Reform tracker

Take a quick overview of the major changes planned in financial services regulation with the Reform Tracker. Entries are colour-coded to reflect their current status: from blue-sky consultations to imminent implementation. Use the search bar and filters below to narrow your focus by country and sector. Alternatively, use the Regulatory Timeline tool for more information on timetables and deadlines.
  • Blue: No legislative proposal as of yet
  • Green: Legislative proposals published but not yet adopted/finalised
  • Yellow: Legislation in force but main substantial provisions not yet effective
  • Red: Legislation in force and main, substantial provisions now effective
  • Grey: Not proceeding
  • Magenta: No longer updated

Showing 21 - 30 of 30 matches filtered by 'Banking and finance'

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  • Subject:
    Fifth Money Laundering Directive (2016/0208(COD)) (MLD5)
    Status:
    Proposed Directive to amend the Fourth Money Laundering Directive ((EU) 2015/849) (MLD4). The proposed Directive is known as the Fifth Money Laundering Directive (MLD5). The legislative proposal takes the form of a minimum harmonising Directive, which means that member states can adopt or retain measures that are more stringent than those in the proposed Directive.
    Last updated:
    20/11/2019
    Overview/summary:
    MLD5 amends MLD4 as part of the Commission's action plan to strengthen the fight against terrorist financing. The amendments proposed are limited to what is necessary to achieve the objectives of tackling terrorist financing and increasing the transparency of financial transactions and legal entities, and build on rules already in force (in line with the principle of proportionality).
    Publications by date:

    19 April 2018

    The European Parliament published a press release announcing that it has voted in plenary to adopt the proposed Fifth Money Laundering Directive (2016/0208(COD)) (MLD5).

    14 May 2018

    Council of the EU published a press release announcing that it has adopted the proposed MLD5.

    19 June 2018

    The text of MLD5 was published in the Official Journal of the EU.

    15 October 2019

    FCA published a consultation paper (CP19/29) on recovering the costs of supervising cryptoasset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692). There are two proposals: a registration fee of £5,000 and periodic fees based on income.

    25 October 2019

    FCA published a new webpage on its role as the anti-money laundering (AML) and counter terrorist financing (CTF) supervisor of UK cryptoasset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692).

    Further past dates are accessible via the RegZone newsfeed here.

    Reform Tracker - sector future dates:
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  • Subject:
    Ring-fencing (EU) and the Liikanen Report
    Status:
    EU ring-fencing/bank structural reform legislative proposals published. The Netherlands Presidency of the Council of the EU has published the 2016 Work Programme - in which it notes that trialogue negotiations will begin as soon as the European Parliament has determined its position regarding the proposed Regulation.
    Last updated:
    02/05/2017
    Overview/summary:

    The proposed Regulation on structural measures improving the resilience of EU credit institutions is based on the recommendations of the October 2012 Liikanen Report. The Regulation would grant national regulators ‘ring-fencing’ powers allowing them to force larger banks into separating their deposit-taking from their riskier trading activities. It also includes a proposed ban on proprietary trading. 

     

    The proposed Regulation has been subject to intense debate by the ECON Committee and the Council; the proposed Regulation now differs substantially from its original draft published in 2014. From the Committee's text, the proposed Regulation will apply to global systemically important institutions (in line with CDR IV) or to entities with total assets of at least EUR 30bn over the last three years and trading activities of at least EUR 70bn or 10% of their total assets. Using the criterion of trading activities (during the last three years) exceeding EUR 100bn - banks will be sorted into two tiers. Banks exceeding this threshold are to be subject to  more stringent reporting requirements and supervision. The Council has included a review clause in the text they have put forward; this is to enable a review of the sovereign debt instrument exclusion, having due regard to European and international developments.

     

    The proposed Regulation will not apply to institutions with total eligible deposits (in line with DGS) of less than 3% of their total assets, or total eligible retail deposits of less than EUR 35bn.

     

    The EU ring-fencing regulation is an important complement to the Directive establishing a framework for the recovery and resolution of credit institutions and investment firms (BRRD).

    Publications by date:

     

    2 October 2012  

    Liikanen report published.

    29 January 2013 Michel Barnier, the European Commissioner in charge of regulatory reform, appears to soften line on key ring-fencing recommendation.
    29 January 2014  EU legislative proposals published.
    25 February 2014  Committee referral announced in European Parliament, 1st reading/single reading.
    20 October 2014 Committee referral announced in European Parliament, 1st reading/single reading.
    26 May 2015 Vote in committee, 1st reading/single reading. It was widely reported that ECON voted to reject its draft report on the proposed Regulation on Bank Structural Reform (rejecting the report by one vote: 30-29 with one abstention). ECON published a press release stating that it would reconsider its position.
    19 June 2015 Debate in Council. The Council agreed its negotiating stance in relation to this proposed Regulation. The Council also published the text of its general approach along with a short corrigendum note.
     January 2016 The Netherlands Presidency of the Council of the EU published its 2016 Work Programme.It states that trialogue negotiations will begin as soon as the European Parliament has determined its position regarding the proposed Regulation.

     

    Further past dates are accessible via the RegZone ring-fencing news feed here.

    Reform Tracker - sector future dates:
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  • Subject:
    General Data Protection Regulation
    Status:
    General Data Protection Regulation has been adopted and published in the Official Journal of the EU (4 May 2016). The GDPR will apply as of 25 May 2018; the Directive on protecting personal data will apply as of 6 May 2018.
    Last updated:
    25/06/2018
    Overview/summary:

    The Regulation on the protection of individuals with regard to the processing of personal data and on the free movement of such data (the General Data Protection Regulation (GDPR)) forms part of the wider European Commission data protection reform agenda. The aims of the reforms are to expand the EU’s digital economy (Digital Single Market) and to enhance the level of data protection for individuals.

     

    The Regulation’s key elements include:

    • Enhanced rights of the individual – right of access to personal data; rights to rectification, to be forgotten, to erasure, to object; and the right to data portability.
    • Obligations of data controllers and processors – obligation to provide transparency; to implement appropriate security measures; and to provide notification of personal data breaches.
    • Supervisory authorities – there is an existing obligation for Member States to establish an independent supervisory authority; the Commission proposal also includes the setting up of a European Data Protection Board.
    • Transfers outside the EU – the Regulation covers the transfer of personal data to third countries and international organisations.
    • Right to remedy and sanctions – data subjects have the right to lodge a complaint. There are more serious sanctions for data controllers/processors that violate data protection rules. Those administrative sanctions would be imposed by the national data protection authorities.

    In parallel to this Regulation, a Directive on protecting personal data processed for the purpose of law enforcement will apply from 6 May 2018. On 4 May 2016, the GDPR was published in the Official Journal of the EU, and will apply from 25 May 2018.

    Publications by date:

     

    January 2012 European Commission publishes original draft proposals for reform of EU data protection law in the form of a Regulation and a Directive.
    6 May 2013 EP Committee announced vote will be delayed.
    31 March 2013 A revised text of proposed Regulation was  published in the Council`s register.
    12 March 2014 European Parliament votes in favour of the Regulation. December 2014: New draft version of GDPR by the Council of Ministers.
    9 March 2015 The latest compromise draft texts of the General Data Protection Regulation were published in the Council of the EU's Register.
    15 July 2015 European Council approves EU General Data Protection Regulation draft.
    27 July 2015 European Data Protection Supervisor published an Opinion regarding the proposed Data Protection Regulation.
    15 December 2015  Council of the EU published a note from the Presidency to COREPER regarding analysis of the final compromise text with a view to agreement.
    18 December 2015  COREPER has confirmed the final compromise texts and agreement with the European Parliament.
     4 January 2016 Council of the EU published declassified documents relating to the proposed legislation.
     7 January 2016 The European Data Protection Supervisor (EDPS) published the organisation's 2016 priorities and consultation activities. Priorities include the proposed Data Protection Regulation and Directive.  
    12 February 2016  Council of the EU confirmed the agreement regarding the proposed GDPR.
    29 February 2016 European Commission issued the legal texts that will put in place the EU-US Privacy Shield.
    8 April 2016 Council of the EU approved the proposed Regulation at first reading.
    15 April 2016 European Parliament published a press release announcing that the proposed Regulation had been adopted and also provided a Q&A document.
    4 May 2016 General Data Protection Regulation (GDPR) published in the Official Journal of the EU.

    17 May 2016

     

    Council of EU adopted the proposed Network and Information Security Directive.

    Further past dates can be accessed via the RegZone data protection newsfeed here.

    Reform Tracker - sector future dates:
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  • Subject:
    Groups & the Financial Conglomerates Directive (FICOD)
    Status:
    FICOD I in force; no draft legislative proposal published for FICOD II yet. The European Supervisory Authorities' Work Programme 2016 listed financial conglomerates as a priority.
    Last updated:
    29/11/2016
    Overview/summary:

    The Financial Conglomerates Directive (2002/87/EC) (FICOD) introduced a prudential regime for financial conglomerates; it was later amended by a further Directive (2011/89/EU) (FICOD I) to close certain supervisory loopholes. In 2012 the European Commission began a fundamental review of FICOD, known as ‘FICOD II’, although no actual legislative proposal was adopted; instead, the Commission decided just to keep the matter under review for the present.

     

    The European Supervisory Authorities' Work Programme 2016 listed financial conglomerates as a priority.

    Publications by date:

     

    16 August 2010 Original draft legislative proposal for amending FICOD (i.e. FICOD I).
    16 November 2011  The European Parliament and Council adopt the amending Directive.
    8 December 2011 FICOD I published in OJ. Comes into force the next day (9 December 2011).
    21 December 2012 FSA/HMT publish CP12/40 on UK implementation of FICOD I.
    4 June 2013 FCA PS13/4 on implementation of FICOD I, plus final rules (the Financial Conglomerates Directive (FCA Handbook Amendments) Instrument 2013 (FCA 2013/45)).
    10 June 2013 FICOD I rules come into force in the UK (and all other member states).
     
    22 July 2013
    FICOD I provisions relating to AIFM apply.
    21 January 2014 The European Commission adopted a delegated Regulation with regard to regulatory technical standards for the application of the calculation methods of capital adequacy requirements for financial conglomerates.
    3 April 2014 Delegated Regulation was published after the expiry of the objection period by the European Parliament and the Council.
    24 July 2014 The European Supervisory Authorities published a joint consultation on draft regulatory technical standards on risk concentration and intra-group transactions under Article 21a (1a) of the Financial Conglomerates Directive.
    22 December 2014 The European Supervisory Authorities published joint guidelines on the convergence of supervisory practices relating to the consistency of supervisory coordination arrangements for financial conglomerates.
    10 December 2015 

    The European Commission has requested Hungary, Luxembourg, and Poland to implement the first amendment of the Financial Conglomerates Directive. 

    The European Commission formally requested Croatia, Czech Republic and United Kingdom to fully implement Directive 2011/89/EU.

    The transposition of Directive 2011/89/EU into national law by Cyprus, France, Italy and Spain is completed.

    4 January 2016 (UK) PRA issued guidance for firms submitting a waiver under the Financial Conglomerates Directive (2002/87/EC) (FICOD).
    22 April 2016 (UK) FCA published details of instruments passed at its Board meeting on 21 April 2016. These included Financial Conglomerates (Consequential Amendments) Instrument 2016/28.
    9 June 2016 European Commission launched a consultation regarding the Financial Conglomerates Directive (2002/87/EC. The purpose of the consultation is to gather evidence on FICOD implementation and forms part of the evaluation the EC is conducting under its Regulatory Fitness and Performance programme.
    7 September 2016 European Commission adopted Delegated Regulation on RTS on Risk Concentration and Intra-Group Transactions under FICOD. 

    Further past dates are accessible via the groups and conglomerates news feed here.

    Reform Tracker - sector future dates:
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  • Subject:
    Senior Manager & Certification Regime
    Status:
    The Senior Manager and Certification regimes entered into force on 7 March 2016 for banks, building societies, credit unions and PRA-regulated investment firms. The SM&CR will be extended to FCA solo-regulated firms for implementation from 9 December 2019.
    Last updated:
    20/11/2019
    Overview/summary:

    On 15 October, HM Treasury published Senior Managers and Certification Regime: extension to all FSMA authorised persons. The key changes proposed include the introduction of a statutory duty of responsibility (superseding the controversial reverse burden of proof) and the extension of the Senior Managers’ and Certification Regime (SM&CR) to all sectors of the financial services industry. The SM&CR will replace the Approved Persons Regime (APR) for all firms other than insurers. The Senior Insurance Managers’ Regime (SIMR) is to be introduced as part of the implementation of Solvency II and encompasses the core principles of the SM&CR (for further detail on the SIMR, please see the separate Reform Tracker item on this topic).

     

    The framework comprises two regimes; a Senior Managers’ Regime and a Certification Regime. These new regimes are underpinned by a new set of conduct rules that apply to most staff within relevant firms.

     

    Senior managers will be pre-approved and subject to conduct rules. Senior managers must prepare a statement of responsibility setting out his/her duties. The bank must prepare and maintain a responsibilities map which describes all of the firm’s management and governance arrangements. There is a statutory duty of responsibility for all senior mangers across the financial services industry; the regulators will be able to take enforcement action if they can show that the individual failed to take steps that it is reasonable for a person in that position to take to prevent a regulatory breach from occurring.

     

    Under the Certification Regime, relevant firms must assess and certify (at least annually) the fitness and propriety of employees deemed capable of causing significant harm to the firm or any of its customers or those that could risk the integrity of financial markets.

     

    Other reforms of note to the SM&CR include: application of conduct rules to NEDs; removing an inflexible provision that would require banking sector firms to report all known/suspected breaches of rules of conduct by any employees subject to those rules to the regulator; greater powers to make transitional arrangements, vary time limits on senior manager approvals and allow separate statements of responsibility to be sent to the PRA and FCA.

    In May 2016, The British Bankers' Association and the Association for Financial Markets in Europe published a joint letter addressed to the FCA, calling on the FCA to exclude individuals with overall responsibility for the legal function from the scope of the senior managers regime.

    In March 2017 the PRA/FCA issued a joint press release, in which the regulators indicated that further consultations on the extension of the regime to the rest of the industry would take place in Q2 2017.

    Publications by date:

    June 2013

    The Parliamentary Commission for Banking Standards (PCBS) published its report Changing Banking for Good, setting out recommendations for legislative and other measures to improve professional standards and culture in the UK banking industry.

    18 December 2013

    The Banking Reform Act 2013 was enacted.

    March 2015

    PRA issued Policy Statement PS3/15 that sets out a first set of final rules to implement the Senior Managers Regime and the Certification Regime.

    July 2015

    FCA publishes Consultation Paper CP15/22 setting out final rules and consulting on extending the Certification Regime to wholesale market activities.

    22 July 2015

    HM Treasury laid the section 71A Financial Services and Markets Act 2000 order (extending the definition of ‘relevant authorised person’) before Parliament.

    August 2015

    PRA issues Policy Statement PS20/15 that includes final and near-final rules on the application of the Senior Managers Regime, Certification Regime and Conduct Rules to UK branches of non-EEA banks and PRA-designated investment firms (non-EEA branches); FCA publishes Feedback Statement FS15/3 providing near-final rules in anticipation of secondary legislation that will extend the statutory elements of the regime to incoming branches.

    18 September 2015

    PRA published Consultation Paper CP35/15 (FCA CP15/29) which includes proposed amendments to forms for the new individual accountability regimes.

    14 October 2015

    First reading of the Bank of England and Financial Services Bill in the House of Lords.

    15 October 2015

    HM Treasury published policy paper – ‘Senior Managers and Certification Regime: extension to all FSMA authorised persons’.

    4 November 2015

    The Financial Services and Markets Act 2000 (Relevant Authorised Persons) Order 2015was been published.

    11 November 2015

    A joint consultation by the FCA and PRA was launched - FCA CP15/37, PRA CP41/15 - regarding proposed changes to the Senior Insurance Managers' Regime (SIMR) for Swiss general insurers. The PRA initially excluded Swiss general insurers from the application section of its rules for the SIMR, as it was awaiting completion of the EU’s negotiation on an update to the Swiss Treaty Agreement (No. 91/370/EEC). Although the negotiation is not complete, the PRA wished to have interim rules in place ahead of time.

    19 November 2015

    The FCA/PRA review into the failure of HBOS Groupwas published. The review concluded that ultimate responsibility for the failure of HBOS rested with the Board and senior management.

    6 January 2016

    The PRA and FCA launched separate consultations - FCA CP16/1, PRA CP1/16 - regarding amendments to the SM&CR to reflect the cancellation of the coming into force of Section 64B(5) of FMSA. The PRA also published updated SS28/15 to take into account the proposed removal of sections 64B(5), 66B(5) and 66B(6) of FSMA.

    27 January 2016

    FCA published a press release in which it acknowledged the uncertainty regarding overall responsibility for firms' legal function and outlined the steps to address this (future consultation etc.).

    4 February 2016

    FCA published PS16/3: Strengthening accountability in banking: Feedback on CP15/22 and CP15/31; final rules on extending the certification regime to wholesale market activities and interim rules on referencing.

    8 February 2016

    Grandfathering deadline.

    15 February 2016

    Grandfathering provisions for current approved persons took effect.

    PRA and FCA published a joint statement PS5/16:Strengthening accountability in banking and insurance: Implementation of SM&CR and SIMR; and PRA requirements on regulatory references.

    2 March 2016

    PRA published PS9/16 Strengtheningindividual accountability in banking: responses to CP1/16 and the Certification Part of CP29/15.

    7 March 2016

    Senior Manager and Certification Regimes entered into force for banks, building societies, credit unions and PRA-regulated investment firms.

    9 May 2016

    The Bank of England and Financial Services Act 2016 (Commencement No. 1) Regulations 2016/’569 (C. 38) - These Regulations bring into force on 10 May 2016 subsections (1), (2)(e), (f) and (g) and (3)(e), (f) and (g) of section 25 (misconduct) of the Bank of England and Financial Services Act 2016 (c. 14). These are the first commencement regulations made under this Act. Section 25 of the Act amends ss 66A and 66B FSMA. Subsections (2)(e), (f) and (g) and (3)(e), (f) and (g) change the requirements for establishing that a senior manager is guilty of misconduct in relation to disciplinary proceedings that can brought by the regulators.

    The Financial Services (Banking Reform) Act 2013 (Commencement No. 11) Order 2016/568 (C. 37) - This Order brings into force on 10th May 2016 s32 of the Financial Services (Banking Reform) Act 2013 (c. 33) so far as that section is not already in force. This section relates to the regulation of persons performing functions in relation to financial services firms. This is the eleventh commencement order to be made under the Act.

    10 May 2016

    The British Bankers' Association and the Association for Financial Markets in Europepublished a joint letter addressed to the FCA, calling on the FCA to exclude individuals with overall responsibility for thelegal function from the scope of the senior managers regime.

    8 June 2016

    Bank of England and Financial Services Act 2016 - UK Statutory Instrument published (The majority of provisions enter into force on 6 July 2016 (including certain provisions relating to the senior managers and certification regime)).

    1 September 2016

    FCA notification of conduct rule breaches or 'Form H' reporting window opened and will close on 31 October 2016. Firmsmust use theform to report any breaches where disciplinary action has been taken or commenced, during the timeframe from 7 March 2016 to 31 August 2016.

    28 September 2016

    FCA published a number of documents in relation to the SM&CR regime -CP16/25,CP16/26, CP16/27, CP16/28, DP16/4,and PS16/22.

    PRA published a number of documents in relation to the SM&CR regime - CP34/16, CP35/16, CP33/16, and PS 26/16.

    July 2018

    The FCA published a policy statement on extending the SM&CR to FCA solo-regulated firms (PS18/14) and its near-final rules, summarising the feedback it received from 2017 consultation papers CP17/25 (Part 1) and CP17/40 (Part 2). Insurance firms should read policy statement PS18/15 instead.

    23 January 2019

    The FCA held an open consultation on optimising the SM&CR based on its proposals in consultation paper CP19/4. The consultation closed on 23 April 2019.

    26 July 2019

    The FCA published a policy statement with its final rules on extending the SM&CR to FCA solo-regulated firms (PS19/20) including feedback received to consultation paper CP19/4.

    27 September 2019

    The PRA published a policy statement on strengthening individual accountability: resolution assessments and reporting amendments (PS20/19). This sets out feedback to its June 2019 consultation paper (CP12/19) on changes to the prescribed responsibility for recovery and resolution under the SM&CR.

    11 October 2019

    FCA published a new webpage providing more information on the submission of Form K, which is the conversion notification form under the SM&CR.

    Further past dates are accessible via the news feed on the topic page here

    Reform Tracker - sector future dates:
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  • Subject:
    Brexit
    Status:
    A referendum on Britain's membership of the European Union was held on 23 June 2016. On 24 June 2016 it was announced that the UK voted to leave the EU. The earlier "UK-EU settlement" agreed in February 2016 is no longer valid following a vote to leave. The Government gave notice to the European Commission in March 2017 to 'trigger' Article 50 and begin the process.
    Last updated:
    20/11/2019
    Overview/summary:

    A referendum on the United Kingdom's membership of the European Union was held on 23 June 2016. On 24 June 2016, it was announced that the UK voted to leave the EU. The earlier "UK-EU settlement" agreed in February 2016 is no longer valid following a vote to leave.

    Following the referendum a large number of publications have been issued - please click here to access these on the Brexit & EU reform page.

     

    Publications by date:

    March 2011

    People's Pledge campaign for a referendum is launched.

    8 September 2011

    A petition calling for a referendum on EU membership, signed by 100,000 people, is handed into Downing Street.

    24 October 2011

    The motion calling for a referendum on EU membership is defeated in the Commons by 483 votes to 111.

    22 January 2013

    David Cameron says that if the Conservatives win the next election they would seek to renegotiate the UK's relationship with the EU and then give the British people the "simple choice" in 2017 between staying in the EU under those terms or leaving the EU.

    5 July 2013

    The Conservative backbencher James Wharton brings forward a bill to enshrine in law his party's pledge to hold an in/out referendum in 2017. It passes its second reading by 304 votes to 0. It goes on to clear all its Commons hurdles before falling in the House of Lords.

    26 October 2014

    Conservative backbencher Bob Neill brings back the EU Referendum Bill as a Private Member's Bill. It passed its first Parliamentary hurdle with no opposition.

    28 October 2014

    The Conservatives accuse their coalition partners the Lib Dems of blocking the EU Referendum Bill after the two parties fail to reach an agreement which would have allowed the bill to get the necessary parliamentary time to become law.

    8 May 2015

    The Conservatives win a majority in the House of Commons in the general election - theypledge to hold a referendum on the UK's membership of the EU by the end of 2017.

    February 2016

    Following a meeting of the European Council, the UK/EU settlement was published.

    This was followed by HMG's publication of the 'best of both worlds' report and the announcement that the referendum is to take place on 23 June 2016.

    24 June 2016

    Following the referendum of 23 June 2016, the UK announced that it is to leave the EU.

    08 March 2018

    Department for exiting the EU (DExEU) published a statement guaranteeing. Gibraltar financial services firm’s access to UK markets as now until 2020.

    19 March 2018

    UK and EU publish draft withdrawal agreement highlighting text agreed by negotiators. The entire part dealing with the transition period is highlighted as agreed text.

    04 April 2018

    The House of Commons Exiting the European Union Committee (Committee) published a report on the future UK-EU relationship. This report looks at the EU's existing relationships with other countries (Canada, Ukraine, Switzerland, Norway and Turkey), and at trading on World Trade Organization (WTO) terms in the absence of a trading agreement.

    7 June 2018

    On 7 June, HM Treasury updated the EU Scrutiny Committee on implications of Brexit negotiations on UK representation in ESAs.

    26 June 2018

    The European Union (Withdrawal) Act 2018 received royal assent.

    3 July 2018

    The European (Withdrawal) Act (2018) (Commencement and Transitional Provisions) Regulations 2018 were made

    12 July 2018

    The government's white paper on the future UK-EU relationship, published on 12 July 2018, reiterates that the government's policy is for the UK to leave the single market and the customs union, and gain flexibility to conclude new international trade agreements, making particular mention of agreements on trade in services.

    16 July 2018

    HM Treasury published a draft version of the Consumer Credit (Amendment) (EU Exit) Regulations 2018, together with a draft explanatory memorandum.

    16 July 2018

    Draft version of the Financial Regulators' Powers (Technical Standards) (Amendment etc) (EU Exit) Regulations 2018 was published on legislation.gov.uk, together with a draft explanatory memorandum.

    16 July 2018

    HM Treasury published a draft version of the Friendly Societies (Amendment) (EU Exit) Regulations 2018, together with an explanatory memorandum

    15 August 2018

    HM Treasury published a draft version of the Deposit Guarantee Scheme and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018, together with an explanatory information document.

    28 August 2018

    The House of Commons Library published a briefing paper which looks at proposals in the government’s white paper on the future UK-EU relationship published on the 12 July 2018.

    29 August 2018

    The government has published a technical notice on trade remedies if no Brexit deal is reached.

    5 September 2018

    A draft version of the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018, together with an explanatory memorandum, were published on legislation.gov.uk.

    14 September 2018

    The FCA published a direction clarifying how an EEA market operator can make an application to become a recognised overseas investment exchange (ROIE).

    5 February 2019

    Bank of England and ESMA have reached agreement on memorandums of understanding on the recognition of UK central counterparties and central securities depositories in the event of a no-deal Brexit.

    19 February 2019

    EIOPA has published recommendations providing guidance on the treatment of UK insurance undertakings and distributors with regard to cross-border services in the EU in the event of a no-deal Brexit.

    19 March 2019

    ESMA has published a statement outlining its approach, in the event of a no-deal Brexit, to the application of the trading obligation for shares under article 23 of the Markets in Financial Instruments Regulation (600/2014) (MiFIR) in the absence of a European Commission equivalence decision in respect of the UK.

    20 March 2019

    Council of the EU and the European Parliament have decided not to object to Delegated Regulations that exempt the Bank of England from certain requirements under four EU Regulations after Brexit:

    (i) Market Abuse Regulation (596/2014) (MAR);

    (ii) Markets in Financial Instruments Regulation (600/2014) (MiFIR);

    (iii) Regulation on reporting and transparency of securities financing transactions ((EU) 2015/2365) (SFTR); and

    Regulation on OTC derivative transactions, central counterparties and trade repositories (648/2012) (EMIR).

    11 April 2019

    The European Commission adopted a proposal for a Council Decision amending Council Decision (EU) 2019/274 on the signing, on behalf of the European Union and of the European Atomic Energy Community, of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community together with the text of the withdrawal agreement itself.

    11 April 2019

    The UK government and the European Commission agreed technical amendments to the draft withdrawal agreement on 11 April 2019, which include bringing the commencement date in line with the agreement to extend the Article 50 period, which postponed the UK's exit from the EU.

    9 July 2019

    The Economic and Financial Affairs Council formally adopted a Regulation on measures concerning the implementation and financing of the general budget of the Union in 2019 in relation to the withdrawal of the UK from the EU.

    The Council Regulation will now be published in the Official Journal and will enter into force on the following day. It will apply from the date following that on which the Treaties cease to apply to the UK. However, it will not apply if a withdrawal agreement has entered into force by the withdrawal date.

    4 September 2019

    The European Commission published a Communication (COM (2019) 394) on finalising preparations for the withdrawal of the UK from the EU. This is the Commission’s sixth Communication on the matter. In the event of a “no-deal” Brexit, the UK would become a third country and all EU law would cease to apply to and in the UK without any transitional arrangements.

    9 September 2019

    The Financial Services (Implementation of Legislation) Bill 2017-19 fell as it did not receive Royal Assent in the session in which it was introduced.

    12 September 2019

    The FCA published the first addendum to the Memorandum of Understanding it entered into with the Hong Kong Securities and Futures Commission in October 2018 on the mutual recognition of covered funds between the UK and Hong Kong.

    16 September 2019

    The FCA published a speech by Andrew Bailey, FCA Chief Executive, on the status of preparations for a no-deal Brexit and the remaining issues that require further action, including:

    -The share trading obligation and the derivatives trading obligation.

    -Clearing.

    -Uncleared derivatives.

    -Progress on contract repapering

    27 September 2019

    Ofgem published a letter outlining no-deal Brexit REMIT contingency arrangements. This summarises the arrangements as set out in Ofgem’s letter dated 1 March 2019, which covered monitoring and enforcement, registration, and data reporting.

    17 October 2019

    HM Treasury, the FCA, the PRA and the Bank of England published a memorandum of understanding on equivalence and exemptions. This sets out how the parties expect to co-ordinate the discharge of their respective functions relating to equivalence and exemption determinations, and the provision of information or advice relating to these determinations.

    29 October 2019

    European Council and the UK formally agreed a third extension to the Article 50 period. European Council Decision (EU) 2019/1810 formally extends the Article 50 period by up to three months. This means that the UK will leave the EU at the end of the month in which ratification of the revised withdrawal agreement is concluded, up to 23:00 on 31 January 2020 (UK time).

    30 October 2019

    European Union (Withdrawal) Act 2018 (Exit Day) (Amendment) (No. 3) Regulations 2019 came into force.

    The regulations amend the definition of “exit day” in the European Union (Withdrawal) Act 2018 to 31 January 2020 at 23:00.

    31 October 2019

    FCA published revised directions for the following:

    -EEA firms with passports and Treaty firms;

    -EEA collective investment schemes;

    -Authorised payment institutions and EEA registered account information service providers;

    -EEA alternative investment funds; and

    -E-money institutions.

    Further past dates are accessible via the RegZone newsfeed here.

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  • Subject:
    Financial Transaction Tax (FTT)
    Status:
    Sustained disagreement amongst key players continues to threaten this controversial measure. An ECOFIN report (June 2017) noted that further work at the Council and its preparatory bodies is still required, before a final agreement on this dossier can be reached.
    Last updated:
    02/01/2018
    Overview/summary:

    The Directive implementing enhanced cooperation in the area of financial transaction tax (FTT) would impose a tax on financial transactions (including sales, stock lending, and derivatives contracts; but excluding primary market operations) in financial instruments (including shares, bonds, derivatives, and units in funds; but excluding non-MiFID instruments such as loans, mortgages and insurance contracts) by financial institutions established in FTT states. It would also apply to any such transactions in instruments issued in an FTT state (e.g. French shares). The tax is levied per party, not per transaction. FTT would be a national tax, with rates set and collected at a national level (albeit with statutory minimum rates), according to pan-EU rules.

     

    The FTT Directive was proposed by the European Commission in 2013, after a previous 2011 proposal was rejected by several EU Member States; the 2013 proposal would be implemented by 11 Member States only (i.e. ‘under enhanced co-operation’). This is controversial as parties to transactions outside the ‘FTT zone’, such as parties located in the UK, may become liable to pay this tax. The UK lodged a legal challenge to the FTT at the ECJ, but this was defeated as it was considered premature.

     

    Following a meeting of the 11 pro-FTT nations on 12 September 2015, the German Finance Minister Wolfgang Schauble declared the intention of the 11 pro-FTT nations to push ahead with the tax, and their hope that in time other nations (such as the UK) would join. This announcement represents a shift from the downbeat silence surrounding the FTT, but still no concrete progress has been made. Schauble acknowledged that an FTT adopted by only 11 of the 28 EU countries 'sat awkwardly' with plans for a Capital Markets Union.

    The ECOFIN meeting of December 2015 saw numbers of participating members drop to 10 (Estonia is not participating). The 10 members have provisionally agreed to move forward with the plans.

    In May 2016 the Belgian finance minister indicated that the country may withdraw support for the FTT (9 Member States must back the FTT before it can progress and pass into law).

    A note published by the Council of the EU - following an ECOFIN meeting of 17 June 2016 - noted that work on FTT would continue in the second half of 2016.

    In January 2017 the European Parliament issued a press release in which it stated that details of the FTT could be available by mid-2017.

    In April 2017 a written question was submitted to the European Parliament regarding the state of play of the FTT in light of Brexit and forthcoming elections in certain Member States (awaiting response).

    The FTT is on hold, with a June 2017 ECOFIN report noting that further work at the Council and its preparatory bodies is still required, before a final agreement on this dossier can be reached.

    Publications by date:

     

    28 September 2011 European Commission publishes draft Directive on a common system of financial transaction tax and amending Directive 2008/7/EC concerning indirect taxes on the raising of capital.
    October 2012 11 member states submit requests to European Commission to introduce FTT via enhanced co-operation.
    12 December 2012 European Parliament adopts legislative Resolution on proposal on enhanced cooperation in area of FTT.
    25 January 2013 Council Decision authorises enhanced cooperation in area of creation of FTT.
    14 February 2013 Commission adopts proposal for a Directive on FTT to be implemented under enhanced co-operation.
    18 June 2013 EP ECON Committee voted on the proposal for a Council Directive implementing enhanced co-operation in the area of FTT.
    3 July 2013 EP plenary session adopted legislative Resolution on the proposal for a Council Directive implementing enhanced co-operation in the area of FTT.
    6 September 2013 Legal Service of the Council challenged the legality of the proposal for a Directive implementing enhanced co-operation in the area of FTT.
    22 October 2013 European Commission highlighted proposal for a Directive as a priority item for adoption in 2014 annual Work Programme.
    4 February 2014 European Parliament debated European Commission and Council statements on need for quick adoption of FTT.
    30 April 2014: The ECJ rejected the UK's legal challenge to the FTT.
    10 November 2014 Note from President to the Council of the EU was issued including several proposals and drawing attention to the fact that little progress has been made.
    27 January 2015 10 of the 11 pro-FTT EU member states issued a Joint Statement in which they reiterated their commitment to reach an agreement on FTT by 1 January 2016. This date appears to have slipped to 1 January 2017.
    25 March 2015 In its plenary session the EP adopted a non-legislative Resolution on the Annual Tax Report, in which the lack of progress on FTT has been highlighted.
    12 September 2015 Following a meeting of the 11 pro-FTT nations German Finance Minister Wolfgang Schauble declared the intention of the 11 pro-FTT nations to push ahead with the tax, and their hope that in time other nations (such as the UK) would join.
     November 2015 Council of the EU publishes a note addressing the state of play regarding FTT.
    December 2015 ECOFIN meeting where the Member States that have agreed to participate in the financial transaction tax (FTT) provided an update on their progress. The number of Member States involved has dropped to 10 (Estonia will not participate). The UK continues to oppose FTT.
     6 June 2016 Council of EU published an update regarding FTT, noting, among other things, that Estonia had formally withdrawn.
    20 June 2016 Council of the EU published the outcome of an ECOFIN meeting (17 June) - among other items, the document included a note on FTT. Work on FTT is to continue in the second half of 2016.

    Further past dates are accessible via the RegZone FTT newsfeed here.

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  • Subject:
    Markets in Financial Instruments Directive (MiFID II)
    Status:
    Member States were required to transpose MiFID (recast) in domestic legislation by 3 July 2017; MiFID II/MiFIR application date is 3 January 2018.
    Last updated:
    05/04/2019
    Overview/summary:

    The recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II), with its accompanying Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR), is a major new piece of legislation, broadly covering securities trading (including emissions trading, and bringing some OTC derivatives contracts on to new regulated trading venues), investor protection (including rules on advice and the sale of investment products), new reporting requirements, and new supervisory powers for regulators. The rapid increase in the ETF market, and the rise in the number of synthetic ETFs, has prompted regulatory attention at international, EU and UK level. MiFID II will introduce pre-trade and post-trade reporting requirements for ETFs.

     

    The recast directive and the regulation entered into force on 2 July 2014.The recast directive had been expected to be implemented by member states by 3 January 2017. There had been discussion at European level regarding wholesale delay of the regime by up to one year. On 10 February 2016, the European Commission proposed a one year extension to entry into application of the regime. The bulk of provisions within the regulation will apply from the implementation deadline ( deadline to be confirmed) (certain provisions in Article 55 applied immediately from 2 July 2014 and others under Article 37 will apply from 2019).

     

    On 18 February 2016 the rapporteur published a note expressing disappointment regarding ESMA and the Commission's failure to deliver RTS and delegated acts. On 28 April, COREPER agreed (on behalf of the Council) its negotiating stance aimed at extending the dates of MiFID transposition by one year. COREPER asked the Netherlands Presidency to start negotiations with the European Parliament as soon as possible. In June 2016, the legislative package giving effect to MiFID II delay (as well as amending key dates in MiFIR, MAR, and CSDR) was published in the OJ.

     

    It was agreed that there is to be a one-year delay regarding MiFID II. The revised dates are:

     3 July 2017 - date by which Member States must transpose MiFID (recast) in domestic legislation;

     3 January 2018 - MiFID/MiFIR application date.

    Publications by date:

    1 November 2007

    MiFID I comes into force along with its implementing Directive and implementing Regulation.

    20 October 2011

    European Commission publishes MiFID II legislative proposal.

    December 2012

    ESMA published consolidated guidelines on ETFs and other UCITS issues (ESMA/2012/832).They incorporate ESMA's existing guidelines on ETFs and on repo and reverse repurchase agreements published last year. In particular the guidelines cover information that should be given to investors about UCITS ETFs.

    June 2013

    IOSCO published final report on 9 principles for the regulation of ETFs.

    14 January 2014

    Informal political agreement in trialogue reached on the proposed MiFID II and MiFIR.

    13 April 2014

    MiFID II/MiFIR adopted by Council of EU.

    15 April 2014

    MiFID II/MiFIR adopted by European Parliament at plenary vote.

    12 June 2014

    MiFIDII/MiFIR published in Official Journal.

    3 July 2014

    MiFID II entered into force and MiFIR legally entered into force.

    August 2014

    ESMA published revised guidelines on ETFs and other UCITS issues. Guidelines focus on: disclosure requirements, efficient portfolio management (EPM) techniques, the use of financial derivative instruments, the criteria for financial indices in which UCITS may invest.

    1 October 2014

    ESMA guidelines regarding ETFs apply.

    19December 2014

    ESMA published final technical advice and launched a consultation on its draft RTS regarding the implementation of MiFID II and MiFIR.

    22 December 2014

    Joint Committee consultation on guidelines for cross-selling practices produced.

    23 March 2015

    ESMA published final report containing draft technical standards Article 10a(8) of MiFID on the assessment of acquisitions and increases in qualifying holdings in investment firms.

    1 April 2015

    ESMA announced two projects. The Instrument Reference Data Project will provide a central facility in relation to instrument and trading data and the calculation of the MiFIR transparency and liquidity thresholds and the Trade Repositories Project will provide a single access point to trade repositories data under EMIR.

    23 April 2015

    ESMA published consultation with draft guidelines for assessment of knowledge and competence.

    8 May 2015

    ESMA has published guidelines with regard to the definitions of commodity derivatives under C6 and C7 of Annex I of the current MiFID I, until MiFID II comes into force on 3 January 2017, when the EC issues its delegated acts in relation to these definitions.

    29 June 2015

    ESMA publishes final report which covers the majority of standards on investor protection topics which ESMA is expected to develop. States that the remaining draft technical standards will be published by the end of the year.

    7 August 2015

    ESMA guidelines on the application of the definitions in Sections C6 and C7 of Annex I of Directive 2004/39/EC (MiFID) apply from this date (see 8 May 2015).

    31 August 2015

    ESMA published consultation paper, which covers: the suspension and removal of financial instruments from trading on a trading venue, the notification and provision of information for data reporting services providers and the weekly aggregated position reports for commodity derivatives, emission allowances and derivatives. It includes texts of draft implementing standards.

    28 September 2015

    ESMA published 28 final proposed technical standards in AnnexI of aFinal Report. The Commission has three months to decide whether to endorse these technical standards.

    4 November 2015

    ESMApublished consultation responses regarding draft technical standards.

    5 November 2015

    ESMA launched a consultation regarding indirect clearing arrangements under EMIR/MiFIR.

    10 November 2015

    ESMA released text of the speech delivered by Maijoor regardin (among other topics) the proposed delay in relation to MiFID II regime implementation for Member States.

    27 November 2015

    European Parliament released a statement on MiFID II delay and indicated that it may accept a one-year delay so long as the Commission finalises the implementing legislation promptly.

    30 November 2015

    ESMA issues Final Report on guidelines on complex debt instruments and structured
    depositsunder MiFID II.

    11 December 2015

    ESMA draft implementing technical standards published. The final report covers: standard forms, templates and procedures for cooperation arrangements in respect of a trading venue whose operations are of substantial importance in a host Member State; format and timing of the communications and the publication regarding the suspension and removal of financial instruments from trading on a regulated market, an MTF or an organised trading facility═ż various reporting items and forms, templates and procedures.

    18 December 2015

    ESMA publishedfinal guidelines (as required under Article 25(9), which specify the criteria for the assessment of the necessary knowledge and competence requirements of investment firms’ staff. The guidelines come into effect on 3 January 2017.

    22 December 2015

    ESMA published guidelines on cross-selling practices. The guidelines apply from 3 January 2017.

    23 December 2015

    ESMA launched consultation paper regarding guidelines on transaction reporting, reference data, order record keeping andclock synchronisation. The paper
    provides clarifications on the application of the relevant MiFID II requirements requested by market participants during earlier consultations. ESMA notes that it may need to add further clarifications to this guidance as new issues raised
    by stakeholders arise.

    27 January 2016

    The ESAs published a joint letter on cross-selling of financial products. The letter raised concernsregardingspecific legal issues in the existing regulatory framework that have been revealed following the ESAs’ recent work on guidelines on cross-selling practices.

    10 February 2016

    The European Commission has proposed a one year extension to the entry into application of the MiFID II regime.

    18 February 2016

    The European Parliament published two draft reports regarding the delay: one concerning MiFID II, and the other dealing with MiFIR, MAR, and CSDR.

    The rapporteur published a note in which he expressed his disappointment with ESMA and the Commission's inability to deliver RTS and delegated acts and noted that the transposition deadline would be delayed one year in line with the delays proposed.

    17 March 2016

    European Parliament's Rapporteur for MiFID II - Markus Ferber MEP - issued a press release regarding ESMA's draft RTS (non-equity transparency, ancillary activity exemption and position limits). These have been sent back to ESMA to align them more closely with the European Parliament's position.

    Ferber described the latest drafts as "far from being acceptable to the European Parliament" and he expects "ESMA to revisit those technical standards swiftly, thoroughly and to adapt them in line with the European Parliament's remarks".

    22 March 2016

    ESMA published texts of letters it sent to the European Commissionconcerning its assumptions with regard to the standards in relation to position limit, ancillary activity and non-equity transparency. ESMA concluded that it will immediately start work on ESMA Opinions on proposedCommission amendments unless it receives a written response by 29 March 2016 stating that any of the assumptions are incorrect.

    24 March 2016

    UK: PRA launched CP9/16: Implementation of MiFID II: Part 1 regarding transposition of MiFID recast and MiFIR.

    4 April 2016

    ESMA published Risk assessment on the temporary exclusion of exchange traded derivatives from Articles 35 and 36 of MiFIR.

    7April 2016

    ECON Committee voted to delay MiFID II by one year.

    European Parliament's Rapporteur for MiFID II - Markus Ferber, MEP - issued a statement regarding the vote on theone-year postponement to MIFID II.

    8 April 2016

    ESMA issued a Q&A document:

    ESMA/2016/590: Q&A The provision of CFDs and other speculative products to retail investors.

    European Commission adopted a Delegated Regulation:

    Delegated Regulation supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments... and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits has been adopted.

    ESMA published responses to a 2015 consultation: Guidelines on transaction reporting reference data order record keeping and clock synchronisation.

    22 April 2016

    European Commission published three letters that DG FISMA addressed to ESMA regarding certain draft regulatory technical standards (RTS). Specifically, the... letters relate to: draft RTS 20 on the criteria to establish when an activity is considered to be ancillary to the main business pursuant to Article 2(4) MiFID II; draft RTS 21 on the application of position limits to commodity derivatives pursuant to Article 57(3) and (12) of MiFID II; draft RTS 2 on transparency requirements in respect of bonds, structured finance products, emission allowances and derivatives under Articles 9 and 11 MiFIR.

    25 April 2016

    European Parliament published two draft final reports on MIFID/MiFIR have been published (dated 11 April 2016) setting out new (marked up) text and which postpone the transposition dates of the Directive and Regulation by a year.

    26 April 2016

    Commission Delegated Regulation of 15 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational... requirements and operating conditions for investment firms and defined terms for the purposes of that Directive has been adopted.

    27 April 2016

    European Commission has published three undated letters to ESMA regarding its decision to endorse draft regulatory technical standards on the non-equity transparency, the ancillary test and position limits provided that certain changes are made.

    28 April 2016

    European Commission - COREPER agreed, on behalf of the Council, its negotiating stance aimed at extending by one year the dates of transposition and application of new securities market rules. COREPER has asked the Netherlands presidency to start negotiations with the European Parliament as soon as possible, in order to enable adoption at first reading of a regulation enacting the extension.

    3 May 2016

    European Commission published the texts of ECB Opinions in relation to MiFID, MAR and CSRD.

    ESMA published two Opinions and related annexes in relation to regulatory standards. These concern the phase-in regime for non-equity transparency and position limits for commodity derivatives.

    5 May 2016

    ESMAhas published a request for amending its draft regulatory technical standard on transaction reporting (RTS 22) under MiFIR , originally submitted in September 2015. ESMA notes that there was an “unintended omission” and that it concerned the list of instances that are not considered to be reportable transactions for the purpose of Article 26 of MiFIR.

    18 May 2016

    COREPER has approved, on behalf of the European Council, an agreement with the European Parliamenton a one-year delay to new securities market rules. The deadline for the member states to transpose MIFID II into national legislation will be set for 3 July 2017 and the date of application of both MIFID II and MIFIR will be set for 3 January 2018. It is stated that amendments were agreed with regard to: trading on own accounts, package transactions, alignment with the SFT Directive and the date of application of certain provisions of a regulation on market abuse.

    20 May 2016

    European Commission adopted:

    Commission Delegated Regulation (EU) …/... of 18.5.2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards for the ratio of unexecuted orders to transactions in order to prevent disorderly trading conditions;

    Commission Delegated Regulation (EU) …/... of 18.5.2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and... of the Council with regard to definitions, transparency, portfolio compression and supervisory measures on product intervention and positions.

    24 May 2016

    European Commission adopted: Delegated Regulation supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the suspension and removal of financial instruments from trading.

    25 May 2016

    European Commission has adopted a Delegated Regulation supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to... regulatory technical standards for the admission of financial instruments to trading on regulated markets (C(2016) 3017).

    27 May 2016

    Commission Implementing Regulation (EU) 2016/824 of 25 May 2016 laying down implementing technical standards with regard to the content and format of the description of the functioning of multilateral trading facilities and organised trading facilities and the notification to the European Securities and Markets Authority according to Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments has been published in the Official Journal.

    31May 2016

    ESMA issued an Opinion in response to a letter sent by the Commission asking to amend its draft RTS 20 under MiFID/MiFIR. This provides criteria to establish when a non-financial firm’s commodity derivatives trading activity is considered to be ancillary to its main business.

    European Commission adopted Delegated Regulations:

    Commission Delegated Regulation (EU) …/... of 26.5.2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on criteria for determining whether derivatives subject to the clearing obligation should be subject to the trading obligation;

    Commission Delegated Regulation (EU) …/... of 26.5.2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards for the determination of a material market in terms of liquidity in relation to notifications of a temporary halt in trading

    2 June 2016

    European Commission adopted three Delegated Regulations:

    Commission Delegated Regulation (EU) …/... of 2.6.2016 supplementing Regulation (EU) No... 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on access in respect of benchmarks;

    Commission Delegated Regulation (EU) …/... of 2.6.2016 supplementing Directive2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards on the authorization, organisational requirements and the publication of transactions for data reporting services providers;

    Commission Delegated Regulation (EU) …/... of 2.6.2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards on the specification of the offering of pre-and post-trade data and the level of disaggregation of data.

    6 June 2016

    European Commission has adopted Commission Delegated Regulation (EU) …/...of 6.6.2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on requirements to ensure fair and non-discriminatory co-location services and fee structures.

    7 June 2016

    European Commissionhas adopted a Commission Delegated Regulation regarding RTS on level of accuracy of business clocks under MiFID II.

    European Parliament issued a press release "Parliament gives firms a further year to implement financial legislation" concerning the revised MiFID II implementation deadline.

    8 June 2016

    European Commission adopted two Delegated Regulations on RTSunder MiFID II (data to be published by execution venues on the quality of execution of transactions and annual publication by investment firms of information on the identity of execution venues and on the quality of execution).

    European Parliament published provisional texts regarding MiFID II delay. Specifically: a legislative proposal for a Directive amending the MiFID II Directive as regards certain dates and a legislative proposal for a Regulation amending MiFIR, the Market Abuse Regulation and the Regulation on improving securities settlement and regulating central securities depositories(CSDR) as regards certain dates.

    10 June 2016

    Council of EU published the texts of the legislative package regarding MiFID II postponement:a proposed Directive amending MiFID II and aproposed Regulation amending MiFIR, MAR, and CSDR.

    13 June 2016

    European Commission adopted:

    Delegated Regulation supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards specifying the requirements on market making agreements and schemes.

    Delegated Regulation on RTSon thevolume cap mechanism and the provision of information for the purposes of transparency and other calculations

    Delegated Regulation on RTS on the direct, substantial and foreseeable effect of derivative contracts within the Union and the prevention of the evasion of rules and obligations

    15 June 2016

    Council of the EU published two I/A Notes in respect of the legislation which calls upon the Permanent to confirm its agreement with the European Parliament’s position as agreed on 7 June 2016 – if the Council approves the European Parliament's position, the legislative acts will be adopted.

    17 June 2016

    Council of the EUissued apress release confirming that it had enacted a one-year delay in the implementation of MiFID/MiFIR.

    21 June 2016

    ESMA issued:

    The text of a statement given by Steven Maijoor at ECON on 21 June 201, in which he discusses ESMA’s Opinions on the three technical standards (on transparency measures for non-equity instruments, position limits for commodity derivatives, and the definition of what constitutes ancillary activities for non-financial firms) which the EC has advised ESMA it intends to endorse with amendments.

    An updated document regarding waivers from pre-trade transparency.

    27 June 2016

    Corrigendum in relation to numbering in Article 4(1) MiFID II was issued.

    European Commission Delegated Regulation in relation to MiFID II were adopted:

    Delegated Regulation in relation to regulatory technical standards on clearing access in respect of trading venues and central counterparties has been adopted;

    Delegated Regulation in relation to regulatory technical standards for the maintenance of relevant data relating to orders in financial instruments has been adopted.

    28 June 2016

    Corrigendum in relation to MiFIR published.

    29 June 2016

    European Commission Delegated Regulations were adopted:

    Delegated Regulation with regard to regulatory technical standards specifying information to be notified by investment firms, market operators and credit institutions has been adopted;

    Delegated Regulation with regard to regulatory technical standards specifying the obligation to clear derivatives traded on regulated markets and timing of acceptance for clearing has been adopted.

    30 June 2016

    The legislative package giving effect to MiFID II postponement was published in the OJ.

    7 March 2019

    ESMA published a statement outlining its approach, in the event of a no-deal Brexit, to the application of key provisions in the MiFID II Directive, the Markets in Financial Instruments Regulation and the Benchmarks Regulation.

    Further past dates are available via the news feed on the RegZone MiFID II page here.


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  • Subject:
    Investor Compensation Schemes Directive (ICSD)
    Status:
    The proposed Investor Compensation Schemes Directive (ICSD) has been withdrawn. Following the launch of the Capital Markets Union initiative, there have been calls to reintroduce an updated Investor Compensation Scheme Directive.
    Last updated:
    22/12/2016
    Overview/summary:

    The Investor Compensation Schemes Directive (97/9/EC) (ICSD) was based on the earlier Deposit Guarantee Schemes Directive (DGSD), and required Member States to establish compensation schemes for certain retail investment products. In 2010 the European Commission proposed to amend ICSD; this would, inter alia, align ICSD with MiFID I and the latest DGSD; increase the compensation limit (which would also then be set as a maximum); require Member States to establish ex ante funds; extend compensation to investors affected by failure of depositaries etc; and extend firms' disclosure requirements. The European Parliament subsequently voted for several amendments to ICSD which the Commission declared ‘unacceptable’. This proposed Directive has since been withdrawn.

    This reform tracker item is no longer updated.

    Publications by date:

    26 March 1997 Final of ICSD published in OJ.
    26 September 1998 Member states required to bring in legislation and implementing regulation by date.
    February 2009 European Commission publishes call for evidence on review of application and functioning of ICSD.
    July 2010 Commission publishes legislative proposal for Directive amending ICSD.
    5 July 2011 EP votes in favour of ICSD text as amended.
    12 June 2013 In a statement to the European Parliament the Council stated that the negotiations on revisions to the ICSD were on hold, pending final agreement on the amendments to the Deposit Guarantee Schemes Directive that were also proposed in July 2010.
    13 October 2011 Debated in EP; EP adopted a resolution on Insurance Guarantee Schemes in response to the Commission White Paper at 1st reading/single reading.
    1 February 2012 Commission publishes response to the EP’s text adopted in plenary session.
    18 June 2014 European Commission mentioned in its REFIT Communication the plan to withdraw the proposal for ICSD.
    December 2014 The Commission in an Annex to its work programme for 2015 listed the legislative proposal for amendments to the ICSD among those it has the intention of withdrawing, elaborating that there was no foreseeable agreement and that discussions both at the EP and the Council have been halted.
    7 March 2015 Proposal for amendments to the ICSD was withdrawn as communicated in the Official Journal (2015/C 80/08).

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  • Subject:
    Retail Distribution Review (RDR)
    Status:
    Retail Distribution Review (RDR) rules in force.
    Last updated:
    21/02/2017
    Overview/summary:

    The Retail Distribution Review (RDR) was a UK-specific examination, conducted by the FSA, of the sale of investment products (including life policies, pensions, funds, and other investment schemes) to retail customers by financial advisers. The review began in June 2006, and concluded with new rules on remuneration published in March 2012, and Final Guidance on advice in June 2012. The new rules came into force on 31 December 2012. The main outcomes of RDR were: new training, accreditation and CPD requirements; a new distinction between "restricted" and "independent" financial advice (where, in the latter case, an adviser must consider all retail investment products available on the market); and a ban on receiving commission from product providers, and a requirement to disclose adviser charges to consumers up front.

     

    The first stage of the FCA’s post-implementation review of the RDR (published in December 2014), together with thematic work regarding the disclosure of ongoing services and charges, has concluded that financial advisers are offering investors an increasingly professional service suited to their individual needs. Martin Wheatley, during his tenure as Chief Executive of the FCA, indicated that in 2015 the FCA would undertake a series of next steps in light of the review’s findings and that a further post-implementation review of the rules will take place in 2017.

    Publications by date:

     

    27 February 2012 FSA finalised guidance on distributor-influenced funds and policy statement on legacy assets.
    February 2012 FSA publishes 'Is your firm on track?' and policy statement on legacy assets.
    29 March 2012 FSA final guidance on simplified advice.
    March 2012 FSA policy statement on advisor charging.
    February-April 2012 FSA consultation on independent and restricted advice.
    6 June 2012 FSA finalised guidance on independent and restricted advice.
    June-September 2012 FSA consultation (CP12/12) on platforms and cash rebates.
    September 2012 FSA publishes 'Make sure you’re on track for the RDR'.
    31 December 2012 RDR comes into effect; firms must comply with the final RDR rules by that date.
    26 April 2013 FCA Policy Statement (13/1) on payment to platforms and cash rebates.
    July 2013 FCA publish CP13/4 in response to questions on how to apply RDR rules.
    25 July 2013 FCA publish early review (TR13/5) of how advisory firms implemented some of the core aspects of RDR, finding the majority of firms have made progress and there was a willingness to adapt to the new rules.
    March 2014 FCA publish TR14/5 regarding how firms deliver independent advice (including additional good and poor practice for firms regarding the application of the independence rules).
    April 2014 FCA publish TR14/6 and a short video describing the second set of findings on firms’ disclosure of costs and services.
    June 2014 FCA publish a disclosure assessment template to allow firms to see the criteria assessed during the thematic review.
    July 2014 FCA publish qualitative research that investigated consumer understanding of adviser disclosure documents, ‘Adviser Charging and Scope of Service’, prepared by NMG Consulting.
    September 2014 FCA publish Factsheet 007 Disclosing your firm’s charges and services.
    September 2014 FCA publishes Factsheet 009 providing a two-page summary of the independence rules.
    September 2014 FCA publish Factsheet 010 providing a two-page summary of the adviser-charging rules.
    December 2014 FCA publish post-implementation review of RDR – Phase One.
    January 2015

    FCA publish finalised guidance FG15/1 on retail investment advice.

     4 December 2015 FCA published Quarterly consultation CP15/42 regarding (among other things) changes to RDR forms.
    26 February 2016 FCA published Handbook Notice 30/Instruments - including Retail Distribution Review (Miscellaneous Amendments) Instrument 2016/14.
    16 March 2016 UK House of Commons library published a briefing paper outlining FAMR’s recommendations and explains the background to the RDR; its possible consequences and includes the first independent review of how the RDR has affected the sector two years on.

    Further past dates are accessible via the RDR news feed here.

    Reform Tracker - sector future dates:
    Check the future dates
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