Regulation Round Up – Finance and Banking

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The Prudential Regulation Authority
(“PRA“) published a statement about its
forthcoming policy statement on implementing the CRD V Directive
((EU) 2019/878).

HM Treasury updated its webpage on a call for
evidence relating to its review of Solvency II for insurance firms.
The deadline for responding to the call for evidence has been
extended to 19 February 2021.

27 November

The Financial Conduct Authority
(“FCA“) has published Handbook Notice 82.

26 November

draft version of the
Financial Services and Markets Act 2000 (Regulated Activities)
(Amendment) Order 2020 was published, together with a draft explanatory

The FCA published a speech by Jonathan
Davidson, FCA Executive Director of Supervision: Retail and
Authorisations, on the business of social purpose.

Commission Implementing Decision
(EU) 2020/1766
 on the temporary equivalence of the
UK’s regulatory framework for central securities depositories
under the Central Securities Depositories Regulation (909/2014)
(“CSDR“) has been published in the
Official Journal of the EU.

25 November

The Financial Markets Law Committee responded to a call for
evidence on UK’s future international regulatory co-operation

The House of Commons European Scrutiny Committee published
its 29th report of the 2019-21

The Bank of England (“BoE“) announced future changes
to firms’ submission of statistical data.

Financial Services Compensation Scheme
(“FSCS“) published its outlook newsletter and
provides an overview of the levy position.

City of London Corporation announced the launch of a
new Taskforce to improve socio-economic diversity in financial and
professional services sectors.

The Bearer Certificates (Collective
Investment Schemes) Regulations 2020 (SI 2020/1346)
published, with an explanatory memorandum.

European Parliament adopted the first reading position on
the proposed
 amending MiFID II Directive (EU/2014/65)
(“MiFID II“).

European Securities and Markets Authority
(“ESMA“) published a public
 (ESMA70-155-8842) on the impact of the end of
the Brexit transition period on the derivatives trading obligation
under Article 28 of the Markets in Financial Instruments Regulation
(EU/600/2014) (“MiFIR“).

24 November

The FCA published a press release in which it
sets out the benefits of RegData, its new data collection

The European Commission and the Financial Services Agency of
Japan published a joint statement on the
second meeting of the joint EU-Japan Regulatory Forum, which took
place on 20 November 2020.

The Asset Management Taskforce published a report on integrating
stewardship into investment process.

23 November

The FCA updated its webpage on the digital
sandbox pilot.

The Financial Stability Board (“FSB“)
published a report on the implications
of climate change for financial stability.

The FCA updated its webpage on the Financial
Services Register to confirm that the directory persons data
submitted by dual-regulated firms under the Senior Managers and
Certification Regime (“SM&CR“) is
now live.

The FCA updated its webpage on its business
interruption insurance test case.

ESMA published a final
 (ESMA70-156-3883) on regulatory technical standards
supplementing the European Market Infrastructure Regulation on
derivatives, central counterparties and trade repositories
(EU/648/2012) (“EMIR“), on the clearing
obligation regarding intragroup transactions, and novations from UK
to EU counterparties.

The FCA published a speech by Richard Monks,
FCA Director of Strategy, on building trust in sustainable

The FCA updated its webpage on reporting
simple, transparent and standardised securitisations.

The Islamic Finance Standards Board
(“IFSB“) published the following sets of
FAQs relating to four of its standards:

20 November

The FCA published a press release announcing
that it, HM Treasury and BoE intend to convene a working group to
facilitate investment in productive finance.

Treasury Committee launched a further inquiry into future of
UK’s financial services post-Brexit.

European Commission published a consultation on the
Delegated Regulation on climate change mitigation and adaptation
under Regulation on the establishment of a framework to facilitate
sustainable investment (EU/2020/852) (“Taxonomy
“). It has also published a press release on the
consultation and updated its webpage on the EU taxonomy
for sustainable activities.

The FCA updated its Q&As about conduct
risk during LIBOR transition.

Commission Delegated Regulation
(EU) 2020/1732
, which supplements Regulation (EU/2017/2402)
(“Securitisation Regulation“) on fees
charged by ESMA to securitisation repositories, was published in
the Official Journal of the EU.

19 November

The FCA published a consultation paper on
proposed policy changes to the way it will raise regulated fees and
levies rates for 2021/22 (CP20/22).

The Financial Ombudsman Service
(“FOS“) published issue 155 of ombudsman

FSCS and Serious Fraud Office agreed on a memorandum of

The FCA published a new webpage for investment
managers, clarifying the process for reporting income for FSCS levy

ESMA published a speech by Verena Ross,
ESMA Executive Director, on future challenges for fund

18 November

The Financial Services and Economic and
Monetary Policy (Consequential Amendments) (EU Exit) Regulations
2020 (SI 2020/1301)
 were published, together with
an explanatory memorandum.

The FSB published its ninth report on the
implementation of its resolution reforms.

The FCA published a press release warning
firms of the need to be responsible when handling client data.

The Committee on Economic and Monetary Affairs published
report on a proposed
Directive amending MiFID II.

17 November

The FSB published a letter to G20 leaders on
ongoing COVID-19 work and future initiatives, a report on financial
stability impact and policy responses, and a report setting out the
findings of its holistic review of the March 2020 market

16 November

The Financial Services (Gibraltar)
(Amendment) (EU Exit) Regulations 2020 (SI
 (2020 Regulations) were published, together
with an explanatory memorandum.

HM Treasury published a statement made jointly
with the FCA and the Prudential Regulation Authority
(“PRA“) on the introduction of the
Investment Firms Prudential Regime (“IFPR”) and the
implementation of Basel standards reflecting the CRR II Regulation
(EU/2019/876) (“CRR II”). Please also refer to the
Proskauer update on this topic.

The Payment Services and Electronic
Money (Amendment) Regulations 2020 (SI 2020/1275)
published, together with an explanatory memorandum.

13 November

The FCA published a statement providing an
update on work that it intends to either stop or postpone in the
light of the ongoing impact of COVID-19 and economic

The PRA and the BoE updated their webpage on their temporary
transitional power to announce the publication of revised versions
of the following guidance documents on their use of the
transitional directions:

  • PRA Rulebook.

  • Capital Requirements Regulation.

  • The Solvency 2 and Insurance
    (Amendment) (EU Exit) Regulations 2018.

  • The Securitisation Regulation.

  • Guidance on the BoE’s use of the
    transitional direction as FMI competent authority.

The FSB published its annual report on the
implementation and effects of the G20 financial regulatory

The PRA published a statement on the
application of its temporary transitional power (TTP) to
legislation relating to the implementation of the CRD V Directive
(EU/2019/878) (“CRD V“) and the Bank
Recovery and Resolution Directive (EU/2014/59)

UK Finance published a white paper on sustainable

ESMA published a press release on the
identification of its EU strategic supervisory priorities for
national competent authorities (NCAs).

The BoE published information on the Climate
Biennial Exploratory Scenario, which it plans to launch in June

12 November

ESMA published a report on the European
Systemic Risk Board’s recommendation on liquidity risk in
investment funds (ESMA34-39-1119).

ESMA published its third annual
 (ESMA34-45-934) on penalties and measures issued
under the UCITS Directive (2009/65/EC) in 2019, and its
first annual
 (ESMA34-32-548) on penalties and measures issued
under the Alternative Investment Fund Managers Directive
(EU/2011/61) (“AIFMD“) in 2018 and

11 November

The FCA updated its webpage on firms’
preparations for the end of the transition period to set out
considerations for EEA firms conducting business in the UK.

The FCA published Primary Market Bulletin 31.

The European Court of Auditors published a report on the Capital
Markets Union (“CMU“).

The UK Government announced its long-awaited
and far-reaching proposed reforms to its existing powers to
scrutinise foreign investment in the UK. Please also refer to the
Proskauer update on this topic.

10 November

The following equivalence directions relating to the equivalence
of EEA member states were published on

ESMA has published an updated:

  • Statement on issues
    affecting reporting under EMIR (648/2012) and the Regulation on
    reporting and transparency of securities financing transactions
    (EU/2015/2365) (“SFTR“)

  • Statement on the use of UK
    data in ESMA databases and performance of MiFID II calculations

  • Statement on ESMA’s
    data operational plan (ESMA65-8-7497).

9 November

HM Treasury Rishi Sunak, Chancellor of the Exchequer, made
statement in the House of
Commons on financial services and a related guidance document was

UK government’s Task Force on Climate-related Financial
Disclosures published an interim
report and a roadmap on mandatory climate-related disclosures.

HM Treasury published a summary of responses, together
with its own responses, to its consultation paper on market access
arrangements for financial services between the UK and

The Financial Services Bill 2019-21 had its second reading in the
House of Commons.

The BoE published a speech by Andrew Bailey,
BoE Governor, about tackling climate change and regulatory

The FCA published a speech by Nikhil Rathi,
FCA Chief Executive, about rising to the climate challenge.

The Council of the EU published a cover note attaching the
European Commission’s staff working document (SWD (2020) 261
final) on its evaluation of the Distance Marketing Directive
(EC/2002/65) (“DMD“).

Both the FCA and PRA published updated
information about the COVID-19 pandemic and workplace

The FSB published a discussion paper on
regulatory and supervisory issues relating to outsourcing and
third-party relationships.

The European Banking Authority (“EBA”) published
press release reminding
financial institutions of the need for readiness in view of the
Brexit transition period ending on 31 December 2020.

ESMA published a consultation
 (ESMA34-39-926) on draft guidelines for funds’
marketing communications under Article 4 of the Regulation on the
cross-border distribution of collective investment undertakings
(EU/2019/1156) (“Cross-Border

ESMA published a decision on MiFIR
assessments of third country trading venues (ESMA70-155-11210).

6 November

The FCA published a new webpage providing links to
dedicated Brexit websites hosted by financial regulators in EEA
member states.

ESMA published a consultation
 (ESMA70-156-2477) on draft guidelines on obligations
relating to market data under the MiFID II and MiFIR.

ESMA published an updated version of

  • its Q&As on investor
    protection and intermediaries (ESMA35-43-349) under MiFID II and
    the MiFIR.

  • its Q&As (ESMA70-145-114,
    version 17) on the Benchmarks Regulation (EU/2016/1011)

  • its Q&As (ESMA74-362-893)
    designed to provide greater clarity to market participants on how
    to comply with their reporting requirements under the SFTR.


ESMA published updated guidance (ESMA70-155-10587) on the Annex to
its opinion determining transparency for third-country trading

5 November

ESMA published a consultation
 (ESMA30-379-325) setting out draft advice to the
European Commission on Article 8 of the Taxonomy Regulation
specifying the content, methodology and presentation of the key
performance indicators that non-financial undertakings and asset
managers are required to disclose.

UK Finance published a document containing
information to assist financial institutions and other firms comply
with UK sanctions legislation both in the UK or overseas.

ESMA published a webpage with official
translations, including the English version (ESMA34-39-992),
of its guidelines on performance fees in UCITS and certain types of
alternative investment funds

The FCA published a policy
 summarising feedback received on its
consultation paper CP20/12 and setting out its decision regarding
the proposed delay to the implementation of the mandatory European
Single Electronic Format requirements for annual financial
reporting under the Transparency Directive.

ESMA published a final
 (ESMA70-156-3729) to the European Commission on
internalised settlement under the Central Securities Depositories
Regulation (909/2014) (CSDR).

Pay.UK published a paper providing an
overview of the UK consumer protection landscape relating to
disputed transactions.

4 November

The EBA published an opinion (EBA/Op/2020/18)
on how prudential supervisors should take money laundering and
terrorist financing risks into account in the supervisory review
and evaluation process (“SREP“).

The FCA published a statement about its
approach to the share trading obligation under MiFIR after the end
of the transition period.

The FCA published a speech given by Jonathan
Davidson, FCA Executive Director of Supervision: Retail and
Authorisations, on the FCA’s expectations around forbearance,
operational challenges and the importance of vulnerability in the
credit market in the light of the COVID-19 pandemic.

FCA started a consultation and draft
guidance to enhance support to consumer credit borrowers.

3 November

The EBA published a discussion
 (EBA/DP/2020/03) (dated 30 October 2020) on
incorporating environmental, social and governance
(“ESG“) risks into the governance, risk
management and supervision of credit institutions and investment

The House of Lords EU Services Sub-Committee published a call for evidence relating
to its ongoing inquiry into financial services after Brexit.

The FCA published a policy statement (PS20/13)
on amendments to the open banking identification requirements
(“eIDAS certificate“). The FCA has also
published a statement about the
changes in PS20/13.

HM Treasury clarified the UK’s approach to the Regulation on
European crowdfunding service providers in a letter.

2 November

The FCA updated its webpage on its business
interruption insurance test case (claim number FL-2020-000018) to
announce that the Supreme Court has granted permission to appeal
the High Court judgment of the test case.

The FCA published a call for input on its
review into change and innovation in the unsecured credit

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