FCA and BoE artificial intelligence forum

The Financial Conduct Authority (FCA) has announced that it is establishing, with the Bank of England (BoE), a forum, called the Financial Services AI Public Private Forum (AIPPF), to facilitate dialogue with the public and private sectors to understand the use and impact of artificial intelligence (AI) and machine learning (ML). 

The Forum seeks to:

  • share information and understand the practical challenges of using AI and ML within financial services, as well as the barriers to deployment and potential risks;
  • gather views on potential areas where principles, guidance or good practice examples could be useful in supporting safe adoption of these technologies; and
  • consider whether ongoing industry input could be useful and what form this could take.

Participation in the AIPPF is at the invitation of the FCA and BoE and includes firms active in the development of AI and the use of ML, alongside public authorities and academics. The selection process is set out in the terms of reference.

MLD5: HM Treasury response to implementation consultation

We reported in this bulletin on 10 January 2020 that the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, which implement the Fifth Money Laundering Directive (MLD5), had been published and were substantially in force. HM Treasury has now published a response to its April 2019 consultation on implementing MLD5.

Christopher Woolard appointed Interim Chief Executive of FCA

The FCA has announced that HM Treasury, following advice from the FCA Board, has appointed Christopher Woolard as Interim Chief Executive of the FCA.

Mr Woolard is currently the FCA's Executive Director of Strategy and Competition and an executive member of the FCA's Board. He takes on the role of Chief Executive following Andrew Bailey's departure to become Governor of the BoE. Mr Bailey is to join the BoE on 16 March 2020.

HM Treasury will be running an open competition for the permanent post of Chief Executive, and will announce further details in due course.

IFR: corrigendum published in OJ

A corrigendum to the Investment Firms Regulation (IFR) has been published in the Official Journal of the EU (OJ). The corrigendum amends Article 63(4)(e)(7) and Article 63(4)(f)(8) to change the deadline for ESMA to submit draft regulatory technical standards (RTS) and draft implementing technical standards (ITS) from 26 September 2021 to 26 September 2020.

European Commission 2020 work programme

The European Commission has published a communication, with numerous annexes listed below, and a Factsheet: Explaining the Commission Work Programme, outlining its work programme for 2020:

Of relevance to financial services, the Commission work programme includes the following new initiatives, expected in Q3 2020, except where indicated otherwise:

  • a non-legislative proposal relating to a renewed sustainable finance strategy;
  • an action plan on FinTech including a strategy on an integrated EU payments market;
  • a legislative proposal on cryptoassets;
  • a cross-sectoral financial services legislative proposal on operational and cyber resilience; 
  • an action plan on the Capital Markets Union (CMU);
  • a review of the regulatory framework for investment firms and market operators under the MiFID II Directive and the Markets in Financial Instruments Regulation (MiFIR);
  • a review of the Benchmarks Regulation.
  • an action plan on anti-money laundering expected in Q1 2020; and
  • a review of the capital requirements legislation expected in Q2 2020;
  • a communication on better regulation expected in Q2 2020;
  • a white paper on AI expected in Q1 2020 and a later follow up expected in Q4; and
  • a European Strategy for Data expected in Q1 2020. IOSCO 2020 work programme

The International Organization of Securities Commissions (IOSCO) has published its annual work programme for 2020. The work programme provides an update on IOSCO's initiatives relating to its five existing priority issues:

  • cryptoassets; 
  • artificial intelligence and machine learning; 
  • passive investing and index providers; 
  • retail distribution and digitalisation; and 
  • market fragmentation. 

It also provides an overview of the work that IOSCO will be newly starting, namely, the rising levels of corporate debt and the potential resulting risks in capital markets.

IOSCO will also continue its efforts in other areas, such as issues related to the IOSCO Sustainable Finance Network, Fintech Network and matters of special importance to growth and emerging markets. At the same time, it will continue its collaboration with other standard setting bodies as well as carry out implementation monitoring reviews and capacity building programs for its members.

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