Monthly Archives: November 2016

LMA responds to Treasury consultation on MLD4

The LMA has responded to HM Treasury’s consultation on the transposition of the Fourth Money Laundering Directive (MLD4) into national law. The LMA has said that there are certain instances where the obligation to disclose the beneficial ownership of legal entities needs to be clarified to avoid disruption to legitimate corporate activities which use beneficial […]

FCA Calls for Input on high-cost credit

FCA has published a Call for Input on high-cost credit, including a review of the high-cost short-term credit price cap. In the last two years, FCA has focused on products it believes pose the highest risks to its customer protection objective. One area of particular focus has been high-cost credit that includes payday loans, home-collected […]

PRA consults further on MiFID 2

PRA has published its second consultation paper on changes it needs to make to its rules as a result of MiFID 2. This paper focuses on the changes needed to take account of the requirements in the MiFID 2 Delegated Regulation on Organisational Requirements, and deals also with the practicalities of variations of permission to […]

Autumn Statement financial services round up

The Chancellor’s Autumn Statement contained several statements relevant to financial institutions and insurers – some announcements of initiatives already planned or even implemented, and some new promises. We will be producing articles on the key proposals. In summary, however, the Chancellor spoke of: a review to identify barriers to access to long-term finance for growing […]

European Commission publishes proposals to complete reform of financial regulatory system

The Commission has put forward a package of proposals including amendments to the Capital Requirements Regulation (CRR) and Directive (CRD), the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism Regulation (SRMR). These amendments aim to complete the reform of the financial regulatory system started following the financial crisis. The goals of the proposals are: […]

CMA publishes draft Order following retail banking market investigation

In August 2016 the CMA published the report on its market investigation into the supply of retail banking services. Following the proposals of that Report, the CMA has published a draft Retail Banking Market Investigation Order 2017 which includes measures that seek to drive the market towards ‘Open Banking’: using technology to provide customers with more control over their […]

FCA updates PRIIPs timetable

FCA has announced it will publish its final rules on disclosure requirements to reflect the PRIIPS Regulation during the first part of 2017, and expect them to take effect from January 2018.

PRA consults on deposit protection increase

PRA is consulting on increasing the deposit protection limit back to £85,000. The limit was decreased from £85,000 to £75,000 in July 2015 because of the Deposit Guarantee Schemes Directive’s requirements on non-euro currencies and would normally be subject to a five year review period. However, limits must be adjusted within that period if there […]

ESMA updates funds FAQs

ESMA has published updates to its FAQs on: the AIFMD: this includes questions on whether creating a new share class of an AIF which is to marketed cross-border with existing share classes, constitutes a material change to the original notification and a confirmation that where an AIFM notifies a material change to a notification it […]

FCA publishes consumer credit financial crime booklet

FCA has published a booklet specially aimed at consumer credit firms to help them understand FCA’s expectations of them under financial crime prevention standards. The guide sets out examples of good and poor practices FCA has observed in consumer credit firms under the MLRs, and gives guidance on how they can reduce their financial crime […]

FCA publishes interim asset management market study

The FCA has today published interim report MS15.2.2 in connection with their Asset Management Market Study. The FCA’s chief objective for the market study was to ensure that the market works well and that the investment products consumers use offer value for money.  The market study was launched in November 2015 in response to a number of concerns […]

ICO revises Privacy Notices code of Practice

The ICO has recently issued a revised Privacy Notices Code of Practice, which we have reviewed in our recent article on the Code for the Privacy and Data Protection Journal.

FinTech bridge to China agreed

Announced as part of the 8th annual UK-China Economic and Financial Dialogue at Lancaster House in London this month, the FCA has signed a Co-operation Agreement with the People’s Bank of China in a bid to share information on promoting innovation in financial services. This is the fourth co-operation agreement signed with AsiaPac countries this […]

ICO fines FS institution for breach of PECR

On 3 November, the ICO imposed a monetary penalty of £70,000 on Nouveau Finance Limited for marketing activities carried out on Nouveau’s behalf by a third party in contravention of the Privacy and Electronic Communications Regulations. Nouveau used a third party to send out 2.2 million unsolicited marketing texts to generate leads. This resulted in […]

Government launches FinTech one stop shop

Treasury has announced the launch of the Department for International Trade’s new FinTech “one stop shop”The service is part of the FinTech bridge program the UK has in place with Singapore, Korea and China. The service will give advice and provide support to UK FinTechs wishing to cross the bridge, and the aim is to […]

FPC to acquire powers to address systemic risks in the BTL mortgage market

The Financial Policy Committee of the Bank of England is to be given powers to address lending practices in the buy-to-let mortgage sector from early 2017. This move follows the FPC’s acquisition of such powers in relation to the residential market in April 2015, and a consultation earlier this year on the FPC being granted similar powers […]

PRA consults on cyber insurance underwriting risk

PRA is consulting on a proposed new supervisory statement that sets out how it expects all Solvency 2 firms to prudently manage cyber underwriting risk. PRA carried out thematic work which highlighted a number of risks the insurance industry faces from underwriting insurance contracts that are exposed to losses resulting from a cyber attack. Its […]

BBA publishes Brexit information sheets

BBA has published a series of “quick briefs” on Brexit. It says the papers should help explain the major issues Brexit presents for banks and customers. The briefs cover: Staying in or leaving the single market An orderly exit from the EU Passporting and Equivalence

ESMA’s MiFID 2 product governance guidelines

Andrew Barber and Emma Radmore gave an interview to Lexis PSL on ESMA’s draft product governance guidelines for manufacturers and distributors of products covered by MiFID 2. We have now published the contents of this interview.

BBA announces update to Access to Banking Protocol

The BBA has said that it will update the Access to Banking Protocol in response to an independent review into the effectiveness of the Protocol one year after implementation. The Protocol was put in place in May 2015 to manage the way signatory banks’ branch closures were effected. The review by Professor Russel Griggs OBE acknowledged that the […]

FCA holds financial crime conference

FCA held its annual financial crime conference on 10 November. Among the key points noted by FCA speakers were: Andrew Bailey, in his opening address, highlighting FCA’s “Mission”, and commenting that reliance on prescriptive regulation is not best suited to the evolving risks of financial crime. He also acknowledged the challenges firms face in complying […]

Commission to delay PRIIPs

The European Commission has proposed to delay the implementation date of the PRIIPs Regulation by one year to 1 January 2018. The proposal follows the European Parliament’s rejection of the RTS to be made under the Regulation. The Commission said it thinks the Regulation is clear enough by itself but has agreed it would be […]

FCA summarises financial services under WTO

Andrew Bailey has written to the Treasury Committee outlining what the regulatory landscape for financial services would be if the UK were a “third country” in respect of the remaining EU27, with access rules essentially governed by WTO protocols. The letter considers: the “most favoured nation” and “national treatment” principles embodied in the General Agreement […]

FCA updates on sandbox use

FCA has published a list of firms who it allowed to begin testing new products in its regulatory sandbox. It received 69 applications in its first wave, of which it accepted 24. Successful applicants range from the largest banks to early-stage start up firms. The products being tested include e-money and payment services, a semi-automated […]

BCOBS rule changes to take effect

2 amendments to BCOBS will take effect on 1 December. Under the changes: Non-ring fenced bodies will have to provide information to individuals on the key risks to which a non-ring fenced body may be exposed which distinguish it from a ring-fenced body and of any excluded activities or prohibited actions for the purposes of […]

FCA and Treasury respond to CMA retail banking market report

In August 2016, the CMA published its final report following its investigation into the competitiveness of retail banking market (Report), which focused on  personal current account and SME customers.  The Report found that there were elements of the market that were having an adverse effect on the promotion of competition, and proposed a package of […]

Compliance Register Financial Crime Summit 2016

As ever, 2016 has brought several significant developments in financial crime prevention. Emma Radmore will be speaking at the Compliance Register’s Financial Crime Summit on 21 November, where she will give an overview of upcoming changes of which all firms should be aware. You can register using this form.

PRA and FCA make regulatory references rules

PRA and FCA have published the final text of the rules applicable to banks, Solvency 2 insurers and PRA-regulated investment firms when they provide regulatory references for key positions. The rules will apply from 7 March 2017. See our article explaining the impact of the changes.

PRA responds on MiFID 2

PRA has published its response to its consultation on implementing MiFID 2 into its Rulebook. It has made some clarificatory changes to its proposals for its rules on Algorithmic Trading and has now published its final form rulebook instruments on both this and Passporting under MiFID 2 for PRA-regulated firms.

FCA sets out its mission

FCA has started a discussion on its “future mission”. It sets out how it thinks it should prioritise its energies and resources in terms of ensuring the smooth functioning of markets, protection of consumers, market design and its approach to its objectives, supervision and enforcement. It asks for comments by 26 January 2017.

FCA consults on guarantor loans guidance

FCA is consulting on proposed guidance on guarantor loans. It had previously consulted in February, but its proposals were not popular. It now addresses what it considered is, respectively, enforcing and not enforcing guarantees under the CCA. In particular, it considers that where a CPA or direct debit is exercised without prior notification, this is […]

Tribunal upholds ban

The upper Tribunal has delivered its findings in relation to FCA’s decision to ban Tariq Carimjee from the CF10 and CF11 functions after it found he recklessly assisted a client to manipulate stock prices. Mr Carimjee had disputed FCA’s original findings, that he had breached APER Principle 1, and the Tribunal at first instance agreed, […]

FCA reviews PBAs

FCA has published the results of its thematic review into how packaged bank accounts (PBAs) are working since it introduced new rules in 2013. FCA introduced the rules to help customers understand how packaging worked, and to enable them to assess whether a PBA was right for them, following findings that firms were not checking […]

FCA consults on mortgage arrears calculation guidance

FCA is consulting on remedies for customers who have gone into arrears on their mortgages, and have been disadvantaged because of the way lenders have calculated their balances. Some firms have automatically included customers’ arrears balances within their monthly mortgage payments, which FCA considers to be “automatic capitalisation”. While capitalisation can be permissible in certain […]

UK confirms adoption of the GDPR

The UK Government has confirmed that the UK will adopt the GDPR . Secretary of State Karen Bradley MP stated: ‘We will be members of the EU in 2018 and therefore it would be expected and quite normal for us to opt into the GDPR and then look later at how best we might be […]

BBA publishes BCA standardisation proposal

CMA has updated its webpage on the retail banking and business current account (BCA) investigation. One of the new papers covers BBA’s proposals to standardise BCA opening procedures. The proposal covers the core set of standard information and evidence requirements to open a BCA (the Standard Information Set); the categories of SMEs which the Standard […]

ECB publishes MLD4 opinion

The Council of the EU has published the Opinion of the ECB on the proposed changes to MLD4. In principle, it says it is important that the EU regulates virtual currencies from an AML/CTF point of view, but it does not understand some of the distinctions the proposal makes between various ways of dealing with […]