You’ll have seen that LBMA launched version two of the Global Precious Metals Code (Code) on December 13, 2022, but that wasn't the end of the process, which started more than a year ago. Member firms will need to attest to the Code before the end of the year, so please ensure that the work required to meet the attestation is planned. If any training is required, LBMA hosted a webinar on that very subject in January which may help and is available to watch on the LBMA website. Or feel free to contact me, or our training partners at ACI – FMA should you like more information.
LBMA will also seek recognition of the Global Precious Metals Code from the Financial Conduct Authority (FCA) under the FCA recognition process, and we are working to achieve this status for version 2. I would like to thank those involved in the Working Group and the consultation process for their time in getting version 2 over the line, it is much appreciated.
Late last year DEFRA announced that subject to the consent of the Scottish and Welsh governments, the UK government intends to introduce legislation that would extend the submission deadlines across all tonnage bands by three years (October 2026, October 2028 and October 2030).
We will closely follow developments in this space and issue an update when appropriate. We have heard that the EU REACH revision has been pushed back by the EU Parliament. We are not expecting much information in the first half of 2023 but as we hear news, we will pass it on.
MEMBER FIRMS WILL NEED TO ATTEST TO THE CODE BEFORE THE END OF THE YEAR, SO PLEASE ENSURE THAT THE WORK REQUIRED TO MEET THE ATTESTATION IS PLANNED.
EU CORPORATE SUSTAINABILITY REPORTING DIRECTIVE
On November 28, 2022, the EU council approved changes to EU Corporate Sustainability Reporting Directive (CSRD). The changes apply the new rules to all
non-EU companies who have a net turnover of €150 million in the EU and have a subsidiary in the EU, and to EU listed entities with a smaller turnover, and
non-listed EU companies who exceed two or three of the following:
- balance sheet total over €20m,
- net turnover of €40m,
- average number of employees of 250 or more.
It will require reporting on a full range of the companies’ sustainability information and reporting must meet the mandatory reporting standard to be developed by the
EU, with the information being subject to audit assurance. The directive will be implemented in three stages. For companies already subject to CSRD, the changes will apply from January 1, 2024. For large companies not currently subject to CSRD, January 1, 2025. And for listed SMEs and non-listed smaller credit institutions, January 1, 2026. Other SMEs can opt out until 2028. Simmons and Simmons kindly presented on this subject at December’s Regulatory Affairs Committee.
THE FINANCIAL SERVICES AND MARKETS BILL
At the time of writing, this bill – in excess of 300 pages – was making its way through Parliament. There’ll be more to come on this as we go through the year, but I suspect this is already on most readers’ radars.
Throughout 2023 I am keen to develop a regulatory outreach programme, which will have various workstreams. One of which is to build a database of contacts who are interested in emails from me on subjects of a regulatory nature. If that is for you, please email me on email@example.com.
I have had a request from a Member about re-introducing the Financial Crime Working Group. If you would be interested in joining a session every three or four months to discuss current financial crime hot topics, please let me know.
LBMA has listened to feedback and is keen to discuss the possibility of the development of compliance or regulatory training requirements, to complement our existing training regarding the Code. Please get in touch and let me know any other areas where LBMA can potentially provide support.