FS regulatory, accounting and audit bulletin - 8th edition 2013

Being better informed

Sun, sand and over 850 pages of proposed rules and standards on the Capital Requirements Directive IV ("CRD IV") will be at the forefront of some of our readers’ focus. The Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority ("FCA") both issued consultations on implementing the CRD IV regime recently as we gear up to the implementation date in less than 6 months. Next month’s feature article will consider these consultations, and their potential impact, in more detail.

In other news:

  • EU and US regulators published their common path forward on derivatives reform, and the extraterritorial impact of their new rules for derivatives. This was followed by formal releases from the Commodity Futures Trading Commission and European Securities and Markets Authority (“ESMA”). ESMA also consulted on the EMIR clearing obligation, giving stakeholders a first view of the contracts it is considering for the clearing obligation and early views on which may be suitable for mandatory clearing.
  • Being big now means being systemically important in the insurance industry after the Financial Stability Board published a list of nine globally systemically important insurers.
  • General insurance add-ons remain a focus area of the FCA which issued a call for evidence last month. This forms part of the FCA’s work in achieving its competition objective and clearly sets out the FCA’s approach to these types of products sold by insurance companies.
  • AIFMD finally went live on 22 July 2013, a date escaping the notice of most in the end as many regulators and firms took full advantage of its one year transitional period. However, firms shouldn’t rest on their laurels for long: the FCA is expecting all AIFMs to submit their applications by 22 January 2014 to be authorised in time. Any later than this and you run the risk of operating outside your regulatory permissions come 22 July 2014.

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