Financial Services Regulation and Compliance Bulletin - Cross Sectoral May 2019
Financial Services Regulation and Compliance Bulletin - Cross Sectoral May 2019
Speech by Director General Derville Rowland on CBI Expectations and Insights for Boards -
On 2 May 2019, the Director General of Financial Conduct Derville Rowland spoke at a Financial Services Industry board member event organised by Deloitte to discuss the CBI proposal for a SEAR. The rationale for the proposal was explained as including:
the insufficient nature of governance and oversight in the banking sector and the rapid decline of trust in Irish banks post-crisis
the FSB recommendation that national authorities hold individuals accountable
the range of powers the CBI both already have and use to keep unfit individuals out of the financial services industry
The Director General concluded by giving examples of what an effective culture looks like and encouraged firms to get on board with the cultural shift through employing leadership, persistence and consistency.
CBI publishes guidance notes for Payment and E-Money Institution Supplementary Returns 2019
On 14 May 2019, the CBI published guidance notes on how to complete the Supplementary Return for both payment institutions and e-money institutions and submit them on the CBI Online Reporting System.
Speech by Gerry Cross, Director Financial Regulation Policy and Risk onAccountability and Sustainability in financial regulation - Gerry Cross, Director Financial Regulation Policy and Risk
On 16 May 2019, Gerry Cross the Director of Financial Regulation Policy and Risk spoke to the ICSA Ireland Conference 2019 about Governance beyond Compliance. He focused on the concepts of enhanced accountability (in ensuring financial firms serve the interests of their own customers as well as the wider economy) and sustainability (in ensuring that this enhanced accountability is achieved over medium and long term) from a financial regulatory perspective.
Financial services enforcement: past, present and future - Seana Cunningham, Director of Enforcement and Anti-Money Laundering
On 17 May 2019, Director of Enforcement and AML Seana Cunningham spoke at the Professional, Regulatory and Disciplinary Bar Association's Annual Conference about recent developments in various areas of financial regulation and enforcement with a focus on providing some tips based on her experience as the regulator. The Director discussed AML/ CFT, Investigations, the ASP and Fitness and Probity regimes, protected disclosures (more commonly known as whistle-blowing) and reform, which focuses on their proposed Individual Accountability Framework.
"Given the potential far-reaching consequences of climate change, central banks are rightfully taking a greater interest" - Deputy Governor Sharon Donnery
Speaking at the Department of Finance and Sustainable Nation Ireland Conference on 17 May 2019, Deputy Governor of the CBI Sharon Donnery discussed the risks and opportunities arising from climate change. The Deputy Governor noted that financial losses and economic costs from more frequent extreme weather events relating to climate change are already evident, however pointed to opportunities which can be achieved by the private sector through technological innovation and investment. The CBI has also joined a new coalition of supervisors and central banks called "the Network for Greening the Financial System" with the aim of ensuring that financial systems and central banks are resilient towards climate related risks.
CBI publishes Guidance for Completion of the Schedule 2 Anti-Money Laundering Registration Form
On 20 May 2019, the CBI published a guidance document on the completion of the Schedule 2 Anti-Money Laundering registration form. Schedule 2 firms are those which have to register with the CBI for anti-money laundering purposes, which is a new statutory requirement introduced by section 108A of the Criminal Justice (Money Laundering and Terrorist Financing), (Amendment) Act 2018.
Financial Times FTfm Interview with Director General of the CBI, Derville Rowland
On 20 May 2019, Director General of Financial Conduct, Derville Rowland was interviewed by Siobhan Riding of the Financial Times. The Director spoke about her role as Head of the Financial Conduct Pillar, her responsibility within the funds industry for international consumer protection, her priorities for oversight of conduct in the funds industry, closet tracker funds, the tracker mortgage scandal, diversity within the financial services industry, the CBI and its role in ESMA and Brexit.
ESMA publishes latest double volume cap data and systematic internaliser regime data for equity, equity-like instruments and bonds
On 8 May 2019, ESMA updated its public register with the most recent set of data covering the period 1 April 2018 to 31 Mach 2019 for the double volume cap data under MiFID II.
On 10 May 2019, ESMA published the systematic internaliser regime data for equity and equity like instruments and bonds. The data covers the total number of trades and volumes relating to the period October 2018 – March 2019.
ESMA updates its Q&A tools
On 23 May 2019, ESMA provided an update to its Q&A tool in relation to:
The Benchmarks Regulation. ESMA has provided clarification on: the information included in the register of administrators of benchmarks; the determination of the Member State of reference; and the role of both the IOSCO principles and external audit in recognising third country administrators
The Central Securities Depositary Regulation (CSDR). ESMA has clarified aspects of internalised settlement reporting requirements under CSDR including matching; working days; and late instructions
Payment Services Directive 2. The update includes a new question regarding how a Payment Service Provider can avail of the exemption set out in Article 17 of the RTS in relation to Strong Customer Authentication and Common and Secure Communication
Public Consultation Final Draft – Mobile Initiated SEPA Credit Transfer Interoperability Implementation guidelines
On 22 May 2019, the ad-hoc multi stakeholder group on Mobile Initiated Credit Transfers (MSCT) published draft guidelines, as part of a public consultation. The creation of the MSCT was facilitated by the European Payments Council and is comprised of technical experts with a pan-European reach. This multi stakeholder group aims to: provide insights in to the main issues related to SEPA Credit Transfers in different payment contexts; focus on the technology and security used in the Customer to Account Servicing Payment Service Providers area; specify various security guidelines for MSCT; and identify the main interoperability issues and barriers detected for MSCTs. The deadline for responses to the consultation is 24 August 2019.
Delegated Regulation extending clearing obligation enters in to force on 30 April 2019
The Commission Delegated Regulation (EU) 2019/667 of 19 December 2018 amending Delegated Regulations (EU) 2015/2205, (EU) 2016/592 and (EU) 2016/1178 to extend the dates of deferred application of the clearing obligation for certain over-the-counter derivative contracts entered in to force. The Delegated Regulation reflects a mandate from EMIR to extend exemptions from the clearing obligation for certain intra-group transactions until December 2020.
Commission publishes Delegated Regulation in relation to the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries
On 3 June 2019, the EU Commission Delegated Regulation (EU) 2019/758 of 31 January supplementing Directive (EU) 2015/849 of the European Parliament and of the Council entered in to force. This regulation lays down additional measures that credit and financial institutions must take to handle effectively the risk posed by money laundering and terrorist financing where a third country's law does not permit the implementation of group-wide policies and procedures at branch level or majority owned subsidiary level, who are part of the group and are established in that third country.
For more information on this topic please contact any member of A&L Goodbody's Financial Regulation team.