Financial Regulation Weekly Bulletin - 17 May 2018

Major UK and European regulatory developments of interest to banks, insurers and reinsurers, asset managers and other market participants Selected Headlines General Variation terms under the Consumer Rights Act 2015 – FCA launches Guidance Consultation 18/2 1.1 Brexit Impact of the proposed post-Brexit implementation period – ECB publishes article 3.1 Banking and Finance Banking Union, Capital Markets Union and sustainable finance – speech by Valdis Dombrovskis, Vice President of the European Commission 4.1 Securities and Markets Amendments to EMIR – ECON adopts draft reports on proposals 12.1 Reforming the European System of Financial Supervision – ECB publishes Opinion on proposed Regulation and Directive 14.1 Asset Management Hard to value assets review – FCA publishes video summary of findings 18.1 Insurance EU-wide Insurance Stress Test 2018 – launched by EIOPA 21.1 Financial management and planning by insurers – PRA publishes Policy Statement PS10/18 22.1 Financial Crime 5MLD – adopted by the Council of the EU 24.1 Quick Links Financial Regulation / 17 May 2018 / Issue 962 2 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement General 1. Financial Conduct Authority 1.1 Variation terms under the Consumer Rights Act 2015 – FCA launches Guidance Consultation 18/2 – May 2018 – The FCA has launched a consultation (GC18/2) on its draft guidance concerning unfair contract terms. The proposed guidance outlines factors that financial services firms should consider under the Consumer Rights Act 2015 when drafting and reviewing variation terms in their consumer contracts. These include (but are not limited to) the following:  the validity of the reasons for using the variation term;  the transparency of the variation term;  notices of variation required to be given by the firm to the consumer; and  whether the contract gives the consumer the right to exit the contract if the consumer does not wish to accept the variation. The guidance would apply to all FCA authorised firms, electronic money issuers and payment service providers in relation to any of their consumer contracts containing variation terms. The consultation closes on 7 September 2018. The FCA will consider feedback to this consultation and intends to issue a response in December 2018. GC18/2 is here. The webpage is here. The press release is here. 1.2 Remuneration – FCA publishes updated information on rules – 16 May 2018 – The FCA has published updated information on its remuneration rules. This includes information on the main requirements; who they apply to; proportionality; and the rules related to sales incentives in Chapter 19F of the Senior Management Arrangements, Systems and Controls sourcebook (SYSC). The information is here. 2. New legislation 2.1 The Financial Guidance and Claims Act 2018 has been published after the Bill received Royal Assent on 10 May 2018. The Act:  creates a new financial guidance body;  creates a debt respite scheme, to be developed within three months of the establishment of the new financial guidance body;  provides for the funding of debt advice in Scotland, Wales and Northern Ireland; Financial Regulation / 17 May 2018 / Issue 962 3 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement  creates a power to make regulations prohibiting unsolicited direct marketing in relation to pensions and other consumer financial products and services; and  transfers the regulation of claims management services to the FCA. The Act is here. Hansard for the Royal Assent is here. The Bill’s webpage is here. Brexit 3. European Central Bank 3.1 Impact of the proposed post-Brexit implementation period – ECB publishes article – 16 May 2018 – The European Central Bank (ECB) has published an article on the potential impact of the proposed post-Brexit implementation period, which is expected to last until 31 December 2020. Among other things, the ECB states that:  banks should continue to prepare for all possible contingencies, including the possibility that there will be no implementation period, as the EU Withdrawal Agreement has not yet been ratified;  banks are responsible for securing the authorisations required for them to carry out their activities after 30 March 2019 (Brexit day);  banks must produce credible Brexit plans as soon as possible – they should use the implementation period to implement these plans and to adapt their operations to reflect the UK’s new ‘third-country’ status;  the ECB and national supervisors must have received authorisation applications from banks that plan to relocate activities to the euro area by the end of the second quarter of 2018;  the ECB intends to be flexible in order to allow banks to meet certain supervisory expectations and to build up their capabilities in the euro area post-Brexit. During this ‘build-up’ period (which will be discussed on a case-by-case basis), the ECB and national supervisors may allow more time for banks to meet supervisory expectations relating to their local risk management capabilities and governance structures, and to move to an adequate and balanced business organisation within the euro area;  the ECB and national supervisors will use business plans for euro area operations and their understanding of banks’ long-term target operating models to determine how much flexibility can be provided. This flexibility is “limited to those elements within the scope of supervisory expectations”; and  banks' arrangements for the post-Brexit framework should not endanger robust internal governance and sound and effective risk management, or mean that capabilities and controls are “running behind the business”. The article is here. Financial Regulation / 17 May 2018 / Issue 962 4 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement Banking and Finance 4. European Commission 4.1 Banking Union, Capital Markets Union and sustainable finance - speech by Valdis Dombrovskis, Vice President of the European Commission – 17 May 2018 – Vice President of the European Commission, Valdis Dombrovskis, delivered a speech in which he discussed the work that needs to be done in order to complete the Banking Union and the Capital Markets Union. He also stated that the European Commission will present four proposals in relation to sustainable finance next week. These proposals:  start the process of designing an EU-wide classification system for sustainable economic activities;  outline how investment managers should disclose how they incorporate sustainability into their procedures;  create new categories of benchmarks that give investors greater information on a portfolio's carbon footprint; and  require investment firms and insurance distributors to consider the sustainability preferences of each client when giving investment advice. The speech is here. 5. European Parliament 5.1 Sustainable finance – ECON publishes report – 18 May 2018 - The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has published its report (dated 4 May 2018) on sustainable finance. Among other things, it calls on the European Commission to establish a green taxonomy, by the end of 2019, which would disclose the full impact of investments on sustainability and allow for (i) a comparison of investment products and companies; and (ii) as part of this taxonomy, a ‘Green Finance Mark’, which would be awarded to investment, equity, and pension products that have achieved the highest standards of sustainability. ECON adopted this report on 24 April 2018. The European Parliament is scheduled to debate and vote on the report on 28 and 29 May 2018 respectively. The report is here. The procedure file is here. 6. HM Treasury 6.1 Goods Mortgages Bill – HM Treasury publishes response to consultation – May 2018 – HM Treasury has published its response to the consultation on the draft Goods Mortgages Bill, which was designed to replace the Bills of Sale Acts. The government has decided not to proceed with the Bill in the near future. It will continue to work with the FCA on its high-cost credit review and will then consider whether to take action on alternatives to high-cost credit in light of this review. The government’s response is here. Financial Regulation / 17 May 2018 / Issue 962 5 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement The consultation document is here. The draft Bill is here. The holding page is here. 7. Financial Conduct Authority 7.1 Consumer credit – FCA publishes new information sheets – 2 May 2018 - The FCA has published revised consumer credit information sheets on:  arrears;  default;  high-cost short-term loans;  high-cost short-term loans with regards to peer-to-peer lenders; and  arrears with regards to peer-to-peer lenders. The information sheets are effective from 27 July 2018. Lenders must include a copy of the relevant information sheet when notifying a consumer that they are in arrears or in default, in accordance with section 86A of the Consumer Credit Act 1974. Firms should continue to use the existing versions of the information sheets until 27 July 2018. The revised and existing information sheets can be found here. 8. Recent cases 8.1 Rasool Entertainment GmbH and Staatsanwaltschaft Stuttgart v Faiz Rasool, Case C-568/16, 22 March 2018 Multifunctional terminals enabling cash withdrawals in gaming arcades; Payment Services Directive 2007/64/EC The Court of Justice of the EU (CJEU) has handed down its judgment in response to a request for a preliminary ruling from Germany’s Nϋrtingen Local Court on the interpretation of articles 3(e), 3(o), and 4(3) of the Payment Services Directive (2007/64/EC) (PSD), read in conjunction with point 2 of the PSD Annex. These provisions categorise a business activity enabling cash withdrawals from a payment account and carrying out the operations required to operate a payment account as a ‘payment service’. As such, this would require authorisation under the German legislation implementing the PSD. The case related to a German gaming arcade operator, Rasool Entertainment GmbH (RE), which installed and loaded cash onto cash withdrawal terminals in its arcades. The network operator operated the link between the terminals and customers’ accounts and enabled cash withdrawals by way of a customer identification process (bank card and PIN number). Financial Regulation / 17 May 2018 / Issue 962 6 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement The CJEU concluded that, in these circumstances, it could not be held that RE was enabling cash withdrawals from, or carrying out the operations to operate, a payment account. Article 4(3) of the PSD, in conjunction with point 2 of its Annex, must be interpreted as meaning that a cash withdrawal service provided by a gaming arcade operator (whose activities were limited to the provision of, and loading of cash onto, the terminals and did not include the operation of customer accounts) is not a ‘payment service’ under the PSD. The judgment is here. Securities and Markets 9. Basel Committee on Banking Supervision and the International Organization of Securities Commissions 9.1 Short-term securitisations – BCBS and IOSCO publish documents on identification and capital treatment – 14 May 2018 - The Basel Committee on Banking Supervision (BCBS) has published a standard on the capital treatment for simple, transparent and comparable short-term securitisations. The standard provides additional guidance and requirements in relation to the application of preferential regulatory capital treatment for banks acting as investors in, or sponsors of, simple, transparent and comparable short-term securitisations. It supplements the BCBS’ criteria for identifying simple, transparent and comparable short-term securitisations (issued jointly with the International Organization of Securities Commissions (IOSCO)). Both documents were consulted on in July 2017 and incorporate feedback received during the consultation process. The BCBS standard on capital treatment is here and the holding page is here. The press release is here. The criteria for identification is here and the holding page is here. The press release is here. 10. International Swaps and Derivatives Association 10.1 Benchmark reforms – speech by ISDA Chief Executive, Scott O’Malia – 15 May 2018 – The International Swaps and Derivatives Association (ISDA) has published a speech by its Chief Executive, Scott O’Malia, in which he discusses the transition from interbank offered rates (IBORs) to risk-free rates (RFRs). Among other things, Mr O’Malia states that ISDA will:  publish its global benchmark transition report next month. The report will set out the results of its global survey of market participants on the move towards risk-free-rates (RFRs); and  release a market-wide consultation on the credit spread methodology and term fixing adjustments that should apply to fallback provisions within derivatives contracts. Such provisions would be triggered if a particular IBOR referred to in a contract was permanently discounted in the future. The consultation will outline several approaches to term RFR fixings and several methodologies for calculating a credit spread. The speech is here. Financial Regulation / 17 May 2018 / Issue 962 7 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement 11. Official Journal of the European Union 11.1 CSDR – Corrigenda to Delegated Regulations published in the Official Journal – 17 May 2018 – Corrigenda to Commission Delegated Regulation (EU) 2017/390 and Commission Delegated Regulation (EU) 2017/391, both supplementing the Central Securities Depository Regulation (EU/909/2014) (CSDR), have been published in the Official Journal of the EU. Both Corrigenda correct typographical errors. The Corrigendum to Commission Delegated Regulation (EU) 2017/390 is here. Commission Delegated Regulation (EU) 2017/390 is here. The Corrigendum to Commission Delegated Regulation (EU) 2017/391 is here. Commission Delegated Regulation (EU) 2017/391 is here. 12. European Parliament 12.1 Amendments to EMIR – ECON adopts draft reports on proposals – 16 May 2018 – The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has adopted:  its January 2018 draft report on the proposed Regulation amending the European Market Infrastructure Regulation (648/2012/EU) (EMIR) following its refit review (COM(2017) 0208) (EMIR 2); and  its January 2018 draft report on the proposed Regulation amending the ESMA Regulation (1095/2010/EU) and EMIR regarding the procedures and authorities involved for the authorisation of central counterparties (CCPs) and requirements for the recognition of third country CCPs (COM(2017) 0331)(known as EMIR 2.2). The EMIR 2 draft report will now be considered by the European Parliament as a whole in one of its upcoming plenary sessions. Three way negotiations between the European Parliament, the EU Council and the European Commission on EMIR 2.2 will follow once the member states agree their common stance. The EMIR 2 draft report is here. The procedure file for the EMIR 2 is here. The press release for the EMIR 2 report is here. The EMIR 2.2 draft report is here. The procedure file for EMIR 2.2 is here. The press release for the EMIR 2.2 report is here. 13. European Securities and Markets Authority 13.1 MiFID II/MiFIR – ESMA updates FAQs on transitional transparency calculations – 15 May 2018 – The European Securities and Markets Authority (ESMA) has updated its FAQs on the transitional Financial Regulation / 17 May 2018 / Issue 962 8 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement transparency calculations under the Markets in Financial Instruments Directive (2014/65/EU) (MiFID II) and the Markets in Financial Instruments Regulation (600/2014/EU) (MiFIR). The updated FAQs are here. 14. European Central Bank 14.1 Reforming the European System of Financial Supervision – ECB publishes Opinion on proposed Regulation and Directive – 16 May 2018 – The European Central Bank (ECB) has published its Opinion (dated 11 May 2018) on:  a proposal for a Regulation (COM(2017) 536 final) amending: o the regulations establishing the European Supervisory Authorities (ESAs) - the EBA Regulation (1093/2010/EU), the ESMA Regulation (1095/2010/EU) and the EIOPA Regulation (1094/2010/EU); o the Regulation on European venture capital funds (345/2013/EU); o the Regulation on European social entrepreneurship funds (346/2013/EU); o the Markets in Financial Instruments Regulation (600/2014/EU) (MiFIR); o the Regulation on European long-term investment funds (2015/760/EU); o the Benchmarks Regulation (2016/1011/EU); and o the Prospectus Regulation (2017/1129/EU); and  a proposal for a Directive (COM(2017) 537) amending MiFID II and Solvency II (2009/138/EC). These proposals form part of a package of measures to strengthen the European system of financial supervision, comprising the European Systemic Risk Board (ESRB) and the ESAs. Among other things, the ECB expresses its support for:  the aim of the proposed Regulation, which is to contribute to the further development of the Capital Markets Union (CMU);  the single supervision of specific market segments. Single supervision could also be warranted for data service reporting providers, as well as administrators of critical benchmarks, under a fully-fledged CMU; and  changes to the governance structure of the ESMA. One representative of the ECB should be included as a permanent voting member of ESMA’s Board of Supervisors. The ECB states that this Opinion should be read in conjunction with its March 2018 Opinion on the proposed Regulation (COM(2017) 538) amending the ESRB Regulation (1092/2010/EU) and its April 2018 Opinion which focuses on the proposed Regulation (COM(2017) 536 final) amending the EBA Regulation (1093/2010/EU). The Opinion is here. Financial Regulation / 17 May 2018 / Issue 962 9 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement The procedure file for the proposed Regulation is here. The procedure file for the proposed Directive is here. The March 2018 Opinion is here. The April 2018 Opinion is here. 15. Financial Conduct Authority 15.1 FCA Policy Statement PS18/10 – retiring FCA guidance FG12/15 and FG14/1 – May 2018 – The FCA has published Policy Statement PS18/10 in which it confirms the retirement of:  FG12/15 titled ‘Retail Distribution Review: independent and restricted advice’ (June 2012) - non-Handbook Guidance on personal recommendations; and  FG14/1 titled ‘Supervising retail investment advice: inducements and conflicts of interest’ (January 2014) - non-Handbook Guidance on how payments made by providers to advisory firms under service or distribution agreements can breach Principle 8 (Conflicts of interest) and the COBS inducements rules. The FCA states that changes to the rules on describing advice and inducement and adviser charging means that the above guidance has been largely superseded and is no longer current or required. In PS18/10, the FCA also summarises feedback it received to the consultation on retiring FG12/15 and FG14/1. The consultation was set out in PS17/25 titled ‘Financial Advice Market Review Implementation Part II and Consultation on Retiring FG 12/15 and FG 14/1’. PS18/10 is here. The webpage is here. PS17/25 is here. 16. ICE Benchmark Administration 16.1 ICE LIBOR, ICE swap rate and LBMA gold and silver prices – IBA publishes benchmark statements – 14 May 2018 – In order to comply with article 27 of the Benchmarks Regulation ((EU) 2016/1011), the ICE Benchmark Administration (IBA) has published benchmark statements for the ICE London Interbank Offered Rate (LIBOR), the ICE swap rate and the London Bullion Market Association (LBMA) gold and silver prices. The ICE LIBOR benchmark statement is here. The ICE swap rate benchmark statement is here. The LBMA gold and silver prices benchmark statement is here. IBA’s webpage is here. The Benchmarks Regulation is here. Financial Regulation / 17 May 2018 / Issue 962 10 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement Asset Management 17. Official Journal of the European Union 17.1 Money Market Funds Regulation – ITS on managers’ reporting template published in the Official Journal – 15 May 2018 – Commission Implementing Regulation (EU) 2018/708 of 17 April 2018 laying down implementing technical standards regarding the template to be used by managers of money market funds when reporting to competent authorities, pursuant to article 37 of the Money Market Funds Regulation ((EU) 2017/1131), has been published in the Official Journal of the EU. The Regulation enters into force on 4 June 2018. It applies from 21 July 2018. The Regulation is here. 18. Financial Conduct Authority 18.1 Hard to value assets review – FCA publishes video summary of findings – 11 May 2018 – The FCA has published a video summarising its multi-firm review of how asset management firms value socalled ‘hard to value’ assets. The review was based on existing rules and guidance and assessed asset managers of different sizes with various investment strategies. The head of asset management at the FCA, Nick Miller, discusses: the scope of the review; what the FCA found; examples of good practice; and areas for improvement. Among other things, Mr Miller states that the FCA wants to see genuine valuation expertise, both among portfolio managers and those who independently challenge them from within the firm. The video is here. The transcript of the video is here. Insurance 19. Council of the European Union 19.1 Pan-European Personal Pension Product – presidency compromise proposal published – 15 May 2018 - The Presidency of the Council of the EU has published its third presidency compromise proposal on the proposed Regulation on a pan-European Personal Pension Product (PEPP). The first two proposals were published on 6 December 2017 and 23 April 2018 respectively and reported in this Bulletin on 26 April 2018. The presidency compromise proposal is here. The procedure file is here. 20. European Commission 20.1 The impact of Solvency II on long-term insurance and reinsurance activities – European Commission asks EIOPA for information – 17 May 2018 - The European Commission has published its request (dated 27 April 2018) to EIOPA seeking information concerning the impact of Solvency II (2009/138/EC) on:  the liquidity of insurance undertakings' liabilities; Financial Regulation / 17 May 2018 / Issue 962 11 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement  the asset management of insurers;  long-term guarantee measures; and  the market valuation of insurance liabilities. The Commission has asked EIOPA to deliver the information by 16 December 2019, in time for its review of Solvency II which will take place by the end of 2020. The request for information is here. A related letter from the Director-General for Financial Stability, Financial Services and the Capital Markets Union, Olivier Guersent, to the Chair of EIOPA, Gabriel Bernadino, is here. 21. European Insurance and Occupational Pensions Authority 21.1 EU-wide Insurance Stress Test 2018 – launched by EIOPA – 14 May 2018 – The European Insurance and Occupational Pensions Authority (EIOPA) has launched its fourth EU-wide Insurance Stress Test. EIOPA states that the test aims to:  assess the vulnerabilities of the European insurance sector;  raise awareness of the potential threats to financial stability posed by the insurance sector in Europe; and  increase transparency by requesting the voluntary disclosure of individual results. The deadline for the submission of results to national competent authorities is 16 August 2018. EIOPA expects to publish the results in January 2019. Technical specifications, templates, FAQs and a timeline for the stress test can be found here. The list of participating groups is here. The press release is here. 22. Prudential Regulation Authority 22.1 Financial management and planning by insurers – PRA publishes Policy Statement PS10/18 - May 2018 - The PRA has published Policy Statement PS10/18 titled ‘Financial management and planning by insurers’. PS10/18 contains feedback to Consultation Paper CP23/17 of the same title, which proposed a Supervisory Statement (SS14/8) and a revised Statement in response to the feedback received. SS4/18 sets out the PRA’s expectations in relation to:  the development and maintenance of a risk appetite statement by insurers;  how insurers apply their risk appetite when developing and monitoring their medium term business and financial plans; and Financial Regulation / 17 May 2018 / Issue 962 12 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement  the assessment of the suitability and sustainability of capital distribution plans in the context of this risk appetite. The PRA indicates that SS14/18 should be read in conjunction with:  the Conditions Governing Business and Investments Parts of the PRA Rulebook;  articles 258-267 of Commission Delegated Regulation (EU) 2015/35;  the PRA’s approach document on insurance supervision;  PRA Supervisory Statement SS41/15 titled ‘Solvency II: applying EIOPA Set 2, System of Governance and ORSA Guidelines’;  PRA Supervisory Statement SS5/16 titled ‘Corporate Governance: Board responsibilities’;  PRA Supervisory Statement SS19/16 titled ‘Solvency II: ORSA’  PRA Supervisory Statement SS4/17 titled ‘Cyber insurance underwriting risk’; and  PRA Supervisory Statement SS5/17 titled ‘Dealing with a market turning event in the general insurance sector’. SS4/18 became effective on 17 May 2018. PS10/18 is here. The holding page is here. SS4/18 is here. The holding page, with links to all the related documents, is here. 23. Financial Conduct Authority 23.1 The FCA’s Business Plan and priorities – speech by FCA Chief Executive, Andrew Bailey – 16 May 2018 - Andrew Bailey, Chief Executive of the FCA, delivered a speech at the British Insurance Brokers' Association Annual Conference. Among other things, Mr Bailey covers the following topics:  Brexit – Mr Bailey restated his support for the proposed post-Brexit implementation period and the temporary permissions regime to which the government has committed should the EU Withdrawal Agreement not be ratified. He stated that he hopes that the UK and the EU commit to open financial markets after Brexit.  The FCA’s Business Plan 2018/19 – Mr Bailey summarised the FCA’s seven cross-sector priority areas. These are: firms’ culture and governance; high-cost credit; tackling financial crime; data security, resilience and outsourcing; Fintech and Big Data; the treatment of existing customers; and long-term savings pensions and intergenerational differences. Financial Regulation / 17 May 2018 / Issue 962 13 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement  Specific Business Plan priorities for general insurance – Mr Bailey mentioned the implementation of the Insurance Distribution Directive ((EU) 2016/97), which comes into force on 1 October 2018). He also stated that the FCA will publish: o an interim report on its wholesale insurance broker market study by the end of the year; o key findings from its work to understand pricing practices in retail general insurance in the third quarter of this year; and o a feedback statement on its call for input on the challenges firms face in providing travel insurance for consumers who have pre-existing medical conditions this summer.  Big Data – Mr Bailey identified the advantages and disadvantages of Big Data for the insurance industry. He also outlined some of the key aspects of the General Data Protection Regulation (EU) 2016/679 (GDPR), which are of particular importance to regulated firms. The GDPR comes into force on 25 May 2018. The speech is here. The FCA’s Business Plan 2018/19 is here. The wholesale insurance broker market study webpage is here. The call for input on access to insurance webpage is here. Financial Crime 24. Council of the European Union 24.1 5MLD – adopted by the Council of the EU – 14 May 2018 – The Council of the EU has adopted the proposed Fifth Money Laundering Directive (2016/0208(COD)) (5MLD). 5MLD will amend the Fourth Money Laundering Directive (EU) 2015/849 to include provisions on:  broadening public access to information on beneficial ownership of firms which operate in the EU;  addressing risks linked to (i) virtual currencies by increased customer verification and (ii) pre-paid cards by lower identification thresholds; and  improving checks on transactions in high-risk third (non-EEA) countries. 5MLD will enter into force 20 days after its publication in the Official Journal of the European Union. Member states will then have 18 months to transpose the new rules into national law. The adopted text is here. The procedure file is here. The press release is here. Financial Regulation / 17 May 2018 / Issue 962 14 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement Enforcement 25. Prudential Regulation Authority and Financial Conduct Authority 25.1 Investigations into Barclays Bank plc and Jes Staley - FCA and PRA publish final notices – 11 May 2018 – As announced by the FCA, PRA and Barclays Bank plc, the regulators have published final notices following their investigations into Jes Staley, Group CEO of Barclays Bank plc, and Barclays Bank plc. The investigations related to Mr Staley’s attempt to identify the author of an anonymised letter, who was considered a whistleblower. The final notices confirm that: (i) the FCA and PRA have imposed financial penalties on Mr Staley of £321,000 and £321,230 respectively (£642,430 in total) for a breach of Individual Conduct Rule 2 (requirement to act with due skill, care and diligence). There were no findings by the FCA or PRA that Mr Staley acted with a lack of integrity or that he lacks fitness and propriety to continue performing his role as Group CEO; (ii) Barclays Bank plc has agreed to FCA and PRA reporting requirements in relation to certain aspects of its whistleblowing programmes. The FCA’s final notice to Mr Staley is here and the PRA’s final notice is here. The FCA’s reporting requirements for Barclays Bank plc are here and for Barclays Bank UK plc are here. The PRA’s reporting requirements for Barclays Bank plc are here, and for Barclays Bank UK plc are here. The FCA’s press release is here and the PRA’s press release is here. The Barclays announcement is here. Barclays’ announcement dated 20 April 2018 is here. 26. Financial Conduct Authority 26.1 Insider dealing – FCA confiscation orders – 11 May 2018 – The FCA has announced that (i) a £1,074,236 confiscation order has been made against Martyn Dodgson, a former senior investment banker, and (ii) a £624,521 confiscation order has been made against Andrew Hind, a chartered accountant. Mr Dodgson and Mr Hind were convicted of conspiring to insider deal in May 2016. They were sentenced to four and a half years and three and a half years imprisonment respectively. The FCA’s press release is here. 27. Advertising Standards Authority 27.1 Television advertisement for a credit card – ASA considers CONC 3.5.7 and upholds complaint – 15 May 2018 – The Advertising Standards Authority (ASA) has upheld a complaint made against Intelligent Lending Ltd (trading as Ocean Finance) in relation to a television advertisement for a credit card. The advertisement failed to include a representative annual percentage rate (RAPR), Financial Regulation / 17 May 2018 / Issue 962 15 Quick Links Selected Headlines General Brexit Banking and Finance Securities and Markets Asset Management Insurance Financial Crime Enforcement thereby breaching rule 3.5.7(1) of the FCA Consumer Credit Sourcebook (CONC). Rule 14.11 of the UK Code of Broadcast Advertising (BCAP Code) states that advertising of unsecured consumer credit must comply with the rules set out in Chapter 3 of CONC. The advertisement claimed that: a) Ocean Finance’s credit card had a credit limit of £1,500; b) Ocean Finance would text holders of the credit card so that they could keep control of their spending; and c) consumers could see if they would be approved before applying. The ASA considered that the credit limit and text facility were presented as both comparative indications and incentives to apply for credit. It found that the facility to check eligibility before applying was presented as a comparative indication. Therefore, the advertisement should have included an RAPR. As the three claims were the primary focus of the advertisement, Ocean Finance also breached CONC 3.5.7(2) by failing to ensure that the RAPR was given no less prominence than the information which should have triggered its inclusion. The ASA also stated that the advertisement must not be broadcast again in its current form.