European Union 

European Central Bank   

Results of the Q4 2017 ECB Survey of Professional Forecasters. The ECB announced that it has published the results of the Q4 2017 ECB Survey of Professional Forecasters, where it was determined that HICP inflation expectations for 2017, 2018 and 2019 remained unchanged, while longer-term inflation expectations were revised upwards from 1.8 percent to 1.9 percent; real GDP growth expectations were revised upwards for 2017, 2018 and 2019; and unemployment rate expectations were revised downwards. (10/27/2017)   

Additional information on asset purchase program. The Governing Council of the European Central Bank announced that it has decided to publish on a monthly basis the expected monthly redemption amounts for the asset purchase program and to provide additional details on the program’s implementation. (10/26/2017)   

Monetary policy decisions. The ECB published the monetary policy decisionstaken by its Governing Council. (10/26/2017)   


ESMA publishes the 21st Extract from the EECS’s Database of Enforcement. ESMA announced that it has published an extract from its confidential database of enforcement decisions on financial statements. The extract includes a selection of 12 decisions taken by national enforcers in the period from June 2015 to February 2017. (10/31/2017)   

ESMA updates its Q&A under the Alternative Performance Measures guidelines. ESMA announced that it has published six new questions in its Questions and Answers (Q&A) document on the implementation of its Guidelines on the Alternative Performance Measures for listed issuers. (10/30/2017)   

Listed issuers must focus on new IFRS standards in 2017 annual financial reports. ESMA announced that it has published the priorities to be considered by listed companies, and their auditors, when preparing and auditing their 2017 financial statements. These priorities are set out in the annual Public Statement on European Common Enforcement Priorities, through which ESMA promotes the consistent application of the International Financial Reporting Standards (IFRS). (10/27/2017)   

European Banking Authority   

EBA publishes final guidance on supervision of significant branches. The EBA announced that it has published its final Guidelines on the supervision of significant branches. (11/1/2017) 

EBA recommends proportionate approach in coverage of entities in banking group recovery plans. The EBA announced that it has published its final Recommendation on the coverage of entities in banking group recovery plans. (11/1/2017)   

EBA launches consultations to strengthen the Pillar 2 framework. The EBA announced that, in accordance with its Pillar 2 Roadmap published in April 2017, it has launched a public consultation to review three guidelines aimed at further enhancing institutions’ risk management and supervisory convergence in the supervisory review and examination process. The revisions focus on stress testing, particularly its use in setting Pillar 2 capital guidance, as well as interest rate risk in the banking book. The consultations on all three guidelines run until January 31, 2018. (10/31/2017)   

EBA provides overview of Competent Authorities implementation and transposition of the CRD IV package. The EBA announced that it has updated all the information disclosed by EU Competent Authorities according to its Implementing Technical Standards on supervisory disclosure. (10/30/2017)   

EBA announces final timeline for the 2018 EU-wide stress test. The EBA announced that it has agreed on the final timeline of the 2018 EU-wide stress test. (10/30/2017)   

EBA consults on requirements for home-host cooperation under PSD2. The EBA announced that it has launched a public consultation on draft regulatory technical standards specifying the framework for cooperation and the exchange of information between competent authorities under the revised Payment Services Directive. The RTS also clarify the type of information as well as the templates to be used by payment institutions when reporting to the competent authorities of the host Member States on the payment business activities carried out in their territories. The consultation runs until January 5, 2018. (10/27/2017) 

United Kingdom

FCA responds to Payment Systems Regulator’s work on authorized push payment scams. The UK Financial Conduct Authority described the work it performed as part of the Payment Systems Regulator’s report on authorized push payment scams. The FCA examined the policies and procedures of banks for handling these scams, finding that banks’ procedures for handling cases of push payment scams are often unclear and not consistently applied. (11/7/2017) FCA statement. 

FCA proposes future approach to regulating consumers. The FCA is seeking comments on a document that outlines its approach to regulating for retail consumers by addressing several key issues, including firm and consumer responsibility; identifying vulnerability; and tackling access and exclusion issues. Comments are due on or before February 5, 2018. (11/6/2017) FCA press release. 

PRA adjusts 2017/18 AFR fee rates. The Prudential Regulation Authority published a policy statement that finalizes rules to correct the fee rates for the PRA’s Annual Funding Requirement for 2017/18. (11/6/2017) PRA press release. 

PRA plans to make minor Rulebook corrections. The PRA announced that it will make corrections to the PRA Rulebook following its consultation on Administration Instrument (No.3) 2017, which proposed several minor, non-substantive corrections to several Rulebook provisions. (11/6/2017) PRA press release. 

FCA reminds Principals of obligations to monitor for inappropriate influence by introducers. The FCA published an alert to Principals who have Appointed Representatives or Introducer Appointed Representatives about the risks of being inappropriately influenced by an introducer. The alert reminds Principals that they must have adequate oversight of their ARs and introducers by conducting sufficient due diligence and monitoring the type, volume and source of business being submitted by its ARs. (11/3/2017) FCA press release. 

PRA consults on clarifications to supervisory approval for the volatility adjustment under Solvency II. The PRA requested comments on a consultation paper that clarifies the risks that may arise from use of a volatility adjustment to insurance and reinsurance business and how firms are expected to consider those risks. Comments are due on or before February 9, 2018. (11/3/2017) PRA press release. 

FCA proposes approach to supervising standards of market conduct for unregulated markets and activities. The FCA published a consultation paper that proposes a general approach to supervising and enforcing the Senior Managers & Certification Regime rules for authorized firms’ unregulated activities, including those covered by industry-written codes of conduct.  Comments are due on or before February 5, 2018. (11/2/2017) PRA press release. 

FCA policy statement on regulatory framework for Insurance-Linked Securities. The FCA issued a policy statement that contains the near-final statement on the FCA’s approach to authorizing and supervising insurance special purpose vehicles and the near-final rules that incorporate the new regulated activity of insurance risk transformation into the FCA’s Handbook. The FCA will finalize the statement and rules after the UK Parliament completes the process to write the Risk Transformation Regulations 2017 into law. (11/1/2017) FCA policy statement. 

PRA framework for the authorization and supervision of ISPVs. The PRA published a policy statement that contains materials relating to the authorization and supervision of insurance special purpose vehicles, including a supervisory statementamendments to the Insurance Special Purpose Vehicles Part of the PRA Rulebook; an application form; and two sets of notification forms for multi-arrangement ISPVs. The policy statement and related materials will become effective when the Risk Transformation Regulations 2017 pass through Parliament. (11/1/2017) PRA press release. 

FCA seeks comments on new proposals on FSCS funding. The FCA issued a consultation paper that contains the final rules for changes to the Financial Services Compensation Scheme funding, which the FCA consulted on in December 2016. The consultation also makes additional proposals regarding FSCS funding. Comments on the new proposals are due on or before January 30, 2018. (10/30/2017) FCA press release. 

FCA consults on fees to cover costs of AML supervision. The FCA requested comments on a consultation paper that proposes a framework for the FCA to recover the costs of establishing and running the Office for Professional Body Anti-Money Laundering Supervision, which will oversee the adequacy of the AML supervisory arrangements of 22 professional body AML supervisors. Comments are due on or before January 8, 2017. (10/27/2017) FCA press release. 

FCA finalizes guidance on calculating redress for unsuitable defined benefit pension transfers. The FCA published finalized guidance for firms that receive complaints about advice they gave to transfer the cash value of accrued benefits under a defined benefit pension scheme into a personal pension scheme. The guidance sets out the approach for these firms to calculate appropriate redress in circumstances where the advice was negligent or contravened relevant requirements and the customer otherwise would not have made the transfer. (10/27/2017) FCA finalized guidance. 

PRA encourages NEDs to prepare for IFRS 9. The PRA published a note for non-executive directors who sit on boards of firms that will be impacted by the implementation of International Financial Reporting Standard 9, which will take effect on January 1, 2018. Among other things, the note recommends that NEDs discuss with their boards their firm’s approach to transitional arrangements, the impact of the new provisioning for expected credit loss, the ability to source and manage risk data, and the need for timely and complete disclosures on the transition to IFRS 9. (10/27/2017) PRA note. 

FCA statement on SEC and European Commission guidance on MiFID II inducements and research. The FCA released a statement in which it welcomed the guidance issued by the European Commission and the SEC that address MiFID II inducements and research provisions and their interaction with US regulation. (10/26/2017) FCA statement. 

FCA finalizes several reforms to UK primary market. The FCA published two policy statements that make reforms to the regulatory framework governing UK primary capital markets. The first statement contains final rules to improve the range, quality and timeliness of information available to investors during the equity IPO process. The second statement makes several changes to the Listing Regime. The FCA also published a feedback statement that identifies several areas for additional stakeholder engagement, including the relative positioning of standard versus premium listing, the provision of patient capital to companies that require long-term investment, and retail access to debt markets. (10/26/2017) FCA press release. 

FCA publishes position limits for commodity derivative contracts. The FCA published position limits on certain commodity derivative contracts that are traded on UK trading venues. The published limits, which will become effective on January 3, 2018, apply to positions held in the named commodity derivatives, in aggregation with any associated mini, Balance of Month (Balmo), and mini-Balmo contracts, where the contracts have identical contractual specifications. (10/26/2017) FCA press release. 

FCA urges consumers to speak out about investment fraud. The FCA encouraged more consumers to report suspected investment scams. The FCA’s call responds to new research indicating that more than one-fifth of people who suspect they have been contacted by a fraudulent investment firm remain silent. (10/25/2017) FCA press release. 

PRA consults on proposed guidance on Solvency II’s matching adjustment. The PRA requested comments on a consultation paper that proposes its expectations in the application of the matching adjustment under Solvency II, which allows firms to adjust the relevant risk-free interest rate term structure for the calculation of a best estimate of a portfolio of eligible insurance obligations. Comments are due on or before January 31, 2018. (10/25/2017) PRA press release.

PRA clarifies use of IFRS 9 for 2018 ICAAP stress testing and capital planning.The PRA issued a clarification on how firms should incorporate IFRS 9 into stress testing and capital planning carried out as part of their Internal Capital Adequacy Assessment Process obligations from 2018. (10/25/2017) PRA stress test scenario webpage.