UK: Financial Regulatory Developments (FReD) - 3 January 2014

Last Updated: 3 January 2014


  • Council and EP agree on CSMAD
  • Commission adopts AIFMD technical regulation
  • Treasury confirms AIFMD transposition change
  • FCA fines broker for inadequate ABC controls
  • PRA implements CRD 4
  • PRA feeds back on RRPs


EU Legislation Tracker

Please follow the relevant link to see the European Parliament's (EP) "OEIL" voting date forecasts and access EP reports and positions on major legislative initiatives:

Bank Recovery and Resolution Directive (BRRD) OEIL file

Single Resolution Mechanism Regulation (SRM Regulation) OEIL file


Money Market Funds Regulation (MMFR) OEIL file

Directive on European long-term investment funds (ELTIF Regulation) OEIL file

Central Securities Depositories Regulation (CSD Regulation) OEIL file

Recast Markets in Financial Instruments Directive (MiFID 2) OEIL file

Markets in Financial Instruments Regulation (MiFIR) OEIL file

Market Abuse Regulation (MAR) OEIL file

Benchmarks Regulation OEIL file

Directive on Criminal Sanctions for Market Abuse (CSMAD) OEIL file

Fourth Money Laundering Directive (MLD4) OEIL file

Recast Insurance Mediation Directive (IMD2) OEIL file

Payment Accounts Directive (PAD) OEIL file

Key Information Document for Packaged Retail Investment Products Regulation (PRIPs Regulation) OEIL file

Review of the Payment Services Directive (PSD2) OEIL file

Types of Alternative Investment Fund Managers RTS OEIL file

Contact: Emma Radmore or Juan Jose Manchado

Financial Stability Board (FSB)

FSB publishes responses on haircuts: FSB has published the responses it received to its consultation on a proposed regulatory framework for haircuts on non-centrally cleared securities financing transactions. It plans to develop its policy recommendations in the second quarter of 2014. (Source: FSB Publishes Responses on Haircuts)

Contact: Rosali Pretorius or Luca Salerno

Presidency of the EU

Lithuania ends presidency with SRM agreement: The Lithuanian presidency of the EU ended at the end of 2013 with agreements on the SRM and the CSD Regulation. During its term, it progressed to political agreement several parts of the banking union, including also the political agreement on the BRRD and the Directive on Deposit Guarantee Schemes. All these initiatives should now be agreed before the end of the current parliament. See FReD 20 December 2013. (Source: Political Agreement on SRM and Political Agreement on CSDR)

Contact: Rosali Pretorius or Juan Jose Manchado

Council of the EU (Council)

Council and EP agree on CSMAD: The Council's Committee of Permanent Representatives (COREPER) and EP have agreed the text of CSMAD. CSMAD will require Member States to impose maximum terms of imprisonment of at least:

  • four years for offences related to insider dealing and to recommending or inducing another person to engage in insider dealing and market manipulation; and
  • two years for offences related to unlawful disclosure of inside information.

Member States are free to set more stringent penalties if they wish. Following this agreement, both MAR and CSMAD can be adopted at first reading. (Source: Council and EP Agree on CSMAD)

Contact: Luca Salerno or Josie Day

Council agrees PAD general approach: COREPER has agreed the general approach for PAD and will now negotiate with EP with the aim of adopting the Directive at first reading. (Source: Council Agrees PAD General Approach)

Contact: Andrew Barber or Josie Day

Council publishes final BRRD compromise text: The Council has published the final compromise text for the BRRD. See also FReD 20 December 2013. (Source: Council Publishes BRRD Compromise Text)

Contact: Rosali Pretorius or Andrew Barber

European Commission (Commission)

Commission adopts AIFMD technical regulation: The Commission has adopted a delegated Regulation under the Alternative Investment Fund Managers Directive (AIFMD). The legislation sets out the factors that determine whether an alternative investment fund (AIF) is open- or closed-ended for the purposes of its manager's (AIFM) regulatory status. (Source: Commission Adopts AIFMD Technical Regulation)

Contact: Rosali Pretorius or Kam Dhillon

European Banking Authority (EBA)

EBA consults on PII cover for mortgage intermediaries: EBA is consulting on a draft Regulatory Technical Standard (RTS) on the minimum monetary amount of Professional Indemnity Insurance (PII) or similar guarantee that firms covered by the MCD should hold. The paper identifies four options for calculating the requirement and asks for comment by 18 March 2014. (Source: EBA Consults on PII Cover for Mortgage Intermediaries)

Contact: Andrew Barber or Josie Day

EBA publishes CCP ITS: EBA has published its final draft Implementing Technical Standards (ITS) on the reporting of the hypothetical capital of a Central Counterparty (CPP) for the purposes of the European Market Infrastructure Regulation (EMIR) as amended by the Capital Requirements Regulation (CRR). It has sent the ITS to the Commission for formal adoption. (Source: EBA Publishes CCP ITS)

Contact: Rosali Pretorius or Luca Salerno

EBA publishes supervisory disclosure ITS: EBA has published its final draft ITS on the format, structure, contents list and annual publication date of the supervisory information to be disclosed by competent authorities in the banking sector under the fourth Capital Requirements Directive (CRD 4). The standards take the form of a number of templates designed for use in specific situations. The ITS are now with the Commission for adoption. (Source: EBA Publishes Supervisory Disclosure ITS)

Contact: Rosali Pretorius or Andrew Barber

EBA publishes unrealised gains advice: EBA has published its technical advice to the Commission on possible treatments of unrealised gains measured at fair value. The advice says unrealised gains show significant volatility and may disappear quickly in certain market conditions. Since at times unrealised gains could represent a significant proportion of credit institutions' own funds, EBA sees advantages in introducing prudential filters for unrealised gains. (Source: EBA Publishes Unrealised Gains Advice)

Contact: Rosali Pretorius or Luca Salerno

EBA consults on liquidity and funding risk methodology: EBA is consulting on a draft methodology for the calculation of liquidity and funding risk under its supervisory reporting and evaluation process (SREP). It hopes the paper will help supervisors and colleges reach a consistent view on liquidity for the first time. It asks for comments by 28 February 2014. (Source: EBA Consults on Liquidity and Funding Risk Methodology)

Contact: Rosali Pretorius or Andrew Barber

EBA updates single rulebook Q&A: EBA has published several new answers in its single rulebook Q&A. (Source: EBA Updates Single Rulebook Q&A)

Contact: Andrew Barber or Juan Jose Manchado

EBA consults on funding plans: EBA is consulting on draft Guidelines which set out harmonised definitions and templates for funding plans of credit institutions. The consultation follows a request from the European Systemic Risk Board (ESRB) and the guidelines seek to establish consistent, efficient and effective supervisory practices by harmonising templates and definitions, in order to facilitate the reporting of funding plans by credit institutions. EBA asks for comment by 20 March 2014. (Source: EBA Consults on Funding Plans)

Contact: Rosali Pretorius or Andrew Barber

EBA publishes RTSs on market and CVA risk: EBA has published its final draft RTSs on the definition of market and Credit Valuation Adjustment (CVA) risk under the CRR. The RTS on market risk define "market" in relation to the calculation of the overall net position in equity instruments under the market risk standardised rules. The RTS on CVA risk, which are accompanied by an opinion, relate to the determination of a proxy spread and the specification of a limited number of smaller portfolios. They set out the data quality requirements and the minimum granularity of the attributes of rating, industry and region that institutions should consider when estimating an appropriate proxy spread for the determination of the own funds requirements for CVA. The Commission now needs to adopt the RTSs as Regulations. (Source: EBS Publishes RTSs on Market and CVA Risk)

Contact: Rosali Pretorius or Juan Jose Manchado

EBA publishes RTS on geographical location of exposures: EBA has published its final draft RTS on how to establish the geographical location of credit, trading and securitisation exposures for the purposes of CRD 4. The main principle for identifying the geographical location of relevant exposures is the residence of the obligor. For trading book exposures, banks that use internal models to calculate the geographical location of trading book exposures will have to work out the location of these exposures by running their internal models on sub-portfolios split by geographical location. The Commission must now adopt the RTS. (Source: EBA Publishes RTS on Geographical Location of Exposures)

Contact: Rosali Pretorius or Juan Jose Manchado

EBA publishes guidelines on FX lending: EBA has published its guidelines for capital measures for FX lending to unhedged borrowers under the SREP. They set out the method regulators should use when FX lending risk is deemed to be material and also when capital measures are deemed to be an appropriate method of treating this risk. They also allow for regulators to use other supervisory measures where they think it appropriate. EBA has sent the guidelines to ESRB. (Source: EBA Publishes Guidelines on FX Lending)

Contact: Luca Salerno or Juan Jose Manchado

EBA publishes liquidity reports: EBA has submitted to the Commission reports on:

  • the impact assessment for liquidity coverage requirements; and
  • appropriate uniform definitions of extremely high quality liquid assets and high quality liquid assets and on operational requirements for liquid assets.

On the basis of these reports, the Commission is due to make delegated legislation by June 2014. (Source: EBA Publishes Liquidity Reports)

Contact: Rosali Pretorius or Andrew Barber

EBA consults on disclosure of encumbered and unencumbered assets: EBA is consulting on draft guidelines on disclosure of encumbered and unencumbered assets, following an ESRB recommendation. The guidelines set out three disclosure templates that institutions will have to fill in together with some additional information about the importance of encumbrance in their individual funding model. EBA asks for comments by 20 March 2014. (Source: EBA Consults on Disclosure of Encumbered and Unencumbered Assets)

Contact: Rosali Pretorius or Luca Salerno

EBA updates on banking sector risks: EBA has published its half-yearly report on the risks and vulnerabilities the banking sector faces. It says there have been improvements in market confidence, funding and capital positions. However, it is worried about ongoing uncertainties on asset valuations and future profitability in a fragile economic environment. It also singles out the risks of detrimental business practices and suggests possible measures for addressing vulnerabilities through coordinated policy and supervisory actions.
(Source: EBA Updates on Banking Sector Risks)

Contact: Emma Radmore or Josie Day

European Insurance and Occupational Pensions Authority (EIOPA)

EIOPA publishes risk dashboard: EIOPA has published its quarterly risk dashboard. It says there has been little change in the risks to the insurance sector since its September update. The impact of the weak macro-economic situation remains a key concern. (Source: EIOPA Publishes Risk Dashboard)

Contact: Emma Radmore or Andrew Barber

European Securities and Markets Authority (ESMA)

ESMA updates EMIR Q&As: ESMA has updated its Q&As on EMIR to address the firms covered, and the scope and content of reporting, for on-exchange derivatives. ESMA concludes that the following counterparties will have to report their trades to trade repositories:

  • CCPs clearing the trades;
  • clearing members of the CCP clearing the trades;
  • investment firms for the purposes of the Markets in Financial Instruments Directive (MiFID) executing derivative trades on a trading venue of which they are members; and
  • counterparties to derivative contracts that do not fall into any of the categories above, except when they are exempt because of their status.

ESMA says any of these participants must report all derivative contracts they have concluded with any of the other participants. Clearing members and their clients need to report separately, but firms that are not a counterparty to a derivative contract do not have to report their trades. (Source: ESMA Updates EMIR Q&As)

Contact: Rosali Pretorius or Luca Salerno

ESMA consults on ETF and UCITS issues: ESMA is consulting on a potential change to its February 2013 guidelines on Exchange Traded Funds (ETFs) and other UCITS issues. Many firms have asked ESMA to reconsider its position on the requirements on collateral diversification on the basis that they have a significant adverse impact on UCITS' collateral management policies. ESMA now seeks views on the merits of revising the requirements on collateral diversification, suggests how the requirements should change and also consults on the best ways to address stakeholders' concerns while retaining the appropriate level of investor protection. It asks for comment by 31 January 2014. (Source: ESMA Consults on ETF and UCITS Issues)

Contact: Rosali Pretorius or Kam Dhillon



Banking Reform Act published: Following the granting of Royal Assent, the Finanical Services (Banking Reform) Act 2013 has been published. (Source: Financial Services (Banking Reform) Act 2013)

Contact: Andrew Barber or Emma Radmore

HM Treasury (Treasury)

Treasury confirms AIFMD transposition change: Treasury has confirmed that any authorised firm that has applied for AIFM permission before 22 July 2014 will be able to carry on its business while FCA considers the application. FCA had previously said firms had to have their permissions in place by that date. (Source: Treasury Confirms AIFMD Transposition Change)

Contact: Rosali Pretorius or Kam Dhillon

Treasury to propose cheque deposit by phone: Treasury is to unveil proposals to allow customers to pay cheques into their bank accounts by using smartphones. It says the facility will not only save customers the need to queue in branches but will also allow the funds to reach their accounts more quickly. (Source: Treasury to Propose Cheque Deposit by Phone)

Contact: Andrew Barber or Josie Day


Financial Conduct Authority (FCA)

FCA fines broker for inadequate ABC controls: FCA has fined JLT Specialty Limited £1,876,000 for failing to have in place appropriate checks and controls to guard against the risk of bribery or corruption (ABC) when making payments to overseas third parties. The firm, an insurance broking and risk management company, appointed overseas introducers without carrying out appropriate due diligence on them or properly assessing the risks they or the business they introduced might pose to the firm. FCA found the failings, which lasted for over three years, were made worse by the fact that FCA had warned the firm that it needed to make improvement and the firm had in place the ability to make checks but did not use it properly. FCA required the firm to vary its permissions until FCA was satisfied its procedures could and did mitigate the risk of doing business with overseas introducers and increased the penalty because of the firm's failure to respond adequately to numerous warnings from FCA, both directed at it and addressed to all firms. Eventually, the firm settled early and FCA stressed there was no evidence of bribery or of intent to bribe, but said the firm's lack of appropriate procedures meant the overseas introducers could have used the money the firm paid them to pay bribes. (Source: FCA Fines Broker for Inadequate ABC Controls)

Contact: Emma Radmore or Howard Cohen

FCA pleased about Swift Trade judgment: FCA has made a statement following the Court of Appeal's judgment that the Canadian company Swift Trade Inc had, as FCA had decided, committed market abuse. The then Financial Services Authority (FSA) had published its decision notice in August 2011. Swift Trade had appealed to the Tribunal and then to the Court of Appeal. Now both have upheld FCA's interpretation of the scope of the market abuse offence. (Source: FCA Pleased about Swift Trade Judgment)

Contact: Rosali Pretorius or Luca Salerno

FCA and EBA warn on virtual currencies: FCA and EBA have issued a warning to consumers advising them to consider the risks of investing in "virtual" currencies. They say the risks include theft and loss of value. (Source: FCA and EBA Warn on Virtual Currencies)

Contact: Andrew Barber or Emma Radmore

FCA warns on graphene investments: FCA has warned investors against investing in graphene, a carbon product. FCA believes some suspected boiler rooms are offering graphene investments to retail investors alongside other rare earth metals. FCA is not convinced there is a viable retail market for this type of investment. (Source: FCA Warns on Graphene Investments)

Contact: Howard Cohen or Luca Salerno

Prudential Regulation Authority (PRA)

PRA implements CRD 4: PRA has published its feedback statement and final form rules on its implementation of CRD 4. These rules are the first that PRA has made under its new style of rulebook. Until PRA formally launches the new rulebook format in 2015 it will put all its rules within the current online Handbook format as pdfs, to distinguish new rules from the rules it inherited from FSA. PRA has in the main implemented the changes it consulted upon, with minor changes. It has not yet made the capital buffers rules, but will make them in the form it consulted on once Treasury has made the necessary rules designating the authority responsible for buffers. The new rules and standards cover:

  • Pillar 2 (with certain transitional arrangements and the promise to consult further during 2014);
  • governance and remuneration: PRA will revise its standards when EBA issues updated guidance;
  • passporting: again PRA will make further changes once the RTSs and ITSs that EBA has to make take effect;
  • definition of capital;
  • credit risk;
  • counterparty credit risk;
  • market risk;
  • operational risk;
  • groups;
  • large exposures;
  • liquidity;
  • reporting and disclosure; and
  • waivers and CRR permissions.

PRA has made:

  • Prudential Sourcebook for Banks, Building Societies and Investment Firms (Liquidity Standards) Amendment Instrument 2013;
  • Capital Requirements Regulation (Reporting) Amendment Instrument 2013;
  • Capital Requirements Directive (Governance and Remuneration) Amendment Instrument 2013;
  • Capital Requirements Directive (Passporting) Amendment Instrument 2013;
  • Capital Requirements Directive (Disapplication) Instrument 2013;
  • Capital Requirements Directive IV (Consequential Amendments) Instrument 2013; and
  • PRA Rulebook CRR Firms Instrument 2013.

It has also made supervisory statements on:

  • the Internal Capital Adequacy Assessment Process (ICAAP) and the SREP;
  • stress testing, scenario analysis and capital planning;
  • CRD 4 and capital;
  • the Basel 1 floor;
  • securitisation;
  • the standardised approach;
  • internal ratings based approaches;
  • counterparty credit risk;
  • market risk;
  • operational risk;
  • groups;
  • large exposures; and
  • credit risk mitigation.

It has also made changes to the approved persons rules, including banning firms from appointing the same person to the chairman and chief executive roles. In the main, all the new rules took effect from 1 January 2014. (Source: PRA Implements CRD 4 and CRD 4 Changes to PRA Approved Persons)

Contact: Rosali Pretorius or Andrew Barber

PRA feeds back on RRPs: PRA has published a feedback statement and its final rules on recovery and resolution plans (RRPs) and accompanying supervisory statements. It has not significantly amended its recovery policy statement although it stresses it has slightly different expectations of firms now (and this may change further when the BRRD is finalised). On resolution, it has changed its policy on information collection. (Source: PRA Feeds Back on RRPs)

Contact: Andrew Barber or Howard Cohen

PRA feeds back on rule changes: PRA has fed back on some chapters of its occasional consultation paper on minor rule changes. It has made the:

  • Controllers and Close Links Reporting (Amendment) Instrument 2013, which amends the Supervision Manual (SUP) and came into force partly on 31 December 2013, with the remainder to come into force on 1 March 2014;
  • Supervision Manual (Reporting and Audit Requirements) (Amendment) Instrument 2013. This also amends SUP in respect of the Mortgage Lending and Administration Return and came into force on 31 December 2013;
  • Prudential Reporting Requirements for Insurers (Amendment) Instrument 2013: this amends the Interim Prudential Sourcebooks for Friendly Societies and for Insurers from 31 December 2013; and
  • Compensation Sourcebook (COMP) (Large Unincorporated Associations) Instrument 2013. This amends the Glossary and COMP from 17 December 2013.

It will feed back on the rest of the paper early in 2014. (Source: PRA Feeds Back on Rule Changes)

Contact: Emma Radmore or Juan Jose Manchado


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

Basel consults on securitisation reform: Basel is consulting further on revisions to the securitisation framework. The consultation includes draft standards for treatment of securitisations within the risk-based framework. The major changes since the first consultation relate to:

  • the hierarchy of approaches: the proposal is to use a framework like that for credit risk, including giving banks the ability to use an internal ratings-based approach if their supervisor allows it, and to use an external ratings-based approach where an internal approach will not work. However, it will not be mandatory to base capital requirements on external ratings. If neither rating-based approach is appropriate, banks can use the standardised approach; and
  • the calibration of capital requirements. Changes to the original proposals should lead to greater consistency with the underlying credit risk framework. The paper says there would be meaningful reductions in capital requirements, but the standards would be more stringent than under the existing framework. There is also a proposal to set a 15% risk-weight floor for all approaches, instead of the 20% floor originally proposed.

The consultation closes on 21 March 2014. (Source: Basel Consults on Securitisation Reform)

Contact: Ed Hickman or Tom Parachini

International Organisation of Securities Commissions (IOSCO)

IOSCO consults on critical services methodology: IOSCO is consulting on the assessment methodology for the oversight expectations applicable to critical service providers. This complements the 2012 Principles for financial market infrastructures (FMIs), which include an annex on the Oversight expectations applicable to critical service providers. IOSCO comments that an FMI may be dependent on the continuous and adequate functioning of third-party service providers that are critical to its operations. It now proposes an assessment methodology and guidance for authorities in assessing an FMI's critical service providers against the oversight expectations in the 2012 Principles. It will also help the critical service providers to comply with the oversight expectations. IOSCO asks for comments by 20 February 2014. (Source: IOSCO Consults on Critical Services Methodology)

Contact: Rosali Pretorius or Josie Day

IOSCO reports on retail structured products: IOSCO has published its final report on the regulation of retail structured products. The report sets out a regulatory toolkit including 15 tools regulators might use to better protect investors buying these products. The report covers potential:

  • regulatory approach to retail structured products;
  • regulation of the product design and issuance;
  • regulation of product disclosure and marketing;
  • regulation of the product distribution; and
  • regulation of post-sales practices.

(Source: IOSCO Reports on Retail Structured Products)

Contact: Andrew Barber or Josie Day

IOSCO publishes Commission letter on CCPs: IOSCO has published Michel Barnier's response to a letter from Asia Pacific securities regulators on equivalence of CCPs in the region for the purposes of EMIR and the CRR. (Source: IOSCO Publishes Commission Letter on CCPs)

Contact: Rosali Pretorius or Luca Salerno

Payments Council

Payments Council creates multiple signatory flexibility: The Payments Council has announced an initiative that will allow charities and other bodies that require more than one signatory to banking transactions to enter into transactions by methods other than cheques. (Source: Payments Council Creates Multiple Signatory Flexibility)

Contact: Andrew Barber or Josie Day


New This Week

It is not a misrepresentation to state interest rate swaps carry no premium: Sam Coulthard, Richard Caird and Thomas Rocher have written an article on the summary in another swap mis-selling claim, Nextia Properties Limited v. National Westminster Bank plc and The Royal Bank of Scotland plc.

Financial Crime

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. (updated October 2012)

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. (August 2013)

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. (August 2013)

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)

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

Consumer Credit Regulation: Are you ready for the seismic shift?: Please contact Andrew Barber, Emma Radmore or Howard Cohen if you have any questions about what you need to do to prepare for the transfer of consumer credit regulation to FCA.

Are you clear on EMIR: Rosali Pretorius and Emma Radmore have written an article for Compliance Monitor on EMIR's application and recent developments. (October 2013)

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.) (August 2013)

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

Court of Appeal dismisses interest rate swap appeal: Richard Caird and Kattalin Truman have written a briefing on the Court of Appeal judgment in the appeal by Mr Green and Mr Rowley against the decision that RBS had not missold an interest rate swap. (October 2013)

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. (August 2013)

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)

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
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.

4 Oct 2017, Workshop, London, UK

We are hosting an interactive workshop where we will run a mock High Court trial of an employee competition case – where the members of the audience are the judges. The session, aimed at in-house counsel and HR professionals, will offer an insight as to how disputes involving employees moving to a competitor play out in practice.

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Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


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.