UK: Financial Regulatory Developments (FReD) - 6 September 2013

Last Updated: 11 September 2013


  • Commission publishes shadow banking and MMF plans
  • ESMA advises Commission on EMIR equivalence
  • FCA updates consumer credit transfer plans
  • FCA updates on AIFMD co-operation and fees
  • Basel Committee and IOSCO publish margin requirements for OTC derivatives



G-20 updates long-term financing principles: G-20 and the Organisation for Economic Co-operation and Development (OECD) have published the eighth edition of their Principles of Long-Term Investment Financing by Institutional Investors. The principles cover:

  • preconditions for long-term investment;
  • development of institutional investors and long-term savings;
  • governance of institutional investors, remuneration and asset management delegation;
  • financial regulation, valuation and tax treatment;
  • financing vehicles and support for long-term financing and collaboration among institutional investors;
  • investment restrictions;
  • information sharing and disclosure; and
  • financial education, awareness and consumer protection.

(Source: G-20 Updates Long-Term Financing Principles)

Contact: Rosali Pretorius or Howard Cohen

G-20 reports on consumer protection: G-20 and the OECD have published a report, dated July 2013, on the implementation of three of their Principles on Financial Consumer Protection. The report looks at how to approach compliance with the principles on:

  • disclosure and transparency;
  • responsible business conduct of financial services providers and their authorised agents; and
  • complaints handling and review.

Under each principle and each section within it, the report looks at key themes and effective common and emerging approaches. (Source: G-20 Reports on Consumer Protection)

Contact: Andrew Barber or Josie Day

G-20 reports on OTC derivatives: The G-20 OTC Derivatives Regulators Group has reported on progress towards resolving inconsistencies and conflicts between different laws. It said it was pleased at the progress already made and noted that key regulators understand the importance of co-operation. (Source: G-20 Reports on OTC Derivatives)

Contact: Rosali Pretorius or James Brennan

Financial Stability Board (FSB)

FSB reports on "too-big-to-fail": FSB has reported on the progress of international initiatives designed to solve the problem of institutions being too big to fail. It is pleased with progress but highlights several areas for further action. It identified the need:

  • for legislative reforms to implement the "Key Attributes of Effective Resolution Regimes for Financial Institutions" by 2015. It says changes must cover all parts of the financial sector that could cause systemic problems, including insurers and key market infrastructures;
  • to improve information sharing and co-operation between regulators;
  • to make resolution effective in a cross-border context;
  • to deal with complexities in firms' legal, financial and operational structures that make resolution difficult;
  • for domestic legislation to reinforce resolution arrangements, and to designate domestic systemically important banks; and
  • to ensure regulators are able to resource themselves properly to deal with effective resolutions.

(Source: FSB Reports on Too-Big-To-Fail)

Contact: Rosali Pretorius or Andrew Barber

FSB reports on derivatives markets reforms: FSB has reported on the progress of OTC derivatives markets reform measures. It is pleased with progress and comments specifically on:

  • the fact that by the start of 2014 three quarters of FSB member jurisdictions plan to have legislated to require reporting of transactions to trade repositories (TRs). Most large derivatives markets are already moving towards central clearing;
  • the fact that international minimum standards are in place for sound risk management of Financial Market Infrastructures (FMIs), including central counterparties (CCPs);
  • the work of a group of major market regulators who have reached understandings to improve the cross-border implementation of OTC derivatives reforms; and
  • the good progress market participants are making in their preparations for implementation of OTC derivatives market reforms.

It also notes that centralised infrastructures for reporting and clearing of OTC interest rate and credit derivatives are advancing quickly.

Further work the report recommends includes:

  • increased use of central clearing, and a renewed focus on increasing the use of exchanges and electronic trading platforms;
  • establishment of resolution regimes for FMIs, including CCPs;
  • continued work on cross-border co-operation and mutual recognition of rules that achieve the same result, and more clarity on the treatment of cross-border transactions; and
  • ensuring that authorities can make full use of TR data.

FSB will report again in April 2014 and asks for feedback on this report by 2 October 2013. (Source: FSB Reports on Derivative Market Reforms)

Contact: Rosali Pretorius or James Brennan

FSB consults on resolution mechanism attributes: FSB is consulting on an assessment methodology which it will use to monitor compliance with its 2011 Key Attributes of Effective Resolution Regimes for Financial Institutions. The methodology will include some cross-sectoral principles and some provisions specific to particular sectors or to financial market infrastructure. Paul Tucker said it is essential that all jurisdictions have resolution regimes consistent with the "Key Attributes", which includes having powers and arrangements in place for proper cross-border co-operation. FSB asks for comment by 31 October. (Source: FSB Consults on Resolution Mechanism Methodology Attributes)

Contact: Rosali Pretorius or Andrew Barber

FSB publishes CRA report: FSB has published a progress report on reducing reliance on, and strengthening supervision of, credit rating agencies (CRAs). It thinks progress needs to speed up. It acknowledges jurisdictions started from different points, but points out that only the EU and US have made significant progress. It notes the proposals for change from the Basel Committee and now wants FSB member jurisdictions to encourage financial institutions to reduce reliance on credit ratings and improve disclosure of their internal risk assessment processes. It will finish its current peer review work and publish a final report on it in early 2014. (Source: FSB Publishes CRA Report)

Contact: Rosali Pretorius or Edward Hickman

FSB reports on shadow banking: FSB has published a suite of papers containing policy recommendations to strengthen the oversight and regulation of the shadow banking system. The proposals aim to:

  • mitigate the spill-over effect between the regular and shadow banking systems;
  • reduce the susceptibility of money market funds (MMFs) to runs;
  • assess and align incentives associated with securitisation;
  • dampen risks and procyclical incentives associated with securities financing transactions such as repos and securities lending that may worsen funding strains when markets are stressed; and
  • assess and mitigate systemic risks that other shadow banking activities and entities pose.

FSB has published three documents addressing these aims:

  • an Overview of Policy Recommendations: this sets out FSB's overall approach to shadow banking issues;
  • a Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos: FSB suggests recommendations for addressing financial stability risks in this area. These include more transparency, regulation of securities financing, and improvements to market structure. The paper also consults on minimum standards for methodologies to calculate haircuts on non-centrally cleared securities financing transactions and a framework of numerical haircut floors; and
  • a Policy Framework for Strengthening Oversight and Regulation of Shadow Banking Entities setting out the high-level policy framework to assess and address risks posed by shadow banking entities that are not money market funds.

FSB asks for comments on its paper on securities lending and repos by 28 November. (Source: FSB Reports on Shadow Banking)

Contact: Rosali Pretorius or Andrew Barber

FSB updates on long-term investment finance: FSB has reported on the results of a meeting to discuss long-term investment finance and the role financial regulation can play. Participants recognised the importance of regulation to financial stability but also noted that regulation should be treated as a cost of finance and stressed the usefulness of predictable changes in legislation. FSB will work closely with international standard setters to develop a set of key quantitative indicators that summarise the main developments in the provision of long-term finance. (Source: FSB Updates on Long-Term Investment Finance)

Contact: Howard Cohen or Josie Day

FSB reports on benchmark reform progress: FSB has published a report on its work on benchmark reforms. The report explains the work of the Official Sector Steering Group which is co-chaired by Martin Wheatley. The group recommended FSB endorse the International Organisation of Securities Commissions (IOSCO) Principles for Financial Benchmarks (see FReD 18 July) and FSB has done so. The group will now focus on:

  • recommendations for conducting assessments of the governance and processes that relate to existing interest rate benchmarks using the endorsed IOSCO Principles; and
  • encouraging the private sector to identify additional benchmark rates.

The group will report back to FSB with analysis and recommendations by June 2014. (Source: FSB Reports on Benchmark Reform Progress)

Contact: Rosali Pretorius or Luca Salerno

European Commission (Commission)

Commission publishes shadow banking and MMF plans: The Commission has published two documents on proposed measures to address the risks of shadow banking generally and MMFs in particular.

  • A Communication on shadow banking builds on the Commission's Green Paper of 2012 and explains the measures already taken to counter some of the risks the paper identified. It also gives an overview of additional measures the Commission wants to introduce, which include increasing the transparency of the shadow banking sector, improving the framework for MMFs, reducing the risks associated with securities financing transactions, strengthening the prudential banking framework to limit contagion and arbitrage risks, and supervising the shadow banking sector more effectively. Key new measures will include:

    • supplementing initiatives regarding the collection and exchange of data;
    • developing central repositories for derivatives within the framework of the European Market Infrastructure Regulation (EMIR) and the revision of the Markets in Financial Instruments Directive (MiFID 2);
    • implementing the Legal Entity Identifier (LEI), an initiative established by the FSB;
    • increasing the transparency of and reducing the risks associated with securities financing transactions;
    • possibly strengthening the UCITS framework; and
    • tightening the prudential rules applied to banks when they deal with unregulated financial entities in order to reduce contagion risks and potentially extending the scope of application of prudential rules in order to reduce arbitrage risks.
  • A proposed Regulation on MMFs would apply to all funds that invest in money market instruments regardless of any application of existing investment fund sector legislation to the fund or its manager. The Commission wants to set a general framework within which MMFs must operate, while stressing investors must still be responsible for assessing the risks of investing in such funds. The Regulation would require:

    • certain levels of daily/weekly liquidity so the MMF could satisfy investor redemptions;
    • clear labelling on whether the fund is a short-term MMF or a standard one;
    • a capital cushion for "constant Net Asset Value" funds for supporting stable redemptions when asset value decreases;
    • customer profiling policies to help anticipate large redemptions; and
    • in line with the general move away from reliance on external credit ratings, some internal credit risk assessment by the MMF manager.

(Source: Commission Publishes Shadow Banking and MMF Plans)

Contact: Rosali Pretorius or Andrew Barber

European Banking Authority (EBA)

EBA consults on geographical location of credit: EBA is consulting on draft Regulatory Technical Standards (RTS) setting out criteria for identifying the geographical location of all relevant credit exposures (credit risk, trading book and securitisation exposures). Banks must hold, at Member State level, countercyclical buffers at rates set by national authorities. Institutions with cross-border activities will have to hold buffers dependent on where their credit portfolios are, rather than where the institutions that hold the exposures are. EBA proposes to use the location of the obligor or debtor as a general principle setting the geographical location. EBA asks for comments by 1 November 2013. (Source: EBA Consults on Geographical Location of Credit)

Contact: Rosali Pretorius or Andrew Barber

European Securities and Markets Authority (ESMA)

ESMA advises Commission on EMIR equivalence: ESMA has published its advice to the Commission on the equivalence of third country regulatory regimes for OTC derivatives clearing, CCPs and TRs with EMIR. The Commission asked ESMA to assess the regulatory regimes of Australia, Canada, Hong Kong, India, Singapore, South Korea, Switzerland, the US and Japan. The advice on the US and Japan was the first due to be delivered, but ESMA thought it useful to cover aspects of other jurisdictions also. It found Australia's and Switzerland's regimes for CCPs equivalent to EU rules. It also proposed conditional equivalence for:

  • Hong Kong, Japan, Singapore and the US for CCPs;
  • the US and Japan for central clearing, requirements for non-financial counterparties and risk mitigation techniques for uncleared trades; and
  • the US for TRs. It did not find Japan equivalent for TRs because Japan informed it no Japanese TRs wished to register.

If the Commission makes equivalence decisions, equivalent third country rules can apply instead of certain provisions of EMIR and in some cases ESMA may recognise within the EU a CCP or TR authorised outside the EU. ESMA now needs to deliver its advice on the areas not covered for these jurisdictions by 1 October 2013. Meanwhile third-country CCPs must apply for ESMA recognition by 15 September if they want to continue to be offering clearing services directly to EU clearing members. (Source: ESMA Advises Commission on EMIR Equivalence)

Contact: Rosali Pretorius or James Brennan


Bank of England (BoE)

BoE sets out FMI decision principles: BoE has published its proposed statutory statements of procedure in respect of its supervision of FMIs. The paper covers:

  • the decision-making framework for giving decision notices and warning notices to recognised clearing houses (RCH) and qualifying parent undertakings (QPU); and
  • the procedure for publishing decision notices about RCH and QPU.

BoE asks for comments by 30 September. (Source: BoE Sets Out FMI Supervision Principles)

Contact: Rosali Pretorius or Josie Day

Serious Fraud Office (SFO)

SFO speaks on recent developments: David Green, Director of SFO, spoke on the changes SFO has made since he took up his position in 2012. Among the points he made were:

  • reiterating SFO's views that self-reporting was no guarantee of civil rather than criminal consequences;
  • repeating that foreign bribery is not acceptable and that SFO will never accept it as a necessary cost of doing business;
  • welcoming the introduction of deferred prosecution agreements, which he confirmed is due to be in early 2014; and
  • suggesting that a corporate offence similar to the Bribery Act "failure to prevent bribery" offence should apply to companies in respect of the prevention of all corporate fraud and related offences, so that a company would in effect be liable for negligence subject to a similar "adequate procedures" defence to the Bribery Act's.

(Source: SFO Speaks on Recent Developments)

Contact: Howard Cohen or Emma Radmore

HM Treasury (Treasury)

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

Contact: Emma Radmore or Andrew Barber


Financial Conduct Authority (FCA)

FCA updates consumer credit transfer plans: At FCA's August Board meeting it made two instruments dealing with procedural aspects of the transfer of consumer credit regulation from the Office of Fair Trading (OFT) to FCA. The instruments:

  • explain there will be a one-off fee for firms applying for an interim permission for consumer credit activities (excluding various non-commercial debt counselling and related activities which will, alongside credit unions, benefit from some concessions). This fee will be £350 for firms and £150 for sole traders. Each will get a 30% discount if they apply before 30 November 2013. FCA has confirmed that firms currently authorised by FCA will not automatically get interim permissions without having to register because it wants to ensure only active firms participate in the regime. In addition, the Government has decided there will be a system of rebates to firms transferring from OFT to FCA to ensure the costs of the transfer are proportionate. It will announce the details of the rebate later in the year; and
  • set out what current secondary legislation relating to consumer credit will be "designated" as FCA rules. The Government gave FCA the power to designate limited legislation and make minor changes to make the legislation consistent with FCA's regulatory regime. FCA will use these powers to designate secondary legislation relating to:

    • calculating the total charge for credit;
    • exempting certain loans by certain bodies relating to buying or improving land; and
    • declarations and statements relating to lending for business purposes or to high net worth individuals.

FCA has made changes to the Glossary and created a new Sourcebook, the Consumer Credit Sourcebook (CONC), which will take effect on 1 April 2014 and includes the rules deriving from the current statutory instruments.

Following this announcement, FCA set up a webpage on which applicants can register for interim permission, and explaining how to apply. FCA will consult later in the year on the detail of its rules following the transfer. (Source: FCA Explains Consumer Credit Interim Fees, FCA Explains Designated Consumer Credit Legislation and FCA Sets Up Interim Permission Webpage)

Contact: Andrew Barber or Emma Radmore

FCA fines fund managers for client money failings: FCA has fined Aberdeen Asset Managers Limited and Aberdeen Fund Management Limited a total of £7,192,500 for failing to recognise and therefore failing to properly protect client money over a period of three years. The money was placed in Money Market Deposits with third party banks between September 2008 and August 2011 and the average daily balance affected was £685 million. The firms had concluded the money was not subject to client money rules and as a result did not have in place with the relevant banks the documentation the client money rules required. Also the firms were inconsistent in their naming of accounts, making it difficult to track who owned the funds. The firms had confirmed to the then Financial Services Authority in 2009 that they were compliant with client money rules. FCA was particularly concerned not only because of this and because of the firms' reputation but also because new employees had flagged the potential problem twice before the firms took action following a query from a third party bank. In mitigation, once the firms took advice on the matter, they self-reported to the regulator and co-operated with the investigation. The firms have now revised their practices so they comply with the mandates requirements of the client money rules. (Source: FCA Fines Fund Managers for Client Money Failings)

Contact: Rosali Pretorius or Josie Day

FCA finalises interest-only mortgage repayment guidance: FCA has finalised its guidance to firms on how they should treat interest-only mortgage customers who risk being unable to repay their mortgage at the end of the term. The guidance recognises that customers are responsible for ensuring they can repay, but requires firms to have in place various governance measures to help them treat customers fairly. This includes a written strategy, having management information to help them assess customer needs and considering options customers might benefit from. It also recommends early and frequent communication with customers. (Source: FCA Finalises Interest-Only Mortgage Repayment Guidance)

Contact: Andrew Barber or Emma Radmore

FCA updates on AIFMD co-operation and fees: FCA has updated on:

  • the regulators with whom co-operation agreements relating to the Alternative Investment Fund Managers Directive (AIFMD) are in place. There are now 42 Memoranda of Understanding (MoU) in place; and
  • fees payable by various types of Alternative Investment Fund Manager (AIFM) applying for authorisation or variation of permission, including small registered AIFMs and managers of European Social Entrepreneurship and Venture Capital Funds, and also fees relating to notifications under the National Private Placement Regime.

(Source: FCA Updates on AIFMD Co-Operation Agreements and FCA Explains AIFMD Fees)

Contact: Rosali Pretorius or Kam Dhillon

FCA updates on interest rate hedging review: FCA has published its first four-month update on banks' review of their sales of interest rate hedging products. Martin Wheatley said 85% of cases are now under review, but it is critical that any redress due is paid quickly. FCA expects that most customers will be informed of the result of their review, and of any possible basic redress, by the end of the year. The report says that, by the end of August, banks had sent out 210 offers of redress, of which 10 have been accepted. A further 1,700 offers are due to go out shortly. FCA has published charts plotting the progress of the review. (Source: FCA Updates on Interest Rate Hedging Review)

Contact: Rosali Pretorius or Josie Day

FCA sets out data use strategy: FCA has published a document explaining why it collects data and the uses to which it will put the data it collects. It recognises that in the past collection has frustrated firms, as the Financial Services Authority collected large amounts of data, gave firms what seemed unreasonable timescales to produce data and gave minimal feedback on data use. FCA says it will have effective governance and controls over the data it requests and collects, and will engage better with firms. (Source: FCA Sets Out Data Use Strategy)

Contact: Howard Cohen or Andrew Barber

Financial Ombudsman Service (FOS)

FOS updates complaints data: FOS has updated its published complaints data to cover the period to 30 June 2013. The overall number of complaints is still rising, mainly because of the continued increase in complaints about payment protection insurance. The number of other complaints fell. (Source: FOS Updates Complaints Data)

Contact: Andrew Barber or Josie Day


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

Basel Committee and IOSCO publish margin requirements for OTC derivatives: The Basel Committee and IOSCO have published the final framework for margin requirements for non-centrally cleared derivatives. The standards will require all financial firms and systemically important non-financial entities dealing in non-centrally cleared derivatives to exchange initial and variation margin appropriate for the counterparty risks they face. There are some changes from the previous near-final version:

  • physically settled foreign exchange forwards and swaps will have no initial margin requirements, but variation margin will apply and will be calculated in line with the Basel Committee guidance for managing settlement risk in foreign exchange (FX) transactions;
  • fixed, physically settled FX transactions associated with the exchange of principal of cross-currency swaps will also attract no initial margin. The variation margin requirements will apply to all components of cross-currency swaps;
  • the framework allows "one-time" rehypothecation of initial margin collateral subject to a number of strict conditions; and
  • there will be a universal initial margin threshold of €50 million below which a firm could choose not to collect initial margin, and which allows for a number of forms of eligible collateral to satisfy initial margin requirements.

The framework envisages a four-year phase-in period for collecting and posting initial margin on non-centrally cleared trades from December 2015. The requirements will apply first to the largest, most active and most systemically important derivatives market participants. (Source: Basel and IOSCO Publish Margin Requirements for OTC Derivatives)

Contact: Rosali Pretorius or James Brennan


Euroclear comments on FCA AIFMD deadlines: Euroclear has reminded its members that FCA has recommended all applications for registration under the AIFMD be made by January 2014, to allow it six months to make decisions before the transitional period for implementation runs out in late July 2014. Euroclear also notes that both large and small outsourcing providers will be seeking work from funds needing to appoint depositaries to comply with the AIFMD. (Source: Euroclear Comments on FCA AIFMD Deadlines)

Contact: Rosali Pretorius or Kam Dhillon


Forthcoming Events

Marketing Funds in the UK: Navigating the New Landscape: In this breakfast briefing on 11 September, Rosali Pretorius and Josie Day will consider the AIFMD requirements as implemented in UK, and how they impact on and interrelate with, existing requirements under FSMA. We will consider the position of UK and non UK funds, whether managed in the EU or not. We will also touch on the FCA's recent enforcement action in this area. Registration is from 8:15, and the seminar will run from 8:45 to 10:00. If you would like to register for this seminar, RSVP here.

FReD Live: On 24 September, our FReD Live Breakfast Seminar will be presented by Rosali Pretorius and Adrian Berendt, Regulatory Consultant, formerly of LCH.Clearnet, and the topic will be "To clear or not to clear?: Implications of EMIR and CRR". FReD readers will receive invitations and registration details shortly.

Recent Publications

New This Week

UK authorities move forward on tougher financial crime prevention: Emma Radmore wrote an article for Financial Regulation International on current consultations on sentencing and deferred prosecution agreements.

Sanctions restrictions do not prevent payment of debts: Richard Caird and Tom Rocher comment on the judgement in DVB Bank SE and others v. Shere Shipping Company Limited and others.

Mobile Banking - FCA sets out the risks: Candice Chapman, Andrew Barber and Winston Green comment on FCA's thematic review of mobile banking. (See also FReD 30 August.)

Appeal dismissed in first interest swap case: Richard Caird and Kattalin Truman have written an article on the Court of Appeal's decision in the first interest rate swap case in the English courts.

Financial Crime

Deferred Prosecution Agreements: Emma Radmore has written an article for Financial Regulation International on the introduction of Deferred Prosecution Agreements in the UK. (June 2013)

Anti-Bribery and Corruption Laws in Key Jurisdictions: Lawyers from Dentons offices in six jurisdictions prepared a table comparing key provisions of anti-corruption laws for Thomson Reuters Compliance Complete. (May 2013)

Preventing Financial Crime: Emma Radmore has written an article for Financial Regulation International on recent developments in financial crime prevention. (April 2013)

The Evolving Financial Sanctions Landscape – UK and US Perspectives: Emma Radmore, Thomas Laryea, Michael Zolandz and Peter Feldman have written an article for Financial Regulation International on financial sanctions under the UK and US regimes. (November 2012)

The Bribery Act – Has It Made A Difference?: We have updated our previous overview of the Bribery Act to take into account the Serious Fraud Office's latest guidance. (October 2012)

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). (May 2012)

Investment Services and Markets Reform

Mobile Network Operator Billing: Andrew Barber and Alex Haffner have written an alert on the effects of the Payment Services Directive on the development of direct-to-phone-bill purchases by mobile network operators. (August 2013)

US Government announces six-month delay in FATCA rules: John Harrington, Jeffrey Koppele, Marc Teitelbaum and Jerome Walker have written an update on the delay in implementing certain elements of FATCA. (July 2013)

Take aim for AIFMD implementation: Emma Radmore and Kam Dhillon have written an article for Compliance Monitor on the final steps towards implementation of the AIFMD. (July 2013)

Taking the Credit - the Transfer of Consumer Credit Regulation: Andrew Barber, Emma Radmore and Juan Jose Manchado have written an article for Compliance Monitor on the transfer of consumer credit regulation to FCA. (April 2013)

Last Lap to Legal Cut-Over: Emma Radmore has written an article for Compliance Monitor on FSA's first two consultations on preparing for the new regulatory regime. (January 2013)

A New Handbook for a New Era?: Emma Radmore has written an article for Thomson Reuters Compliance Complete on FSA's proposals to update the General Provisions Sourcebook for legal cut-over. (October 2012)

Treasury Publishes Banking Reform Bill: Read our summary of the Bill implementing the Vickers reforms into FSMA. (October 2012)

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. (October 2012)

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. (September 2012)

Rate Setting and Regulation: In Everyone's Interests?: Rosali Pretorius and Katharine Harle wrote an article for Financial Regulation International on the background to LIBOR setting and potential regulatory action. (August 2012)

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. (May 2012)

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). (January 2012)

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. (June 2012)

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. (June 2012)

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. (May 2012)

Asset management

The Alternative Investment Fund Managers Directive – Theory Becomes Reality: Rosali Pretorius and Emma Radmore wrote an article on implementation of the AIFMD for the Global Asset Management & Servicing Review 2013/14 published by Euromoney Yearbooks.

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. (July 2012)

Another Stable Door?: Emma Radmore and Katharine Harle wrote an article for Thomson Reuters Complinet on IOSCO's proposals for complex product distribution. (April 2012)

Enforcement and Litigation

It's all in the detail: a cautionary tale for handling complaints: Richard Caird and Felicity Ewing have written an article on the FCA's fine on Policy Administration Services.

Having Your Cake and Eating It: FOS Award is no Bar to Issuing Proceedings: Katharine Harle has written an article for Compliance Monitor on the High Court award in Clark and another v. In Focus Asset Management & Tax Solutions Ltd. (January 2013)

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. (September 2012)

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. (August 2012)

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. (March 2012)

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Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.