Each month, FactSet's Regulatory team offers a rundown of the most important developments in compliance and regulatory news. Read on to see which stories dominated the conversation last month.
On March 29, 2017, the United Kingdom notified its intention to withdraw from the European Union (EU)—Brexit. The UK then formally left the EU on January 31, 2020, when the withdrawal agreement entered into force.
The withdrawal agreement started a transition period until December 31, 2020. From January 1, 2021, the UK is no longer an EU member state but continues to apply EU law.
The European Securities and Markets Authority (ESMA), the EU National Competition Authority (NCA), and the UK Financial Conduct Authority (FCA) worked closely lately to ensure that market participants are aware of how they will be affected after January 1, 2021, and what might change. ESMA prepared different publications on various themes (share trading obligation (STO), derivative trading obligations, access to UK central counterparties (CCPs), and so on).
ESMA also started to withdraw authorizations for some UK-based entities in the Union with the European passport:
The Association of National Numbering Agencies (ANNA) announced in December the expansion of the ISIN-to-LEI Mapping Initiative. This ISIN to LEI mapping helps effectively link issuers to the issuance of securities, thereby improving transparency and aiding risk and exposure management. The ISIN-to-LEI mapping table is freely available to all without restriction and links to the data are available from both the Global Legal Entity Identifier Foundation (GLEIF) and ANNA.
ESMA asks for comments on the consultation paper on MiFID II/MiFIR review report on algorithmic trading. Comments should be sent before March 12, 2021.
In December, ESMA published final guidance to address leverage risk in the Alternative Investment Fund (AIF) sector
In early December, the Council of the EU adopted a decision and a regulation (Council Regulation (EU) 2020/1998) establishing a global human rights sanctions regime. This framework will enable targeting of individuals, entities, and bodies—including state and non-state actors—responsible for, involved in, or associated with serious human rights violations and abuses worldwide, no matter where they occurred.
The council of the EU approved conclusions on the Commission's new action regarding the Capital Markets Union
In December, the Securities and Exchange Commission (SEC) issued a raft of final rules under the ’33 Act, ’34 Act, Investment Adviser Act, and Investment Company Act. In chronological order, the new final rules are as follows: