Brexit
Please see the Markets and Market Infrastructure section for product-specific updates relating to Brexit.
Please see the Financial Crime section for the Office of Financial Sanctions Implementation’s blog on UK sanctions framework after transition period ends.
Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020
On 3 December, the Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 were published, together with an explanatory memorandum. The Regulation implements BRRD II and also corrects deficiencies arising in retained EU law to ensure that the UK maintains a fully functioning regulatory and legal framework following the end of the transition period.
The Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020
On 2 December, the Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020 were published, together with an explanatory memorandum. The Regulations provide the PRA with powers to implement CRD V, and update the PRA Rulebook as required. The Regulations also address deficiencies in retained EU law arising from the withdrawal of the UK from the EU.
Draft FCA transitional direction for the share trading obligation
On 2 December, the FCA published a draft transitional direction, together with an explanatory note, for the share trading obligation (STO) under MiFIR. The FCA explains that the purpose of the direction is to give effect to the Temporary Transitional Power and modify the STO in order to mitigate the disruption that the FCA considers could arise from compliance with onshored obligations, particularly article 23(1) of MiFIR, upon and in the period after the end of the transition period. It allows firms to continue trading all shares on EU trading venues and systematic internalisers where they choose to do so, and where the regulatory status of those venues and SIs permits such activity. The direction will take effect from the end of the transition period and may be varied or revoked.
Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020
On 1 December, the Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 were published, together with an explanatory memorandum. The instrument among other things: (i) amends and revokes aspects of retained EU law and related UK domestic law, and provides sufficient supervisory powers for the financial services regulators to effectively supervise firms during and after the end of the transition period; (ii) addresses deficiencies across a number of pieces of retained EU law arising as a result of the UK’s withdrawal from the EU, in line with the approach taken in other financial services EU exit instruments under the European Union (Withdrawal) Act 2018; and (iii) specifically makes transitional and savings provisions concerning trade repositories in relation to the SFTR Regulation and securitisation repositories in relation to the Securitisation Regulation.
BoE updates on effect of Brexit on FMI supervision
On 1 December, the BoE updated its webpage on the effect of Brexit on financial market infrastructure (FMI) supervision in relation to: (i) applying to receive UK settlement finality protection; and (ii) the recognition of non-UK central securities depositories (CSDs). To maintain continued UK settlement finality protection while the designation process is underway, the UK's Temporary Designation Regime (TDR) will be in operation at 11pm on 31 December 2020. Systems that have submitted a valid notification will be in the TDR. The temporary designation lasts for a period of three years beginning on the day after the end of the Brexit transition period. The conditions of the TDR require that a system must apply for "steady state" settlement finality designation within six months of the day after the end of the transition period. While equivalence decisions have been made relating to each EEA state, the BoE explains that this has no effect on third-country, non-EEA CSDs and no equivalence decisions will be made until after the end of the transition period. The BoE has also published: (a) a letter sent to systems in the TDR reminding firms of the actions and notifications that they need to send to the BoE once in the TDR; (b) an interim list of EEA systems whose operators have notified the BoE for such systems to receive settlement finality protection under the TDR; (c) letters sent to EEA CSDs and third-country, non-EEA CSDs to remind them of the preparative action they need to take; and (d) an interim list of third-country CSDs that intend to provide CSD services in the UK using transitional provisions. Final lists will be published before the end of the transition period.
FCA and UK Government remind firms to be ready for end of Brexit transition period in one month’s time
On 1 December, the FCA reminded firms to be ready for the end of the Brexit transition period, in particular, for the end of passporting and for the new UK financial services "landscape". The FCA reminds firms that it has published extensive information on its website setting out the key issues firms need to focus on: (i) the FCA is making use of the Temporary Transitional Power to provide them with more time to comply with a large number of the changes; (ii) however, there are also key requirements that firms need to comply with by 1 January 2021; and (iii) passporting will end on 31 December 2020 so firms that intend to carry on providing services currently covered by a passport will need to ensure they will be able to do so after the end of the transition period. The FCA Handbook has also been updated with changes to regulatory requirements that will apply to firms. The UK Government has also published a blog post reminding firms of the key preparative actions it suggests firms take: (a) in order to practise or service clients in the EU from 1 January, it is important to make sure relevant qualifications are recognised by EU regulators; (ii) firms, whose employees travel to the EU for work purposes, should check if a visa or work permit is required and apply as soon as possible to avoid potential delays; (c) firms should make sure their business is prepared on data protection and data transfers, as, from 1 January, they may not be able to legally receive personal data from the EEA if alternative safeguards are not in place to cover EU to UK personal data flows.
HMT extends deadline for responding to consultation on post-EU financial services regulatory framework
On 30 November, HMT updated its webpage on its consultation relating to Phase II of its Financial Services Future Regulatory Framework Review. The deadline for responding to the consultation has been extended by one month to 19 February 2021.
IRSG Interim report on the UK regulatory regime for overseas firms
On 30 November, the International Regulatory Strategy Group (IRSG) published an interim report on the UK regulatory regime for overseas firms. The purpose of the interim report is to consider whether the current regime for overseas firms could be improved, with a view to enhancing the UK's global competitiveness. The IRSG considers that the UK should: (i) take the opportunity presented by Brexit to make its approach to access its market clearer and more coherent, in order to remove perceived barriers to overseas firms; (ii) issue new guidance in order to allow overseas firms to understand what services they can provide to UK users of financial services, either with or without authorisation in the UK; (iii) update the regime for overseas firms to establish regulated branches in the UK, with a clearer framework particularly with regard to the scope of deference to the home supervisor and also to improve the process by which applications are considered; (iv) continue to have an equivalence-style regime, but based on the concept of “deference” rather than an EU-style detailed analysis of equivalence. The IRSG intends to publish a more detailed report in early 2021, with detailed suggestions for legislative and regulatory changes.
Council conclusions on the EC’s CMU Action Plan
On 2 December, the Council of the EU published a note from the General Secretariat to the Permanent Representatives Committee (COREPER) attaching conclusions on the EC’s Capital Markets Union (CMU) Action Plan. Among other things, the Council: (i) recognises that, despite the measures taken so far, further steps are needed to progress towards a genuine CMU, while noting the importance of what has been accomplished to date as a result of the first phase of CMU and the need to give recent legislative changes time to take full effect; (ii) highlights the need to build a polycentric CMU that can exploit the benefits of existing market places and infrastructures within Member States in order to avoid excessive dependency on one financial market place in the future; (iii) highlights that the further development of the CMU goes hand in hand with the intensified development of local and regional capital markets and financial ecosystems, as the aim of creating a genuine CMU for the EU will be easier to achieve in an environment that enables and empowers all national and regional capital markets to emerge and evolve; (iv) highlights that making swift and tangible progress towards a genuine CMU has become more urgent than ever in light of recent challenges for EU enterprises and investors, notably the Covid-19 pandemic and the withdrawal of the UK; and (v) sets out what actions it believes the EC should prioritise and accelerate its work on.
FCA evaluation of the impact of the Retail Distribution Review and the Financial Advice Market Review
On 3 December, the FCA published an evaluation of the impact of the Retail Distribution Review (RDR) and the Financial Advice Market Review (FAMR). The aim of the RDR was to establish a resilient, effective and attractive retail investment market that consumers had confidence in and trusted. The objective of FAMR was to identify ways to make the UK’s financial advice market work better for consumers. The evaluation found evidence of some improvements in the market since the conclusion of FAMR, with more UK adults receiving financial advice from more advisers and also an increase in new automated advice services. The evaluation found that further innovation could help even more consumers make better use of their finances: (i) many consumers are still holding money in cash that could be invested to provide potentially higher returns, but they have not sought or received the help with their finances that would help them to make better investment decisions; (ii) the industry offers a range of services but there is significant clustering around certain service types and price points. More innovation in services can help drive greater competition between firms across the market; (iii) more tailored guidance services and simpler advice services could help to attract more consumers towards the help they need. However, during the review, some firms raised concerns about understanding the point at which more general forms of consumer support become advice, suggesting this limits their ability to innovate. The FCA will provide a further update during H2 2021, once it has evaluated responses to its call for input on consumer investments that closes on 15 December 2020. The FCA's research was completed before March 2020 and as a result, long-term changes resulting from COVID-19 will need to be considered as part of its future work. Alongside the report, the FCA has published a consumer research report produced by Ignition House, which informed the evaluation.
FCA letter to mainstream consumer credit lenders on supervision
On 2 December, the FCA published a letter sent to the Boards of Directors of mainstream consumer credit lenders (MCCLs), which include firms providing Consumer Credit Act regulated unsecured overdrafts, loans or credit cards and comprises firms with a range of business models and funding sources. The FCA outlines its expectations of MCCLs in relation to areas it has identified that may harm consumers and markets: (i) affordability checks firms perform are inadequate, leading to or exacerbating the over-indebtedness of customers; (ii) firms fail to establish and implement clear, effective and appropriate policies and procedures for customers in arrears resulting in unfair or inappropriate outcomes for those in financial difficulties; (iii) potential unfair treatment of customers as firms embed and respond to the FCA’s credit card persistent debt regulatory remedies. These are designed to address the problem of credit cards being inappropriately and expensively used for long-term borrowing; and (iv) a potential lack of transparency in the pricing structures and features of consumer credit products which has the potential to lead to adverse customer outcomes. The FCA’s work on overdrafts aims to improve transparency in these products, but there may still be information asymmetries in other products. The FCA also reminds MCCLs to consider what actions are necessary to prepare for the end of the Brexit transition period.
CMA update on super complaint investigation into loyalty penalty
On 1 December, the CMA published its fourth update on its loyalty penalty investigation in five key markets: mobile, broadband, household insurance, cash savings and mortgage markets. The CMA notes that it is evident that significant progress has been made, with both Ofcom and the FCA having undertaken substantial further work to look at this problem in more detail – together estimating that in total more than 28 million customers were paying a loyalty penalty of £3.4 billion. Since CMA’s last update in January: (i) Ofcom has made new rules that require firms to notify mobile and broadband customers when contracts are ending and if better deals are available; (ii) FCA has published research into 10% of longstanding mortgage customers who do not switch but could; (iii) Ofcom has announced further voluntary commitments from all major broadband companies and publishes updated analysis; and (iv) the FCA has announced measures to tackle insurance loyalty penalties.
CMA economic research on loyalty price discrimination
On 1 December, the CMA published a report, prepared by E.CA Economics, on economic research on loyalty price discrimination. The report reviews the academic literature on the economic theory of the loyalty penalty and sets out the lessons it has to offer. This includes both the classical theory such as switching and search costs, and behavioural theories such as consumer inertia and complex contracts. The report found that loyalty penalties: (i) are prevalent in several UK industries, including for example energy, home and motor insurance, broadband and mobile services, as well as cash savings and mortgage products; and (ii) take different forms – either by drastically increasing prices after an initial period, steadily increasing prices at periodic contract renewals or refraining to offer price reductions to legacy customers. The report examines the policy implications of its findings and assesses different policy responses that could address the issue, which focus on: (a) activating consumers; (b) providing information and increasing transparency to facilitate comparability; (c) regulating prices; (d) regulating certain business practices that inhibit consumer choice by making switching unnecessarily difficult; and (e) encouraging firms or intermediaries to de-bias consumers.
Please see the other sections for product-specific updates relating to Covid-19.
EBA reactivates Guidelines on legislative and non-legislative moratoria – Covid-19
On 2 December, the EBA announced that, in light of the impact of a second Covid-19 wave and the restrictions that governments have put in place, it has reactivated its Guidelines on legislative and non-legislative moratoria. The EBA has introduced two new constraints to ensure that the support provided by moratoria is limited to bridging liquidity shortages triggered by the new lockdowns and that there are no operational restraints on the continued availability of credit: (i) only loans that are suspended, postponed or reduced under general payment moratoria for not more than nine months in total, including previously granted payment holidays, can benefit from the application of the Guidelines; and (ii) credit institutions are requested to document to their supervisor their plans for assessing that the exposures subject to general payment moratoria do not become unlikely to pay. This requirement will allow supervisors to take any appropriate action. The EBA revised Guidelines, which will apply until 31 March 2021, include additional safeguards against the risk of an undue increase in unrecognised losses on banks’ balance sheets.
PRA consultation on holding company regulatory transaction fees
On 2 December, the PRA began consulting on proposed rules in respect of regulatory transaction fees for applications for approval or exemption as a holding company. The PRA explains that CRD V introduces new requirements for certain types of parent financial holding companies (FHCs) or mixed FHCs (MFHCs) that substantively control their group, to be subject to supervisory approval and consolidated supervision. The draft Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020 extends powers to the PRA to supervise, monitor, exercise discretions, impose additional requirements, and enforce breaches of obligations in respect of approved FHCs and MFHCs. The PRA therefore proposes that a regulatory transaction fee of £2,500 will be payable in respect of an application for approval or exemption as a holding company made under section 192Q of FSMA. The proposed fee amount has been set to recover the approximate costs to the PRA of assessing each application, including related system changes and other linked regulatory transactions. The proposed implementation date for the proposal is 1 March 2021. The deadline for responses is 8 January 2021.
Europol announces results of ‘European Money Mule Action’ operation
On 2 December, law enforcement authorities from twenty six countries and Europol announced the results of the sixth European Money Mule Action ‘EMMA 6’, a worldwide operation against money mule schemes. Operation EMMA is part of an ongoing project conducted under the umbrella of the EMPACT Cybercrime Payment Fraud Operational Action Plan, designed to combat online and payment card fraud. As a result of EMMA 6: (i) 4 031 money mules were identified alongside 227 money mule recruiters, and 422 individuals were arrested; (ii) 1 529 criminal investigations were initiated; and (iii) with the support of the private sector including more than 500 banks and financial institutions, 4 942 fraudulent money mule transactions were identified, preventing a total loss estimated at €33.5 million.
FATF and BCBS survey on enhancing cross-border payments
On 2 December, FATF in collaboration with BCBS launched a questionnaire to seek feedback from the private sector on the challenges facing cross-border payment services and how to address them without compromising AML/CFT safeguards. FATF explains that cross-border payments generally face four main inter-related and inter-dependent categories of challenges: (i) high cost; (ii) low speed; (iii) limited access for users in accessing services and for payment service providers in accessing payment systems; and (iv) limited transparency about costs, speed, processing chain and payments status. FATF notes that there are a number of contributory factors, including divergent AML/CFT measures adopted at the national level stemming from the FATF standards. The questionnaire therefore aims to gather information to help identify areas of divergence in how jurisdictions have implemented CDD and other measures stemming from the FATF standards or additional AML/CFT measures. The deadline for comments is 15 January 2021.
OFSI blogpost on getting ready for the end of the transition period
On 1 December, the Office of Financial Sanctions Implementation (OFSI) published its blog entitled "Get ready for the end of the transition period". The blog covers changes to the UK sanctions framework after 31 December 2020, when EU sanctions regulations will no longer apply and all sanctions regimes will be implemented through UK regulations. The Sanctions and Anti-Money Laundering Act 2018 (SAMLA) provides the legal framework for the UK to impose, update and lift sanctions autonomously. The Foreign, Commonwealth and Development Office (FCDO), which determines international sanctions policy in the UK, has already laid regulations for over 30 sanctions regimes in preparation for the transition and while these regulations are intended to deliver substantially the same policy effects as the existing regimes, it should not be assumed that they are identical. OFSI will continue to maintain its Consolidated Lists of financial sanctions targets, updating the lists with information from FCDO’s UK Sanctions List at 11pm on 31 December 2020 to reflect all financial sanctions designations made under SAMLA. A significant number of changes are expected as a result of the UK having a different legal test for designations. With regards to licensing, the vast majority of extant licences that have been issued by OFSI under EU Regulations will continue to remain valid until they expire or are revoked. The UK’s main domestic asset-freezing legislation the Terrorist Asset Freezing etc. Act 2010 will be repealed at the end of the transition period. It will be replaced by a domestic counter terrorism regime under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, which will be managed by HMT, and by an international counter terrorism regime under the Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019, which has been introduced by the FCDO.
Centre for Data Ethics and Innovation review into bias in algorithmic decision-making
On 27 November, the Centre for Data Ethics and Innovation (CDEI) published the final report of its review into bias in algorithmic decision-making. The CDEI focused on the use of algorithms in significant decisions about individuals in four sectors: policing, local government, financial services and recruitment. The report makes cross-cutting recommendations that aim to help build the right systems so that algorithms improve, rather than worsen, decision-making: (i) government should place a mandatory transparency obligation on all public sector organisations using algorithms that have an impact on significant decisions affecting individuals; (ii) organisations should be actively using data to identify and mitigate bias - they should make sure that they understand the capabilities and limitations of algorithmic tools, and carefully consider how they will ensure fair treatment of individuals; (iii) government should issue guidance that clarifies the application of the Equality Act to algorithmic decision-making - this should include guidance on the collection of data to measure bias, as well as the lawfulness of bias mitigation techniques (some of which risk introducing positive discrimination, which is illegal under the Equality Act). The review concludes that there is plenty of work to do across industry, regulators and government to manage the risks and maximise the benefits of algorithmic decision-making. The CDEI plans to bring together a diverse range of organisations with interest in this area, and identify what would be needed to foster and develop a strong AI accountability ecosystem in the UK.
FCA update on adding a new sub-fund to an umbrella scheme in the temporary marketing permissions regime
On 3 December, the FCA published a new webpage explaining the process to add a new sub-fund to an umbrella scheme that will be in the temporary marketing permissions regime (TMPR). The Collective Investment Schemes (CIS) Regulations create a UK-wide TMPR for undertakings for UCITS funds which were already passporting into the UK before 11pm on 31 December 2020. The CIS Regulations also extend this regime to new sub-funds. To use the regime, a sub-fund will need to satisfy the conditions specified in regulation 63(3) of the CIS Regulations: (i) the new sub-fund must become authorised by its home state regulator on or after 31 December 2020; (ii) when the new sub-fund becomes authorised by its home state regulator, at least one other sub-fund of the new sub-fund’s umbrella scheme must be a recognised scheme in the TMPR; (iii) after the new sub-fund becomes authorised by its home state regulator and while at least one other sub-fund of the umbrella scheme continues to be so authorised, the operator of the new sub-fund must have notified the FCA that they wish the new sub-fund to enter the TMPR; (iv) the notification must be given before the start of the period specified by the FCA directing the new sub-fund’s umbrella scheme to apply for individual recognition under section 272 of FSMA. The FCA plans to give a direction on 31 December 2020 under regulation 64 of the CIS Regulations setting out the information that's needed to make a valid notification of a new sub-fund. The FCA has published a draft version of this direction and a draft notification letter for reference.
Please see the Brexit section for product-specific updates relating to Markets and Markets Infrastructure.
PRA and ECB statements regarding supervisory cooperation on operational resilience
On 3 December, the PRA issued a statement regarding supervisory cooperation on operational resilience. The PRA explains that banks have made progress in enhancing operational resilience in recent years including through their response to the challenges posed by the Covid-19 pandemic. In addition, the PRA is encouraged by recognition of the shared interest between supervisors and the industry in strengthening operational resilience, and the actions firms have taken to date. However, the PRA notes that more work remains to be done to ensure banks are resilient to potential operational disruptions from all hazards, including severe but plausible cybersecurity incidents, which could pose risks to the wider financial system. The PRA recognises the global and interconnected nature of banks and the importance of supervisory coordination and is committed to working closely with the ECB and the Federal Reserve to ensure that supervisory approaches on operational resilience are well coordinated. The ECB has published a near-identical statement.
FCA Primary Market Bulletin Issue 32 on the Short Selling Regulation, MAR and the Prospectus Regulation
On 3 December, the FCA published Issue 32 of its Primary Market Bulletin (PMB) to remind issuers, investors and other market participants, of the changes that will take effect when the onshored legislation enters into force and provide an update on its work to implement some aspects of the onshored legislation. The FCA reiterates key messages contained in PMB Issue 21 on the Short Selling Regulation (SSR) and MAR. It also: (i) clarifies the nature of reporting requirements under Article 5 (Exemption for buy-back programmes and stabilisation) of UK MAR; and (ii) provides an update on how the net short position reporting will work from the end of the transition period (TP) under the SSR. With regards to the Prospectus Regulation, the FCA: (a) confirms that it does not require any additional information from issuers under PRR 3.2.7R (Publication of the prospectus) to enable the FCA to comply with its obligations before the end of the TP; (b) encourages issuers and their advisors to arrange their passporting request with the relevant EU national competent authorities well in advance of 31 December, given the new procedures ESMA is launching and the potential increase in applications due to the end of the TP; and (c) notes that the EC’s proposals regarding the minimum information content of the exemption document in connection with a takeover by means of an exchange offer, a merger or a division have not yet been adopted by the EU – if it does not come into force by the end of the TP, it will not automatically become part of UK law.
IOSCO consults on issues relating to access to market data in secondary equity markets
On 3 December, IOSCO published a consultation report on market data in the secondary equity markets. IOSCO explains that as the markets have evolved to become largely electronic, the market data needs and means to access such data have likewise changed for many market participants. Market participants in many jurisdictions have raised concerns about the content, costs, accessibility, fairness and consolidation of market data. IOSCO describe and ask for feedback on several issues: (i) what market data is necessary to facilitate trading in today’s markets (i.e., what is considered “core” market data for use by market participants, including investors); (ii) fair, equitable and timely access to market data; (iii) fees for market data and how fees are determined and charged to subscribers; (iv) the need for and extent of data consolidation; and (v) how other products or services that relate to accessing market data are provided by trading venues or other regulated data providers, and the fees associated with such products and services. IOSCO believes that this work will provide a useful source of information for jurisdictions considering their approach to market data and access to market data. Based on the analysis of the comments received, IOSCO will consider whether any policy work is needed. The deadline for comments is 26 February 2021.
FSB report on implementation progress of OTC derivatives market reforms
On 3 December, the FSB published a report (dated 25 November 2020) reviewing progress made by standard-setting bodies, national and regional authorities and market participants towards meeting the G20 commitments for reforms to global OTC derivatives markets. The FSB’s findings include: (i) overall implementation of the G20’s OTC derivatives reforms is well advanced, but there has been limited progress since October 2019 across FSB member jurisdictions; (ii) trade reporting requirements for OTC derivatives transactions and interim capital requirements for non-centrally cleared derivatives (NCCDs) are in place in twenty-three FSB jurisdictions, unchanged since the last progress report. Some jurisdictions report that they have expanded the scope of their trade reporting requirements, reviewed the efficiency of their reporting regime or removed barriers for data sharing; (iii) platform trading requirements are in force in thirteen jurisdictions, unchanged for the second consecutive year; (iv) seventeen FSB jurisdictions already have comprehensive standards for mandatory central clearing requirements, unchanged since the last progress report. Steps have been taken in many jurisdictions and at the international level to further strengthen the resilience of central counterparties (CCPs); (v) margin requirements for NCCDs, are in force in sixteen jurisdictions and all these adopted the one-year extension agreed by BCBS and IOSCO for the final two implementation phases in light of Covid-19; and (vi) only eight FSB jurisdictions currently have comprehensive final capital requirements in force for NCCDs with the transition period having lapsed.
BoE’s annual report on supervision of FMIs
On 3 December, the BoE published the 2020 Annual Report on its supervision of financial market infrastructures (FMIs), covering the period from 15 February 2019 to 3 December 2020. The Report sets out how the BoE has done that in the context of three significant challenges: the impact of Covid-19, continuing innovation in payments, and preparations for the end of the transition period following the UK’s withdrawal from the EU. The report also outlines the BoE’s future priorities: (i) to continue to promote FMIs’ financial and operational resilience, with its immediate focus remaining on addressing the impact of Covid-19, in particular: (a) continuing to develop the approach to supervising operational resilience, including publishing the final policy on operational resilience; (b) publishing further information on CCP supervisory stress testing, following completion of a pilot exercise; and (c) considering further development of the UK regime for CCP resolution; and (d) the BoE continues to consider that there is a strong case for introducing SM&CR to FMIs, and would support legislation to facilitate this; (ii) examining the procyclicality of margin calls and the resilience of non-bank liquidity when faced with margin calls; (iii) contributing to international work to learn the lessons from this year’s market volatility; (iv) continue its work to ensure that technological change at FMIs, including the next generation of payments infrastructure, is designed and implemented in a way that promotes the resilience of individual FMIs and the broader financial system; and (v) to develop an approach to recognition and supervision of incoming CCPs - the BoE will be responsible for finalising policy on important areas of the implementation of EMIR 2.2 in the UK, including specifying further the approach to dividing non-UK CCPs into tiers. The BoE is currently considering its policy approach in these areas and will set out further details in due course.
FCA application form for UK securitisation repositories
On 2 December, the FCA updated its webpage on securitisation repositories (SRs) under the Securitisation Regulation to add a link to the application form for registration as a UK SR. To be authorised as a UK SR, a firm must meet the conditions set out in article 10 of the onshored Securitisation Regulation.
Corrigenda to IFD and IFR published in OJ
On 2 December, corrigenda to the IFR and IFD were published in the OJ: (i) corrigendum to the IFD amending Article 2(2), Article 54, Article 63(2) and Article 67(1) (second sub-paragraph); and (ii) corrigendum to the IFR, amending Article 57(2), Article 62(10)(a), (11)(a), (12)(a), (25) and (33), Article 63(6) and (7), and Article 66(3)(b).
FCA update on new UK Benchmarks Register
On 1 December, the FCA published a new webpage on the UK benchmarks register. It will be accessible from 11pm on 31 December, in the ‘Other registers’ section of the Financial Services Register. The new register will consist of two sections, displaying: (i) the Benchmark Administrator Register – this will be a public record of all benchmark administrators that are authorised, registered or recognised by the FCA, or that benefit from an equivalence decision that has been adopted by the UK; and (ii) the Third Country Benchmarks Register – this will be a public record of all benchmarks that are provided by third-country benchmark administrators that are recognised by the FCA, endorsed by a UK-authorised or registered benchmark administrator (or other supervised entity) for use in the UK, or that are provided by benchmark administrators that have notified the FCA that they benefit from an equivalence decision that has been adopted by the UK. The FCA also reminds third-country administrators that, as HMT is proposing to extend the transitional period for third-country benchmarks again, from 31 December 2022 to 31 December 2025, third-country administrators wanting to continue to use benchmarks in the UK after 31 December 2025, must apply to the FCA for approval via equivalence, recognition or endorsement, before this date.
EP and Council reach agreement on proposed Regulation amending the Benchmarks Regulation
On 30 November, the EP announced that it and the Council of the EU have reached political agreement on the proposed Regulation amending the Benchmarks Regulation (BMR) as regards the exemption of certain third-country FX benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation. The EP highlighted the key elements of the deal: (i) if necessary, the EC will be granted power to replace: (a) “critical” benchmarks, which influence financial instruments and contracts with an average value of at least €500 billion and could thus affect the stability of financial markets across Europe; (b) benchmarks with no, or very few, appropriate substitutes whose cessation would have a significant and adverse impact on market stability; and (c) third-country benchmarks whose cessation would significantly disrupt the functioning of financial markets or pose a systemic risk for the financial system in the Union; (ii) EU market participants will be able to use benchmarks administered in a country outside the EU until the end of 2023; and (iii) the EC will prepare the report on legislative review by 15 June 2023. Once technical work on the text is complete, the agreement must be approved by the Economic and Monetary Affairs Committee and the EP as a whole. The EC has welcomed the agreement in a separate statement, noting that the EP and the Council also agreed to postpone the entry into application of the rules on third-country benchmarks until 31 December 2023, with the possibility of an extension by the EC afterwards.
IBA consultation on intention to cease US$ LIBOR and FCA, FRB and ISDA responses
On 30 November, the ICE Benchmark Administration (IBA) announced that it planned to consult on its intention to cease the publication of one-week and two-month USD LIBOR settings on 31 December 2021, and the overnight, one, three, six and twelve month USD LIBOR settings on 30 June 2023. The IBA expects to close the consultation for feedback by the end of January 2021. The FCA in its response welcomes and supports the announcement and sets out its potential approach to the use of proposed new powers under the Financial Services Bill to prohibit some or all new use by supervised entities in the UK of a critical benchmark where a benchmark administrator has confirmed its intention that the benchmark will cease. The US Federal Reserve Board (FRB), Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency welcomed the IBA and FCA announcements. ISDA has also responded restating that none of these statements constitute an index cessation event under the IBOR Fallbacks Supplement or the ISDA 2020 IBOR Fallbacks Protocol or trigger fallbacks under the 2018 ISDA Benchmarks Supplement or its protocol.
FCA on clearing thresholds for UK financial counterparties and non-financial counterparties
On 30 November, the FCA updated its webpage on EMIR providing information on how UK financial counterparties (FCs) and non-financial counterparties (NFCs) should notify the FCA when they exceed clearing thresholds under the UK EMIR. These parties will need to: (i) complete their first clearing threshold notification under UK EMIR by 17 June 2021 in order to ensure a smooth transition into the UK regime and in line with the existing notification process; (ii) determine their aggregate group, month-end, average position of OTC derivatives in each asset class for the previous 12 months and compare them with the clearing thresholds as prescribed by UK EMIR. All UK FCs and NFCs subject to the clearing obligation must submit a first notification, regardless of whether they choose to calculate their positions. Following the first notification, if a counterparty chooses to calculate its positions in OTC derivatives, it should perform this calculation every 12 months. The FCA does not need to be notified if there is no change to the result of the subsequent calculations, only if the result means that the counterparty no longer exceeds the clearing threshold. UK firms that currently benefit from intragroup exemptions from the clearing obligation and margin requirements for uncleared derivative transactions with their EU group entities covered by the equivalence decision must: (a) notify the FCA of the entity pairs to which the equivalence direction applies; and (b) confirm whether there have been any other changes to the conditions under which the original intragroup derogation was granted. Notifications must be submitted by 1 February 2021 to continue benefitting from existing exemptions.
Please see the Financial Crime section for product-specific updates relating to Payment Services and Payment Systems.
Please see the Markets and Markets Infrastructure section for the BoE’s annual report on supervision of financial market infrastructures.
HMT consultation on insolvency changes for PIs and EMIs
On 3 December, HMT began consulting on proposed insolvency changes for payment institutions (PIs) and electronic money institutions (EMIs), including a bespoke special administration regime (SAR). The proposed SAR is intended to have the following key features: (i) an explicit objective on the special administrator to return customer funds as soon as reasonably practicable; (ii) a bar date for client claims to be submitted to speed up the distribution process; (iii) a mechanism to facilitate the transfer of customer funds to a solvent institution; (iv) a post-administration reconciliation to top up or drawdown funds to or from the safeguarding process; (v) provisions for continuity of supply to minimise disruption; (vi) rules for treatment of shortfalls in the institutions’ safeguarding accounts; (vii) rules for allocation of costs; and (viii) an explicit objective on the special administrator for timely engagement with payment systems and authorities. HMT also propose to extend the full suite of provisions in part 24 of FSMA to PIs and EMIs, which provides the FCA with specific powers to protect consumers in an insolvency process of an FCA authorised firm. On 17 December the Government will publish a further annex with details regarding rules for the proposed SAR. The rules will be closely related to the Investment Bank SAR rules with minor modifications. The deadline for comments is 14 January 2021 and 28 January 2021 for the proposals published on the 17 December.
Pay.UK report on adoption of ISO 20022 global messaging standard
On 30 November, Pay.UK published a report setting out its conclusions and recommendations following its consultation in relation to adopting ISO 20022, the common global messaging standard for UK payments, along with other key standards for the clearing and settlement capability that will be enabled by the New Payments Architecture (NPA). Pay.UK set out their action plan to address the responses to the consultation in relation to: (i) a recommended direction that it is proposing on the adoption of ISO 20022 for the clearing and settlement capability to be enabled by the NPA; (ii) foundational technical details for the ISO 20022 message standard including Pay.UK’s technical design and ISO 20022 readiness approach; and (c) the future direction on concepts that require a degree of standardisation across the payments ecosystem (i.e. from the central clearing and settlement hub to end users). Pay.UK intends to publish a series of updates in 2021 to show the progress it makes.
European Payments Council first SEPA request-to-pay scheme rulebook
On 30 November, the European Payments Council (EPC) published the first version of the Single European Payments Area (SEPA) Request-To-Pay scheme (SRTP) rulebook. The EPC sets out important dates: (i) the first release will be effective from 15 June 2021 to allow for an independent certification body to be selected and become operational for the certification of applicants to the SRTP scheme – the EPC is expected to launch a request for proposal for this purpose in February 2021; (ii) the SRTP scheme adherence process is planned to be opened in the first week of May 2021; (iii) the second version of the scheme rulebook which will support more elaborate functionalities is envisaged to be published by the end of November 2021; (iv) the EPC requests that market participants submit change requests in relation to the first release by close of business on 26 February 2021, as part of its structured and transparent change management process that is governed by the rulebook; and (v) the implementation guidelines related to the first version of the scheme rulebook are scheduled to the be published by end-January 2021. The EPC notes possible topics to be addressed in a future version of the SRTP scheme rulebook include payment guarantee, instalment payments, pre-authorisation of payment, payment initiation in Payer’s application, possibility to include a URL as well as making the scheme currency agnostic.
ECB consults on revisions to SIPS Regulation
On 27 November, the ECB began consulting on proposed amendments to the Regulation on oversight requirements for systemically important payment systems (SIPS Regulation). The ECB’s proposals set out: (i) the criteria for determining which of the Eurosystem central banks is to be designated as the competent authority for conducting the oversight of a SIPS. In exceptional circumstances where a pan-European payment system has been overseen by a national central bank (NCB) for five years or more prior to becoming a SIPS, it would also be possible under the proposal to designate two competent authorities, i.e. the ECB and an NCB; (ii) an additional, flexible and forward-looking methodology for the identification of a payment system as a SIPS to ensure that all relevant factors can be taken into account when assessing the systemic importance of a payment system. One such factor is the nature and importance of the payment system’s participants; and (iii) a phasing-out period prior to reclassifying a SIPS as a non-SIPS, i.e. SIPS status would be withdrawn after the payment system concerned has not met the SIPS identification criteria for two years in a row as assessed in the verification exercises, or would clearly fail to fulfil the criteria in the following exercise. The ECB has published draft versions of: (a) Regulation amending the SIPS Regulation on oversight requirements for SIPS; (b) Decision amending Decision (EU) 2017/2098 on procedural aspects concerning the imposition of corrective measures for non-compliance with the SIPS Regulation; and (c) Decision amending Decision (EU) 2019/1349 on the procedure and conditions for exercise by a competent authority of certain powers in relation to oversight of SIPS. The deadline for responses is 8 January 2021.
Please see the Brexit section for the publication of the Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020.
Please see the Sustainable Finance section for the ECB’s final guide and report on climate-related and environmental risks for banks.
EBA final draft RTS on the treatment of non-trading book positions subject to foreign-exchange risk or commodity risk under CRR II
On 3 December, the EBA published final draft Regulatory Technical Standards (RTS) on how institutions should calculate the own funds requirements for non-trading book positions that are subject to FX risk or commodity risk in accordance with the alternative standardised approach (SA) and the alternative internal model approach (IMA) under CRR II. The final draft standards specify the value that institutions are to use when computing the own funds requirements for market risk for banking book positions. In this respect, the standards require institutions to use the last available accounting value or the last available fair value for positions attracting foreign-exchange risk. In addition, institutions are not required to perform a daily re-valuation of banking book positions attracting foreign-exchange risk. However, they must reflect the changes in the position’s foreign-exchange component on a monthly basis under the SA and on a daily basis under the IMA. For positions attracting commodity risk, institutions are required to use the fair value as a basis of their calculations. In addition, the final draft standards lay down a prudential treatment for the calculation of the own funds requirements for market risk of non-monetary items held at historical cost that may be impaired due to changes in the foreign-exchange rate. In this respect, the standards identify a specific methodology that institutions should use when capitalising the foreign-exchange risk stemming from those items under the SA. Furthermore, the standards require institutions to model directly the risk of impairment due to changes in the relevant exchange rate in the case of an IMA being used. Finally, the standards specify an ad-hoc treatment with respect to the calculation of the actual and hypothetical changes associated to banking book positions for the purpose of the backtesting and the profit and loss attribution requirements. This is to address the issue of jumps in the value of banking book positions that may lead to over-shootings in the backtesting that are not due to changes of market risk factors. The final draft RTS are set out in a draft Commission Delegated Regulation supplementing the CRR. The EBA proposes that the Delegated Regulation should enter into force twenty days after its publication in the OJ. The EBA will submit the final draft RTS to the EC for adoption.
PRA on forthcoming CRD V policy statement
On 30 November, the PRA published a statement explaining that it intends to publish its policy statement on its approach to transposing CRD V, including its approach to revisions to the definition of capital for Pillar 2A by mid-December 2020.
Group of Central Bank Governors and Heads of Supervision commit to ongoing coordinated approach to mitigate Covid-19 risks to the global banking system and endorse future direction of BCBS work
On 30 November, the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the BCBS, endorsed a coordinated approach to mitigating Covid-19 risks to the global banking system. GHOS: (i) strongly support BCBS’ repeated guidance that a measured drawdown of Basel III capital and liquidity buffers is appropriate until the Covid-19 crisis is over. After the crisis, supervisors will provide banks with sufficient time to rebuild their buffers, taking account of economic, market and bank-specific conditions; (ii) tasked BCBS with continuing to pursue a coordinated approach in responding to the crisis, to preserve a global level playing field and to avoid regulatory fragmentation; (iii) unanimously reiterated their expectation for the full, timely and consistent implementation of all aspects of the Basel III framework; (iv) agreed to mark, with the present agreement on the Basel III framework, a clear end to the post-GFC Basel III policy agenda. Any further potential adjustments to Basel III will be limited in nature and consistent with BCBS’s evaluation work; and (v) endorsed a series of recommendations from BCBS to focus its policy and supervisory agenda on future risks to the global banking system and its vulnerabilities. BCBS’s future work will focus on new and emerging topics, including structural trends in the banking sector, the ongoing digitalisation of finance and climate-related financial risk.
Please see the Brexit section for the publication of the Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020.
EC interpretation of certain provisions of the revised bank resolution framework, published in OJ
On 2 December, the EC’s notice relating to the interpretation of certain legal provisions of the revised bank resolution framework in response to questions raised by Member States’ authorities was published in the OJ. The questions relate to BRRD as amended by BRRD II, and the interaction of certain aspects of BRRD II with: (i) CRR (as amended by CRR II); and (ii) CRD IV (as amended by CRD V) and the Single Resolution Mechanism Regulation. There are 80 questions and answers covering, amongst other things: (a) the selling of subordinated eligible liabilities to retail clients; (b) the minimum requirement for own funds and eligible liabilities; (c) the contractual recognition of bail-in and the contractual recognition of resolution stay powers; and (d) the write-down or conversion of capital instruments and eligible liabilities.
SRB 2021 work programme and 2021-23 multi-annual programme
On 30 November, the Single Resolution Board (SRB) published a document containing its work programme for 2021 and its multi-annual programme, covering the period 2021-23. The SRB’s priorities include: (i) achieving resolvability of SRB banks and less significant institutions (LSIs) – (a) implement the SRB Expectation for Banks (EfB) for significant institutions and cross-border LSIs; (b) further operationalise resolution plans, together with banks, to ensure they are actionable at short notice and support effective resolution action; (c) conduct resolvability assessments which feed into an SRB “Heatmap”, reflecting banks’ progress in removing impediments to resolvability according to harmonised horizontal criteria, derived from the EfB; (d) designing and performing on-site inspections, to test banks’ capabilities in respect of the operationalisation of resolution plans and dedicated areas of the EfB; and (e) further enhance oversight function of less significant institutions (LSI) that are under NRA remit, to ensure their resolvability across the Banking Union; (ii) fostering a robust resolution framework – the SRB will revise and develop policies, including on minimum requirements for own funds and eligible liabilities (MREL), public interest assessment (PIA), and the financial continuity framework; (iii) preparing and carrying out effective crisis management with a view to further enhancing crisis management – the SRB, in close cooperation with the NRAs, will make additional steps to ensure readiness for crisis, by: (a) enhancing readiness of the SRB for implementing resolution schemes based on resolution tools other than bail-in; (b) updating procedures, documents and tools for crisis cases; extending and updating the National Handbooks, to operationalise the resolution scheme execution; (c) developing stances and procedures on post-resolution topics; and (d) carrying out dry run exercises; and (iv) Single Resolution Fund (SRF) – a key priority is monitoring covered deposits, including work to calculate individual contributions, and focusing on litigation involving contributions.
Eurogroup on the European Stability Mechanism reform and the early introduction of the backstop to the Single Resolution Fund
On 30 November, the Eurogroup published a statement announcing that it has agreed: (i) to proceed with the reform of the European Stability Mechanism (ESM), to sign the revised Treaty in January 2021 and launch the ratification process; and (ii) to advance the entry into force of the common backstop to the Single Resolution Fund (SRF) by the beginning of 2022; and (iii) make the consequential amendments to the Intergovernmental Agreement (IGA) on the SRF to bring forward the mutualisation of ex-post contributions. Member states will strive to complete the process of ratification of the Agreement amending the IGA at the same time as the agreement amending the ESM Treaty, as soon as necessary for the early introduction of the common backstop. The reform will further develop the ESM toolkit and strengthen the role of the ESM in the design, negotiation and monitoring of financial assistance programmes. It also provides for establishing a common backstop to the SRF in the form of a credit line from the ESM to replace the Direct Recapitalisation Instrument, providing a financial safety net for bank resolutions in the Banking Union. The Eurogroup welcomes and summarises the initiatives taken by the European institutions to further reduce risks in the Banking Union. It invites the EC to review its state-aid framework for banks in the context of the review of the crisis management framework, both starting in 2021 and to be completed in parallel by 2023, ensuring entry into force at the same time with the review of the crisis management framework with a view to ensuring consistency between the two frameworks, adequate burden-sharing of shareholders and creditors to protect taxpayers, and preservation of financial stability.
Three Commission Delegated Regulations on ESG benchmarks published in the OJ
On 3 December, three Commission Delegated Regulations supplementing Regulation (EU) 2016/1011 were published in the OJ, as regards: (i) the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published (2020/1816); (ii) the minimum content of the explanation on how environmental, social and governance factors are reflected in the benchmark methodology (2020/1817); and (iii) minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (2020/1818). The Delegated Regulations enter into force and apply on 23 December 2020 (that is, 20 days after their publication in the OJ).
UN Environment Programme Finance Initiative consults on guidance for reporting on Principles for Responsible Banking
On 2 December, the UN Environment Programme Finance Initiative (UNEP FI) began consulting on draft guidance designed to support signatories of the Principles for Responsible Banking with reporting on their implementation of the principles. The Principles constitute an overarching framework that guides banks on how to align their business strategies and practices with society’s goals, such as implementing sustainability frameworks/principles/directives such as the UN Global Compact Principles, TCFD recommendations, Non-Financial Reporting Directive, Principles for Responsible Investment, among others. The consultation contains: (i) questions related to the reporting requirements in the Reporting and Self-Assessment Template; (ii) guidance on integrating reporting on the Principles with other frameworks; and (iii) an example of how to complete the Reporting and Self-assessment Template. The deadline for comments is 29 January 2021.
ECB final guide and report on climate-related and environmental risks for banks
On 27 November, the ECB finalised its amendments to its guide on climate-related and environmental risks following public consultation. The guide: (i) outlines the ECB’s understanding of the safe and prudent management of climate-related and environmental risks under the current prudential framework; (ii) describes how the ECB expects institutions to consider climate-related and environmental risks, as drivers of existing categories of risk, when formulating and implementing their business strategy and governance and risk management frameworks; and (iii) explains how the ECB expects institutions to become more transparent by enhancing their climate-related and environmental disclosures. To follow up, in early 2021, the ECB will ask banks to conduct a self-assessment in light of the supervisory expectations outlined in the guide and to draw up action plans on that basis. The ECB will then benchmark the banks’ self-assessments and plans, and challenge them in the supervisory dialogue. In 2022 it will conduct a full supervisory review of banks’ practices and take concrete follow-up measures where needed. The ECB’s next supervisory stress test in 2022 will also be conducted on climate-related risks. In a separate report, the ECB assessed climate and environmental related risk disclosures in single supervisory mechanism (SSM) countries. The ECB concluded that, in general, institutions do not yet comprehensively disclose their risk profile and that significant efforts are needed to promote transparency in the financial markets on the climate-related and environmental risks institutions are exposed to. As of yet, virtually none of the institutions in the scope of the assessment would meet a minimum level of disclosures set out in the ECB’s guide. There is a general lack of articulation among climate-related topics and statements are too rarely supported by quantitative information. Nonetheless, the ECB observed a clear positive trend in the level of climate-related disclosures over the past two years. In H2 2021, the ECB intends to identify remaining gaps and discuss them with the banks.
ECB speech on bank boards and supervisory expectations
On 3 December, the ECB published a speech by Elizabeth McCaul, ECB Supervisory Board Member, on bank boards and supervisory expectations. Highlights include: (i) governance has been one of the key areas of supervisory focus of ECB Banking Supervision and undeniable progress has been made in Europe since 2015 with regard to bank governance, with ECB Banking Supervision raising the bar in terms of what is expected of bank boards, supervisory committees and internal control frameworks and policies, to name just a few examples; (ii) there is still plenty of room for improvement in governance in euro area banks and the current Covid-19 environment is making it all the more important for banks to address some of these shortcomings, as they can seriously compromise their overall resilience; (iii) ECB Banking Supervision conducts the final quality control over the appointment of board members - in 2021 the ECB will implement a stricter and more intrusive approach to fit and proper assessments, by publishing a revised guide on fit and proper assessments clarifying the ECB’s expectations on the suitability of bank directors; and (iv) while the aim is for rigorous fit and proper criteria to be applied equally across all euro area banks, unfortunately the implementation of these criteria is not currently harmonised across all euro area countries reflecting varied implementation of the CRD. Fully harmonised fit and proper criteria and increased clarity on the fit and proper process is needed in order to ensure a level playing field.
BoE speech on new Shari’ah compliant non-interest based deposit facility
On 2 December, the BoE published a speech by Andrew Hauser, BoE Executive Director, Markets, on why Islamic finance has an important role to play in supporting the recovery from Covid-19 and how BoE's new Shari'ah-compliant non-interest-based deposit facility can help. The BoE will launch the Alternative Liquidity Facility (ALF) in Q1 2021. The ALF will: (i) provide UK Islamic banks (and indeed any other UK banks with formal restrictions on engaging in interest-based activity) with greater flexibility in meeting Basel III High Quality Liquid Asset (HQLA) requirements, enabling them to hold a reserves-like asset in a non-interest-based environment; and (ii) be structured as a wakalah or fund-based facility meaning that participant deposits will be backed by a fund of assets, the return from which, net of hedging and operational costs, will be passed back to depositors in lieu of interest. Over the coming months, the BoE will finalise legal documentation, complete the BoE’s operational testing and begin the onboarding process for eligible applicants.
FCA response to HoC Treasury Committee on the work of the FCA and the revised complaints scheme consultation
On 2 December, the House of Commons Treasury Committee published a letter from Nikhil Rathi, FCA Chief Executive, responding to questions raised by Mel Stride, Committee Chair, after a hearing held by the committee on 4 November 2020 on the work of the FCA. Mr Rathi sets out answers to the Committee’s follow-up questions in relation to: (i) FSCS protection and levies; (ii) improving customer investments outcomes; (iii) using the FCA's data strategy to improve detection of harm and intervention; (iv) PII premiums; (v) reducing phoenixing; (vi) managing firm failure and monitoring firms' financial resilience; (vii) bounce-back loans scheme and delays in processing applications; and (viii) update on FCA work on loyalty penalties. In a letter from Charles Randell, FCA Chair, the FCA has responded separately to the Committee’s questions in relation to the joint consultation paper with the BoE and PRA on a revised scheme for complaints against the UK financial services regulators.
FCA Handbook Notice 82
On 27 November, the FCA published Handbook Notice No 82. The notice sets out the changes to the Handbook made by: (i) Individual Accountability (FCA-Authorised Firms) (COVID-19 and Extension of Deadlines) Instrument 2020; (ii) Disclosure Guidance and Transparency Rules Sourcebook (Electronic Reporting Format) Instrument 2020; (iii) Technical Standards (Electronic Reporting Format) Instrument 2020; (iv) COVID-19 Consumer Credit Instrument 2020; (iv) Debt Advice Levy (Additional Sum 2020/2021) Instrument 2020; (v) Technical Standards on Strong Customer Authentication and Common and Secure Methods of Communication Instrument 2020; (vi) Payment Services (Amendment No 2) Instrument 2020; (vii) Technical Standards on Strong Customer Authentication and Common and Secure Methods of Communication (Amendment of eIDAS Certificate) Instrument 2020; and (viii) Prospectus Regulation Rules (Amendments) Instrument 2020.
