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DLA Piper has partnered with ITN Productions and FINTECH Circle on their Future of Fintech programme which explores the global fintech sector and the opportunities and the challenges within the industry in 2020 and beyond.
Regulators around the world are seeing the importance of strategic focus on the development of financial technology as it is increasingly a driver for improved financial services across markets. Previously viewed as a threat to the stability of the financial system regulators around the world are now seeing the opportunities and getting behind the safe development of technological innovation in core financial services activities.
On 28 October 2020, the Financial Conduct Authority (FCA) published a policy statement titled 20/12: Extending the implementation deadlines for the Certification Regime and Conduct Rules (PS20/12). PS20/20 summarises the feedback received from its consultation on extending the implementation deadlines for the Senior Managers & Certification Regime and Conduct Rules as well as outlining its finalised rules for the extended guideline.
CJEU case on PSD2 interpretation: C-287/19 DenizBank AG v Verein für Konsumenteninformation on the interpretation of Directive 2015/2366 on Payment Services (PSD2)
On 11 November 2020, the First Chamber of the Court of Justice of the EU (CJEU) published a preliminary ruling in the case of Denizbank AG v Verein fur Konsumenteninformation (Case C-287/19) on the interpretation of the revised PSD2.
Fitness and Probity back in the spotlight: Time to start preparing for the Individual Accountability regime?
On the 17 November 2020, the Central Bank of Ireland (CBI) published a "Dear CEO" letter to Regulated Financial Service Providers (RFSPs). This letter was published following a thematic inspection by the CBI of a sample of firms in the insurance and banking sectors. The purpose of the inspection was to assess the level of compliance with Fitness and Probity (F&P) requirements and follows on from a similar CBI letter in 2019.
We are seeing more new loans referencing SONIA from day 1, as more lenders get their IT systems ready to handle compounded RFR rates, and the publication by the LMA of a form of “switch agreement” (for a loan based on LIBOR on day 1 but ready to switch to SONIA some time during 2021) has provided impetus.
The consultation, which began on Wednesday 18th November and runs until 18th January 2021, contains no surprises for FinBrief readers, but there are a few pointers. As readers know, the onshored BMR will be amended by the Financial Services Bill to empower the FCA to approve a so-called “synthetic LIBOR” for use even after it has ceased to be representative of the underlying economic reality it purports to represent.
On the 2nd of July 2019, the French banking and financial authorities, the ACPR and AMF announced the implementation of a framework aimed at monitoring and assessing the commitments related notably to the evaluation of the impacts of climate changes in the banking and finance industry, and made by Paris financial center participants (banks, insurers and asset management companies) as part of the wider “Paris financial center” group and initiative. The findings of such framework will be reported upon annually and the a more comprehensive report is expected to be published and the end of 2020.
On 9 November 2020, the HM Treasury announced it would grant equivalence decisions for member states of the European Economic Area (EEA) across a number of financial services areas. Following this, the Financial Conduct Authority (FCA) has updated its webpage providing useful guidance on how this equivalence framework will work.