Archives: Financial Services Regulation – UK/EU

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Consultation Document Published on FinTech by European Commission

On March 23, 2017, the European Commission (“EC”) published a Consultation Document entitled “FinTech: A More Competitive and Innovative European Financial Sector.”  The Consultation Document seeks comments regarding the development and regulation of novel financial technologies, including distributed ledger technology (“DLT” or “blockchain”), cloud computing, and artificial intelligence (“AI”).  The EC hopes to obtain feedback … Continue Reading

German Banking Market is on the Move

The German banking market is on the move. This presents opportunities for foreign investors who would like to enter the German financial market. However, in order to acquire an interest in a German financial institution, i.e. credit or financial services institution, an investor has to comply with a couple of specific regulatory requirements. To continue … Continue Reading

The FCA’s Project Innovate: A road to FinTech-success or regulatory cul-de-sac?

Jacqui Hatfield and Melanie Shone have recently published an article in Finance Monthly, examining the performance of the FCA’s Project Innovate. The authors caution that “any new rules, specific to a particular technology, may quickly become obsolete as the pace of development in the FinTech space outstrips the speed of regulatory response.  It is therefore … Continue Reading

The European Securities and Markets Authority (ESMA) published advice on the extension of the Alternative Investment Fund Managers Directive (AIFMD) passport on 30 July 2015 (the Advice).

For Jersey and Guernsey, the ESMA Advice was positive: no obstacles exist to the extension of the AIFMD passport to these jurisdictions.  AIFMD Article 67 envisages that a delegated act will follow within three months to implement this advice.  However, the time-frame for this now appears to be uncertain. The Advice notes that the Commission … Continue Reading

FCA publishes Memorandum of Understanding between the FCA and ICO

On 28 January 2015, the Financial Conduct Authority (FCA) published the Memorandum of Understanding (MoU) which it entered into with the Information Commissioner's Office (ICO) (dated 29 September 2014). The FCA hopes that the MoU will help in responding to the large volume of unsolicited marketing that it needs to deal with following the transfer of responsibility for consumer credit regulation to them on 1 April 2014.… Continue Reading

European Financial Industry Regulatory Update

This post was also written by Dan Weiner and Michael Berryman from Reed Smith’s UK Financial Markets Regulatory Group. International regulatory bodies, working alongside their regional and national counterparts, have spent over six years attempting to mend the global financial system by strengthening its stability and resilience. This financial industry regulatory update sets out the … Continue Reading

Keeping up with Volcker: The EU proposes new regulation on the separation of trading and lending

On 30 January 2014, the EU weighed in with its answer to the “too big to fail” dilemma. The Regulation on structural measures improving the resilience of EU credit institutions will introduce a Volcker-like ban on proprietary trading for selected banks. It will also give local regulators powers to require those banks to separate high-risk … Continue Reading

What to expect in 2014

2013 was a significant year for the UK regulatory landscape. National and international regulators continued to address the issues identified by the financial crisis in addition to responding to the LIBOR scandal with record-breaking penalties. In April 2013 a new regulatory regime was introduced in the UK which divided the Financial Services Authority into two … Continue Reading

AIFMD Developments

On 29 April, HM Treasury published its Questions and Answers on the transposition of the Alternative Investment Fund Managers Directive (AIFMD). This suggested a number of provisions to the UK implementation of the AIFMD, which have been incorporated into the amended draft Alternative Investment Fund Managers Regulations 2013, (“AIFM Regs”) published in May. There will … Continue Reading

Impending Impact-What the Eurozone Crisis Means for US Financial Services Institutions

The impact of a breakup of the euro, whether by a large or small Eurozone member, will have significant consequences for US-headquartered financial services providers. Not only are those US companies among the key players with operations in the Eurozone, but many of them are among the largest foreign exchange traders in the world. An … Continue Reading

Euro Contingency Planning: Why it is necessary now, what it should cover and how we can help

The Reed Smith Eurozone Response Group recently published an alert, designed to encourage clients to engage in euro contingency planning to deal with the myriad of risks associated with the euro, the eurozone, the EU and EU financial institutions. The timing of the alert is based upon the recent Greek elections, the increased threat of … Continue Reading

Reed Smith Analysis – Banking Reform: Delivering Stability and Supporting a Sustainable Economy, June 2012

On the 14 June 2012, HM Treasury published a White Paper setting out the Government’s implementation of the Vickers Report. This was confirmed by George Osborne at the annual Mansion House speech. This will result in: the ring fencing of high street banking; banks establishing a primary loss-absorbing capacity; a bail-in tool enabling authorities to … Continue Reading

The Cost of Basel III for a Safer Financial Services Industry – Jacqui Hatfield, Reed Smith Partner Comments in the FT

The Financial Times published an article on 18th May 2012 and it discussed the cost to the 29 largest banks in the world, in order for them to comply with the Basel III rules. The article entitled “Fitch calculates $566 billion need for Basel III rules” and details the fact that Fitch Ratings suggest these … Continue Reading

Reed Smith Partner Jacqui Hatfield Comments in the FT on the Drive by Brussels to Introduce Standardised Financial Regulation

The Financial Times published an article 10th May 2012 entitled Wariness over EU’s level playing field and it comments on how regulation used to be so relaxed. Recently, the FSA has taken a tough line on regulation and will do so going forward. Many consider, however, there to be an uneven playing field as regulators … Continue Reading

February Banking Regulatory Update

International regulatory bodies, working alongside their regional and national counterparts, have spent more than four years attempting to mend the global financial system by strengthening its stability and resilience. In 2012, the stream of regulations does not appear to be slowing, as governments and regulators continue to address the issues arising from the financial crisis. … Continue Reading

The EBA completes its top management structure

The EBA’s Board of Supervisors, the principal decision-making body of the Authority, composed of 27 voting members, one from each EU Member State, selected today Adam Farkas to serve as the first Executive Director of the EBA, subject to confirmation by the European Parliament. The Executive Director will be in charge of the day-to-day management … Continue Reading

Banking Industry Regulatory Update

International regulatory bodies, working alongside their regional and national counterparts, have spent over three years attempting to mend the global financial system by strengthening its stability and resilience. In the latter part of 2010 and in early 2011, the stream of regulations did not appear to be slowing. On 17 February 2011 the European Commission … Continue Reading

The Establishment of the European Banking Authority

The European Banking Authority (EBA) replaced the Committee of European Banking Supervisors (CEBS) on 1st January 2011 and last week announced that Andrea Enria, formerly of CEBS would be the chairman from 1 March 2010. CEBS, together with the other committees, were only entitled to adopt non-binding guidelines and recommendations and as such, had little … Continue Reading

Thoughts on Regulatory Reform

The Future of the PRA and FCS “It didn’t matter what co-ordination measures were put in place, such as the Memorandum of Understanding, the Bank of England and the FSA never got on.  If this lack of co-operation remains the case with the PRA and the FCS, any co-ordination measures put in place will not … Continue Reading

The new EBA chairman

I can see why he is introducing himself in such a confident and enthusiastic manner because the role requires it but he was not, as far as I was aware, a leading light at CEBS and his comments are a bit naive. The EBA will have the power to bind member states and we know … Continue Reading