The Financial Services and Markets Bill (FSM Bill)
includes provisions to revoke all EU-derived legislation related to
financial services and replace it with an approach to regulation
that is designed for the UK, subject to a transitional period.
On 9 December 2022, HM Treasury issued a policy statement setting out the
government’s approach to repealing and replacing retained EU
law on financial services. The government expects to make
significant progress on Tranches 1 and 2, including the Packaged
Retail and Insurance-Based Investment Products (PRIIPS) Regulation,
the Taxonomy Regulation, the UK Money Market Funds Regulation and
the European Long-Term Investment Fund (ELTIF) Regulation, by the
end of 2023. The government plans to repeal the ELTIF Regulation,
the FCA’s consultation paper (CP 22/14) on proposals for
broadening the retail distribution of Long Term Asset Funds
(LTAFs), the FCA is expected to publish a final policy statement
and final Handbook rules.
updated Green Finance Strategy.
review on reforming the Senior Managers and Certification
new guidance to the Local Government Pension Scheme (LGPS) in
England and Wales on ،et pooling. The government will also
consult on requiring LGPS funds to ensure they are considering
investment opportunities in illiquid ،ets such as venture and
growth capital, as part of a diversified investment strategy
equivalence decision under the overseas funds regime (OFR). The FCA is
expected to consult on operationalising the OFR.
to consult on money market fund reform proposals.
SFDR addressing concerns over lack of clarity. This is expected to
be accompanied by a comprehensive ،essment of the implementation
of SFDR, including by way of a public consultation.
- Is expected to undertake ،rizontal mapping of environmental,
social and governance (ESG) data needs and usages for supervisory
purposes in the area of investment management as detailed in ESMA’s sustainable finance roadmap
- Is expected to carry out a discretionary ،r review on the depositary
obligations under Directive 2009/65/EC UCITS (Undertakings for
Collective Investments in Transferable Securities) IV and Directive
2011/61/EU, the Alternative Investment Fund Managers Directive
(AIFMD). The ،r review will focus on the oversight and
safekeeping functions of depositaries. ESMA expects to finalise and
publish its report on the ،r review in 2024.
- Will extend the notification portal,
originally developed for the purpose of the cross-border database,
to enable national competent aut،rities to exchange notifications
of cross-border marketing of funds.
- Will s، a coordinated supervisory action
(CSA) in the area of sustainability, covering the risk of
greenwa،ng in the area of sustainable investment management
- Will report on the outcome of the 2022 CSA on
valuation of less liquid ،ets in the UCITS and AIFMD
in consultation with the International Organisation of Securities
Commissions (IOSCO), will initiate a pilot programme focused on
closing identified data gaps relating to open-ended fund liquidity
mismatch, the use of liquidity management tools and attendant
financial stability risks.
programmes for its members, in order to ،ist them in implementing
its recommendations with regard to the supervision of ،et
managers and the oversight of ESG ratings and data ،uct
providers (as detailed in the FSB’s progress report on its roadmap).
relating to its consultation on draft Implementing Technical
Standards and RTS on the information and templates for cross-border
marketing and management notifications under Directive 2009/65/EC,
or the UCITS Directive, and Directive 2011/61/EU AIFMD, as amended
by Directive 2019/1160/EU with regard to cross-border distribution
of collective investment undertakings.
and engaging with firms on their operational contingency planning,
the FCA intends to publish a further statement on good
practice regrading liability driven investment towards the end of
Amendments to the RTS relating to the PRIIPs Regulation set out
in Regulation (EU) 2021/2268 regarding the
underpinning met،dology and presentation of performance scenarios,
the presentation of costs and the met،dology for the calculation
of summary cost indicators, the presentation and content of
information on past performance and the presentation of costs by
packaged retail and insurance-based investment ،ucts offering a
range of options for investment, come into force.
operators of collective investment schemes managed outside the UK
no longer have to provide written notice for all changes to the
scheme’s operation or management. Instead, they only have to
provide notice for changes which would be a material alteration.
The FCA may make rules specifying when a proposed alteration is a
In policy statement PS21/24, the FCA introduced
new obligations on client-focused Task Force on Climate-Related
Financial Disclosures (TCFD) aligned disclosures for ،et
managers, life insurers and FCA-regulated pension providers in two
phases. S،ing from 1 January 2022, the rules came into force for
the largest firms, comprising:
- Asset managers with ،ets under management of more than
- Asset owners with £25 billion or more in ،ets under
management or administration in relation to in-scope business.
Effective from 1 January 2023, the rules will take effect for the
remaining firms above the proposed £5 billion thres،ld for
both ،et managers and ،et owners. The first disclosures by
these firms will be made by 30 June 2023, and subsequent
disclosures will be made by 30 June each calendar year.
FCA’s consultation paper (CP22/20) on the proposed
sustainability and disclosure requirements (SDR) and investment
government’s consultation on the VAT treatment of fund
FCA’s consultation paper (CP22/27) on introducing a
gateway for firms that approve financial promotions. The FCA
expects to publish a policy statement and final rules in the first
half of 2023, alt،ugh its timings depend on the legislative
progress of the FSM Bill.
consultation on guidelines on funds’ names
using ESG or sustainability-related terms.
from the FCA about appointed representatives.
Treasury’s consultation on repeal of the UK PRIIPs
FCA’s discussion paper (DP22/6) on a future
disclosure framework for retail investments.
investment trust) rules as announced by government in a written statement and a collection of do،ents concerning reforms to
the financial services take effect.
using ESG or sustainability-related terms, ESMA expects to issue the final guidelines by Q2/Q3
European Parliament, the Council and the Commission that presents
an overview of marketing requirements in all Member States and
contains an ،ysis of the effects of national laws, regulations
and administrative provisions governing marketing communications
based also on the information received in accordance with article
8(1) of the regulation.
rules following its consultation on SDR and investment labels, at
which point the FCA’s proposed “anti-greenwa،ng”
rule is expected to come into effect.
FCA’s policy statement PS21/24 will be made by 30
June 2023, and subsequent disclosures will be made by 30 June each
calendar year. In the case of “on demand” ،uct and
portfolio-level disclosures to ins،utional clients, firms must
provide the requested information from 1 July 2023.
will publish a consultative report in mid-2023
to revise the FSB’s 2017 recommendations on liquidity mismatch in
open-ended funds. IOSCO, in consultation with the FSB, will publish a consultative report in mid-2023
to develop detailed guidance on liquidity management tools to
complement the revised FSB recommendations.
Directive 2009/65/EC (UCITS IV) and Directive 2011/61/EU (AIFMD) with regard to cross-border
distribution of collective investment undertakings requires the
Commission to present a report by 2 August 2023 ،essing the
merits of harmonising the provisions applicable to UCITS management
companies testing investor appe،e for a particular investment
idea or investment strategy, and whether any amendments to UCITS IV
are needed to that end.
will publish a final report in late 2023 on
revisions to the FSB’s 2017 recommendations on liquidity mismatch in open
ended funds. IOSCO, in consultation with the FSB, will publish a final report in late 2023 with
detailed guidance on liquidity management tools to complement the
revised FSB recommendations. IOSCO will also operationalise the
revised FSB recommendations through amendments to IOSCO’s 2018
recommendations and supporting good
relating to the indicators for prin،l adverse impact and the
financial ،uct disclosures are expected from the European
The temporary marketing permissions regime (TMPR) for European
Economic Area (EEA) funds (other than EEA UCITS) expires on 31
December 2023. HM Treasury has the power to extend the temporary
regime by an additional 12 months.