PRA consults on criteria for identifying other systemically important institutions. The UK Prudential Regulation Authority (PRA) published a consultation paper proposing the criteria and scoring methodology it plans to use to identify other systemically important institutions (O-SIIs), which it defines as institutions that, due to size, complexity, importance, or interconnectedness, would have a systemic impact on the UK or the EU economy if they experienced distress or failure. Comments are due on or before January 18, 2016. (10/19/2015) PRA press release.
ECB survey on credit terms in securities financing and OTC derivatives. The European Central Bank (ECB) released the results of its September 2015 survey of credit terms and conditions in euro-denominated securities financing and OTC derivatives markets. The survey reported that, for the fourth consecutive quarter, less favorable price terms are being offered to counterparties across all types of securities financing and OTC derivatives transactions. (10/16/2015) ECB press release.
PRA consults on ring-fencing requirements and shared services operational continuity. The PRA published two consultation papers that propose structural reforms to the UK financial system. The first consultation paper, CP37/15, sets out proposals to ensure that ring-fenced banks have sufficient stand-alone financial resources and liquidity and that ring-fenced banks are protected from failure by structuring intragroup exposures and arrangements to allow the ring-fenced bank to detach easily from a group. Comments are due on or before January 15, 2016. The second consultation paper, CP38/15, proposes rules that would establish guidelines for how banks, building societies, and PRA-authorized firms should structure their operations to minimize disruptions to shared services during times of stress or failure. The deadline for comments on the proposal will be set after the PRA publishes an addendum to the proposal. (10/15/2015) Bank of England press release.
ESMA updates credit rating agency performance data. The European Securities and Markets Authority (ESMA) released statistical data on the performance of credit rating agencies during the period from January 1 through June 30, 2015.
(10/15/2015) ESMA press release.
UK government extends Senior Managers and Certification regime to entire financial services industry. The UK government announced that it will extend the Senior Managers and Certification regime beyond banking to all sectors of the financial services industry, including large investment firms, insurers, and participants in shadow banking, and also introduce a statutory duty of responsibility that will apply to all senior managers across the financial industry. (10/15/2015) HM Treasury policy paper.
FCA publishes October 2015 issue of its Regulation round-up. The UK Financial Conduct Authority (FCA) released its Regulation round-up for October 2015, which provides a monthly update of news affecting regulated firms. (10/15/2015) FCA press release.
EU adopts new rules enhancing safety of European payment services. The European Commission announced that the European Parliament has adopted its revised Directive on Payment services, which provides additional consumer protections, security requirements, and modernizations to payment services in the European Union (EU). Member states will have two years after the rules have been formally adopted and published in the Official Journal of the EU to comply with the new rules. (10/8/2015) European Commission press release.
ESMA indicates key priorities for 2016. ESMA published its priorities and activities it will pursue to further its objectives of enhancing investor protection and promoting stable financial markets in its 2016 Work Programme. ESMA has identified supervisory convergence, MiFID II and MiFIR, and data collection and management as its top priorities for 2016. (10/7/2015) ESMA press release.
FCA consultation on regulatory references under the Senior Managers and Senior Insurance Managers Regimes. The FCA, in collaboration with the PRA, published a Consultation Paper proposing revisions to the reference process for candidates seeking certain roles at firms, including senior management roles under the Senior Managers Regime, PRA senior insurance management roles under the Senior Insurance Managers Regime, and notified non-executive director (NED) roles and credit union NEDs. Comments are due on or before December 7, 2015. (10/6/2015) FCA press release.