Weekly highlights—31 January 2019

Weekly highlights—31 January 2019



Treasury Committee launches inquiry into the future of the UK’s financial services post-Brexit

The Treasury Select Committee launched an inquiry that will examine what the UK government’s financial services priorities should be when it negotiates the UK’s future trading relationship with the EU and third countries. It will also look at how the UK’s financial services sector can take advantage of the UK’s new trading environment with the rest of the world, and whether the UK should maintain the current regulatory barriers that apply to third countries. Commenting on the launch of the inquiry, Nicky Morgan MP, chair of the Treasury Committee, said ‘The UK may converge, seek equivalence, or diverge from the EU. As part of our new inquiry, the Treasury Committee will examine the risks and rewards of each of these choices’.

PRA 'broadly' prepared for Brexit, Chief Exec tells MPs

The United Kingdom's Prudential Regulation Authority (PRA) is ‘broadly on track’ in its preparations for Brexit in 65 days, as around 80 foreign banks and insurers applied to establish branches to preserve their operations in London, a senior official told lawmakers. Sam Woods, the PRA’s chief executive officer, sought to reassure Parliament’s influential Treasury Select Committee that the regulator was set for Britain to leave the European Union on March 29. ‘Broadly I think we are on track,’ Woods said. ‘We’ve expected for about the last 12 months now that the firms we’d have applying for that, split across banks and insurers, would be about 170…We’ve had about 80 in so far’.

FMLC comments on draft Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019

The Financial Markets Law Committee (FMLC) published a letter to the Brexit Implementation Team at HM Treasury in which the FMLC comments on the draft Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (the draft FSMA SI). The draft FSMA SI amends the Financial Services and Markets Act 2000 which, together with related secondary legislation, defines the ‘regulatory perimeter,’ setting out the activities and entities that fall within the scope of UK financial services regulation and sets out the requirements and procedures for financial services entities to be authorised to carry on such activities in the UK.

Commission adopts Delegated Regulations granting post-Brexit exemptions to BoE

The European Commission adopted Commission Delegated Regulations which include the Bank of England (BoE) and other UK public bodies charged with or intervening in the management of public debt in the list of exempt entities under certain provisions of the European Market Infrastructure Regulation (EMIR), the Market Abuse Regulation ( MAR), the Markets in Financial Instruments Regulation (MiFIR) and the Securities Financing Transactions Regulation (SFTR). The Commission also published its related reports to the European Parliament and the Council of the EU. The new Commission Delegated Regulations enter into force on the date when the respective EU legislation ceases to apply in and to the UK.

Competition (Amendment etc) (EU Exit) Regulations 2019

SI 2019/93: This enactment is made in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This enactment amends and repeals provisions of UK primary and secondary legislation, and retained direct EU legislation in relation to competition, to correct deficiencies in competition legislation arising from EU exit. These Regulations prepare for a scenario where no agreement is reached between the UK and the EU. These Regulations exclude from retained EU law certain provisions of direct EU legislation and Treaty rights, which would otherwise be incorporated into UK law by operation of the savings under the 2018 Act. Currently, the UK antitrust enforcement and merger control systems are integrated with the EU. These Regulations separate the two systems, and make provision for a smooth transition to a standalone UK competition regime after exiting the EU. It comes into force on exit day. (Updated from draft on 24 January 2019).

Electronic Commerce (Amendment etc) (EU Exit) Regulations 2019

SI 2019/87: This enactment is made in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This enactment amends UK subordinate legislation relating to EU Directive 2000/31/EC (the Electronic Commerce Directive) of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the internal market in order to address deficiencies arising as a result of the withdrawal of the UK from the EU in the event of a 'no deal' scenario. These Regulations, for which the Department for Digital, Media, Culture and Sport is responsible, implement aspects of the Electronic Commerce Directive into UK law. It comes into force on exit day.

Electronic Identification and Trust Services for Electronic Transactions (Amendment etc) (EU Exit) Regulations 2019

SI 2019/89: This enactment is made in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This enactment amends provisions deriving from EU Regulation (EU) 910/2014 (the eIDAS Regulation) of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing EU Directive 1999/93/EC, as retained in domestic law under the 2018 Act. This instrument repeals the electronic identification aspects and retains the trust services. It comes into force on exit day.

Securitisation (Amendment) (EU Exit) Regulations 2019

SI 2019/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment proposes to amend subordinate legislation and retained direct EU legislation in relation to Regulation (EU) 2017/2402 (the Securitisation Framework Regulation) of the European Parliament and of the Council of 12 December 2017 in order to address deficiencies which arise from the withdrawal of the UK from the EU. This draft enactment also amends Regulation (EC) 1060/2009 (the Credit Rating Agencies Regulation or CRA), EMIR, Regulation (EU) 575/2013 (the Capital Requirements Regulation or CRR) and Regulation (EU) 2017/2401 (the Securitisation Regulation) and Delegated Regulations (EU) 2015/61 as well as making necessary changes to relevant UK law, ensuring the legislation continues to operate effectively at the point at which the UK leaves the EU.

Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019

SI 2019/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment addresses deficiencies in retained EU law that arise from the UK leaving the EU, specifically in relation to Regulation EU 2016/11 (the Benchmark Regulation or BMR) and related EU tertiary legislation. These draft Regulations propose to make amendments to the BMR and a number of other European enactments. It does not amend any UK enactments.

Money Market Funds (Amendment) (EU Exit) Regulations 2019

SI 2019/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment addresses the deficiencies in retained EU law in relation to money market funds (MMFs), arising from the withdrawal of the UK EU, ensuring the legislation continues to operate effectively at the point at which the UK leaves the EU. These draft Regulations propose to make amendments to the Financial Regulators’ Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 and to Regulation (EU) 2017/1131 (the Money Market Funds Regulation).

Financial Services (Distance Marketing) (Amendment and Savings Provisions) (EU Exit) Regulations 2019

SI 2019/Draft: This draft enactment is laid in exercise of legislative powers under the European Communities Act 1972 and the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment proposes to amend UK subordinate legislation in relation to the distance marketing (for example by telephone, email or fax) of consumer financial services in order to address deficiencies in retained EU law arising from the withdrawal of the UK from the EU, ensuring the legislation continues to operate effectively at the point at which the UK leaves the EU. It comes into force partly on the day after which these draft Regulations will be made and fully on exit day.

European Structural and Investment Funds Common Provisions and Common Provision Rules etc (Amendment) (EU Exit) Regulations 2019

SI 2019/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment proposes to disapply the common provision regulations on European Structural and Investment Funds insofar as they apply to the European Regional Development Fund, European Social Fund, Cohesion Fund, and European Territorial Cooperation (ETC), in order to address deficiencies in retained EU law as provided for by the 2018 Act. In the event of a no deal exit, this draft instrument also ensures that projects supported by these funds can continue to operate domestically under HM Government’s funding guarantee by including transitional provisions for projects agreed before exit, and by creating a power to pay out the HM Government funding guarantee to relevant recipients for the continued delivery of projects under the cross-border ETC programmes. It comes into force partly on the day after which these draft Regulations will be made, and fully on exit day (whichever is the later of).

Transparency of Securities Financing Transactions and of Reuse (Amendment) (EU Exit) Regulations 2019

SI 2019/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment proposes to amend UK subordinate legislation, and amend and revoke provisions of retained direct EU legislation in the field of securities financing transactions in order to address deficiencies in retained EU law which arise from the withdrawal of the UK from the EU, ensuring the legislation continues to operate effectively at the point at which the UK leaves the EU. It comes into force on exit day.

Financial Regulators’ Powers (Technical Standards etc) and Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2019

SI 2019/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment proposes to amend UK subordinate legislation by adding the binding technical standards (BTS) to the list of BTS which the regulators may amend to correct deficiencies in order to ensure that the recently adopted BTS continue to operate effectively after the UK withdraws from the EU, and by making some minor amendments in order to ensure that it effectively addresses deficiencies in retained EU law relating to markets in financial instruments, so that it continues to operate effectively after exit. It comes into force on the day after which these draft Regulations will be made.

Financial Services (Implementation of Legislation) Bill [HL]

The Financial Services (Implementation of Legislation) Bill is a Bill to authorise the making of provision by reference to certain EU financial services legislation adopted on or before, or no later than two years after, the UK's withdrawal from the EU. It is currently at House of Lords report stage (as per 29 January 2019).

UK and Swiss Confederation sign agreement on direct insurance other than life assurance

The UK and the Swiss Confederation signed an agreement on direct insurance other than life assurance (UK-Swiss Direct Insurance Agreement). The agreement was signed by Philip Hammond, chancellor of the exchequer and Ueli Maurer, president of the Swiss Confederation and head of the Federal Department of Finance. The UK-Swiss Direct Insurance Agreement is an important step in providing continuity and certainty for UK and Swiss non-life insurance firms as the UK prepares to leave the EU. It will ensure continuity for UK and Swiss insurers accessing the UK or Swiss market both now and in the future—consistent with the terms of the original EU-Swiss Direct Insurance Agreement. It will come into force once the UK is no longer subject to the existing EU-Swiss Direct Insurance Agreement. The agreement was signed in Davos on 25 January 2019 and is now before Parliament, along with a correction slip and an explanatory memorandum.


Financial Conduct Authority updates


FCA publishes Handbook Notice No 62

The Financial Conduct Authority (FCA) published Handbook Notice No. 62, which includes changes to the FCA Handbook made by the FCA board on 13 December 2018 and 2 and 24 January 2019. The Handbook Notice includes, among others, the following instruments:

  • Securitisation Regulation Implementation (Fees for Third Party Verifiers) Instrument 2019 (FCA 019/1)
  • Consumer Credit (High-Cost Credit) Instrument 2018 (FCA 2018/53)
  • Payment Services (Amendment) Instrument 2018 (FCA 2018/57), and
  • Small Business (Eligible Complainant) Instrument 2018 (FCA 2018/61) (FOS 2018/7)
FCA and Practitioner Panel launch joint survey for 2019

The FCA and the Practitioner Panel launched their joint survey for 2019. The joint survey is sent annually to a sample of the firms that the FCA regulates. It gives firms the opportunity to provide feedback to the FCA on how the FCA regulates the industry. The survey is carried out on behalf of the FCA and the Practitioner Panel by Kantar Public, an independent social research organisation. Kantar will send the survey to a random sample of 12,000 firms.


Prudential requirements


ESRB publishes report on macroprudential approaches to NPLs

The European Systemic Risk Board (ESRB) published a report on its analysis of macroprudential approaches to non-performing loans (NPLs), in response to the mandate it was given by the Council of the EU in July 2017. The ESRB was requested to develop macroprudential approaches to prevent the emergence of system-wide NPL problems, while taking due consideration of procyclical effects of measures addressing NPLs stocks and potential effects on financial stability. In its report, the ESRB highlights that the emergence and accumulation of NPLs can become a systemic problem when they affect a considerable part of the financial system, threatening its stability and/or impairing its core function of facilitating financial intermediation.

ECB publishes supervisory banking statistics for the third quarter of 2018

The ECB published supervisory banking statistics for the third quarter of 2018. During this period, the capital ratio increased slightly, the NPL ratio decreased and the liquidity coverage ratio was stable. All capital ratios for the group of significant institutions (ie the banks supervised by the ECB) increased slightly in the third quarter of 2018 compared with the previous quarter. The Common Equity Tier 1 (CET1) ratio stood at 14.18%, the Tier 1 ratio at 15.40% and the total capital ratio at 17.83%. Average CET1 capital ratios at participating Member State level range from 11.75% in Spain to 25.27% in Luxembourg.

EBA asks for revised deadlines for draft TS under proposed Investment Firms Regulation and Directive

The EBA published a letter to the Council of the EU, the European Parliament and the European Commission requesting revised deadlines for the submission of draft technical standards (TS) under the proposed regulation on the prudential requirements of investment firms and amending the CRR, MiFIR and Regulation (EU) 1093/2010 establishing a European Supervisory Authority, and the proposed directive on the prudential supervision of investment firms and amending Directives 2013/36/EU (CRD IV) and 2014/65/EU (MiFID II).

EBA updates list of closely correlated currencies under CRR

The EBA updated the 2018 list of closely correlated currencies that was originally published in December 2013. The list is part of the implementing technical standards (ITS) that were drafted for the purposes of calculating the capital requirements for foreign-exchange risk according to the standardised rules in accordance with the CRR. Commission Implementing Regulation (EU) 2015/2197 of 27 November 2015 lays down ITS with regard to closely correlated currencies in accordance with the CRR. It was updated in October 2018 by Commission Implementing Regulation (EU) 2018/1580.

EDPS comments on the proposed directive on credit servicers, credit purchasers and the recovery of collateral

The Council of the EU published a letter (2018/0063(COD)) from Wojciech Wiewiorowski, assistant supervisor at the European Data Protection Supervisor (EDPS) to Valdis Dombrovskis, commissioner for Financial Stability, Financial Services and Capital Markets Union. The letter sets out the formal opinion of the EDPS on the data protection implications of the Commission's March 2018 proposal for a directive on credit servicers, credit purchasers and the recovery of collateral. The proposal forms part of the EU's Capital Markets Union and the Banking Union's focus to reduce the number of NPLs.


Regulatory architecture


ECB decision on the selection of ESMIG network service providers published in Official Journal

Decision (EU) 2019/137 of the ECB of 23 January 2019 on the selection of Eurosystem Single Market Infrastructure Gateway (ESMIG) network service providers (ECB/2019/2) was published in the Official Journal of the EU. The decision appoints Banco d’Italia as the mandated central bank responsible for selecting and signing contracts with ESMIG network service providers and sets out related rules and procedures for Banco d’Italia to follow in carrying out that role.


Authorisation, approval and supervision


ESFS reforms to be presented to European Parliament plenary in April 2019

The European Parliament provisionally scheduled its plenary session on 15 to 18 April 2019 for the first reading of the regulation reforming the European System of Financial Supervision (ESFS). The regulation was proposed by the European Commission in September 2017. The ESFS is a network centred around the European Supervisory Authorities (ESAs) (the European Securities and Markets Authority (ESMA), the EBA and the European Insurance and Occupational Pensions Authority (EIOPA) and the ESRB and national supervisors. Its main task is to ensure consistent and appropriate financial supervision throughout the EU.


Risk management and controls


UK Finance looks at data protection developments in 2019

UK Finance published an article by Walter McCahon, data policy manager at UK Finance, on data protection issues that firms should keep an eye on in 2019. Mr McCahon foresees that there will be an interesting balancing act to maintain for firms and for regulators as the market tries try to find new, innovative ways to use data while respecting privacy and the still-emerging area of data ethics. Possible developments include sizeable fines under the General Data Protection Regulation (GDPR), which significantly increases maximum fines for data protection breaches. A €50m fine was recently imposed in France, for example, compared to the maximum fine of £500,000 in the UK prior to GDPR.


Financial crime


ECB opinion on amended proposal for updated EBA regulation relating to AML and CTF

The ECB issued an opinion on an amended proposal amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority and related legal acts (CON/2018/55). The proposal forms part of the Commission's aim to upgrade the ESAs framework to ensure they can assume an enhanced responsibility for financial market supervision. The ECB's opinion focuses on the Commission's amendments to the proposal in September 2018 giving the EBA greater powers related to preventing and combating money-laundering and terrorist financing.

Tesco DPA published in full following acquittal of the final executive accused of fraud

The deferred prosecution agreement (DPA) between the Serious Fraud Office (SFO) and Tesco Stores Ltd, which was subject to reporting restrictions since April 2017, was published. Tesco Stores Limited avoided prosecution in respect of a charge of false accounting relating to its overstatement of its expected profit by £284m, in a half year period in 2013/2014. The terms of the agreement included cooperation with the SFO and other regulators in respect of all matters arising incidental to the conduct, payment of £128m in financial penalties and £3m in costs and remedial actions including commissioning a review, by external auditors, of systems and processes. The cooperation demonstrated by the company and the responsibility taken at a senior level as soon as the issue was identified clearly led to the decision that the matter was suitable for a DPA.

SFO under fire over claims against execs cleared of fraud

Repeated allegations by the SFO that three former Tesco executives falsified accounts, even after they were all acquitted in court, reveal flaws in the use of DPAs—and lawyers say it could be time to rethink the controversial legal weapon. A judge  cleared Carl Rogberg, the former UK finance manager at the supermarket chain, of fraud and false accounting, ruling that there was no evidence on which his trial at Southwark Crown Court could continue. Rogberg’s prosecution crumbled weeks after two of his ex-colleagues—John Scouler and Chris Bush—were acquitted of the same charges when another judge told jurors to clear them in December.

NY fines Standard Chartered $40M after forex-rigging probe

New York’s banking regulator said that Standard Chartered Bank will pay $40m to resolve claims that it participated in a scheme to rig foreign exchange benchmark rates, marking the last settlement to come from a long-standing investigation into misconduct and manipulation in the foreign exchange market. The New York State Department of Financial Services said in a consent order that Standard Chartered violated state banking laws through the ‘unsafe, unsound and improper conduct’ of traders in its foreign exchange business who used code names and chatrooms to share customer information and coordinate trading.


Enforcement and redress


FCA publishes PS19/2—previously rejected PPI complaints and further mailing requirements, and Handbook instrument 2019/7

The FCA published FCA Policy Statement 19/2: Previously rejected PPI complaints and further mailing requirements—Feedback on Consultation Paper CP18/33 and final rules and guidance (PS19/2). The FCA also issued Handbook Instrument 2019/7: Dispute Resolution: Complaints (Payment Protection Insurance) (Amendment No 4) Instrument 2019 (also contained in Appendix 1 of PS19/2) which sets out the FCA's final mailing requirements and the accompanying guidance. This will apply from 30 January 2019. Firms must complete the mailings required by these rules and guidance as soon as reasonably practicable, and at the latest by 29 April 2019.

FCA ordered to pay ex-financial adviser's costs after delays

An appeals tribunal ordered the FCA to pay £4,440 ($5,850) to a former director of a financial adviser for ‘unreasonably’ dragging out its case accusing him of undisclosed conflicts of interest and failing to give advice to pension clients, according to court documents. Writing on behalf of the tribunal, Judge Tim Herrington of the Tax and Chancery Chamber said the City regulator's internal enforcement and decisions committee was unfair to Alistair Burns during its investigation and prosecution. The FCA alleged that Burns lacked competence which ensured that TailorMade Independent was giving bad advice to its clients and failed to manage conflicts of interest.

FSCS announces compensation for further Beaufort clients following stockbroker’s collapse

The Financial Services Compensation Scheme (FSCS) announced that 750 clients of Beaufort Asset Clearing Services received their money and assets through the collaboration of the FSCS and the firm’s special administrators PricewaterhouseCoopers (PwC) in the wake of the stockbroker’s collapse 10 months ago. In total, more than 16,100 clients (of 17,500) were compensated by the FSCS. The 754 Beaufort clients were transferred to the broker The Share Centre. A tranche of cash and assets are being returned to them via collaboration between the FSCS and PwC.

APPG on Fair Business Banking publishes letters from TSB and FCA

The All-Party Parliamentary Group (APPG) on Fair Business Banking published three letters to its co-chair, Kevin Hollinrake MP. The first letter, from Richard Davies, commercial banking director at TSB Bank, relates to TSB’s new lending pledge for businesses in financial distress. The two remaining letters are from Andrew Bailey of the FCA to Mr Hollinrake, addressing (1) Clydesdale Bank tailored business loans and (2) several concerns raised by the APPG relating to other named banks.


Markets and trading


Council of the EU decision incorporating CSDR into EEA Agreement published in Official Journal

Council Decision (EU) 2019/134 of 21 January 2019 on the position to be adopted, on behalf of the European Union, within the EEA Joint Committee, concerning the amendment of Annex IX (Financial Services) to the EEA Agreement was published in the Official Journal of the EU. The decision incorporates Regulation (EU) 909/2014 on improving securities settlement in the EU and on central securities depositories (the Central Securities Depositories Regulation or CSDR) into the Agreement on the European Economic Area (the EEA Agreement).

EMIR—Commission consults on equivalence of Japanese regulatory regime for derivatives transactions

The European Commission is consulting with the European Securities Committee until 8 February 2019, regarding a draft implementing decision on the recognition of the legal, supervisory, and enforcement arrangements of Japan for derivatives transactions supervised by the Japanese Financial Services Agency as equivalent to the valuation, dispute resolution and margin requirements of Article 11 of EMIR. The Committee may provide a binding opinion that either approves or rejects the measure. If the Committee is unable to reach a decision, the Commission can choose to carry out the proposed measure or submit a new version to the Committee, taking into account the views expressed in the Committee.

ESMA updates Benchmark Regulation Q&As

ESMA updated its Q&As on the BMR. The new Q&A confirms that the scope of application of the Commission Delegated Regulations adopted under the BMR is identical to the scope of the corresponding requirement in the BMR, including the transitional provisions of Article 51 of the BMR. This is relevant in particular to regulated-data, interest-rate, and commodity benchmarks.

ESMA updates CSDR Q&As to give clarifications on cash penalties

ESMA published updated its Q&As regarding the implementation of the the CSDR. The Q&As address practical issues on the implementation of the new CSDR regime, and the latest additions to the Q&As clarify two aspects of the settlement discipline regime relating to cash penalties. The ESMA Q&As on the CSDR are aimed at national competent authorities (NCAs), to ensure that supervisory approaches in the application of the CSDR are consistent across jurisdictions.

ESMA updates plan for systematic internaliser regime calculations and publications

ESMA published an updated chapter on the systematic internaliser regime calculations within its updated Q&As on MiFID II and MiFIR transparency topics. The updated action plan for systematic internalisers maintains the ongoing publication for equity, equity-like instruments and bonds while postponing the publication for derivatives and other non-equity instruments until at the latest 2020. ESMA was required to amend its action plan as data completeness for various non-equity asset classes is yet to reach adequate levels. ESMA considers it premature to publish the systematic internaliser calculations for non-equity instruments other than bonds at this stage.

FCA publishes list of EEA MiFID II market operators applying for ROIE status

The FCA published a list of EEA market operators (as defined by MiFID II) that applied or given formal intention to apply to become a recognised overseas investment exchange (ROIE) in the UK. The FCA published the list in response to its September 2018 direction that clarified how market operators (as defined by MiFID II) from the EEA can apply to become a ROIE. ROIE status allows EEA market operators to continue to provide their members based in the UK with access to their market, should they no longer be able to rely on MiFID II passport rights once the UK leaves the EU. Since then, several market operators from the EEA applied or expressed a formal intention to apply to become ROIEs.

FCA director of markets and wholesale policy looks at the end of LIBOR

Edwin Schooling Latter, director of markets and wholesale policy at the FCA, gave a speech on LIBOR transition and contractual fallbacks at the International Swaps and Derivatives Association (ISDA) Annual Legal Forum. Mr Schooling Latter said that there is now wide recognition that LIBOR will come to an end and that he wished to explore in more detail how it will end. Mr Schooling Latter said this issue will entail important implications for contractual design. It is relevant, in particular, to how fallback language in outstanding contracts that continue to reference LIBOR will and should work. Understanding the way in which the end of LIBOR will play out is key to choosing the right trigger point for moving to a new or replacement fallback rate.

FCA Insight: IEX President says technology can help solve market inefficiencies

The FCA published highlights of a talk given by Ronan Ryan, President of US stock exchange IEX (the Investors Exchange), on the future of trading. Mr Ryan, speaking at an event at the London Stock Exchange before Christmas, discusses high frequency trading and how IEX was set up, elements of US and UK regulation, and the future of trading—including his view that technology can help solve inefficiencies in the market. This talk was given at an event run by Insight in December 2018. Insight is a research project by the FCA set up to help financial markets work effectively.

ISDA publishes best practice recommendations for CCPs

ISDA published a set of best practices for central counterparties (CCPs), aimed at ensuring greater consistency in risk practices at CCPs across the globe. The paper highlights steps that can be taken to minimise the potential for a member default to impact other members and the financial system as a whole, except in an extreme stress event. ISDA’s recommendations follow a default at Nasdaq Clearing in September 2018, which exceeded the defaulting member’s margin and default fund contribution and required the use of mutualised resources—the second such event in five years.

ISDA CEO discusses best practices for CCPs

ISDA published an article in which its CEO, Scott O’Malia, discusses the best practices for CCPs on 24 January 2019. Mr O’Malia says that it is fundamental that CCP risk management decisions should be based on the risk profile of a given derivatives product, using a holistic, multifaceted and dynamic product-based approach. It is insufficient to rely on a single risk factor as the determinant for exposure—eg whether it is classified as an exchange-traded or over-the-counter (OTC) derivative. As markets evolve, risk management must also adapt.

ISDA SwapsInfo Review—full year 2018 and fourth quarter of 2018

ISDA published the ‘ISDA SwapsInfo Review’, which provides analysis of interest rate derivatives and credit derivatives trading activity over both the full year 2018 and the fourth quarter of 2018. The report provides a breakdown of cleared, non-cleared, swap execution facility (SEF) and off-SEF traded notional and trade count, as well as product taxonomy and currency information. The summary was published on January 15, 2019.

ISDA publishes first in a series of Legal Guidelines for Smart Derivatives Contracts

ISDA published the first in a series of legal guidelines for smart derivatives contracts, intended to explain the core principles of ISDA documentation and to raise awareness of important legal terms that should be maintained when a technology solution is applied to derivatives trading. ISDA's first introductory paper outlines some potential smart derivatives contract models, sets out principles for the development of smart derivatives contracts, and identifies contractual and documentation issues that may be relevant in the development and implementation of new technology platforms, products and solutions for use within the derivatives industry.

ISDA publishes paper on regulatory driven market fragmentation

ISDA published a paper on regulatory driven market fragmentation, which identifies examples of differences in how global standards are implemented in individual jurisdictions and recommends a series of steps to take to address the issue. The publication of the paper comes ten years after the Group of 20 (G-20) agreed a globally consistent regulatory agenda for derivatives, and it demonstrates how differences in implementing those rules across jurisdictions led to inefficiencies, higher costs and increased risk for derivatives users.

ISDA call ahead of RFP on amendments to 2006 ISDA Definitions to implement fallbacks for key IBORs

ISDA held a call on 25 January in advance of its planned request-for-proposal (RFP) process relating to its work on amending the 2006 ISDA Definitions to implement fallbacks for LIBOR and other key interbank offering rates (IBORs). ISDA expects to publish the RFP in early February 2019 and interested parties should respond within approximately four weeks to respond. The purpose of the call was to discuss the background materials to the RFP and for ISDA to respond to questions. A recording of the call is available on the ISDA website, along with background materials.

ISDA publishes video on future updates for ISDA Create

ISDA released a video outlining what it plans to bring to ISDA Create in the future. ISDA Create is a platform for firms to negotiate and execute derivatives documentation online. It allows firms to digitally capture, process and store the data within those documents.

AcadiaSoft to partner with ISDA to streamline integration with ISDA Create

ISDA announced that it is forming a partnership with AcadiaSoft Inc, a provider of risk and collateral management services for the non-cleared derivatives community, to aid integration between ISDA Create and AcadiaSoft’s AgreementManager tool. Market participants will be able to create, negotiate and execute their ISDA documentation on ISDA Create and operationalise the terms agreed in the documentation on AgreementManager.

ECSDA publishes draft updated CSDR Penalties Framework

The European Central Securities Depositaries Association (ECSDA) published the updated draft version of the ECSDA CSDR Penalties Framework. This is based on comments received during the public consultation in summer 2018, further reflection among Central Securities Depositaries (CSD) experts and includes the confirmation of some working assumptions by relevant European authorities. The ECSDA CSDR Penalties Framework aims to harmonise settlement penalties mechanisms across CSDs subject to CSDR or (potentially) equivalent regulation.

FIA statistics show record ETD trading volumes in 2018

The Futures Industry Association (FIA) released summary statistics for annual trading activity in the global exchange-traded derivatives (ETD) markets that show record activity in 2018. The number of futures and options that changed hands on exchanges around the world rose 20.2% to 30.28 billion contracts, an all-time record. Futures volume rose 15.6% to 17.15 billion contracts, while options volume rose 26.8% to 13.13 billion contracts. Trading of equity index futures and options was one of the main drivers for the overall increase in trading in 2018.

ICE Benchmark Administration introduces US Dollar ICE Bank Yield Index for review and comment

ICE Benchmark Administration (IBA) published a paper introducing the US Dollar ICE Bank Yield Index for review and comment by market participants. The fully transaction-based index is designed to measure the yields at which investors are willing to invest US dollar funds in large, internationally active banks on a wholesale, unsecured basis over one-month, three-month and six-month periods. IBA is inviting market participants and stakeholders to review and provide feedback on the US Dollar ICE Bank Yield Index and its proposed methodology by 31 March 2019.

FMSB finalises new Standard on secondary market trading error compensation

The Fixed Income, Currencies and Commodities (FICC) Markets Standards Board (FMSB) published the final version of its Standard on Secondary Market Trading Error Compensation, under its remit to improve standards of conduct in the wholesale FICC markets. The new Standard specifies expected behaviours designed to improve the practice of paying compensation for trading errors. The Standard was previously issued as a Transparency Draft and the final version takes account of comments received from market participants. All FMSB materials are available on the FMSB website.


Regulation of capital markets


FCA consults on aligning the FCA Handbook with the Prospectus Regulation

The FCA published consultation paper CP19/6 on changes required to align the Prospectus Rules sourcebook with the Prospectus Regulation. The majority of the changes proposed involve reproducing text from the Prospectus Regulation directly into the new sourcebook. The FCA assumes that an implementation period will be agreed on the UK leaving the EU and that EU law will continue to apply in the UK until the end of the implementation period. The FCA is asking for comments on the consultation paper by 28 March 2019.

European Securitisation Data Snapshot for Q4 2018 and 2018 Full Year released

The Association for Financial Markets in Europe (AFME) circulated the European Securitisation Data Snapshots for Q4 2018 and 2018 Full Year. The Q4 2018 European Issuance demonstrates that in Q4 2018, there was a 64% increase in the securitised products issued in Europe from Q3 2018 and an increase of 19.3% from Q4 2017. The Full Year European Issuance shows that in 2018, there was a 13.9% increase in the securitised product issued in Europe from 2017.


Investment funds and asset management


FCA and FRC propose new stewardship measures—CP19/7, DP19/1 and new Stewardship Code

The FCA issued Consultation Paper 19/7 (CP19/7) and, jointly with the Financial Reporting Council (FRC), Discussion Paper 19/1 (DP19/1) to propose new measures and gather views on how to encourage effective stewardship in the interests of investors. The FRC also published a separate consultation paper on proposed revisions to the UK Stewardship Code, which set substantially higher expectations for investor stewardship policy and practice. The Investment Association (IA) published its comments on the FRC's publication of its proposed 2019 Code. The IA welcomes the review and amendment of the Code, given the significant changes to the stewardship landscape since the last review.

FCA publishes guidance note on NPPR notification forms

The FCA published a guidance note on the notification forms that firms must use to market Alternative Investment Funds (AIFs) under the National Private Placement Regime. The NPPR allows Alternative Investment Fund Managers (AIFMs) to market AIFs that otherwise cannot be marketed under the Alternative Investment Fund Managers Directive (AIFMD) domestic marketing or passporting regimes. Information on the NPPR may be found on the FCA's NPPR webpage.

CMA publishes timetable for implementation of investment consultancy and fiduciary management services remedies

The Competition and Markets Authority (CMA) published the administrative timetable for the implementation of the remedies specified in the final report on its market investigation of investment consultancy and fiduciary management services, published on 12 December 2018. The timetable is as follows:

  • February 2019—public consultation on draft Order
  • April 2019—notification to the European Commission of any requirements additional to MiFID II that are intended to be imposed, and
  • 11 June 2019—statutory deadline for implementing remedial action


Banks and mutual


Re Santander UK plc and another company

Santander UK plc and Abbey National Treasury Services plc succeeded in their application to the court for the sanction of a ring-fencing transfer scheme, under Pt VII of the Financial Services and Markets Act 2000. The Chancery Division held that, in all the circumstances, and in line with the answers given by the skilled person to the statutory question and the assessment of the Regulators, there was no reason to refuse sanction of the scheme.

Retail Banking Market Investigation Order 2017: CMA issues variation of directions to Santander

The CMA published a variation to the directions it issued to Santander in December 2017 under the Retail Banking Market Investigation Order 2017 (the Order). The directions ensure Santander complies with the requirement to release personal and business account data sets, as part of the Open Banking Remedy under Part 2 of the Order. The variation to the directions sets out a revised implementation plan, after Santander informed the CMA it was unable to meet the deadline set out in the original directions.

UK Finance publishes comment on how to thrive in the digital-first future of banking

UK Finance published a comment piece written by Michael M Cook, Senior Manager, Cognizant Center for the Future of Work in which Mr Cook states that the competitive landscape in the European banking market changed significantly particularly because of recent regulation favouring new entrants. This means competition is at an all-time high for incumbent banks. Despite this, research shows that only one-third of incumbents recognised the threat that the Revised Payment Services Directive (PSD2) poses to their business.


Consumer credit, mortgage and home finance


Consumer credit—FCA data provides insight into the payday lending market

The FCA published new lending data providing insights into the high-cost short-term credit (HCSTC, also known as ‘payday lending’) market. The FCA explains that lending volumes in the market remain well below the levels seen in 2013 but rose since 2016. Over 5.4 million loans were made in the year to 30 June 2018, with ten firms accounting for around 85% of new loans. The costs of borrowing are lower than before the price-cap and stable since—on average, borrowers are due to repay 1.65 times the amount they borrow.


Payment services and systems


PSR confirms market review into card-acquiring services

The Payment Systems Regulator (PSR) published its final terms of reference for a market review into the supply of card-acquiring services (MR18/1.2). The PSR also published the feedback from its consultation in July 2018 on the draft terms of reference for the market review. The PSR aims to publish an interim report by the end of 2019, presenting the analysis and preliminary conclusions for consultation. The PSR explains that card payments are an increasingly important payment method, with debit cards becoming the most frequently used payment method in 2017.

EPC publishes summary of 24th meeting of API EG

The European Payments Council (EPC) published a summary of the 24th meeting of its Application Programming Interface (API) Evaluation Group (EG). At the meeting, the API EG discusses the planned creation of a new EBA API group in early 2019 to identify emerging issues as the industry prepares for the application date for the Regulatory Technical Standards on strong customer authentication and common and secure communication under PSD2.

EPC call for experts for Multi-Stakeholder Group on Request-To-Pay

The EPC invited experts to join its new Request-To-Pay Multi-Stakeholder Group (RTP MSG). The required work is to be completed by November 2019. Experts from organisations represented in the ECBs Euro Retail Payment Board are invited to be members of the RTP MSG. The EPC is opening the membership to other actors from the electronic payment industry, such as technical providers of solutions for payments at the Points Of Interactions (processors, terminal providers etc) for which four seats are reserved and to Payment Initiation Service Providers, with two open seats. The application deadline is 15 February 2019.

MasterCard fine may spark new round of private claims

The European Commission's €570m ($648m) fine against MasterCard targeted now-defunct rules that prevented retailers from shopping around for cheaper banks in other countries, and experts say it could add to the avalanche of private damages retailers are already seeking following previous Commission actions on card fees. The Commission is interested in various aspects of so-called interchange fees, which are paid by a merchant's bank to the bank of a cardholder when credit and debit card transactions are made. The MasterCard fine came over company rules that required banks to charge interchange fees based on the country where the merchant was based, preventing retailers from looking for banks elsewhere with lower fees. Experts now say the company could face trouble beyond the multimillion-euro fine issued by the commission.


Insurance and pensions


ESRB decision establishing a coordination framework for supervisory authorities to consult with ESRB on extending the recovery period under Article 138(4) of Solvency II published in Official Journal

A decision of the ESRB of 14 November 2018 on a coordination framework for consultation by a supervisory authority with the ESRB on an extension of the period under Article 138(4) of Directive 2009/138/EC of the European Parliament and of the Council (Solvency II) (ESRB/2018/7) was published in the Official Journal of the EU. The decision establishes a common procedural framework for the consultation of the ESRB by a requesting supervisory authority on the extension of the recovery period under Article 138(4) of Solvency II.

EIOPA calls for improved assessment of the propriety of board members and qualifying shareholders of insurance companies

EIOPA published the findings of its peer review examining how NCAs assess the propriety of administrative, management or supervisory body (AMSB) members and qualifying shareholders. The peer review found that, in general, NCAs invest considerable resources in the initial assessment of AMSB members and qualifying shareholders. However, this tends to be seen as a one-off task with few NCAs undertaking any ongoing assessments as part of their supervisory activities. Ongoing assessment should involve proactive, risk-based and proportionate engagement resulting from the NCAs’ own initiative, as part of its supervisory activities. Other areas requiring action from NCAs were related to the national legislation or regulatory framework, propriety assessment questionnaires, and guidance and supervisory records.

FCA consults on General Insurance value measures data (CP19/8)

The FCA published Consultation Paper 19/8, proposing new rules requiring firms to report General Insurance (GI) value measures data to the FCA for publication (CP19/8). Feedback is requested by 30 April 2019. The FCA also published a third annual value measures dataset, for the period August 2017–August 2018. The FCA previously found issues of poor value in the GI market. The FCA proposes additional requirements for firms to use value measures data as part of the monitoring and governance of their insurance products. The proposals are aimed at addressing poor product value and quality and reducing the risk of unsuitable GI products being bought or sold.

PRA provides feedback on cyber risk underwriting follow-up survey

The PRA published a letter to CEOs of specialist general insurance firms, which provides feedback on the results of the survey which the PRA carried out in May 2018 as a follow-up to Supervisory Statement 4/17 'Cyber insurance underwriting risk' (SS4/17). SS4/17 set out the PRA's expectations for insurers on the prudent management of cyber underwriting risk in the areas of actively managing non-affirmative cyber risk (ie insurance policies that do not explicitly include or exclude coverage for cyber risk), setting clearly defined cyber strategies and risk appetites that are agreed by the board, and cyber expertise. The survey results suggest that although some work is complete, more ground needs to be covered by firms especially in relation to non-affirmative cyber risk management, risk appetite and strategy.

Insurance Europe responds to IAIS consultation on draft holistic framework for systemic risk

Insurance Europe, the European insurance and reinsurance federation, responded to the International Association of Insurance Supervisors’ (IAIS) proposal for a new ‘holistic framework’ for identifying and managing systemic risk in the insurance sector. In its response, Insurance Europe warns that IAIS’ proposal lacks sufficient clarity and calls for improvements including requiring cooperation between national supervisors and insurers, distinguishing between good practice measures and more drastic measures such as resolution, and setting out how systemically risky activities should be identified.

PIMFA responds to EIOPA consultation on integrating sustainability risks under IDD

The Personal Investment Management & Financial Advice Association (PIMFA) set out its response to EIOPA’s consultation on its draft technical advice on possible amendments to the delegated acts under the Insurance Distribution Directive (EU) 2016/97) (IDD) concerning the integration of sustainability risks and factors. In November 2018, EIOPA published for consultation its draft technical advice on possible amendments to the delegated acts under Solvency II and IDD concerning the integration of sustainability risks and factors.

Better Finance criticises ESAs' report on costs and past performance of insurance and pension products

Better Finance, the European Federation of Investors and Financial Services Users, issued a statement on the ESAs Report on Costs and Past Performance of insurance and pension products, published on 10 January 2019. The statement is entitled: 'European Authorities remain mostly blind when it comes to the Past Performance and Costs of Long-term Savings Products, despite first report ever released'. Better Finance considers that the poor analysis and coverage within the report raises questions about the fulfilment of the investor and consumer protection mandate of the ESAs.

FCA issues PS19/1 ‘Retirement Outcomes Review: feedback on CP18/17 and our final rules and guidance’ and CP19/5 ‘Retirement Outcomes Review: Investment pathways and other proposed changes to our rules and guidance’

The FCA published Policy Statement 19/1 ‘Retirement Outcomes Review: feedback on CP18/17 and our final rules and guidance’ (PS19/1) and Consultation Paper 19/5 ‘Retirement Outcomes Review: Investment pathways and other proposed changes to our rules and guidance’ (CP19/5). The closing date for responses to CP19/5 is 5 April 2019. PS19/1 outlines the new rules and guidance on the FCA’s first package of remedies from the Retirement Outcomes Review (ROR) following CP18/17. Detailed changes to the FCA Handbook are set out in the Conduct of Business Sourcebook (Retirement Outcomes Review) Instrument 2019. CP19/5 sets out the FCA’s second proposed package of remedies from the ROR.

Frank Field concerned that cheated British Steel pensioners are being sold short under FSCS

The Work and Pensions Committee published correspondence between its chair, Frank Field MP, the FCA and the FSCS concerning the compensation on offer to British Steel pensioners who were ‘mis-advised’ to transfer their pension savings into unsuitable investments by advice firm Active Wealth. The FCA acknowledges FSCS’ operational independence, but queries the way it calculated compensation to British Steel Pension Scheme (BSPS) members, stating it believes that given the ‘unique and sensitive’ circumstances, FSCS ‘should’ apply its discretionary powers in determining compensation levels.

PIMFA responds to DWP’s pensions dashboard consultation

PIMFA published its response to the Department of Work and Pensions’ (DWP) consultation on Pensions Dashboards: Working together for the consumer. PIMFA broadly agrees with the DWP’s analysis that a pension dashboard can help increase individual awareness of pension information and estimated retirement income, and support the advice process, but believes it is important to be realistic about what the pensions dashboard can and cannot do. In its response, PIMFA gives its view that the utility of the dashboard lies in it being a single point of information from a source disengaged consumers can trust, namely the Single Financial Guidance Body, and that there would be clear risks involved in having more than one dashboard, or dashboards powered by commercial self-interest.


Fintech and virtual currencies


EIB publishes working paper on Blockchain and Fintechs

The European Investment Bank (EIB) published a working paper on blockchain, FinTechs and their relevance for international financial institutions. The working paper is intended to be a primer on financial technology and blockchain and to shed light on the impact they may have on the financial industry. The working paper covers (1) the impact of Fintechs and TechFins on the financial sector (2) blockchain technology and its applications, with a focus on cryptocurrencies (3) the impact on financial inclusion (4) risks and challenges, and (5) applications for international financial institutions and their clients.


Sustainable finance


ICMA launches Green Bond Principles and Social Bond Principles Helpdesk

The International Capital Markets Association (ICMA) announced that it launched a green bond principles (GBP) and social bond principles (SBP) Helpdesk. The aim of the Helpdesk is to offer members informal guidance on questions related to green, social and sustainability bonds specifically relating to the interpretation and application of the principles themselves (and the sustainability bond guidelines (SBG)). ICMA states that the Helpdesk can also help with queries on the other documentation and services that are publicly available on the ICMA’s website including the green, social and sustainability bonds database of issuers who publicly disclosed their external review reports and mapping to the UN sustainable development goals.

IA launches consultation on sustainability and responsible investment

The IA launched the first industry-wide consultation on sustainability and responsible investment. The consultation seeks the views of asset managers on key aspects around sustainability and responsible investment, with the aim of bringing greater clarity to help savers and investors navigate and better access this growing feature of the investment management industry. The consultation will close on 1 March 2019.


Dates for your diary




30—31 January 2019


Retail investments


As part of it’s live and local series the FCA will host its interactive workshop on defined benefit pension transfers on 30 and 31 January 2019 in London.


31 January 2019Enforcement and redress

The Dispute Resolution: Complaints (Authorised Push Payment Fraud) Instrument 2018 (FCA 2018/60) (FOS 2018/5) comes into force on 31 January 2019.


31 January 2019Payment systems and services

The FCA’s final rules extending the jurisdiction of the Financial Ombudsman Service in relation to authorised push payment fraud (and which are set out in PS18/22) will take effect on 31 January 2019.


31 January 2019Sustainable finance

Deadline for response to FCA discussion paper, DP18/8 on the impact of climate change and green finance on financial services is on this date.


31 January 2019Insurance and pensions

The deadline for responses to FCA DP18/9: Fair Pricing in Financial Services is 31 January 2019.


31 January 2019Enforcement and redress

The deadline for responses to the FOS’s consultation on its strategic plans and budget for 2019/2020 is 31 January 2019.


31 January 2019Prudential requirements

The deadline for feedback to the EBA’s Consultation Paper: ‘Draft Implementing Technical Standards amending Commission Implementing Regulation (EU) 2016/2070 with regard to benchmarking of internal models’ is 31 January 2019.


31 January 2019Insurance and pensions

The deadline for responses to the Work and Pensions Committee inquiry into contingent charging is 31 January 2019.


31 January 2019Markets and trading

ISDA launch ISDA Create (which is ISDA’s document negotiation platform) on 31 January 2019.


February 2019Benchmarks

ISDA will publish its RFP process relating to its work on amending the 2006 ISDA Definitions to implement fallbacks for LIBOR and other key interbank offering rates in early February 2019 and interested parties will have approximately four weeks to respond.


February 2019Investment management

According to its administrative timetable the CMA will consult on a Draft Order (following its market investigation of investment consultancy and fiduciary management services) in February 2019.


February 2019Financial crime

The Financial Action Task Force (FATF) will consider a first draft on digital identity guidance (discussed by the FATF at its first plenary meeting) in February 2019.


February 2019Regulatory standards

The FCA is expecting to give feedback on it’s regulatory fees and levies: rates proposals for 2019/20 consultation in February 2019.


February 2019Markets and trading

The next meeting of the SONIA stakeholder advisory group is scheduled for February 2019. Discussion topics will include the impact of Brexit terms and the EU MMF reforms on SONIA.


February 2019Insurance and pensions

The FCA expects to feedback on it’s review of the permitted links rules for insurers in relation to investment in Patient Capital and a discussion paper on Patient Capital investment in authorised funds in February 2019.


February 2019Enforcement and redress

The FCA will publish a fuller account of the findings of its investigation into RBS’ GRG in the first half of February 2019.


February 2019Enforcement and redress

The FCA is due to hold meetings with the British Polling Council and the Market Research Society to discuss the risk posed by the use of private polling data to the integrity of UK financial markets.


1 February 2019Insurance and pensions

The IAIS is holding an event on the global insurance capital standard (ICS) on 1 February 2019. The event will provide members and stakeholders with the opportunity to provide feedback on the ICS prior to the finalisation of ICS Version 2.0 which was published for consultation on 31 July 2018.


1 February 2019Sustainable finance

The deadline for comments to be submitted to the European Commission’s Technical Expert Group on Sustainable Finance in relation to the Group’s first report on companies’ disclosure of climate-related information, is 1 February 2019.


1 February 2019Markets and trading

The deadline for responses to the working group on euro risk-free rates request for market feedback (on its technical analysis of the paths available for transitioning from the euro overnight index average (EONIA) to the euro short-term rate (ESTER), and on its assessment of alternative ESTER-based term structure methodologies that can serve as a fallback for Euro Interbank Offered Rate (EURIBOR) linked contracts) is 1 February 2019.


1 February 2019Markets and trading

ESMA’s restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients, in effect since 1 August, will be renewed from 1 February 2019 for a further three-month period.


1 February 2019Benchmarks

Data dissemination in relation to the calculation of Euribor under the Act/365 and 30/360 day count conventions will continue through the usual distribution vendors until 1 February 2019.


1 February 2019Risk management and controls

The deadline for responses to the FSB’s discussion paper on financial resources to support CCP resolution and on the treatment of CCP equity in resolution is 1 February 2019.


1 February 2019Markets and trading

The publication of the data for the SI calculations for derivatives and other instruments will start on 1 February 2019 as set out in the plan announced by ESMA on 12 July 2018.


1 February 2019Markets and trading

ESMA’s temporary restriction on CFDs in respect of retail clients and prohibition on participation in circumvention activities has been extended and will now continue to 1 February 2019.


1 February 2019Investment funds

The deadline for feedback to the Board of IOSCOs proposed framework to help measure leverage used by investment funds which in some circumstances could pose financial stability risks, is 1 February 2019.


1 February 2019Markets and trading

The deadline for feedback to the IA consultation on the proposed inclusion of exchange traded funds (ETFs) in the IA fund sectors, in recognition of the growing number of ETFs is 1 February 2019.


4 February 2019Benchmarks

Data dissemination in relation to the calculation of Euribor under the Act/365 and 30/360 day count conventions through the usual distribution vendors will cease on 4 February 2019.


4 February 2019Sustainable financeESMA will hold an open hearing at its offices in Paris (between 11.00 and 16.00 Paris time) on 4 February 2019, in relation to the following consultations:
5 February 2019Mortgages and home finance

As part of its live and local series the FCA will host it’s ‘Ask the regulator’ Q&A roundtable discussion with FCA and industry panel on 5 February 2019 in Bristol.


6 February 2019FCA Handbook

The deadline for feedback to FCA CP18/39 is 6 February 2019.


6 February 2019Retail investments

As part of it’s live and local series the FCA will host its interactive workshop on defined benefit pension transfers on 6 February in Newport.


7 February 2019Markets and trading

The deadline for feedback to CP18/37: Product intervention measures for retail binary options and  CP18/38: Restricting contract for difference products sold to retail clients and a discussion of other retail derivative products is 7 February 2019.



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About the author:
Prior to joining LexisNexis in 2018, Raphael carried out work placements at Willkie, Farr & Gallagher (sat in Debt Finance) and Macfarlanes (sat in Banking and Finance), through which he was able to gain knowledge about a wide variety of financial products and services. Raphael recently graduated in Law from King’s College London where he took a particular interest in modules such as Finance, Credit & Security and Transnational Company Law. Raphael has also worked as a Paralegal at Axiom Stone Solicitors in Mayfair, where he was involved in a wide range of contentious matters.