This week, we report on the FCA’s regular regulatory round up for March, with the ‘hot topic’ being the preparation of Statements of Responsibility and the mapping of such under the SM&CR.
We also report on the Council of the European Union’s note approving the proposed regulation on disclosures relating to sustainable investments and sustainability risks.
ESMA has had a busy month, issuing several papers on the investment management space.
Finally, we highlight recent Brexit headlines including the FCA and PRA announcements extending the TPR notification window and the financial services Brexit Statutory Instruments that have been made over the last couple of weeks.
FCA Regulation round-up for March 2019
On 26 March 2019, the FCA published its Regulation round-up for the month. One ‘hot topic’ for the FCA is the work involved with preparing Statements of Responsibility and the mapping of responsibilities under the SM&CR. Firms should take the hint from this reminder to use the guidance provided by the regulator and be compliant before 9 December 2019, when the extended regime comes into effect. From a practice point of view, firms should not underestimate the amount of time involved to conduct the analysis required before they can design their implementation plan, let alone implement it and then subject it to testing.
Another point of potential interest to some is the FCA’s intention to turn off the old FSA website over the next few months. It seems that only some of the links will be redirected to the FCA, so if you ever find the need to obtain older rules, guidance or policy in the future, it will mean going to the National Web Archives.
FCA Handbook Changes
On 29 March 2019, the FCA published its Handbook Notice 64, outlining the changes to the Handbook, Binding Technical Standards and other material made by the FCA and by the FOS.
Sustainable investments and risk disclosures: update
On 22 March 2019, the Council of the EU indicated its approval of the proposed regulation on disclosures relating to sustainable investments and sustainability risks, requesting the approval of its final compromise text agreed 6 March 2019. On 27 March 2019 it was reported that the text was agreed.
Sustainable Finance project: ESMA MiFID II, UCITS, and AIFMD consultations
On 22 March 2019, ESMA’s senior policy officer on Investor Protection and Intermediaries Team published a short presentation document showing the timetable (under the 2018 action plan) for ESMA to deliver technical advice (the deadline is 30 April 2019). The document provides a handy overview of the various consultations.
PRIIPs framework: views of Securities and Markets Shareholder Group (SMSG)
On 25 March 2019, ESMA published advice that it received (dated 26 February 2019) from the SMSG on the draft regulatory technical standards amending the PRIIPs Delegated Regulation.
ESMA consultation: ELTIF regulatory technical standards
On 28 March 2019, ESMA released a consultation paper on draft regulatory technical standards relating to costs disclosure under the Regulation on Long-Term Investment Funds (ELTIF Regulation).
ESMA’s New Q&A: application of the UCITS Directive
On 29 March 2019, ESMA released a new, consolidated Q&A document, which repeals and replaces all Q&As relating to the UCITS Directive that were previously issued by ESMA.
TPR notification window moved to 11 April 2019
The same webpages includes the announcement of supplementary directions (dated 22 March 2019) stating that any firm that withdraws its notification in writing to the FCA before exit day will not enter the TPR.
FCA’s switchover: MIFID IT (transparency reporting)
On 26 March 2019, the FCA announced it will not switch over its IT systems to replace ESMA’s MiFID systems until the weekend of 13/14 April with a go-live date of 15 April 2019. You can read more in the FCA’s regulation round-up.
The financial services Brexit Statutory Instruments that were made this week are listed below:
- Mortgage Credit (Amendment) (EU Exit) Regulations 2019 made: Brexit SI.
- Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 made: Brexit SI.
- Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 made: Brexit SI.
- Payment Accounts (Amendment) (EU Exit) Regulations 2019 made: Brexit SI.
- Insurance Distribution (Amendment) (EU Exit) Regulations 2019 made: Brexit SI.
- Investment Exchanges, Clearing Houses and Central Securities Depositories (Amendment) (EU Exit) Regulations 2019 made: Brexit SI.
- Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 made: Brexit SI.
- Public Record, Disclosure of Information and Co-operation (Financial Services) (Amendment) (EU Exit) Regulations 2019 made: Brexit SI.
- Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019 made: Brexit SI.
If you would like to discuss any of these developments, please get in touch with one of the experts listed below.