General

Issue FR1196 / 2 March 2023

Council of the European Union

Financial services contracts concluded at a distance - Council of European Union agrees negotiating mandate and publishes note - 2 March 2023

The Council of the European Union (the Council) has published a statement announcing that it has agreed its negotiating position with the European Parliament on the proposed Directive on financial services contracts concluded at a distance. The proposed Directive will repeal the Distance Marketing Directive (2002/65/EC) and transfer its contents to the Consumer Rights Directive (2011/83/EU). The Council has also published a note from the Permanent Representatives Committee (COREPER) to the Council, dated 24 February 2023, setting out the text of the general approach endorsed by COREPER.

Press release

Note from the Permanent Representatives Committee

Financial Conduct Authority

Regulatory Initiatives Grid - FCA publishes sixth edition - 28 February 2023

The FCA has published the sixth edition of the Regulatory Initiatives Grid (the Grid), which sets out the regulatory pipeline of the PRA, the FCA, the Payment Systems Regulator and the Competition and Markets Authority over the next 24 months. As with previous editions, the Grid focuses on regulatory initiatives that are likely to have the most significant operational impact on financial services firms and other stakeholders.

The publication of this edition was delayed from November 2022 to allow the regulators to consider the impact of the Edinburgh Reforms on the regulatory pipeline and initiatives.

The next edition is scheduled for publication at the end of 2023. The FCA will, however, provide a short statement after the Financial Services and Markets Bill receives Royal Asset, informing the sector of any important and imminent changes.

FSRIF Regulatory Initiatives Grid

FCA webpage

Bank of England webpage

Dashboard webpage

ClientEarth

Prospectus disclosures on climate risk - ClientEarth seeks judicial review of FCA decision - 21 February 2023

The environmental NGO, ClientEarth, has published a statement announcing its application to the High Court for permission to apply for judicial review of the FCA’s decision to approve the prospectus of UK oil and gas company Ithaca Energy plc (Ithaca), in November 2022. Prior to this date, ClientEarth wrote to the FCA twice to raise concerns about inadequate disclosures of climate-related risks in Ithaca’s prospectus.

ClientEarth argues that the FCA acted unlawfully by approving Ithaca’s prospectus. Although Ithaca’s prospectus acknowledges that climate change presents risks to the oil and gas industry in general, ClientEarth maintain that Ithaca does not appear to explain how these risks affect its business specifically, or how significant these risks are for the company. According to ClientEarth, the FCA’s failure to spot this omission is “particularly problematic” given the company’s intention to develop new fossil fuel assets, including the Cambo oil and gas field in the Rosebank field.

The High Court must now decide whether to grant permission to bring the claim.

ClientEarth press release