PRA recently concluded a thematic review of firms’ private equity financing risk management frameworks and has published the text of a “Dear CRO” letter to banks included in the review.  The review specifically looked at the adequacy of banks’ risk management frameworks that govern their private equity linked financing businesses and related derivatives exposures.  CROs are asked to review the findings and assess against current practices at their firms.  PRA has also published the text of a speech by Rebecca Jackson, in which she sets out the findings of the review, noting that the review identified the trends of “creeping leverage, large exposures, complicated structures, and poor risk aggregation”.

The Committee raises concerns about FCA’s proposals in the CP and sets out 11 questions for the regulator to answer, with the response required by 25 April.  The Committee notes that the consultation formally closes on 30 April, but intends to take evidence and asks FCA not to take further steps until the Committee has had the opportunity to take evidence and reach its conclusions.

This guidance is designed to help firms understand and implement FCA’s anti greenwashing rule, following feedback from some respondents to its consultation paper on SDR and investment labels asking for guidance.

This BoE/PRA letter to HMT and DSIT details AI’s applicability within the scope of their regulatory responsibilities.  BoE/PRA state that they believe they have in place a regulatory framework that will appropriately support the delivery of the benefits that AI/ML can bring, while addressing the risks, in line with the principles set out in the Government’s White Paper.

FCA is consulting on extending the Sustainability Disclosure Requirements and investment labels regime to portfolio management.  Responses are required by 14 June 2024.

TSC has now published a transcript of the hearings held on 17 April 2024, which were attended by Matt Brewis, Director of Insurance at FCA and other industry figures.  Aspects of the Consumer Duty and GI insurance pricing were discussed.

These Regulations amend the Securitisation Regulations 2024/102 and make amendments of other legislation in connection with those Regulations.

Further to a hearing held in February 2024, TSC has now published the text of a letter from FOS which provides clarifications and answers to follow-up questions.  Topics include: 18-month old cases; fraud cases; motor finance commission cases; fractional timeshare cases, and debanking cases.  TSC highlights the latter in a press release.

ESMA has published its response to a request from the EC with regard to amendments to the ELTIF technical standards.  ESMA suggests that there should be a limited number of changes to the EC’s proposed amendments.

In this speech of 22 April 2022, Nathanaël Benjamin discusses aspects of the private equity sector, including concerns over the dynamics of the sector with regard to its “opacity, complexity, and interconnectedness”.