Key Regulatory Topics: Weekly Update 12 July 2019 - 18 July 2019

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BREXIT

EEA Joint Committee Decisions

On 18 July, four Decisions of the EEA Joint Committee made on 29 March and five Decisions made on 11 April that amend Annex IX (Financial Services) to the EEA Agreement were published in the OJ. The Decisions incorporate either Commission Implementing Decisions or Commission Delegated Regulations that have been made under EMIR or MiFIR.

Decision 35/2019

Decision 36/2019

Decision 37/2019

Decision 38/2019

Decision 100/2019

Decision 101/2019

Decision 102/2019

Decision 103/2019

Decision104/2019

The Bank of England and Financial Services Act 2016 (Commencement No. 6 and Transitional Provisions) Regulations 2019 published

On 18 July, the Bank of England and Financial Services Act 2016 (Commencement No. 6 and Transitional Provisions) Regulations 2019 were published. These Regulations bring into force the amendments made by section 21 of and Schedule 4 to the Bank of England and Financial Services Act 2016. Those provisions amend Part 5 of the Financial Services and Markets Act 2000 which regulates the conduct of persons working in banks and certain investment institutions (referred to as "relevant authorised persons"), extending the provisions to all authorised persons.

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AFME publishes list of remaining no-deal Brexit risks

On 16 July, AFME published a short briefing paper outlining remaining risks for the financial services sector in the event of a no-deal Brexit. Oliver Moullin, Managing Director, Brexit at AFME explained that in light of the ongoing political uncertainty, banks are continuing to implement their contingency plans for a no-deal Brexit scenario. However, there are remaining risks from a regulatory and operational perspective where further clarity is still needed to minimise disruption to markets and businesses across Europe. These include issues such as the trading obligations for shares and derivatives, clarifying contingency measures and providing clarity on the renewal of equivalence for UK CCPs.

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Draft Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 3) Regulations 2019 laid before Parliament

On 16 July, a draft version of the Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 3) Regulations 2019 was published, together with a draft explanatory memorandum. The instrument makes amendments to a number of financial services EU exit statutory instruments, correcting minor errors identified in legislation after it was laid before Parliament, and updating certain references to account for the Article 50 process extension. Regulations 1 and 6 will come into force at 11.59pm on the day on which the Regulations are made. Regulations 4, 5, 7 and 8 will come into force on the day after the day on which the Regulations are made and Regulations 9 to 14 come into force immediately before exit day. The remainder of the regulations will come into force on exit day.

Statutory instrument

Explanatory memorandum

CAPITAL MARKETS

Prospectus Regulation Rules Instrument 2019

On 15 July, the FCA published the final Prospectus Regulation Rules Instrument 2019. The instrument makes various changes to the FCA Handbook to align it with the EU Prospectus Regulation, and comes into force on 21 July.

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ESMA consults on disclosure guidelines under the Prospectus Regulation

On 12 July, ESMA launched a public consultation concerning its draft guidelines on disclosure requirements under the Prospectus Regulation. The deadline for responding to the consultation is 4 October.

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ESMA updates Q&As relating to the Prospectus Regulation

On 12 July, ESMA updated its Q&As relating to the Prospectus Regulation by including 25 new Q&As. Three of these Q&As provide clarification on the following issues in relation to the Prospectus Regulation: (i) the application of Article 23(3) of the Prospectus Regulation where an entity distributes its own securities; and (ii) continuing an offer which has initially been made using a base prospectus approved under the Prospectus Directive after the entry into application of the Prospectus Regulation. ESMA will continue analysing the existing Q&As published in relation to the Prospectus Directive and will decide whether to update and carry them forward in the Q&A document relating to the Prospectus Regulation.

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CONDUCT

Principles and guidance for board risk committees and risk functions in the UK financial services sector

On 12 July, the Risk Coalition published for consultation draft principles and guidance for board risk committees and risk functions in the UK financial services sector. The guidance provides a commonly agreed benchmark for ‘what good looks like’ – something that has not been available previously. Part A of the guidance focuses on what can reasonably be expected of a mature board risk committee through defining a number of key principles. Part B of the guidance follows a similar format but focuses on the role and responsibilities of the chief risk officer and second line risk function. The deadline for responding to the consultation is 20 September.

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CONSUMER/RETAIL

LSB’s Revised Standards of Lending Practice for business customers

On 15 July, the Lending Standards Board (LSB) published a revised version of its Standards of Lending Practice for business customers, announcing the increased threshold; the Standards will now protect businesses with a turnover of up to £25m. Previously the threshold was set at £6.5m The extended Standards will become effective on 1 November and the current Standards remain in place until this date. This extension initially covers core products: loans, overdrafts, credit cards and charge cards.

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House of Commons Committee of Public Accounts - Consumer Protection

On 12 July, the Public Accounts Committee published a report on Consumer Protection. The main issue that was considered is that regulators (Ofwat, Ofgem, Ofcom and the FCA) take different and at times inconsistent approaches to common consumer issues, and are not fully utilising the mechanisms they have to collaborate to produce tangible benefits. For example, each sector has different rules for providing compensation and redress when things go wrong. The regulators also set different rules and principles relating to how firms treat consumers in vulnerable situations, and how firms should provide information to customers (for example in bills or annual statements). These inconsistent approaches can make it more confusing for consumers, and mean the regulators are not maximising their effectiveness by sharing best practice. Each regulator has been invited to write to the Committee by the end of 2019 outlining the approach they have taken and the work done with their relevant policy departments to address these issues.

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FINANCIAL CRIME

Please find a link here to an A&O publication entitled "U.S. continues aggressive sanctions and anti-money laundering enforcement against non-U.S. banks".

Updated Joint Money Laundering Steering Group Guidance

On 18 July, the JMLSG published a press release confirming that Final Board approved texts have been submitted to HMT for approval in relation to revised sectors 4 (Credit unions) and 20 (Brokerage services to funds). Notification of approval will be published on the website once it has been received by the Board. Work continues on preparing new Guidance that will reflect changes in the Money Laundering Regulations (MLRs) due to be brought in in view of 5MLD. The finalisation and publication of new Guidance is anticipated to be in line with the timing of the expected 10 January 2020 implementation of the MLRs.

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FCA announces participants and user cases for 2019 AML TechSprint

On 16 July, the FCA announced the participating firms, data providers and user cases for the 2019 global AML and financial crime TechSprint, which runs from 29 July to 2 August. The FCA will be working with international colleagues from the US, Europe, Africa, Asia and the Pacific, at the FCA offices in London, with a satellite office in Washington. The aim is to develop solutions at the TechSprint that will go on to be tested in the real world through the Sandbox and GFIN network. The participants will seek to develop solutions to a number of problems, including: (i) how a network of market participants can use privacy enhancing technologies and data analytics to interrogate financial transactions stored in databases within institutions to identify credible suspicions without compromising data privacy legislation; (ii) how market participants can efficiently and effectively codify topologies of crime which can be shared and readily implemented by others in their crime controls; (iii) how a market participant can check that the company or individual they are performing due diligence on has not raised flags or concerns with another market participant, and/or verify that the data elements they have for the company or individual match those held by another market participant; and (iv) how technology can be used to assist in identifying an ultimate beneficiary owner across a network of market participants and a national register.

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Economic Crime Plan 2019-2022

On 12 July, HMT released the Economic Crime Plan 2019-2022, which sets out 7 priority areas that were agreed in January 2019 by the Economic Crime Strategic Board, the ministerial level public-private board charged with setting the UK’s strategic priorities for combatting economic crime: (i) develop a better understanding of the threat posed by economic crime; (ii) pursue better sharing and usage of information to combat economic crime within and between the public and private sectors across all participants; (iii) ensure the powers, procedures and tools of law enforcement, the justice system and the private sector are as effective as possible; (iv) strengthen the capabilities of law enforcement, the justice system and private sector to detect, deter and disrupt economic crime; (v) build greater resilience to economic crime by enhancing the management of economic crime risk in the private sector and the risk-based approach to supervision; (vi) improve systems for transparency of ownership of legal entities and legal arrangements; and (vii) deliver an ambitious international strategy to enhance security, prosperity and the UK’s global influence.

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FINTECH

EBA publishes report on regulatory perimeter, regulatory status and authorisation approaches in relation to FinTech activities

On 18 July, the EBA published the findings of its analysis on the regulatory framework applicable to FinTech firms when accessing the market. The report illustrates the developments of the regulatory perimeter across the EU, the regulatory status of FinTech firms, and the approaches followed by competent authorities when granting authorisation for banking and payment services. The national regulatory status of FinTech firms with innovative business models or delivery mechanisms shows various developments including the shift from non-regulated to regulated activities – notably payment initiation services and account information services now subject to PSD2.

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ESMA publishes report on the licensing of FinTech firms across Europe

On 12 July, ESMA published a report on the status of licencing regimes of FinTech firms across the EU. The report is based on two surveys conducted by ESMA since January 2018, which gathered evidence from NCAs on the licensing regimes of FinTech firms in their jurisdictions. The surveys confirmed that NCAs do not typically distinguish between FinTech and traditional business models in their authorisation and licensing activities since they authorise a financial activity and not a technology. ESMA’s key findings from the surveys are: (i) the primary areas where regulatory gaps and issues have been identified by NCAs and where FinTech firms do not fit neatly within the existing rules is related to crypto-assets, ICOs and DLT; (ii) the need for greater clarity around the governance and risk management processes associated with both cyber security and cloud outsourcing; (iii) the direct link and interdependencies between the innovation facilitators and authorising approaches for innovative FinTech business models; and (iv) that there is an ongoing discussion as to the need for an EU wide holistic crowdfunding regime, particularly for crowdfunding based on non-MiFID II instruments. The regulation of crowdfunding service providers is under scrutiny by the EP and the Council of the EU. ESMA concludes that, based on the evidence gathered, at present most innovative business models can operate within the existing EU rules. ESMA reinforces its conclusions made in the recent reports on crypto-assets/ICOs/DLT, cyber security and innovation facilitators, but does not make additional recommendations for changes in EU regulation at this stage, in line with the EBA and EIOPA conclusions in their respective reports.

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FUND REGULATION

IOSCO: Statement on IOSCO liquidity risk management recommendations for investment funds

On 18 July, IOSCO published a statement concerning liquidity risk management recommendations for investment funds. The Bank of England published a Financial Stability Report earlier this month, which discusses potential mismatches between the liquidity of fund assets and redemption terms offered by funds to their investors. These developments have led some to question whether recommendations previously issued by IOSCO on the liquidity management of open-ended investment funds (OEFs) adequately address risks in OEFs which could disadvantage investors or lead to broader financial system contagion. This recent IOSCO statement explains why these recommendations do, in fact, provide a comprehensive framework for regulators to deal with liquidity risks in investment funds.

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ESMA consults on performance fee guidelines for retail funds, seeking greater harmonisation

On 16 July, ESMA published a public consultation on draft guidelines on performance fees under the UCITS Directive. ESMA’s draft guidelines propose common criteria to promote supervisory convergence in the following areas: (i) general principles on performance fee calculation methods; (ii) consistency between the performance fee model and the fund’s investment objectives, strategy and policy; (iii) frequency for the performance fee crystallisation and payment; (iv) the circumstances where a performance fee should be payable; and (v) disclosure of the performance fee model. The deadline for responding to the consultation is 31 October.

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Regulation and Directive on cross-border distribution of collective investment funds published in OJ

On 12 July, the Regulation and Directive on cross-border distribution of collective investment funds were published in the OJ. The Regulation and Directive aim to: (i) eliminate regulatory barriers to the cross-border distribution of funds; (ii) improve transparency by aligning national marketing requirements and regulatory fees; (iii) introduce consistency in the way regulatory fees are determined; (iv) harmonise the process and requirements for the verification of marketing material by Member State national competent authorities; (v) allow managers to ‘test the appetite’ of potential investors for new investment strategies; and (vi) enable ESMA to better monitor investment funds. The Directive and Regulation will enter into force on 1 August 2019 (that is 20 days after its publication in the OJ). The Regulation will apply from 1 August 2019, with the exception of Articles 4(1) to (5), Articles 5(1) and (2), Article 15 and Article 16, which will apply from 2 August 2021.

Directive (EU) 2019/1160

Regulation (EU) 2019/1156

INSURANCE

Final draft ITS amending Solvency II reporting and disclosure requirements

On 16 July, EIOPA published: (i) the draft amendment to Commission Implementing Regulation (EU) 2015/2450 of 2 December 2015 laying down implementing technical standards with regard to the templates for the submission of information to the supervisory authorities; and (ii) draft amendment to Commission Implementing Regulation (EU) 2015/2452 of 2 December 2015 laying down implementing technical standards with regard to the procedures, formats and templates of the solvency and financial condition report. The final reporting taxonomy will be published on EIOPA's website, together with feedback received during EIOPA’s call for comments on the draft ITS.

Draft amendment to Commission Implementing Regulation (EU) 2015/2450

Draft amendment to Commission Implementing Regulation (EU) 2015/2452

FCA proposes new rules to help consumers with pre-existing medical conditions access suitable travel insurance

On 15 July, the FCA published a consultation paper on helping consumers with pre-existing medical conditions (PEMCs) have better access to travel insurance. The consultation is seeking views on introducing a new ‘signposting’ rule, to provide consumers with details of a directory of travel insurance firms that have the appetite and capability to cover consumers with more serious PEMCs. The deadline for responding to the consultation is 15 September.

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Remuneration requirements - PRA findings and expectations

On 12 July, the PRA published a letter to the Chair of the Remuneration Committee, providing clarification on the PRA’s expectations of firms and Remuneration Committee (‘RemCo’) Chairs in their implementation of the Solvency II remuneration requirements. The letter addresses: (i) material risk takers; (ii) variable remuneration; (iii) ex-post adjustment; and (iv) the role of the RemCo. The PRA will continue to focus on remuneration in its ongoing prudential supervision of firms. It will seek to address any inconsistencies in the interpretation of the Solvency II requirements, and share any findings that may help to improve firms’ understanding.

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Consultation Paper by EIOPA regarding Solvency II

On 12 July, EIOPA published its consultation paper (dated 9 July) on the harmonisation of national insurance guarantee schemes across the Member States of the EU. The deadline for responding to the consultation is 18 October.

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MARKETS AND MARKETS INFRASTRUCTURE

ESMA provides updated Q&As, XML schema and validation rules for securitisation reporting

On 18 July, ESMA published several additional resources to assist market participants in the implementation of ESMA’s draft technical standards on disclosure requirements for the Securitisation Regulation (SR). First, ESMA updated its SR Q&As clarifying different aspects of the draft disclosure technical standards, including how some specific fields in the templates should be completed. ESMA will continue to update this Q&A on the SR in the coming months, where necessary. Second, in line with its implementation statement published on 13 November 2018, ESMA published a set of reporting instructions and XML schema for the templates set out in ESMA’s draft technical standards on disclosure requirements. As set out in Article 4 of ESMA’s draft disclosure implementing technical standard, reporting of data for all securitisations must be done using XML. ESMA considers that this will ensure a level playing field and avoid issues of compatibility across data collection mechanisms. In addition, to accompany the XML schema, ESMA has also published a set of validation rules, which prohibit the submission of certain combinations of information that are logically incoherent. These published resources are subject to change should the actual delegated acts adopted by the European Commission contain changes that need to be reflected in the present documents. Furthermore, ESMA reserves the right to further adjust or update the Q&As, XML schema and validation rules at any time.

Q&As on the SR

Reporting instructions and XML schema for the templates

ESMA’s technical advice to the EC on sustainability considerations in the credit rating market and ESMA’s Guidelines on disclosure requirements applicable to credit ratings

On 18 July, ESMA published its technical advice to the EC on sustainability considerations in the credit rating market and separately a set of final guidelines on disclosure requirements applicable to credit ratings.

ESMA, in its technical advice, has assessed the level of consideration of ESG factors in both specific credit rating actions, and the credit rating market in general. It found that, while credit rating agencies (CRAs) are considering ESG factors in their ratings, the extent of their consideration can vary significantly across asset classes, according to each CRA’s methodology.

ESMA also published guidelines on disclosure requirements for credit ratings. These are intended to improve the overall quality and consistency of CRAs’ press releases related to their rating activity. The guidelines: (i) provide detailed guidance as to what CRAs should disclose when they issue a credit rating. This will ensure a better level of consistency in terms of the critical information included in CRAs’ press releases; and (ii) require greater transparency around whether ESG factors were a key driver of a change in the credit rating action.

Technical advice

Final guidelines

ESMA reports on NCAs’ use of sanctions under MiFID II

On 17 July, ESMA published its first report concerning sanctions and measures imposed under MiFID II by NCAs. NCAs are required under MiFID II to provide ESMA with aggregated information on all sanctions and measures imposed annually. As MiFID II only entered into force on 3 January 2018, and later in some jurisdictions, data on sanctions and measures taken in 2018 is limited. For this reason, ESMA found that the data on sanctions and measures imposed under MiFID II in 2018 does not allow for the observation of clear trends in the imposition of sanctions and measures. ESMA will continue to publish an annual report with the information on sanctions and measures imposed including criminal sanctions.

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ESMA’s Call for Evidence on impact of the inducements and costs and charges disclosure requirements under MiFID II

On 17 July, ESMA published a call for evidence on the impact of the disclosure requirements relating to inducements and costs and charges under MiFID II. The deadline for responding is 6 September.

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EMMI publishes the EURIBOR benchmark statement

On 17 July, the European Money Markets Institute (EMMI) published the Benchmark Statement for the administration of EURIBOR. The statement provides information on EURIBOR covering the following areas: (i) potential limitations of the benchmark; (ii) input data and methodology; (iii) exercise of judgement or discretion by the administrator or contributors; (iv) cessation and change and of the methodology; and (v) specific disclosures for interest rate and critical benchmark.

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EBA publishes updated ITS package for 2020 benchmarking exercise

On 16 July, the EBA published an update to its ITS on benchmarking of internal approaches. The ITS include all benchmarking portfolios that will be used for the 2020 benchmarking exercise. The update includes changes and clarifications, which reflect the comments received during the consultation launched on 18 December 2018. In particular, a number of changes reduce the reporting requirements, thus ensuring a more proportionate reporting burden. For the market risk benchmarking, the instruments have been updated and clarified but the overall composition of the portfolio has not been changed with respect to 2019. For the credit risk portfolios, the revision of the benchmarking portfolios simplifies the exercise given a reduction in the number of portfolios to be reported and a closer alignment to the Common Reporting (COREP) structure.

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ESMA consults on MiFID II compliance function requirements

On 16 July, ESMA published a consultation paper on draft guidelines on certain aspects of the compliance function requirements under MiFID II. ESMA’s proposals for guidelines in this area are aimed at helping firms to increase the effectiveness of the compliance function, enhance clarity and to foster convergence on the expanded the role of the compliance function under MiFID II. The deadline for responding to the consultation paper is 15 October.

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ESMA updates EMIR Q&As

On 15 July, ESMA published an update of its Q&A on practical questions regarding EMIR. The changes refer to: (i) removal of references to the frontloading requirement, as frontloading is no longer a requirement under EMIR Refit; (ii) removal of references relating to backloading, following the elimination of the backloading requirement; (iii) identification and reporting obligations for funds, and block trades and allocations; and (iv) clarification on the applicability of reporting to intra-group transactions.

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HMT letters regarding EC crowdfunding service provider proposals

On 12 July, HMT published a letter from John Glen, Economic Secretary to the Treasury, to Sir William Cash, House of Commons European Scrutiny Committee Chair, and a letter to Lord Boswell of Aynho, House of Lords EU Committee Chair. The letters provide an update on the progress of: (i) the proposal for a Regulation of the EP and of the Council of the EU on European Crowdfunding Service Providers for Business; and (ii) the proposal for a Directive of the EP and of the Council amending MiFID II.

Letter to Sir William Cash

Letter to Lord Boswell of Aynho

ESMA launches consultation on cost of market data and consolidated tape

On 12 July, ESMA published a consultation paper (CP) on the development in prices for pre- and post-trade data and on the post-trade consolidated tape (CT) for equity instruments. The CP assesses the development of prices for market data and the application of the main MiFID II/MiFIR provisions aimed at reducing the cost of market data. The deadline for responding is 6 September.

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ESMA warns CFDs providers on application of product intervention measures

On 12 July, ESMA published a statement on the application of product intervention measures under Article 40 and 42 of MiFIR by CFD providers. ESMA still has serious concerns about firms’ marketing, distribution or sale of CFDs to retail clients and considers it necessary to remind CFD providers about some of the requirements connected with the offering of CFDs. ESMA has identified undesirable practices related to: (i) professional clients on request; and (ii) marketing, distribution or sale by third-country CFD-Providers. ESMA and NCAs will continue to monitor compliance of CFD providers with the product intervention decisions.

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ESMA addresses derivatives trading obligation concerns following entry into force of EMIR Refit

On 12 July, ESMA published a public statement addressing the misalignment between the scope of counterparties subject to the EMIR clearing obligation and those subject to the MiFIR derivatives trading obligation (DTO). ESMA’s statement addresses two areas: (i) clearing and trading obligations for small financial counterparties and non-financial counterparties; and (ii) date of application of the trading obligation for financial counterparties which are in Category 3 and subject to the clearing obligation.

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ESMA updates its Q&As on MiFID II and MiFIR market structure and transparency topics

On 12 July, updated its Q&As regarding market structures and transparency issues under MiFID II and MiFIR. The new Q&As provide clarification on the following topics: (i) the use of pre-arranged transactions for non-equity instruments (amendment to an existing Q&A); (ii) the hedging exemption of Article 8 of MiFIR; (iii) the treatment of constant maturity swaps; and (iv) the application of the tick size regime to periodic auction systems. ESMA will continue to develop these Q&As in the coming months and will review and update them where required.

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PRUDENTIAL REGULATION

Please refer to the Other Developments section for an update regarding the MoU between the FCA and BoE.

Larger exposures: reciprocation of French measure

On 16 July, the PRA published a consultation paper (CP) which sets out its proposal to apply a tighter limit for large exposures to certain French non-financial corporations, to reciprocate the same measure imposed by France. The proposal would be effected through amendments to the Large Exposures Part of the PRA Rulebook (see Appendix 1). The proposed measure applies on a consolidated basis to firms identified by the PRA as global systemically important institutions and other systemically important institutions, under CRD as implemented in the Capital Requirements (Capital Buffers and Macro-prudential measures) Regulations 2014. The deadline for responding to the consultation is 6 September.

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EBA amends ITS on supervisory reporting with regard to financial information (FINREP)

On 16 July, the EBA published amendments to the ITS on supervisory reporting with regard to FINREP. The amendments concern the reporting requirements on non-performing exposures (NPE) and forbearance to allow monitoring of reporting institutions' NPE strategies, the reporting requirements on profit and loss items and the implementation of the new International Financial Reporting Standard on leases (IFRS 16). These final draft ITS amending the European Commission's Implementing Regulation (EU) No 680/2014 on supervisory reporting with regard to FINREP aim to improve the reporting requirements on NPE and forbearance in order to strengthen supervisors' ability to assess and monitor these exposures. To ensure proportionality, only institutions having a NPL ratio equal to or greater than 5% are required to report more granular information. The first reporting reference date will be 30 June 2020.

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EBA reports on the monitoring of the LCR implementation in the EU

On 12 July, the EBA published its first Report on the monitoring of liquidity coverage ratio (LCR) implementation in the EU. In the Report, the EBA highlighted areas in which further guidance is deemed useful for banks and supervisors in order to foster a common understanding and harmonisation of the application of the liquidity standard, while at the same time reducing some issues on the level playing field. In particular, the Report provides guidance on operational deposits and retail deposits excluded from outflows as well as on notifications on additional liquidity outflows. The EBA intends to regularly monitor the implementation of the LCR for EU banks and update this report on an ongoing basis to set out its observations and additional guidance, where necessary.

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OTHER DEVELOPMENTS

MoU between the FCA and BoE

On 18 July, the FCA and BoE published an updated MoU (when exercising its prudential regulation functions through the Prudential Regulation Authority). The MoU, which was first agreed in 2013, sets out the high-level framework the Prudential Regulation Authority and the FCA use to co-ordinate and co-operate in carrying out their respective responsibilities. It has been updated to reflect the expansion of the regulators’ remit and organisational changes since the MoU was first signed. As part of this update, the title of the MoU has been changed to reflect the PRA becoming fully integrated into the Bank of England, following its de-subsidisation in March 2017.

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Reviewing how the financial services regulators consider complaints

On 18 July, the Office of the Complaints Commissioner published its annual report for 2018/19. The themes which are explored include: (i) consumer protection – problems with the accuracy and accessibility of the financial services register; (ii) consumer protection – concerns about the speed and adequacy of response to information received; (iii) communication – adequacy of information provided to regulated firms and to individual complainants; and (iv) delays – significant delays in the handling of many complaints. In its response to the report, the FCA published a paper recognising problems with its Financial Services Register and planning work to ensure the Register is improved.

Annual report

FCA response

Joint statement from the PSR, FCA, PRA and CMA about regulatory coordination

On 18 July, the Payment Systems Regulator (PSR) released a joint statement with the FCA, PRA and CMA regarding regulatory coordination. As announced by the Chancellor at Mansion House, the Chief Executives of the Prudential Regulation Authority, Financial Conduct Authority, Payment Systems Regulator and Competition and Markets Authority met together with the Chancellor to discuss a plan to improve regulatory coordination. All the authorities committed to taking forward work to improve regulatory coordination alongside the forthcoming call for evidence from HMT.

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FCA’s Feedback Statement on Fair Pricing in Financial Services

On 18 July, the FCA published a Feedback Statement (FS) following the publication of a Discussion Paper (DP) on Fair Pricing in Financial Services in October 2018. In the FS, the FCA: (i) summarises the main themes from the 51 formal submissions received in response to the DP and, where appropriate, provides responses; (ii) provides further clarification on how the FCA will apply its framework in practice; and (iii) outlines how the FCA will approach the next stage of work, which will focus on operationalising its approach to fair pricing in retail markets. The first application of the framework will be in the General Insurance Pricing Practices Market Study and the FCA will be publishing the findings from that later this year.

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New platform to replace Gabriel and improve the way the FCA collects data from firms

On 16 July, the FCA published a press release announcing its plan to move to a new platform for data collection systems. This new data collection platform supports the FCA’s Digital Regulatory Reporting work which is exploring how technology could make it easier for firms to meet their regulatory reporting requirements and improve the quality of information they provide. The FCA plans on publishing the feedback to the survey later this year.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

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