UK: Financial Regulatory Developments (FReD) - 5 October 2012

Last Updated: 9 October 2012


Presidency of the European Union (Presidency)

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, dated 28 September, focus on trading systems and organisational requirements. (Source: MiFID 2 Compromise Text 28 September and MiFIR Compromise Text 28 September)

Contact: Rosali Pretorius or Emma Radmore.

European Commission (Commission)

Liikanen report recommends banking separation: The high-level expert group on reforming the structure of the EU banking sector (the Liikanen Group) has presented its report to the Commission. Its recommendations cover five main areas:

  • mandatory separation of proprietary trading and other high-risk trading activities, including market making, from the deposit-taking side of a banking group;
  • power for the resolution authority under the banking crisis management Directive, in achieving its financial stability objective, to require further changes to a bank's legal and operational structure;
  • possible amendments to the use of bail-in instruments as a resolution tool;
  • reviewing capital requirements on trading assets and real estate related loans, and
  • strengthening governance and control of banks.

The deposit bank within the group would still be allowed to use derivatives for its own asset and liability management, and to manage the assets in its liquidity portfolio. It would also be allowed to provide hedging services to non-banking clients and to underwrite securities.

The European Banking Federation has expressed concerns over the impact of these proposals on Europe's universal banking model. It described the proposals as a mixture of Volcker and Vickers.

The Commission has opened a public consultation on the report until 13 November. (Source: Final Report of the High-level Expert Group on Reforming the Structure of the EU Banking Sector, EBF Reaction to Liikanen's Recommendations and Commission Consultation on the Recommendations)

Contact: Rosali Pretorius or Andrew Barber.

Commission lists Q4 plans: The Commission has published its table of actions expected to be adopted before the end of this year. The following are relevant to financial services regulation:

  • review of the Third Money Laundering Directive;
  • introduction of the Securities Law Regulation, on book-entry securities;
  • adoption of Level 2 technical measures on the Alternative Investment Fund Managers Directive (AIFMD )and Solvency 2;
  • consultation on extending the requirement for recovery and resolution plans to systemically relevant institutions other than banks and large investment banks;
  • report on application of the second Capital Requirements Directive (CRD2) to microcredit finance;
  • green paper on the role of the financial services sector in the long-term financing of the economy;
  • report on the review of the Financial Conglomerates Directive; and
  • report on the Financial Sector Acquisitions Directive.

(Source: Commission's Expected Actions)

Contact: Emma Radmore or Juan Jose Manchado.

European Parliament (EP)

ECON tables amendments to shadow banking report: Members of the Economic and Monetary Affairs Committee (ECON) of the EP have tabled amendments to the draft report on their own-initiative motion for an EP resolution on shadow banking. New recitals proposed by some MEPs stress the role shadow banking plays in financing the real economy and de-risking the banking sector. (Source: ECON Shadow Banking Report. Dossier ECON/7/09508)

Contact: Rosali Pretorius or Edward Hickman.

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

  • the review of the Insurance Mediation Directive (IMD2) will be voted on 21 May 2013 in Plenary session;
  • the Plenary sitting for MiFID 2 and MiFIR is now scheduled for 26 October; and
  • the date for the Committee vote on the Market Abuse Regulation (MAR) and the Directive on Criminal Sanctions for Market Abuse (CMAD) has been postponed by one day and is now scheduled for 9 October.

(Source: OEIL IMD2 File, OEIL MiFID 2 File and OEIL CMAD File)

Contact: Emma Radmore or Juan Jose Manchado.

European Securities and Markets Authority (ESMA)

ESMA publishes EMIR technical standards: ESMA has published its final report on suggested draft technical standards under the Regulation on OTC Derivatives, Central Counterparties (CCP) and Trade (TR) (EMIR). It has submitted the report to the Commission, which now has three months within which to decide whether to adopt the standards ESMA proposes. The technical standards cover:

  • OTC derivatives: the standards cover the clearing obligation, the clearing obligation procedure, the public register, access to a trading venue, non-financial counterparties and risk mitigation for OTC derivatives not cleared by a CCP;
  • CCPs: the standards cover colleges, recognition of CCPs and requirements on them including organisational requirements, record keeping and business continuity. They also cover margins, the default fund, liquidity risk control, the default waterfall, collateral requirements, investment policy and review of models, stress testing and back testing; and
  • TRs: the standards cover the reporting obligation, applications for registration and transparency and data availability.

ESMA also needs to issue further guidelines and technical standards on:

  • CCP interoperability;
  • contracts with a direct substantial or foreseeable effect in the EU or where it is necessary or appropriate to prevent evasion of any EMIR provision; and
  • risk mitigation techniques for OTC derivatives that are not cleared by a CCP (joint standards with EBA).

(Source: ESMA publishes EMIR Technical Standards)

Contact: Rosali Pretorius or Madeleine de Remusat.

ESMA publishes compliance function translations: ESMA has published the official translations of its guidelines on certain aspects of the MiFID compliance function requirements. This means national regulators have two months from the publication date (28 September) to tell ESMA whether they intend to comply with the guidelines and, if not, why not. (Source: ESMA Publishes Compliance Function Translations)

Contact: Emma Radmore or Andrew Barber.

ESMA publishes AIFMD remuneration responses: ESMA has published the responses it received to its consultation on sound remuneration policies under AIFMD. The responses, including detailed submissions from the Alternative Investment Fund Management Association (AIMA), the Investment Management Association (IMA), the British Bankers' Association (BBA), the European Fund and Asset Management Association (EFAMA), the Managed Fund Association (MFA) and the City of London Law Society (CLLS), make several significant criticisms of the draft guidelines, including:

  • that the draft is based on the guidelines applicable to banks, and does not focus on the specifics of the asset management sector;
  • that many firms will be subject to different sets of guidelines because of the breadth of their business, and the guidelines should be consistent. For this reason, a principles-based approach may be the most appropriate;
  • that the principle of proportionality is important and ESMA has not taken proper account of it;
  • that the guidelines should not apply to any staff who are not staff of the fund manager, such as staff of delegates;
  • that because of the nature of fund business, there may be new conflicts arising from the funds rather than from the firms, and ESMA should assess whether the perceived benefit of incentive alignment would outweigh the potential bias of a personal interest;
  • the risk that non-EEA entities will benefit over EEA entities because the guidelines apply globally to EEA entities;
  • the risk that the proposed guarantee structure will incentivise companies to hire externally rather than promoting internally; and
  • the restrictive description of carried interest used in the guidelines.

(Source: ESMA Publishes AIFMD Remuneration Responses)

Contact: Jim Baird or Rosali Pretorius.

ESMA Stakeholder Group advises on AIFM remuneration: The ESMA Stakeholder Group has issued its advice on ESMA's consultation paper about guidelines for sound remuneration policies under AIFMD. While supporting the overall approach of the guidelines, it stresses the need for a better balance between investor protection and proportionality. It proposes neutralising some requirements for less risky managers and funds. (Source: ESMA Stakeholder Group Advice on AIFM Remuneration)

Contact: Jim Baird or Rosali Pretorius.

ESMA publishes work programmes: ESMA has published its 2013 and 2013-2015 work programmes. Next year, during which its staff numbers are expected to increase to 160, it will focus on building a Single Rulebook for Europe based on its technical standards, guidelines and advice for new and revised legislation. ESMA will continue supervising credit rating agencies and will take on the supervision of trade repositories. It will also monitor developments in financial markets and coordinate responses. Going forward, some of ESMA's plans include the following:

  • carrying out more effective pre-screening of business developments, to identify new risk areas;
  • possible introduction of a passport for non-EU AIFMs;
  • strengthening its role in product intervention under MiFID;
  • gathering more data to analyse high-frequency trading and hedge funds;
  • developing a stress test framework for asset managers, exchanges and central counterparties; and
  • extending the clearing obligation for derivatives.

(Source: ESMA 2013 Work Programme and ESMA 2013-2015 Multi-annual Work Programme)

Contact: Emma Radmore or Juan Jose Manchado.

European Banking Authority (EBA)

EBA publishes Basel 3 monitoring results: EBA has published its second report on the Basel 3 monitoring exercise. The report is based on data as of 31 December and assumes full implementation of Basel 3, therefore not taking into account its phase-in of deductions and grandfathering arrangements. The report finds that, compared with the previous exercise, the larger and internationally active banks (Group 1 banks) show an average increase of 0.4% in their CET1 ratio. (Source: EBA Publishes Results of the Basel 3 Monitoring Exercise)

Contact: Rosali Pretorius or Edward Hickman

EBA confirms mediation panel: EBA has published its 5 July decision adopting the rules of the independent mediation panel that will facilitate impartial settlement of disagreements between competent authorities in cross-border situations. (Source: EBA Decision on Rules of the Mediation Panel)

Contact: Emma Radmore or Juan Jose Manchado.

EBA publishes final report on recapitalisation exercise: EBA has published the outcome and individual bank data of the recapitalisation exercise it launched in December 2011. Given that the objective of the recommendation was to build up temporary capital buffers, EBA says it will issue a new recommendation focused on capital conservation, so that banks do not make strategic use of the capital accumulated during this exercise and can absorb unexpected losses. (Source: EU Capital Exercise – Final Results)

Contact: Rosali Pretorius or Edward Hickman.

European Insurance and Occupational Pensions Authority (EIOPA)

EIOPA updates on US Dialogue: The Steering Committee of the EU-US Dialogue on insurance has invited comments on a draft report that identifies key commonalities of the EU and US insurance regimes and notes major differences. It asks for comments by 28 October. (Source: EIOPA Updates on US Dialogue)

Contact: Dan Brown or Emma Radmore.



Parliament publishes latest FS Bill Amendments: As the Financial Services Bill (FS Bill) continues its Parliamentary progress, Parliament has published a new list of Lords amendments. (Source: Lords Amendments to Financial Services Bill 2 October)

Contact: Emma Radmore or Juan Jose Manchado.

HM Treasury (Treasury)

Treasury speaks on LIBOR reform: Greg Clark, the newly appointed Financial Secretary to the Treasury, presented the Wheatley Review Final Report on 28 September. Before handing over to Martin Wheatley, he pointed out it was clear that self-regulation of LIBOR had failed. See our Summary of the Wheatley Review Recommendations. (Source: Speech by Financial Secretary to the Treasury on Wheatley Review Final Report)

Contact: Emma Radmore or Madeleine de Remusat.

Bank of England (BOE)

FPC meeting record published: BOE has published the record of the Financial Policy Committee's (FPC) meeting held on 14 September. As previously reported in FReD, FPC has extended the policy recommendations adopted in June, given that risks to financial stability have not altered since then in a way that gives any reason to change the recommendations. These recommendations covered the loss-absorbing capital cushion, the disclosure of the leverage ratio and the loosening of microprudential liquidity guidance in the light of the contingent liquidity BOE has made available. FPC also discussed drawing up statements on how its tools and powers will work and their likely impact. It decided that, although clear guidance on expectations is needed to hold FPC to account, applying these tools and powers requires flexibility and judgement-based policy since financial stability can crystallise in different and unexpected ways. (Source: Record of FPC Meeting 14 September)

Contact: Rosali Pretorius or Edward Hickman.

Office of Fair Trading (OFT)

OFT refers motor insurance market to Competition Commission: OFT has referred the UK private motor insurance market to the Competition Commission. It believes there are flaws which mean the market does not work for consumers, particularly in the costs of replacement vehicles and vehicle repairs arranged by the insurers of "not-at-fault" drivers. (Source: OFT Refers Motor Insurance Market to Competition Commission)

Contact: Emma Radmore or Andrew Barber.

OFT publishes mortgage investigation guidance: OFT has published guidelines it has agreed with FSA on investigation of mortgage cases of interest or concern to FSA and other agencies. The guidelines include a list of factors that will help decide which agency should take action. (Source: OFT Publishes Mortgage Investigation Guidance)

Contact: Andrew Barber or Katharine Harle


Financial Services Authority (FSA)

FSA writes to CEOs on inducements and the RDR: FSA has written to CEOs of a sample of the largest providers and distributors of retail investment products noting its concern that some firms may be looking for ways to circumvent the adviser charging rules. It states that payments which are intended to achieve the same result as commission, but are structured so as not to look like commission, are not in the spirit of the Retail Distribution Review (RDR). It is also concerned about how firms comply with the inducements rules. The letter sets out examples of inducements that worry FSA and requires firms to confirm their distribution and other relevant agreements comply with current inducement rules and will comply with the RDR. Firms must also provide FSA with information about their agreements. FSA has requested acknowledgement of the letter and asked for full responses by 15 October. (Source: FSA Writes to CEOs on Inducements and the RDR)

Contact: Andrew Barber or Emma Radmore.

FSA makes new rules: FSA made several changes to its Handbook at its September 2012 Board Meeting:

  • the Handbook Administration (No 27) Instrument 2012 amends various parts of the Handbook from 1 October to make minor clarificatory changes;
  • the Advanced Measurement Approach (AMA) Guidelines Instrument 2012 amends the Senior Management Systems and Controls Sourcebook (SYSC) and the Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU) also from 1 October to adopt EBA's guidelines on AMA;
  • the Compensation Sourcebook (Amendment No 9) Instrument 2012 amends the Glossary and the Compensation Sourcebook (COMP) from 1 October 2012 and 1 April 2013 to improve the speed of compensation payments and reduce the costs of the Financial Services Compensation Scheme (FSCS) in processing claims;
  • the Professional Firms (Amendment No 2) Instrument 2012 amends the Professional Firms Sourcebook (PROF) from 1 April 2013 to deal with a regulatory gap relating to "non-mainstream regulated activities" that professional firms carry out; and
  • the Listing Rules (Sponsors) (Amendment No 2), Listing, Prospectus and Disclosure Rules (Miscellaneous Amendments No 2), the Listing Rules (Reverse Takeovers), the Listing Rules Sourcebook (Amendment No 8), the Listing Rules (Financial Information) (Amendment), the Listing Rules (Sponsors Amendment No 3) and the Prospectus Regulation (Amendment No 2) Instruments 2012 amend the Glossary, Listing Rules, Prospectus Rules and Disclosure and Transparency Rules mainly from 1 October. The changes modify various provisions of this block of rules, including to introduce a rule that companies that outsource significant management functions to advisory firms cannot be premium listed.

(Source: Handbook Notice 123)

Contact: Emma Radmore or Juan Jose Manchado.

FSA speaks on FCA and financial crime: Tracey McDermott spoke to BBA on the role FSA currently plays, and the role the Financial Conduct Authority (FCA) will play in tackling financial crime. She said the FS Bill's integrity objective explicitly tasks FCA not to let the UK financial system be used for the purposes of financial crime. Although the Prudential Regulation Authority (PRA) has no such mandate it will also need to be alert to the risks firms face. She moved on to speak about areas of current regulatory activity, specifically investment fraud, high-risk customers and trade finance (into which FSA has just begun a thematic review). She also said the "Systematic Anti-Money Laundering Programme" piloted over the past year will continue to apply to the largest banks operating the UK. It enables FSA to take a view on an ongoing basis of how robust banks' defences against money laundering and sanctions risks are. Finally, she stressed that the culture and incentive structure within banks must not aggravate financial crime risk. (Source: FSA Speaks on FCA and Financial Crime)

Contact: Emma Radmore or Andrew Barber.

Up next from FSA: The latest Policy Development Update promises several important papers before the end of 2012, including:

  • policy and feedback statements on Recovery and Resolution Plans;
  • feedback and further consultation on Solvency 2 implementation;
  • policy statement on the Mortgage Market Review;
  • policy statement on payments to platform providers and cash rebates to consumers;
  • policy statement on client assets (CASS) firm classification, oversight, reporting and the mandate rules;
  • feedback and further consultation on packaged bank accounts;
  • feedback on part of the recent consultation on EMIR, multiple pools and the wider CASS review;
  • policy statement on a new sourcebook on consumer redress; and
  • consultation on implementation of AIFMD.

(Source: Policy Development Update No. 151)

Contact: Emma Radmore or Juan Jose Manchado.

FSA publishes complaints data: FSA has published the aggregate complaints statistics for the half-year period to June 2012. The statistics address complaints by product and cause, and look at speed of resolution, number of complaints upheld and redress paid. (Source: Aggregate Complaints Statistics)

Contact: Emma Radmore or Andrew Barber.

FSA adjusts bank liquidity and capital requirements: In line with the FPC recommendations, FSA has made adjustments to ensure microprudential rules do not offset the actions taken to encourage lending. FSA will give banks reasonable time to rebuild liquid asset buffers to the extent that these don't fall below a defined "upper tier" of their individual liquidity guidance. Another FSA measure will ensure that no bank has to hold added capital for increased lending, as measured by the Funding for Lending scheme. (Source: Adjustments to FSA's Liquidity and Capital Regime)

Contact: Rosali Pretorius or Edward Hickman.

FSA consults on changes to Listing Regime: FSA is consulting on several changes to the Listing Rules, including the free float provisions, governance requirements for companies controlled by a majority shareholder and the use of reverse takeovers. The consultation also includes proposals on the need for the board of a premium listed investment entity to challenge the investment manager and protect the best interest of shareholders, ensuring that appropriate contracts are in place to this effect. Any conflict arising from overlaps with the obligations of the manager arising from AIFMD must be managed by the listed investment entity. (Source: Enhancing the Effectiveness of the Listing Regime)

Contact: Anna Janik or Edward Nisbet.

FSA publishes MoU for clearing supervision: FSA has published the MoU it signed on 2 July with the Danish, Finnish and Swedish competent authorities to enhance the supervisory co-operation in relation to the services that UK clearing houses offer in these three jurisdictions. (Source: MoU for Clearing Supervision)

Contact: Rosali Pretorius or Emma Radmore.

FSA publishes financial crime newsletter: The latest edition of FSA's Financial Crime Newsletter focuses on recent fines and thematic reports. During the second half of 2013 it plans to publish the results of thematic work on anti-money laundering (AML), terrorist financing and sanctions controls in trade finance, and on AML and anti-bribery and corruption (ABC) systems and controls in asset managers. FSA has confirmed it will update the Financial Crime Guide from 1 November to take account of recent reviews, and that it will include ABC risks in its Core Financial Crime Programme from the middle of 2013. It also features an item on the practicalities of reporting sanctions matches, and explains why it may be necessary to report to two agencies if there is both a sanctions match and a money laundering suspicion report. (Source: Financial Crime Newsletter, Issue 16)

Contact: Emma Radmore or Andrew Barber.

FSA consults on approved persons in dual-regulated firms: FSA is consulting on changes to the way firms should deal with their approved persons. It explains that as part of its process for creating the PRA and FCA Handbooks it intends to make only the minimum changes necessary to implement the cut-over and the new regime. However, in some cases, it will be necessary to change existing procedures so the new regulators can meet their statutory objectives. For approved persons in firms regulated only by FCA after legal cut-over, there will be little change in the process and rules. This consultation focuses on dual-regulated firms. FSA now plans to:

  • split the list of controlled functions as it relates to dual-regulated firms, to minimise the possibility of duplication; and
  • increase the scope of the Principles for Approved Persons (APER) so it covers a broader range of functions. FSA wants to make it clear that it expects the same standards of behaviour from approved persons both within and outside their controlled functions.

FSA has included a chart showing how it intends to designate each controlled function, so only one regulator is responsible for each. Where an individual applies for two functions, FSA intends to take a pragmatic approach so that, for example, a chief executive of a dual-regulated firm (seeking approval from PRA) would not also need approval from FCA for being a director. The only exception to the rule that each controlled function is the responsibility of only one regulator is the non-executive director function for which there will be both a PRA and an FCA class. FSA says it is still keen to introduce the proposed customer function for mortgage business, but that technological issues are preventing it from doing so as soon as it would like. The paper includes draft Handbook text, making the significant amendments needed to implement the changes. The consultation does not cover grandfathering of existing approvals, which Treasury is expected to legislate for. FSA asks for comments by 7 December. (Source: Regulatory Reform: the PRA and FCA Regimes for Approved Persons)

Upper Tribunal (Tax and Chancery Chamber) (Tribunal)

Tribunal supports market abuse ban: The Tribunal has backed FSA's decision to fine and ban two individuals for market abuse. FSA had fined Stefan Chaligné £900,000 plus disgorgement of profit, and Patrick Sejean £550,000. The Tribunal increased the fine on Mr Sejean, former senior salesman on Cantor Fitzgerald Europe's London-based French desk, to £650,000. Tracey McDermott said FSA found Mr Sejean was a willing participant in Mr Chaligné's scheme. The Tribunal also backed FSA's fine on Tidiane Diallo. FSA banned all three individuals. (Source: Tribunal Supports Market Abuse Ban)

Contact: Rosali Pretorius or Katharine Harle.


Association for Financial Markets in Europe (AFME)

AFME publishes securitisation report: AFME has published a report on the benefits of securitisation to the EU economy. Securitisation is important to the capital markets and it could help closing the funding gap. AFME looks at how the increased global regulatory burden on issuers and investors of asset-backed securities (ABS) can impact funding costs for businesses. The "skin in the game" provisions in CRD2 should have already addressed concerns about alignment of interests. Additionally, the Prime Collateralised Securities label (see FReD 15 June for this AFME initiative) will help identify best practices for high-quality securitisation. (Source: The Economic Benefits of High Quality Securitisation to the EU Economy)

Contact: Edward Hickman or Thomas Parachini.

Association of Independent Financial Advisers (AIFA)

AIFA comments on platform payments: AIFA supports transparency of charges, so agrees with rule changes that would require clear up-front disclosure of charges relating to platform use. However, it does not agree with the decision to remove cash rebates from customers. (Source: AIFA Comments on Platform Payments)

Contact: Andrew Barber or Emma Radmore.

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

Basel Committee assesses Basel 3 implementation rules: The Basel Committee is assessing the rules made by its members to implement Basel 3. It has found that US and EU draft rules are still not fully compliant with the globally agreed minimum standards. In the case of the EU, its CRD4 package, as it stood on the general approach the Council of the EU reached on May, is materially non-compliant regarding the definition of capital and the internal ratings-based approach. (Source: Basel Committee Assesses Basel 3 Implementation Rules)

Contact: Rosali Pretorius or Edward Hickman.

British Bankers' Association (BBA)

BBA supports Wheatley Review: BBA has supported the conclusions of the Wheatley Review of LIBOR. It said it had previously agreed to support a recommendation to pass responsibility for LIBOR to a new sponsor. (Source: BBA Supports Wheatley Review)

Contact: Rosali Pretorius or Emma Radmore

Investment Management Association (IMA)

IMA wants better platform rules: IMA, responding to FSA's consultation on payments to platform service providers, says FSA should be clearer about what can be paid to platforms and for what services. It also says FSA's proposal to ban cash rebates to investors but allow "unit rebates" is illogical, and at odds with the European Parliamentary Committee agreement in the context of the MiFID Review that cash payments are allowed. (Source: IMA Wants Better Platform Rules)

Contact: Andrew Barber or Emma Radmore.

IMA responds on client assets and mandates: IMA has responded to FSA's consultation on client assets firm classification, oversight, reporting and the mandate rules. It is broadly supportive of the changes, but notes several areas where FSA guidance on reporting could be clearer. (Source: IMA Responds on Client Assets and Mandates)

Contact: Rosali Pretorius or Madeleine de Remusat.

International Swaps and Derivatives Association (ISDA)

ISDA responds on margin for non-centrally-cleared derivatives: ISDA has responded to the Basel Committee's July consultation on "Margin requirements for non-centrally-cleared derivatives". It raises several concerns and recommendations:

  • it opposes the requirement for initial margin, highlighting the procyclical effects and drain on liquidity it would cause. If it is introduced, ISDA says that the thresholds should be determined by the counterparties;
  • there should be no obligation to segregate variation margin and its re-hypothecation should be permitted;
  • portfolio-based margining should be permitted, also across cleared and non-cleared OTC derivatives and other products and between legal entities;
  • the proposals would convert counterparty risk into credit risk, given that counterparties would have to borrow the initial margin they post, and the incentives to manage residual counterparty risk would be lost; and
  • physically settled foreign exchange swaps and forwards should be exempted from margining.

(Source: ISDA Response on Margin for Non-Centrally-Cleared Derivatives)

Contact: Rosali Pretorius or Madeleine de Remusat.

Forthcoming Events

BBA SARs and Court Orders Masterclass: Emma Radmore, Sam Coulthard and David Pope will be speaking at this event on 11 October.

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:

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.

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.

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

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 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.

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Events from this Firm
21 Sep 2017, Seminar, London, UK

Is there such a thing as "energy law"? What do "energy lawyers" do? And why should it be of interest to anyone else?

28 Sep 2017, Seminar, London, UK

On 26 July the FCA published its long-expected consultation paper on the extension of the SMCR to all FCA-authorised firms. The so-called "core regime" introduces the key concepts of regulator-approved senior managers, firm-approved certification staff and conduct rules applicable to virtually all staff.

3 Oct 2017, Conference, Zurich, Switzerland

As the founding Partner of the Europe-Iran Forum, Dentons Europe will once again support this year’s event. This compelling event which explores all Iran-related topics will take place in Zürich on 3rd and 4th October.

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