FSR Outlook 2021: Paving the Way Forward

We are pleased to announce the launch of FSR Outlook 2021: Paving the Way Forward.

In this annual publication, we survey the regulatory landscape in 2021 and identify some themes that we expect to be at the core of regulatory priorities globally in the next 12 months.

2020 has been dominated by Covid-19, political uncertainty, and the preparations for Brexit – which are likely to continue to cast a long shadow over 2021.  Although some second-guessing of crisis-driven responses is probably inevitable (“2020 hindsight”), the hope is that regulators will also focus on the benefits and opportunities furnished by the adoption of digital solutions in response to the pandemic, and how the financial system can best help support the global economic recovery.

Our Global Outlook for 2021 looks at nine different areas, ranging from doing something useful about culture and tackling the “alphabet soup” of ESG standards, to maintaining market integrity in the time of Covid-19, and the final countdown for LIBOR. Protecting investors through a focus on end outcomes, managing innovation in payments, and ensuring digital operational resilience are of course high on the list. Perhaps unsurprisingly, part of the regulatory response to 2020’s pandemic has been a trend towards increased regulatory intervention, and we expect the number of investigations against individuals to continue to grow, not least given continuing regulatory focus on making senior managers accountable.

View the FSR Outlook 2021 here.

 

Karen Anderson
Karen Anderson
Partner
+44 20 7466 2404
Jenny Stainsby
Jenny Stainsby
Partner
+44 20 7466 2995
Hannah Cassidy
Hannah Cassidy
Partner
+852 2101 4133
Luke Hastings
Luke Hastings
Partner
+61 2 9225 5903
Hywel Jenkins
Hywel Jenkins
Partner
+44 20 7466 2510
Antoine Juaristi
Antoine Juaristi
Partner
+33 1 53 57 74 04
Andrew Eastwood
Andrew Eastwood
Partner
+61 2 9225 5442
Andrew Procter
Andrew Procter
Partner
+44 20 7466 7560
Charlotte Henry
Charlotte Henry
Partner
+61 2 9322 4444
Natalie Curtis
Natalie Curtis
Partner
+65 6868 9805

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. Continue reading

Judgment handed down in FCA’s COVID-19 business interruption insurance test case

The High Court has today handed down judgment in the COVID-19 Business Interruption insurance test case of The Financial Conduct Authority v Arch and Others. Herbert Smith Freehills represented the FCA (who was advancing the claim for policyholders) in the case, which considered 21 lead sample wordings from eight insurers. Following expedited proceedings, the judgment brings highly-anticipated guidance on the proper operation of cover under certain non-damage business interruption insurance extensions.

Continue reading

Hong Kong Monetary Authority announces LIBOR transition milestones and provides guidance on prudential issues

The Hong Kong Monetary Authority (HKMA) has issued a circular to announce the key milestones that authorised institutions (AIs) should endeavour to achieve in the transition from LIBOR to alternative reference rates (ARRs).

This follows a statement by the Financial Stability Board (FSB) on 1 July 2020 in which it maintained its long-held view that “firms across all jurisdictions should continue their efforts in making wider use of risk-free rates in order to reduce reliance on IBORs where appropriate and in particular to remove remaining dependencies on LIBOR by the end of 2021”, notwithstanding the Covid-19 outbreak.

As advised by the HKMA, AIs should implement a detailed work plan (by product and by business line) to achieve the milestones. If they anticipate difficulties in achieving the milestones, they should reach out to the HKMA as soon as possible.

This e-bulletin provides an overview of the milestones, as well as recent developments in Hong Kong and internationally. Among other things, the HKMA issued a circular on 23 July 2020 to provide guidance to AIs on the frequently asked questions published by the Basel Committee on Banking Supervision (BCBS) on prudential issues relating to the benchmark reform. Continue reading