European Union

European Central Bank

ECB seeks to increase transparency of euro area pension fund sector. The ECB announced that it has published a draft regulation on statistical reporting requirements for pension funds. Additionally, the European Insurance and Occupational Pensions Authority (EIOPA) launched a public consultation about the regular reporting of occupational pensions information from national supervisory authorities to EIOPA. The outcome of the ECB consultation, which runs until September 29, 2017, will be taken into account in the finalization of the regulation. As part of this consultation, the ECB will hold a public hearing by teleconference on September 21, 2017. (7/26/2017)

ECB details approach to implement Foreign Exchange Global Code of Conduct. The ECB announced that it is inviting foreign exchange trading counterparties to publicly commit to the principles set out in the FX Global Code by endorsing the Statement of Commitment annexed to that code of conduct by the end of May 2018. Counterparties are also encouraged to reaffirm their commitment to those principles after any substantial future update of the FX Global Code. (7/26/2017) 

ESMA

ESMA updates its MiFID II guidelines on transaction reporting, order record keeping and clock synchronization. ESMA announced that it has issued an update of its Guidelines on transaction reporting, order record keeping and clock synchronization under the Markets in Financial Instruments Directive (MiFID II). The updates correct some unintended factual mistakes, typos and inconsistencies in the technical part of the Guidelines. (8/8/2017)

European Banking Authority EBA publishes Discussion Paper on its approach to FinTech. The EBA announced its publication of a Discussion Paper on its approach to financial technology. In the Discussion Paper, the EBA sets out the results of the first EU-wide FinTech mapping exercise and its proposals for future work on FinTech. Comments on the consultation must be submitted by November 6, 2017. (8/4/2017)

EBA consults on fraud reporting requirements under PSD2. The EBA announced the launch of a public consultation on its draft Guidelines on reporting requirements on statistical data on fraud under the revised Payment Services Directive (PSD2). The Guidelines, which are addressed to payment service providers and competent authorities, are aimed at contributing to the objective of PSD2 to increase the security of retail payments in the EU. Comments on the consultation must be submitted by November 3, 2017. (8/2/2017)

Banks' funding plans paint optimistic outlook for growth while NPLs remain a drag on EU banks’ new lending. The EBA announced that it has published reports on EU banks’ funding plans and asset encumbrance. The reports aim to provide important information for EU supervisors to assess the sustainability of banks’ main sources of funding. The results of the assessment show that banks plan to increase their lending and to expand deposits as well as market based funding. (7/31/2017)

Final Guidelines on major incident reporting under PSD2. The EBA announcedthat it has published the Final Guidelines on major incident reporting under the revised Payment Services Directive (PSD2). The Guidelines will apply starting on January 13, 2018. (7/27/2017)

United Kingdom 

FCA publishes findings of survey of industry views. The UK Financial Conduct Authority and the FCA Practitioner Panel released the findings of their 2017 survey of FCA-regulated firms, which gauges the assessment of the FCA’s performance as a regulator by the financial services sector. (8/3/2017) FCA press release.  FCA research on circuit breakers in UK equity markets. The FCA published the results of a study that examines consolidated order-book and trade data from the major UK equity trading venues and their associated dark pools to assess general trading activity and the behavior of different groups of market participants during events where a sudden, sharp decrease in the price of a security triggers a circuit breaker on the London Stock Exchange.  (8/3/2017) FCA research.  

FCA report on new technologies and AML compliance. The FCA issued the findings of its research on emerging technologies and anti-money laundering compliance, which includes the results of a survey of regulated firms and technology providers regarding how new and emerging technologies can aid AML compliance, the challenges firms face in introducing new technologies for AML compliance, and how the FCA could foster innovation in this area. (8/2/2017) FCA press release. 

FCA consults on revised guidance to implement FAMR recommendations. The FCA requested comments on a consultation paper that proposes to amend the FCA’s rules and guidance related to two recommendations made by the Financial Advice Market Review. The proposal would update the FCA’s rules and guidance on the scope of the regulated activity of “advising on investments” in the Regulated Activities Order and adopt new guidance to support firms offering services that help consumers making their own investment decisions without a personal recommendation. Comments are due on or before October 2, 2017. (8/1/2017) FCA press release. 

FCA examines aggregate market quality implications of dark trading. The FCA published an Occasional Paper that analyzes the impact of dark trading on aggregate market quality in the UK. The study found that, at current levels, dark trading does not appear to be harmful to market quality in the aggregate UK equity market, but dark trading may start to affect market quality negatively if it reaches a certain threshold. (8/1/2017) FCA press release. 

FCA proposes changes to rules on client money and unbreakable deposits. The FCA requested comments on a consultation paper that proposes to amend the Client Assets sourcebook on depositing client money in unbreakable deposits to permit a firm to deposit an appropriate proportion of client money in an unbreakable deposit of a maximum of 90 days; impose certain requirements on firms that deposits client money in an unbreakable deposit of 31 to 90 days; and require medium and large firms to report client money in an unbreakable deposit of 31 to 90 days in their client money and asset return. Comments are due on or before November 1, 2017. (8/1/2017) FCA press release.