Corporate Crime update – November 2020

Welcome to the November 2020 edition of our corporate crime update – our round up of developments in relation to corruption, money laundering, fraud, sanctions and related matters. Our update now covers a number of jurisdictions. Read more

ESMA confirms EU’s hardline stance to MiFIR Derivatives Trading Obligation post-Brexit

In a frustrating twist to the dangerously slow-moving narrative on cross-border financial market access post- Brexit, ESMA yesterday (25 November) issued a public statement confirming the EU's hardline stance to the derivatives trading obligation (DTO) under MiFIR.  The DTO requires EU investment firms to trade certain classes of derivatives only on EU-authorised trading venues – or third country trading venues certified by the European Commission as equivalent. No such equivalence decision has been made or signalled by the EU for purposes of the DTO – and ESMA's latest statement declines to offer any forbearance or similar relief to EU firms currently using UK venues for this purpose. Read more

FSB consults on regulatory and supervisory risks with financial sector outsourcing and third-party relationships

Regulation and supervision of outsourcing arrangements and third-party relationships entered into by financial institutions continues to be an area of great focus for regulators.  The FSB’s latest discussion paper sets out an overview of the regulatory and supervisory landscape on outsourcing and third-party risk management across a number of jurisdictions based on a survey carried out in Q1 2020.  The deadline for providing feedback is 8 January 2021. Read more

Leaving LIBOR: the ISDA 2020 IBOR Fallbacks Protocol and IBOR Supplement

With LIBOR due to disappear by end-2021, work has been underway to facilitate the transition from LIBOR and other IBORs to alternative risk free rates (or RFRs). The derivatives market has been at the forefront of the transition and is some distance further ahead than other financial markets. In particular, ISDA has recently published the 2020 IBOR Fallbacks Protocol and IBOR Fallbacks Supplement, which introduce hardwired fallbacks from IBORs to relevant RFRs for new products and legacy products. Read more

2020 Global Bank Review: #disruption

We are excited to launch the 2020 edition of our Global Bank Review#disruption. While the banks sector has faced significant challenges before, the depth and breadth of Covid-19’s disruption has left banks in the position of having to brace for impact to their own businesses, whilst simultaneously demonstrating a change in culture, providing support to vulnerable customers, and supplying vital credit for regrowing our economies. Read more

HSF Launches New Sanctions Blog

Herbert Smith Freehills' US Sanctions team has recently launched a new Sanctions blog. The blog will provide commentary on economic sanctions and export control issues, with a focus on US laws, and will be of particular interest to in-house counsel and compliance personnel in both US and non-US companies. Read more

FCA’s Approach to International Firms

The FCA has published a consultation (CP20/20) on its general approach to international firms. The consultation and the finalised approach document published after consultation are intended to provide guidance that will help international firms understand the FCA’s expectations as they prepare for their applications for UK authorisation, informing firms’ decision about how they might want to structure their businesses to provide regulated financial services in the UK. The final approach document will supplement the FCA’s existing guidance on its approach to authorisation and supervision. Read more