Her Majesty’s Treasury has published draft legislation intended to implement key recommendations made by the Independent Commission on Banking on the reform of the UK banking system. The draft bill will now be scrutinised by the Parliamentary Commission on Banking Standards before formally being introduced to Parliament in early 2013. The Government expects to have the legislation finalised by 2015, with banks being required to comply with all aspects of the Independent Commission’s recommendations starting in 2019. Link to relevant HM Treasury web page here (links externally to HM Treasury

The European Banking Authority has reported on its findings from a follow-up assessment of banks’ disclosures made in response to the Pillar 3 requirements set out in the Capital Requirements Directive. The report indicates areas where banks have improved their disclosures and other areas where further impvoement is needed. The EBA singles out disclosures by specific banks in various areas that it considers to represent "best practices." Following this report, the EBA intends to implement a strategy for enhanced transparency, and aims to continue to identify best practices for public

Much anticipated approach documents have been published on the operation of the Prudential Regulatory Authority and the Financial Conduct Authority, two of the UK’s new financial regulators scheduled to take full effect in early 2013. In regards to the Financial Conduct Authority, which will be charged with oversight of conduct of business issues for all FSA-authorised firms, the FSA has outlined a number of changes in its current approach to conduct of business in its approach document. For example, the new authority will devote greater resources to analysing risks and cross-industry issues

Further to the regulation on short selling and certain aspects of credit default swaps, which is due to become effective on November 1st, the European Securities and Markets Authority has published an indicative list of thresholds applicable to sovereign issuers for the purposes of notification to competent authorities of significant net short positions in sovereign debt. The finalized thresholds will be published by November 1, 2012. Interested entities that may hold notifiable short positions should check for regular updates of the table. Lofchie Comment: The question for US advisers and

Further to the upcoming division of the Financial Services Authority into the Financial Conduct Authority and the Prudential Regulation Authority, the FSA has announced that assessments with regards to FSA authorizations for firms that will be regulated by both authorities will be handled by both the Prudential Business Unit and the Conduct Business Unit. The final decision on authorization will be agreed to by both units, and they will be expected to coordinate in order to avoid duplication. The process for submitting applications will not change, and the FSA will endeavor to continue meeting