Global Financial Regulatory Blog

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Reducing Socioeconomic Bias in the UK Financial Services Sector: Emerging Best Practice

The Financial Services Skills Commission has issued an insight paper outlining how companies can collect and evaluate data on employees’ socioeconomic backgrounds. By David Berman, Nicola Higgs, Rob Moulton, and Dianne Bell Socioeconomic backgrounds of employees and socioeconomic diversity at senior levels across the UK financial services industry is beginning to feature more prominently in … Continue Reading

CFTC Mandates Clearing for Interest Rate Swaps on IBOR Alternatives

A new rule removes the requirement to clear IBOR-based swaps and extends mandatory clearing to swaps on IBOR alternatives. By Yvette D. Valdez and Adam Bruce Fovent On August 12, 2022, the US Commodity Futures Trading Commission (CFTC) voted to amend its mandatory clearing requirements for interest rate swaps (the Rule). The vote furthers the … Continue Reading

Recap on Reforming the UK Capital Markets

A reminder of the ongoing reforms to implement recommendations from the Lord Hill and Kalifa Reviews. By James Inness, Anna Ngo, and Johannes Poon The outcome of the UK Secondary Capital Raising Review, launched on 12 October 2021 to improve further capital raising processes for UK publicly traded companies, was published by HM Treasury on … Continue Reading

Major Reforms to UK Secondary Capital Raising Processes

The landmark UK Secondary Capital Raising Review Report takes a holistic approach in making bold and comprehensive recommendations to improve the UK secondary capital raising processes and ecosystem. By James Inness, Anna Ngo, Ryan Benedict, and Johannes Poon On 19 July 2022, HM Treasury published the UK Secondary Capital Raising Review Report (the Report) that … Continue Reading

European Central Bank Announces Plans to “Green” the Debt Capital Markets

The policy change integrates climate change considerations for the first time into the ECB’s quantitative easing and repo facilities. By Roberto Reyes Gaskin, Edward Kempson, and Peter Neuböck On July 4, 2022, the European Central Bank (ECB) announced that it would integrate climate change considerations into Eurosystem monetary policy through changes to its corporate bond … Continue Reading

SEC Adopts Amendments to Form 13F

Changes include switching from paper to electronic filing requirement for confidential treatment requests. By Stephen P. Wink, Naim Culhaci, Jackie Rugart and Matthew Lee On June 23, 2022, the Securities and Exchange Commission (SEC) adopted certain amendments to Form 13F (the Adopting Release) that will become effective at the beginning of 2023.… Continue Reading

CFTC Issues Request for Information on Climate-Related Financial Risk

The agency will use the information to take further steps to address climate risks in the commodity derivatives markets. By Jean-Philippe Brisson, Yvette Valdez, Douglas Yatter, Joshua Bledsoe, Michael Dreibelbis, Qingyi Pan, and Deric Behar On June 2, 2022, the Commodity Futures Trading Commission (CFTC) issued a Request for Information (RFI) to inform its understanding … Continue Reading

FCA Proposes to Unify the Listing Regime for Commercial Companies Under a Single Listing Segment

The regulator continues its Primary Markets Effectiveness Review to promote the competitiveness of a UK listing. By Chris Horton, James Inness, Anna Ngo, and Johannes Poon On 26 May 2022, the FCA published a discussion paper (DP22/2) to seek further views on how to make the UK listing regime more effective, easier to understand, and … Continue Reading

FCA Finalises Rules to Improve Transparency Around Diversity of Boards and Executive Management

The new rules provide issuers with flexibility to report on representation of women by reference to either gender identity or sex. By Chris Horton, James Inness, Anna Ngo, Nicola Higgs, David Berman, Rob Moulton, and Johannes Poon On 20 April 2022, the FCA published its final policy decision on the proposals set out in CP … Continue Reading

SEC Proposes to Expand Interpretation of “Dealer” and “Government Securities Dealer” Definitions

By Laura Ferrell, Marlon Q. Paz, Nabil Sabki, Stephen P. Wink, Naim Culhaci, and Deric Behar On March 28, 2022, the US Securities and Exchange Commission (SEC) proposed rules (Proposing Release) that would require securities market participants that engage in dealer-like activities — such as a proprietary trading firm that engages in a routine pattern … Continue Reading

FCA’s 2022/23 Business Plan: Key Highlights

As the FCA’s remit continues to grow, the regulator pledges flexibility in the face of global financial and geopolitical headwinds. By Rob Moulton, Anne Mainwaring, Jaime O’Connell, and Dianne Bell On 7 April 2022, the FCA released its new Business Plan as part of a package including  a three-year strategy document setting out the outcomes … Continue Reading

Expanded Definition of “Exchange” and SEC Regulation of Crypto Platforms

The amended definition could provide a new means for the SEC to regulate crypto platforms. By Stephen P. Wink, Marlon Q. Paz, Naim Culhaci, Ian Irlander, and Deric Behar We previously published a blog post on the set of proposed amendments (Proposal) issued on January 26, 2022, by the Securities and Exchange Commission (SEC) regarding … Continue Reading

SEC Proposes to Expand the Definition of an “Exchange”

Updated on May 9, 2022. The proposal would require certain systems and platforms currently not subject to any registration requirements to register as broker-dealers and ATSs. By Stephen P. Wink, Marlon Q. Paz, Naim Culhaci, and Deric Behar On January 26, 2022, the Securities and Exchange Commission (SEC) issued a set of proposed amendments (Proposal) … Continue Reading

Hong Kong’s New Crypto Regulatory Framework to Facilitate Greater Institutional Participation

Regulators released comprehensive guidance to banks, intermediaries, and insurers on virtual asset-related activities. By Simon Hawkins and Adrian Fong On 28 January 2022, Hong Kong’s principal financial services regulators issued much-anticipated guidance to banks, securities firms, and insurers looking to undertake activities related to virtual assets (VAs). In particular: The Hong Kong Monetary Authority (HKMA) … Continue Reading

UK to Regulate Cryptoasset Promotions

HM Treasury has confirmed that it will bring certain unregulated cryptoassets within scope of the financial promotions regime. By Stuart Davis, Rob Moulton, and Charlotte Collins On 18 January 2022, the UK government confirmed its intention to bring the promotion of certain cryptoassets into scope of regulation. HM Treasury has been considering for some time … Continue Reading

French and Dutch Regulators Propose Tighter Supervision of Cross-Border Retail Activities

The regulators suggest improvements to the supervision of firms passporting retail products and services in the EU. By Rob Moulton, Thomas Vogel, and Charlotte Collins The French and Dutch financial services regulators (the AFM and the AMF) have published a joint position paper on strengthening conduct supervision of cross-border retail financial services. The regulators are … Continue Reading

SEC Proposes Stricter Requirements for the Rule 10b5-1 Affirmative Defense

The Proposal would have a significant impact on current practices surrounding the use of Rule 10b5-1 plans by public companies and insiders. By Joel H. Trotter, Stephen P. Wink, Naim Culhaci, and Deric Behar On December 15, 2021, the Securities and Exchange Commission (SEC) issued a set of proposed amendments (the Proposal) regarding the adoption … Continue Reading

10 Key Focus Areas for UK-Regulated Financial Services Firms in 2022

This annual publication outlines some of the primary focus areas in 2022 for UK-regulated financial services firms. There has been a marked shift away from dealing with immediate post-Brexit priorities to more fundamental consideration of the direction of travel of UK financial services regulation, and this is borne out across many of the topics covered … Continue Reading

SEC Staff Issues Key Considerations on LIBOR Transition

As a major LIBOR transition milestone approaches, a Staff Statement provides key considerations for market participants regarding their obligations. By Laura N. Ferrell, Marlon Q. Paz, Zach Lippman, and Deric Behar On December 7, 2021, the Staff of the Securities and Exchange Commission (SEC) issued a statement (the Statement) on the transition away from the … Continue Reading

Review of UK Appointed Representatives Regime to Increase Burden on Principal Firms

UK regulators are considering how they can strengthen the regime to enhance standards and reduce risk. By Nicola Higgs and Charlotte Collins On 3 December 2021, the FCA published a Consultation Paper (CP21/34) on changes to its rules regarding the Appointed Representatives (AR) regime. HM Treasury simultaneously published a Call for Evidence, seeking views on … Continue Reading

FCA Launches Discussion on Sustainability Disclosure Requirements and Product Labels

The regulator is inviting views on potential criteria for classifying and labelling investment products, and on further entity- and product-level sustainability-related disclosures. By David Berman, Paul A. Davies, Nicola Higgs, Anne Mainwaring, and Charlotte Collins On 3 November 2021, the FCA published a Discussion Paper (DP21/4) on UK Sustainability Disclosure Requirements (SDR) and product labels. … Continue Reading

FSOC Issues Recommendations on Climate-Related Financial Risk

A wide-ranging report encourages regulators to take a concerted approach to combat climate-related risks to the US financial system. By Jean-Philippe Brisson, Paul A. Davies, Nicola Higgs, Malorie R. Medellin, and Deric Behar On October 21, 2021, the Financial Stability Oversight Council (FSOC) published a lengthy report on Climate-Related Financial Risk (the Report), marking the … Continue Reading

President Biden Presents a Roadmap for Mitigating the Climate Crisis

A new national strategy report aims to combat climate-related risks to the US financial system. By Jean-Philippe Brisson, Paul A. Davies, Nicola Higgs, Malorie R. Medellin, and Deric Behar On October 14, 2021, the Biden Administration issued “A Roadmap to Build a Climate-Resilient Economy” (the Roadmap), a national strategy report with tangible initiatives that build … Continue Reading

US Department of Labor Puts ESG Investing Back on the Menu

A new proposal would amend changes made to ERISA less than a year ago that have proved to be detrimental to ESG investing. By Jean-Philippe Brisson, Paul A. Davies, Nicola Higgs, Malorie R. Medellin, and Deric Behar In a sweeping reversal of Trump-era policies, the US Department of Labor (DOL) has issued a proposed rule, … Continue Reading
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