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Volume XI, Number 62


March 03, 2021

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Regulation Round Up: September 2020

The Prudential Regulation Authority (“PRA”) published a statement announcing that it intends to terminate, with effect from 30 September 2020, the temporary approach to value-at-risk (VAR) back-testing exceptions it announced in March 2020 in the light of the COVID-19 pandemic.

The Financial Markets Law Committee published a letter it has sent to the European Commission responding to the action plan for a comprehensive EU policy on preventing money laundering and terrorist financing.

The European Securities and Markets Authority (“ESMA”) published a statement announcing that it intends to update the 2019 guidelines on stress test scenarios produced under the Money Market Funds Regulation ((EU) 2017/1131) (“MMF Regulation”) to include a modification of the risk parameters to reflect recent market developments relating to the COVID-19 pandemic.

The Financial Conduct Authority (“FCA”) published issue 64 of Market Watch, its newsletter on market conduct and transaction reporting issues.

26 August

The Financial Ombudsman Service (“FOS”) published issue 153 of ombudsman news, which focuses on providing a summary of the themes it has seen in complaints resulting from COVID-19.

The PRA published a statement to clarify its approach to International Financial Reporting Standard 9 (“IFRS 9”) and regulatory capital requirements.

The FCA updated its COVID-19 webpage to announce that it has launched a joint survey with the Bank of England (“BoE”) to review liquidity mismatch in open-ended funds.

The FCA published a guidance consultation setting out additional guidance for mortgage firms in the light of the COVID-19 pandemic.

25 August

The Financial Stability Board (“FSB”) published a key attributes assessment methodology for the insurance sector (“Insurance KAAM”).

24 August

The FCA published a consultation paper (CP20/17) on extending its annual financial crime reporting obligation (referred to as "REP-CRIM").

The Commission Delegated Regulation (EU) 2020/1212, which amends Delegated Regulation (EU) 2018/1229 supplementing the Central Securities Depositories Regulation (909/2014) (“CSDR”) with regard to regulatory technical standards (“RTS”) on settlement discipline, was published in the Official Journal of the EU.

21 August

The Bank for International Settlements published a speech by Benoît Cœuré, Head of the BIS Innovation Hub, emphasising that RegTech and FinTech are high on the BIS' agenda and discussing the potential benefits and challenges they pose for regulatory authorities and financial institutions.

20 August

The FCA published its Regulation round-up newsletter for August 2020, which includes a section commenting on firms' approach to disclosure during the COVID-19 pandemic.

The FCA updated and restructured its webpage on the temporary permissions regime (“TPR”), covering the following related topics:

19 August

The Joint Money Laundering Steering Group published a press release announcing it has received HM Treasury ministerial approval for the final guidance it published in June and July 2020 on anti-money laundering and counter-terrorist financing guidance.

The EBA published its response to the European Commission's anti-money laundering and counter-terrorist financing action plan, together with a covering letter (EBA-2020-D-3187) from José Manual Campa, EBA Chair, to Valdis Dombrovskis, Commission Executive Vice-President.

ESMA published a letter (ESMA34-32-550) it has sent to the European Commission, highlighting the areas where it considers improvements could be made under the Commission's review of the Alternative Investment Fund Managers Directive (2011/61/EU) (“AIFMD”). Please also see our update on this topic.

The FCA published its 30th Primary Market Bulletin, which covers Prospectus Regulation and FCA Knowledge Base.

14 August

The PRA published a new webpage on the fourth meeting of the Climate Financial Risk Forum (“CFRF”), which it hosts jointly with the FCA.

The European Banking Authority (“EBA”) published a revised work programme for 

2020 (EBA/REP/2020/22), which it has amended to reflect the projects it has postponed due to the COVID-19 pandemic.

The FSB published a questionnaire on the continuity of access to financial market infrastructures (“FMIs”) for firms in resolution.

13 August

The FCA published a new webpage on conduct rules reporting for solo-regulated firms under the Senior Managers and Certification Regime (“SM&CR”).

 12 August

The Financial Markets Law Committee published a letter sent to the Ministry of Justice, responding to the July 2020 consultation on proposals to extend the power in section 6 of the European Union (Withdrawal) Act 2018 for courts and tribunals to depart from retained EU case law after the end of the Brexit transition period.

The FCA published a Dear CEO letter it has sent in the light of the COVID-19 pandemic relating to the increase in levels of client money held by firms providing non-discretionary investment services.

The EBA published a consultation paper (EBA/CP/2020/21) on guidelines on criteria for the use of data inputs in the risk-measurement model referred to in Article 325bc under Article 325bh(3) of the Capital Requirements Regulation (EU/575/2013) (“CRR”).

The EBA launched an industry survey on RegTech, publishing the following:

The Wolfsberg Group published a statement on developing an effective anti-money laundering and counter-terrorist financing programme and a document on how financial institutions can identify, mitigate and manage money laundering risks by undertaking source of wealth and source of funds checks.

11 August

The European Commission sets deadline for comments on draft Regulation amending BMR.

The FCA published a feedback statement on updating guidance to help customers who hold insurance and premium finance products and who are in temporary financial difficulty because of the COVID-19 pandemic (FS20/13).

The European Central Bank published a report on banks' internal capital adequacy assessment process (“ICAAP”) practices.

The PRA published a Dear CEO letter (dated 31 July 2020) sent from Mel Beaman, PRA Director, UK Deposit Takers, to the CEOs of non-systemic building societies.

The Financial Markets Law Committee published a letter sent from Joanna Perkins, FMLC Chief Executive, to HM Treasury, responding to the June 2020 consultation on transposing the BRRD II Directive ((EU) 2019/879).

HM Treasury published a letter to Parliamentary Committee on EU crowdfunding service provider proposals.

The International Organization of Securities Commissions published a final report (FR07/2020) on liquidity provision in the secondary markets for equity securities.

10 August

The EBA published the following documents, which relate to COVID-19 related amendments to CRR made by Regulation (EU) 2020/873 (“Quick Fix Regulation”):

7 August

The FCA updated its policy development update webpage the FCA updated webpage, which sets out information on recent and future FCA publications.

The EBA updates report (EBA/REP/2020/23) on implementation of selected COVID-19 policies to include FAQs.

The European Parliament published on its website an answer from the European Commission confirms no right to refuse access to basic bank accounts based on location of consumer within the EU.

6 August

The BoE published the Financial Stability Report and FPC financial policy summary and record for August 2020.

The Competition and Markets Authority announced that it has revoked directions that it gave to HSBC in April 2019 to ensure compliance with certain provisions of the Retail Banking Market Investigation Order 2017.

The Basel Committee on Banking Supervision (“BCBS”) launched consultations proposing new principles for operational resilience (BCBS509) and revisions to its principles for the sound management of operational risk (“PMSOR”) (BCBS508).

HM Treasury published the “Anti-money laundering and counter-terrorist financing: Supervision report, 2018-2019”.

The Payment Systems Regulator (“PSR”) published a document in which Genevieve Marjoribanks, PSR Head of Policy, sets out how the PSR wants to see improvements relating to reimbursing the victims of authorised push payment scams.

The FCA published concerns when lenders allow repeat borrowing.

5 August

The Lending Standards Board published an update on how its Standards of Lending Practice for Business Customers and the related Information for Practitioners apply to products offered under the government's Bounce Bank Loan Scheme  and the Coronavirus Business Interruption Loans Scheme.

4 August

The PRA published a policy statement on Financial Services Compensation Scheme (“FSCS”) temporary high balances coverage extension.

The FCA published a statement about data provision under the Civil Liability Act 2018.

The PSR published a document in which Genevieve Marjoribanks, PSR Head of Policy, sets out the PSR's views on driving innovation and competition in real-time payments.

3 August

The EBA published its final report on final draft ITS on disclosure and reporting of the minimum requirement for own funds and eligible liabilities (“MREL”) and the total loss absorbency requirement (“TLAC”) (EBA/ITS/2020/06). The Annexes to the ITS are available on the press release accompanying the report.

The FCA published a consultation paper on updating its Dual-regulated firms Remuneration Code to reflect the CRD V Directive (CP20/14).

The FCA published a consultation paper on liquidity mismatch in authorised open-ended property funds (CP20/15).

The FCA published a speech given by Edwin Schooling Latter, FCA Director of Markets and Wholesale Policy, on 15 July 2020, on the critical tasks ahead in the second half of 2020 relating to LIBOR transition.

© 2020 Proskauer Rose LLP. National Law Review, Volume X, Number 246



About this Author

Amar Unadkat Corporate Lawyer Proskauer Rose Law Firm

Amar Unadkat is an associate in the Corporate Department and a member of the Private Funds Group.

Amar advises on a variety of regulatory issues including AIFMD, PSD II and MiFID II, both in the UK and at European level.

His clients include investment fund managers, FinTech companies, wealth management businesses, crowdfunding businesses (including P2P lending platforms), banks and funds seeking to market to investors

Andrew Wingfield Corporate Lawyer with Proskauer in London, UK

Andrew Wingfield is a partner in the Corporate Department and a member of our Private Equity Mergers & Acquisitions Group. As businesses globally are impacted by the Coronavirus (COVID-19) pandemic, Andrew is a member of the firm’s Coronavirus Response Team helping clients respond and solve issues across myriad fronts.

Andrew undertakes a broad range of domestic and cross-border corporate and commercial work for both corporate and private equity clients, advising on acquisitions and disposals, joint ventures, mergers and public takeovers,...

Jade-Alexandra Fearns Antitrust and competition Lawyer Proskauer London, England
Special Antitrust & Regulatory Counsel

Jade-Alexandra focuses her practice on antitrust and competition law along with international sanctions and other regulatory and compliance related advice across a number of sectors including financial services and banking, sports, automotive, media, manufacturing, consumer goods and telecommunications. She is recommended in the Legal 500 for the following practice areas: EU and Competition; Trade, WTO Anti-Dumping and Customs; and Sport. According to Legal 500, "competition expert Jade-Alexandra Fearns is … recommended for [sports related] regulatory and disciplinary matters."


John Verwey, UK, European Level, Finance, Attorney, Proskauer Rose Law Firm
Special Regulatory Counsel

John Verwey is a special regulatory counsel in the Corporate Department and a member of the Private Investment Funds Group.

John advises on a wide number of regulatory issues at a national UK and European level, including firm authorisations, change in control, market abuse, Electronic Money Regulations, Payment Services Regulations and client money rules. He represents a variety of clients that range from private equity firms and insurance intermediaries to global investment banks and sovereign wealth funds. 

A particular area of focus for John is the implementation of...

Kirsten Lapham FInancial Services Attorney Proskauer Rose Law Firm, United Kingdom

Kirsten Lapham is a partner specialising in financial services regulation. She advises a broad range of both institutional and individual clients on a variety of financial services regulatory and compliance issues. Her practice has a specific emphasis on the regulatory issues arising under the AIFMD, and MiFID II for a range of EU and indirectly impacted firms outside of the EU.

Experience in this area includes advising multiple clients on the EU marketing and registration regimes and overlaying local regulatory considerations, such as the U.K. retail distribution...