Monthly Archives: July 2017

FCA to consider whether there is a place for unarranged overdrafts in the modern banking market

In a Feedback Statement published today, the FCA stated that: they have significant concerns about how unarranged overdrafts operate. Charges are high, complex and potentially harmful. Based on the evidence they have to date, they believe there is a case to consider fundamental reform of unarranged overdrafts and consider whether they should have a place in any modern […]

ESAs advise the Commission on PRIIPs with environmental or social objectives

The European Supervisory Authorities (ESAs) have submitted their technical advice to the European Commission (the Commission) to set minimum requirements, which manufacturers of PRIIPs with environmental or social (EOS PRIIPs) objectives should comply with to ensure their products meet the retail investors’ needs. The ESAs addressed  four areas: (i) specific environmental or social objectives, (ii) disclosure of specific investment […]

Payments strategy forum releases its consultation on the blueprint for the future of UK payments

The Forum has published its Blueprint for the Future of UK Payments for public consultation until 22nd September 2017. The Consultation is an opportunity for everyone to have their say on the detailed design for the New Payments Architecture (NPA) and the future of payments in the UK. The Forum is hosting a Consultation Briefing Session […]

PRA releases consultation on the minimum requirement for own funds and eligible liabilities (MREL) – buffers – CP15/17

The PRA has today published a CP on its proposed expectations regarding the relationship between MREL and buffer requirements, including the consequences of not meeting these. The CP is relevant to all PRA regulated banks, building societies and PRA designated investment firms. The consultation, which can be found here closes on 29 September 2017.

FCA foresees the demise of LIBOR in favour of SONIA

Andrew Bailey’s speech today on the future of LIBOR discussed the recent developments that had been made and interestingly, the decision to move away from the benchmark and towards one that is based on factors such as the price of term funding. The FCA has had conversations with market participants, which led it to examine  alternative benchmarks and make […]

EIOPA creates webpage on product intervention powers under PRIIPs regulation

The webpage is available here. Product intervention powers will come into force as of 1 January 2018.  

EBA publishes final guidelines on major incident reporting under PSD2

The Guidelines set out: the criteria, thresholds and methodology to be used by payment service providers in order to determine whether an operational or security incident should be considered major and, therefore, be notified to the competent authority in the home Member State the template that payment service providers are required to use for this […]

ECB sets out its approach to implementing the FX global code

The European Central Bank (ECB) published a press release setting out its approach to implementing the FX global code. The FX Global Code is a set of global principles of good practice in foreign exchange markets, developed by central banks and market participants from 16 jurisdictions around the globe in order to promote a robust, […]

Alex Brazier, Executive Director of BoE delivers a speech entitled: ‘Debt Strikes Back’ or ‘The Return of the Regulator’?

Alex Brazier, Executive Director (Financial Stability) at BoE has delivered a speech in which he considers the recent developments in household debt, how that debt can pose dangers to the wider economy, and the three lines of defence put in place by regulators to guard against those dangers. Mr Brazier observed that in the past […]

FCA publishes consultation paper on current account services

FCA has published a Consultation Paper (CP) on the information provided to customers about current account services. The CP was prompted by CMA’s recommendation that firms should publish objective measures of service performance for both personal current accounts (PCAs) and business current accounts (BCAs) to allow customers to effectively compare products on the market. The […]

BOE releases consultation on extension of SM&CR to insurers

Today the PRA has published proposals to extend the Senior Managers and Certification Regime (SM&CR) to insurers. These proposals seek to implement a consistent but proportionate regulatory framework to strengthening individual accountability and promoting effective corporate governance for all PRA-regulated firms. In March 2016 the PRA implemented the Senior Insurance Managers Regime. The proposals would […]

FCA releases details of consultations on the extension of SM&CR to all firms

The long-awaited consultations on the extension of the SM&CR have been released: CP17/25 – Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms. Banks are told to read Chapters 9 and 10 in the CP about the extra SM&CR regulations that will affect the banking sector. CP17/26 – Individual accountability – extending […]

FCA reminds firms that recommended MiFID II authorisation and VOP application date has passed

In an announcement today, the FCA is reminding firms that need to submit applications, do so without further delay. FCA will determine complete applications received after 3 July 2017 within 6 months, but cannot guarantee to do so by 3 January 2018 (the date for required compliance with MiFID II). Such firms will therefore also need to have […]

FCA publishes new rules – CASS 7A & the special administration Regime Review Policy Statement (PS17/18)

In the FCA’s consultation paper CP17/2: CASS 7A & the Special Administration Regime Review (SAR), it proposed changes to CASS in relation to an investment firm failure and its interaction with the SAR. Collectively, these proposals aim to speed up the distribution of client assets, improve consumer outcomes and reduce the market impact of an investment firm failure […]

House of Lords calls for evidence on financial regulation and supervision following Brexit

The House of Lords EU Financial Affairs Sub-Committee (the Committee) is calling for evidence to support its inquiry into the future of UK financial regulation and supervision following Brexit. The Committee will examine how financial regulation and supervision will evolve following Brexit in order to ensure financial stability, which could mean maintaining equivalence or some […]

FCA publishes consultation on Office for Professional Body Anti-Money Laundering Supervision

FCA has published a consultation on the proposed text for a specialist sourcebook setting out the new Office for Professional Body Anti- Money Laundering Supervision’s (OPBAS) expectations in relation to anti-money laundering supervision. OPBAS will oversee 22 professional body anti money laundering supervisors such as the Law Society / Solicitors Regulation Authority and the Association […]

FCA publishes second Consultation Paper on IDD implementation

Following on from Consultation Paper (CP) 17/7, FCA has published CP 17/23 detailing further proposals on the implementation of the IDD in the UK. The CP is relevant to firms, including insurance and reinsurance companies, insurance intermediaries and firms categorised under the IDD as ancillary insurance intermediaries, as well as other stakeholders. In order to […]

HM Treasury publishes final ILS Regulations

Following two consultations in 2016, HM Treasury has published the final rules for a new tax and regulatory framework for insurance linked securities (ILS) business in the UK. The Risk Transformation Regulations 2017 will come into force on 31 October 2017 and the Risk Transformation (Tax) Regulations 2017 will come into force on the day after the […]

EC publishes draft Delegated Regulation on insurance-based investement product requirements under IDD

EC has published for consultation a draft Delegated Regulation supplementing the IDD  concerning information requirements and conduct of business rules applicable to the  distribution of insurance-based investment products. The IDD contains a specific chapter, with additional conduct of business requirements, on the sale of insurance-based investment products. The Delegated Regulation, which is based on previous technical advice […]

Law Commission consults on draft clauses for the Goods Mortgages Bill

This month, the Law Commission published a consultation paper on draft clauses that would form part of the new Goods Mortgages Bill, which replaces the Bills of Sale. Background In September 2014, HM Treasury asked the Law Commission (LC) to review the Bills of Sales Act.  The LC’s 2016 report recommended that the Bills of […]

FCA makes new rules

At FCA’s July Board meeting it made several new rulebook instruments. Key changes are: to make minor changes to approved persons application forms with effect from 12 September; to set the fees payable to the PSR from 21 July; to amend COBS in respect of pension projections from 24 July so firms can prepare risk […]

UK Finance and AFME publish guidance on the use of league tables

League tables are used to illustrate the ranking of investment banks and financial advisors in different activities. League tables can be aggregated to encompass all investment banking activities, or split according to the needs of the analysis being made (e.g. by equity capital markets, debt capital markets, mergers and acquisitions etc.). League tables are often […]

ESMA publishes opinion on asset segregation and depositary delegation

On 20 July ESMA published its opinion on asset segregation and the application of depositary delegation rules to central securities depositaries (CSDs). In the opinion, ESMA outlines its view on: the optimal approach to asset segregation under the AIFMD and the UCITS Directive frameworks; and how the depositary delegation rules should apply to CSDs. ESMA believes […]

ICO fines Moneysupermarket.com £80,000

ICO has fined Moneysupermarket.com Ltd £80,000 for sending 7.1 million unsolicited direct marketing emails over a period of ten days to update its customers on its Terms and Conditions. Crucially all the recipients of the emails had previously opted out of direct marketing, and Moneysupermarket sent the T&Cs by email which included a section noting the […]

FCA Regulation Round-Up for July

The FCA published its July edition of Regulation Round-Up this week.  Highlights of some of the “hot topics” covered include: interim report of the FCA’s Retirement Outcomes Review; the publication of the final report on its asset management market study; the publication of the MiFID II policy statement and consultation paper VI; first undertaking received under […]

UK Finance publishes updated Access to Banking Standards

UK Finance (the new industry association including, among others, the BBA) has updated its Access to Banking Standards in relation to bank branch closures. It is hoped that these changes will help banks provide customers with clear, understandable, accessible documentation and information about that specific closure and how they can continue to bank after the branch has closed […]

Treasury confirms new AML super-supervisor

Treasury has confirmed how the new Office for Professional Body Anti-Money Laundering Supervision (OPBAS) will work to help supervisors and law enforcement work together more effectively to tackle money laundering. OPBAS will work to set the standards the 25 AML supervisors under the 2017 MLRs must meet. Treasury has published draft new regulations with a […]

FCA publishes Memorandum of Understanding with Hong Kong SFC

FCA has published a supervisory memorandum of understanding (MoU) with the Hong Kong Securities and Futures Commission. The MoU is an agreement between the Regulators to collaborate on some of their mutual supervisory and oversight functions. In particular, the MoU outlines: The scope of supervisory cooperation; Cross-border on-site visits; Execution of requests for assistance; Permissible uses of information; and […]

CMA publishes decision on payment systems merger

CMA has published the full text of its decision on whether the anticipated merger of Bacs Limited, FPS Limited, and C&CC Limited would result in a substantial lessening of competition and would therefore be referred under section 33(1) of the Enterprise Act 2002. CMA has concluded that the Merger does not raise competition concerns as there […]

FCA finds funds should consider external risks

FCA’s review of fund suspensions and pricing adjustments following the Brexit vote has indicated that property funds should plan better to take external events into account so they can deal with liquidity risks.  It found that some daily-dealt property funds suspended dealing or applied pricing adjustments in the immediate aftermath of the vote because they […]

PRA updates rules

PRA has published feedback on its Occasional Consultation Paper 2/17 and its consultation on regulatory reporting, together with finalised rules and policy statements. The new rules cover: minor amendments to the rules on the SMR, remuneration and ringfencing, with updated forms and templates for reporting, new guidance on regulatory reports and an updated supervisory statement […]

Complaints Commissioner publishes report on FCA complaints

The Complaints Commissioner has published its annual report looking at complaints against FCA. It was disappointed that it had had to repeat some previous recommendations, particularly on the time FCA takes to action complaints. Other criticisms included FCA’s perceived tendency to take a defensive attitude and to act slowly to remedy acknowledged wrongs.

Lloyd’s publishes report on how it would respond to a market turning event

Following an industry “dry run” exercise in November 2016, Lloyd’s has published a report setting out six principles on how it would respond to a market turning event, which causes significant impact and could cause a rapid upturn in insurance pricing. The principles are as follows: Principle 1: Market stability and payment of claims Principle […]

BoE publishes revised Settlement Account Policy

BoE has published a revised Settlement Account Policy to include non-bank PSPs in its real-time gross settlement (RTGS) system. It wants these changes to allow non-bank PSPs to compete on a more level playing field with banks as it will reduce the dependence on them for access to payment systems. This policy change is designed to […]

Government to outlaw payment surcharging

The Government’s approach is set out in their response to its consultation on the implementation of PSD2. Taking into account the range of views received through the consultation, the Government has decided to extend the surcharging ban to all retail payment instruments. This will create a level playing field between payment instruments and create a […]

HMT responds to its PSD2 consultation – Third Party Access

On 9 February 2017, the government published a consultation document, ‘Implementation of the revised EU Payment Services Directive II’, as well as draft legislation. The consultation invited responses on the government’s proposed approach to transposing PSD2 into UK law. The government received over 85 formal responses to the consultation. This response document summarises the content of these […]

FCA announces RTGS extension

FCA has announced that BoE is extending access to settlement accounts in its real-time gross settlement (RTGS) system to non-bank payment service providers (NBPSPs). This will enable NBPSPs to have direct access to the UK’s sterling payment systems. In the first instance an NBPSP applying for RTGS access will have their application reviewed by the […]

FCA launches Market data processor (MDP) entity portal webpage

FCA uses the webpage to explain the purpose of the MDP. MiFID II involves large changes in the volumes and range of data that certain entities need to submit to the FCA. As a result, the FCA has developed a new MDP system to help to manage this. The MDP entity portal is a web application […]

FCA publishes thematic review on customer understanding of retailing banking products

On 17 July FCA published a thematic review on customers’ understanding of retail banking products. The review was undertaken amid growing concerns that some customers fail to understand the key features of many financial products and that this may expose them to harm. The review covered 18 firms, and involved FCA looking at the firms’ data […]

Financial Guidance and Claims Bill reaches Committee stage

The Financial Guidance and Claims Bill has reached the Committee stage in the House of Lords in the parliamentary process.  The Bill started in the Lords so, after it has finished the Lords stages, it will need to go to Parliament.

ICO fines loan firm for nuisance texts

The Information Commissioner’s Office has fined Provident Personal Credit Ltd £80,000 for sending nearly 1 million unsolicited texts promoting personal loans. The company used third party affiliates to send the communications, to which the recipients had not consented.

FCA publishes Investment Platforms Market Study ToR

FCA has published MS17/1.1 as part of its assessment into the potential competition issues outlined in the Asset Management Market Study interim report and in its 2016/17 Retail Investment Sector View. FCA was concerned that because platforms are a significant and growing distribution channel, especially in the direct-to-consumer area, they are vulnerable to manipulation and it is […]

FCA publishes MiFID 2 passporting forms

FCA has published a new page on its website outlining how a firm can apply for a passport under MiFID 2. It also includes details of deadlines and links to the relevant application forms. Firms need to use these forms if they are newly authorised under MiFID 2 or where they relate to activities implemented as MiFID 2 […]

EBA publishes credit institution application standards

EBA has published its final draft RTS on information applications to be credit institutions should provide to competent authorities, and the templates they should use to provide it.

FCA fines compliance oversight officer

FCA has fined a compliance oversight officer for failure to exercise due skill, care and diligence while working at two firms specialising in pension transfers (one of which was transferred to the other). It fined David Watters £75,000 for failing to ensure the process in place at both firms for giving advice on enhanced transfer value […]

Up next from FCA

FCA’s latest policy development update includes: second consultation on the IDD due in July, with a policy statement on the first consultation due in September; consultation on current account services in July and no date yet for the promised consultation on a review of the crowdfunding rules

FMLC looks at Brexit third country issues

The Financial Markets Law Committee has published its views on the legal uncertainties related to the future classification of the UK as a third country in respect of the EU. The purpose of the paper is not to make recommendations, but to highlight legal issues. The paper focuses on: activities for which there is no […]

Banking Standards Board consults on certification risks and issues

The Banking Standards Board is consulting on guidance that will help firms identify and deal with risks and issues that arise when they are assessing fitness and propriety under the SMCR. The draft guidance covers: factors for firms to take into account when evaluating the evidence they use to assess fitness and propriety what options […]

Council suggests high-risk jurisdiction methodology

In an attempt to solve the current problems around the Commission’s proposals for a list of high-risk jurisdictions for the purposes of MLD4, the Council is now proposing a methodology  the Commission should use when proposing the list. The proposal is for a staged approach over the next few years, so does not solve the immediate […]

Failure to prevent tax evasion offences taking effect in September.

The first commencement order under the Criminal Finances Act 2017 has been made. It brings the corporate offences of failure to prevent facilitation of tax evasion into force on 30 September. The provision enabling guidance on the offence to be made is in effect from 17 July (but the guidance still needs to be made […]

PRA issues consultation paper on Pillar 2 Liquidity

PRA has published Consultation Paper CP13/17 on Pillar 2 liquidity which includes the following proposals: for a cash flow mismatch risk (CFMR)  and other PRA methodologies for assessing firms’ liquidity risk; A new liquidity reporting template which is based on the EBA ML reporting template; and Updating PRA’s Supervisory Statement (SS) 24/15 and SS34/15 draft reporting […]

FSCS annual report and accounts 2016/17: compensation costs total £375m

FSCS has published its annual report and accounts and annual report and class statements 2016/17, which set out its vision and strategy. The publications detail that FSCS paid out for over 37,000 claims 2016/17 in the sum of £375m. The £375m included: £52m for policyholders affected by the failures of Enterprise Insurance Company PLC and […]

FCA consults on proposal to create new premium listing category for sovereign controlled companies

The FCA is consulting on a targeted proposal to make the listing regime work better for companies controlled by a shareholder that is a sovereign country. This consultation paper  (CP17/21) will be of interest to: companies listed in and considering listing in the UK firms advising listed companies, sponsors, institutions offering depositary services and their advisers firms […]

Brexit: European Union (Withdrawal) Bill presented to Parliament

The Government presented the European Union (Withdrawal) Bill to Parliament on 13 July for its first reading. The Bill seeks to repeal the European Communities Act 1972 on the day when the UK leaves the European Union (EU).  It also includes provisions for: EU legislation to continue to have effect in domestic law, on and after the […]

FCA consultation on PSD2 authorisation and reporting forms

The FCA has issued a second consultation paper on the implementation of PSD2. This follows one previous consultation paper issued in April 2017, which proposed a general approach to the changes incurred by PSD2. The scope of the current consultation includes new authorisation and registration forms to be used by payment and e-money institutions, as well […]

ESMA publishes sectoral convergence opinions

ESMA has published, as promised, its set of sector-specific opinions on relocations from the UK to the EU27 following Brexit. The opinions cover investment firms, investment management and secondary markets. In each case, it looks at the risks to supervision and of regulatory arbitrage in firms seeking to relocate and then outsourcing activities back to the UK as […]

ESMA consults on MiFID 2 suitability requirements

ESMA is consulting on guidelines on certain aspects of the MiFID 2 suitability requirements. ESMA wants to build on existing guidelines to: take account of technological innovations including the move to robo-advice; consider the experiences of regulators on the current requirements; and cater for studies on behavioural finance that have been undertaken. It asks for […]

FCA publishes notice of undertaking by London General Insurance Company

London General Insurance Company Limited (LGI) has given an undertaking in respect of a term in respect of a Nationwide FlexPlus Account Extended Warranty Protection Policy. The policy set out a list of items that were covered under the policy. This list was preceded by the words ‘Items such as’, which in FCA’s view meant that […]

PRA publishes new consultation on pillar 2a capital requirements and disclosure

On Wednesday 12 July the PRA published CP12/17 ‘Pillar 2A capital requirements and disclosure, that sets out proposed adjustments to the PRA’s Pillar 2A capital framework. It is relevant to all banks, building societies and PRA-designated investment firms. The purpose of these proposals is to bring greater clarity, consistency and transparency to the PRA’s capital setting approach. In promoting […]

LSB publishes ”2020 Vision” Business Plan

The Lending Standards Board has published its Business Plan for 2017/20 which outlines its aims and objectives for the next three years. LSB says it will achieve its goals by focusing on the following activities: Developing the Standards which were launched in March 2017 (July 2016 for business customers) by working alongside firms and the wider […]

FCA publishes retirement income report

FCA has published the interim report on its retirement outcomes review, in which it looks at how the retirement income market has evolved since introduction of the pension freedoms. FCA’s findings to date have included evidence that consumers welcome the new freedoms – for example, it is now the norm to access pots early, with […]

ESMA publishes guidelines on cooperation between authorities under the Central Securities Depositories Regulation

ESMA has today published guidelines (the Guidelines) to ensure that competent authorities (CAs) apply the Central Securities Depositories Regulation (CSDR) in a consistent, efficient and effective supervisory manner, which includes cooperating with each other. Under Article 14(1) of the CSDR, CAs and ESMA are expected to cooperate closely, including exchanging all relevant information applicable under the regulation.  […]

eba publishes final report on PSD2 Guidelines for authorisation and registration

The EBA has published  its Final Report on the EBA Guidelines under Directive (EU) 2015/2366 (PSD2) on the information to be provided for the authorisation of payment institutions and e-money institutions and for the registration of account information service providers.

EACB, ESBG and EBF (the ‘Group’) make joint request to European parliament on the issue of third party interaction under psd2 and the need to reject ‘screen-scraping’

In a press release released today, the Group raised the issue: “how to organise efficient and future proof bank – third party (TPP) interaction under PSD2“. The Group made it clear that “imposing an upgraded screen scraping is contradicting all of these objectives and should be rejected to the benefit of consumer protection, innovation and […]

EIOPA publishes opinion on supervisory convergence in light of Brexit

EIOPA has provided an Opinion addressed to national supervisory authorities on supervisory convergence in light of the UK’s withdrawal from the EU. EIOPA acknowledges that insurers may be seeking to relocate to or set up a new business in the EU in order to maintain access to the EU single market after Brexit. EIOPA comments […]

BOE releases details of RTGS payments proof of concept

In a press release, the BOE announced the successful use of Ripple’s Interledger Protocol to make two simulated Real Time Gross Settlement (RTGS) payments. Key findings: that the Interledger Protocol was able to support synchronisation of payments between two simulated RTGS ledgers;  that the ILP Validator created a single source of truth between the two ledgers, […]

Council agrees Commission suggestions on CMU

The Council of the EU has renewed its support for the CMU action plan, and agreed with many of the priority initiatives the Commission has put forward.  It will focus on sustainable finance and financial technology.

ESMA updates funds FAQs

ESMA has updated its FAQs in relation to UCITS and the AIFMD. The additions relate to: on the AIFMD, reporting requirements for loans purchased on the secondary market, conversion of total value of AUM and currency of the net asset value and on UCITS, issuer concentration and group links, independence and cooling off periods.

Commission consults on non-performing loan market

The European Commission is consulting on a secondary market for non-performing loans. It seeks views on how to improve the market and specifically on loan servicing activities by third parties, and the transfer of loans away from the originating bank. It asks for feedback by 20 October.

FATF Presidency updates on priorities

FATF has taken the opportunity of a new president (from Argentina), to update on its objectives. Key objectives will include: deepening knowledge and understanding of terrorist methodology and encouraging information sharing; promoting financial inclusion, including looking closely at de-risking and de-marketing; enhancing transparency and integrity of financial flows, with particular focus on beneficial ownership information; […]

ESMA writes to Commission on third-country regimes

ESMA has written to the European Commission setting out how existing third-country regimes could be improved.  While not ostensibly about Brexit, the letter refers to the increased number of market infrastructures and corresponding activity that will be outside the EU post-Brexit that will be critical for EU markets. It thinks that enhancing the implementation and […]

FCA publishes ESMA statement on transitional provisions for the EU Benchmark Regulation

FCA has updated its webpage to include a set of questions and answers published by ESMA on the transitional provisions for the EU Benchmark Regulation (BMR). FCA says this is an important clarification for the industry and will inform decisions on when a firm should apply for authorisation or registration during the period January 2018 to […]

Sam Woods speaks on importance of supervision

Sam Woods has given a speech at the Building Society Association Annual Conference on why supervision matters. The speech was given in May, but has just been published. Among the key points covered were: Supervision is distinct from regulation. Regulation concerns the framework of rules and legal standards which govern the way firms operate, whereas supervision […]

ESMA updates Q&As on MiFID II and MiFIR investor protection and intermediaries topics

ESMA has today updated its Q&A topics on best execution and recording of telephone conversations and electronic communications. Best execution MiFID II requires investment firms to take all sufficient steps to obtain the best possible result for the client when executing orders.    It also requires trading venues to publish, without charge,  data on the quality of the […]

BCBS and IOSCO publish a consultation paper on STC short-term securitisations

The Basel Committee (BCBS) and IOSCO have published for consultation the criteria for identifying simple transparent and comparable (STC) short-term securitisations. The proposed criteria follow on from the STC models published in July 2015 for term securitisations. While all principles underlying the STC criteria for term securitisations are relevant for short-term securitisations, some criteria have been amended […]

FCA updates its webpage to reflect application of Benchmarks Regulation

FCA is consulting on proposed changes to its Handbook to accompany the application of the EU Benchmarks Regulation (BMR) from 1 January 2018. FCA is proposing to amend and remove some Handbook rules to ensure they are compatible with the BMR while making some domestic rules for benchmarks not covered by the BMR. It has updated […]

Examining product governance guidelines under MiFID II

The product governance guidelines under MiFID II are part of the regulatory framework aimed at protecting investors across the EEA.  ESMA published its final report on the guidelines on 2 June 2017. Bond Dickinson has produced a briefing note that looks at: the purpose of the guidelines, how the guidelines differ from ESMA’s consultation, the […]

Highlights of IAIS 10th annual global seminar

Following its annual global seminar, the International Association of Insurance Supervisors (IAIS) has published a press release which contains details of the seminar and highlights: The IAIS provided a high-level summary of comments received during the recent public consultation on certain ComFrame-related material and announced plans for a public consultation of ComFrame in its entirety, […]

BoE responds to risks in life and general insurance sectors

David Rule, Executive Director of Insurance Supervision at BoE delivered a speech on 6 July at the Association of British Insurers (ABI) with a focus on risks and BoE’s supervisory priorities in the life and general insurance sectors. BoE is concerned with risk concentrations and the impact of the current market conditions. For example, in […]

MiFID 2 implementation update

We have written an article on the current state of play of MiFID 2 implementation in the UK, including a detailed summary of FCA’s final rules.

ISSA publishes financial crime compliance questionnaire

ISAA has published a financial crime compliance questionnaire to accompany its revised financial crime compliance principles it recently published.

ESMA updates MiFID 2 FAQ

ESMA has updated its set of FAQs under MiFID 2 to include new guidance on: commodity derivatives position limits and position reporting market data issues and market structure issues on multilateral trading systems, algorithmic trading and DEA, and access to CCPs and trading venues

EBA publishes final PSD2 PII guidelines

EBA has published the final guidelines under PSD2 on how to stipulate the minimum amount of PII cover or a comparable guarantee that undertakings intending to carry out payment initiation services or account information services should hold. EBA has made some changes from the consultative version of the guidelines. The guidelines cover: the risk profile […]

The conundrum of open-ended property funds

Property Funds can be either closed ended or open ended. In a closed ended fund (such as a Real Estate Investment Trust or “REIT”), the amount of equity invested is fixed and investors may gain liquidity by selling their shares in the market. In an open ended fund, units or shares are created and cancelled […]

IOSCO consults on fund liquidity risk management

IOSCO is consulting on recommendations and good practices in liquidity risk management for funds, and has accompanied the consultation with examples of good and bad practices. The consultation builds on a report in 2013 and addresses structural vulnerabilities the FSB has identified. The papers covers: investor disclosure alignment between asset portfolio and redemption terms availability […]

EBA calls for evidence from investment firms

EBA has started a supplementary data collection exercise aimed at supporting a response to the European Commission’s call for evidence to help it shape the new prudential framework for investment firms. EBA launched its initial exercise in late 2016 and has made several improvements to its initial proposals. But now it needs more evidence, and […]

FCA publishes PBA complaints findings

FCA has published the findings of its review into how firms handle complaints about packaged bank accounts following its thematic review of October 2016. As it carried out the review, it looked particularly at recent complaints, made between March and May 2016, as it recognised improvements firms have been making to complaints handling. The findings did […]

BoE publishes its Annual Report and Accounts for 2016/2017

BoE’s has published its Annual Report and Accounts  for 2016/2017 which sets out its main achievements for the year, including: Its One Bank strategy which aims to create a single, unified, institution across all its functions, with a single mission to ‘promote the good of the people of the United Kingdom by maintaining monetary and […]

PRA publishes its Annual Report and Accounts for 2017/2017

PRA’s Annual Report and Accounts for 2016/2017 outlines how it  delivered this year’s business aims, including: Continuing to develop and implement the forward‑looking, judgement‑based supervisory regime; Supporting the Bank in delivering its financial stability and monetary policy objectives; Implementing changes to domestic, European and international regulation; Continuing to devise and influence the domestic and international […]

FCA publishes unredacted BOS notice

FCA has published the unredacted version of its final notice against the Bank of Scotland plc originally published in March 2012. The notice related to failure to comply with Principle 3, and confirmed FCA’s decision not to impose a financial penalty because of the exceptional financial circumstances of the bank at that time. The failings […]

FSB updates on compensation standards implementation

FSB has published a progress report on implementation of its compensation standards. The standards were published in 2009 in the immediate aftermath of the financial crisis. Now, almost all member jurisdictions have substantively implemented the principles and standards for banks. The key jurisdiction that has not fully implemented is South Africa. IOSCO has produced a […]

FSB updates on misconduct risk management

The Financial Stability Board has published a progress report for the G20 on its work plan to reduce misconduct in the financial sector. The plan includes: measures to strengthen governance frameworks – FSB is working on how compensation tools can be used to address misconduct actions to help authorities address misconduct risk – IOSCO published […]

FSB publishes report on action plan to address decline in correspondent banking

By way of update to the G20 leaders, the FSB published a report on its action plan to assess and address the decline in correspondent banking (CB). In November 2015, the FSB published a four point action plan to assess and address the decline in CB.  The four areas of focus were to: examine the dimensions and implication of […]

PSR publishes annual report

The PSR’s annual report, its third, highlights how the past year has enabled it to focus on its initial foundations, and address issues so increasing numbers of new organisations are joining payment systems. It notes the infrastructure market review and PSR’s work to make access to current payment systems easier. PSR also highlights the falling […]

FCA publishes annual report

FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s highlights as: its asset management market study its PPI work, leading up to proposals for a time limit on claims MIFID 2 and MAR implementation […]

Commission publishes PRIIPs KID guidelines

The Commission has published draft guidelines on the PRIIPs KID. The guidelines aim to promote consistency by smoothing out areas of potential divergences in interpretation. Questions the guidelines address (although not in much detail), are on the derogation for the need for a single KIDfor a multi-option product, the scope of the Regulation and territorial […]

Commission seeks views on cross-border payments

The European Commission is seeking views on the impact of extending the cross-border payments Regulation to cover all non-euro currencies in the EU. The period for comments is 4 weeks

Treasury publishes financial guidance responses

Treasury has published the responses it received to its consultation on creating a single financial guidance body. The new body has now been legislated for under the Financial Guidance and Claims Bill and will: be a non-departmental body sponsored by DWP to replace the MAS, TPAS and Pension Wide provide money guidance, and pensions guidance […]

ESMA publishes updated ancillary test opinion

ESMA has published and then updated its opinion on the ancillary test for commodity derivatives under MiFID 2. The update relates only to a typo in the original. The opinion sets out ESMA’s views on how to determine the market size figures to ensure the MiFID 2 Delegated Regulation can be properly applied.

ESMA updates MAR FAQs

ESMA has updated its FAQs on MAR to include new questions on: persons closely associated to a PDMR; blanket cancellation of orders policies; and disclosure of inside information relating to Pillar II requirements.