIFC, a not-for-profit, advisory and developmental body focused on promoting and enhancing the global Islamic and ethical finance industry, is to run a new international taskforce to engage the Islamic finance industry with the UN’s SDGs. Recent analysis from UKIFC found ‘a considerable lack of knowledge, misunderstandings and minimal engagement by Islamic financial institutions with the SDGs’.

 

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Dates for your diary

 

DateSubjectEvent

 

7 November 2019

 

Enforcement and redress

 

The meeting of the High Level Working Group on Competitiveness and Growth is to take place on 7 November 2019.

 

8 November 2019MiFID II

ESMA will publish the systematic internaliser (SI) regime data for equity, equity-like instruments and bonds, and the quarterly liquidity assessment for bonds. The requirements based on this publication will apply from 16 November 2019.

 

8 November 2019Enforcement and redress

The deadline to respond to the independent review into supervision of Connaught fund is 8 November 2019.

 

11 November 2019Prudential regulation

The deadline for feedback to the European Commission’s consultation on the alternative standardised approach for market risk is 11 November 2019.

 

11 November 2019Fintech and cryptoassets

The deadline for feedback to the FCA consultation paper CP19/29 on proposals for recovering costs of supervising crypto-asset firms under MLRs is 11 November 2019, for comments on the proposed registration fee.

 

12 November 2019Prudential regulation

The EU Commission’s Directorate General for financial stability, financial services and capital markets union (DG FISMA)’s conference discussing the impact and challenges of implementing the finalised Basel III standards in the EU is taking place on 12 November 2019.

 

12 November 2019Consumer credit, mortgage and home finance

As part of PS19/17: Buy Now Pay Later (BNPL) offers – feedback on CP18/43 and final rules the FCA confirmed that:
—the requirement for firms not to charge backdated interest on amounts of money that were repaid by the consumer during the BNPL offer period will come into effect on 12 November 2019, and
—CONC 6.7 (Post-contractual requirements) will be updated with effect from 12 November 2019 to include partial repayments under BNPL or similar offers to reflect customer repayments during the BNPL offer period.

 

13 November 2019

MiFID II


Regulation of capital markets

The deadline for feedback to the IOSCO consultation report on clock synchronisation is 13 November 2019.

 

14 November 2019Investment funds and asset management

14 November 2019 is the deadline for feedback to the FCA’s guidance consultation (GC19/4) on proposed Knowledge Base changes:
—changes to technical note (TN) on master-feeder structures clarifying the Listing Rules Chapter 15 (LR15) risk diversification requirements (FCA/TN/409.1)
—new TN on classifying changes to an investment management agreement under LR11 (related party transactions) (FCA/TN/411.1).

 

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Read about the key trends to watch for Q4 in Financial Services case law and legislation here. 

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About the author:
Pietra has completed the Bar Professional Training Course at the University of Law and was called to the Bar in 2019. Prior to the BPTC, Pietra undertook a law degree at the University of Bristol.