European Union: Financial Regulatory Developments (FReD) – 10 July 2015

European Union and International

Financial Stability Board (FSB)

FSB announces review on policy framework for shadow banking: FSB has published a summary of the terms of reference for a review of its high-level policy framework for non-bank financial entities other than money market funds. It developed the framework in 2013 and now plans to review how its member jurisdictions have implemented the overarching policy. It will do this by means of a questionnaire and then asking for industry and public feedback. It will be considering whether all relevant activities would currently be captured by the framework, what information allows regulators to assess the risks and how to enhance public disclosure of risks and mitigate financial stability risks that result from the activities. FSB aims to report in early 2016. (Source: FSB Announces Shadow Banking Framework Review)

European Banking Authority (EBA) 

ESAs consult on qualifying holdings: The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) are consulting on updating the guidelines for assessing changes in control in the regulated sector. The guidelines address the prudential considerations for regulators when they receive applications for changes in qualifying holdings. The guidelines look at:

  • what regulators should consider to be acting in concert or having a significant influence;
  • how regulators should view indirect acquisitions;
  • factors to consider in assessing whether there has been a decision to acquire;
  • proportionality;
  • information necessary to enable regulators to make an assessment and the application and assessment process;
  • the five key prudential assessment criteria on reputation of the acquirer; regulation and experience of those who will direct the target's business; financial soundness of the acquirer; compliance with relevant prudential requirements of the target; and suspicion of money laundering or terrorist financing by the acquirer; and
  • information sharing and co-operation between authorities. 

There will be a public hearing on 20 August and the consultation closes on 2 October. (Source: ESAs Consult on Qualifying Holdings)

EBA agrees Commission amendments on currencies with constraints: EBA has issued an opinion to the Commission that supports amending the draft Regulatory Technical Standards (RTS) on derogations for currencies that feature constraints on the availability of liquid assets. EBA has sent amended RTS to the Commission agreeing the Commission's amendments. (Source: EBA Agrees Commission Amendments on Currencies with Constraints Opinion)

EBA updates Q&As: EBA has added a new question to the Questions and Answers (Q&As) on the single rulebook. (Source: EBA Updates Q&As)

EBA publishes banking sector risk assessment: EBA's latest six-monthly report on the risks and vulnerabilities of the EU banking system covers the six-month period to 12 June. EBA points out in a cover note that, as a result, it does not address the current challenges posed by the situation in Greece. Even so, although it notes increased strength of capital, it concludes the markets remain fragile and volatile, although there has been no real challenge to accessing funding. It also notes banks may need to make further changes to their business models, although many have already introduced change. (Source: EBA Publishes Risk Assessment of the European Banking System

EBA finalises BRRD RTS: EBA has published its final draft RTS under the Bank Recovery and Resolution Directive (BRRD) on:

  • notifications and notice of suspension: They specify the process and the information required, for firms to notify to their supervisors, and for the supervisors in turn to notify the resolution authorities, when a banking institution under their supervision is failing or likely to fail. They also address where the authorities consider a bank is failing or likely to fail and there is no reasonable alternative to it doing so;
  • operational organisation of resolution colleges and the resolution planning process;
  • the minimum requirement for own funds and eligible liabilities (MREL): These clarify how each institution's capital requirements should be linked to the amount of MREL needed to absorb losses. EBA says the standards should be consistent with FSB recommendations;
  • the contractual recognition of bail-in: These help to determine the cases in which the requirement to include the contractual term for recognising the bail-in power cross-border does not apply. In particular, there will be no requirement where an adequate statutory regime in the relevant third country or an international agreement exists which provides for an administrative or judicial procedure to secure recognition of the application of the write-down and conversion powers by an EU resolution authority. Following consultation, the RTS now say that liabilities that are fully secured in accordance with EU regulatory requirements or equivalent third country law need not include the contractual term. Finally, they specify the minimum contents of the contractual term. EBA says it aims to strike a balance between the need for harmonisation and the need for flexibility to take account of any issues arising in relation to a specific third country law, type of liability or arbitrage risk. See also our article; and
  • independent valuers: These set out the general criteria for assessing valuers to determine whether they comply with the legal requirement of independence for the purposes of performing valuation tasks under the BRRD.

It also issued final form Implementing Technical Standards (ITS) on the eligibility of institutions for simplified obligations in the context of recovery planning, resolution planning and resolvability assessments and on the procedures, forms and templates for submitting information on resolution plans.

(Source: EBA Finalises BRRD Notifications RTS, EBA Finalises Resolution College RTS, Bail-In RTS and EBA Publishes Independent Valuers RTS and EBA Issues Final Form ITS)

EBA consults on capital requirements for mortgage exposures: EBA is consulting on RTS addressing conditions for regulators to take into account when tightening capital requirements for mortgage exposures. It asks for comments by 6 October. (Source: EBA Consults on Capital Requirements for Mortgage Exposures)

EBA publishes securitisation advice: EBA has published its full advice to the Commission on qualifying securitisations. EBA proposes a more risk-sensitive approach to capital regulation for long-term securitisation instruments, and for asset-backed commercial paper. It wants to lower the capital charges in the newly published revision of the Basel securitisation framework to recognise the relative lower riskiness of qualifying products, while always keeping regulatory capital within the perimeter of a prudential surcharge. (Source: EBA Publishes Securitisation Advice)

European Insurance and Occupational Pensions Authority (EIOPA)

EIOPA publishes product intervention advice: EIOPA has sent the Commission its technical advice on criteria and factors to be taken into account in applying product intervention powers under the Regulation on packaged retail and insurance-based investment products (PRIIPs). EIOPA says these should be non-exhaustive and high level and that it would not be practicable to set quantitative thresholds for intervention. It invites the Commission to consider the need to set the list as an exhaustive list for EIOPA to ensure EIOPA acts within its powers when making a decision. It sees many benefits to this approach, including that the list would be a benchmark against which to review EIOPA in the case of an application for judicial review of a decision it makes. The factors EIOPA notes, and with each of which it includes more detailed elements, to consider are the:

  • degree of complexity of the product or practice;
  • size of the potential problem or detriment;
  • types of investors involved;
  • degree of transparency;
  • particular features of the product or transaction, including any leverage;
  • degree of disparity between expected return or investor benefit and the risk of loss;
  • ease and cost for an investor of switching or selling a product;
  • pricing and associated costs;
  • degree of innovation;
  • selling practices associated with the product;
  • situation of the product issuer; 
  • risk to market functioning and integrity; and 
  • risk of disruption to systemically important institutions or any national financial system.

(Source: EIOPA Publishes Product Intervention Advice)

EIOPA consults on infrastructure investment risk categories: EIOPA is consulting on its advice to the Commission on identifying and calibrating infrastructure investment risk categories. It asks for comments by 9 August. (Source: EIOPA Consults on Infrastructure Investment Risk Categories)

EIOPA publishes Set 2 of Solvency 2 Technical Standards and Guidelines: EIOPA has submitted to the Commission its second set of draft Implementing Technical Standards (ITS) and Guidelines for Solvency 2. The ITS and Guidelines, which cover all three pillars of Solvency 2, attracted over 4,500 comments when EIOPA consulted on them. The draft ITS cover: 

  • list of regional governments and local authorities;
  • index for the equity dampener; 
  • currency shock for currencies pegged to the euro;
  • standard deviations for health insurance obligation subject to health risk equalisation system; 
  • supervisory transparency and accountability; 
  • capital add-ons; 
  • submission of information to the supervisory authorities;
  • procedures, formats and templates of the solvency and financial condition report; and 
  • exchange of information on a systematic basis with colleges. 

Additional reports include those on:

  • assessing external credit assessments;
  • recognition and valuation of assets and liabilities other than technical provisions;
  • implementation of the long-term guarantee measures;
  • extension of the recovery period in exceptional adverse situations; 
  • methods for determining the market shares for reporting;
  • reporting for financial stability purposes;
  • reporting and public disclosure; and 
  • supervision of branches of third-country insurance undertakings. 

Two further ITS, on mapping the ECAIs and on application of the equity transitional, will follow. (Source: EIOPA publishes Set 2 of Solvency 2 Technical Standards and Guidelines)

EIOPA consults on pan-European pension product: EIOPA is consulting on creating a standardised pan-European Personal Pension Product (PEPP). It wants to create a simple, transparent product, which can be sold across borders. It asks for comments on its thoughts by 5 October. (Source: EIOPA Consults on Pan-European Pension Product)

European Securities and Markets Authority (ESMA)

ESMA reports on interoperability: ESMA has published its final report on interoperability arrangements between EU central counterparties (CCPs) under the European Market Infrastructure Regulation (EMIR). ESMA wants to extend the relevant EMIR requirements to exchange traded derivatives and, later, probably also to OTC derivatives. The report looks at EMIR's provisions and what links are in place, and then analyses and explains the recommendation for an extension. (Source: ESMA Reports on Interoperability)

ESMA renews Greek short-selling ban: ESMA has announced its agreement to an extension of the short-selling ban that temporarily prohibits transactions in any financial instrument that creates, or increases, a net short position on any of the shares admitted to trading on the Athens Exchange and Multilateral Trading Facility "EN.A". The ban will now continue until midnight on 13 July. (Source: ESMA Renews Greek Short-Selling Ban)

ESMA publishes structured deposit responses: ESMA has published the responses it received to its consultation on draft guidelines for complex debt products and structured deposits. (Source: ESMA Publishes Structured Deposit Responses)

UK Government and Parliament

Bank of England (BoE)

BoE publishes FPC minutes: BoE has published the results of the Financial Policy Committee (FPC) meeting at the end of June. At the meeting FPC:

  • directed PRA to implement, in relation to each major UK bank and building society on a consolidated basis, measures to:
    • require it to hold sufficient Tier 1 capital to satisfy a minimum leverage ratio of 3%;
    • ensure it ordinarily holds sufficient Tier 1 capital to satisfy a countercyclical leverage ratio buffer rate of 35% of its institution-specific countercyclical capital buffer rate; and
    • ensure that if it is a Global Systemically Important Institution (G-SII) it ordinarily holds sufficient Tier 1 capital to satisfy a G-SII additional leverage ratio buffer rate of 35% of its G-SII buffer rate.

The minimum proportion of common equity Tier 1 capital institutions should hold is 75% in respect of the minimum leverage ratio requirement and 100% in respect of each of the countercyclical leverage ratio buffer and the G-SII additional leverage ratio buffer; 

  • recommended to PRA that in implementing the minimum leverage ratio requirement it specifies that additional Tier 1 capital should only count for these purposes if the relevant capital instruments specify a trigger event that occurs when the common equity Tier 1 capital ratio of the institution falls below a figure of not less than 7%;
  • recommended that BoE, PRA and FCA work with firms to further improve cyber resilience; and
  • set the countercyclical capital buffer rate for UK exposures at 0%.

(Source: BoE Publishes FPC Minutes)

Ministry of Justice (MoJ)

MoJ updates on PBA claims: MoJ has noted the increase in activity around claims for mis-sold packaged bank accounts (PBAs) and has found poor practices over how claims management companies (CMCs) handle them. It notes that complaints about PBAs should not be approached in the same way as those about payment protection insurance and that no complainant should make a complaint without understanding the rules that applied at the relevant time. It says CMCs must conduct proper fact finds with customers before they can assess whether to make a complaint to the FOS. It notes guidance that FOS gave to CMCs in 2013, which it says should apply to PBA complaints, and warns CMCs that failure to follow this, or to present the complaint in the form FOS has developed, could leave CMCs in breach of the standards they should follow. It says it will take action if FOS alerts it to low rates of upholding complaints. (Source: MoJ Updates on PBA Claims)

HM Treasury (Treasury)

Treasury announces new ISAs for crowdfunding loans and further consultation: The consultation response document summarises the comments received in response to the consultation on including peer-to-peer loans in ISAs and the government's decisions regarding policy design and implementation. This includes the decision to introduce a new type of ISA for peer-to-peer loans – the Innovative Finance ISA – alongside cash ISAs and stocks and shares ISAs. The government intends to publish draft legislation for technical consultation later this year, with a view to legislating to allow peer-to-peer loans to be held in an ISA from 6 April 2016. The further consultation on extending stocks and shares ISAs to include investments offered via crowdfunding platforms will run until 30 September.  (Source: ISA Qualifying Investments: Consultation on Including Peer-to-peer Loans and ISA Qualifying Investments: Consultation on Whether to Include Investment Based Crowdfunding)

Treasury announces summer budget: The summer budget, announced on 8 July, includes:

  • introducing a new 8% tax on banking sector profits from January 2016; 
  • introducing a phased reduction in the rate of the bank levy from 0.21% to 0.1% between 2016 and 2021; 
  • excluding UK banks' overseas subsidiaries from the bank levy from January 2021;
  • clamping down on carried interest in funds so that individuals to whom a gain arises in the form of carried interest are taxed on their true, economic gain. Capital gains tax will be charged on the full amounts individuals receive in respect of their carried interest, with deductions only in respect of sums actually given by the individuals as consideration for acquiring the right to that carried interest. The changes will not affect arm's length co-investing. This measure takes effect in relation to any carried interest arising on or after 8 July; and
  • a proposal that criteria for determining fund managers' performance-linked rewards should be taxed as income, on which HM Revenue and Customs seeks comment by 30 September.

(Source: Summer Budget 2015)


Treasury reviews FPC remit: George Osborne has written to Mark Carney setting out Treasury's views on FPC's remit. He notes that FPC has focused on banking sector resilience and can now give its attention to the wider financial sector. He also wants it to focus on identification and mitigation of both systemic and non-systemic risks, including cyber risks. (Source: Treasury Reviews FPC Remit)

Treasury updates sanctions: Treasury has updated the sanctions lists in respect of terrorism and terrorist finance and the Ukraine. (Source: Treasury Updates Sanctions)

Legislation

Treasury makes deposit protection changes: Treasury made the Deposit Guarantee Scheme (Amendment) Regulations 2015 on 2 July and the changes took effect on 3 July. The Regulations implement the transitional arrangements for depositors who had protected deposits in excess of £75,000 when the FSCS limit was lowered (see PRA below for further detail). (Source: Treasury Makes Deposit Protection Changes)

UK Financial Services and Markets Regulators

Financial Conduct Authority (FCA)

FCA publishes annual report: FCA's Annual Report for 2014-2015 highlights the key areas of FCA's work in the past year as:

  • its work on regulating consumer credit, which will bring the number of regulated firms to 73,000;
  • launching Project Innovate;
  • implementing the new Senior Managers Regime (SMR);
  • market studies, including cash savings, retirement income and review of competition in the wholesale sector; and
  • its response to the Davis review.

The report appends details of skilled persons reviews and enforcement activity during the year. It used its powers under s166 Financial Services and Markets Act 53 times in the year, with over half the reviews relating to conduct of business issues and nearly half the reviews relating to firms within the C4 conduct category. On enforcement, FCA closed 115 cases over the year, and had 226 open cases at year end. Open cases related predominantly to market abuse and integrity issues and to mis-selling, and also to wholesale conduct and unauthorised business. FCA also summarises feedback on its enforcement activities from firms it investigated during the year and details on the length of time it has taken to resolve issues using various tools. (Source: FCA Publishes Annual Report)

FCA advises on de-risking: FCA has committed its support to the Financial Action Task Force (FATF) on de-risking drivers. It says it expects banks to be particularly interested in FATF's comments on correspondent banking, and specifically that there is no routine requirement that banks carry out full customer due diligence on each relevant customer of a bank for which they provide correspondent banking services (Source: FCA Advises on De-Risking)

FCA updates on SMR: FCA has published its feedback and final rules on introducing the SMR, including the Certification Regime (CR) and Conduct Rules. It:

  • highlights the minor changes it has made since it published its near-final rules (specifically, on non-executive directors);
  • looks at practical issues firms will face in transitioning to the new regime. FCA hopes it has now made several aspects of its rules and expectations clearer;
  • provides specific guidance on areas such as where individuals share responsibility, and uses examples to help firms understand which rules will apply in certain scenarios; 
  • recognises the potential anomalies for investment advisers as some will be covered by the CR and others by the approved persons regime, and says it will consider in due course whether to make further changes to the approved persons regime to address this;
  • says it will also report further and separately on regulatory references;
  • in relation to the Conduct Rules, like PRA, below, has given thought to the burden on firms of reporting known or suspected breaches and has changed its rules so as to require firms to report only annually in respect of known or suspected breaches by any relevant person other than a senior manager;
  • explains the transitional and grandfathering rules, and what notifications and forms firms should use, and by which dates; and
  • in a separate part of the paper, consults on introducing the CR to UK and relevant incoming firms for wholesale market activity. Specifically, it has noted that, while many individuals involved in the wholesale markets would fall under the CR regime, more junior wholesale staff and individuals currently approved under Controlled Function 30 (CF30) but not subject to a qualification requirement would not necessarily be captured. FCA would make any individuals who could pose significant harm to the firm or its customers subject to the CR. The changes would expand the current CF30 and would also address the risks of algorithmic trading. FCA is also consulting on amendments to remove the territorial limitation for material risk takers in the CR and Conduct Rules.

The paper includes maps, references to forms and the final rules. Still outstanding from FCA are:

  • guidance on the presumption of responsibility;
  • other guidance on enforcement;
  • senior management responsibility for whistle-blowing;
  • regulatory references; and
  • maybe, guidance on reporting breaches of conduct rules.

It plans several papers over the next few months to address these issues. It asks for comment on its proposals on wholesale activities by 7 September. (Source: FCA Updates on SMR

FCA makes Pension Wise recommendations: FCA has published a policy statement of recommendations to those providers that deliver Pension Wise. The statement considers what action FCA might take if it feels any provider has fallen short of the standards it should meet. (Source: FCA Makes Pension Wise Recommendations)

FCA appoints new director: FCA has announced Jonathan Davidson's appointment as new director of supervision – retail and authorisations. (Source: FCA Appoints New Director)

Prudential Regulation Authority (PRA)

PRA announces deposit protection reduction: PRA has announced changes to the depositor compensation the FSCS provides. The changes result from the Deposit Guarantee Schemes Directive revisions (DGSD2) and mean that:

  • the current £85,000 limit on deposit protection will decrease to £75,000, but existing depositors who would currently benefit from the higher limit will be able to do so until 31 December 2015;
  • the new limit of £75,000 will apply now to some categories of depositor who fall under FSCS protection for the first time, such as large corporates;
  • depositors with temporary high balances have protection for up to £1 million for six months from the date on which they receive money in their account or become entitled to it; and
  • holders of all long-term insurance policies, professional indemnity insurance policies, and claims arising from death or incapacity will benefit from 100% cover.

PRA is consulting on rules to help manage the impact of the change on depositors who are contractually tied into products with balances above the new limit, and proposes to allow depositors to withdraw funds between the limits without charge until the end of the year if their protection will decrease as a result of the change. PRA also proposes changes to how firms provide the compensation information sheet. It asks for comments by 24 July.

PRA has also published:

  • a statement of policy addressed to FSCS explaining what PRA expects of it;
  • a policy statement on technical amendments relating to depositor and policyholder protection including its final rules to implement the changes it proposed, including those in relation to:
    • depositor preference under the BRRD;
    • who FSCS may treat as being absolutely entitled to an eligible deposit;
    • how firms can exclude from their class A tariff basis calculations amounts which are not covered deposits; and
    • how small local authorities can have access to their covered deposits;
  • a policy statement on the protection limit for depositor and dormant account protection, including rule changes; and
  • a supervisory statement on the changes.

PRA has previously noted that the FSCS (and therefore the changed limit) does not apply to passporting in EEA banks, which will be covered by their domestic scheme (up to the €100,000 limit) although UK incorporated subsidiaries of EEA banks will fall under FSCS and therefore be subject to the changes. (Source: PRA Announces Deposit Protection Changes)

PRA publishes remuneration guidance forms: PRA has published instructions to help firms complete their benchmarking and high earners' reports that form part of its supervisory activities on remuneration. (Source: PRA Publishes Remuneration Guidance Forms)

PRA makes SMR rules: PRA has published a further suite of documents on introducing its new SMR for UK incorporated banks. The latest documents comprise:

  • a policy statement including final rules and feedback on several consultations;
  • forms for firms to use under the new regimes;
  • a supervisory statement setting out PRA's expectations of firms in relation to the new regimes – specifically how they should comply with the regulatory framework of the SMR, CR, assessment of fitness and propriety and Conduct Rules; and
  • a statement of policy on PRA's use of the power to impose conditions and time limits on an approval to perform a Senior Management Function (SMF).

Nothing has fundamentally changed from the consultation version, except that PRA has postponed its decision on regulatory references pending a review of the Fair and Effective Markets Review (FEMR) recommendations. It has:

  • adopted the Conduct Rules, unchanged;
  • clarified how the transitional arrangements will apply, especially for individuals who are taking on new, or different, functions, and individuals within parent entities;
  • clarified that firms should use current approved persons forms where they wish an individual to take up a position before 7 March 2016 (although the limitation period for PRA to determine applications will be suspended and, if it has not determined the application before 7 March, the firm will have to provide the additional information required under the SMR), but can use the new forms from 1 January 2016 for positions that will not take effect until 7 March or later;
  • confirmed it expects firms to be able to make the required Statements of Responsibilities within the limit of 300 words per responsibility;
  • confirmed it expects firms to report breaches of conduct rules promptly, but has slightly amended its rule to require notification within seven days of the firm discovering the breach or having reason to suspect there has been a breach. It says it cannot give further guidance on when firms might suspect a breach;
  • introduced the proposed notification requirements for "standard" non-executive directors, and confirmed firms must impose a contractual requirement on these individuals, as well as others, to follow the Conduct Rules; and
  • said it cannot commit to only applying the presumption of responsibility where there is a material or significant breach of a relevant requirement by imposing any threshold or de minimis damage amount but said it would take the seriousness of the matter into account.

PRA expects to publish several further documents over the next three months, in particular:

  • policy statement and combination of final and near-final rules on the SMR and CR for incoming branches of non-EEA banks;
  • policy statement and final rules to complete the Senior Insurance Managers Regime (SIMR) for Solvency 2 insurers;
  • policy statement and final rules for the streamlined SIMR for smaller insurers; and
  • consultation on any amendments to regulatory references following recommendations by the FEMR. 

(Source: PRA Makes SMR Rules)

Payment Systems Regulator (PSR)

PSR publishes annual report: PSR's first annual report and accounts look at the work it did to prepare for its first day of operation, and look forward to its work programme for the next year. (Source: PSR Publishes Annual Report)

Financial Ombudsman Service (FOS)

FOS publishes "vishing" review: FOS has published a review of complaints about "vishing" scams. The report looks at 200 cases, and analyses the customers fraudsters tend to target. It explains how the fraudsters can often gain access to banking details by using the "no hang up" method when they call on voice phishing (vishing) exercises. FOS has also published guidance to consumers on how to avoid being the victim of these scams. (Source: FOS Publishes Vishing Review)

Financial Services Compensation Scheme (FSCS)

FSCS publishes limit change information: FSCS has published a set of Q&As about the changes to compensation limits. (Source: FSCS Publishes Limit Compensation Changes)

Office of Gas and Electricity Markets (Ofgem)

Ofgem consults on prosecution policy: Ofgem is consulting on a Prosecution Policy Statement to set out its approach to all criminal prosecutions including new offences under the Regulation on Energy Market Integrity and Transparency (REMIT) of insider trading and market manipulation in wholesale energy products. The draft statement explains how Ofgem proposes to use its market abuse prosecution powers where the suspected market abuse is particularly egregious in nature or impacts on the market, or because only a prosecution would deter future market abuse. It also explains how Ofgem will assess situations in which it has the choice of taking either civil or criminal action. Ofgem asks for comments by 25 September. (Source: Ofgem Consults on Prosecution Policy)

Other Regulators/Authorities/Industry Associations

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

Basel Committee reports on impact and accountability of supervision: The Basel Committee has published a report on the impact and accountability of banking supervision. The report shows the progress regulators have made over recent years to broaden and improve their supervision. (Source: Basel Committee Reports on Impact and Accountability of Supervision)

Basel Committee updates on leverage: The Basel Committee has updated its set of frequently asked questions on the leverage ratio. (Source: Basel Committee Updates on Leverage)

Basel Committee updates corporate governance principles: The Basel Committee has issued an updated set of corporate governance principles, superseding its 2010 principles. It stresses the importance of risk governance as part of a bank's overall corporate governance framework and promotes the value of strong boards and board committees together with effective control functions. Key additions include: 

  • more guidance on the role of the board in overseeing the implementation of effective risk management systems; 
  • stressing the importance of the board's collective competence as well as that of individual members so the right amount of knowledge and time for risk governance resides with the board; 
  • strengthening the guidance on risk governance; 
  • giving guidance for regulators when assessing how banks select board members and senior management; and 
  • addressing how remuneration systems form a key component of the governance and incentive structure. 

(Source: Basel Committee Updates Corporate Governance Principles

Lloyd's

Lloyd's updates Solvency 2 guidance: Lloyd's has updated its guidance on technical provisions under Solvency 2. (Source: Lloyd's Updates Solvency 2 Technical Guidance)

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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 unsubscribe@mondaq.com 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.

Cookies

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.

Links

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.

Mail-A-Friend

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.

Security

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 webmaster@mondaq.com.

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 EditorialAdvisor@mondaq.com.

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 enquiries@mondaq.com.

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