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Welcome to Euro Shorts, a short briefing on some of the week’s developments in the financial services industry in Europe

If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.


Claire Cummings

020 7585 1406



Cummings Law is pleased to announce that Jessica Poli has joined our legal team. Her practise will focus on financial services regulations and lending transactions. Jessica has experience of the application of MiFID II, structuring and negotiating documentation for lending and borrowing deals and negotiating derivative documentation. Jessica is admitted to the bar in New York and is a graduate of American University, Washington College of Law.



Cummings Law will be holding a roundtable teach-in and discussion exploring how to prepare for the GDPR and giving an update on the progress of MiFID II to date. The roundtable will be held on Wednesday, 21 February 2018 at our offices at 42 Brook Street. If you would like more details on this event, please e-mail Claire Cummings at or Sandra Bishop at

On Thursday 8 March 2018, Cummings Law will be hosting a roundtable to discuss digital assets, including cryptocurrencies and initial coin offerings (“ICOs”). The discussion will cover basics of ICOs and cryptocurrencies and FCA regulatory issues such as whether tokens, cryptocurrencies and ICCs are regulated by the FCA, how are tokens subscribed for in a fund offering and how they can be converted into a fiat currency as well as the potential benefits and drawbacks of using these new technologies. If you would like more details on this event, please e-mail Claire Cummings at or Sandra Bishop at


ESMA Updates MiFID II TTC Calculations for Equities and Bonds

On 19 January 2018, ESMA issued a press release stating that applicable transitional transparency calculations (TTC) have been added for (i) equity instruments, traded for the first time on a trading venue between 13 September 2017 and 2 January 2018 and (ii) bond instruments (except ETCs and ETNs) traded for the first time on a trading venue between 1 November 2017 and 2 January 2018.


FCA Establishes Position Limits for Commodity Derivative Contracts

On 25 January 2018, the FCA published position limits on a further commodity derivative contract which is traded on a UK trading venue, as required under MiFID II. MiFID II requires the FCA to set limits on the maximum size of positions which a person can hold in commodity derivatives in contracts traded on trading venues and EEOTC contracts.


FCA Publishes Statement on PRIIPs KID

On 24 January 2018, the FCA published a statement addressing concerns from firms that, for a minority of PRIIPs, the performance scenario information in the KID may appear too optimistic and thus potentially misleading to investors. In response to these concerns, the FCA has stated that PRIIP manufacturers may provide additional explanatory materials regarding the calculations and firms selling or advising on PRIIPs may also provide additional explanation regarding the calculations as part of their communications with clients, so as not to potentially mislead investors.


FCA Handbook Changes in Accordance with MMF Regulation

On 24 January 2018, the FCA published a consultation paper proposing amendments to the FCA Handbook to ensure consistency with the EU Regulation on money market funds ((EU) 2017/1131). The MMF Regulation will apply to new MMFs from 21 July 2018 and to existing MMFs from 21 January 2019.


Delegated Regulations Published in the OJ

This week a Commission Delegated Regulation, supplementing the Fourth Monday Laundering Directive, was published in the Official Journal of the EU which added Ethiopia to the list of high-risk countries with deficiencies in their AML/CFT regime and thus a potential threat to the EU financial system.


Joint Committee of ESA’s Opinion on Use of Innovative Solutions in Customer Due Diligence (“CDD”)

On 23 January 2018, an opinion was issued by the Joint Committee of the European Supervisory Authorities suggesting that, among other things, oversight and control mechanisms, quality and reliability of CDD measures and geographical risks should be considered when assessing whether and to what extent to use innovative CDD solutions such as smartphones and KYC repositories.


FCA Consultation Paper on SME Access to FOS

On 22 January 2018, the FCA published a consultation paper regarding extending access to the Financial Ombudsman Service (FOS) to SMEs to assist with resolving disputes with between SMEs and financial services firms and to provide an alternative route to redress such disputes. The FCA propose to change the definition of “eligible complainant” to include a new category of “small businesses” and to also expand the eligibility thresholds for charities and trusts.


FCA Proposed Change to 30-day Rule on Client Money and Unbreakable Deposits

On 22 January 2018, the FCA published a consultation paper proposing that firms should be allowed to deposit an appropriate proportion of client money in an unbreakable deposit account of up to 90 days, from the current rule of 30 days, with the intent of encouraging a greater number of banks and building societies to accept client money.


Upcoming Publications

Cummings Law will be publishing a Q&A on initial coin offerings, cryptocurrencies, FCA regulatory issues and potential risk and benefits of utilizing these technologies.


We have taken great care to ensure the accuracy of this version of Euro Shorts. However, Euro Shorts is written in general terms and you are strongly recommended to seek specific advice before taking any action based on the information it contains. No responsibility can be taken for any loss arising from, action taken or refrained from on the basis of this publication. If you would like to be removed from the mailing list of this publication please click unsubscribe below. Nothing within this communication may be copied, re-printed or similar without prior written consent from Cummings.

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Tel: + 44 20 7585 1406
Mob: + 44 7734 057 327

Cummings Law
42 Brook Street
London Greater London W1K 5DB
United Kingdom

25 05 2019

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