EMEA Centre for Regulatory Strategy in Financial Services UK

Costs and charges in the asset management market study: the FCA goes “all-in” for transparency

56dccfb3bb74e2c25553a4cb_lo

The FCA recently published its final report on the asset management market study (see our briefing here). One of the headline features was the proposed “all-in” fee. There has, however, been some uncertainty on where the FCA’s proposals stand in relation to forthcoming EU legislation which will, in any case, require an aggregated fee disclosure. This brief aims to shed light on this where possible.

Continue reading

Posted on 25/07/2017 | 0 Comments

FCA asset management market study - Boosting competition amongst asset managers through sharper accountability and disclosure

Shutterstock_155364251_-_Copy

The Financial Conduct Authority (FCA) has published its much anticipated final report of its Asset Management Market Study. Although many of the proposals were trailed in the interim study, and remain subject to consultation, the report is wide-ranging and is likely to have a far-reaching impact on the asset management industry. Importantly, the FCA has detailed new proposals on governance arrangements, requiring that the Board oversees obligations imposed on fund managers prescribed through the Senior Managers Regime around acting in the customer’s best interests.

Continue reading

Posted on 29/06/2017 | 1 Comments

Are you ready for 1 January 2018? - Finalised PRIIPs RTS and imminent guidance pave the way for firms’ PRIIPs programmes

Image1Many firms have swiftly resumed their PRIIPs programmes following the entry of the final Regulatory Technical Standards (RTS) on the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs) in the Official Journal of the European Union, on 12 April 2017. The Regulation requires the disclosure of Key Information Documents (KIDs) when PRIIP products (such as funds, insurance investment products, structured products and structured deposits) are sold to retail investors.

Continue reading

Posted on 20/06/2017 | 0 Comments

The EU’s third-country CCP proposals — when is clearing not so clear?

Image

On 13 June, the European Commission released the second set of proposed amendments to the European Markets Infrastructure Regulation (EMIR) on the recognition and supervision of third-country CCPs.

The proposal represents a fundamental overhaul of the EU’s approach to the recognition and supervision of third-country CCPs (the UK will be a ‘third country’ once it leaves the EU and assuming it does not join the EEA). It includes extensive and intrusive supervisory and enforcement powers for the European Securities and Markets Authority (ESMA), a significant new role for the European Central Bank (ECB) and an ability to require the most systemically significant third-country CCPs to establish themselves in the EU as a condition for providing their clearing services to EU clearing members and their EU clients. Overall the framework provides ESMA, the Commission and the ECB with very wide-ranging discretion in relation to third-country CCPs.

Continue reading

Posted on 19/06/2017 | 0 Comments

IFRS 9: Regulators urge improvements, but where should investments be made?

6a01543429fb37970c01b7c8b0b777970b-800wi

Credit Institutions are currently in the process of implementing solutions in response to the IFRS 9 Standard. In doing so, firms are preparing to navigate the numerous pitfalls of legacy systems and risk processes to deliver Expected Credit Loss (ECL) in a controlled and governed environment. The change in the way impairment is accounted for under IFRS 9, not only denotes a change in the way that information is used in order to measure ECL, but also signifies a transformation in operating models.

Continue reading

Posted on 16/06/2017 | 0 Comments

Solvency II disclosures - the dawn of a new - and transparent - era

SFCR image 1

This year, the majority of insurers across the EU are releasing their first sets of public, audited Solvency II-basis results and disclosures (“SFCRs”). Insurers reporting on a solo basis released their SFCRs towards the end of May. Group disclosures must be released by the end of June, although some groups chose to release both group and solo results together.

Continue reading

Posted on 15/06/2017 | 0 Comments

PSD2 RTS on authentication and communication – EU Commission proposes amendments

FJ2YJ0_lo

The EBA has now published the EU Commission’s proposed amendments to its draft RTS on Strong Customer Authentication (SCA) and common and secure communication under the revised Payment Services Directive (PSD2), as well as the Commission’s accompanying letter setting out the main changes introduced. Both documents were submitted to the EBA on Wednesday 24 May, but were not made public until Friday 1 June.

Continue reading

Posted on 13/06/2017 | 1 Comments

Senior Managers Regime - Amendments and Optimisations

154242083_lo

The PRA recently published a Policy Statement confirming amendments and optimisations to the current Senior Managers Regime (SMR) which applies to banks, building societies, credit unions and PRA-designated investment firms (referred to as Relevant Authorised Persons – RAPs) and to the current Senior Insurers Managers Regime (SIMR).

Continue reading

Posted on 09/06/2017 | 2 Comments

New rules on prompts to encourage shopping around in the annuities market: concerns raised over FCA reforms

EAP3EB

On 26 May, the Financial Conduct Authority (FCA) published a policy statement on implementing information prompts in the annuity market. The FCA had consulted on this topic in November 2016, following a number of findings in its Retirement Income Market Study (published in 2015), which concluded that the retirement income market was not working well for consumers.

Continue reading

Posted on 06/06/2017 | 1 Comments

The FSB publishes its findings on Corporate Governance

Vintage brass compass

The FSB has recently published the findings of its Thematic Review on Corporate Governance. The review takes stock of how FSB member jurisdictions have applied the G20/OECD Principles of Corporate Governance (“the Principles”) to publicly listed regulated financial institutions. The report aims to highlight examples of effective governance practices and areas where good progress has been made in implementing the Principles while noting gaps and areas where follow up work is needed.

Continue reading

Posted on 01/06/2017 | 2 Comments