Welcome to the UK Regulation Round Up, a regular bulletin
highlighting the latest developments in UK and EU financial
services regulation.
Key developments in December 2024:
20 December:
FCA Handbook: The Financial Conduct Authority
(”FCA”) published Handbook Notice 125, setting out
changes to the FCA Handbook made by the FCA board on 13 and 19
December 2024.
National Storage Mechanism: The FCA published a policy statement (PS24/19)
on the requirements for submitting regulated information to the
National Storage Mechanism following publication of its
consultation paper in August 2024.
19 December:
Consumer Composite Investments: The FCA publisheda consultation paper on consumer
composite investments (CP24/30),which consults on a new
product information regime to help consumers understand the
products they are buying.
CBEST Thematic Report: The Bank of England, the
Prudential Regulation Authority
(”PRA”) and the FCA published their 2024 annual CBEST thematic
report.
Motor Finance: The FCA published a policy statement (PS24/18)
on further temporary changes to handling rules for motor finance
complaints.
Cryptoassets: ESMA published a statement
(ESMA75-453128700-1396) on the transitional measures in
Article 143(3) of the Regulation on markets in cryptoassets ((EU)
2023/1114)
(”MiCA”).
Competition Concurrency Arrangements: The
Competition and Markets Authority published a report on the impact and
effectiveness of the competition concurrency arrangements,
following ten years of operation of the concurrency
arrangements.
18 December:
Cryptoassets: The European Commission adopted
two Delegated Regulations (here (C(2024) 6902) and here (C(2024) 6907)) supplementing
MiCA.
ESG: ESMA publishedtechnical advice
(ESMA84-2037069784-2196) to the European Commission on
revisions to Annex I of the CRA Regulation (1060/2009) and
Commission Delegated Regulation (EU) 447/2012 concerning
ESG factors in credit rating methodologies.
Non-bank Financial Intermediation: The
Financial Stability Board published a consultation report on leverage in
non-bank financial intermediation.
17 December:
ESG: The European Commission adopteda Delegated Regulation (C(2024)
8782) on regulatory technical standards on sustainability
information under MiCA.
PISCES: The FCA published a consultation (CP24/29) on
the regulatory framework for the Private Intermittent Securities
and Capital Exchange System
(”PISCES”).
ESG: The European Commission publisheda tentative agenda for forthcoming
College of Commissioners’ meetings that includes information
about an omnibus simplification package, which it is anticipated
will look at existing EU sustainability frameworks with the aim of
reducing reporting requirements.
CPTPP: On 15 December 2024, the UK officially
joined the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership
(”CPTPP”) as a full member. See
the government’s press release on this topic here.
ESG: The Financial Markets Standards Board published, for consultation, a transparency
draft of a statement of good practice on the governance of
sustainability-linked products.
SFDR: The EU Platform on Sustainable Finance publisheda report on the categorisation of
products under Regulation (EU) 2019/2088 on
sustainability-related disclosures in the financial services sector
(”SFDR”). For further
information, please also refer to our update on this topic here.
FSMA 2023: The Financial Services and Markets
Act 2023 (Addition of Relevant Enactments) Regulations 2024 (SI
2024/1347) have been made and published, together with an explanatory memorandum.
16 December:
Cryptoassets: The FCA publisheda discussion paper (DP24/4)
setting out its proposed approach to cryptoasset admissions and
disclosures, and the market abuse regime for cryptoassets.
MiFIR II: ESMA publishedits final report and regulatory
technical standards on non-equity trade transparency, the
availability of information on a reasonable commercial basis and
reference data under MiFIR (600/2014) that reflect
revisions made by Regulation (EU) 2024/791
(”MiFIR II”).
MiFIR II and MiFID III: ESMA publishedits final report on equity
transparency measures under MiFIR II and Directive (EU)
2024/790 amending the MiFID II Directive
(2014/65/EU) (”MiFID
III”).
MiFID III: ESMA publishedits final report
(ESMA74-2134169708-7577) on proposed amendments to certain
technical standards for commodity derivatives under MiFID III.
13 December:
Cryptoassets: The European Commission adopteda Delegated Regulation (C(2024)
6908) containing regulatory technical standards specifying the
adjustment of own funds requirement and minimum features of stress
testing programmes of issuers of asset-referenced tokens or of
e-money tokens under MiCA.
ESG: ESMA publisheda press release announcing it has
published Q&As relating to its guidelines on funds’ names
using ESG or sustainability-related terms. For further information,
please also refer to our update on this topic here.
BMR: The Council of the EU published a press release announcing it has
reached provisional political agreement with the European
Parliament on the legislative proposal for a Regulation amending
the Benchmarks Regulation ((EU) 2016/1011)
(”BMR”) as regards the scope of
the rules for benchmarks, the use in the Union of benchmarks
provided by an administrator located in a third country and certain
reporting requirements.
12 December:
AIFMD: ESMA publisheda consultation paper
(ESMA34-1985693317-1085) on draft regulatory technical
standards on open-ended loan-originating alternative investment
funds under the Alternative Investment Fund Managers Directive
(2011/61/EU) (”AIFMD”).
For further information, please also refer to our update on this
topic here.
Listing Act: ESMA publisheda consultation paper
(ESMA74-1103241886-1086) on draft technical advice on the
implications of the Listing Act on the Market Abuse Regulation
(596/2014) and the MiFID II Directive
(2014/65/EU).
ESG: Regulation (EU) 2024/3005 on the
transparency and integrity of environmental, social and governance
rating activities has been publishedin the Official Journal of the
European Union.
Cryptoassets: The PRA published a data request, in the form of a
questionnaire, on firms’ exposures to tokenised assets,
stablecoins and other cryptoassets.
11 December:
Consumer Duty: The FCA publishedits findings following a thematic
review into firms’ approaches to completing the first annual
consumer duty board report.
10 December:
Cryptoassets: The European Supervisory
Authorities (”ESAs”) publisheda final report on guidelines on
templates for explanations and opinions, and the standardised test
for cryptoassets, under Article 97(1) of MiCA.
FSMA 2000: The Financial Services and Markets
Act 2000 (Disclosure of Confidential Information) (Amendment)
Regulations 2024 (SI 2024/1306) have been made and published, together with an explanatory memorandum.
9 December:
Consumer Duty: The FCA publishedits priorities under the consumer
duty for the rest of 2024 and into 2025.
FCA Perimeter Report: The FCA published an updated version of its webpage on
the perimeter report, which identifies new issues in relation to
investment trust cost disclosure and exclusions to regulated
activities.
6 December:
UK Corporate Governance Code: The FCA publishedQuarterly Consultation Paper No 46
(CP24/26), in which it consults on minor consequential
amendments to the UK Listing Rules and the Disclosure Guidance and
Transparency Rules to reflect the 2024 UK Corporate Governance
Code.
FCA Quarterly Consultation: The FCA publishedits 46th quarterly consultation paper
(CP24/26).
4 December:
DORA: The Joint Committee of the ESAs publisheda statement (JC 2024 99) on
the application of the Regulation on digital operational resilience
for the financial sector ((EU) 2022/2554)
(”DORA”), which will take effect
from 17 January 2025.
2 December:
EU Taxonomy Legislation: The European
Commission published a draft notice on the interpretation
and implementation of certain legal provisions of the Taxonomy
Environmental Delegated Act (Commission Delegated Regulation (EU)
2023/2486), the Taxonomy Climate Delegated Act (Commission
Delegated Regulation (EU) 2021/2139) and the Taxonomy
Disclosures Delegated Act (Commission Delegated Regulation (EU)
2021/2178).
MiFIR: The FCA publisheda direction modifying its
transitional direction for the derivatives trading obligation under
the UK Markets in Financial Instruments Regulation
(600/2014)
(”MiFIR”).
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Regulation Round Up
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