FCA regulation round-up: September 2017

The FCA has published its Regulation round-up for September 2017. Among other things, the round-up details the  outcomes of its latest annual review of the anti-money-laundering (AML) and sanctions systems of 100 firms randomly selected from those sectors that present a lower inherent money laundering risk.

FCA, September 2017


ECB consults on draft guides to credit institution licensing

The European Central Bank (ECB) has published the following two consultations on draft guides to credit institution licensing:

  • A draft guide for assessing general credit institution licensing which sets out the general process and the requirements for the assessment of credit institution licensing applications.
  • A draft guide for assessing FinTech credit institutions licensing - directed at entities with a FinTech business model that are considering applying for a banking licence.

The guides apply to all licence applications to become a credit institution within the meaning of the Capital Requirements Regulation (CRR). They aim to make the application process more transparent and help applicants in their preparations. Consultation closes: 2 November 2017

European Central Bank, 21 September 2017



European Commission adopts Delegated Regulations supplementing IDD on distribution of insurance-based investment products

The European Commission has adopted two Delegated Regulations supplementing the Insurance Distribution Directive (IDD). The regulations are being adopted with a view to protect consumers when they buy insurance products in the EU:

  • Delegated Regulation (C(2017) 6229 final) supplements the IDD with regard to information requirements and conduct of business rules applicable to the distribution of insurance-based investment products.
  • Delegated Regulation (C(2017) 6218 final) supplements the IDD with regard to product oversight and governance requirements for insurance undertakings and insurance distributors.

European Commission, 21 September 2017


FCA and Hong Kong Insurance Authority enter into FinTech co-operation agreement

The FCA has signed a co-operation agreement with the Hong Kong Insurance Authority to provide a framework for co-operation on information sharing on FinTech innovation and referrals of innovative firms seeking to enter the other's market.

FCA, 12 September 2017



Joint Committee of ESAs report on risks and vulnerabilities in EU financial system: September 2017

The Joint Committee of the European Supervisory Authorities (ESAs) has published its September 2017 report (JC 2017 46) on risks and vulnerabilities in the EU financial system. The Committee identifies Brexit and rapid developments in FinTech as the two main risks to the EU financial system.

Joint Committee of the European Supervisory Authorities, 21 September 2017


European Parliament decides not to object to MiFIR Delegated Regulation exempting certain third countries' central banks from pre- and post-trade transparency requirements

The European Parliament has updated its procedure file on the proposed Commission Delegated Regulation supplementing the Markets in Financial Instruments Regulation (MiFIR) with regard to exempting certain third countries' central banks in their performance of monetary, foreign exchange and financial stability policies from pre- and post-trade transparency requirements. The procedure file states that the Council of the EU and Parliament have raised no objection to the Delegated Regulation.

European Parliament, 21 September 2017


AFME report on MiFIR post-trade reporting requirements

The Association for Financial Markets in Europe (AFME) has published a report explaining the post-trade reporting requirements under Articles 6, 10, 20, and 21 of the Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR). The report is for use primarily by banks and investors to help clarify which party has the reporting obligation. The report also highlights the key challenges and practical implementation options for investment firms to consider.

AFME, 21 September 2017


New working group on risk-free reference rate for euro area

The Belgian Financial Services and Markets Authority, ESMA, the European Central Bank (ECB) and the European Commission have published a joint press release announcing the launch of a new working group that will identify and adopt a risk-free reference rate for the euro area. It is intended that the risk-free overnight rate will serve as a basis for an alternative to current benchmarks used in a variety of financial instruments and contracts in the Euro area.

ESMA, 21 September 2017