In September 2020, the Financial Services Regulatory Initiatives Forum published the second edition of the Regulatory Initiatives Grid which sets out the planned regulatory initiatives for the next 24 months.
This Grid provides a very useful summary of the key activities of all the main UK regulators. It is normally published twice a year to help firms manage the operational impact of the initiatives taken by the Forum stakeholders.
The Forum is comprised of the Bank of England, the Prudential Regulation Authority, the Financial Conduct Authority, the Payment Systems Regulator and the Competition and Markets Authority, with HM Treasury attending as an observer member.
While the first publication, in May 2020, focused more on the Covid-19 pandemic and how Forum members could work with firms to coordinate either the cancellation or the postponement of certain initiatives to avoid operational burdens, the September update includes a series of forward-looking initiatives.
This update includes an increased number of initiatives that stem from the contribution of the Pensions Regulator and the Information Commissioner’s Office, which have both joined the Forum as well as from feedback gathered by interested stakeholders. While the Regulatory Initiatives Grid shows an expanded two-year horizon, some initiatives that might have been expected are not included given the number of initiatives that have been paused or delayed over the last months.
The Brexit transitional period, which is set to end on 31 December this year, has driven a number of initiatives which can be seen in the near-term regulatory landscape. Other important initiatives include the completion of ‘onshoring’ EU legislation and regulations by way of making UK Statutory Instruments as well as the implementation of the CRD V and BRRD II.
The Regulatory Initiatives Grid also presents some long-term initiatives which include the phase-out of LIBOR, increased margining of OTC derivative contracts, achieving resolvability, and strengthening operational resilience across multiple sectors. Lastly, as the Regulatory Initiatives Grid suggests, the financial services industry stakeholders will have the opportunity to collaborate with Forum members in the long-term development of the regulatory framework within their sector.
https://www.fca.org.uk/publications/corporate-documents/regulatory-initiatives-grid
