10 THINGS ABOUT CRD VI

The latest iteration of capital regulations for banks and investment firms - CRD VI[1]- presents challenge for non-EU (third country) institutions which currently offer, or plan to offer, ‘core banking services’ in the EU. Such activities are currently harmonised in the European Union only to a ‘very limited extent’[2]. CRD VI will introduce harmonized standards, requiring, at least, that in-scope entities offering such services establish an EU authorised branch in the relevant EU Member State. With authorization comes minimum requirements on capital, liquidity, governance and risk management and the booking of transactions.

By Keith Blizzard, April 2025

KEITH BLIZZARD JOINS CHAMBERS

We are delighted to welcome Keith to Temple Square Chambers. Keith is a senior barrister, called to the English Bar in 1997, with more than 20 years’ experience in global banking and capital markets. He has particular experience in the regulation (UK, and EU) of derivatives, securitisation, and corporate lending. Within Chambers, Keith will be leading on the implementation of CRD VI and the US Treasury Securities Clearing Mandate. We very much look forward to working with Keith.

2nd April 2025

CHEN-LUM HONG JOINS CHAMBERS

We are delighted to welcome Chen-Lum Hong to Chambers. Chen-Lum is a senior solicitor with more than 20 years’ experience in international financial law and securities regulation. His clients include leading investment banks, multinationals, insurers and supra national agencies. He advises on the prudential regulation of CRR-firms including their CRD/Basel Accords requirements, as well as on bank recovery and resolution planning and Solvency II requirements. We very much look forward to working with him.

4th December 2024

IAN MCLAUGHLIN JOINS CHAMBERS

Chambers is delighted, that Ian McLaughlin has joined Chambers. He is a senior financial services regulatory and capital markets lawyer with approaching 20 years’ experience in advising international financial services institutions and fintechs.  His practice includes regulatory authorisations and investigations, corporate governance, market conduct, financial crime, securities finance,  derivatives and fintech regulation.  He also has extensive experience offering fractional general counsel and legal/regulatory project management execution services. We warmly welcome Ian to Chambers and look forward to working with him.

4th November 2024

REGULATING FINANCIAL INNOVATION: STARTING FROM SCRATCH

The UK is a major financial market. To retain that position in future, it must be able to accommodate and regulate innovation. That means not being fettered by imperfect analogies with existing law. It must, in other words, be capable of going back to basics when necessary. There are two ways of approaching this.

In one approach, a comprehensive set of rules is set up and applied by a statutory body. Examples of this are the EU’s 2004 Markets in Financial Instruments Directive (MiFID), and the cryptoassets directive (MiCA) currently being implemented. Another approach follows….

By Dr. Julian Roberts, (February 2024) Butterworths Journal of International Banking and Financial Law

TRANSITIONAL CAPITAL REGIME FOR NON-SYSTEMIC UK BANKS AND BUILDING SOCIETIES (FIRMS)

In response to the GFC, the Basel Committee introduced reforms to the Basel standards known as the 'Basel III standards'. They are intended to address shortcomings identified in the calculation of risk-weighted assets (RWAs) and capital ratios, defined as the ratio of capital held by firms to RWAs. The Committee identified the following 3 factors key to mitigating the severity of subsequent financial crises:  1. raising the quantity of capital in the financial system, per unit of risk; 2. increasing the quality of capital held by firms; and 3. improving the accuracy of risk measurement by firms.    Most of the Basel III standards have already been….

8th January 2023