The following have been published in the Official Journal: (i) Commission Delegated Regulation (EU) 2022/25 of 22 September 2021 supplementing IFR with regard to regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of that Regulation; (ii) Commission Delegated Regulation (EU) 2022/26 of 24 September 2021 supplementing IFR with regard to regulatory technical standards specifying the notion of segregated accounts to ensure client money’s protection in the event of an investment firm’s failure.

EBA has published an Opinion on the treatment of client funds under DGSD, where it assesses the current approaches to the protection of funds deposited with credit institutions on behalf of clients by entities that are themselves excluded from DGS protection. EBA includes some recommendations to the EC.

FCA has published this "Dear CEO" letter which sets out the results of a review of certain GI intermediaries’ client money arrangements which identified common shortcomings FCA believes may indicate more widespread non-compliance throughout the sector. Firms are expected to review their client money arrangements in light of the issues highlighted.

FCA has published an updated version of the Handbook to show the rules that will apply at the end of the transition period. FCA intends to apply the TTP on a broad basis from the end of the transition period until 31 March 2022. FCA notes that there are areas where it would not be appropriate for it to grant relief at the end of the transition period, including where doing so would not be consistent with its statutory objectives. FCA has listed a number of key areas where it expects firms and other regulated persons to be preparing to comply with changed obligations ready for 31 December 2020: The press release below sets out a number of links to further details, including: details on the list of exceptions; updated draft directions, draft annexes and TTP explanatory note; and a Brexit Handbook navigational guide.

FCA has published a statement for firms providing portfolio management services or holding retail client accounts that include positions in leveraged financial instruments or contingent liability transactions. A temporary measure on 10% depreciation notifications took effect from 31 March 2020 to 30 September 2020 and FCA has now outlined a six-month extension from 1 October 2020 and amendments to the measure. FCA has also amended its extension of the previous flexibility regarding professional investors.

FCA has published two “Dear CEO” letters on client assets arrangements during the Covid-19 pandemic, the second of which is specifically aimed at GI intermediaries.

FCA has published a “Dear CEO” letter aimed at firms who provide a non-discretionary investment service. FCA is concerned with regard to the increase in client money balances at some firms and states that it good practice in this period for firms to communicate with clients about increased client money balances to ascertain whether these should be returned to them or continue to be held by the firm to facilitate further investment in the short term. If it is in clients’ better interests during this period, FCA expects firms to return client money balances which are unlikely to be reinvested in the short term. It will continue to review client money balances and follow up with firms that report significantly increased balances.

JMLSG has published a new annex within Part I: Annex 5-V (pooled client accounts) and a new sectoral piece within Part II: Sector 22 (cryptoasset exchange providers and custodian wallet providers). There is also a minor amendment to paragraph 5.3.53 within Part I.

Further to its June 2020 consultation, FCA has published finalised guidance and feedback along with a “Dear CEO” letter. In the letter, FCA notes it has identified six key areas of concern (safeguarding arrangements; prudential risk management; financial crime, financial promotions and consumer communications; governance and oversight and records management and reporting).

Megan Butler’s speech of 4 June 2020 follows. She notes that key areas of focus for the regulator include operational and financial resilience; raises concerns over phoenixing, lifeboarding and other conduct issues and concludes with some remarks on the future of regulation.