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

Key developments in June 2024:

28 June

PRIIPs Regulation: The Joint Committee of the European Supervisory Authorities (“ESAs”) published an updated version of its Q&As (JC 2023 22) on the Key Information Document under the PRIIPS Regulation (EU/1286/2014).

FCA Handbook: The UK Financial Conduct Authority (“FCA”) published Handbook Notice 120, which sets out changes to the FCA Handbook made by the FCA board on 27 June 2024.

27 June

Appointed Representatives: The FCA published a new webpage for firms with overseas appointed representatives.

Cryptoassets: The European Banking Authority (“EBA”) and European Securities and Markets Authority (“ESMA”) published a joint final report (EBA/GL/2024/09 / ESMA75-453128700-10) 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”).

FCA Round-up: The FCA has published its regulation round-up for June 2024, which includes items on the consumer duty, investment labels and the firm details attestation form.

Bank of England Financial Policy Committee: The Bank of England published the financial policy summary and record of the meeting of its Financial Policy Committee on 11 June 2024, including commentary on the private equity industry.

26 June

Consumer Duty: The FCA published its findings following a multi-firm review of 20 large insurance firms in outcomes monitoring under the Consumer Duty. Please refer to our dedicated article on this topic here.

AML / CTF: The EBA published a press release welcoming the new package of legislative proposals designed to strengthen and modernise the EU anti-money laundering (“AML”) and counter-terrorist financing (“CTF”) framework. It has also set out its AML and CTF priorities for 2024/25.

25 June

Investment Firms Regulation: Delegated Regulation (EU) 2024/1771 containing regulatory technical standards (“RTS”) specifying the details of the scope and methods for prudential consolidation of an investment firm group under the Investment Firms Regulation (EU/2019/2033) was published in the Official Journal of the European Union.

20 June

Digital Trading: The FCA published a research note on digital engagement practices of trading apps.

19 June

AML: The Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (EU/2024/1624), the Regulation establishing the Anti-Money Laundering Authority (AMLA) (EU/2024/1620) and the Sixth Money Laundering Directive (EU/2024/1640) have been published in the Official Journal of the European Union (here, here and here).

ESG: The Network for Greening the Financial System published the second edition of its guide on climate-related disclosure for central banks.

Cryptoassets: The EBA has published final reports containing draft RTS, implementing technical standards (“ITS”) and one set of guidelines under MiCA (here, here, here and here). They relate to supervisory colleges, liquidity stress tests and asset-referenced and e-money tokens.

18 June

Artificial Intelligence: The European Commission published a targeted consultation on AI in the financial sector to inform Commission services on the concrete application and impact of AI in financial services, considering the development in the different financial services use cases.

ESG: The ESAs published a joint opinion (JC 2024 06) on the assessment of the Sustainable Finance Disclosure Regulation ((EU) 2019/2088) (“SFDR”). Please refer to our dedicated article on this topic here.

Capital Markets Union: The European Commission has published a speech given by Mairead McGuinness, European Commissioner for Financial Services, Financial Stability and Capital Markets Union. Among other things, the speech announced a delay to the European Commission applying the market risk reforms in the EU banking sector.

ESG / Securitisation: Commission Delegated Regulation (EU) 2024/1700 was published in the Official Journal of the EU. The Delegated Regulation supplements the Securitisation Regulation ((EU) 2017/2402) with regard to regulatory technical standards specifying, for simple, transparent and standardised non-ABCP traditional securitisation, and for simple, transparent and standardised on-balance-sheet securitisation, the content, methodologies and presentation of information related to the principal adverse impacts of the assets financed by the underlying exposures.

17 June

Market Abuse: The European Commission published a report (COM(2024) 248 final) on the delegation of power to adopt delegated acts conferred on it by the Market Abuse Regulation (596/2014).

12 June

Retail Investment Package: The Council of the European Union published a press release announcing that it has agreed its negotiating position on the retail investment package, which consists of the proposed Directive on retail investment protection (referred to as an “Omnibus Directive”) and the proposed Regulation amending the PRIIPs Regulation (1286/2014).

MiFIR: The European Commission published for consultation a draft Delegated Regulation supplementing the Markets in Financial Instruments Regulation (600/2014) (“MiFIR”) as regards OTC derivatives identifying reference data to be used for the purposes of the transparency requirements laid down in Articles 8a(2), 10 and 21 of MiFIR.

Benchmarks Regulation: The European Commission published a report (COM(2024) 244 final) on the delegation of power to adopt delegated acts conferred on it by the Benchmarks Regulation (EU/2016/1011).

6 June

Cryptoassets: The EBA has published final reports (here, here and here) containing RTS and guidelines covering governance, conflicts of interest and remuneration under MiCA.

5 June

Market Outages: The International Organization of Securities Commissions (“IOSCO”) published its final report on market outages (FR/043/24).

4 June

ESG: The European Supervisory Authorities ESAs published their final reports on greenwashing in the financial services sector (here, here and here).

3 June

Leveraged Loans / CLOs: IOSCO published its final report on good practices in the leveraged loan and collateralised loan obligation (“CLO”) markets.

Investment Firms Regulation: The EBA published a discussion paper (EBA/DP/2024/01), produced jointly with ESMA, concerning the European Commission’s call for advice on the investment firms prudential framework in the Investment Firms Regulation (EU/2019/2033) and the Investment Firms Directive (EU/2019/2034).

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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.