Financial Services Update – Q3 2020

Financial Services Update – Q3 2020


As part of our sector-focused series, we have curated the key resources and points you need to know from this quarter’s legal updates. Understand the key articles, news stories, practice notes, timelines and upcoming webinars specific to the Financial Services sector.


The new prudential regime for investment firms: key points from the latest UK developments

Financial Services analysis: Partners Ash Saluja and Sam Robinson, Senior Associate Tom Callaby and Associates Yasmin Johal and Maggie Lund of CMS discuss the recent statements and discussion paper from the UK government, HM Treasury and Financial Conduct Authority (FCA) on the UK’s approach to the new prudential regime for investment firms due to come into force in the UK from Summer 2021. Read more…

The new prudential regime for investment firms: prudential consolidation and issues for groups

Financial Services analysis: Ash Saluja, Financial Services partner, Tom Callaby, senior associate, and Yasmin Johal and Maggie Lund, associates of CMS discuss the new prudential regime for investment firms, prudential consolidation and how this is expected to work in the UK post-Brexit. Read more…

AIFMD review—ESMA goes after delegation structures

Financial Services analysis: Samuel Brooks, partner at Macfarlanes considers the European Securities and Markets Authority’s (ESMA) letter on 18 August 2020 to the European Commission setting out several recommendations ahead of the Commission’s impending review of the Alternative Investment Fund Managers Directive. Read more…

Treasury consults on fin proms approval ‘gateway’

Financial Services analysis: Legal Director Emma Radmore of Womble Bond Dickinson discusses the recent consultations from the HM Treasury on the approval of financial promotions and promotion of cryptoassets. Read more…

ESG for fund managers—legislative drivers, sustainability frameworks and practical points

Financial Services analysis: Kate Binedell, partner, and Chris Ormond, associate director—knowledge development lawyer, at Bryan Cave Leighton Paisner discuss environment, social and governance (ESG) for fund managers, including legislation, frameworks and practical issues. Read more…


5 key news stories


FCA consults on approach to international firms doing business in the UK


Financial Services analysis: Brian McDonnell, Partner at McDonnell Ellis LLP, analyses the recent FCA consultation paper (CP20/20) on the FCA’s general approach to international firms doing business in the UK. Read More...

FCA publishes amended Handbook showing post-transition-period rules and sets out how it will use TTP


The Financial Conduct Authority (FCA) has published an updated version of the FCA Handbook to show the rules that will apply at the end of the Brexit transition period. It has also provided details on how it intends to use the temporary transitional power (TTP) and has published revised drafts of its transitional directions, along with revised annexes and a draft explanatory note highlighting the changes made since the previous versions. Read more...

FCA reminds firms of client asset obligations as end of Brexit transition period approaches


The Financial Conduct Authority (FCA) has updated its webpage on considerations for UK firms in the context of Brexit as the end of the transition period approaches, to add a new section on client money and custody assets. The FCA reminds firms that they are required to carry out periodic due diligence reviews on third parties holding client money and/or custody assets, and outlines the actions firms should be taking to prepare for the end of the transition period. Read more...

BoE/PRA webpage on TTP


The Bank of England (BoE) and the Prudential Regulation Authority (PRA) have published a webpage on the temporary transitional power (TTP), bringing together information on what the TTP can apply to, the BoE and the PRA’s general approach, what happens when the TTP applies, exceptions, the interaction between the TTP and equivalence decisions and equivalence direction, and the duration of transitional relief. Read more...

FCA issues finalised guidance on cancellations and refunds


The Financial Conduct Authority (FCA) has published Finalised guidance: Cancellations and refunds: helping consumers with rights and routes to refunds. This guidance is aimed at credit and debit card providers and insurance providers. It is designed to ensure that these firms handle enquiries and claims from consumers in a way that minimises inconvenience to the consumer. The guidance will also be of interest to consumer organisations. It will be effective from 2 October 2020 to 2 April 2021. 


Covid-19 toolkit & blog


Organisations, irrespective of their business type, sector or size, have found themselves in uncharted water with the onset of coronavirus (COVID-19).

There are many common areas of concern for organisations at this challenging time. This Covid-19 toolkit has been created to provide in-house lawyers or legal advisers with easy access to news, practical guidance and Q&As from across a number of Lexis®PSL Practice Areas (subject to subscription) that relate to these key areas of concern.

In addition to coronavirus-specific content, this toolkit also highlights additional guidance and support materials of general relevance to each of these areas.

In-house lawyers at financial institutions may find the following resources particularly helpful:

Not a subscriber to Lexis®PSL? See the free resources and information on our Covid-19 blog. Get an overview of our online financial services products here, or sign-up for a free trial of our Lexis®PSL product here.


Brexit focus - Commercial and practical help


To help you cut through the noise, here are a couple of resources giving you the need-to-know information:

1. Brexit toolkit

Our Brexit toolkit draws together Brexit content for the practice areas that are relevant for you.

Brexit toolkit

2. Brexit - Statutory Instruments (SI) tracker

This tracker lists all Brexit-related financial services statutory instruments (SIs), together with explanatory memoranda and other information for each SI, as well as links to primary sources.

Brexit—Financial Services—Statutory Instruments (SI) tracker.


Click here for a free trial of our Brexit Toolkit.


Keeping up to date


Each day we survey the market for the latest key developments in financial services, both here in the UK, in the EU and internationally.  We then prepare an intraday alert for our customers setting out the developments that have been published that day.  In addition we have a rundown of all stories covered in our product the previous day in our daily alert email which is curated into topics and reaches customer’s inboxes at 6am each morning.  At the end of the week, we publish a weekly highlights bulletin summarising all of the financial services news developments that have happened that week.

Given this current awareness process, LexisPSL Financial Services is a key tool for helping you keep up to date.  From our chronological timelines to our comprehensive essentials notes, we have you covered. 

We also want to keep you up to date with future dates so you know what is coming down the pipeline.  To do this see our LexisPSL Financial Services horizon scanner which includes future dates tracking across a number of topics up to 2023.  See the below examples of key content to help you keep up to date: :

Key dates for Financial Services—horizon scanner


Weekly highlights




Not a subscriber to Lexis®PSL?  For a free trial click here.


Useful LexisPSL Financial Services resources


Lexis®PSL Financial Services—getting started guide

New and updated Financial Services content

Financial Services Precedents

Financial Services resources in Lexis®Library

Lexis®PSL Financial Services blog

Financial Services—Meet the Experts


Additional toolkits:

Funds Toolkit

MiFID II and MiFIR—toolkit

Market Abuse Regulation—toolkit

Regulated Activities Toolkit

Timelines—financial services

A series of 30 chronological timelines monitoring the latest developments on:

(i) key EU financial services Regulations and Directives ie the creation of Level 1 texts, implementation of Level 2 (ITS/RTS), Level 3 (guidelines) and national implementation where applicable,

(ii) UK financial services regulation,

(iii) Brexit,

(iv) US-related financial services legislation (offering a summary of the legislation and its impact in various jurisdictions), and

(iv) timelines on other significant developments and regulatory regimes which impact financial services firms.The timelines are updated by our team wihin 24 hours of a development occurring.  Hot topics covered in this format include Brexit, COVID-19, MiFID II, MAR, EMIR, AIFMD, UCITS, PRIIPS, Benchmarks Regulation, MLD5, sustainable finance.

Essentials Practice Notes—financial services

The Financial Services team's Essentials guides are a series of Practice Notes containing comprehensive overviews of key topics and/or EU Regulations and Directives covering all major points of interest and recent developments.

The Essentials Practice Notes serve as 'feeder notes' to further LexisPSL practical guidance and news content.

One minute guides—financial services

The Financial Services team's One minute guides are a series of Practice Notes containing a quick guide to key topics and/or EU Regulations and Directives. They are intended to get the reader up to speed quickly.


Get connected…


LexTalk®Financial Services: a Lexis®PSL community
Collaborate and network with a community of expert lawyers

LexTalk® is an online community forum which gives Lexis®PSL subscribers the opportunity to post questions, hold conversations, participate in discussions and share best practice. It has been designed to provide a secure place for legal professionals to discuss legal developments, offer and receive peer support, and gain a sense of up to date market practice and advances in real-time. You can access and post questions on all of the dedicated practice area forums, including a dedicated community for Lexis®PSL Financial Services.

Click here to sign up and meet like-minded community members, create a profile, connect, share, and start participating today! Alternatively, you can access LexTalk® on the key resources tab on your Practice Area home page.



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About the author:
Melanie is a financial services lawyer and heads up the LexisPSL Financial Services team at LexisNexis UK.  The LexisPSL Financial Services module covers all of the latest developments in financial services regulation and is a key resource for financial services lawyers. Melanie previously worked in private practice at DLA Piper UK LLP and Orrick Herrington & Sutcliffe LLP and in-house at Morgan Stanley.