European Commission
SFDR – Commission Delegated Regulation setting out RTS on content and presentation of sustainability-related disclosures published in OJ – 25 July 2022
Commission Delegated Regulation (EU) 2022/1288 supplementing the Sustainable Finance Disclosure Regulation (EU) 2019/2088 (SFDR) with regard to regulatory technical standards (RTS) specifying the content and presentation of financial market participants’ sustainability-related disclosures has been published in the Official Journal of the European Union (OJ). The RTS specify:
- the content and presentation of information on the principle of ‘do no significant harm’;
- the content, methodologies and presentation of information on sustainability indicators and adverse sustainability impacts; and
- content and presentation of information on the promotion of environmental or social characteristics and sustainable investment objectives in pre-contractual documents, on websites and in periodic reports.
The RTS will enter into force on 14 August 2022, and will apply from 1 January 2023.
Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing Regulation (EU) 2019/2088
HM Treasury
UK/US financial regulatory working group meeting – HM Treasury publishes policy paper – 26 July 2022
HM Treasury has published a policy paper following the sixth meeting of the UK/US Financial Regulatory Working Group (Working Group) on 21 July 2022.
The Working Group, which was formed in 2018 to deepen bilateral regulatory cooperation, comprises officials and senior staff from the US Department of the Treasury and HM Treasury, and from the US and UK independent regulatory agencies.
The Working Group meeting focused on seven themes: (1) international and bilateral cooperation, (2) benchmark transition, (3) financial innovation, (4) sustainable finance, (5) non-bank financial intermediation, (6) operational resilience, and (7) cross-border regimes. Among other things, participants discussed the mutual desire to promote multilateral cooperation around risk management in global derivatives markets and regulatory initiatives around the regulation of cryptoassets. On Basel III reforms, participants reaffirmed their commitment to the final prudential standards and reiterated the value of global cooperation in their implementation.
Participants will conduct follow-up work on the above topics and other issues of mutual interest, and will continue to engage bilaterally on these aspects ahead of the next Working Group meeting which is expected to take place later in 2022.
HM Treasury: Policy paper
Webpage
Financial Conduct Authority
Consumer duty – FCA publishes policy statement PS22/9 and guidance – 27 July 2022
The FCA has published a policy statement (PS22/9) setting out its final rules and non-handbook guidance (FG22/5) for its new consumer duty (the Duty). The Duty will set higher and clearer standards of consumer protection across financial services and will require firms to put their customers’ needs first.
The Duty comprises an overarching principle, three “cross-cutting rules” and four specified outcomes. Firms must ensure customers receive communications they can understand, customer support which meets their needs, and products and services which match their needs and are priced to offer fair value.
The Duty does not create a fiduciary duty where one does not already exist, and the FCA has decided against introducing a private right of action for customers following a firm’s failure to comply with the Duty. In an accompanying press release, the FCA observes that the Duty “forms part of the FCA’s transformation to becoming a more assertive and data-led regulator”.
The rules introduced under the Duty will come into force on a phased basis. For new and existing products or services that are open to sale or renewal, the rules come into force on 31 July 2023. For closed products or services, the rules come into force on 31 July 2024.
Policy Statement: A new Consumer Duty - Feedback to CP21/36 and final rules (PS22/9)
Final non-Handbook Guidance for firms on the Consumer Duty (FG22/5)
Handbook Instrument: Consumer Duty Instrument 2022 (FCA 2022/31)
Webpage
Press release
Authorisation – FCA updates webpage to reflect introduction of consumer duty – 28 July 2022
The FCA has updated its webpage on the authorisation process for firms to include a new heading: ‘Consumer Duty’.
Here the FCA explains that, since assessments of firms and individuals are forward looking, any firm or individual applying for authorisation by the FCA will have to demonstrate that they can meet the requirements of the consumer duty from now on. This also applies to a firm or individual applying to vary their permissions. This is in spite of the fact that the consumer duty’s implementation period ends on 31 July 2023 for new and existing products or services that are open to sale or renewal, and on 31 July 2024 for closed products or services.
The FCA published its final rules for its new consumer duty on 27 July 2022, as reported in this Bulletin.
FCA: Updated webpage: Authorisation: what’s involved
Financial Ombudsman Service
Ombudsman News – FOS publishes newsletter – 27 July 2022
The Financial Ombudsman Service (FOS) has published the latest edition of its newsletter ‘Ombudsman News’.
The newsletter highlights the recent appointment of James Dipple-Johnstone as Deputy Chief Ombudsman and Karl Khan as Chief Operating Officer, as well as the publication of new guidance for consumers and businesses on complaints that involve gambling-related harm.
Ombudsman News 173
For Consumers: Complaints that involve gambling-related harm
For Businesses: Complaints that involve gambling-related harm
Law Commission
Digital assets – Law Commission publishes consultation paper on law reform – 28 July 2022
The Law Commission has published a consultation paper containing new proposals to reform the law relating to digital assets, including cryptocurrencies and non-fungible tokens. The Law Commission notes that these reforms are necessary to ensure that such assets are subject to consistent legal recognition and protection, and that they will help achieve the government’s stated goal of the jurisdiction of England and Wales becoming a global hub for digital assets.
The proposals outlined in the consultation paper include:
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the introduction of “data objects” as a third category of personal property in addition to “things in possession” and “things in action”, either at common law or by statutory intervention;
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explicit clarification that the special defence of good faith purchaser for value without notice should apply to crypto-token transactions; and
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clarification of the scope and application of section 53(a)(c) of the Law of Property Act 1925 in respect of certain dealings in specified forms of equitable crypto-token entitlements.
The Law Commission has asked for responses by 4 November 2022.
Law Commission: Consultation paper: Digital assets
Summary
Webpage
Press release
