Regulatory Overview – Financial Services

Welcome to the Regulatory Roundup, a regular newsletter highlighting the latest developments in financial services regulation in the UK and EU.

Main developments in September 2022:

September 30

The European Supervisory Authorities have published a joint final report (JC 2022 42) on the draft regulatory technical standards (“RTS”) on the information to be provided in pre-contractual documents, on websites and in periodic reports on the exposure of financial products to investments in fossil gas and nuclear energy activities.

September 29

The Financial Conduct Authority (“CIF“) published a speech by Sheldon Mills, FCA’s Executive Director, Consumers and Competition, on what businesses and customers can expect from the consumer obligation and other regulatory reforms.

September 28

The Bank of England (“BoE“) published a speech by Sir Jon Cunliffe on innovation in post-trade services.

September 27

The European Securities and Markets Authority (“ESMA“) published a report (ESMA70-460-111) following its call for input on the regulation on a pilot scheme for market infrastructures based on distributed ledger technology ((EU) 2022/858).

The FCA has published a speech by Sarah Pritchard, FCA’s Executive Director, Markets, on how regulation can set the stage for economic growth.

September 26

The Prudential Regulation Authority (“ARP“) issued a policy statement (PS8/22) on updates to its prudential rules and expectations relating to the definition of capital.

September 23

ESMA has published an updated Q&A on the EU Market Abuse Regulation (SMA70-145-111), adding two Q&As relating to the disclosure of inside information.

UK Chancellor Kwasi Kwarteng presented the Autumn 2022 Statement (Growth Plan) (CP 743), in which he said the UK government intended to come up with a package of deregulation measures to “liberate the potential of the UK financial services sector”.

ESMA has published its final report (ESMA35-43-3172) and revised guidance on certain aspects of suitability requirements under MiFID II (EU/2014/65) (“MiFID II”). The final guidelines are set out in Annex IV to the report.

September 22

The Retained European Law (Revocation and Reform) Bill 2022-23 (the “Invoice“) has been published with explanatory notes. The bill provides a mechanism for repealing retained EU law by the end of 2023. The text of the bill, as published, states that it will not apply to retained EU law relating to financial services.

The Economic Crime and Corporate Transparency Bill 2022 has been published with explanatory notes. It is effectively the second part of a package of legislation aimed at preventing abuse of UK corporate structures and tackling economic crime.

The European Commission has issued a press release (INF/22/5409) announcing that it has sent letters of formal notice to Member States which have not transposed certain delegated legislation on sustainable finance within the set deadlines.

The Glasgow Financial Alliance for Net Zero has published a report on expectations for plans to transition to the real economy.

September 21

The Commission Delegated Regulation ((EU) 2022/1622) on RTS in emerging markets and advanced economies, which supplements the Capital Requirements Regulation (575/2013) (“CRR“), was published in the Official Journal of the European Union.

The Council of the EU has published the text of the regulation introducing targeted amendments to the CRR relating to the total loss-absorbing capacity (“TLAC“) and the minimum requirement for own funds and eligible liabilities (“MREL“) (PE-CONS 23/22) (2021/0343(COD)).

September 13

The Basel Committee on Banking Supervision (“BCBS“) issued a press release in which it reaffirms its expectations on the implementation of the Basel III framework and outlines its future priorities regarding climate-related financial risks and crypto-assets.

September 12

The Joint Committee of the European Supervisory Authorities (“ESA“) published a report (JC 2022 40) on risks and vulnerabilities in the EU financial system.

September 08

A call for evidence on all aspects of the Financial Services and Markets Bill has been launched by the UK Parliament.

The PRA has published a working paper (DP4/22) setting out its revised approach to policy-making, following its expanded post-Brexit rule-making responsibilities and the reforms identified by the UK Government in the framework of the future revision of the regulatory framework.

September 07

The Financial Services and Markets Bill has had its second reading in the House of Commons.

The Treasury Committee of the House of Commons (the “Committee“) published responses (HC 690) from the UK Treasury, PRA and FCA to the Committee’s report on the future of financial services regulation in the UK.

The FCA has published a speech by Sarah Pritchard, FCA Executive Director, Markets, on current issues for the financial services industry and the FCA itself in the fight against financial crime.

September 05

Commission Delegated Regulation ((EU) 2022/1455) supplementing the Investment Firms Regulation ((EU) 2019/2033) (“IFR“) concerning the RTS on fixed overhead requirements, was published in the Official Journal of the European Union.

The FCA has published a portfolio letter on its oversight strategy for trade repositories and securitization repositories.

ESMA has published an updated version of its Q&A on transparency topics (ESMA70-872942901-35) under MiFID II and the Markets in Financial Instruments Regulation (EU/600/2014 ) (“MiFIR“).

September 02

FCA has released its latest quarterly consultation document (CP22/17), seeking comments on various changes to the FCA Handbook.

September 01

The FCA has updated its webpage which explains how to cancel a temporary authorization if a company is under the temporary authorizations regime or the supervised liquidation regime.

Regulatory overview

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.


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