Please see the Markets and Markets Infrastructure section for the FMLC’s paper on legal uncertainties arising from Brexit statutory instrument on securitisations.
Please see the Other Developments section for the FCA’s updated MoUs with the SEC.
Final EBA Outsourcing Guidelines: Impact on firms’ Brexit contingency plans
The EBA has published final guidelines on outsourcing (the EBA Guidelines), which will replace the guidelines issued by its predecessor, the Committee of European Banking Supervisors, with effect from 30 September. The EBA Guidelines will apply to all firms within the EBA’s remit, being CRD IV institutions, payment services institutions and e-money institutions. The EBA has focussed on reducing the risks posed by so-called ‘letter-box entities’, outsourcing of banking and/or payment services (particularly to non-EEA locations) and intra-group outsourcings, all of which may have material consequences for firms’ Brexit contingency plans. Please find A&O’s bulletin here.
Draft Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 2) Regulations 2019 laid before Parliament
On 4 April, a draft version of the Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 2) Regulations 2019 was published, together with a draft explanatory memorandum. The purpose of the Regulations, which have been laid before Parliament, is primarily to make minor amendments to financial services statutory instruments made under the European Union (Withdrawal) Act 2018. Among other things, the Regulations make amendments to: (i) the EEA Passport Rights (Amendment, etc, and Transitional Provisions) (EU Exit) Regulations 2018 and the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 relating to the Financial Services Contracts Regime (FSCR). These Regulations are revised to require firms that enter contractual run-off (CRO) under the FSCR, to inform their UK consumers of their status under the CRO, and to disclose any changes to consumer protection; and (ii) the Financial Conglomerates and Other Financial Groups (Amendment) (EU Exit) Regulations to ensure that provisions in those Regulations are temporarily modified to allow the FCA and the PRA to use their temporary transitional arrangements effectively. The Regulations also make minor amendments to the Long-term Investment Funds (Amendment) (EU Exit) Regulations and the retained version of Commission Delegated Regulation (EU) 2015/61 on the liquidity coverage ratio. HMT published a draft version of the Regulations and related explanatory information document on 28 February. Regulation 1 (Citation and commencement) comes into force on the day after the day on which the Regulations are made. Regulation 10, which amends the retained version of Commission Delegated Regulation (EU) 2015/61, comes into force on the later of exit day or the day after the day on which the Regulations are made. The remainder of the regulations will come into force immediately before exit day or the day after the day on which they are made, whichever is later. Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 2) Regulations 2019