1. FCA: Temporary transitional powers
Further to the directions made on 28 March 2019, FCA has updated and published draft directions and updated its explanatory note providing guidance on the use of the TTP. The main updates relate to the following areas: extending the proposed duration of the directions issued under the TTP from 30 June 2020 to 31 December 2020; updating the provisions relating to prudential requirements to reflect new HMT legislation and FCA exit instruments published since 29 March 2019 (FCA’s policy approach has not changed); revoking certain directions in relation to payment services, provided by EEA credit institutions in the financial services contracts regime, as these are no longer needed because of legislative amendments made by the Government and applying a standstill direction to allow EEA Central Banks and ECB to continue to rely upon their status as exempt persons until 31 December 2020. It is noted that FCA does not expect to make significant changes to the draft directions in advance of exit day.
2. ESMA: RTS 2 review
ESMA has published its response to the EC with regard to its annual review of RTS 2, which requires ESMA to assess the operation of some transparency thresholds for bonds and derivatives. It has been agreed that the review will not take place in 2019 due to “remaining uncertainties around a potential no-deal Brexit”. ESMA intends to perform the annual review of RTS 2 by 30 July 2020.
3. Supreme Court rule prorogation of parliament was unlawful
The Supreme Court ruled that the prorogation was unlawful. The full judgement is available here.
4. European parliamnet: Brexit
The European Parliament discussed the state of play with regard to Brexit on 18 September and also adopted a resolution reiterating support for the EU's position and stating they would reject any withdrawal agreement without a backstop.
5. HoC: UK replacement of the EU’s external agreements after Brexit
This updated HoC Library briefing considers agreements with non-EU countries that the Government is seeking to replace in the event of a no deal Brexit, some of which will not be in place by 31 October 2019.
6. TSC: BoE appointment
TSC has written to Sajid Javid to confirm whether the timetable for the appointment process for the Governor of BoE is still as was advised to the Committee by Philip Hammond in April 2019. TSC notes that it has been reported today that the appointment of the next Governor may be delayed, and that Mark Carney may be asked to extend his service beyond 31 January 2020.
7. FCA: Speech by Andrew Bailey: Preparing for Brexit in financial services: the state of play
Text of Andrew Bailey’s speech of 16 September 2019 follows, in which he provides an update on Brexit planning and preparation at the regulator. He cites seven areas where further action is required by the UK or the EU: the Share Trading Obligation, the Derivatives Trading Obligation, clearing, uncleared derivatives, data exchange, progress on contract repapering and retail financial services preparation. However he also notes: ‘preparations for a No Deal No Transition Scenario have advanced… As a consequence of the progress made, the Bank has judged that its assessment of the impact of this scenario has become less severe.’
8. HoC: Brexit questions in national and EU courts
An updated version of this HoC Library briefing has been published.
Other publications from the RegZone Brexit news feed
PMO: Meeting with Donald Tusk
A short note on Boris Johnson’s meeting with Donald Tusk on 23 September 2019 is available here.
BIS: Speech by François Villeroy de Galhau: The role of banking in a sustainable global economy
Text of a speech given on 17 September 2019 follows, in which François Villeroy de Galhau discusses sustainable finance and comments on the EU's relationship with the UK post-Brexit.
PMO: Calls with European leaders
A note describing calls made between Boris Johnson and European leaders on 18 September 2019 has been published.
Department for Exiting the EU: Speech by Stephen Barclay
The text of Stephen Barclay'sspeech of 19 September 2019.
BoE publish results from Decision Maker Panel survey
The survey tracks the views of small, medium and large UK Businesses. This quarter Brexit uncertainty, subdued investment growth and stockpiling were highlighted as causing concern amongst UK businesses.
The EC has published a statement following the meeting of 20 September 2019 between Michel Barnier and Stephen Barclay. It was agreed that technical talks would continue. The EU further reiterated that it was ‘open to examine any such proposals that meet all the objectives of the backstop.’
ESMA: Minutes of Board of Supervisors meeting
ESMA has now published the minutes of the meeting held on 11 July 2019. Topics include: Brexit; EMIR; ESMA’s 2020/2021 revised strategy and PRIIPs.
FRC: Brexit preparations
FRC has published the text of a letter sent to Audit Committee Chairs and Finance Directors which sets out some of the generic actions companies should consider in advance of Brexit.
PMO: PM call with Angela Merkel
PMO has published a short note of a call made on 17 September 2019. Topics include: Brexit.
HoC: No deal Brexit: trade
This HoC Library briefing paper sets out the implications for UK trade with EU and non-EU countries of a no deal Brexit.
PMO/EC: Brexit meeting on 16 September 2019
Statements from PMO and the EC following the meeting on 16 September 2019 follow.