Financial Services 2012 Plan ahead for a year of change general financial services and consumer finance

Transcription

1 Plan ahead for a year of change general financial services and consumer finance

2 Q EU Early 2012 ETFs: International Organization of Securities Commissions (IOSCO) expected to consult on a set of principles or best practices on Exchange Traded Funds (ETFs) regulation Early 2012 AIFMD: Financial Services Authority (FSA) and HM Treasury (HMT) due to publish a consultation paper on the implementation of the AIFM Directive Early 2012 Market infrastructure: Final report on principles for financial market infrastructures by Committee on Payment and Settlement Systems (CPSS), IOSCO and Bank for International Settlements (BIS) due Q1 Securities Law Directive: EC due to publish legislative proposal for Securities Law Directive Q1 MiFID: ESMA due to consider the responses it receives to its consultation on MiFID in the first quarter of 2012 January OTC derivatives: CPSS and the Technical Committee of IOSCO intend to publish the final version of its report on over-the-counter (OTC) derivatives data reporting and aggregation requirements 1 January Short selling/cds: Regulation on short selling and certain aspects of credit default swaps (CDS) expected to be published in the Official Journal 1 January Financial reporting: European Banking Authority (EBA) revised guidelines on financial reporting effective 6 January Prospectus Directive: Last date for comments to ESMA s second consultation paper on its technical advice on possible delegated acts concerning the Prospectus Directive 13 January MiFID II: Deadline for comments on the rapporteur of MiFID II s consultation to inform the work of Economic and Monetary Affairs Committee (ECON) on MiFID II legislative proposals 15 January CRD: Deadline for comments on EBA s two consultations in response to amendments made to the Capital Requirements Directive (CRD) Late January CRD IV: Draft report expected to be presented in late January, with a vote in ECON at the end of January. Following this, negotiations with the Council of the European Union will begin with a view to reaching agreement by summer 2012 February PRIPs: EC due to publish legislative proposal on packaged retail investment products (PRIPs) EU February EMIR: Final version of proposed European Market Infrastructure Regulation (EMIR) due to be agreed 10 February Acquisitions Directive: Deadline for comments on EC consultation on the application of the Acquisitions Directive 24 February MiFID: Deadline for comments on ESMA s consultation paper on guidelines on certain aspects of MiFID 29 February Financial reporting: Deadline for responses on the European Securities and Markets Authority s (ESMA) consultation paper on materiality in the preparation of financial statements under the International Financial Reporting Standards (IFRS) accounting standard framework. ESMA to consider all feedback in Q2 of 2012 and to publish a report on the outcome of the consultation process later in February Prospectus Directive: ESMA due to provide the EC with its technical advice on possible delegated acts concerning the Prospectus Directive March AML: EC report on its review of the Third Money Laundering Directive (MLD 3) expected 8 March Corporate governance: EC due to assess the effectiveness of its call on publicly-listed EU companies to sign a voluntary pledge to increase the presence of women on corporate boards to 30% by 2015 and 40% by 2020, by actively recruiting qualified women to replace outgoing male board members 13 March CRD V: Indicative date for the Council of the European Union to consider CRD IV 16 March Supervision of financial conglomerates: Deadline for comments on BCBS, IOSCO and the International Association of Insurance Supervisors (IAIS) consultative report setting out draft principles for the supervision of financial conglomerates Spring Covered bonds: A plan for implementing the European Covered Bond Council s (ECBC) Label Initiative for covered bonds due to be decided Spring OTC derivatives: Financial Stability Board (FSB) third progress report on implementing OTC derivatives market reforms due Winter/Spring AIFMD: Discussions on EC s delegated acts draft with member state representatives in the European Securities Committee and European Parliament (EP) due to take place

3 Q REGULATORY First half of 2012 Legal services reform: FSA due to consult on outstanding non-mainstream regulated activity issue following PS11/17: authorised professional firms and legal services reform First half of 2012 RIEs/RCHs: In light of responses to FSA CP11/19, and subject to FSA Board approval, FSA expects to make revised guidance on the financial resources requirements for recognised bodies (that is, recognised investment exchanges (RIEs) and recognised clearing houses (RCHs) Q1 RDR: FSA feedback on CP11/24: accredited bodies expected, as well as policy statements on CP11/25: distribution of retail investments and CP11/26: distribution of retail investments under the retail distribution review (RDR) Q1 CDR IV: FSA due to publish a consultation paper on implementing CRD IV Q1 Compensation: FSA due to publish a paper on its compensation review Q1 Recovery and resolution: FSA policy statement on recovery and resolution expected Q1 COREP: FSA due to publish a policy statement on Guidelines on Common Reporting (COREP) as well as a consultation on COREP common reporting rules Q1 CASS: FSA PS on CP11/15: taking of certain liens or rights over omnibus client accounts and liens or rights over assets held in overseas jurisdictions expected Q1 CASS: FSA PS on CP11/16: proposals for recovery and resolution plans and CASS resolution packs expected Q1 Transaction reporting: FSA is proposing to publish version 3 of the Transaction Reporting User Pack (TRUP) in the first quarter of 2012, which may result in it becoming effective later than the FSA had originally intended 1 January FOS: Financial Ombudsman Service (FOS) award limit increases to 150,000 (from 100,000) 1 January SYSC/Remuneration: Amendments to the voiding provisions of the remuneration code come into force to ensure the rules continue to be limited to large firms that are of systemic importance and have higher risk business models 1 January DISP: New rules to ensure that all eligible consumers will be able to have their complaints considered by FOS, particularly consumers who are the victim of identity theft or mistaken identity, come into force 6 January FEES: Deadline for responses on FSA CP11/21: regulatory fees and levies (except chapter 2, where the closing date is 6 February 2012) 6 January RIEs/RCHs: Deadline for comments on FSA CP11/19: on modifying its guidance on the financial resources requirements for recognised bodies 10 January Financial regulation: Last date for responses to the joint BIS/Financial Reporting Council (FRC) consultation on the future role of the FRC. Changes due to be implemented in April 2012 REGULATORY 10 January RDR: Deadline for comments on FSA CP11/25: distribution of retail investments 11 January RDR: Deadline for comments on FSA GC11/27: Retail Product Development and Governance Structured Products Review 16 January RDR: Deadline for comments on FSA CP11/26: distribution of retail investments under the retail distribution review 18 January Non-executive directors: Deadline for comments on FSA GC11/30: Non-executive directors conference; delivering fair treatment for consumers of financial services 23 January TLPI s: Deadline for comments on FSA guidance consultation on traded life policy investments (TLPIs) 27 January QCP: Deadline for comments to the Investment Management Association (IMA) on FSA s Quarterly Consultation Paper 11/27 27 January RCB: Deadline for comments on FSA GC11/31 on the regulated covered bond (RCB) regime: thematic overview 30 January Distributor-influenced funds: Deadline for comments on FSA GC 11/29: Proposed update to the distributor-influenced funds factsheets 1 February GENPRU: Rule changes requiring firms to notify the FSA at least one month in advance of all regulatory capital issuances come into force 6 February QCP: Deadline for comments on FSA CP11/27: quarterly consultation 6 February FEES: Deadline for responses to chapter 2 of FSA CP11/21: regulatory fees and levies 14 February Valuation: Deadline for comments on FSA CP11/30: proposed regulatory prudent valuation return 9 March Deposit protection: Deadline for comments on FSA CP11/29: raising consumer awareness of deposit protection 13 March Prospectus Directive: Deadline for comments on the FSA and HMT s CP 11/28 on the UK implementation of the Directive amending the Prospectus Directive and Transparency Directive 22 March COBS/BCOBS: Amendments to COBS and BCOBS by adding guidance on the use of the terms guaranteed, protected and secure in financial promotions come into force 31 March Transaction reporting: Version 3 of FSA s TRUP due to be effective from this date for reporting of transactions in derivatives conducted through clearing platforms of derivative markets and for agency transactions required to be reported in a single transaction report (without using the internal account). This timeline may slip as indicated earlier

4 Q Early 2012 Office of Fair Trading (OFT) intends to publish summary of responses to their consultation on guidance for credit brokers and intermediaries which employ or use their services Early 2012 Irresponsible lending: OFT expects to amend relevant sections of its irresponsible lending guidance, to reflect more recently published OFT guidance Early 2012 UK payments system: Government has committed to consult on how the regulatory framework for the UK payments system can be enhanced Early 2012 Consumer Rights Directive: Government intends to consult on the early implementation of the provisions of the Consumer Rights Directive provision which prohibits above-cost, excessive surcharges on any form of payment in many sectors Q1 With-profits: FSA due to publish policy statement to CP11/5: reform of its with-profits regime 1 January Payment services: All banks and building societies should have in place systems to ensure compliance with the Payment Services Regulations January Payment services: Deadline for comments on Competition Commission s consultation on its intention to revoke the Credit Cards (Price Discrimination) Order The Order has been superseded by the Payment Services Directive, as implemented in the UK by the Payment Services Regulations January Debt advice: Deadline for comments to HMT consultation on a proposal to clarify, as part of the Financial Services Bill 2011/12, the provision and co-ordination of debt advice as one of the activities falling within the Money Advice Service s consumer financial education function 11 January Structured/Retail products: Deadline for comments on FSA GC11/27: guidance consultation that sets out the findings of its review of how firms are designing structured products and contains proposed guidance on retail product development and governance 11 January Retail bonds: Deadline for comments to London Stock Exchange on Consultation on Proposed Rule Amendments Liquidity Provision on the Order Book for Retail Bonds 12 January IMA: Deadline for comments to IMA on draft Investment Management Agreement 12 January IIFSs: Deadline for comments on the Islamic Financial Services Board s (IFSB) consultation on exposure drafts containing proposed guiding principles for institutions offering Islamic financial services (IIFSs) and supervisory authorities on liquidity risk management and stress testing 13 January PPPs: Deadline for comments on FSA GC11/26: guidance consultation on payment protection products (PPPs), jointly with the OFT. The FSA and OFT intend to publish the finalised guidance in the first half of January E-money: Final date for small e-money issuers that have issued e-money before 30 April 2011 to take advantage of transitional provisions to submit an application to become an authorised e-money institution or a small e-money institution Early 2012 New UK regulatory structure: HMT to introduce primary legislation for the UK regulatory structure to Parliament (the Financial Services Bill) Early 2012 Registration of security: Government intends to publish draft regulations to amend Part 25 of the Companies Act 2006 First half of 2012 New UK regulatory structure: Second report by the interim Financial Policy Committee on its macro-prudential toolkit expected Q1 AML: HMT s response to its consultation on proposed changes to the Money Laundering Regulations 2007 due to be published Q1 Market risk: FSA markets risk outlook paper expected 1 January IMA/ABI sectors: IMA and ABI introduce new sectors 2 January Distributions: Deadline for comments on the draft Companies Act 2006 (Amendment of Part 23) (Investment Companies) Regulations 2012, amending the investment company distribution rules 26 January Debt collection: Deadline for comments to OFT s supplementary consultation on its debt collection guidance February Equity capital market: Interim report on Professor John Kay s independent review of UK equity markets and long-term decision making due to be submitted to the Secretary of State February AML: Financial Action Task Force (FATF) due to publish its updated FAFT standards (known as recommendations) February Financial reporting: FRC s Sharman Inquiry panel due to issue a final version of its preliminary recommendations on improvements to the reporting of going concern and liquidity risks 3 February Deadline for responses to OFT s annual plan consultation document 10 February Macro-prudential policy: Comments due to Bank of England (BoE) discussion paper on instruments of macro-prudential policy, which provides a detailed analysis of the proposed macro-prudential tools of the Financial Policy Committee (FPC) 14 February Public Bodies Act 2011 comes into force March Unfair contract terms: The Law Commissions aim to publish a final report on reforming consumer redress for misleading and aggressive practices March or April Corporate governance: Financial Reporting Council (FRC) consultations on changes to the UK Corporate Governance Code expected to begin 31 March AML: The Money Laundering (Amendment No.2) Regulations 2011 come into force 31 March Deadline for transfer of responsibility for delivering consumer advice and information from the OFT to Citizens Advice and Citizens Advice Scotland End March Financial reporting: Deadline for BIS/FRC response to feedback on the joint consultation on changes to audit exemptions and the law allowing companies to change their accounting framework Spring Financial crime: The Law Commission final recommendations to parliament on the use of criminal law in regulatory contexts expected PRODUCTS MARKETS

5 Q Early Q1 Unauthorised unit trusts: Further informal consultation expected on unauthorised unit trust schemes tax Q1 PAIFs: Informal consultation on capital gains rollover reliefs and property authorised investment funds (PAIFs) expected 1 January The government increase of the rate of the bank levy from 0.078% to 0.088% comes into effect 1 January Investment trusts: The Investment Trust (Approved Company)(Tax) Regulations come into force and apply to accounting periods beginning on or after 1 January These Regulations contain provisions as to the approval of companies as investment trusts by HMRC for the purposes of section 1158 of the Corporation Tax Act February Finance Bill: HMRC consultation on draft Finance Bill clauses closes for comments 21 March Budget due to take place End March/early April Finance Bill: Draft Finance Bill containing enabling powers for Tax Transparent Funds, a rewrite of the capital gains tax rules for mergers and reconstructions of authorised investment funds, amendment to the real estate investment trusts (REITs) regime and VAT grouping provisions expected End March/early April Unauthorised unit trusts: Further consultation document on unauthorised unit trust tax expected Early 2012 FATCA: Draft Foreign Account Tax Compliance Act (FATCA) regulations due to be issued for consultation 2 January CRAs: Deadline for ESMA to produce regulatory technical standards for Article 21(4) of the CRA Regulation, as amended by CRA II 10 January Dodd-Frank/Volcker Rule: Deadline for comments to IMA on The Volcker Rule: Impact on UK Managers and Non-US Funds 20 January Fee Charging Debt Management Companies (Promotion of Free Debt Management Advice) Bill due to receive its second reading in the House of Commons 31 January Equality Act: Public bodies listed in Schedule 1 to the Equality Act 2010 (Specific Duties) Regulations 2011 to publish information demonstrating compliance with section 149(1) of the Equality Act 2010 by this date 2 February CRAs: Deadline for written submissions to the Treasury Committee inquiry into CRAs 14 February Dodd-Frank: Deadline for private adviser registration and reporting under the Dodd-Frank Act in order to meet the 30 March 2012 registration deadline 30 March Dodd-Frank: Original private adviser registration and reporting deadline under Dodd-Frank rules extended to this date TAX OTHER

6 Q EU Q2 UCITS V: EC legislative proposal on UCITS depositaries and remuneration expected Q2 Financial reporting: ESMA to consider all feedback on its consultation paper on materiality in the preparation of financial statements under IFRS accounting standard framework and to publish a report on the outcome of the consultation process later in 2012 April Prospectus Directive: Amending directive designed to reduce burden on insurers due to come into effect 25 April CRD IV: Indicative date for the EP to vote on draft ECON report By May Consumer policy: EC due to publish a consumer agenda. This follows from the EP s nonlegislative report on a new strategy for consumer policy 1 May Automated trading: Market participants need to comply with ESMA s guidelines on systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities By June OTC derivatives: BCBS and IOSCO expected to develop for consultation standards for margining for non-centrally cleared OTC derivatives By June Venture capital funds: EC invites EP and the Council of the EU to adopt legislative proposals for a new venture capital framework to create a genuine internal market for venture capital funds by this date June Foreign currency lending: Implementation deadlines for European Systemic Risk Board s (ESRB) recommendations on foreign currency lending vary between June 2012 and December June CRD IV: Indicative date for EP plenary session on CRD IV 30 June EMIR: Technical standards, through which much of the detail on EMIR implementation will be given effect, due to be submitted to the EC 30 June ITS: EBA intends to finalise the draft ITS and submit them to the EC by this date By Summer CRD IV: EC intends for the legislative negotiation process for CRD IV to be concluded Summer/Autumn AIFMD: Final Level 2 text due to be adopted REGULATORY Q2 Prospectus Directive: FSA and HMT expect to publish a policy statement on the UK implementation of the Directive, setting out the next steps 1 April CASS: New rules allowing certain custody liens over omnibus client accounts and clarifying the use of custody liens in overseas jurisdictions due to come into force 16 April FOS: Deadline for comments to FOS consultation paper on how it charges for its work and proposals to modernise its case fee arrangements 24 April Transaction reporting: The contracts transaction reporting system (TRS) users have with the FSA for TRS reporting will terminate on this date. This termination does not affect the reporting obligations firms have under chapter 17 of SUP By May Deposit protection: FSA intends to have new rules on raising consumer awareness of deposit protection in place by this date. It is proposing a threemonth transitional period, which means that firms would need to display the new posters and stickers, and have the new leaflets available, by the end of August 2012 May FEES: FSA final rules and feedback statement on CP11/21: regulatory fees and levies expected. Fee payers will be invoiced from June 2012 on the basis of the 2012/13 periodic fees, levies and policy change 1 May Lending Code: Amendments to the provisions of the Lending Code relating to the sale of debt and the outsourcing of collection activity to debt collection agencies take effect 30 June CASS: Proposed deadline for RRP firms to prepare their initial recovery plans and resolution packs

7 Q PRODUCTS 6 April Pensions: New rules on pension scheme disclosures come into force 1 May Lending Code: Amendments to the provisions of the Lending Code relating to the sale of debt and the outsourcing of collection activity to debt collection agencies take effect 30 June UCITS IV: Firms have until this date to introduce the key investor information document (KIID) for their UCITS funds TAX Q2 PAIFs: Statutory instrument to amend Authorised Investment Funds (Tax) Regulations 2006 to provide specific capital gains tax reliefs for the creation and management of Property Authorised Investment Funds expected in late Spring/early Summer 1 April Corporation tax: The rate of corporation tax to fall to 25% for the financial year April EIS/VCT: Changes in the qualifying conditions relating to the enterprise investment scheme or venture capital trust investee company to apply to shares issued on or after this date 6 April Non-domiciled individual tax: Government propose to introduce a reform of the taxation of nondomiciled individuals. Proposals are due to take effect from this date Easter Financial stability: HMT final report on its review into its response to the financial crisis expected April Financial regulation: Anticipated implementation of any changes to the FRC s role and powers, following the joint BIS/FRC consultation 1 April AML: HMT anticipate that any adopted legislative changes following the review of the 2007 Money Laundering Regulations will come into effect 6 April Distributions: Deadline for implementation of the Companies Act 2006 (Amendment of Part 23) (Investment Companies) Regulations 2012, amending the investment company distribution rules 30 April E-money: Transitional period ends for small e-money issuers to be grandfathered into new regime 1 May Lending Code: Amendments to the Lending Standards Board s Lending Code relating to the sale of debt and the outsourcing of collection activity to debt collection agencies take effect 18 June Auction Platform Regulations: Recognised Auction Platform Regulations come into force (other than 6,10, Schedule 2) MARKETS OTHER April Equality Act: Ban on age discrimination provisionally scheduled to come into force 30 April CRAs: ESMA announced that it is extending the transitional period for use of non-eu credit ratings to this date

8 Q Mid-2012 AIFMD: FSA and HMT due to publish a consultation paper on the implementation of the AIFM Directive 1 July Prospectus Directive: EC must adopt delegated acts in relation to the format of final terms to a base prospectus, the format of the summary and the format and detailed content and specific form of the key information to be included in the summary by this date 1 July Short selling/cds: EC regulation on short selling and certain aspects of credit default swaps to come into effect September MiFID II: EP due to consider the legislative proposals for MiFID II in its plenary session Autumn AML: EC due to produce its proposal for a new Fourth Money Laundering Directive (MLD 4). MLD 4 will take account of the EC s own review of MLD 3 as well as the new FATF standards After Autumn AML: EC, EP, and Council of the European Union to negotiate MLD 4 proposal PRODUCTS July Simple financial products: Steering group on simple financial products due to report back to the financial secretary of the Treasury EU MARKETS July Equity capital markets: Final report on Professor John Kay s independent review of UK equity markets and long-term decision making due to be published 19 September Takeover Code: Takeover Panel Code Committee due to commence review of how the Code amendments are operating Autumn Computer trading: BIS final "Foresight" project on the future of computer trading in financial markets due to be published Q3 CRD IV: FSA due to publish a policy statement on implementing CRD IV Q3 CASS: FSA to bring its final CASS resolution pack (RP) rules into effect Q3/Q4 CASS: UK regulatory authorities to take decisions on actions intended to remove barriers to resolution of FSA s work on RRPs and CASS RPs 1 July Prospectus Directive: Amendments to FSMA implementing certain provisions to amend the Prospectus Directive fully effective 1 July Remuneration: Final deadline for firms to have their remuneration structures fully in line with the FSA s revised Remuneration Code 1 July DISP: Abolition of two-stage complaints process under the FSA s Dispute Resolution: Complaints sourcebook (DISP) End of August Deposit protection: Deposit-takers operating in the UK are due to be required to prominently display standard stickers and posters (in every branch and on all websites) explaining their deposit protection from this date TAX Summer Tax transparent funds: Government due to legislate to introduce a tax transparent fund vehicle from The Government s main objective is to ensure that UK funds can benefit from pan-european asset pooling, such as master feeder structures under UCITS IV, which will allow for economies of scale, reduce costs and increase returns for investors REGULATORY OTHER 2 to 5 July CRAs: The EP has indicated that it will consider the legislative proposals for a package of reforms (referred to as CRA III) relating to credit rating agencies 21 July Dodd-Frank/Volcker rule: Deadline for implementing the Volcker Rule restrictions on proprietary trading and investment in, or sponsorship of, hedge funds and private equity funds Summer FATCA: FATCA regulations due to be issued

9 Q EU 1 November PSD: EC review of the implementation and impact of the PSD due 1 November Short selling/cds: EC regulation on short selling and certain aspects of credit default swaps due to apply from this date 31 December CRD IV: Deadline for member states to implement CRD IV (which contains corporate governance provisions for banks and investment firms) 31 December CCD: Member States are required to bring the provisions of Directive 2011/90/EU, which amends Part II of Annex I to the Consumer Credit Directive (CCD), providing additional assumptions for the calculation of the annual percentage rate of charge, into force Before end 2012 European Social Entrepreneurship Funds: EC invites the EP and the CEU to adopt a new European Social Entrepreneurship Funds regime to enable EU funds to specialise in this field and to be marketed across the EU under a specific and distinctive label End 2012 EMIR: EMIR is intended to apply from the end of 2012 End 2012 Financial market infrastructures: Authorities due to include principles for financial market infrastructures in their legal and regulatory frameworks by this date REGULATORY 1 October COBS: FSA s new rules on pension reform and conduct of business changes (PS11/8) come into force 24 October BIPRU: Rule concerning the implementation of contingency plans may be modified by consent until this date 31 December RDR: Firms expected to be compliant with the new RDR rules, including deadline for all investment advisers to attain required qualifications 31 December Financial regulation: New regulatory structure of the Financial Conduct Authority to be in place End 2012 RAO: HMT due to review and publish a report on the effect of the FSMA 2000 (Carrying on Regulated Activities by way of Business) (Amendment) Order

10 Q MARKETS PRODUCTS 1 October Self invested personal pensions: Firms may take advantage of rule for generic key features illustrations for groups/sub-groups of employees in group personal pension schemes from this date 31 December RDR: New product disclosure rules set out in the Retail Distribution Review (Key Features Illustrations) Instrument 2011 (FSA 2011/55) come into force By end 2012 OTC Derivatives: All standardised OTC derivatives contracts should be cleared through central counterparties by this date End 2012 Consumer Rights Directive: Government intends to implement the provisions of the Consumer Rights Directive on excessive payment surcharges by the end of 2012, rather than the Directive's implementation date of mid October Corporate governance: Any resulting changes from the FRC s consultation on changes to the UK Corporate Governance Code expected to be implemented from this date 1 October Registration of security: Anticipated implementation date of regulations to effect changes to Part 25 of the Companies Act October Financial reporting: Possible commencement date for regulations to effect changes to audit exemptions and to the law allowing companies to change their accounting framework Late 2012 New UK regulatory structure: OFT's consumer credit responsibility due to be transferred to the Financial Conduct Authority (FCA) (one of the bodies that will replace the FSA in late 2012 or early 2013 End 2012 New UK regulatory structure: Financial Services Bill expected to receive Royal Assent, subject to Parliamentary scheduling considerations OTHER 7 December CRAs: EC to present a report to the EP and Council on an assessment of the application of the CRA Regulations by this date 21 December Equality Act: Legislation due to come into force to implement Test-Achats, applying to new contracts for insurance and related financial services entered into, on or after 21 December. Any contracts with gender-sensitive pricing of premiums or benefits concluded before 21 December can continue unchanged after that date 31 December FATCA: For payments after this date all foreign financial institutions will be required to enter into disclosure compliance agreements with the U.S. Treasury, and all non-financial foreign entities must report and/or certify their ownership or be subject to the same 30 percent withholding tax End 2012 CRAs: Proposed date for member state implementation of BCBS amendments to Basel II framework, including incorporation of the IOSCO CRA Code into the Basel II framework

11 During 2012 During 2012 AML: Negotiations on MLD 4 will take place and the EC aims for swift implementation in 2013 During 2012 ETFs: ESMA expected to consult on guidelines for UCITS ETFs and structured UCITS During 2012 UCITS V: Political agreement on legislation on UCITS depositaries and remuneration expected During 2012 Redress: EC to propose EU framework for collective redress During 2012 Financial Conglomerates Directive: EC due to revise Financial Conglomerates Directive During 2012 Venture Capital Funds: EC due to carry out a study on the relationship between prudential regulation and venture capital investments by banks and insurance companies During 2012 Financial reporting: Draft directive on the accounting and financial reporting requirements of micro-entities expected to come into force During 2012 Data protection: EC to publish legislative initiative to revise EU data protection framework PRODUCTS During 2012 Retail banking: OFT due to report back on the impact of initiatives and developments in retail banking EU MARKETS During 2012 Bribery: FSA to carry out thematic review of investment banks' anti-bribery and corruption systems and controls During 2012 Corporate governance: FRC to consult on changes to the UK Corporate Governance Code to extend the remit of, and reporting by, the audit committee and to recommend that the external auditor should be put out to tender at least every ten years. It will also consult on: changes to its guidance on audit committees and risk management and internal control the Stewardship Code to clarify the role of owners and what is meant by 'stewardship' a limited number of other changes to clarify how certain aspects of the Stewardship Code are intended to be applied During 2012 Corporate governance: ABI is expected to report on its review of best practice in board diversity During 2012 Financial reporting: FRC to undertake a limited review of the Turnbull guidance, to establish whether there is a need for any change to reflect the role of the board as defined in the UK Corporate Governance Code During 2012 TLPIs/UCIS: FSA intends to consult on a ban of all marketing, including marketing delivered in the context of financial advice of TLPIs to mass-market retail investors. This will form part of a wider review of the FSA's rules on unregulated collective investment schemes (UCIS) During 2012 RDR: FSA will be actively reviewing how firms are implementing the RDR by carrying out surveys and making information requests During 2012 AML: Owing to FSA's findings from the 2010/11 review, the management of high-risk customers, including PEPs, will remain a focus of the FSA's anti-financial crime agenda. The FSA has indicated that it may carry out a follow-up thematic review During 2012 Data security: FSA to follow up with firms on their data security arrangements as part of the ongoing supervision process. FSA may carry out another review of firms' data security systems and controls to assess if improvements have been made During 2012 Financial sanctions systems and controls: FSA will be keeping an eye on firms' financial sanctions systems and controls as part of its normal supervisory work REGULATORY TAX During 2012 Controlled foreign company regime: Government due to introduce a modernised Controlled Foreign Company (CFC) regime in 2012 that better reflects the way that businesses operate in a globalised economy During 2012 VAT: EC due to publish guidelines agreed on proposed new legislation on the future of VAT towards a simpler, more robust and efficient system tailored to the single market OTHER During 2012 Accounting standards: Global accounting standards due to be implemented

12 Key contacts Pamela Thompson Jonathan Guest Ronald Paterson Antony Thomlinson Michael Wainwright Julian Brown Michaela Walker Jonathan Master Camilla Spielman This briefing is correct as at January It is intended as general guidance and is not a substitute for detailed advice in specific circumstances. Data protection: Your information will be held by Eversheds LLP ( Eversheds ), in accordance with the Data Protection Act 1998, and added to our marketing databases. It may be used for internal statistical analysis, to fulfil any requests from you for further information and services and, unless you have asked us not to, to contact you about other services or events offered by Eversheds or our associated offices. We may pass your details to our associated offices (some of which are outside the EEA), but we will only allow their use for the purposes mentioned above. We may also transfer your details to any successor to our business (or a relevant part of it). An up to date list of our associated offices and their locations can be found on our website at This privacy statement applies to all information that we hold about you. If you do not want your information to be used in this way or your information is incorrect, please contact Donna Fenn by writing to Eversheds LLP, Bridgewater Place,Water Lane, Leeds LS11 5DR or send an to donnafenn@eversheds.com. Alternatively call and we will assist you with your queries. EFIN097