Financial Services 2011 Plan ahead for July to December general financial services and banking

Transcription

1 Plan ahead for July to December general financial services and banking

2 Q EU Q3 PRIPs: European Commission (EC) to publish legislative proposals on packaged retail investment products Q3 Transparency Directive: EC due to publish proposals for changes to Transparency Directive extending the directive to cash-settled derivatives By mid 2011 Basel Committee on Banking Supervision (BCBS) intends to complete a study of the magnitude of additional loss absorbency that globally systemically important banks should have. It further intends to complete its review of the gone-concern loss absorbency of regulatory capital instruments by this date By mid 2011 Cross-border stability groups (CBSGs) should be established for all large EU cross-border financial groups to enable effective co-ordination between national authorities involved in a crisis By July OTC derivatives: International Organization of Securities Commissions (IOSCO) taskforce on over-the-counter (OTC) derivatives regulation due to produce a report on data reporting and aggregation requirements July Prospectus Directive: European Securities and Markets Authority (ESMA) intends to publish a consultation paper on the Prospectus Directive July AIFMD: ESMA due to launch a consultation on the technical advice it is providing to the EC on the AIFM Directive July Close-out netting: EC due to publish draft directive on close-out netting as part of framework for stability in financial sector 1 July UCITS IV: UCITS IV Directive comes into force and level 2 implementing regulations apply from this date 5 July EMIR: Indicative date for European Parliament plenary session on legislative proposal on OTC derivatives, central counterparties (CCPs) and trade repositories (also known as European Market Infrastructure Regulation (EMIR)) 5 July CRD 4: EC intends to publish revised text of its legislative proposals for CRD 4 EU 15 July Prospectus Directive: Deadline for comments on ESMA s draft of its first set of technical advice on possible delegated acts concerning the Prospectus Directive 20 July EC due to publish draft regulation facilitating cross-border debt recovery 22 July Corporate governance: Deadline for responses to EC Green Paper consultation on corporate governance in European companies 29 July Deadline for comments on the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of IOSCO, in conjunction with the Bank for International Settlements (BIS) consultative report on principles for financial market infrastructures 10 August Venture capital funds: Deadline for comments to EC consultation on new European regime for venture capital funds September EC due to publish legislative proposal on EU framework for bank recovery and resolution September Commodity markets: FSB due to consider next steps relating to commodity markets in the light of the IOSCO s final report on commodity financial markets 1 September Private equity and venture capital: Deadline for comments on the European Venture Capital Association s (EVCA) consultation on a new handbook on the professional standards to be observed by the European private equity and venture capital industry 30 September Corporate governance: European Banking Authority (EBA) expects its members to implement the internal governance guidebook and to incorporate it within supervisory procedures by this date 30 September ESMA due to provide technical advice to EC on possible delegation acts concerning the Prospectus Directive

3 Q3 REGULATORY Q3 Listing rules: FSA due to publish consultation paper on Listing Rules enhancement Q3 Hedge funds: FSA due to publish findings of Hedge Fund Survey Q3 TC: FSA due to work with the financial services industry to formulate guidance on the contents of a training and competence scheme Q3 FSA feedback statement to CP11/6 on the use of non-eea regulators rules when calculating the capital requirements of a UK banking or investment firm group expected. New rules due to come into force on 30 December 2011 Q3 CRD 3/BIPRU/GENPRU: FSA policy statement to CP11/9: Strengthening Capital Standards 3 further consultation on CRD3 expected Q3 BIPRU: FSA feedback statement to DP10/4: The prudential regime for trading activities: a fundamental review expected Q3 RDR/COBS/COLL: FSA policy statement to CP10/29: platforms: Delivering the RDR and other issues for platforms and nominee-related services expected Q3/Q4 FSA feedback statement expected on FSCS Funding Model Review Q3/Q4 SUP/DISP: FSA policy statement to CP11/8: Data Collection: Retail Mediation Activities Return and complaints data expected July: FSA expected to publish information on Solvency II Directive (2009/138/EC) tools and techniques 1 July Remuneration: All firms newly within scope of FSA remuneration code must comply with FSA s Remuneration Code 1 July Remuneration/SYSC: The FSA proposed to amend the transitional provision relating to SYSC 19A, which states that firms previously subject to the remuneration code may be able to justify not complying with the requirement to pay 50% of variable remuneration in shares or other non-cash instruments, provided they take reasonable steps to comply as soon as reasonably possible and in any event by 1 July It is planning to extend this transitional provision for up to one year (until 1 July 2012 at the latest) for firms that meet certain conditions 1 July DISP/UCITS IV: Changes to FSA s complaints handling rules in DISP relating to UK implementation of UCITS IV Directive (2009/65/EC) take effect 1 July RDR: FSA Retail Distribution Review (Training and Competence) Instrument 2011 in force relating to qualification standards for retail investment advisers 6 July: Deadline for comments on chapter 3 of FSA quarterly consultation (CP11/11) REGULATORY 8 July RDR: Deadline for comments on FSA CP11/8: data collection in relation to the retail mediation activities return (RMAR) and complaints data. The FSA intends to publish a policy statement 8 in the second half of July Deadline for comments on FSA CP11/09: Strengthening Capital Standards 3 further consultation on CRD3 19 July New FSA structure: The Financial Services Regulation Bill should have its first reading before parliament s summer recess (currently scheduled for 19 July 2011) 21 July CASS: Deadline for CASS medium and large firms to complete and submit the first client money and asset return (CMAR) for June July: The FSCS must complete a formal verification process before this date to determine whether sample SCV files submitted by deposit-takers are capable of being submitted to it and are compatible with its systems Later half of 2011 CASS: If FSA proceeds with its proposals on auditors reports, then auditors reports for periods ending 30 June 2011 and onwards will be required to meet the new requirements. This would require audit firms to use the new templates and amend their procedures in the later half of August: Deadline for comments on remaining chapters of FSA quarterly consultation (CP11/11) 9 August: Deadline for comments on FSA Dear CEO letter (dated 14 June 2011) sent to the chief executive officers of firms in the wealth management sector 31 August: Deadline for comments on FSA CP11/10: Consumer complaints: The ombudsman award limit and changes to complaints-handling rules 1 September DISP: Remaining changes to FSA s complaints handling rules in DISP take effect, including additional guidance and requirement for firms to identify a senior individual responsible for complaints handling 21 September Deadline for comments on FSA CP11/12 on its proposal for a new regulatory guide on financial crime. The FSA intends to publish a policy statement, with feedback on CP11/12 and a final version of the guide, in the fourth quarter of September CASS: FSA has extended the transitional period before the rules on the auditor s client assets report (PS11/5) come into effect to 29 September Auditors client assets reports with a period ending 30 September 2011 and onwards will, however, be required to follow the new rules Summer New FSA structure: FSA intends to publish a paper setting out further details of the new Financial Conduct Authority regulatory philosophy

4 Q3 PRODUCTS Q3 With-profits: FSA due to publish policy statement to consultation on reform of its with-profits regime (CP11/5) Q3 PCC: Feedback statement and made text on joint FSA and HMT consultation on introducing a protected cell regime for OEICs expected 1 July Money market funds: ESMA guidelines on a common definition of European money market funds will come into force on this date. However, money market funds that existed before this date will be given an additional six months (until 31 December 2011) to comply with the guidelines in relation to all investments acquired prior to that date. ESMA expects any funds that do not intend to comply with the guidelines to make this clear in their documentation from 1 July July UCITS IV: UCITS IV Directive comes into force and level 2 implementing regulations apply from this date 1 July Covered bonds: Deadline for responses to FSA and HMT joint consultation paper on a review of the UK s regulatory framework for covered bonds 16 July Commodity Futures Trading Commission (CFTC) due to publish final rules by this date, the deadline for swaps rulemaking under Dodd Frank MARKETS 29 July Corporate governance: Last date for responses to the FRC s consultation paper on whether the UK Corporate Governance Code should be revised to require listed companies to establish a policy on boardroom diversity, following Lord Davies report Women on boards 8 August FSA s new surveillance and monitoring system, Zen, goes live (replacing existing Sabre II system) 30 August AML: Deadline for comments on HMT proposals on the review of the Money Laundering Regulations September Financial Services Bill: Deadline for comments on HMT paper on a new approach to financial regulation: the blueprint for reform, which includes the white paper on its proposals for reforms to the UK financial services regulatory structure and a draft of the Financial Services Bill, the primary legislation which will bring the reforms into effect 12 September ICB due to publish its final report and recommendations on UK banking reform to the government on this date 30 September FSA expects all reporting firms to be compliant with either scenario 5a (report from the sell side) or 5b (report from the sell side) of Euroclear UK & Ireland s revised version of its guide to transaction reporting under MiFID via the CREST approved reporting mechanism (ARM) by this date 30 September Corporate governance: EBA expects its members to implement its updated guidebook on internal governance and to incorporate it within supervisory procedures by this date By end September ICB due to make recommendations to the government on structural and related non-structural reforms to the UK banking sector to promote financial stability and competition MARKETS Mid-2011 New FSA structure: HMT to introduce primary legislation for the UK regulatory structure to parliament Second half of 2011 The FRC will undertake annual monitoring of the take-up and application of the Stewardship Code, which will begin in the second half of 2011 July AML: FAFT expects to have completed its initial consideration on global standards for combating money laundering and terrorist financing in July. At that time, it will consult on its initial proposals in these areas 1 July Bribery Act 2010 to come into force 1 July All new borrowing customers to be provided with plain language guides to the new edition of the Lending Code 1 July Deadline for response to OECS draft consultation paper on regulatory policy and guidance 4 July Consultation on Independent Commission on Banking s (ICB) interim report on UK banking reform closes to responses

5 Q3 TAX 31 August Deadline for responses to HMT consultation paper on abolition of 36 tax reliefs Summer EC due to publish proposals for taxation of the financial sector. This follows its consultation on the options for a financial transactions tax and/or a financial activities OTHER 1 July CRAs: Deadline for national regulators to transfer regulatory responsibility for EU credit rating agencies to ESMA 21 July Dodd Frank: Last date for registration with the Securities and Exchange Commission as an investment adviser under the Dodd Frank Act. Extended to 30 March 2012 for private adviser registration and reporting September CRAs: EC to publish legislative proposal for further amendments to Regulation on credit rating agencies (1060/2009/EC) (CRA III)

6 Q EU Autumn EC due to publish final evaluation report and Green Paper on Professional Qualifications Directive Q4 ESMA, EBA and EIOPA due to publish guidelines on colleges for financial conglomerates Q4 Remuneration: EBA to carry out study to review implementation of CEBS remuneration guidelines (in response to concerns regarding convergent application within EEA of CEBS guidelines and CRD 3 remuneration provisions) Q4 BIPRU/SUP: FSA policy statement to CP11/6: use of non-eea rules in calculating group capital requirements expected October MAD: EC due to adopt legislative proposals on revision to the Market Abuse Directive October MiFID: EC due to adopt legislative proposal on revision to MiFID October OTC derivates: FSB due to publish a further progress report on the implementation of reforms in this area October Commission due to publish amended Transparency Directive 16 November AIFMD: ESMA due to respond to the EC on its request for technical advice on level 2 measures relating to the AIFM Directive 21 November CASS: The first CMAR submission is due by this date 31 December CRD 3: EBA expects its members to implement the finalised guidelines on changes to firms advanced measurement approaches (AMAs) by this date. Its revised framework on common reporting (COREP), which is used by credit institutions and investment firms when reporting their solvency ratio under the CRD, will apply from this date 31 December CRD 3: Majority of its provisions concerning capital adequacy will take effect no later than 31 December End of Q4 CFDs: EU negotiations on EC s proposed Regulation on short selling and credit default swaps (CDS) expected to conclude End 2011 Basel: BCBS intends to carry out a fundamental review of the trading book framework, to be completed by the end of 2011 End 2011 EC due to adopt proposals on remaining financial reform measures End 2011 Corporate governance: Further green paper on corporate governance in financial institutions expected End 2011 Possible EU regulation on short selling/credit default swaps expected End 2011 New EU financial reporting framework (FINREP rev3) due to be published End 2011 Derivatives: Legislation on market infrastructure expected End 2011 EC s revision of Deposit Guarantee Schemes Directive expected to be completed REGULATORY Autumn OFT plans to publish a comprehensive and focused final version of its revised dept collection guidance by autumn Q4 CASS: FSA due to carry out a post-implementation review of the prohibition of general or omnibus liens Q4 FSA due to publish a consultation paper on the Compensation Review Q4 FSA due to publish a consultation paper on the amending directive to the Prospectus Directive Q4 FSA due to publish a policy statement on the use of non-eea rules in calculating group capital requirements 1 October CASS: The operational oversight function enters into force. Medium and large CASS firms will have until this date to apply for, and receive approval from the FSA for, an individual to perform CF10aSmall CASS firms will be able to rely on their apportionment of the CASS operational oversight function, without applying for FSA approval 1 October CASS: Final rules come into force implementing the Client Money and Assets Return (CMAR) through GABRIEL (the FSA s online information gathering system) for CASS medium and large firms. Client Assets Sourcebook (Enhancement) Instrument 2010 effective in part bringing in changes to strengthen client asset protection 14 November COBS: New rules on the removal of the mobile phone exemption from the FSA s taping rules in COBS come into force 31 December Remuneration: Deadline for firms to make their first disclosure in respect of 2010 remuneration 31 December CRD 3: The FSA s instrument, the Capital Requirements Directive (Handbook Amendments no 3) Instrument 2011, as set out in Appendix 1 to CP11/9 (Strengthening Capital Standards 3 further consultation on CRD3) comes into force and firms within the scope of CRD need to be compliant at this date 31 December IPRU(INV): Capital Resources and Professional Indemnity Insurance Requirements for Personal Investment Firms Instrument 2009 effective in part making changes to the capital resources, requirements and professional indemnity rules for personal investment firms Late 2011/early 2012 AIFMD: Subject to the completion of the EU legislative process, the FSA will consult on the implementation of the proposed AIFM Directive

7 Q4 PRODUCTS October OTC derivatives: FSB to publish progress report on implementation of OTC derivatives market reform 1 October PPI: Information requirements under the Competition Commission s Payment Protection Insurance Market Investigation Order 2011 come into force 13 November Derivatives: FSA s revised guidance on reporting of on-exchange derivative transactions conducted through exchange platforms comes into force (GC11/11) TAX OTHER 1 November New tax-free children s savings accounts (Junior ISAs) due to become available Autumn REITs: Draft legislation expected to be published in the autumn for inclusion in the Finance Bill 2012 End 2011 CRAs: Further amendments to the Credit Rating Agencies Regulation expected Q4 EBA due to conduct an implementation study on its guidelines on the management of operational risk in market-related activities Q4 AML: ESMA, EBA and EIOPA due to publish guidance in some areas of supervisory implementation practices in the 3rd AML Directive, including cooperation surrounding AML supervision of agents of payment services institutions. It is also due to provide guidance in some areas on AML issues regarding the Second Electronic Money Directive October AML: FATF to revise the recommendations on global standards for combating money laundering and terrorist financing, in the light of responses to its consultations, by October October Government intends to bring the FOS under the Freedom of Information Act s scope by this date 31 October BCBS has agreed a co-ordinated start date of no later than 31 December for all of the July 2009 trading book measures to allow supervisors greater flexibility for the implementation of the revisions to the Basel II market risk framework 13 November Deadline for firms to use FSA ZEN reporting system (as replacement for Sabre II) 22 November Tripartite Authorities (that is, the FSA, HMT and the Bank of England) confirm date for market-wide exercise (MWE)). The main objective of MWEs is to improve the financial sector's preparedness by providing opportunities to test, review and update plans to deal with a range of major operational disruptions 31 December The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2009 extend the sunset clauses in the Financial Services and Markets Act 2000, so that sections 118(4) (misuse of information) and 118(8) (behaviour likely to give rise to false or misleading impressions or to distort the market) and related ancillary provisions remain in force until this date Before end 2011 Financial Services Bill: The government aims to introduce the Bill formally into parlament before the end of 2011 End of Q4 EC, Council of the EU and European Parliament due to reach political agreement on revisions to MAD MARKETS

8 During 2011 During 2011 Corporate Governance: EC legislative or non-legislative proposals on corporate governance in financial institutions and remuneration policies previously advised due to be adopted During 2011 EC legislative proposal for amendments to the Financial Conglomerates Directive could take effect in 2011 During 2011 ESMA due to publish a consultation paper on proposed measures for developing pan-european access to financial information, which it hope will harmonise and enhance search facilities for financial information disclosed by European listed companies During 2011 BCBS due to publish an impact study on its proposals to update its rules for the capitalisation of bank exposures to central counterparties and it intends to finalise the rules in 2011 PRODUCTS During 2011 Corporate bonds: A consultation by HMT/FSA on the UK covered bond framework is due to take place EU MARKETS During 2011 AML: OFT plans to formulate and publish its future supervisory approach under the Money Laundering Regulations 2007, to implement its revised approach under the Regulations and to formulate its full penalty policy under the Regulations During 2011 AML: HMT to publish response to call for evidence on Money Laundering Regulations 2007 (SI 2007/2157) (2007 Regulations) REGULATORY Throughout 2011 CASS: Changes to the FSA Handbook to implement the new client asset rules and guidance will come into force throughout the course of 2011 During 2011 RDR: FSA feedback statement to DP10/2 due During 2011 CASS: FSA to conduct a post-implementation review to assess compliance with the FSA s new rules on title transfer collateral arrangements (TTCAs) in CASS 6 (custody rules) and CASS 7 (client money rules) which prevent certain firms (including spread betting and contracts for differences (CfD) firms) from entering into TTCAs with retail clients During 2011 FSA liquidity requirements may be amended in light of international agreement in this area During 2011 Remuneration: The new executive remuneration disclosure regime under the FS Act 2010 is due to come into force for annual reports in respect of 2010 that are issued in 2011 During 2011 New FSA framework for approved persons performing significant influence functions (SIFs) expected to enter into force. (The new framework was due to enter into force on 1 May 2011, but has been deferred by the FSA until further notice) During 2011 AML: EC to continue review of Third Money Laundering Directive (2005/60/EC) (MLD 3) TAX During 2011 The Government will hold discussions with industry and formal consultations on a range of issues concerning the asset management sector, including UCITS IV implementation, introducing a tax transparent contractual fund vehicle, taxation of Investment Trust Companies and Funds Investing in Non-Reporting Funds (FINROF) regulations, and Stamp Duty Reserve Tax (SDRT) Schedule 19 in the context of investments in underlying funds

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