Financial Services SpeedRead :          3 February 2021

1. Secretary of State announces submission of notification of intent to begin the Comprehensive and progressive Agreement for Trans-Pacific Partnership accession process

On 1 February 2021, Elizabeth Truss, the Secretary of State for International Trade, published a written statement announcing that the UK Government had submitted its notification of intent to begin the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) accession process. The statement describes the step as part of a strategic move by the Government that aims to deepen the UK's access to fast-growing markets and major economies of the future, such as Mexico, Malaysia and Vietnam.

The CPTPP is a free trade agreement covering multiple sectors, including financial services. It is worth £9 trillion and accounted for 13% of global GDP in 2019. The statement notes that acceding would remove trade barriers and help business trade more easily across borders, as well as keep supply chains open and predictable. The UK is the first country to take forward accession negotiations since the agreement was formed in 2018, meaning that it is front of line to become the next full member. Other economies such as Thailand, Taiwan, Colombia and South Korea have expressed in an interest in joining.

The Secretary of State states that the UK will publish its negotiation objectives, scoping analysis and consultation response for public and parliamentary scrutiny, once they are ready to begin formal negotiations. She emphasises that the Government will only accede to CPTPP on terms compatible with the UK's broader interests and domestic priorities.

2. HM Treasury announces plans to deepen the UK and Switzerland's cooperation on financial services

On 27 January 2021, HM Treasury published a press release announcing its plans to move forward to the next stage of talks between the UK and Switzerland on an agreement on financial services. Following initial exploratory talks, the two countries will commence negotiations on the ambition of delivering a comprehensive mutual recognition agreement that would reduce costs and barriers for UK firms accessing the Swiss market, and vice versa. Negotiations are set to continue over the coming months and are expected to cover a wide range of sectors such as insurance, banking, asset management and capital markets, including market infrastructure.

3. EU Commission adopts Implementing Decision on equivalence of the US SEC regime for the purposes of EMIR

On 27 January 2021, the EU Commission announced in a press release its adoption of an equivalence decision, determining that the US SEC regime for US central counterparties (CCPs) is equivalent to EU rules. The decision determines that the legal and supervisory arrangements applicable to US CCPs registered with the SEC can be considered equivalent to the requirements in EMIR. This allows US CCPs registered with the SEC to apply for recognition by ESMA. Once recognised, these US CCPs will be able to provide central clearing services in the EU.

The decision only applies to SEC-regulated covered clearing agencies and is conditional on the US CCPs having in place rules with respect to certain risk management requirements (i.e. liquidation periods and anti-procyclicality measures).

4. EU Commissioner on next steps regarding the future UK-EU relationship

On 25 January 2021, Mairead McGuinness, the EU Commissioner for Financial Services, delivered a speech at a meeting of the EU Parliament's Economic and Monetary Affairs Committee, during which she outlined certain initiatives within the EU Commission's work programme for 2021. In particular, Commissioner McGuinness set out the next steps regarding the UK-EU relationship in the financial services sector.

Although the EU and the UK agreed to reach a Memorandum of Understanding on Financial Services by 31 March 2021, Commissioner McGuinness noted that talks had not yet begun. However, the EU Commission envisages a framework similar to that between the EU and the USA, involving a voluntary structure to compare regulatory initiatives, the exchange of views on international developments and discussions on equivalence-related issues. The Commissioner emphasised that discussions on the future relationship between the EU and the UK will not be about restoring market access rights that the UK has now lost, nor about constraining the EU's unilateral equivalence process.

The Commissioner stated that once the working arrangements are agreed, the EU will be able to resume its unilateral equivalence assessments of the UK, using the same criteria as with all third countries. The Commissioner also noted that the UK intention to diverge requires a case-by-case discussion in each area and that "equivalence and divergence are polar opposites".

5. ESMA launches common supervisory action with NCAs on application of MiFID II product governance rules across the EU

On 1 February 2021, ESMA announced in a press release that it is launching a common supervisory action (CSA) with NCAs on the application of MiFID II product governance rules across the EU. The CSA will be conducted during 2021 and aims to allow ESMA and the NCAs to assess

• how manufacturers ensure that financial products' costs and charges are compatible with the needs, objectives and characteristics of their target market and do not undermine the financial instruments' return expectations;
• how manufacturers and distributors identify and periodically review the target market and distribution strategy of financial products; and
• what information is exchanged between manufacturers and distributors and how frequently this is done.

The CSA will consider ESMA's 2017 guidelines on MiFID II product governance requirements and also the Q&As published by ESMA on the topic of product governance.

The CSA contributes to fulfilling ESMA's mandate on building a common supervisory culture among NCAs, in order to promote sound, efficient and consistent supervision throughout the EU.

6. ESMA consultation paper on appropriateness and execution-only requirements under MiFID II

On 29 January, ESMA issued a consultation paper on appropriateness and execution-only requirements under MiFID II. The consultation paper contains draft guidelines designed to clarify and promote convergence in relation to the application of certain aspects of the appropriateness and execution-only requirements. It takes into account the results of supervisory activities conducted by NCAs on the application of the requirements.

ESMA has used its guidelines on MiFID II suitability requirements to serve as the basis for the draft guidelines, and has adjusted these for the appropriateness and execution-only framework. Key guidelines include:

• Guideline 9 (Effectiveness of warnings): The warning issued by firms in case no information is provided by the client on his knowledge and experience or this is insufficient, or in case the assessment of such information shows that the investment service or product offered or demanded is not appropriate for the client, must be clear and not misleading.
• Guideline 12 (Determining situations where the appropriateness assessment is required): Firms should adopt appropriate arrangements to ensure that they are able to determine situations where an appropriateness assessment needs to be performed and avoid performing one in situations where a suitability assessment needs to be performed.
• Guideline 13 (Controls): Firms should have appropriate monitoring arrangements and controls in place to ensure compliance with the appropriateness requirements.

The deadline for comments on the draft guidelines is 29 April 2021. ESMA will consider the feedback received and expects to publish the final report and guidelines in Q3 2021

7. ESMA publishes letter to the EU Commission on the main challenges in the area of ESG ratings and assessment tools

On 29 January, ESMA published a letter addressed to the EU Commissioner, sharing its views on the key challenges in the areas of sustainable finance, specifically the unregulated and unsupervised nature of the market for ESG ratings and assessment tools. ESMA explains that the structure of this area gives rise to risks of capital misallocation, product mis-selling and greenwashing.

To address these issues, ESMA sets out a potential legal framework, which includes the following:

• a common legal definition for an ESG rating that would capture the broad spectrum of assessment tools currently available in the market;
• that any legal entity whose occupation includes the issuing of ESG ratings and assessments should be required to be registered and supervised by a public authority;
• specific product requirements applicable to ESG ratings and assessments provided by supervised entities; and
• organisational and conflict of interest requirements for larger providers, to reflect their growing importance in sustainable finance.

8. FCA Handbook Notice 84

On 29 January, the FCA published Handbook Notice 84. This sets out changes to the FCA Handbook made by the FCA Board on 28 January 2021, through the following instruments:

• Fees (Trade Repositories and Securitisation Repositories) Instrument 2021 (FCA 2021/1): This instrument makes changes to the Glossary in relation to future applications for trade repositories, and securitisation repositories.
• Markets in Financial Instruments (Tick Sizes) Instrument 2021 (FCA 2021/2): This instrument introduces amendments to the tick size regime under MiFID II to reflect changes brought about by the Investment Firms Directive. This provides that the tick size regime should not prevent trading venues from matching large-in-scale orders at mid-point, within current bid and offer prices.
• Listing Rules (Open-ended Investment Companies) Instrument 2021 (FCA 2021/3): This instrument makes changes to the Listing Rules sourcebook concerning the introduction of a more proportionate listing regime for open-ended investment companies in standard listing.

9. ESMA updates Q&As on SFTR data reporting

On 28 January 2021, ESMA updated its Q&As on SFTR data reporting under Regulation (EU) 2015/2365 on transparency of securities financing transactions (SFTR). In a press release, ESMA stated that the Q&As were amended to clarify:

• reporting of events that were not duly reported on time;
• updates to records of outstanding securities financing transactions by trade repositories based on reports made by counterparties; and
• operational aspects concerning the reporting by financial counterparties on behalf of small non-financial counterparties under Article 4(3) of the SFTR.

10. FCA and FRC joint statement reminding companies that extended financial information timelines continue to apply

On 27 January 2021, the FCA and FRC issued a joint statement reminding companies that the public policy interventions made in 2020 to provide more time to ensure that published financial information continues to be of the quality expected by preparers and users of financial information are still applicable in light of the COVID-19 lockdowns. These measures include:

• allowing listed companies an additional two months to publish their audited financial reports;
• an automatic extension of 3 months to the deadline for filing any accounts with Companies House; and
• certain flexibilities around the conduct of AGMs.

The FCA and FRC encourage all stakeholders, in particular boards of listed companies, to re-familiarise themselves with the measures and to use them in light of any resourcing constraints in finance and/or audit terms, in order that the quality of reporting is not compromised during this period. Investors and other users of financial information are also alerted that reporting timetables for companies might be extended, and to view any such changes in the context of the current pandemic.

The FCA and FRC also emphasised that MAR remains in force and companies are still required to fulfil their obligations in respect of inside information as soon as possible. Further, the FRC has issued a series of guidance in respect of reporting obligations and the disclosure of circumstances in the context of the pandemic.

On the same day, the FCA also updated its Q&As relating to the delay of annual company accounts and half yearly financial reports during the pandemic.

11. EU Parliament updates its procedure file on the legislative proposal for the MiFID Quick Fix

On 25 January 2021, the EU Parliament updated its procedure file on the legislative proposal to amend MiFID II in order to facilitate the economic recovery of the EU post-COVID-19 (otherwise known as the "MiFID Quick Fix" proposals), indicating that it will consider the Directive during its plenary session to be held from 8 to 11 February 2021.

As a reminder, the MiFID Quick Fix proposals aim to provide a streamlined application of regulatory requirements, while keeping high safeguards for retail clients but allowing for more flexibility for wholesale clients. The EU Commission is proposing to provide administrative relief for professional clients and eligible counterparties, and to enable businesses in the real economy to cope with market volatility, while also allowing the emergency of new commodity contracts.

Proposed information and product governance amendments include:

• phasing out paper as the default method for communication with clients;
• introducing an exemption from the cost and charges information requirements for eligible counterparties and professional clients, for services other than investment advice and portfolio management;
• allowing for delayed transmission of cost information when using distant communication channels, to just after the transaction;
• providing for lighter ex-post reporting obligations to clients concerning the services they have received;
• allowing professional investors to waive the cost-benefit analysis (which is compulsory under the suitability rules) in the event of a change of product during the course of the client relationship;
• temporarily suspending the requirement to publish best execution reports; and
• lifting the product governance requirements for bonds with 'make-whole' clauses.

Proposed commodity derivatives amendments include:

• restricting the requirements on position limits to derivatives with agricultural commodities and commodity derivatives traded on trading venues and in economically equivalent OTC directives designated as significant or critical; and
• introducing a hedging exemption from the position limits regime for financial counterparties that provide liquidity to non-financial counterparties in a predominantly commercial group.

12. EBA publishes final report on draft RTS on risk takers and variable remuneration

On 21 January 2021, the EBA published its final report containing draft regulatory technical standards (RTS), setting out criteria to identify categories of staff whose professional activities have a material impact on an investment firm's risk profile or assets it manages, under Article 30(4) of the Investment Firms Directive ((EU) 2019/2034) (IFD). The identification criteria are comprised of a combination of qualitative and quantitative criteria, and presumes that the staff with a high level of total remuneration have a higher impact on the risk profile or assets it manages compared to staff with significantly lower remuneration levels. A staff member will be characterised as 'identified staff' under the IFD if at least one of the criteria under the RTS is met. Any identified staff under these RTS would then be required to comply with the principles of the IFD.

The final report has been submitted to the EU Commission.

13. EU Commission consultation on the establishment of a European single access point

On 21 January 2021, the EU Commission published a consultation on the establishment of an EU single access point (ESAP) for companies' financial and sustainable investment-related information that must be made public pursuant to EU legislation. The ESAP is the first step of the EU Commission's new action plan on the Capital Markets Union, and it aims to resolve difficulties faced by stakeholders in accessing, comparing and using the companies' financial and sustainability-related information. Areas covered by the consultation include:

• the scope of information that should be included in the ESAP;
• format(s) in which the information in ESAP should be made available;
• the method for accessing to and retrieving the information;
• preferred technical solution(s) to establish the architecture of ESAP; and
• how to ensure the quality and integrity of the information within ESAP.

14. The EU Commission Communication on fostering openness, strength and resilience in the EU economic and financial system

On 20 January, the EU Commission issued a Communication addressed to the European Parliament, the Council of the EU, the ECB, the European Economic and Social Committee and the Committee of the Regions, setting out its strategy on the resilience of the EU's economic and financial system. The strategy has three central objectives: (a) strengthening the role of the Euro; (b) further developing EU financial market infrastructures; and (c) further promoting the uniform implementation and enforcement of the EU's own sanctions.

The EU Commission considers that EU market participants need to reduce their exposures to systemic CCPs in third countries. It argues that the temporary equivalence decision on the UK’s framework for central counterparties demonstrates financial stability risks in relation to the volume of current exposures of EU clearing members towards UK CCPs.

The EU Commission also considers that promoting sustainable finance will allow EU financial markets to develop into a global "green finance" hub and bolster the Euro as the default currency for the denomination of sustainable financial products.

Key actions listed in the EU Commission's Communication include the following:

• the EU Commission will carry out a further review of MiFID/MiFIR in 2021. As part of this review, the Commission will propose to simplify and further harmonise the securities markets transparency framework to increase secondary trading in Euro-denominated debt instruments;
• the EU Commission will review the EU Benchmark Regulation in 2022 to, among other things, assess whether further reform is needed to enhance the robustness of Euro-denominated interest rate benchmarks;
• the EU Commission will establish a working group to assess possible technical issues relating to the transfer of financial contracts denominated in Euro or other EU currencies cleared outside the EU to central counterparties located in the EU; and
• the EU Commission will promote the use of green bonds as tools for the financing of investments and projects necessary to achieve the objectives of the European Green Deal.

The EU Commission will monitor the actions on an ongoing basis and will review implementation results in 2023.

15. PRA publishes consultation paper on depositor protection identity verification

On 20 January 2021, the PRA published a consultation paper (CP3/21) on identity verification in relation to depositor protection. The consultation paper sets out the PRA's proposed rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS). Under the current rules in the Depositor Protection Part of the PRA Handbook, if a depositor or ultimate beneficiary has not had their identity verified in accordance with the relevant AML requirements at the compensation date, their deposits are automatically ineligible for FSCS protection. The proposed rule changes are intended to prevent FSCS eligibility issues in this situation, by allowing identity verification to be carried out retrospectively.

The consultation paper also proposes amendments to the PRA's expectations as set out in its Supervisor Statement SS18/15 on depositor and dormant account protection. This includes a new expectation that insolvency practitioners should carry out identity verification in the event that a firm has failed to do so by the compensation date.

The PRA states that it engaged closely with the FCA on the above issues, due to the FCA's responsibility for consumer protection and its role as the competent authority for the UK's AML regime. The PRA also engaged with the FSCS.

The proposed implementation date for the changes from the consultation paper is 24 March 2021, and any feedback must be submitted to the PRA by 17 February 2021.

16. ESMA issues final report on draft implementing technical standards under the Regulation on cross-border distribution of funds

On 29 January, ESMA issued its final report on draft implementing technical standards (ITS) under the EU Regulation on cross-border distribution of funds (EU) (2019/1156) (CBDF). Under the CBDF, ESMA is required to produce draft ITS concerning standard forms, templates and procedures for:

• publications and notifications that NCAs are required to make in relation to national provisions concerning marketing requirements applicable within their jurisdiction;
• publications and notification that NCAs are required to make in relation to national provisions concerning fees and charges levied by them in relation to activities of AIFMs, EuVECA managers, EuSEF managers and UCITS management companies; and
• information to be provided by NCAs to ESMA for the purpose of developing and maintaining a central database listing UCITS and AIFs marketed cross-border on ESMA’s website.

The report follows a consultation paper issued by ESMA in March 2020, summarising feedback it received from stakeholders and outlining areas where it has changed its initial approach. Key points to note are as follows:

• ESMA has not amended its approach in relation to the format of the publications to be made by NCAs on their websites in respect of marketing requirements for UCITS and AIFs;
• ESMA amended the annex of the ITS outlining the standard form for the publication of national rules governing marketing requirements to set out harmonised categories of rules concerning marketing requirements which have to be published (e.g. the rules on the format and content of marketing material, or the passporting rule); and
• ESMA amended the template for the publication of the information on regulatory fees and charges to require NCAs to disclose detailed information on each category of fee or charge they levy.

The report has been submitted to the EU Commission in order for them to decide whether to adopt the ITS. A decision is expected within the next three months, though the EU Commission may extend this period by one month.

17. HM Treasury publishes call for input on the UK funds regime

On 26 January, HM Treasury published a call for input on the UK funds regime. This follows an announcement by the Government in the 2020 Budget of a government review into the UK funds regime. The call for input sits alongside two workstreams: a consultation on the tax treatment of asset holding companies (and the Government responded to this in December 2020); and a review of the VAT treatment of fund management fees (which the Government intends to take forward in 2021).

The Government believes that the correct fund structures, tax regime and regulatory environment can promote investment into productive investments and green technologies, as well as assist it in meeting ambitious targets.

The call for input outlines the scope and next steps for a wider review and is intended to elicit views on reforms that should be taken forward and prioritised. The Government plans to analyse responses to the call for input and then consult on specific proposals.

Areas covered by the call for input include:

• The UK's approach to fund taxation: the UK's approach to fund regulation; and opportunities for reform;
• Approach to regulation: fund authorisation; speed to market; qualified investor scheme; and operational efficiency; and
• Opportunities for wider reform: enhancing the attractiveness of UK funds regime; spreading the benefits of fund administration across the UK; enhancing existing fund structures; distribution of capital; and new fund structures.

The deadline for responses to the call for input is 20 April 2021.

18. PRA policy statement on updates to SMCR forms

On 22 January 2021, the PRA published a policy statement (PS1/21) setting out final versions of:

1. the Notification Form, reflecting the new FCA address and logo, deleting an incorrect reference to the PRA as a limited company, updating references to the PRA Rulebook and updating the GDPR notification; and
2. the SMCR Form L, reinstating question 3.05, which requests firms making a notification to provide details of any disciplinary action taken.

The updated forms applied from 22 January 2021.

19. Advocate General's opinion on the interpretation of MLD3 with respect to criminal acts

On 14 January 2021, Advocate General (AG) Hogan gave an opinion in Parchetul de pe lângă Tribunalul Braşov v LG, MH, joined parties: Agenţia Naţională de Administrare Fiscală – Direcţia Generală Regională a Finanţelor Publice Braşov (Case C790/19) on whether the same person could commit both an act constituting money laundering and also the offence from which the laundered money derives.

Money laundering, as defined in Article 1(2)(a) and (b) of the Third Money Laundering Directive (2005/60/EC) (MLD3) involved the conversion and transfer of illicitly obtained assets and their concealment and disguise through the financial system. The AG found that these activities clearly constitute an additional criminal act distinguishable from the predicate offence, causing an additional or different type of damage. Therefore, subject to national legislation providing the contrary, the AG concluded that this means a person who commits a predicate offence may also be convicted of money laundering derived from that offence.

20. High Court considers the scope of the Quincecare duty owed to customers by financial institutions

On 18 January 2021, the High Court considered in Philipp v Barclays Bank UK plc [2021] EWHC 10 (Com) the scope of the duty of financial institutions as set out in Barclays Bank v Quincecare Ltd (1992) 4 All ER 363 (the Quincecare duty).

In the case, the claimant, Mrs Philipp, was a customer holding a Barclays Bank account. She sought £700,000 in damages from Barclays Bank UK Plc for losses she suffered as a result of an elaborate authorised push payment (APP) fraud, which led her to instruct and authorise two payments of £400,000 and £300,000 to be transferred from her bank account to two separate unknown bank accounts in the United Arab Emirates. Mrs Philipp had made the transfers after being duped into believing that the monies would be safe, and that she was assisting an investigation by the FCA and the NCA.

Barclays argued that the Quincecare duty did not extend to protecting Mrs Philip against the consequences of her own decisions, where payment instructions were validly given and not fraudulent. The court therefore had to decide: (a) the extent of the protection to which Mrs Philipp was entitled from Barclays, if the bank was acting in accordance with its Quincecare duty; and (b) whether this protection meant having in place anti-APP fraud policies and procedures in place.

Ultimately, the court struck out the claim, holding that the Quincecare duty should be confined to cases where the suspicion of fraud which is raised (or objective ought to be raised) is of attempted misappropriation of the customer's funds by an agent of the customer. Put another way, where the bank's customer is an individual (and not a corporation or unincorporated association such as a partnership), the customer's authority to make the payment must be taken by the bank to be real and genuine. The court found that expecting Barclays to stop or reverse the payment, "where there is concern that a payment may be affected by an APP fraud", would make the duty a free-standing obligation rather than an "integral and ancillary to [the] primary obligation [to act upon the customer's payment obligations]".

21. FCA proposes changes to the strong customer authentication technical standards and its Payment Services and Electronic Money approach

On 27 January 2021, the FCA published a consultation paper proposing changes to the strong customer authentication technical standards (SCA-RTS) as well as its "Payment Services and Electronic Money" Approach document (Approach document) (CP21/3). CP 21/3 follows the FCA's 2020/2021 business plan, in which the FCA identified the payments and e-money sector as a priority for the next 3 years. The FCA is particularly focussed on introducing measures to help consumers transact safely, whilst also removing barriers to innovation and competition. 

The proposals contained in CP 21/3 apply to FCA authorised payment service providers (PSPs) and electronic money institutions (EMIs), Gibraltar firms providing payment services in the UK, as well as those subject to the temporary permission regime (TPR) and the financial services contracts regime (FSCR).

The proposals are far-reaching and include:

(a) numerous amendments to the Approach Document:

• to reflect various Q&As and opinions on strong customer authentication (SCA) published by the EBA and the Commission, and to reflect the FCA's engagement with the industry on dynamic linking. The FCA is also considering the recent European Court of Justice judgment on the DenizBank and the Court's guidance on contactless card payments;
• to reflect the FCA's 9 July 2020 Temporary Guidance on "Coronavirus and safeguarding customers' funds" (FS20/10) to strengthen firms' resilience through additional prudential risk management and safeguarding requirements, thereby making the Temporary Guidance permanent; and
• to reflect the changes set out in the FCA Policy Statement on "General standards and communication rules for the payment services and e-money sectors" (PS19/3) that applied the Principles for Businesses and parts of the Banking Conduct of Business Sourcebook to payment services and the issuance of e-money;

(b) updates to the FCA's Perimeter Guidance Manual (PERG) to include additional guidance for firms relying on the limited network exclusion, and the electronic communications exclusion;

(c) numerous amendments to the SCA-RTS including:

• creating a new exemption from SCA in Article 10A so that customers do not need to reauthenticate every 90 days when accessing account information though an account information service provider;
• mandating the use of dedicated interfaces by account servicing payment service providers (ASPSPs) for certain retail and SME payment accounts;
• changing requirements for publishing interface technical specifications, availability of testing facilities, and fallback mechanisms by account providers;
• exempting ASPSPs with deemed authorisation under TPR from the requirement to set up a fallback interface, where the ASPSP has an exemption from its home state competent authority; and
• increasing the single contactless payments threshold from £45 up to £100 (or potentially a maximum of £120) and the cumulative transaction threshold from £130 to £200.

The due date for responses to questions relating to contactless payments is 24 February 2021, and for all other aspects of the consultation is 30 April 2021. The FCA will subsequently publish finalised technical standards and guidance.

We will publish a detailed analysis of the FCA's proposals in CP 21/3 in the upcoming week.

22. ECB Opinion on the proposal for a Regulation on cross-border payments in the EU

On 25 January, the ECB issued an Opinion (CON/2021/3) in relation to the EU Commission's proposal for a Regulation on cross-border payments in the EU. The proposed Regulation seeks to codify the Regulation on cross-border payments (924/2009) as amended by Regulation (EU) 2019/518.

The ECB's stance is generally positive in relation to the proposals but argues for amendments in relation to the euro foreign exchange reference rates found in the proposed Regulation. The ECB refers to the framework for euro foreign exchange reference rates (ECBRRs). It argues that reference to the ECBRRs in the proposed Regulation could create incentives for some market participants to trade at the ECBRRs. The ECB recommends that the reference to the ECBRRs be removed and replaced by an appropriate reference to a foreign exchange benchmark rate.

No updates included for this fortnight's edition of the FSS.