UK: Financial Regulatory Developments (FReD) – 31 July 2015

Headlines

  • FSB updates on OTC derivatives progress
  • ESMA consults on sound remuneration practices for UCITS
  • ESMA publishes AIFMD third-country passport advice
  • FCA consults on cash savings holder remedies
  • FCA publishes benchmarks review

EUROPEAN UNION AND INTERNATIONAL

Financial Stability Board (FSB)

FSB updates on OTC derivatives progress: FSB has published its ninth progress report on implementation of OTC derivatives market reforms. It found good progress overall, and noted:

  • reform is most advanced for trade reporting and for higher capital requirements for non-centrally cleared derivatives;
  • five jurisdictions now have central clearing requirements in effect for one or more specific product types, with progress anticipated in several more jurisdictions over the next year;
  • not many jurisdictions have regulatory frameworks in place to promote execution of standardised contracts on organised trading platforms;
  • most jurisdictions are only in the early phases of implementing the Basel Committee–IOSCO framework for margin requirements for non-centrally cleared derivatives (internationally agreed phase-in periods are now not due to begin until September 2016); and
  • availability and use of centralised infrastructure to support OTC derivatives reforms continues to expand.

FSB also reported on steps to harmonise transaction reporting and to agree to a framework for uniform trade and product identifiers; further coordinated consideration of CCP resilience, recovery and resolution, and central clearing interdependencies; and ongoing multilateral and bilateral discussions to address cross-border regulatory issues. FSB welcomes comments on the report by 24 August. (Source: FSB Updates on OTC Derivatives Progress)

Contact: Rosali Pretorius or Tom Harkus

European Commission (Commission)

Commission publishes CRD4/CRR reporting template amendments: The Commission has published the implementing regulation amending the Implementing Technical Standard (ITS) on Supervisory Reporting on its website, following its adoption by the Commission on 9 July 2015. The ITS amends various reporting templates under the fourth Capital Requirements Directive (CRD4) and Capital Requirements Regulation (CRR). (Source: Commission Publishes CRD4/CRR Reporting Template Amendments)

Contact: Rosali Pretorius or Michael Wainwright

Official Journal of the EU (OJEU)

OJEU publishes Icap appeal: Three companies within the Icap group, two English and one from New Zealand, have applied for annulment of the Commission's findings against them in February in relation to Yen interest rate derivatives. The companies allege six grounds for annulment based on errors of fact and law on the Commission's part, and breaches by the Commission of legal principles and guidelines. (Source: OJEU Publishes Icap Appeal)

Contact: Rosali Pretorius or Tom Harkus

European Banking Authority (EBA)

EBA publishes risk assessment reports: EBA has published reports on:

  • the consistency of risk weighted assets (RWAs) across large EU institutions for large corporate, sovereign and institutions' Internal Ratings Based (IRB) portfolios (or "low default portfolios" - LDP); and
  • the calculation of counterparty credit risk (CCR) exposures under the Internal Model Method (IMM) and the credit value adjustments (CVA) according to the advanced approach (ACVA).

The reports follow EBA benchmarking exercises and EBA will use the results in its work on improving the regulatory framework and restoring confidence in internal models. (Source: EBA Publishes Risk Assessment Reports)

Contact: Rosali Pretorius or Michael Wainwright

EBA updates Q&As: EBA has added 25 new questions to its Q&As on the single rulebook. (Source: EBA Updates Q&As)

Contact: Rosali Pretorius or Juan Jose Manchado

EBA publishes systemic importance table: EBA has published a table containing key information on the systemic importance of the 37 largest banks in the EU. The table contains information on, among other things, total exposures; payments activity; assets under custody; underwriting activity and OTC derivatives. (Source: Table Containing Key Information on the Systemic Importance of the 37 Largest Banks in the EU)

Contact: Rosali Pretorius or Michael Wainwright

EBA issues early intervention guidelines: EBA has issued its final guidelines on early intervention triggers. They are designed to ensure continuum between the ongoing supervision conducted by national authorities in line with CRD4, and the Bank Recovery and Resolution Directive (BRRD) in all official languages. (Source: Guidelines on Early Intervention Triggers)

Contact: Rosali Pretorius or Michael Wainwright

EBA launches DGS co-operation consultation: EBA is consulting on draft guidelines on co-operation agreements between deposit guarantee schemes (DGSs) under the revised DGS Directive. The guidelines set out the objectives and minimum content of those co-operation agreements; include a multilateral framework co-operation agreement which the DGSs should adhere to; and provide further guidance on the process of depositors' payout for cross-border institutions. The consultation closes on 29 October. (Source: Guidelines on Co-operation Agreements Between Deposit Guarantee Schemes)

Contact: Nicholas Ralph or Josie Day

European Securities and Markets Authority (ESMA)

ESMA consults on sound remuneration practices for UCITS: ESMA is consulting on sound remuneration procedures under UCITS V. Its main aim is to bring the requirements relating to Undertakings For The Collective Investment Of Transferable Securities (UCITS) into convergence with those already in place under the Alternative Investment Fund Managers Directive (AIFMD). It has also consulted with EBA with a view to requirements being similar for all financial sector firms. The key elements of the proposed guidelines include:

  • that where a UCITS management company is part of a group, non-UCITS sectoral prudential supervisors of group entities may deem certain staff of the UCITS management company which is part of that group to be identified staff for the purpose of their sectoral remuneration rules. ESMA also proposes to review the AIFMD guidelines to reflect this;
  • a common definition of performance fees based on IOSCO standards;
  • guidance on how different rules, such as those set out in the AIFMD and CRD4, should apply where employees or other personnel perform services subject to different sectoral remuneration principles;
  • provisions to prevent management companies circumventing the remuneration rules by delegating activities to external service providers; and
  • how to comply with the rules on the payment of variable remuneration in instruments.

ESMA also seeks views on proportionality including the option to disapply certain of the provisions in exceptional circumstances, in line with the AIFMD approach. The consultation includes a table mapping the relevant UCITS V provisions against AIFMD provisions, and details of current activity in various Member States. ESMA asks for comments by 23 October, and will publish the final guidelines in Q1 2016, before the implementation date for UCITS V, which is 18 March 2016. (Source: ESMA Consults on Sound Remuneration Practices for UCITS)

Contact: Rosali Pretorius or Michael Wainwright

ESMA publishes AIFMD third-country passport advice: ESMA has published its advice to the Commission on extending the passport under the AIFMD to alternative investment funds and their managers in selected third countries. Its predominant view is that it is too soon after implementation of the AIFMD to give a definitive opinion on how the various national private placement regimes have been working, and whether there should be a third-country passport, and recommends a further report after a longer period. It assessed Guernsey, Hong Kong, Jersey, Singapore, Switzerland and the US. It concluded the passport could be extended now to Jersey and Guernsey, and also to Switzerland as legislative change there will remove any outstanding hurdles. However, it is still working through certain concerns in relation to the other three jurisdictions and wants to assess several more. In view of this, it thinks the Commission may delay extending the passport until it can introduce it for a "batch" of jurisdictions. We will be preparing a more detailed article on the effects of ESMA's opinion. (Source: ESMA Publishes AIFMD Third-Country Passport Advice)

Contact: Rosali Pretorius or Emma Radmore

European Insurance and Occupational Pensions Authority (EIOPA)

EIOPA publishes RFR user manual: EIOPA has published a user manual for the exercise it launched on 15 July to challenge the "beta" version of the risk free interest rate (RFR) coding used in the current Solvency 2 preparatory phase. The manual sets out steps on how to carry out the calculations through the RFR coding. The exercise closes on 31 August. (Source: EIOPA Publishes the User Manual to Complement the Solvency 2 RFR Coding Publication)

Contact: Luca Salerno or Juan Jose Manchado

EIOPA to hold infrastructure investment hearing: EIOPA is to hold a public hearing on its final advice to the Commission on infrastructure investments. The hearing will take place on 4 September in Frankfurt. It will address all aspects of EIOPA's consultation on the identification and calibration of infrastructure investment risk categories. The consultation covers:

  • definitions of debt and equity infrastructure investments used to specify new risk categories in the standard formula;
  • proposals for their calibrations in line with Solvency 2; and
  • an assessment of how the categories could fit within the existing structure of the market and counterparty default risk modules.

In addition, EIOPA wants to analyse whether the current investments and system of governance requirements in Solvency 2 are sufficient to ensure that the risks of such a complex, heterogeneous and, for insurers, relatively new asset class, are properly managed. (Source: EIOPA Public Hearing on Infrastructure Investments)

Contact: Michael Wainwright or Juan Jose Manchado

European Systemic Risk Board (ESRB)

ESRB publishes EMIR reports: ESRB has published the following reports to help the Commission's review of the European Market Infrastructure Regulation (EMIR):

  • report on issues other than the efficiency of margining requirements; and
  • report on the efficiency of margining requirements to limit pro-cyclicality and the need to define additional intervention capacity in this area.

(Source: Report on Issues to be Considered in EMIR Revision Other Than the Efficiency of Margining Requirements and the Need to Define Additional Intervention Capacity in this Area)

Contact: Luca Salerno or Tom Harkus

Agency for the Cooperation of Energy Regulators (ACER)

ACER approves first third-party RRMs under REMIT: ACER has approved the first five third-party Registered Reporting Mechanisms (RRMs) under the Regulation on Energy Market Integrity and Transparency (REMIT). RRMs can report records of transactions and orders to trade as well as fundamental data on behalf of a market participant directly to ACER. Many more third-party RRMs are currently at pre-registration stage with 400 market participant RRMs also applying. (Source: ACER Approved First Third-Party RRMs under REMIT)

Contact: Luca Salerno or Tom Harkus

UK GOVERNMENT AND PARLIAMENT

Bank of England (BoE)

BoE to extend settlement day: BoE has announced the CHAPS and CREST settlement day will be extended from summer 2016 to 18:00. Customer cut-off times set by banks and other financial institutions may be earlier than this. (Source: BoE to Extend Settlement Day)

Contact: Rosali Pretorius or Michael Wainwright

BoE publishes RFR meeting minutes: BoE has published the minutes from the 2 June meeting of its working group on Sterling RFRs. The minutes detail the various RFR workstreams and show that at the 2 June meeting the working group concluded:

  • it would primarily consider secured and unsecured RFRs;
  • it would apply additional effort to enhance credibility and robustness of existing SONIA and RONIA benchmarks; and
  • that the Bank Rate should be a fallback, and other options were disregarded.

The minutes set out the positive and negative factors relating to each category of RFR considered, showing how the working group reached its conclusions. (Source: Working Group on Sterling RFRs – Minutes from 2 June Meeting)

Contact: Rosali Pretorius or Michael Wainwright

HM Treasury (Treasury)

Treasury consults on LP changes: Treasury is consulting on changes to the laws on limited partnerships (LPs) it outlined in its 2013 budget. Treasury's purpose is to ensure that the UK LP remains the market standard structure for European private equity and venture capital funds. It believes it can make many of the changes it wants by using a legislative reform order, which it can use to reduce the burden of legislation, but it may consult on further changes that would require a separate legislative process. The proposed amendments will apply to a UK LP that is a collective investment scheme (for the purposes of the Financial Services and Markets Act 2000 (FSMA) – leaving out of account any applicable exemption) but is not FCA-authorised. Treasury wants the regime to cover only those LPs that are private fund vehicles. Its proposals cover primarily:

  • registration issues and ongoing filing and notification requirements. Treasury suggests a process for the designation on the register of LPs of those which are private fund vehicles at the point of registration. This will make it possible to see which LPs fall under the amended regime. There will also be a facility for removing from the register LPs that have been wound down;
  • the role, function and rights of limited partners. Treasury proposes to introduce a change to the LP Act to set out a non-exhaustive list of activities that a limited partner in a private fund LP may undertake without being considered to take part in the management of the business, and therefore without losing their limited liability; and
  • obligations of, and restrictions on, limited partners in respect of capital. Treasury proposes to remove the requirement for limited partners in private funds to make a capital contribution, and the liability of limited partners in private funds for capital contributions that have been withdrawn.

Other proposals include simplifying the registration and reporting process and allowing the partners (and where there is no general partner, just the limited partners) in a private fund to agree among themselves who should wind up the LP without having to obtain a court order. Treasury asks for comment by 5 October. (Source: Treasury Consults on Limited Partnership Changes)

Contact: Rosali Pretorius or Emma Radmore

Treasury consults on interchange fee cap: Treasury is consulting on rules implementing the EU's Interchange Fees Regulation. The Interchange Fee Regulation allows national governments to set caps below 0.30% and 0.20% for domestic credit and debit card transactions. From 9 December Treasury proposes the fees banks can charge will be capped at 0.30% and 0.20% for credit and debit card transactions respectively, with some allowance for a weighted average for debit cards. It also intends to exercise the time-limited exemption the Regulation allows to provide a transitional period in which three-party schemes which use issuers and acquirers can adjust their business models. Treasury asks for comments by 28 August. (Source: Treasury Consults on Interchange Fee Cap)

Contact: Nicholas Ralph or Juan Jose Manchado

UK FINANCIAL SERVICES AND MARKETS REGULATORS

Financial Conduct Authority (FCA)

FCA finalises complaints and call charges changes: FCA has made new rules:

  • extending the "next business day rule", that allows firms to handle complaints less formally, without sending a final response letter, to allow them to do so by the close of three business days after the date of receipt;
  • requiring firms to report to FCA all complaints, including those handled within three business days;
  • requiring firms to send complainants a summary resolution communication following the resolution of complaints handled by the close of the third business day after receipt, which will, among other things, tell the complainant its rights to complain to the Financial Ombudsman Service (FOS);
  • that limit the cost of calls consumers make to firms to a maximum basic rate; and
  • improving the complaints return that firms sent to FCA.

The main changes take effect on 26 October in relation to call charges, and the changes on the next business day rule, complaints reporting and requiring firms to send a summary resolution communication come into force on 30 June 2016. (Source: FCA Finalises Complaints and Call Charges Rules)

Contact: Nicholas Ralph or Emma Radmore

FCA consults on cash savings holder remedies: FCA has published feedback on remedies for cash savings account holders, and is consulting on how to make it easier to switch accounts in future. FCA proposed four categories of remedy:

  • "disclosure remedies" addressing how to give consumers sufficiently clear and targeted information at the right time so that they can easily and quickly compare their savings accounts with alternative ones and know how to switch if they want to do so;
  • "switching remedies" that will make the process of switching savings accounts as easy as possible so that it does not put consumers off moving their money to another savings provider or to another savings account with the same provider;
  • "convenience remedy" of making it easier for firms to provide a way for consumers to view and manage accounts with different providers in one place. This remedy is designed to remove some of the advantages larger providers currently have; and
  • "sunlight remedy" of transparency of interest rates paid to longstanding customers, in particular how providers are reducing interest rates on variable rate savings accounts the longer a consumer holds the account.

The consultation covers some of FCA's proposed disclosure and switching remedies. It plans to consult on the other disclosure remedies once it has completed some trials. FCA wants to see seven-day switching for the vast majority of cash-ISA transfers (except for those involving the very smallest providers), from January 2017. For the other remedies, FCA plans to implement the convenience remedy when it implements the revised Payment Services Directive (PSD 2) from 2017 and says it expects firms to comply with PSD 2 requirements as early as possible. Finally, it plans an 18-month trial of publishing information on the lowest interest rates firms pay on open and closed easy access and easy access cash-ISA savings accounts, and will then assess the effectiveness of this. The consultation includes draft Handbook changes, mainly to the Banking Conduct of Business Sourcebook (BCOBS) which FCA proposes bringing into force in July 2016. FCA asks for comment by 12 October. (Source: FCA Consults on Cash Savings Holder Remedies)

Contact: Nicholas Ralph or Josie Day

FCA speaks on wholesale conduct risk: Tracey McDermott has spoken on FCA's expectations of firms around wholesale conduct risk. She focused on the Fair and Effective Markets Review and the Senior Manager Regime with reference to:

  • solutions to rebuild reputation and embed cultural change;
  • firms needing to ask themselves some hard questions about how they identify and manage conduct risks – she outlined five key questions that firms should address; and
  • creating a system in which individuals, as well as firms, can be held accountable for their actions.

(Source: FCA Speaks on Wholesale Conduct Risk)

Contact: Rosali Pretorius or Nicholas Ralph

Cash Genie agrees redress scheme with FCA: FCA has announced it has agreed a consumer redress scheme with Ariste Holding Limited, trading as Cash Genie. The scheme will provide over £20 million redress to more than 92,000 customers for unfair practices which took place since Cash Genie started business in 2009. The firm self-reported several failings to FCA in 2014 and, following further review, has agreed to:

  • write off or refund fees and charges which it should not have added to customer accounts;
  • write off or refund rollover interest where the firm rolled over customers' loans inappropriately;
  • refund payments it took without authorisation, and write off all outstanding balances on accounts affected by this practice; and
  • write off or refund interest and fees added to customers' accounts after the point at which the firm should have provided customers with an annual statement.

(Source: Cash Genie Agrees Redress Scheme with FCA)

Contact: Nicholas Ralph or Juan Jose Manchado

FCA finalises performance risk guidance: FCA has published its finalised guidance on the risks to customers from performance management at firms. The guidance addresses the inherent risk that poorly executed performance management can encourage or drive mis-selling because of pressure to meet targets and/or corporate objectives. FCA noted that middle managers are most likely to suffer conflicts. It says it is not its business to tell firms how to manage performance but the guidance sets out how firms can manage the risk of mis-selling. The guidance suggests best practices that firms might put in place. (Source: FCA Finalises Performance Risk Guidance)

Contact: Emma Radmore or Nicholas Ralph

FCA reports on unauthorised transactions: FCA has released its findings from its thematic review into fair treatment of consumers who suffer unauthorised transactions. The investigation focused on current accounts and credit cards. FCA found that:

  • firms are generally complying with their legal obligations and making a good effort to ensure fair outcomes for customers. Most tended to favour the customer when reviewing claims and there was no evidence that any firms were declining claims on the basis of "customer non-compliance" with complex security protocols;
  • generally, firms seemed to be aiming to balance the need to consider claims on a case-by-case basis with consistent decision making. However, there were some issues with some of the content of account terms and conditions; and some fairly minor problems around how some firms organise their decision making, such as a lack of clear policies for complex cases and a heavy reliance in a small number of firms on experienced staff; and
  • consumers recognise that protections are in place in the event of an unauthorised transaction. But consumers do not always know how the protections apply to them and tend to make assumptions about what their basic rights are. They also face obstacles when remembering multiple PINs and/or passwords, which may lead to them storing or sharing them.

FCA also found that consumers who had experienced an unauthorised transaction appreciated their provider immediately adopting and maintaining a supportive stance, as well as dealing with their claim promptly

(Source: Fair Treatment for Consumers who Suffer Unauthorised Transactions)

Contact: Michael Wainwright or Nicholas Ralph

FCA publishes benchmarks review: FCA has published its thematic review into oversight and controls in financial benchmarks. The review covered all benchmarks except LIBOR and the FX benchmarks that had already received or are currently the subject of regulatory review and redress. FCA visited 12 banks and brokers to look at lessons learned from past misconduct. The review found that although all firms had made changes in their approach to benchmark activities, there are a number of areas where more progress is needed and no firm had fully implemented all necessary changes. Generally, FCA found uneven progress with varying levels across different benchmarks and activities. Overall, banks had more structured and fully developed programmes to improve oversight and controls around benchmark activities than brokers. FCA also noted a lack of urgency, inconsistent benchmark identification, conflict of interest issues and a trend towards withdrawal from certain benchmarks without due appreciation of the consequences. The report identifies six key messages for firms:

  • a need to ensure they identify all activities that constitute a benchmark activity or could affect a benchmark;
  • senior management need to act quickly to improve any outstanding gaps in their approaches to benchmark activities;
  • firms need to strengthen governance and oversight of benchmark activities;
  • firms should continue to identify, raise awareness of and manage conflicts of interest in relation to benchmark activities;
  • firms must establish robust controls and oversight for any in-house benchmarks being used; and
  • when exiting benchmark activities, firms must give due consideration to the wider impact of their actions.

FCA also provides background explanations, and examples of good and poor practice in dealing with the issues it identified. FCA now wants all firms to consider their practices in light of the report and IOSCO standards and is following up with individual firms which formed part of the review. (Source: Financial Benchmarks: Thematic Review of Oversight and Controls)

Contact: Rosali Pretorius or Tom Harkus

FCA produces AIFMD transparency Q&A: FCA has published a Q&A for firms containing important information on transparency reports under Annex IV of the AIFMD. It provides guidance on submitting accurate, consistent and complete data. (Source: Important Information for AIFMD Annex IV Transparency Reporters – Submitting Accurate, Consistent and Complete Data)

Contact: Rosali Pretorius or Tom Harkus

Prudential Regulation Authority

PRA updates on Solvency 2: PRA will make final decisions on all formal Matching Adjustment (MA) applications it received before 1 July in late October, and tell all firms their decision at the same time. PRA thinks this is important in the interests of fair markets, and also brings the process into line with its internal model approval process. PRA has also published a supervisory statement supplementing its general approach to insurance supervision in relation to the treatment of sovereign debt in internal models, and an amendment to its supervisory statement on applying EIOPA's set 1 guidelines to PRA-authorised firms. The amendment is to clarify that the statement, where relevant, applies to Lloyd's, including Lloyd's managing agents, rather than just the Society of Lloyd's. (Source: PRA Updates on Solvency 2)

Contact: Michael Wainwright or Juan Jose Manchado

PRA publishes Pillar 2 reporting instrument: PRA has published the PRA Rulebook CRR Firms: Reporting Pillar 2 Instrument 2015, which takes effect on 1 January 2016. The rules set out the reporting and submission requirements and link to relevant data forms for firms covered by the rules. In principle, this is every firm that is a Capital Requirements Regulation (CRR) firm. (Source: PRA Publishes Pillar 2 Reporting Instrument)

Contact: Rosali Pretorius or Michael Wainwright

PRA outlines new Pillar 2 approach: PRA has announced its new approach to setting Pillar 2 capital requirements for banks. The changes are based on proposals set out in PRA's January consultation paper and take into account the responses to that paper. The changes include:

  • refining the methodology used by PRA to inform the setting of firms' Pillar 2A capital so as to be more transparent and risk sensitive;
  • replacing the capital planning buffer with a "PRA buffer" which will harmonise PRA's approach with that of CRD4. The PRA buffer will be held by firms to absorb losses that may arise under a severe, but plausible stress, in line with the CRD4 rules;
  • where PRA assesses a firm's risk management and governance to be significantly weak it may also set the PRA buffer to cover the risk posed by those weaknesses until they are addressed; and
  • under the new Pillar 2 framework, firms will need to submit the data necessary for PRA to run the new Pillar 2 methodologies with their Internal Capital Adequacy Assessment Process (ICAAP) submissions.

PRA has published its feedback statement, supervisory statements and statement of policy alongside the reporting instrument. (Source: New Approach to Setting Pillar 2 Capital Requirements for the Banking Sector)

Contact: Luca Salerno or Juan Jose Manchado

OTHER AUTHORITIES/REGULATORS/INDUSTRY ASSOCIATIONS

Advertising Standards Agency (ASA)

ASA rules on claims management advert: ASA has found that an advertisement on the Facebook page of packagedbankaccounts.net which contained the claim:

"Do you pay for your bank account? You could get every penny back that you have paid, average refunds are £1,900 ..."

breached several rules. The advertisement itself contained unsubstantiated data and was misleading, while the firm did not respond to ASA and breached the rules on unreasonable delay. ASA said the advertisement must not appear again in its current form. (Source: ASA Ruling on packagedbankaccounts.net)

Contact: Nicholas Ralph or Josie Day

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

Basel Committee and IOSCO finalise securitisation principles: The Basel Committee and IOSCO have published the final version of their report on defining simple, transparent and comparable securitisations. These criteria apply only to term securitisations and are non-exhaustive and non-binding. The criteria cover:

  • simplicity with reference to the homogeneity of underlying assets with simple characteristics, and a transaction structure that is not overly complex;
  • transparency where investors have sufficient information on the underlying assets, the structure of the transaction and the parties involved in the transaction, to give them a more thorough understanding of the risks involved; and
  • comparability that will help investors in their understanding of these investments and enable more straightforward comparison between securitisation products within an asset class.

(Source: Basel Committee and IOSCO Finalise Securitisation Principles)

Contact: Ed Hickman or Iain Walker

FX working group starts work on code of conduct and principles: BIS has now established its foreign exchange working group (FXWG) and it has held its first meeting. It will take forward two workstreams:

  • drafting the new single global code by harmonising common elements of the existing FX codes as well as drafting new principles for those areas not adequately covered in existing codes; and
  • developing proposals to promote and incentivise adherence to the new single global code.

It plans to finalise the work by May 2017. (Source: FX Working Group Starts Work on Code of Conduct and Principles)

Contact: Rosali Pretorius or Tom Harkus

International Organisation of Securities Commissions (IOSCO)

IOSCO publishes DMI implementation review: IOSCO has published a thematic review of progress in the regulation of derivative market intermediaries (DMS). In general, the review found that participating jurisdictions have made significant progress in adopting legislation, regulation or policy in the areas covered by IOSCO's DMI Standards. Many jurisdictions are in the process of amending their regimes in respect of DMIs and derivatives-related activities and many should have completed their reforms by 2016. (Source: IOSCO Publishes Thematic Review of Implementation Progress in Regulation of DMI)

Contact: Rosali Pretorius or Tom Harkus

Lloyd's Market Association (LMA)

LMA issues sanctions clauses guidance: In its latest market bulletin Lloyd's has provided detailed advice to insurance firms on the use of sanctions clauses to mitigate the risk arising from exposure to international sanctions regimes. The comprehensive advice outlines:

  • the purpose of sanctions exclusion clauses;
  • what to consider when applying such a clause;
  • classes of business where managing agents should consider the use of a sanctions clause; and
  • subscription market issues.

Also attached is a client/broker sanctions clause factsheet. (Source: Lloyd's Sanctions Guidance – Sanctions Clauses)

Contact: Emma Radmore or Tom Harkus

LMA issues consumer wordings guidance: LMA has issued a market bulletin on consumer wordings guidance. The guidance identifies the key features of, and salient clauses within, a policy document and wording that need to be addressed for a consumer policy to meet current regulatory requirements and identifies, where appropriate, the applicable underlying regulation. It contains example clauses where helpful. (Source: Consumer Wordings Guidance v1.1)

Contact: Michael Wainwright or Juan Jose Manchado

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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.

Registration

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 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.