Financial Regulation Weekly Bulletin - 7 January 2021

Click on the headings below to access each section:

General

• Regulation of crypto-assets and DLT – discussed by House of Commons European Scrutiny Committee
• Cryptoassets – HM Treasury publishes consultation paper on UK regulatory approach
• COVID-19 and the application of the SMCR and Approved Persons Regime – FCA clarifies expectations
• FCA Policy statement: Proposals to enhance climate-related disclosures by listed issuers and clarification of existing disclosure obligations (PS20/17)
• COVID-19 – FCA publishes financial resilience survey data

Beyond Brexit

• Brexit trade deal reached – UK Parliament passes legislation implementing the Trade and Cooperation Agreement between the UK and EU
• The Short Selling (Notification Thresholds) Regulations 2021 – new statutory instrument laid before Parliament
• The Bank of England’s amendments under the European Union (Withdrawal) Act 2018: Changes before the end of the transition period (PS30/20)
• Gibraltar passporting – PRA and FCA publish new websites
• CRD IV and CRR reporting and disclosure requirements after Brexit – FCA publishes guidance
• Final Brexit instruments and Temporary Transitional Power directions – published by the FCA
• Brexit transition period ends – FCA announces regulatory change for firms as Brexit transition period ends
• UK derivatives trading obligation – FCA publishes statement on use of the Temporary Transitional Power to modify obligation
• Memoranda of Understanding come into effect – MoUs between the FCA and European authorities on securities, insurance and pensions, and banking
• End of Brexit transition period: Lloyd’s updates its Market Bulletin
• Managing the failure of cross border banks - SRB and the Bank enter into cooperation agreement
• UK-based CRAs and TRs – ESMA withdraws the registration of six UK-based CRAs and four TRs
• CDS memorandum of understanding – ESMA publishes MoU related to its monitoring of the ongoing compliance with recognition conditions by UK CSDs
• CCP memorandum of understanding – ESMA publishes MoU setting out arrangements for cooperation with the Bank of England on the monitoring and supervision of UK CCPs

Banking and Finance

• Supervisory Guidance on managing FX settlement risk and the Global FX Code – Letter published by BIS
• Supervisory reporting under CRR – European Commission adopts Implementing Regulation
• CRR – RTS on deduction of software assets published – 22 December 2020
• Benchmarking of internal models – EBA publishes Consultation Paper
• Calibration of O-SII buffer rates – EBA publishes report
• Application of simplified obligations and waivers in recovery and resolution planning – EBA publishes report
• BRRD – EBA publishes final reports with draft RTS and ITS on the impracticability of contractual recognition, MREL reporting and the estimation of Pillar 2 and combined buffer requirements for setting MREL
• Implementation of selected COVID-19 policies – EBA publishes report
• Permission regime for the reduction of eligible liabilities – SRB issues update
• Digital euro – ECB publishes letter to European Parliament members
• Proposed insolvency changes for payment and electronic money institutions – HM Treasury publishes supplementary annex to consultation with summary of rules
• Debt Respite Scheme – The Insolvency Service publishes guidance for creditors
• Reviews of ring-fencing and proprietary trading activities - Letter to Treasury Committee
• Review of MREL – Discussion Paper and statement on MREL and resolvability deadlines published by the Bank of England
• BRRD II – PRA publishes Policy Statement PS28/20
• CRD V implementation - PRA publishes Policy Statement PS29/20
• Prudential treatment of software assets – PRA publishes statement on EU requirement
• LIBOR transition – Paper on credit adjustment spread methods for active transition published by Working Group
• COVID-19 – Pay.UK publishes report on impact on current account switching behaviours

Securities and Markets

• EMIR - European Commission adopts Delegated Regulations on clearing obligation and risk mitigation
• COVID-19 – ESRB calls for extreme caution regarding distributions and issues revised Recommendation
• MiFID II - ESMA consults on the impact of algorithmic trading
• Cloud outsourcing guidelines - ESMA publishes final report
• MAR – ESMA publishes report on administrative and criminal sanctions and on accepted market practices
• Reporting under Articles 4 and 12 SFTR – ESMA publishes Guidelines
• EMIR – ESMA updates Q&As
• Costs and charges under MiFID II – ESMA updates Q&A
• MiFIR updated opinion - ESMA updates guidance on waivers from pre-trade transparency
• Fines and penalties for data reporting services providers – ESMA launches consultation
• Fines and penalties for benchmark administrators – ESMA launches consultation
• Central counterparties – ESMA and CFTC sign enhanced MoU
• CSDR Settlement Fails Penalties Framework - ECSDA publishes updated version
• Notifications and disclosure of net short positions – FCA updates webpage
• COVID-19 – ISDA publishes paper on CCP risk management frameworks
• Authenticating global notes – FMLC publishes paper on the use of electronic signatures
• REMIT – Ofgem publishes direction exempting market participants from registration with Ofgem

Asset Management

• Educating retail investors on the risks of cryptoassets - IOSCO publishes report
• Exchange-Traded Funds – IOSCO publishes questionnaire
• Impact of COVID-19 on retail market conduct - IOSCO publishes preliminary findings in a report
• UCITS – ESMA launches Common Supervisory Action with NCAs on supervision of costs and fees

Insurance

• Cyber Risk Underwriting – IAIS publishes report on challenges and supervisory considerations for sustainable market development
• COVID-19 and ORSA – EIOPA publishes consultation
• Solvency II – PRA publishes Consultation Paper 1/21 on DLT assessments and SONIA transition

Financial Crime

• Statutory Instrument: Parliament passes the Counter-Terrorism (Sanctions) (Overseas Territories) Order 2020

Enforcement

• Due diligence failings by fund operator - FCA issues Final Notice
• Safeguarding and compliance failures – FCA fines UK firm £8.96 million
• Suspected anti-competitive arrangements in the financial services sector – CMA updates timetable