10 THINGS ABOUT CRD VI

The latest iteration of capital regulations for banks and investment firms - CRD VI[1]- presents a significant regulatory compliance challenge for non-EU (third country) institutions which currently offer, or plan to offer, ‘core banking services’ in the EU. Such activities are currently harmonised in the European Union only to a ‘very limited extent’. CRD VI will introduce harmonized standards, requiring, at least, that in-scope entities offering such services establish an EU authorised branch in the relevant EU Member State. With authorization comes subsequence compliance requirements on capital, liquidity, governance and risk management and the booking of transactions.

[1] See Article 21c, Directive (EU) 2024/1619, amending Directive 2013/36/EU. See also CRR III (Regulation (EU) 2024/1623, amending Regulation (EU) 575/2013).

April 2025

REGULATING FINANCIAL INNOVATION: STARTING FROM SCRATCH

The UK is a major financial market. To retain that position in future, it must be able to accommodate and regulate innovation. That means not being fettered by imperfect analogies with existing law. It must, in other words, be capable of going back to basics when necessary. There are two ways of approaching this.

In one approach, a comprehensive set of rules is set up and applied by a statutory body. Examples of this are the EU’s 2004 Markets in Financial Instruments Directive (MiFID), and the cryptoassets directive (MiCA) currently being implemented. Another approach follows….

By Dr. Julian Roberts, (February 2024) Butterworths Journal of International Banking and Financial Law

ANTHONY DEARING OBTAINS FCA/PRA SECTION 59 APPROVAL

We are delighted that our Managing Director, Anthony Dearing, has obtained FCA and PRA FSMA s.59 approval to perform SMF16 (Compliance Oversight) and SMF17 (MLRO) FCA-designated senior management functions.

13th October 2023

CONISTER BANK OBTAINS PRA AUTHORISATION

We are delighted that our client, Conister Bank Limited, has obtained PRA authorisation to accept deposits through its UK branch office in Hampshire. This is a significant step for the bank, one of the longest established on the Isle of Man, in its plans to grow its lending business. It has been a pleasure to work with the bank on this complex project. The success of the bank’s application, in a little over two years from its decision to expand in the UK, is no small measure because of its highly experienced and dedicated Board, senior management team and certification employees with who it has been and continues to be a privilege to work. With its customer-focussed approach we have no doubt that the bank will enjoy continued success in the UK. We wish it and its dedicated staff well for the future.

12th October 2023

Transitional Capital Regime for non-systemic UK banks and building societies (firms)

In response to the GFC, the Basel Committee introduced reforms to the Basel standards known as the 'Basel III standards'. They are intended to address shortcomings identified in the calculation of risk-weighted assets (RWAs) and capital ratios, defined as the ratio of capital held by firms to RWAs. The Committee identified the following 3 factors key to mitigating the severity of subsequent financial crises:  1. raising the quantity of capital in the financial system, per unit of risk; 2. increasing the quality of capital held by firms; and 3. improving the accuracy of risk measurement by firms.    Most of the Basel III standards have already been….

8th January 2023

FTX: Regulation cannot prevent Fraud

In our view, FTX's collapse does not justify the Biden-Harris Administration's call for greater regulation of VAPs. Instead, it justifies a review of the effectiveness of corporate governance rules and systems and controls to which VAPs, and institutional VA investors are subject. FTX's failure appears to flow from a combination of an absence at FTX of corporate governance and investors' failure, perhaps through FOMO, to undertake effective due diligence, rather than from a gap in, or failure of the regulation of VAPs. According to a report issued….

24th November 2022