UK FCA reports on fund charges. The UK Financial Conduct Authority published its findings concerning the marketing information used by 11 fund firms. While a number of good practices were found, the FCA’s review also revealed instances where firms did not present the same summary charges figure on its website and fund documents, did not provide investors with a clear, combined figure for charges in their marketing material or on websites and examples of poor descriptions of administration charges that did not accurately reflect the operation of the charge. (5/13/2014) FCA press release.
UK FCA expectations for dealing commissions. The UK Financial Conduct Authority published a policy paper on how investment managers can use dealing commissions. The paper also clarifies which costs investment managers can pass on to their clients through dealing commissions. (5/8/2014) FCA press release.
ESMA to ease central clearing requirements. The European Securities and Markets Authority advised the European Commission that it will ease certain frontloading requirement under the European Markets Infrastructure Regulation. Frontloading refers to the clearing obligation under EMIR, which will require counterparties to centrally clear certain derivative trades through clearing. (5/8/2014) ESMA notice.
New auditor rules. Business Day noted the UK Financial Reporting Council’s new rule requiring auditors to comment on the risks faced by their audit clients. (5/8/2014) Auditing rules.
EBA consultation on the treatment of equity exposures. The European Banking Authority launched a consultation on draft Regulatory Technical Standards to specify the treatment of equity exposures under the internal ratings-based approach. Comments should be submitted by July 7, 2014. (5/7/2014) EBA press release.
Credit rating agency approved. The European Securities and Markets Authority has approved the registration of EuroRating Sp. z o.o., based in Poland, as a credit rating agency. (5/7/2014) ESMA notice.
EBA publishes risk dashboard. The European Banking Authority published the first risk dashboard for 2014, which summarizes the main risks and vulnerabilities in the banking sector in the European Union. The dashboard includes an annex on aggregate risk parameters. (5/6/2014) EBA press release.
UK FCA guidance on the conversion of asset classes. The Financial Conduct Authority published new guidance on the process of transferring investors from unit classes in existence prior to the implementation of the Retail Distribution Review to those unit classes available now. (5/6/2014) FCA press release.
UK FCA investigatory protocol. The Non-Executive Directors of the Financial Conduct Authority published the protocol setting out the procedures under which the inquiry into the handling of the FCA’s announcement of proposed supervisory work on the fair treatment of long standing customers in life insurance will be carried out. (5/2/2014) FCA press release.
Bank of England Financial Stability Paper. The Bank of England published a paper considering whether and when simpler approaches may outperform more complex methods for modelling and regulating the financial system. (5/2/2014) Financial Stability Paper.
EBA data collection on credit valuation adjustment. The European Banking Authority has launched a data collection exercise to advise the European Commission on appropriate amendments to the European Credit Valuation Adjustment (CVA) framework and inform discussions on the CVA risk charge in Basel. Banks with substantial portfolios of OTC derivatives are encouraged to participate in this data collection exercise on a voluntary basis. (4/30/2014) EBA press release.
UK loses financial tax challenge. The European Court of Justice dismissed a petition brought by the UK which challenged the European Union’s planned financial transaction tax. The Court found that suit was premature because no tax has actually been imposed. (4/30/3014) Court of Justice press release.