Hogan Lovells (JD Supra United Kingdom)

GBP transition to SONIA under Solvency II regime: PRA PS12/21 - The UK Prudential Regulation Authority (PRA) has published a policy statement, PS12/21, on deep, liquid and transparent (DLT) assessments and GBP transition to the Sterling Overnight Index Average (SONIA), under the Solvency II regime.

If not now then when? Tribunal should have identified when jurisdiction established - An employment tribunal only has jurisdiction to hear claims under the Employment Rights Act 1996 and Equality Act 2010 if the claimant has a sufficient connection with Great Britain and British employment law.

DvP clients: FCA and PRA Dear CRO letter on counterparty credit exposure management and controls - The UK Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have published a letter to chief risk officers (CROs) of regulated firms on pre-settlement counterparty credit exposure management and controls for "delivery versus payment" (DvP) clients.

UCITS funds: HM Treasury announces extension of PRIIPs exemption - HM Treasury has announced that the current exemption for Undertakings for the Collective Investment in Transferable Securities (UCITS) funds from the requirements of the UK retained EU law version of the Packaged Retail Investment and Insurance-based Products (PRIIPs) Regulation (UK PRIIPs Regulation) will be extended by five...

It is over a year since the first UK-wide lockdown and, as time has passed, our understanding of the virus and familiarity with the safety measures it necessitates has increased.  But neither individuals or organisations can afford to become complacent. 

Resolution assessments: PRA PS10/21 on amendments to reporting and disclosure dates - Following its consultation in CP19/20, the UK Prudential Regulation Authority (PRA) has published a policy statement, PS10/21, on amendments to reporting and disclosure dates for resolution assessments. PS10/21 is relevant to UK banks and building societies with £50 billion or more in retail deposits on an...

Proposed codified EU Regulation on cross-border payments: JURI draft report - The European Parliament's Legal Affairs Committee (JURI) has published a draft report containing a draft European Parliament legislative resolution on the European Commission's legislative proposal for a Regulation on cross-border payments in the EU, to codify and replace the existing Regulation on cross-border...

SMCR: PRA PS11/21 and FCA Handbook Notice 88 on temporary, long-term absences - The UK Prudential Regulation Authority (PRA) has published a policy statement, PS11/21, which confirms its final policy relating to temporary, long-term absences by senior managers under the Senior Managers and Certification Regime (SMCR).

In the first part of a long-heralded suite of reforms to leasehold property law in England & Wales, the UK government has introduced a draft Bill which is intended to consign to history ground rents under leases of flats and houses.

EU cross-border distribution of funds: ESMA guidelines on marketing communications - Following its consultation in November 2020, the European Securities and Markets Authority (ESMA) has published a final report on guidelines for funds' marketing communications under Article 4 of the Regulation on the cross-border distribution of collective investment undertakings. The final report also gives an

UK EMIR: BoE consults on modifications to DTO to reflect interest rate benchmark reform - The Bank of England (BoE) has published a consultation paper setting out its proposal to modify the scope of contracts that are subject to the derivatives clearing obligation (DTO) under the retained EU law version of the European Market Infrastructure Regulation (UK EMIR) to reflect the ongoing reforms to...

PSRs 2017: FCA deadline extension for implementing SCA - The UK Financial Conduct Authority (FCA) has announced that it is providing firms with a further six months to implement strong customer authentication (SCA) for e-commerce under the Payment Services Regulations 2017 (PSRs 2017) as it recognises ongoing challenges facing the industry to be ready by the previous 14 September 2021 deadline.

US-UK financial regulatory working group joint statement - HM Treasury has published a joint statement by the US-UK Financial Regulatory Working Group following its fourth meeting, which was held virtually on 20 May 2021. The Working Group meeting focused on seven themes: (1) international and bilateral cooperation; (2) sustainable finance; (3) updates on domestic initiatives and priorities; (4)

FCA consumer credit information sheets updated - The UK Financial Conduct Authority (FCA) has updated its webpage on consumer credit information sheets to announce the publication of revised information sheets relating to: arrears; default; high-cost short-term loans; high-cost short-terms loans, peer-to-peer lenders; and arrears, peer-to-peer lending.

Civil Liability Act 2018 (Financial Conduct Authority) (Whiplash) Regulations 2021 - The Civil Liability Act 2018 (Financial Conduct Authority) (Whiplash) Regulations 2021 (SI 2021/594) have been published, together with an explanatory memorandum. The Regulations give powers to the UK Financial Conduct Authority (FCA) to enforce the ban on the making and requesting of offers to settle road...

COVID-19: FCA statement on regulatory treatment of Recovery Loan Scheme - The FCA has published a statement on the regulatory treatment of the UK Recovery Loan Scheme (RLS), which was launched on 6 April 2021 as part of the government's COVID-19 financial support for UK businesses. While the RLS has different terms and eligibility criteria, it has replaced the government’s Bounce Back Loan...

On 5 May 2020, the HM Treasury confirmed that it plans to remove the open access regime for exchange-traded derivatives (ETDs), which is currently within the UK version of the Markets in Financial Instruments Regulation (UK MiFIR (600/2014)).

Climate change: BoE speech on course to net zero - The Bank of England (BoE) has published a speech by Sarah Breeden, Executive Director, UK Deposit Takers Supervision in which she talks about how financial services firms in the UK can act as stewards in the move to a "net zero" economy.

2022/23 supervisory benchmarking exercise for capital internal models: PRA statement - The UK Prudential Regulation Authority (PRA) has published a statement on its expectations concerning the 2022 and 2023 supervisory benchmarking exercise relating to banks' capital internal models. These relate to year-ends 2021 and 2022 respectively. The statement is relevant to those credit institutions that...

EU SSR: ESMA proposes permanently lowering reporting threshold of net short positions - The European Securities and Markets Authority (ESMA) has published an opinion in which it recommends that the European Commission permanently lowers the threshold to notify net short positions on shares to national competent authorities (NCAs), under Article 5(2) the Short Selling Regulation, from 0.2% to 0.1%.

Too little, too late - employer could not cure fundamental breach - If an employer commits a repudiatory breach of contract, an employee is entitled to accept the breach by resigning. They can then claim unfair constructive dismissal.

On a protected lease renewal, a landlord may rely on the following "fault" grounds to oppose the grant of a new lease:  (a) Failure by the tenant to comply with its repair and maintenance obligations...

The UK’s Department for Transport (DfT) has announced that a form of self-driving technology could be lawful on UK roads for the first time by the end of 2021. The technology enables drivers to hand over control of the vehicle to an automated system that keeps the vehicle in its lane ...

Draft Financial Markets and Insolvency (Transitional Provision) (EU Exit) (Amendment) Regulations 2021 A draft version of the Financial Markets and Insolvency (Transitional Provision) (EU Exit) (Amendment) Regulations 2021 (2021 Regulations) have been laid before Parliament, together with a draft explanatory memorandum.

On 12 May 2021, Mr Justice Snowden sanctioned Virgin Active’s three inter-conditional restructuring plans under Part 26A of the Companies Act 2006. The case has been followed with significant interest in the restructuring community because the restructuring plans included the most extensive cross-class cram down proposal since the introduction of the restructuring plan process last year (DeepOcean

PRA supervision of annuity providers: BoE speech - The Bank of England (BoE) has published a speech (and accompanying appendix), given by Charlotte Gerken, Prudential Regulation Authority (PRA) Executive Director, Insurance Supervision, on developments in the PRA's supervision of annuity providers.

Systemically important payment systems: ECB Regulation and Decisions - European Central Bank (ECB) Regulation (EU) 2021/728, which amends the Regulation on oversight requirements for systemically important payment systems (SIPS) (the SIPS Regulation), has been published in the Official Journal of the European Union, together with two related ECB Decisions, (EU) 2021/729 and (EU) 2021/730.

FCA credit broking survey - The UK Financial Conduct Authority (FCA) has announced that it plans to send a survey to 300 credit broking firms on 20 May 2021 asking them to update the information the FCA holds on how the firms are using their credit broking permission.

The government has introduced the Debt Respite Scheme (Breathing Space), which came into effect on 4 May 2021, which allows individuals who are struggling with debt to apply for a “breathing space” in which to sort out their finances. 

The FCA first published a discussion paper on a duty of care in July 2018 – nearly two years on it is now consulting on introducing a new Consumer Duty. There is now to be a clear timeline for the introduction of the changes, with section 29 of the Financial Services Act 2021 requiring the…