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FCA Updates Webpage on SFTR Approach to Reporting Requirements

On March 26, the UK’s Financial Conduct Authority (FCA) updated its webpage on the Securities Financing Transactions Regulation (SFTR) to confirm its approach to supervisory reporting in the light of COVID-19.

The FCA acknowledged the European Securities and Markets Authority’s (ESMA) updated statement of March 26, 2020, which addressed the challenges firms are facing to meet their reporting requirements under the SFTR before April 13, 2020. ESMA set out the following provisions in its statement:

  • EU financial regulators (EUFRs) should not prioritize supervisory activity towards firms’ compliance with the SFTR reporting obligation between April 13, 2020 and July 13, 2020;

  • EU financial regulators (EUFRs) should not prioritize supervisory activity towards firms reporting securities financing transactions (SFTs) under the Markets in Financial Instruments Regulation (MiFIR) when their counterparty is a member of the European System of Central Banks; and

  • ESMA confirmed it will not prioritize trade repository registration ahead of April 13, 2020, but it will ensure TRs are registered before July 13, 2020.

The FCA supports the above statements made by ESMA and wishes firms to focus their resources on critical functions during this period. In addition, the FCA will not prioritize supervision relating to the reporting of SFTs for firms to which the backloading requirement specified in Article 4(1)(a) of SFTR applies.

The updated FCA webpage is available here.

The ESMA statement is available here.

©2020 Katten Muchin Rosenman LLP

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John Ahern, Financial Attorney, London, Katten Law Firm
Partner

John Ahern, partner at Katten Muchin Rosenman UK LLP and head of the London Financial Services group, focuses his practice on banking, financial services, UK and European financial markets, and related regulations. His background in private practice and as in-house counsel at a global investment bank provides him with perspective on the unique regulatory issues facing the wholesale and private banking sectors. John advises multilateral trading facilities, broker-dealers and banks on trading, clearing and settlement as well as custody of securities—both physical and...

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Carolyn H. Jackson, International Attorney, Katten Muchin law firm
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Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws and regulations. 

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Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

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Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

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