UK: Financial Regulatory Developments (FReD) - 12 October 2012

EUROPEAN UNION AND INTERNATIONAL

Presidency of the European Union (Presidency)

Presidency tables new MAR compromises: The Presidency has published new compromise texts for the Directive on Criminal Sanctions for Insider Dealing and Market Manipulation (CMAD) and the Market Abuse Regulation (MAR). (Source: Presidency Compromise Text on CMAD 5 October and Presidency Compromise Text on MAR 4 October)

Contact: Rosali Pretorius or Emma Radmore.

Presidency publishes more MiFID 2 compromises: The Presidency has published a further set of compromise texts for the proposals for a Markets in Financial Instruments Directive (MiFID 2) and Regulation (MiFIR). The amendments relate to the market-making obligation for algorithmic traders and the flagging of their trades. (Source: MiFID 2 Compromise Text 9 October and MiFIR Compromise Text 9 October)

Contact: Rosali Pretorius or Emma Radmore.

European Commission (Commission)

Commission consults on NBFI resolution: The Commission has published an informal consultation on a recovery and resolution framework for non-bank financial institutions (NBFI). The paper looks at which NBFIs could present systemic risks if they fail. Its concerns and proposals focus on the risks that failure of key parts of the financial markets infrastructure, specifically Central Counterparties (CCPs) and Central Securities Depositories (CSDs), would present. It analyses the risks of each, commenting that not all institutions face the same risks. The paper asks whether an EU-wide framework to deal with the recovery and resolution of CCPs and CSDs is needed and asks for views on situations where either recovery plans or retrospective resolution might be appropriate. Other questions focus on whether there should be a common framework or one specific to each type of market participant, whether there should be size thresholds above which the rules would apply, the most important objectives of the plans and trigger points. It also considers powers of regulators and cross-border challenges. The consultation then considers the risks presented by failure of insurers and reinsurers and notes that existing EU measures for the insurance market do not cater for recovery and resolution of insurance entities. Again, it asks what powers should be used, and when, to deal with a systemically important insurer. Finally, it considers payment systems, payment institutions and e-money issuers and asks what powers would be appropriate to deal with systemic risk arising from failure in this, or any other NBFI, sector. Comments are due by 28 December. (Source: Commission Consults on NBFI Resolution)

Contact: Rosali Pretorius or Andrew Barber.

CRA equivalence decisions in OJ: The Commission implementing decisions to recognise the equivalence of the US's and Australia's legal and supervisory framework for credit rating agencies (CRAs) have now been published in the Official Journal of the EU (OJ). The draft decision for Canada is also available. (Source: Decision on Equivalence of US's CRAs Supervision, Draft Decision on Equivalence of Canada's CRAs Supervision and Decision on Equivalence of Australia's CRAs Supervision)  

Contact: Edward Hickman or Rosali Pretorius.

Commission says FTT to go ahead: The Commission has announced it has received commitments from 11 Member States (not including the UK) to support a common financial transaction tax (FTT) for their jurisdictions. The FTT initiative can now progress via enhanced cooperation of the participating Member States. Algirdas Semeta, the Commissioner responsible for taxation, views the FTT as a means to encourage more responsible trading and to prevent a patchwork of national bank taxes. He will submit the proposal to the Council of the EU in November, and the participating Member States will have to agree to it by unanimity. (Source: Statement by Commissioner Semeta and Press Release Council Meeting 9 October) 

Contact: Rosali Pretorius or Jeremy Cape.

Short selling RTS published in OJ: The Commission's regulatory technical standards (RTS) for the regulation on short selling and certain aspects of credit default swaps, adopted on 5 July, have now been published in the OJ. They will apply from 1 November. One deals with the method of calculation of the fall in value of liquid shares and other financial instruments. The other covers definitions, the calculation of net short positions, covered sovereign credit default swaps, notification thresholds, liquidity thresholds for suspending restrictions, significant falls in the value of financial instruments and adverse events. (Source: Commission Delegated Regulation No 918/2012 -OJEU 9 October and Commission Delegated Regulation No 919/2012 -OJEU 9 October)

Contact: Rosali Pretorius or Matthew Sapte.

European Parliament (EP)

ECON adopts CMAD and MAR reports: On 9 October, the Economic and Monetary Affairs Committee (ECON) in EP adopted its CMAD and MAR reports. The rapporteur, Arlene McCarthy, explained that ECON wants to ensure that maximum jail sentences across Member States are at least five years for the more serious offences. They also want sanctions to be made public and fraudsters to be named. All trading venues must adopt procedures for preventing abusive practices, and exchange of information between countries should be mandatory. (Source: Market Abusers Should Face Jail, Say Economic Affairs MEPs)

Contact: Rosali Pretorius or Emma Radmore.

ECON tables MiFID 2 reports for plenary: ECON has published the reports by Markus Ferber on the Commission's proposals for MiFID 2 and MiFIR in preparation for EP's plenary session on 25 and 26 October (see also FReD 28 September). (Source: Ferber Report on MiFID 2 and Ferber Report on MiFIR)

Contact: Rosali Pretorius or Emma Radmore.

EP updates voting dates: EP has announced new voting dates on its legislative observatory (OEIL):

• the vote in plenary of the own-initiative procedure "Towards an integrated European market for card, internet and mobile payments" will be on 19 November 2012; and 
• the Committee vote on the regulation on improving securities settlement in the EU and central securities depositories (CSDs) will be on 21 January 2013.

(Source: OEIL File for Card, E- and M-Payments INI and OEIL File for CSDs Regulation)

Contact: Emma Radmore or Juan Jose Manchado.

European Economic and Social Committee (EESC)

EESC publishes CSD opinion: EESC has published its opinion on the proposed Regulation on improving securities settlement and on central securities depositories (CSDs). It supports the prohibition on CSDs holding a banking licence, only allowing them to set up a standalone bank under group ownership. It also welcomes the uniform T+2 settlement requirement. Concerning the target of completing the dematerialisation of tradable securities by 2020, EESC says there is a need for political compromise given the uneven progress made by different Member States. (Source: Opinion of the EESC on the CSD Regulation)

Contact: Rosali Pretorius or Matthew Sapte.

European Securities and Markets Authority (ESMA)

ESMA updates short selling Q&A: ESMA has updated its short selling Q&A in relation to the duration adjustment issue for calculating net short positions in sovereign debt, and to the calculation and reporting for the specific situation of group and fund management activities. (Source: ESMA Updates Short Selling Q&A)

Contact: Rosali Pretorius or Matthew Sapte.

European Banking Authority (EBA)

EBA Stakeholder Group warns of liquidity rules dangers: EBA's Banking Stakeholder Group has published a position paper on the new bank liquidity rules to be introduced in the Capital Requirements Regulation (CRR). The report looks at the Net Stable Funding Requirement and the Liquidity Coverage Ratio (LCR). It then focuses on the expected impact and scope for calibration of the LCR, as it will be implemented first. The definition of eligible liquid assets for the purposes of building up the liquidity buffer must be wide enough to promote investment in sovereign debt, corporate bonds and asset-backed securities. The paper also discusses the assumptions underpinning the calculation of potential cash outflows during the distressed scenario against which the LCR is to act as backstop. It warns that changes in these assumptions may cause shifts of funds across business lines and have undesirable consequences. (Source: New Bank Liquidity Rules: Dangers Ahead)

Contact: Edward Hickman or Rosali Pretorius.

EBA publishes 2013 work programme: EBA's 2013 annual programme includes the following objectives and deliverables:

• development of the European single rule book, related in particular to the new Directive and Regulation on Capital Requirements (CRD4 and CRR) and the coordinated use of crisis prevention and resolution arrangements;
• oversight of key risks in the EU banking sector, including the consistent application of risk weights when calculating capital requirements, the sustainability of business models and the convergence of practices and cooperation when supervising cross-border groups. EBA also plans new EU-wide stress tests for 2013, and the implementation of the common reporting framework; and
• enhancing consumer protection through guidelines on responsible mortgage lending and arrears handling, and regulatory technical standards on professional indemnity insurance.

(Source: Work Programme 2013)

Contact: Emma Radmore or Juan Jose Manchado.

European Insurance and Occupational Pensions Authority (EIOPA)

EIOPA wants clarity on Solvency 2 implementation: Gabriel Bernardino, Chairman of EIOPA, has written to Michel Barnier, Commissioner for Internal Market and Services, expressing concerns of national insurance supervisors about the delay on implementing Solvency 2. The letter highlights the weaknesses in the current regime and warns that, without a robust supervisory system at European level, national solutions will emerge to ensure sound supervision. Mr. Bernardino asks for a credible implementation timetable, including the early entry into force of some elements of Solvency 2. (Source: Letter on Solvency 2 Timetable)

Contact: Emma Radmore or Juan Jose Manchado.

EIOPA publishes work programmes: EIOPA has published its annual work programme for 2013 and its multi-annual work programme covering 2013-2014. The focus will be on supervisory and regulatory convergence, consumer protection and EIOPA's role in financial stability and crisis management. (Source: EIOPA Work Programme 2013 and Multiannual Work Programme 2013-2014)

Contact: Emma Radmore or Juan Jose Manchado.

UK GOVERNMENT AND PARLIAMENT

Parliament

Parliament publishes more FS Bill amendments: Parliament has published further amendments to the Financial Services Bill (FS Bill) to be discussed during the continued Committee stage in the House of Lords. The Committee stage re-started on 8 October, when it discussed the transferability of retail banking accounts, and is scheduled to run for at least the rest of the month. (Source: Parliament Publishes More FS Bill Amendments, Lords Committee Day Six and Transcript of Discussions) 

Contact: Emma Radmore or Juan Jose Manchado.

Legislation

Government makes Short Selling Regulations: Treasury has made the Regulations that implement parts of the EU Short Selling Regulation (SSR) into UK law. The changes take effect from 1 November and repeal parts of the Financial Services and Markets Act 2000 that are not compatible with the SSR. The Regulations reflect the powers of FSA and ESMA as set out in the SSR. (Source: Financial Services and Markets Act 2000 (Short Selling) Regulations 2012)

Contact: Rosali Pretorius or Matthew Sapte.

HM Treasury (Treasury)

Treasury announces new use for fines: Treasury has announced that, with effect from 1 April 2012, moneys from fines received from firms will be used first to pay the costs of enforcement and will then go to the Exchequer. It says £35 million of LIBOR-related fines will go to benefit the armed forces. This reflects new powers under the FS Bill. (Source: Treasury Announces New Use for Fines)

Contact: Felicity Ewing or Katharine Harle.

Treasury updates sanctions: Treasury has updated the sanctions lists in respect of Al-Qaida. (Source: Treasury Updates Sanctions)

Contact: Emma Radmore or Andrew Barber.

Serious Fraud Office (SFO)

SFO updates Bribery Act guidance: SFO has updated key parts of its guidance on the Bribery Act:

• facilitation payments: SFO stresses that these payments have always been, and still are, illegal, regardless of their frequency and size. Payments are a bribe if they are paid to facilitate, or speed up, performance of existing duties;
• hospitality: SFO reminds businesses that bona fide hospitality and promotional and other legitimate business expenditure are a recognised and important way of doing business. However, sometimes bribes can be disguised as legitimate business expenditure; and
• FAQs: SFO has published a set of questions addressing the changes it has made. In principle, its policy has not changed since the guidance it published when the Bribery Act took effect – the only significant change to its guidance has been to remove a reference to an outdated guide to reporting.

Whether SFO would prosecute under the Bribery Act or under proceeds of crime legislation depends on whether a prosecution would be in the public interest as set out in existing prosecutorial guidelines. (Source: SFO Updates Bribery Act Guidance)

Contact: Emma Radmore or Andrew Barber.

FINANCIAL SERVICES AND MARKETS REGULATOR

Financial Services Authority (FSA)

FSA publishes new Market Watch: The latest edition of FSA's Market Watch newsletter looks at:

• ex-dividend dates and the market abuse regime. FSA is worried that some issuers may not be considering whether information about ex-dividend dates is inside information in relation to a related investment. As a result, they may give out this information on an ad hoc basis before releasing it to the market; and
• finalised guidance for strategy trades, which became effective from 15 August. The guidance focuses on FSA's reporting requirements where two or more legs of exchange-traded strategy trades which are dependent on each other are executed simultaneously.

(Source: Market Watch Newsletter 43)

Contact: Rosali Pretorius or Matthew Sapte.

FSA publishes quarterly consultation: In FSA's latest quarterly consultation on minor changes to the FSA Handbook, it is consulting on:

• changes to the Conduct of Business Sourcebook (COBS) and Glossary in respect of the Retail Distribution Review (RDR) exemption for some, but not all, Holloway sickness policies;
• changes to the Senior Management Systems and Controls Sourcebook (SYSC) to make the rules on voiding and recovery in Chapter 19A consistent with how FSA applies the remuneration principles proportionality rule;
• changes mainly to SYSC to reflect the revised Basel Core Principles in respect of transactions with related parties; 
• updates to the Training and Competence Sourcebook (TC) in respect of appropriate qualifications;
• changes to the RDR adviser charging and remuneration rules in relation to referrals to discretionary investment managers (DIMs). FSA says the amendments are intended to clarify that adviser firms should not be remunerated by, or receive commissions, remuneration or benefit of any kind from, DIMs for referrals to the DIM, or for any other activity the adviser firm may perform for a client in relation to its investments being managed on a discretionary basis;
• changes to COBS to clarify that a cost-neutral approach is not prohibited for new business in a with-profit fund;
• changes to various parts of the Handbook to make necessary clarifications and deal with out-of-date references;
• changes to the Enforcement Guide (EG) and Decision Procedure and Penalties manual (DEPP) to introduce investigation and enforcement powers for financial and non-financial counterparties under the Regulation on OTC Derivatives, CCPs and Trade Repositories (the European Market Infrastructure Regulation or EMIR) and the EMIR statutory instrument, which Treasury plans to make. FSA says only minor changes to its Handbook will be necessary to implement EMIR. FSA also plans changes to the Recognised Investment Exchanges and Recognised Clearing Houses Sourcebook (REC) to set out how parts of the current regime will interact with EMIR and EMIR SI. FSA wants to make these changes in early 2013, to coincide with the new UK regulatory structure taking effect; and
• changes to the Listing Rules (LR) for depositaries issuing global depositary receipts and the appointment of a sponsor for the submission of supplementary circulars.

FSA asks for comments by 5 November for around half the proposals, and 5 December for the others. (Source: Quarterly Consultation Number 34)

Contact: Emma Radmore or Juan Jose Manchado.

FSA publishes COLL waiver: FSA has published a waiver by consent that will allow authorised funds to make appropriate transfers between the capital and income accounts of funds. FSA says the waiver will facilitate conversions by unitholders. The waiver will be effective until 5 October 2013. (Source: FSA Publishes COLL Waiver)

Contact: Jim Baird or Rosali Pretorius.

FSA speaks on challenges for the PRA: Andrew Bailey has spoken on future challenges from the perspective of the Prudential Regulation Authority (PRA). He spoke on PRA's objectives and the challenges of allowing failing firms to fail, while protecting the financial infrastructure. (Source: FSA Speaks on Challenges for the PRA)

Contact: Rosali Pretorius or Andrew Barber.

FSA updates PSR approach document: FSA has made further changes to the approach document on its role under the Payment Services Regulations (PSR). They include, amongst others, clarifications on authorisation, financial crime controls, passporting and conduct of business, which were consulted upon earlier in the year. They also update on the registration process for those applying to become small payment institutions, and on the procedure to revoke a recurring transaction on a payment card. (Source: The FSA's Role Under the Payment Services Regulations Our Approach)

Contact: Andrew Barber or Emma Radmore.

Financial Ombudsman Service (FOS)

FOS publishes ombudsman news: In the latest issue of 'ombudsman news', Natalie Ceeney, FOS's chief executive and chief ombudsman, dismisses the argument that society is in the grip of "compensation culture", observing that the rate of upheld complaints is stable. She suggests that financial businesses may try to deflect responsibility, when they are to blame for the prominence that the claims management sector has gained. The bulletin then goes on to report on travel insurance cases and second quarter statistics. (Source: Ombudsman News Issue 105)

Contact: Emma Radmore or Andrew Barber.

OTHER REGULATORS/AUTHORITIES/INDUSTRY ASSOCIATIONS

Association for Financial Markets in Europe (AFME)

AFME backs NBFI resolution plans: AFME has responded to Treasury's consultation on extending the financial sector resolution regime to non-banks. It supports all aspects of the extension, including covering investment firms. (Source: AFME Backs NBFI Resolution Plans)

Contact: Rosali Pretorius or Andrew Barber.

Association of Independent Financial Advisers (AIFA)

AIFA responds on cash rebates and platforms: AIFA has responded to FSA's consultation on payments to platform providers and cash rebates from providers to consumers. It supports changes to improve transparency, but does not agree that cash rebates were "hiding" charges. It says the rebates worked well for consumers and providers. It also points out that, whatever the final rules are in respect of advised sales, the rules in respect of non-advised sales should be consistent. (Source: AIFA Responds on Cash Rebates and Platforms)

Contact: Emma Radmore or Andrew Barber.

Bank for International Settlements (BIS) / Basel Committee on Banking Supervision (Basel Committee)

Basel Committee publishes Basel 3 implementation report: The Basel Committee has published the results of its assessment of the Committee's members' progress in adopting rules domestically to implement Basel 3. (Source: Progress Report on Basel III implementation)

Contact: Rosali Pretorius or Emma Radmore.

City of London Law Society (CLLS)

CLLS cautions on NBFI resolution: CLLS's response to Treasury's consultation on extending the regime for recovery and resolution of non-financial institutions cautions against extending the net unnecessarily wide. It gives several reasons for this, including:

• the existence of strong insolvency laws;
• the cost of the regime; and
• the risk of needing to make further changes to comply with EU measures.

(Source: CLLS Cautions on NBFI Resolution)

Contact: Rosali Pretorius or Andrew Barber.

Insurance Europe

Insurance Europe wants proportionate and flexible IMD2: Insurance Europe says the EU must ensure that the proposals for change to the Insurance Mediation Directive (IMD2) must be flexible and proportionate. Its key messages are:

• IMD2 should not extend to insurers or to non-mediation activities;
• conflicts and remuneration policies should be designed with customer interests in mind and be risk-based;
• consumers should have access to non-advised sales;
• regulators must take care not to over-regulate or duplicate (particularly bearing in mind insurance Packaged Retail Investment Products (PRIPs); and
• there must be a consistent approach to regulation across financial products in respect of cross-selling practices.

(Source: Insurance Europe Wants Proportionate and Flexible IMD2)

Contact: Emma Radmore or Andrew Barber.

International Organisation of Securities Commissions (IOSCO)

IOSCO publishes oil agency principles: IOSCO has published a set of principles for oil price reporting agencies. The principles aim to promote the quality and integrity of oil price assessments and so make oil derivatives contracts that reference them more reliable. (Source: IOSCO Publishes Oil Agency Principles)

Contact: Rosali Pretorius or Mark Cheney.

IOSCO adopts MMF recommendations: As part of the Financial Stability Board's work plan on shadow banking, IOSCO has published its final report with policy recommendations for money market funds (MMFs). The report analyses the systemic risk MMFs pose and makes 15 recommendations, amongst them:

• limitations to the types of assets in which MMFs may invest, diversification ratios and limits to asset-liability mismatches;
• the use of the fair value principle when valuing, restricting the use of the amortised cost method to instruments with low residual maturity; 
• holding of a minimum amount of liquid assets to face redemptions and prevent fire sales;
• MMFs' ability to use tools such as temporary suspensions, gates and/or redemptions in kind, in order to manage a run on the fund;
• conversion to variable NAV or safeguards to reinforce constant NAV MMFs' resilience;
• avoidance of mechanistic reliance on external ratings, to reduce herding and "cliff effects"; and
• strengthening the framework applicable to the use of repo by MMFs.

(Source: IOSCO Policy Recommendations for Money Market Funds)

Contact: Jim Baird or Rosali Pretorius.

IOSCO holds first new Board meeting: IOSCO has held the first meeting of its new Board, whose creation was announced at IOSCO's annual conference in May 2012. It replaces the Technical and Executive Committees and Emerging Markets Committee Advisory Board. (Source: Board Decisions on Further Global Regulatory Reform and Strengthening IOSCO)

Contact: Emma Radmore or Juan Jose Manchado.

IOSCO publishes responses on margin for non-CCP-cleared derivatives: The responses to the IOSCO and Basel Committee July report on margin requirements for non-centrally-cleared derivatives are now available. (Source: Responses on Margin for Non-CCP-Cleared Derivatives)

Contact: Rosali Pretorius or Edward Hickman.

Law Society of England and Wales (Law Society)

Law Society responds on sanctions for directors of failed banks: In its response to Treasury's consultation on sanctions for directors of failed banks, the Law Society says that some of the measures undermine fundamental and well-established principles of justice, and pose significant practical difficulties. (Source: Law Society Responds on Sanctions for Directors of Failed Banks)

Contact: Rosali Pretorius or Katharine Harle.

FORTHCOMING EVENTS

NEW: Managing the Consequences of the AIFMD Level 2 Directive: Infoline is hosting a conference on Managing the Consequences of the AIFM Directive Level 2 Implementation Measures on 12 and 13 December in Central London. Rosali Pretorius will be leading the workshop session on the Operational Implications of the AIFMD and her involvement allows us to extend their early bird discount to our clients and contacts. If you are interested in attending please quote FKM62454EMSPK to receive a 20% discount.

Save the date! FReD Live and Investment Funds briefings: Our next FReD Live breakfast briefing will take place on 27 November, and our next Investment Funds briefing on 21 November.

RECENT PUBLICATIONS

New This Week:

RDR: How Long Can it Last?: Emma Radmore and Andrew Barber have written an article for Compliance Monitor on the future of the Retail Distribution Review.

Financial Crime

Dealing with Anti-Corruption Laws – the Bribery Act and FCPA in Context: This article summarises the effects of the Bribery Act and US Foreign Corrupt Practices Act. For further information, please contact Emma Radmore or Dominic Sedghi (London), or Michelle Shapiro (New York).

New EU Sanctions Expand Restrictions on Iran: Michael Zolandz, Peter Feldman, Stuart Cavet and Emma Radmore have written an update on the new EU sanctions against Iran.

Testing your ABC – the Bribery Act Six Months on: Emma Radmore  and Dominic Sedghi have updated our previous suite of articles on Bribery Act implementation.

Financial Crime Podcast: Emma Radmore joined Finance IQ to discuss the FSA's Financial Crime Guide and issues associated with cutting financial crime.

Compiling the Pieces: The FSA's Financial Crime Guide: Emma Radmore wrote an article for Compliance Monitor on FSA's new draft Financial Crime Guide.

Bribery and Sanctions presentation: Our UK and US offices gave a seminar on dealing with bribery and sanctions risks. Please check our website for up to date summaries of key sanctions regimes.

Investment Services and Markets Reform

What's next for LIBOR? Summary of the Wheatley Review Recommendations: We have written a summary of the Wheatley 10-point plan for the reform of the LIBOR process.

Rate Setting and Regulation: In Everyone's Interests?: Rosali Pretorius, Madeleine de Remusat and Katharine Harle wrote an article for Financial Regulation International on the background to LIBOR setting and potential regulatory action.

Treasury Publishes LIBOR Consultation: We have written a summary of the initial report and consultation of the Wheatley Review of LIBOR.

Money through your mobile – regulation of m-payments: Andrew Barber and Emma Radmore have written an article for Compliance Monitor on the regulatory aspects of mobile payments.

Bank Notes March 2012: The latest edition of our Bank Notes newsletter includes two articles by Rosali Pretorius and Emma Radmore.

The Battle for Control of the Mobile Wallet: Alex Haffner and Ingrid Silver have written an article on the Project Oscar initiative to make mobile payments across networks easier.

Treasury presents FS Bill: We have produced a separate summary of the FS Bill and accompanying documents. For more information, please contact Rosali Pretorius or Emma Radmore.

MiFID 2 – Prescription and Change: Emma Radmore wrote an article for Compliance Monitor on the breadth of the proposals to amend the Markets in Financial Instruments Directive (MiFID 2).

I'm a commodity dealer – get me out of here!: Rosali Pretorius and Matthew Hodgson have written an article (published in two parts on Thomson Reuters Compliance Complete) on the effects of the MiFID II proposals on commodity dealers.

The Son of MiFID: Rosali Pretorius, Josie Day and Emma Radmore have written an article looking at the major impacts of the potential changes to the Markets in Financial Instruments Directive (MiFID) on hedge funds.

Prudential Regulation

UK Treasury Publishes Banking Structure Reform Plans: This article summarises the June 2012 White Paper on implementation of structural change to UK banking (as covered in FReD 15 June). For more information, please contact Rosali Pretorius, Emma Radmore or Andrew Barber.

EU Living Wills Plans – the Key Proposals: This article is the latest in our suite of articles about Living Wills and Recovery and Resolution Plans looks at the European Commission's proposals. For further information, please contact Rosali Pretorius or Andrew Barber.

Living Wills update: We have produced an update on FSA's current plans for Recovery and Resolution Plans. For further information, please contact Rosali Pretorius or Andrew Barber.

Reform of Financial Services and Banking 2012: Rosali Pretorius and Emma Radmore look forward to some of the key changes facing UK-regulated financial institutions in 2012.

Financial Stability Board Identifies 29 Global SIFIs and Announces Agreed Policy Measures: We have written an article exploring the FSB announcements and policies endorsed at the November G20 Summit. For further information, please contact Jerome Walker (US) or Rosali Pretorius (UK).

Living Wills in the US and UK: We have written an article on the current US and UK laws and proposals on living wills. For more information contact Robert Bostrom or Jerome Walker (US) or Rosali Pretorius, Emma Radmore or Andrew Barber (UK).

What the Vickers Report means to you: Rosali Pretorius and Emma Radmore have written a note on the major impacts of the Vickers Report.

Recovery and Resolution Plans – Breaking up the banks by stealth: Rosali Pretorius has written an article on FSA's proposals for Recovery and Resolution Plans.

Asset Management

AIFMD's Impact on Private Equity Funds: If you were unable to attend our briefing on an update on AIFMD implementation, critical issues and remuneration provisions, you can now watch the lecture. For further information please contact Rosali Pretorius, Richard Nicolle or Josie Day.

AIFMD Level 2: Josie Day and Emma Radmore have written an article for Compliance Monitor on ESMA's consultations on Level 2 measures and industry response.

Outsourcing for Fund Managers: Rosali Pretorius and Amanda Lewis have written a guide to key success factors for outsourcing in fund management.

Product Regulation

More Protection for Retail Markets – the EU's PRIPs Package: We have written a detailed summary of the PRIPS, IMD2 and UCITS V proposals.

SEC No Action Letter on Foreign-Issued Covered Bond: Thomas Parachini has written a briefing on the US SEC no-action letter in respect of the Royal Bank of Canada's plan to offer and sell covered bonds in the United States in a public offering registered on SEC Form F-3.

Another Stable Door?: Emma Radmore and Katharine Harle wrote an article for Thomson Reuters Complinet on IOSCO's proposals for complex product distribution.

Product Bans – A Radical New Power: Katharine Harle has written an article for Thomson Reuters Complinet on FSA's powers to ban products.

FSA's Product Design Consultations: Emma Radmore has written an article for Thomson Reuters Complinet on FSA's latest consultations on product design.

Product Intervention: Hitting the Wrong Note?: Emma Radmore and Rosali Pretorius wrote an article for Thomson Reuters Accelus on industry and FSA's responses to proposals for Product Intervention.

The Future for PRIPs: Rosali Pretorius and Emma Radmore have written an article for Compliance Monitor on current proposals affecting Packaged Retail Investment Products.

Enforcement and Litigation

The Not So Remote Risks of Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the case of Rubenstein v. HSBC Bank plc.

The Long Arm of FSA: Overseas Firms and Senior Management Beware: Emma Radmore and Katharine Harle have written an article for Compliance Monitor on the lessons from recent FSA enforcement cases involving overseas firms and their approved persons.

FSA Lessons for Foreign Firms: Senior Management Expectations Crystal Clear: Katharine Harle, Felicity Ewing and Emma Radmore have written an article on the implications of FSA's enforcement action against Mitsui Sumitomo Insurance Company (Europe) Ltd.

Tribunal Backs CEO Against FSA Fine: Katharine Harle,  Richard Caird and Felicity Ewing have written an article on the Upper Tribunal's Decision reversing FSA's decision to fine John Pottage for misconduct.

More Confusion on Client Money: Rosali Pretorius and Josie Day have written an article on the Supreme Court decision in the Lehman client money case.

FSA Not Obliged to Provide Cross-Undertaking in Damages: Alexandra Doucas has written an article for Thomson Reuters Complinet on Financial Services Authority v. (1) Sinaloa Gold plc and others.

The Pitfalls of Personal Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the Zaki and others v. Credit Suisse (UK) case.

An end to the PPI Saga? Wider Implications of the PPI Judgment: Alexandra Doucas and Katharine Harle wrote an article for Thomson Reuters Accelus on learning points for firms stemming from the PPI judgment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.