Financial Regulation Weekly Bulletin - 17 December 2020

Click on the headings below to access each section:

General

• Non-bank financial intermediation – FSB publishes its 2020 global monitoring report
• UK financial stability – Report published by the Bank of England with Financial Policy Summary and FPC meeting record
• Cybersecurity – European Commission presents new strategy and proposes revised NIS Directive and Directive on resilience of critical entities
• Free trade agreements with Singapore and Vietnam – Signed by the UK
• SMCR – PRA publishes evaluation report
• New appointments at the FCA – Executive Director, Consumers and Competition and Chief People Officer
• Plans and budget for 2021/22 – FOS published consultation

Brexit

• Overseas framework – HM Government publishes call for evidence on the UK’s framework for cross border financial services
• Greenhouse gas emissions – HM Government publishes SI amending the UK Emissions Trading Scheme
• Banking Act 2009 – HM Treasury publishes revised special resolution regime code of practice
• UK MiFIR – FCA updates supervisory statement on transparency regime operation at end of Brexit transition period
• Third country CSD recognition – ESMA to recognise Euroclear UK & Ireland Limited after Brexit transition period
• ESMA systems – ESMA publishes a reminder of plans for the end of the Brexit transition period

Banking and Finance

• Specialised lending exposures under the CRR – Commission adopts Delegated Regulation
• COVID-19 and NPLs – European Commission publishes action plan
• Use of IRB Approach under the CRR – EBA publishes Opinion on Commission’s version of draft RTS
• Basel III - EBA updates Basel III impact study following European Commission’s call for advice
• COVID-19 and dividends – EBA urges banks to remain conservative regarding dividends
• BRRD – EBA publishes final report on RTS to ensure effective application of stay powers under the BRRD
• IFD and IFR – EBA publishes final report on draft RTS
• CRR – EBA publishes report on EU banks’ compliance with liquidity measures
• CRR II - Capitalisation of NMRFs – EBA publishes final draft technical standards on capital requirements of NMRFs under the FRTB
• COVID-19 and dividends – ECB urges banks to further delay or limit dividends until September 2021
• Resolution of small and medium-sized banks – ECA publishes report
• Single Resolution Board – Final valuation data set published
• Capital distributions by large banks – PRA publishes statement
• Supervision – PRA publishes Dear CEO letters on its 2021 supervisory priorities for UK deposit takers and international banks
• Dual-regulated firms Remuneration Code – FCA publishes Policy Statement PS20/16 and Guidance
• Card-acquiring services – PSR updates on merchant survey disclosure in market review
• Mastercard Incorporated and others (Appellants) v Walter Hugh Merricks CBE (Respondent) [2020] UKSC 51, 11 December 2020

Securities and Markets

• MiFID II reporting requirements – European Commission adopts Delegated Regulation on thresholds for weekly position reporting
• Prospectus Regulation – Commission publishes final version of Delegated Regulation
• COVID-19 and MiFID II – Council of EU invites COREPER to approve final compromise text of proposals to amend MiFID II Directive
• Recovery and resolution of CCPs – Council of EU publishes text of proposed Regulation
• MiFIR – Implementing Decision regarding the equivalence of Singapore published in the Official Journal
• Market share of credit rating agencies – ESMA publishes annual calculation for EU-registered CRAs
• Euro risk-free rates – ESMA Chair, Steven Maijoor, delivers speech at third roundtable on euro risk-free rates
• MMF Regulation – ESMA updates stress test guidance
• COVID-19 – ESMA renews decision lowering reporting threshold for net short position holders and EFTA adopts corresponding decision
• EMIR Refit – ESMA publishes draft technical standards under EMIR Refit
• CRR - Collective investment undertakings – EBA consults on technical standards to calculate risk weights
• IFD - Remuneration and internal governance – EBA launches consultations on new guidelines
• Short Selling Regulation – HM Treasury proposes changes to notification thresholds
• FCA Consultation Paper (CP20/24): A new UK prudential regime for MiFID investment firms

Asset Management

• AIFMD – ESMA publishes final report on guidelines addressing leverage risks

Insurance                                                       

• COVID-19 – IAIS publishes its 2020 global insurance market report
• Climate change – EIOPA publishes sensitivity analysis of climate-change related transition risks
• Solvency II – EIOPA submits its opinion on the Solvency II review to the European Commission
• Solvency II – PRA updates webpage on its expectations for the work of external auditors on the matching adjustment
• Supervision – PRA publishes Dear CEO letter on its 2021 insurance supervisory priorities
• COVID-19 – FCA launches consultation to assist parties in proving presence of COVID-19 in business interruption insurance claims
• ESG – Lloyd’s of London publishes its first report
• Pensions Dashboard Programme – Key data standards published

Financial Crime

• COVID-19 – FATF publishes update on money laundering and terrorist financing risks
• EBA Regulation – EBA publishes report on risk assessment methodology
• Strengthening connections between the AML/TF and deposit protection frameworks – EBA publishes Opinion
• Money laundering and terrorist financing – HM Treasury and Home Office national risk assessment 2020
• Money laundering regime – FCA announces temporary registration regime for cryptoasset businesses

Enforcement

• IDD – EIOPA publishes report on NCA administrative sanctions
• London Capital & Finance plc – HM Treasury publishes report on independent investigation and FCA publishes response
• Final notice – FCA fines bank £26 million over treatment of customers in financial difficulty
• Final notice – FCA fines and prohibits hedge fund Chief Investment Officer for market abuse