FCA announced that, in the context of the upcoming Brexit, it will extend the proposed duration of directions issued under the temporary transitional power to the December 31, 2020. This extension will give firms and other regulated persons the time they need to phase in any regulatory changes they may need to make as a result of "onshored" EU legislation. However, as the FCA announced in February 2019, there are specific areas in which FCA will not be granting transitional relief in the event the UK leaves the EU without a withdrawal agreement.
In these areas, FCA continues to expect firms and other regulated entities to take reasonable steps to comply with the changes to their regulatory obligations by exit day. The firms or persons that should continue their preparations to comply with the changes include firms intending to use credit ratings issued or endorsed by FCA-registered credit ratings agencies after exit day. Additionally, UK originators, sponsors, or securitization special purpose entities (SSPEs) of securitizations that are to be considered simple, transparent, and standardized (STS) under the Securitization Regulation should also continue their preparations to comply with the changes to their regulatory obligations by the exit day. FCA expects firms to use the additional time between now and the end of October to prepare to meet these obligations. If firms are not ready to meet these obligations in full, FCA will expect to see evidence of why this was not possible. FCA will publish further information before exit day on how firms should comply with the post-exit rules. The extension is aligned with the end date intended by the BoE and the PRA. The temporary transitional power is intended to minimize disruption for firms and other regulated entities if the UK leaves the EU without a withdrawal agreement.
Related Link: Press Release
Keywords: Europe, EU, UK, Banking, Securities, Brexit, Transitional Direction, Temporary Transitional Power, STS Securitization, Securitization Regulation, Credit Rating Agency, PRA, BoE, FCA
Previous ArticleECB Updates List of Supervised Entities in EU in September 2019
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.