UK: Financial Regulatory Developments (FReD) - 2 November 2012

European Union and International

Financial Stability Board (FSB)

FSB publishes risk disclosure report: The Enhanced Disclosure Task Force (EDTF) has published its report "Enhancing the Risk Disclosures of Banks", focused on banks that actively access the major public equity or debt markets. FSB facilitated the formation of this task force, which brings together experts from financial institutions, audit firms, investors and supervisors, and so comprises preparers and users of financial reports. The report develops a framework of seven fundamental principles for enhanced risk disclosure, including comparability across banks, and gives examples of recommended disclosures and of leading or best practice disclosures in current bank reporting. The aim is to meet users' needs and improve market confidence in financial institutions. (Source: Report of the Enhanced Disclosure Task Force)

Contact: Rosali Pretorius or Edward Hickman

European Parliament (EP)

EP votes through MiFID 2: EP has approved, almost unanimously, the Ferber Report on the proposals for a Regulation and Directive amending the Markets in Financial Instruments Directive (MiFID 2 and MiFIR). Key points it highlighted are:

• it is critical that all trading facilities are subject to rules;
• there should be clear rules on high frequency trading;
• investment firms must act fairly, honestly and in clients' best interests;
• firms selling investment products should not remunerate staff or evaluate their performance in a way that might create conflicts between their interests and those of clients;
• all market players and trading venue operators must have transparent rules and procedures for executing orders efficiently and deciding what instruments their systems will trade, and have proper business continuity plans;
• organised trading facilities (OTFs) should be reserved for non-equities;
• all orders must be valid for at least 500 milliseconds;
• trading venues must be able to cope with surges in order and market stresses and must have circuit breakers that can suspend trading if necessary; and
• there should be thresholds on maximum net positions on commodity derivatives trading.

(Source: EP Votes Through MiFID 2)

Contact: Rosali Pretorius or Emma Radmore.

EP updates voting dates: The OEIL legislative observatory has updated the voting dates for:

• the Regulation and Directive amending the Market Abuse Directive (MAR and CSMAD): the indicative plenary sitting date is 11 March 2013, following the committee reports being tabled for plenary;
• the Regulation on Key Investor Information on Packaged Retail Investment Products (PRIPs), which is scheduled for committee vote on 20 March and plenary vote on 22 May 2013; and
• Shadow banking: the committee report was tabled for plenary on 25 October, and the debate and vote are scheduled for 19 and 20 November.

(Source: OEIL File for MAR, OEIL File for CSMAD, OEIL File for PRIPs and OEIL file for Shadow Banking)

Contact: Emma Radmore or Juan Jose Manchado.

ECON starts work on IMD2: The Economic and Monetary Affairs Committee (ECON) in EP has published a working document on the proposals to review the Insurance Mediation Directive (IMD2). It raises the following contentious questions:

• the industry has opposed a simplified registration procedure for insurance mediation when conducted as ancillary activity, for example in the case of travel agents and car rental companies, as this could create an unlevel playing field;
• the administrative burden of disclosing the basis and amount of remuneration could outweigh the likely benefit to customers; and
• a system based purely on fees paid by customers can lead to a shortfall in supply of advice – and, where insurance products are PRIPs under the Commission's proposals, this could become a problem.

(Source: Working Document on IMD2)

Contact: Emma Radmore or Andrew Barber.

European Central Bank (ECB)

ECB publishes SEPA factsheet: ECB has published a factsheet setting out the key facts and dates on implementation of the Single Euro Payment Area (SEPA) in Member States. (Source: ECB Publishes SEPA Factsheet)

Contact: Andrew Barber or Juan Jose Manchado.

UK Government and Parliament

Parliament

FS Bill finishes Lords Committee stage: The Financial Services Bill (FS Bill) has finished its line-by-line scrutiny at the Lords Committee stage, after nine days of debate. A new version of the FS Bill has been published, and it now moves to Report stage, which will begin on 6 November. The House of Commons Library has published a standard note summarising the Lords Committee proceedings.  (Source: FS Bill Finishes Lords Committee Stage and Library Standard Note)

Contact: Rosali Pretorius or Emma Radmore.

Parliament set to investigate HBOS failure: The Parliamentary Commission on Banking Standards will enquire into the collapse of HBOS, with particular interest on what warnings were or were not given and what warnings were ignored. For the first time in a public evidence gathering, Parliament has appointed counsel with power to examine witnesses. (Source: Appointment of Counsel and Establishment of Panel on HBOS)

Contact: Emma Radmore or Andrew Barber.  

Treasury Committee publishes HBOS letter: The Treasury Committee has published a letter Adair Turner sent to Andrew Tyrie which confirms that FSA is carrying out an internal review over how details of the Peter Cummings Final Notice appeared in the media before FSA published it. The letter also explains the next step, which is to agree the terms of reference and governance arrangements which will help FSA to complete and publish its report into the failure of HBOS. FSA would like to do this before legal cut-over. (Source: Treasury Committee Publishes HBOS Letter)

Contact: Rosali Pretorius or Emma Radmore.

Government introduces DPA into Crime and Courts Bill: Following last week's endorsement by the Government of Deferred Prosecution Agreements (DPA), this tool has been introduced as an amendment to the Crime and Courts Bill. The Committee stage scrutiny of the Bill in the House of Lords has now finished. (Source: Crime and Courts Bill – Seventh Marshalled List of Amendments and Crime and Courts Bill as Amended in Committee)  

Contact: Emma Radmore or Andrew Barber.

HM Treasury (Treasury)

Treasury publishes LIBOR legislative changes: Treasury has published further changes to the FS Bill to implement the conclusions of the Wheatley Review of LIBOR. The changes will:

• introduce a definition of "benchmark";
• include a new section on regulated activities relating to the setting of benchmarks;
• allow the Financial Conduct Authority (FCA) to make rules requiring participation in a benchmark; and
• insert new clauses on offences of making misleading statements and impressions relating to benchmarks.

(Source: Treasury Publishes LIBOR Legislative Changes)

Contact: Rosali Pretorius or Emma Radmore.

Treasury looks at Building Societies Mergers Act: Treasury has published a memorandum that will be part of a post-legislative scrutiny of the Building Societies (Funding) and Mutual Societies (Transfers) Act 2007. It reviews the successful use of the Act in the cases of Britannia Building Society and Kent Reliance Building Society. (Source: Assessment of the Building Societies (Funding) and Mutual Societies (Transfers) Act 2007)

Contact: Rosali Pretorius or Edward Hickman.

Treasury updates sanctions: Treasury has updated the sanctions lists in respect of Al-Qaida. (Source: Treasury Updates Sanctions)

Contact: Emma Radmore or Lauren Donnelly.

Bank of England (BoE)

BoE PRA firms designation: BoE and FSA have issued a draft version of the statement of policy on designation of investment firms for prudential supervision by the Prudential Regulation Authority (PRA). The draft PRA-Regulated Activities Order (see FReD 19 October – "Treasury consults on FSMA SIs") requires this statement of policy on the approach and factors that PRA will consider when taking on the prudential supervision of an investment firm, which otherwise would have been under the sole supervision of FCA. BoE asks for comments by 4 January 2013. (Source: Draft Policy Statement on Designation of Investment Firms for PRA Supervision)

Contact: Emma Radmore orRosali Pretorius.

UK Financial Services and Markets Regulator

Financial Services Authority (FSA)

FSA speaks on FCA and the London insurance market: Clive Adamson has spoken on the effects from FCA will have on the London insurance market. He looked at how FCA will look and feel different from FSA, in terms of being a forward-looking regulator. He assessed the new supervisory categories and the three pillars on which FCA will base its supervisory approach. He focused on the first pillar, the Firm Systematic Framework (FSF), which will replace ARROW, and how FCA will differentiate between firms in assessing the appropriate intensity of supervision. He also considered the new prudential categories for FCA-authorised firms, while stressing that most non-intermediary firms in the London insurance market would be PRA-regulated for prudential matters. Finally he looked at risks specific to the Lloyd's and London market. He highlighted concerns over poor controls for underwriters over delegated authorities, and the high risks of financial crime. In terms of insurance intermediaries, the risks are in ensuring at each stage of the distribution chain that firms consider the consumer outcome, in poor design and mis-selling of low value products and in claims management and outsourcing. (Source: FSA Speaks on FCA and the London Insurance Market)

Contact: Emma Radmore or Andrew Barber.

Up next from FSA: FSA expects to publish, before the end of 2012:

• policy statements on data collection on remuneration policies, short selling regulation and recovery and resolution plans;
• consultation on implementation of the Alternative Investment Fund Managers Directive (AIFMD);
• consultations on threshold conditions for FCA and FCA changes related to parent undertakings, and supervision (specifically the changes to chapter 7 of the Supervision Manual);
• feedback on Solvency 2 implementation;
• policy statement on large exposures and consultation on changes to Chapter 12 of the Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU) and removing the simplified ILAS BIPRU firm automatic scalar increase; and
• feedback and policy statements on cash rebates and platforms, the client assets firm classification, packaged bank accounts, mutuality and with-profits funds, the client assets regime and the European Market Infrastructure Regulation (EMIR).

(Source: Policy Development Update No 152)

Contact: Emma Radmore or Juan Jose Manchado.

FSA consults on fees: FSA is consulting until 7 January on how fees and levies will be calculated for 2013/2014, once the FS Bill takes effect. The proposals create distinct PRA and FCA fee-blocks for dual-regulated firms, and another FCA fee-block for solo-regulated firms. In addition, the proposals introduce a PRA Transitions costs fee-block that will only apply to dual-regulated firms. Small firms that only pay the PRA minimum fee will be exempted from this Transitions costs fee-block. The FCA fee-block for solo-regulated firms also has an FCA Prudential costs fee-block that will not apply to small firms that only pay the FCA minimum fee. The consultation also proposes revised fee discounts for EEA branches and maintaining the £50,000 trigger point for PRA and FCA to be able to levy restructuring special project fees. (Source: Regulatory Fees and Levies: Policy Proposals for 2013/14)

Contact: Emma Radmore or Andrew Barber.

FSA fines and bans adviser for UCIS mis-selling: FSA has imposed a financial penalty of £117,330 on Martin Edward Rigney and prohibited him from performing any function in relation to any regulated activity. As partner and sole adviser of an independent financial advisory firm, he failed to act with integrity, breaching Statement of Principle 1 when:

• he arranged a transaction in an Unregulated Collective Investment Scheme (UCIS) on behalf of a customer despite a requirement imposed on the firm not to arrange new UCIS business; and
• he arranged investments in UCIS without obtaining his customers' signatures and without their knowledge and consent, thereby conducting discretionary portfolio management outside the scope of the firm's permission.

He also breached Statement of Principle 2, the obligation of a firm to conduct its business with due skill, care and diligence, because:

• he could not prove that an exemption from the prohibition to promote UCIS applied in respect of his customers;
• he had not obtained and recorded enough information about his customers to determine the suitability of his advice nor assessed his customers' attitude to risk, and neither had he researched alternative products or issued suitability letters when advising a switch to UCIS; and
• he encouraged customers to invest large proportions of their investment portfolios in UCIS, worsening the unsuitability of the advice.

(Source: Final Notice – Martin Edward Rigney)

Contact: Emma Radmore or Andrew Barber

FSA clarifies CRD4 policy: FSA has confirmed its policy on the transition to the regime under the fourth Capital Requirements Directive and Capital Requirements Regulation (CRD4/CRR). It will maintain those UK capital standards which are higher than the initial CRD4/CRR requirements. These higher standards include the deduction of interim losses, of investment in own shares and of deferred tax assets, and also a definition of core Tier 1 capital for high-impact firms, which is more stringent than that in CRD4/CRR. On the other hand, FSA will follow the phase-in foreseen in CRD4/CRR transitional provisions for those new requirements that are not still met. (Source: CRD4 Transitional Provisions on Capital Resources)

Contact: Edward Hickman or Rosali Pretorius.

New FSA webpage on short positions: FSA has created a webpage that contains practical information on private notification and public disclosure under the Short Selling Regulation, including links to the contact email addresses and to the relevant forms. (Source: Short Selling – A New Regime for Notifications and Disclosures) 

Contact: Rosali Pretorius or Matthew Sapte.

Other Regulators/Authorities/Industry Associations

Association of Private Client Investment Managers and Stockbrokers (APCIMS)

APCIMS responds on sales incentives: APCIMS has commented that FSA's guidance consultation on "Risks to customers from financial incentives" is not relevant to the sector APCIMS represents. Private client investment managers and stockbrokers do not generally incentivise staff to sell products. FCA should not adopt a "one size fits all approach". APCIMS raises some points that would help target the guidance to the business model of its member firms. (Source: APCIMS Response on Sales Incentives Consultation)

Contact: Andrew Barber or Emma Radmore.

Bank for International Settlements (BIS)/Basel Committee on Banking Supervision (Basel Committee)

Basel Committee reports to G20 on Basel 3 implementation: The Basel Committee has published a report to the G20 Finance Ministers and Central Bank Governors on the results of its assessment of members' implementation of Basel 3. This assessment is looking at the timely and consistent implementation of Basel 3. Only eight of the 27 Basel Committee member jurisdictions have so far issued final regulations, and the EU May compromise versions are non-compliant in their definition of capital and provisions on the internal risk-based approach to credit risk. As well as regulatory consistency, Basel 3 will analyse consistency of outcomes, with special focus on the calculation of risk-weighted assets (RWA). In early 2013 the Basel Committee will publish a final report on whether differences in RWA are driven by underlying differences in risk. (Source: Report to G20 on Basel 3 Implementation)

Contact: Edward Hickman or Rosali Pretorius.

British Bankers' Association (BBA)

Industry responds on FSCS: Industry associations have responded to FSA's review of the Financial Services Compensation Scheme (FSCS) funding model. In particular: 

• BBA's response focuses on aligning the funding model to regulated activities and says cross-subsidies between classes should operate only where strictly necessary;
• APCIMS is also disappointed with the proposals. It says FSA is trying to justify its previous approach, rather than carrying out the necessary "root and branch" review to assess historic claims. Further criticisms highlight claims that resulted from FSA's failure to supervise properly, and that using permissions as a sole determinant of levy class does not give the right levels of affinity between class members; and
• the Investment Management Association (IMA) says the proposals are wholly unacceptable. It argues the current model is flawed and the future model goes further, in expecting fund managers to pay for the mis-selling of products by other sectors. It advocates a reserve policy, with three-year forecasts, which it says would give firms certainty about contributions, smooth exceptional claims and ensure the right person pays.

(Source: BBA Responds on FSCS, APCIMS Responds on FSCS, and IMA Responds on FSCS)    

Contact: Rosali Pretorius or atharine Harle.

BBA responds on UTCCR review: In its response to the Law Commission's consultation on reviewing the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCR), BBA asks that any changes are subject to transitional provisions to allow firms to review and make variations to products, services and documentation so as to prevent litigation. (Source: BBA Response to UTCCR Review)

Contact: Andrew Barber or Katharine Harle

City of London Law Society (CLLS)

CLLS responds on bank director sanctions: CLLS has responded to Treasury's consultation on sanctions for directors of failed banks. It notes there is no proposed definition of "failed bank" and says there must be one, as determining what a failed bank is and the point at which failure happens will be critical. It also says the policy must be clearer on what it means by "directors" and the extent to which the regime would apply to shadow directors and senior managers. The remainder of the response sets out concerns over the practical and proportionate application of the regime. (Source: CLLS Responds on Bank Director Sanctions)

Contact: Rosali Pretorius or Andrew Barber

European Banking Federation (EBF)

EBF publishes position on single supervision proposals: EBF has published a position paper on the proposed Council regulation for establishing ECB as single prudential bank supervisor for Eurozone Member States and those others that opted in, and on the amendments to the European Banking Authority (EBA) Regulation. Along with calls for effective checks to the Eurozone block's sway at the ECB and EBA, EBF raises other important issues that legislators must address:

• if ECB becomes macro-prudential supervisor, its accountability and the role of the European Systemic Risk Board (ESRB) will need reviewing; and
• colleges of supervisors will need to function properly as long as home-host supervision arises whenever a country not participating in the single supervision mechanism (SSM) is involved.

(Source: EBF Position Paper on SSM)

Contact:Rosali Pretorius or Andrew Barber

Institute of International Finance (IIF)

IIF responds on margin for non-centrally-cleared derivatives: IIF has written to the Basel Committee and IOSCO on the issue of margin requirements for derivatives not cleared at a central counterparty. It says that the two-way initial margin exchange between financial firms and systemically important non-financial institutions could worsen the shortage of liquid financial instruments and have pro-cyclical effects during periods of stress. In mitigating counterparty risk, financial firms should be allowed to use regulatory capital charges calculated under the credit valuation adjustment method. Non-financial firms should be encouraged to focus on ensuring that any netting arrangements are legally enforceable. (Source: Re: Margin Requirements for Non-Centrally-Cleared Derivatives)

Contact: Rosali Pretorius or Edward Hickman

International Organisation of Securities Commissions (IOSCO)

IOSCO reports on implementation of commodity derivatives market principles: IOSCO has published the results of its "Survey on Implementation of the Principles for the Regulation and Supervision of Commodity Derivatives Markets". These 21 principles cover contract design, market surveillance, disorderly markets, enforcement and information sharing, and price discovery. The majority of the 37 market regulators who responded to the questionnaire were broadly compliant with the principles. The rate of positive responses is lower for the following principles:

• Principle 10: Collection of Information on On-Exchange Transactions. Reports on warehouse stocks are not available on a routine basis or without the need for the Market Authority to request them. In the same way, information to identify position holders down to the first client level is in many cases only available upon request to the intermediary that collects it.
• Principle 12: Large Positions. There are differences in the extent and means by which each Market Authority has the ability to aggregate positions owned by, or beneficially controlled on behalf of, a common owner.
• Principle 16: Framework for Addressing Multi-Market Abusive Trading. There are differences in the extent of the authority and techniques available to investigate trading positions, whether in respect of listed, OTC, or underlying physical contracts, when those transactions are deemed to have been traded with intention to manipulate on-exchange quotations.
• Principle 21: Commodity Derivatives Market Transparency. Aggregate public reporting of positions by class of trader is only undertaken in some jurisdictions. In Europe, it will be introduced by article 60 of MiFID 2. 

(Source: Implementation of Commodity Derivatives Market Principles)

Contact: Rosali Pretorius or Lauren Donnelly

International Swaps and Derivatives Association (ISDA)

ISDA comments on EP MiFID 2 vote: ISDA has expressed concerns over two elements of EP's report on MiFID 2/MiFIR that limit investor choice. By proposing limitations on when derivatives can be executed on an Organised Trading Facility (OTF), EP is pushing transactions towards more exchange-like venues, a model based on equities trading but not suitable for all derivatives. EP's proposals would also ban OTF operators from using proprietary capital and making markets, thus limiting the ability of OTF operators to offer services to clients. (Source: ISDA Comments on EP MiFID 2 Vote)

Contact: Rosali Pretorius or Roy Neillie

Joint Associations Committee on Retail Structured Products (JAC)

JAC comments on KID Regulation: JAC has commented on the Commission's proposal for a Regulation on key information documents (KID) for investment products, which forms part of the PRIPs Initiative. JAC warns that KID oversimplification could limit the usefulness of disclosure and mislead investors. It proposes amendments to the Level 1 provisions on the civil liability regime and on the relationship between the KID and the product terms and conditions. It also suggests that the Level 2 standards should discard including a synthetic risk/reward indicator, as it discourages investors from engaging with the full risk profile of the product.

(Source: JAC Comments on European Disclosure Rules for Retail Investment Products – 29 October 2012)

Contact: Andrew Barber or Emma Radmore

Forthcoming Events

FReD Live Registration Open: FReD readers should have received their invitations to our next FReD Live briefing, which is on 27 November and will look forward to the key regulatory changes we expect in 2013. 

CISI Event on Dealing with the Sanctions Regimes: Emma Radmore is speaking at the Chartered Institute for Securities & Investment conference on dealing with the sanctions regimes on 6 November.

Fund Marketing and Distribution: Andrew Barber is speaking on the future for distribution under the Retail Distribution Review and the Packaged Retail Investment Products initiative at the Informa conference on Fund Marketing and Distribution on 12 December. Contacts of SNR Denton can get a discount on booking fees by entering the code FKW52472EMSPK when booking.

Doing Business in Asia: Minimising Corruption Risks to your Business: Speakers from SNR Denton's London, Hong Kong and China offices will speak with Hugo Williamson of Risk Resolution Group on 7 November in a rerun of our popular seminar first held in London. This seminar, held in Hong Kong, will focus on the effects of US, UK and local anti-corruption legislation. All FReD contacts in Hong Kong should have received an invitation. If you have not, or for further details and to register, please contact Julie Wilkins.

Managing the Consequences of the AIFMD Level 2 Directive: Infoline is hosting a conference on Managing the Consequences of the AIFM Directive Level 2 Implementation Measures on 12 and 13 December in Central London. Rosali Pretorius will be leading the workshop session on the Operational Implications of the AIFMD and her involvement allows us to extend their early bird discount to our clients and contacts. If you are interested in attending please quote FKM62454EMSPK to receive a 20% discount.

Save the date! Investment Funds briefings: Our next Investment Funds breakfast briefing will take place on 21 November.

Recent Publications

Financial Crime

EU Further Expands Sanctions Against Iran: We have written an update on the latest EU sanctions against Iran.

The Bribery Act – Has It Made A Difference?: We have updated our previous overview of the Bribery Act to take into account the Serious Fraud Office's latest guidance.

Dealing with Anti-Corruption Laws – the Bribery Act and FCPA in Context: This article summarises the effects of the Bribery Act and US Foreign Corrupt Practices Act. For further information, please contact Emma Radmore or Dominic Sedghi (London), or Michelle Shapiro (New York).

New EU Sanctions Expand Restrictions on Iran: Michael Zolandz, Peter Feldman, Stuart Cavet and Emma Radmore have written an update on the new EU sanctions against Iran.

Testing your ABC – the Bribery Act Six Months on: Emma Radmore  and Dominic Sedghi have updated our previous suite of articles on Bribery Act implementation.

Financial Crime Podcast: Emma Radmore joined Finance IQ to discuss the FSA's Financial Crime Guide and issues associated with cutting financial crime.

Compiling the Pieces: The FSA's Financial Crime Guide: Emma Radmore wrote an article for Compliance Monitor on FSA's new draft Financial Crime Guide.

Bribery and Sanctions presentation: Our UK and US offices gave a seminar on dealing with bribery and sanctions risks. Please check our website for up to date summaries of key sanctions regimes.

Investment Services and Markets Reform

A New Handbook for a New Era?: Emma Radmore has written an article for Thomson Reuters Compliance Complete on FSA's proposals to update the General Provisions Sourcebook for legal cut-over.

Treasury Publishes Banking Reform Bill: Read our summary of the Bill implementing the Vickers reforms into FSMA.

RDR: How Long Can it Last?: Emma Radmore and Andrew Barber have written an article for Compliance Monitor on the future of the Retail Distribution Review.

What's next for LIBOR? Summary of the Wheatley Review Recommendations: We have written a summary of the Wheatley 10-point plan for the reform of the LIBOR process.

Rate Setting and Regulation: In Everyone's Interests?: Rosali Pretorius, Madeleine de Remusat and Katharine Harle wrote an article for Financial Regulation International on the background to LIBOR setting and potential regulatory action.

Treasury Publishes LIBOR Consultation: We have written a summary of the initial report and consultation of the Wheatley Review of LIBOR.

Money through your mobile – regulation of m-payments: Andrew Barber and Emma Radmore have written an article for Compliance Monitor on the regulatory aspects of mobile payments.

Bank Notes March 2012: The latest edition of our Bank Notes newsletter includes two articles by Rosali Pretorius and Emma Radmore.

The Battle for Control of the Mobile Wallet: Alex Haffner and Ingrid Silver have written an article on the Project Oscar initiative to make mobile payments across networks easier.

Treasury presents FS Bill: We have produced a separate summary of the FS Bill and accompanying documents. For more information, please contact Rosali Pretorius or Emma Radmore.

MiFID 2 – Prescription and Change: Emma Radmore wrote an article for Compliance Monitor on the breadth of the proposals to amend the Markets in Financial Instruments Directive (MiFID 2).

I'm a commodity dealer – get me out of here!: Rosali Pretorius and Matthew Hodgson have written an article (published in two parts on Thomson Reuters Compliance Complete) on the effects of the MiFID II proposals on commodity dealers.

The Son of MiFID: Rosali Pretorius, Josie Day and Emma Radmore have written an article looking at the major impacts of the potential changes to the Markets in Financial Instruments Directive (MiFID) on hedge funds.

Prudential Regulation

UK Treasury Publishes Banking Structure Reform Plans: This article summarises the June 2012 White Paper on implementation of structural change to UK banking (as covered in FReD 15 June). For more information, please contact Rosali Pretorius, Emma Radmore or Andrew Barber.

EU Living Wills Plans – the Key Proposals: This article is the latest in our suite of articles about Living Wills and Recovery and Resolution Plans looks at the European Commission's proposals. For further information, please contact Rosali Pretorius or Andrew Barber.

Living Wills update: We have produced an update on FSA's current plans for Recovery and Resolution Plans. For further information, please contact Rosali Pretorius or Andrew Barber.

Reform of Financial Services and Banking 2012: Rosali Pretorius and Emma Radmore look forward to some of the key changes facing UK-regulated financial institutions in 2012.

Financial Stability Board Identifies 29 Global SIFIs and Announces Agreed Policy Measures: We have written an article exploring the FSB announcements and policies endorsed at the November G20 Summit. For further information, please contact Jerome Walker (US) or Rosali Pretorius (UK).

Living Wills in the US and UK: We have written an article on the current US and UK laws and proposals on living wills. For more information contact Robert Bostrom or Jerome Walker (US) or Rosali Pretorius, Emma Radmore or Andrew Barber (UK).

What the Vickers Report means to you: Rosali Pretorius and Emma Radmore have written a note on the major impacts of the Vickers Report.

Recovery and Resolution Plans – Breaking up the banks by stealth: Rosali Pretorius has written an article on FSA's proposals for Recovery and Resolution Plans.

Asset Management

AIFMD's Impact on Private Equity Funds: If you were unable to attend our briefing on an update on AIFMD implementation, critical issues and remuneration provisions, you can now watch the lecture. For further information please contact Rosali Pretorius, Richard Nicolle or Josie Day.

AIFMD Level 2: Josie Day and Emma Radmore have written an article for Compliance Monitor on ESMA's consultations on Level 2 measures and industry response.

Outsourcing for Fund Managers: Rosali Pretorius and Amanda Lewis have written a guide to key success factors for outsourcing in fund management.

Product Regulation

More Protection for Retail Markets – the EU's PRIPs Package: We have written a detailed summary of the PRIPS, IMD2 and UCITS V proposals.

SEC No Action Letter on Foreign-Issued Covered Bond: Thomas Parachini has written a briefing on the US SEC no-action letter in respect of the Royal Bank of Canada's plan to offer and sell covered bonds in the United States in a public offering registered on SEC Form F-3.

Another Stable Door?: Emma Radmore and Katharine Harle wrote an article for Thomson Reuters Complinet on IOSCO's proposals for complex product distribution.

Product Bans – A Radical New Power: Katharine Harle has written an article for Thomson Reuters Complinet on FSA's powers to ban products.

FSA's Product Design Consultations: Emma Radmore has written an article for Thomson Reuters Complinet on FSA's latest consultations on product design.

Product Intervention: Hitting the Wrong Note?: Emma Radmore and Rosali Pretorius wrote an article for Thomson Reuters Accelus on industry and FSA's responses to proposals for Product Intervention.

The Future for PRIPs: Rosali Pretorius and Emma Radmore have written an article for Compliance Monitor on current proposals affecting Packaged Retail Investment Products.

Enforcement and Litigation

The Not So Remote Risks of Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the case of Rubenstein v. HSBC Bank plc.

The Long Arm of FSA: Overseas Firms and Senior Management Beware: Emma Radmore and Katharine Harle have written an article for Compliance Monitor on the lessons from recent FSA enforcement cases involving overseas firms and their approved persons.

FSA Lessons for Foreign Firms: Senior Management Expectations Crystal Clear: Katharine Harle, Felicity Ewing and Emma Radmore have written an article on the implications of FSA's enforcement action against Mitsui Sumitomo Insurance Company (Europe) Ltd.

Tribunal Backs CEO Against FSA Fine: Katharine Harle, Richard Caird and Felicity Ewing have written an article on the Upper Tribunal's Decision reversing FSA's decision to fine John Pottage for misconduct.

More Confusion on Client Money: Rosali Pretorius and Josie Day have written an article on the Supreme Court decision in the Lehman client money case.

FSA Not Obliged to Provide Cross-Undertaking in Damages: Alexandra Doucas has written an article for Thomson Reuters Complinet on Financial Services Authority v. (1) Sinaloa Gold plc and others.

The Pitfalls of Personal Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the Zaki and others v. Credit Suisse (UK) case.

An end to the PPI Saga? Wider Implications of the PPI Judgment: Alexandra Doucas and Katharine Harle wrote an article for Thomson Reuters Accelus on learning points for firms stemming from the PPI judgment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.