Edric Jennings’ Post

💠 Financial Regulation Weekly Update (UK, US & EU) ⭐ UNITED KINGDOM FCA: Pre-contractual disclosure examples for the SDR and investment labels regime FCA FG24/5 – Prudential assessment of acquisitions and increases in control PRA/FCA PS18/24 – Prudential assessment of acquisitions and increases in control FCA: Handbook Notice No 123 FCA fines and bans two individuals for pension transfer advice failings FCA: APM 2024 – responses to unanswered questions FCA: CrowdStrike outage – lessons for operational resilience FCA and PSR Boards appoint new chair to decision-making committees PRA PS17/24 – rules in relation to the disclosure and reporting (CRR) parts of the PRA rulebook FCA SBPP responds to CP24/19 – Consumer Credit Regulatory Returns BoE Deputy Governor discusses potential impact of AI on financial stability Lords: Letter to FSRC regarding listed investment companies and cost disclosure SI: The Insurance and Reinsurance Undertakings (Prudential Requirements) (Amendment and Miscellaneous Provisions) Regulations 2024 Draft SI: The draft Financial Services and Markets Act 2023 (Addition of Relevant Enactments) Regulations 2024 TPT announces conclusion of its work, releases final report FCA Chief Executive discusses motor finance and private markets Autumn Budget announcements SI: The Financial Services and Markets Act 2023 (Commencement No. 8) Regulations 2024 FCA: Individual fined for failing to notify of significant tax issues BoE Governor discusses the future of money and payments EUROPE OJ: Commission Delegated Regulation amending CRR – postponing the application date of own funds requirement for market risk ACER: REMIT Quarterly ESAs: Draft ITS specifying tasks of collection bodies and functionalities of the ESAP ESAs: Final Report – PAI disclosures under the SFDR EIOPA: Q&A regarding Solvency II reporting SRB speech: Crisis management and resolution EBA launches survey for entities within the scope of initial margin model authorisation regime – EMIR 3 OJ publication – ELTIF ESMA: Proposals to streamline the prospectus area ESMA consults on amendments to MiFID research regime EBA consults on draft RTS and ITS for structural foreign exchange positions UNITED STATES CFPB: Credit union fined over botched rollout of new online banking system CFTC charges companies and cofounder with Forex fraud, failing to register CFPB to distribute over $191 million to consumers harmed by leasing company SEC: Rule amendments and new rule on risk management and resilience of CCAs FINRA: Metaverse and the implications for the securities industry

Financial Regulation Weekly Update (UK, EU & US) UNITED KINGDOM FCA: FG24/6 – Guidance for firms that enables a risk-based approach to payments FCA: Multi-firm review of life insurers’ bereavement claim process PSR: Stakeholder submissions to MR22/1.6 SI: The Packaged Retail and Insurance-based Investment Products (Retail Disclosure) (Amendment) Regulations 2024 SI: The Securitisation (Amendment) (No. 2) Regulations 2024 FCA charges four individuals with fraud offences relating to failed credit union FCA proposes time extension for complaints handling in relation to non-DCAs for motor finance PSR: Impact of APP fraud on UK customers Lords: CfE on Property (Digital Assets etc) Bill Lords: Answer to written question on money laundering and PEPs  FCA: Revision of MCS methodology BoE consults on new Fundamental Rules for FMIs TSC: Letter from FCA Chief Executive on motor finance FCA bans a director from working in financial services and cancels firm's permissions FSCS Report: Outlook November 2024 UK Finance report: Information Sharing Pilot (ICO Sandbox) EUROPE EU agencies respond to EC consultation on macroprudential policies for NBFI Council of the EU: closure of the ODR platform and its replacement ECB: Building a solid cyber defence for the new geopolitical season ESMA consults on the active account requirement - EMIR 3 EBA: Common Equity Tier 1 instruments ESAs: Guidelines on system for exchange of information relevant to F&P assessments ECB: Financial Stability Review – November 2024 ESMA: Final report –Technical advice on CSDR penalty mechanism ESAs: Fit-For-55 climate scenario analysis ECB: Taking account of nature, naturally Council adopts new ESG ratings regulation Council adopts revamped rules for EU clearing services OJ: Commission Implementing Regulation to Solvency II ESMA: Shortening of the settlement cycle in the EU ECB: Financial Stability Review article – diversification in funding ECB: Administrative Board of Review - Ten years of experience UNITED STATES NY Fed research into bank failures Fed: Supervision and Regulation Report and testimony by the Vice Chair for Supervision OCC: Acting Comptroller addresses House Financial Services Committee Fed issues enforcement actions with a bank and bank holding company DoJ: Former senior manager of Richmond Fed pleads guilty to insider trading and making false statements SEC charges crypto mining company with FCPA violations in connection with scheme to influence members of Japan's Parliament FDIC announces extension of comment period for deposit insurance recordkeeping rule for banks’ third-party accounts CFTC DCR staff advisory related to clearing of options of spot commodity ETFs

Financial Regulation Weekly Update (UK, EU & US) UNITED KINGDOM FCA: PS24/17 – Financial Crime Guide updates FCA consults on regulatory fees and levies FCA: Handbook notice No. 124 PRA: PS19/24 Strong and Simple Framework – The definition of an ICR firm BoE: Results of 2024 CCP supervisory stress test BoE: SWES final report BoE: Report on approach to stress testing the UK banking system FCA seeks further views on enforcement transparency proposals FCA speech on financial inclusion SI: The Digital Markets, Competition and Consumers Act 2024 (Commencement No. 1 and Savings and Transitional Provisions) Regulations 2024] FCA consults on MiFID Org Reg FCA: 2023 CRA UK market share report FCA fines individual for trading during closed periods and disclosure failures FCA COO discusses foundations for future strategy FOS sees complaints increase by more than 50% SI: The Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Regulations 2024 FCA: Crypto regulation roadmap and consumer research on crypto FCA and PRA consult on remuneration regime for bankers Schemes (Temporary Recognition) and Central Counterparties (Transitional Provision) (Amendment) Regulations 2024 APPG (Investment Fraud & Fairer Financial Services): Report on CfE regarding FCA FCA launches first research competition into how regulation can help drive UK economic growth FCA IWG on credit reporting: Progress report on industry remedies – Credit Information Market Study FCA fines bank for alleged disclosure failings in 2008 BoE: Consultation paper on amendments to approach setting a MREL – extension to deadline HMT: Speech on government's approach to tokenisation and regulation EUROPE EC: Commission delegated regulation on transparency data – MiCAR EIOPA: Awareness tool for natural catastrophe risks and prevention measures SRB: Upcoming consultations and requests to the industry OJ: MiCAR ITS – Reporting OJ: MiCAR ITS – Cooperation between competent authorities EIOPA Chair addresses Investment Management Forum SRB: Work programme 2025 ECB: Objects in the rearview mirror are closer than they appear UNITED STATES SEC updates list of firms using inaccurate information to solicit investors SEC announces charges against former co-CIO for alleged cherry-picking scheme SEC announces enforcement results for fiscal year 2024 SEC charges three broker-dealers with filing deficient SARs Fed: Governor Bowman addresses symposium on AI in the financial system SEC Chair to depart agency CFTC: GMAC advances recommendation on tokenized non-cash collateral CFPB finalizes rules on oversight of large nonbank companies offering digital funds transfer and payment wallet apps

⭐ Financial Regulations Weekly Update (International) 🌏 UNITED KINGDOM FCA: Trial date fixed in relation to three charged over CFD trading pension fraud FCA/BoE: Q&As on UK EMIR reporting requirements PSR: PS24/3 – FPS APP scams FOS: Annual complaints data and insights 2023/24 FMSB: Transparency Draft on SSIs FCA sets out new listing rules FCA PMB 50 and consultation on additions to Knowledge Base in relation to UKLR FCA: Date set for 'finfluencer' trials Law Commission: Scoping paper on DAOs PRA: Approach to life insurance stress test 2025 PRA speech: Solvency II reforms – matching adjustment BoE: Fees regime for UK FMIs – CCPs, CSDs FCA: Quarterly consultation No. 44 BoE speech: Impact of legal entity identifiers on payments PSR: 2024/25 fees figures BoE: New data and analytics strategy – three-year roadmap EUROPE ESMA: Q&As – AIFMD, MiCAR, MiFID II, UCITS ESAs consult on guidelines under MiCAR OJ: AI Regulation ESMA: Final report on draft RTS amending ESEF taxonomy ESAs report on the use of behavioural insights in supervisory and policy work ECB reports on key assessment criteria and collection of sound practices in relation to digitalisation ESMA consults on MiFIR review ESMA issues statement on the use of collateral by NFCs acting as clearing members EBA updates supervisory reporting framework ESMA consults on CSDR Refit ESMA publishes results of stress test of CCPs SRB: Resolvability assessment report 2023 ESMA consults on reporting requirements and governance expectations ESMA consults on liquidity management tools for funds EBA report: Convergence of supervisory practices 2023 EBA consults on criteria to assess the materiality of CVA risk exposures arising from securities financing transactions – CRR EBA: European Supervisory Examination Programme 2025 UNITED STATES CFTC and DoJ Fraud Disruption Conference focuses on combatting crypto schemes NY Fed: Statement of IOSCO Compliance for administered reference rates SEC Chair Gary Gensler issues statement on the spring 2024 regulatory agenda FDIC issues list of banks examined for CRA compliance

Inadvisable Procedures and the Importance of Compliance in Financial Transactions Introduction: The concept of utilizing a "speed dating" approach to financial transactions has surfaced, with individuals crafting intricate procedures without prior experience in real financial transactions. This unconventional method involves hiring a workforce to navigate the internet and seeking a matching receiver and financial institution. Unfortunately, this approach, while ambitious, is often isolated, ill-conceived, and unlikely to yield successful outcomes. The Reality: Engaging in financial transactions demands a level of expertise and adherence to established standards. Unfortunately, many individuals, perhaps motivated by the allure of quick success, attempt to modify the entire financial transaction process based on their isolated procedures. The chances of success in this endeavor are as remote as winning the lottery. Facing Uncomfortable Truths: It is essential to acknowledge uncomfortable truths, even when they challenge prevailing beliefs. The reality is that no legitimate licensed receiver or financial institution will accept procedures that deviate from established norms. Such deviations often run afoul of crucial regulations set forth by authoritative bodies such as the USA PATRIOT ACT, US FEDERAL RESERVE, ECB (EUROPEAN CENTRAL BANK), FBI, INTERPOL, and other pertinent banking and legal entities. Procedures Discrepancy: Daily, we encounter individuals presenting financial transaction procedures, asserting that a specific person requires processing by their provided guidelines. However, it is crucial to emphasize that legitimate transactions do not adhere to sender-specific procedures. To successfully navigate the financial landscape, adherence to the governance regulations outlined by the relevant authorities is paramount. Conclusion: In the complex world of financial transactions, adherence to established norms and regulatory frameworks is not negotiable. The ill-conceived and isolated procedures touted by some individuals may seem promising but are fundamentally flawed. It is imperative to prioritize compliance with governing regulations to ensure the legitimacy and success of financial transactions.

The new issue of UK Regulatory Radar brings you the latest industry and regulatory updates affecting financial services firms in the UK, including the FCA and PRA business plans for 2024/25. For more, read the new edition here: https://lnkd.in/gAhMmkFH

🌟 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝗿𝘂𝗹𝗲-𝗯𝗮𝘀𝗲𝗱 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵𝗲𝘀, 𝗮𝗻𝗱 𝗵𝗼𝘄 𝗱𝗼 𝘁𝗵𝗲𝘆 𝗵𝗲𝗹𝗽? 🌟   The financial sector faces growing demands—especially with regulations like KWG18 requiring precise and continuous credit risk assessments. For banks and insurers, this means not just additional effort but also the need to make existing processes more efficient and reliable.   𝗛𝗼𝘄 𝗰𝗮𝗻 𝗿𝘂𝗹𝗲-𝗯𝗮𝘀𝗲𝗱 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵𝗲𝘀 𝗵𝗲𝗹𝗽? Rule-based approaches use clearly defined rules based on regulatory requirements, internal policies, and experience. With algorithms and automated workflows, these approaches simplify complex decisions and auditing processes. Specifically, they:   ✅ 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗲: Tasks like credit risk assessment or compliance checks that were previously manual are now automated, saving time and reducing errors. ✅ 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝗶𝘇𝗲: Unified processes ensure that decisions are transparent and traceable, making both internal collaboration and external audits easier. ✅ 𝗥𝗲𝗱𝘂𝗰𝗲 𝗥𝗶𝘀𝗸𝘀: Data-driven models enable early detection and mitigation of potential risks, such as rising credit defaults.   𝗪𝗵𝘆 𝗮𝗿𝗲 𝘁𝗵𝗲𝘀𝗲 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵𝗲𝘀 𝘀𝗼 𝘃𝗮𝗹𝘂𝗮𝗯𝗹𝗲?   ✅ Banks report up to 30% time savings in risk assessments. ✅ Audit durations can be shortened without compromising quality. ✅ Rule-based systems adapt flexibly to new regulatory demands, saving costs and simplifying compliance in the long run.   The result? Efficient processes, satisfied customers, and a clear competitive edge in a dynamic market.   The future of finance lies in solutions that combine technology and expertise to actively shape change - and we can help you to find them! 🚀 #Banking #Innovation #Compliance #Efficiency

"Sound at Last? Assessing a Decade of Financial Regulation" examines the evolution and impact of regulatory reforms implemented in response to the 2007-2009 financial crisis. The document details significant advancements in the Basel III framework, introducing stringent capital, liquidity, and leverage requirements to fortify global banking institutions' resilience. The narrative outlines how these measures have shifted the regulatory landscape towards more robust financial systems, highlighting the integration of macroprudential policies designed to address systemic risks and improve the oversight of financial markets. A critical aspect of the reforms discussed is the enhancement of resolution procedures to effectively manage 'too big to fail' (TBTF) scenarios, aiming to mitigate the moral hazard and financial burden previously shouldered by governments and taxpayers. The study assesses the implementation of structured resolution mechanisms, including establishing recovery and resolution planning that obligates banks to maintain adequate loss-absorbing capacities. Furthermore, the expansion of central banks' roles is thoroughly evaluated, emphasizing their increased responsibilities in maintaining financial stability beyond traditional monetary policy mandates. These include their involvement in systematic stress testing, providing a backstop for liquidity, and adjusting policies to manage the interconnectedness of financial institutions and markets. Despite the progress noted, the document identifies ongoing challenges, such as greater international coordination, adapting regulatory frameworks to evolving market conditions, and integrating new digital finance platforms into the regulatory perimeter. It calls for continuously reassessing the regulatory environment to ensure its effectiveness in a dynamic global financial landscape. It suggests that while strides have been made towards a more stable financial system, the journey still needs to be completed. Questions: 1) How have the initial responses to the financial crisis, such as the introduction of Basel III and other regulatory adjustments, altered the strategic behavior of financial institutions in managing risk? 👀 2) In the current regulatory environment, are there evident gaps in the resolution frameworks that could potentially lead to systemic risks despite the existing measures? 👀 3) What are the potential implications of emerging financial technologies and digital platforms on the existing regulatory frameworks, and how might regulators need to evolve to address these challenges? 👀 💡 Bolton, P., S Cecchetti, J Danthine & X Vives (eds) (2019). 'Barcelona 1: Sound At Last? Assessing a Decade of Financial Regulation', CEPR Press, Paris & London. https://lnkd.in/deVi7SSX

The new issue of UK Regulatory Radar brings you the latest industry and regulatory updates affecting financial services firms in the UK, including the FCA and PRA business plans for 2024/25. For more, read the new edition here:

Great article that really explains why rule-based approaches are so important. The time savings and better traceability are just a few of the benefits. These technologies are simply indispensable to meet all the regulatory requirements and stay competitive. Big kudos to the team for these valuable insights! 👏