Financial Services Sector Update – Q4 2019

Financial Services Sector Update – Q4 2019

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


Comment—Financial services firms revive push for a better post-Brexit sector deal


MLex: Banks, asset managers and insurers are hoping that a renewed effort to avoid what they complain is a patchy, politically driven regime for access to EU markets after Brexit will this time be successful. Given the choice between an equivalence regime and nothing, they may well opt for the latter—and they may have the leverage to make it work.

Banks, asset managers and insurers are hoping that a renewed effort to avoid what they complain is a patchy, politically driven regime for access to EU markets after Brexit will this time be successful.

Read more…


5 key news stories


1.  FCA director discusses the future of financial services regulation

The executive director of international at the FCA, Nausicaa Delfas, gave a speech at the UK Financial Services Industry Beyond Brexit Summit in London on the future of financial services regulation in the UK. Delfas said that the FCA will continue to work closely with its EU counterparts after Brexit and that it will continue its activity in support of the development of sound international standards, rooted in strong regulatory co-operation.

For further information, see: LNB News 29/10/2019 25.


2.  Brexit Bulletin―EU agrees to extend Article 50 withdrawal period until 31 January 2020

On 28 October 2019, the EU27 Ambassadors reconvened to consider the UK’s request to extend the Article 50 withdrawal period until 31 January 2020. Following extended talks, European Council President Donald Tusk announced the EU27’s provisional approval for an extension until 31 January 2020. According to the announcement, the extension will be granted on flexible terms, so that the extended withdrawal period lasts only as long as necessary, and no longer than 31 January 2020. The terms are to be finalised using the written procedure while MPs turn their attention to an early general election. Kieran Laird, partner at Gowling WLG, looks at the implications.

For further information, see: LNB News 28/10/2019 37.


3.  FCA guidance on Brexit delay: TPR notification date extended

The Financial Conduct Authority (FCA) published a statement entitled ‘UK’s exit from the EU delayed’. It notes that the EU and the UK agreed to extend the date for the UK’s departure from the EU and therefore firms do not need to act to implement Brexit contingency plans for 31 October 2019. The FCA is extending the date by which firms and funds should notify it for entry into the temporary permissions regime (TPR) to 30 January 2020. Fund managers will have until 15 January 2020 to inform the FCA if they want to make changes to their existing notification.

For further information, see: LNB News 30/10/2019 26.


4.  FCA sets out liquidity management expectations for authorised fund managers

The head of the asset management department at the Financial Conduct Authority (FCA), Nick Miller, has written 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.

For further information, see: LNB News 04/11/2019 32.


5.  PRA Dear CEO letter on importance of regulatory returns

The Prudential Regulation Authority (PRA) has 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.

For further information, see: LNB News 01/11/2019 37.



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. Continental Shift: No-deal Brexit and the law

We have published a report on the repercussions of a no-deal Brexit, drawing from interviews with legal professionals:

Continental Shift: No-deal Brexit and the law


2. Brexit toolkit

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

Brexit toolkit

Brexit legislation tracker


3. 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.


Keeping up to date


Key dates you need to know, publications and announcements relating to legal issues in Financial Services.

Click to view individual timelines in the following topic areas:

Financial Services—timelines


Useful resources


Lexis®PSL Financial Services—getting started guide

Key content types in the Lexis®PSL Financial Services module.


Essentials Practice Notes—financial services

Practice notes give you information you need to hit the ground running on a new topic, or double-check to know the latest information in a area where law may have changed. Practice notes give you the practical guidance and reassurance that you are up-to-date and have covered everything you need to.

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.




Sign-up to upcoming and view on demand:


Financial services: issues and trends for in-house lawyers (2019)

27th November 2019 12:30pm GMT

  • The differences between front book and back book trades as part of an IBOR transition strategy
  • What legal teams need to be doing now in preparation for IBOR
  • Remediation strategies available to market participants
  • IBOR transition risks - considerations for legal teams


Banking and Financial Services

This year is set to be another year of great developments and challenges in banking and financial services practice and our diverse 2019 programme has been designed with this in mind to give practitioners all the knowledge and tools they will need to succeed.

The new EU Securitisation Regulation is our first webinar of the year, discussing the new regulatory framework for securitisations that came live at the turn of the year. Other topics of note include an overview of key developments in fintech, and an evaluation of the new Prospectus Regulation towards the end of the year. We will also be running a number of 10 minute ‘Brief’ webinars on banking and finance topics in throughout 2019 – be sure to keep your eyes peeled for those!



Get connected…


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

LexTalk® is a new 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.



Financial Services sector blog


In addition to reading this post, you can keep up to date with our Financial Services content via the sector-specific blog, including signing up for email newsletters. This page includes the latest legal and regulatory changes with insight and analysis from leading experts.

Financial Services blog

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About the author:

Amy is an established writer and researcher, having contributed to publications, such as The Law Society, LPM, City A.M. and Financial IT. Her role at LexisNexis UK involved leading content and thought leadership, as well as writing research reports, including "The Bellwether Report 2020, Covid-19: The next chapter" and "Are medium-sized firms the change-makers in legal?"