Welcome to the UK Regulation Round Up, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.

Key developments in October 2023:

31 October

Fund Tokenisation: The Financial Conduct Authority (“FCA”) published a press release announcing that it has joined the Monetary Authority of Singapore’s Project Guardian, a collaborative initiative with the financial industry that explores fund and asset tokenisation use cases and decentralised finance.

Capital Requirements: The Prudential Regulation Authority (“PRA”) published a discussion paper (DP3/23) on capital requirements relating to securitisations.

Cryptoassets: The Committee on Payments and Market Infrastructures (“CPMI”) published a report on considerations for the use of stablecoin arrangements in cross‑border payments.

Cryptoassets: HM Treasury published a response to its consultation paper on managing the failure of systemic digital settlement asset (including stablecoin) firms.

Market Abuse: The FCA published issue 75 of its Market Watch newsletter, which sets out its observations on market soundings and minimising the risk of insider dealing and unlawful disclosure.

30 October

Cryptoassets: HM Treasury published a response to its consultation paper and call for evidence on the UK regulatory approach to cryptoassets.

Cryptoassets: HM Treasury published an update on its plans for the regulation of fiat‑backed stablecoins.

27 October

FCA Handbook: The FCA published Handbook Notice 113, which sets out changes to the FCA Handbook.

MiFID II / MiFIR: The European Securities and Markets Authority (“ESMA”) published an updated version of its Q&As on transparency topics under the Markets in Financial Instruments Directive (2014/65/EU) (“MiFID II”) and the Markets in Financial Instruments Regulation (600/2014) (“MiFIR”).

26 October 

ECCTA: The Economic Crime and Corporate Transparency Act (“ECCTA”) received Royal Assent. Please refer to our dedicated article on this topic here.

FCA Regulation Round-up: The FCA published its regulation round-up for October 2023.

AI: The PRA and FCA published a feedback statement (PRA FS2/23 / FCA FS23/6) on the use of artificial intelligence (“AI”) and machine learning in financial services, following their October 2022 discussion paper (PRA DP5/22 / FCA DP 22/4) on this topic.

25 October 

Edinburgh Reforms: HM Treasury published a letter from Jeremy Hunt, Chancellor of the Exchequer, to Harriet Baldwin, Chair of the House of Commons Treasury Committee, providing a breakdown of progress in implementation of the Edinburgh Reforms.

ESG: ESMA published a report (ESMA32-992851010-1098) on a fact‑finding exercise it has conducted on corporate reporting practices under the Taxonomy Regulation ((EU) 2020/852).

ESG: ESMA published a report on disclosures of climate‑related matters in financial statements (ESMA32-1283113657-1041).

Cryptoassets: The FCA published a statement warning about common issues with cryptoasset marketing.

24 October

UK / EU Collaboration: HM Treasury published a policy paper setting out a joint statement with the European Commission on the first EU-UK Financial Regulatory Forum, which was held on 19 October 2023.

Bonus Cap: The PRA and the FCA jointly published a policy statement (PS9/23 / PS23/15) on the ratio between fixed and variable components of total remuneration (i.e. the “Bonus Cap“). 

Systemic Importance: The PRA published a policy statement (PS13/23) on updating binding technical standards in the on shored version of Commission Delegated Regulation (EU) No 1222/2014 on the methodology for identifying global systemically important institutions (“G-SIIs”).

20 October

ESG: Two Commission Notices under the EU Taxonomy Regulation ((EU) 2020/852) and the EU Taxonomy Climate Delegated Act ((EU) 2021/2139) have been published in the Official Journal of the European Union (here and here).

Cryptoassets: The European Banking Authority (“EBA”) and ESMA published a joint consultation paper on two sets of guidelines on suitability assessments of the management body and holders of qualifying holdings under the Regulation on markets in cryptoassets ((EU) 2023/1114) (“MiCA”).

19 October

Cryptoassets Regulation: The EBA launched consultations (herehere, and here) on regulatory technical standards (“RTS”) and guidelines under MICA.

SecuritisationEuropean Commission delegated regulation (EU) 2023/2175 supplementing the EU Securitisation Regulation ((EU) 2017/2402) with regard to RTS specifying in greater detail the risk retention requirements for originators, sponsors, original lenders and servicers has been published in the Official Journal of the European Union.

MiFID II / MiFIR: The Council of the EU published final compromise texts (here and here) for proposed amendments to MiFIR and MiFID II that reflect the provisional political agreement that was reached with the European Parliament in June 2023.

EBA Priorities: The EBA published its Supervisory Examination Programme for 2024 (EBA/REP/2023/35).

17 October

Cryptoassets: The Basel Committee on Banking Supervision published a consultation (BCBS556) on banks’ disclosure of cryptoasset exposures.

European Commission Priorities: The European Commission published its Work Programme for 2024 (COM(2023) 638 final).

International Competitiveness: The FCA published a speech given by Nikhil Rathi, FCA Chief Executive, in which he focused on the FCA’s new secondary objective to support international competitiveness and growth over the medium to long term.

13 October

MiFID II / MiFIR: ESMA published an updated version of its Q&As on market structures under the MiFID II and the MiFIR.

ESG: The Financial Stability Board (“FSB”) published its 2023 progress report on climate‑related disclosures.

12 October

ESG: The EBA published a report on the role of environmental and social risks in the prudential framework (EBA/REP/2023/34).

TCFD: The Task Force on Climate‑related Financial Disclosures (“TCFD”) published its sixth and final status report.

Asset Management Regulation: The FCA published a speech by Ashley Alder, FCA Chair, on its priorities for updating and improving the UK regime for asset managers.

11 October

EURIBOR: The European Money Markets Institute published a consultation paper on proposed changes to the hybrid methodology for EURIBOR.

Financial Stability: The FSB published its 2023 annual report on promoting global financial stability.

10 October

ESG: The European Parliament’s Economic and Monetary Affairs Committee published a draft report on the European Commission’s legislative proposal for a Regulation on the transparency and integrity of ESG rating activities.

Market-Based Finance: The Bank of England published a Financial Stability in Focus publication setting out the approach of the Financial Policy Committee (“FPC”) to assessing risks in market‑based finance and the ways it intends to develop this approach.

Financial Policy Committee: The Bank of England published the financial policy summary and record of the meetings of its FPC on 26 September and 5 October 2023.

09 October

ESG: The UK Transition Plan Taskforce published its final disclosure framework for climate transition plans and accompanying implementation guidance. Please refer to our dedicated article on this topic here.

Payments: The FSB published a consolidated progress report for 2023 on the G20 roadmap for enhancing cross‑border payments, together with a key performance indicators monitoring report.

06 October

AI: The FCA published a speech by Jessica Rusu, FCA Chief Data, Information and Intelligence Officer on AI in financial services.

05 October

Securities Settlement: ESMA published a call for evidence on the potential impact of shortening the securities settlement cycle.

Cryptoassets: ESMA launched a consultation on its second set of RTS and implementing technical standards (“ITS”) under MICA

ESG: The Green Technical Advisory Group published a report on creating an institutional home for the UK green taxonomy.

PRIIPS: The European Parliament’s Economic and Monetary Affairs Committee published a draft report (PE753.665v01-00) on the European Commission’s legislative proposal for amendments to the Regulation on key information documents for packaged retail and insurance‑based investment products (1286/2014) (“PRIIPs Regulation”).

Retail Investment Protection: The European Parliament’s Economic and Monetary Affairs Committee published a draft report (PE753.711v01-00) on the European Commission’s legislative proposal for a Directive on retail investment protection (2023/0167(COD)).

03 October

ESG / MiFID II: ESMA announced that in 2024, it will launch and carry out a common supervisory action with national competent authorities on the integration of sustainability in firms’ suitability assessment and product governance processes and procedures under MiFID II.

02 October

ESG: ESMA published a trends, risks and vulnerabilities risk analysis report (ESMA50-524821-2931) on ESG names and claims in the EU funds industry.

AI: The International Regulatory Strategy Group (“IRSG”) published its response to the AI white paper that was published by the Department for Science, Innovation and Technology, and Office for Artificial Intelligence in March 2023.

UK / US Collaboration: HM Treasury published a joint statement by the UK-US Financial Regulatory Working Group following its eighth meeting, which took place on 6 September 2023.

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Photo of John Verwey John Verwey

John Verwey is a partner in the Private Funds Group. John advises on a wide number of regulatory issues at a national UK and European level, including firm authorisations, appointed representative arrangements, change in control, market abuse. He represents a variety of clients…

John Verwey is a partner in the Private Funds Group. John advises on a wide number of regulatory issues at a national UK and European level, including firm authorisations, appointed representative arrangements, change in control, market abuse. He represents a variety of clients that range from small start-up fund managers to established global fund advisers and managers.

A particular area of focus for John is Alternative Investment Fund Managers Directive (AIFMD) and Markets in Financial Instruments Directive II (MiFID II).  This includes advising on pre-marketing and marketing strategies for fund managers, advising on the Level One and Lever Two requirements under AIFMD and implementing UK rules and legislation, and advising on the organizational and conduct of business requirements under MiFID II.

Photo of Andrew Wingfield Andrew Wingfield

Andrew Wingfield is an M&A partner and member of the Private Capital Team.

Andrew undertakes a broad range of domestic and cross-border corporate and commercial work for both corporate and private equity clients, advising on acquisitions and disposals, joint ventures, mergers and public…

Andrew Wingfield is an M&A partner and member of the Private Capital Team.

Andrew undertakes a broad range of domestic and cross-border corporate and commercial work for both corporate and private equity clients, advising on acquisitions and disposals, joint ventures, mergers and public takeovers, flotations and equity capital markets and private equity investment.

Andrew is called upon by financial institutions, private equity houses, management and corporates to lead on complex and high-value transactions. Andrew has a very strong financial institutions practice and has been recognized by Chambers UK and Legal 500 in recent years as the “go-to regulatory M&A lawyer” for regulated institutions such as banks, lenders, payment providers, insurance companies, wealth managers or other financial institutions transactions.

In addition, Andrew is widely recognized as a leading M&A and private equity lawyer. In Chambers UK, Andrew has been noted as “dynamic and commercial” and for providing “tailored, practical advice.” A client told Legal 500, “Andrew Wingfield – best lawyer I ever worked with. Super helpful, goes extra mile where needed.”

Photo of Richard Bull Richard Bull

Richard Bull is a partner in the Corporate Department and a member of our Private Equity and Mergers & Acquisitions Groups.

Richard advises on a wide range of corporate work, including M&A, private investments, corporate venturing, joint ventures and corporate restructurings. Richard has…

Richard Bull is a partner in the Corporate Department and a member of our Private Equity and Mergers & Acquisitions Groups.

Richard advises on a wide range of corporate work, including M&A, private investments, corporate venturing, joint ventures and corporate restructurings. Richard has extensive experience of acting on private equity, growth and expansion capital transactions of all types and sizes for sponsors and management teams, both of a domestic and international nature, with a particular focus in the financial services and technology industries.

Richard is described by Legal 500 “as one of the most capable PE lawyers in the market” and “truly excellent.” Richard was also identified by a survey of private equity sponsors undertaken by The Lawyer as one of the top private equity lawyers based in London, and as a highly regarded private equity and M&A lawyer by IFLR 1000.

Photo of Oliver R. Howley Oliver R. Howley

Oliver Howley is a partner in Proskauer’s Technology, Media & Telecommunications Group. He is a trusted advisor to businesses in the technology, manufacturing, sports and financial services sectors, providing valued input on IP, technology and data-related strategies and transactions.

Oliver is a multi-specialist…

Oliver Howley is a partner in Proskauer’s Technology, Media & Telecommunications Group. He is a trusted advisor to businesses in the technology, manufacturing, sports and financial services sectors, providing valued input on IP, technology and data-related strategies and transactions.

Oliver is a multi-specialist, with a day-to-day practice covering commercial contracts, IP, technology and data protection work. He regularly advises on the structuring and terms of contracts relating to the creation, licensing and monetisation of technology and data products, with a particular focus on machine learning and artificial intelligence systems. He also has extensive experience in advising on the IP, technology, data and carve-out aspects of corporate transactions (including joint ventures, acquisitions, disposals and investments) and on sponsorship, image rights and endorsement deals in the sports sector.

Oliver has been recognized as a “Rising Star” in The Legal 500 for consecutive years. Recent professional directories note that “no matter how complex the landscape, no detail escapes [Oliver’s] attention” and that his “logical… and forensic analytical approach make him a force to be reckoned with”. He also receives praise for his commercial contracts work and “niche in robotics and artificial intelligence”.

Photo of Mary Wilks Mary Wilks

Mary Wilks is an antitrust partner in the Corporate Department and a member of our Private Equity Transactions and Mergers & Acquisitions Groups.

Mary advises on a broad range of EU and UK competition law issues, including multijurisdictional mergers, behavioral investigations, complex supply…

Mary Wilks is an antitrust partner in the Corporate Department and a member of our Private Equity Transactions and Mergers & Acquisitions Groups.

Mary advises on a broad range of EU and UK competition law issues, including multijurisdictional mergers, behavioral investigations, complex supply and distribution arrangements, and foreign investment controls including, notably, the UK’s newly adopted National Security and Investment Act. She advises clients on the competition aspects of transactions including M&A, equity investments, consortium transactions and secondaries.

Mary works across all sectors, with particular experience in consumer products, healthcare, TMT and financial services.

Mary regularly counsels clients on their engagement with the Competition and Markets Authority, the European Commission, and other prominent international enforcement agencies and regulatory authorities.

Mary Wilks has a reputation as an “excellent lawyer” who “plays a leading role on a range of high-profile cases.” According to sources, “She is always fully on top of the detail but also able to pull out the most important points for the case.

Prior to joining Proskauer, Mary was a counsel in the antitrust, competition and trade department at another leading law firm in London.

Photo of Rachel Lowe Rachel Lowe

Rachel E. Lowe is a special regulatory counsel in the Corporate Department and a member of the Private Investment Funds Group.

Rachel advises on financial services regulation specializing in sustainable finance and ESG regulation. She has particular expertise in drafting and advising on…

Rachel E. Lowe is a special regulatory counsel in the Corporate Department and a member of the Private Investment Funds Group.

Rachel advises on financial services regulation specializing in sustainable finance and ESG regulation. She has particular expertise in drafting and advising on the Sustainable Finance Disclosure Regulation (SFDR) and the Taxonomy Regulation. Rachel has also supported with EU MiFID and AIFMD sustainability updates for clients, including from a governance and organizational perspective, as well as providing drafting and training support. She also advises on the Corporate Sustainability Reporting Directive (CSRD), including analysis of its applicability for large international group structures.

From a UK perspective, Rachel supports clients with the TCFD-related requirements in the Financial Conduct Authority’s ESG Sourcebook and is increasingly engaged on the UK’s Sustainability Disclosure Requirements (SDR).

More broadly, Rachel has worked with litigation colleagues to assist clients with understanding and mitigating greenwashing-related legal and regulatory risk.

Photo of Amar Unadkat Amar Unadkat

Amar Unadkat is a special regulatory counsel in the Corporate Department and a member of the Private Funds Group.

Amar advises on a variety of financial services regulatory and compliance matters both from a UK and European perspective. Amar regularly advises his clients…

Amar Unadkat is a special regulatory counsel in the Corporate Department and a member of the Private Funds Group.

Amar advises on a variety of financial services regulatory and compliance matters both from a UK and European perspective. Amar regularly advises his clients on issues relating to the Alternative Investment Fund Managers Directive (“AIFMD”), the second Markets in Financial Instruments Directive (“MiFID II”), as well as the latest ESG developments. Amar also focusses on UK regulatory compliance matters, including the FCA’s change of control regime, the appointed representative regime and the Senior Managers & Certification Regime.

Amar’s clients include private equity firms, investment managers and advisers, firms in the FinTech space, wealth management businesses, banks and sovereign wealth funds.

Photo of Sulaiman Malik Sulaiman Malik

Sulaiman Malik is an associate in the Corporate Department and a member of the Private Funds Group.

Sulaiman advises clients on a range of UK and international financial regulation. He advises private equity funds, hedge funds, sovereign wealth funds and other asset managers…

Sulaiman Malik is an associate in the Corporate Department and a member of the Private Funds Group.

Sulaiman advises clients on a range of UK and international financial regulation. He advises private equity funds, hedge funds, sovereign wealth funds and other asset managers, as well as banks, FinTechs, broker-dealers and governments.

Prior to joining Proskauer, Sulaiman trained at Simmons & Simmons in London, where he was seconded to Brevan Howard. He has also spent time at the UK’s Ministry of Justice and as an adviser to the Mayor of Brisbane, in Australia.

Sulaiman is a passionate advocate for diversity and inclusion. He previously worked at Rare, a market-leading diversity consultancy, and provides pro bono legal advice to a range of community and civil rights organizations.

Photo of Michael Singh Michael Singh

Michael is an associate in the Private Funds Group in the Corporate Department.

Michael advises clients on a variety of regulatory issues both from a UK and European perspective. He also helps clients on fund related transactions. His clients include private equity firms…

Michael is an associate in the Private Funds Group in the Corporate Department.

Michael advises clients on a variety of regulatory issues both from a UK and European perspective. He also helps clients on fund related transactions. His clients include private equity firms, investment managers, FinTech companies and wealth management businesses.

He is dual-qualified as a German lawyer (“Rechtsanwalt”) and Solicitor of England and Wales and previously was in-house counsel at Deutsche Bank.