Delegated Regulation amending list of high risk third countries under MLD4 is adopted

The Council of the EU has published a cover note giving details of a Commission Delegate Regulation amending Commission Delegate Regulation supplementing MLD4 by identifying high-risk third countries with strategic deficiencies. A public consultation has not been held as the list in the new Delegated Regulation corresponds to the agreed international list, but the Expert Group on Money Laundering and Terrorist Financing did consult on the draft Delegated Act by written procedure.

Council of the EU, 28 November 2016

Letter to proportionality level 1 firms on 2016/17 remuneration round

The FCA has published a letter sent to firms in proportionality level 1 regarding the 2016/17 remuneration round.  This provides further information on recent regulatory developments and especially focuses on culture and governance and enhanced accountability.

FCA, 28 November 2016

Report on macroprudential policy issues

The European Systemic Risk Board has published a report on macroprudential policy issues arising from low interest rates and structural changes in the EU financial system. A related Q&As document has also been published.

ESRB, 28 November 2016


FCA consultation on amendments to DTR 2.5 under MAR

The FCA has published a consultation paper on proposed amendments to DTR 2.5 – delaying disclosure of inside information. The changes include:

  • Adding a general sign post to ESMA guidelines at DTR 2.5.1BG
  • Deleting DTR 2.5.3G
  • Minor amendments to DTR 2.5.4G
  • Deleting the third sentence in DTR 2.5.5G
  • Adding a definition of the ESMA guidelines to the FCA Handbook Glossary

The consultation concludes on 6 January 2017. 

FCA, 28 November 2016

Legislative proposal for Regulation on CCP resolution and recovery from EC

The EC has published a legislative proposal for a Regulation adopted on the resolution and recovery of central counterparties. This will apply to all CCPs in the EU and aims to prevent taxpayers bearing the costs of restructuring and resolution of failing CCPs, setting out the following requirements:

  • CCPs recovery and resolution plans
  • Early intervention powers for resolution authorities
  • Resolution powers and tools available to resolution authorities
  • Relationships with third countries concerning the resolution of CCPs

European Commission, 28 November 2016

IA outsourcing working group updates guidance

The Investment Association has published an updated version of its outsourcing working group report. This is intended to be read in conjunction with the original report and asset managers are advised to keep on top of developments as the framework of regulation evolves.

Investment Association, 28 November 2016