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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


Updated privacy policy for Cummings Law

Cummings Law has updated its privacy policy in relation to the GDPR, which comes into force on the 25th May 2018. Our privacy policy can be found on our website at the following link:


ICO updates Guide to the GDPR including guidance on the definition of "personal data"

ICO has updated its Guide to the GDPR and published guidance on what personal data is. This guidance is intended to help organisations know when they are processing personal data and what their obligations are. It focuses on whether individuals can and should be identified from information already held and what happens when different organisations process the same data for different purposes.


European Commission draft Delegated Regulation clarifying depositaries' safe-keeping obligations under AIFMD

The EC has published a draft Delegated Regulation regarding safe-keeping duties of depositaries under the AIFMD. Section 3 of the Delegated Regulation specifies depositaries' duties with regard to the safe-keeping of AIF clients' assets. The AIFMD requires that where a depositary delegates safe-keeping functions to third parties (custodians), the assets also need to be segregated at the level of the delegate and the Delegated Regulation details how this obligation is to be fulfilled. Experience gained since the AIFMD implementation date has shown that further clarification is needed on the requirements. The Commission acknowledges that securities and insolvency laws are not harmonised at the EU level. However, it considers it important to have common rules to ensure the protection of assets safe-kept by depositaries or custodians for their clients. This should lead to the clear identification of assets belonging to a particular AIF, and to the protection of these assets in the case of insolvency of the depositary or the custodian. The Commission considers that diverging applications by national competent authorities and market participants of depositaries' obligations as regards safe-keeping of AIF clients' assets risks undermining the objectives. As a result, it is proposing amendments to the Delegated Regulation to clarify the requirements in this area with a view to facilitating their uniform implementation.


FCA takes action against UK branch of overseas bank for AML systems and controls failings

The FCA has published the final notice it has issued to Canara Bank (the UK branch of an Indian state-owned bank) fining it £896,100 for AML systems and controls failings, and imposing a restriction on Canara, preventing it from accepting deposits from new customers for 147 days. The FCA found that, between November 2012 and January 2016, Canara failed to implement and adequately maintain its AML systems and controls, and failed to take sufficient steps to remedy identified weaknesses. The failings were systemic and affected almost all levels of its business and governance structure, suggesting that Canara may not be fit and proper. As a result of these failings, Canara breached Principle 3 of the FCA's Principles for Businesses, by failing to take reasonable steps to organise its affairs responsibly and effectively, with adequate risk management systems.


CMA publishes blog post on competition law questions to ask when considering a joint venture

The Competition and Markets Authority (CMA) has published a blog post by Simon Nichols, CMA Project Director, setting out ten questions that businesses thinking of embarking on a joint venture should ask their lawyer. The questions cover the need to ensure approval of the joint venture under merger control rules of the UK, EU and other jurisdictions, and the creation of a competition law compliance programme for the joint venture.


Personal data exemptions under FOIA and EIR amended by DPA 2018

On 25 May 2018, provisions of the Data Protection Act 2018 (DPA 2018) came into force that amended the exemption for personal data under the Freedom of Information Act 2000 (FOIA) and the corresponding exception under the Environmental Information Regulations 2004 (EIR). The FOIA section 40 exemption now adopts the definition of "personal data" set out in the GDPR. The amendments largely represent a re-ordering of the provisions and principles under the DPA 1998 prior to the DPA 2018 and GDPR taking effect, but their effect on the disclosure of personal data under FOIA and EIR remains to be seen.


FCA consults on high-cost credit proposals following review

The FCA has published: (i) a consultation paper on rent-to-own, home-collected credit, alternatives to high-cost credit, catalogue credit and store cards which also includes a discussion on rent-to-own pricing; and (ii) a consultation paper on overdrafts (arranged and unarranged). The consultation papers identify the FCA's key areas of concern and direction of travel regarding its work on high-cost credit. Comments can be made until 31 August 2018. The deadline for comments on the rent-to-own discussion questions is 13 July 2018.


FOS annual review for 2017/18

The Financial Ombudsman Service (FOS) published its annual review for 2017/18.
Points of interest include the following: (i) in 2017/18, the FOS received 339,967 new complaints and resolved 400,658 complaints; (ii) the FOS has drawn out three themes that it has seen in the complaints raised: vulnerability, new ideas and new challenges (for example, the development of FinTech and growth of cryptocurrencies), and loyalty and trust; (iii) the largest number of complaints related to consumer credit products and services; and (iv) the greatest increase in complaints concerned corporate bonds and home credit (although, relatively, these account for a small proportion of all complaints).


Provisional text of European Parliament resolution on sustainable finance

The European Parliament has published the provisional edition of the text of the resolution on sustainable finance. The resolution covers a wide range of areas and issues, many of which impact on the financial services sector, including: (i) the role of the financial services sector as regards sustainability and the policies required for correcting market failures; (ii) the integration of sustainable finance criteria in all legislation related to the financial services sector; (iii) sustainability risks within the prudential framework of capital adequacy rules; (iv) labelling systems for financial services; and (v) clarification of the European Supervisory Authorities' mandate. The Parliament President has been instructed to forward to resolution to the Council of the EU and the European Commission.


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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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