Author Archives: Angie Bamboulis

ECB publishes the latest version of its Supervision Letter

The European Central Bank (ECB) has published the latest edition of its Supervision Letter. The August edition includes a recording of an interview with Ed Sibley, Deputy Governor of the Central Bank of Ireland and ECB Supervisory Board member, discussing the importance of all forms of diversity to the governance, culture and risk profile of banks. In […]

FCA complaints handling review findings

The FCA has published its findings of the review of how Non-deposit Taking Mortgage Lenders (NDTMLs) and Mortgage Third-Party Administrators (MTPAs) handle complaints. In particular the review looked at how NDTMLs and MTPAs treat their customers, whether their complaint handling arrangements pose any potential consumer harm, and how they could handle complaints better. The FCA found that overall […]

FCA Dear CEO Letter on cross border arrangements

The FCA has published a Dear CEO letter on cross border booking arrangements. In its letter, the FCA acknowledges that, in order to deal with the UK’s withdrawal from the EU, firms have put in place contingency plans which when executed will impact current business models, legal entity strategies and booking arrangements. The FCA appreciates the […]

EIOPA joins the Sustainable Insurance Forum

The European Insurance and Occupational Pensions Authority (EIOPA) has announced that it has become a member of the Sustainable Insurance Forum (SIF). The SIF is a network of insurance supervisors and regulators from around the world working together on sustainability challenges facing the insurance sector. In July 2018, the SIF, together with the International Association […]

ECB publishes draft regulation on money market statistics

The ECB has published a draft Regulation amending the Money Market Statistical Reporting (MMSR) Regulation. Since July 2016, the ECB has used the MMSR Regulation to collect data on the euro money market. In addition, detailed data has been reported by large euro area banks on transactions denominated in euro in the unsecured, secured, foreign exchange […]

FCA consults on general standards and communication rules for payment services and e-money

The FCA has published a consultation paper on rules and guidance to improve conduct and communication in the payment services and e-money sectors. Currently, payment service providers and e-money issuers are subject to different regulatory requirements, as both FSMA and non-FSMA firms operate in these sectors. The FCA has recognised that this creates a mismatch […]

FCA confirms no action will be taken against RBS for treatment of SME customers

The FCA has published an update on its investigation into RBS’s treatment of small and medium-sized enterprise (SME) customers transferred to its Global Restructuring Group (GRG). The FCA commissioned an independent review in 2014 and found that RBS’s GRG unit had systematically mistreated customers. However, the FCA has now confirmed that it has no power to take […]

Mortgage Lenders agree on common standards to help longstanding borrowers

UK Finance has announced that together with the Building Societies Association and the Intermediary Mortgage Lenders Association, it has agreed common standards to help existing mortgage borrowers on a lender’s reversion rates to switch to a better deal in certain circumstances. The cross-industry commitment follows the FCA’s Mortgage Market Study interim report, which identified a small […]

FCA’S FINAL RULES ON ASSESSING CREDITWORTHINESS IN CONSUMER CREDIT

The FCA has published a policy statement setting out its final rules and guidance on assessing creditworthiness in consumer credit. The policy statement summarises and responds to the feedback the FCA received to the July 2017 consultation paper (CP12/27). In particular, the changes set out in the policy statement clarify the FCA’s existing rules and guidance […]

FCA seeks feedback on price discrimination in the cash savings market

The FCA has published a discussion paper on price discrimination in the cash savings market. The FCA is concerned that longstanding customers receive lower interest rates on easy access cash savings accounts products than those received by customers who shop around; and that competition is not working well in the cash savings market, particularly for customers that […]

PSR MARKET REVIEW INTO THE SUPPLY OF CARD-ACQUIRING SERVICES

The PSR has published its draft terms of reference setting out the proposed approach to the market review into the supply of card-acquiring services that it intends to carry out. The review follows concerns that the supply of these services may not be working well for merchants, and ultimately consumers. This includes, for example, concerns that there […]

PRA consults on regulatory reporting

The PRA has published an occasional consultation paper on regulatory reporting. The consultation paper sets out proposed changes to the following reporting requirements: discontinuance of Prudent Valuation Return PV001; changes to PRA reporting instructions to align with updated EBA requirements; amendments to Pillar 2 reporting templates and instructions to reflect their application to ring-fenced bodies; […]

MOU ON THE REGULATION OF PAYMENT SYSTEMS

On 20 July 2018, the Bank Of England (BoE), the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA) and Payment Systems Regulator (PSR) published their Memorandum of Understanding in relation to payment systems (MoU). The MoU sets out the high-level framework which the regulators will use to cooperate with one another in relation to payment […]

EBA GUIDELINES ON FRAUD REPORTING UNDER PSD2

The European Banking Authority (EBA) has published its final report on the fraud reporting guidelines under PSD2 (Guidelines). The Guidelines have been published following the consultation which took place in August 2017. Article 96(6) of PSD2 states that payment services providers must provide ‘statistical data on fraud relating to different means of payment to their competent […]

The FCA’s discussion paper on the introduction of a duty of care

Alongside the Approach to Consumers document, which was published on 17 July 2018, the FCA has published a discussion paper (DP18/5) on the introduction of a duty of care for financial services firms. In response to the FCA’s consultation on its future approach to consumers (carried out in November 2017), some stakeholders raised concerns that […]

The FCA’s Approach to Consumers

Following its consultation in November 2017, the FCA has today published its Approach to Consumers document which aims to address the concerns raised in the feedback to the consultation. The consultation took place following the FCA’s April 2017 Mission statement, which set out how the FCA intended to serve the public interest and deliver public value to the […]

FSB statement on reforming interest rate benchmarks

  The Financial Stability Board (FSB) has published a statement on reforms to interbank offered rates (IBORs) and the development of overnight risk-free rates (RFRs) and term rates. Points of interest include: to ensure financial stability, benchmarks which are used extensively must be especially robust; the Official Sector Steering Group (OSSG), set up to coordinate […]

Andrew Bailey speaks on the transition from LIBOR

The FCA has published a speech by Andrew Bailey, Chief Executive of the FCA, on transitioning from LIBOR to alternative interest rate benchmarks. Although important steps have been taken towards transition, Andrew Bailey commented that the transition is not yet fast enough and there is much further to go. Points of interest in the speech […]

Banking (Cash Machine Charges and Financial Inclusion) Bill 2017-19

Parliament has announced that the second reading of the Banking (Cash Machine Charges and Financial Inclusion) Bill 2017-19 is scheduled to take place on Friday 23 November 2018. The Bill contains provisions which prohibits cash machine charges; requires the Financial Conduct Authority to supervise an access to banking standard; imposes penalties for breaches of that standard; establishes a […]

FCA publishes new version of its Approach Document on payment services and e-money

The FCA has published a revised version of its Approach Document on payment services and electronic money. The updated document includes new guidance on operational and security risks under PSD2; which can be found in chapters 13 (reporting and notifications) and 18 (operational and security risks). The FCA has also made a number of other […]

Discussion Paper on building the financial sector’s operational resilience

The Bank of England, the PRA and FCA have published a joint discussion paper on its approach to improve operational resilience in the financial sector. The regulators envisage that boards and senior managers can achieve better standards of operational resilience through increased focus on setting, monitoring and testing specific impact tolerances for key business services. […]

Evaluation of the Consumer Credit Directive

The European Commission has published a roadmap on the Consumer Credit Directive (Directive). The Commission is looking to assess: effectiveness: whether the original objectives of the Directive have been achieved; efficiency: the functioning of the Directive from a simplification and burden reduction perspective; coherence: how the Directive works together with other legislation in the field of […]

Mobile Contactless SEPA Card Payments Interoperability Implementation Guidelines

Following a consultation in October 2017, the European Payments Council has published a revised version of its mobile contactless Single Euro Payments Area (SEPA) card payments interoperability implementation guidelines (MCP). The guidelines have been updated to reflect a rapidly evolving system and address the interoperability aspects relating to the MCP application lifecycle management.  

PSR: The consolidation of UK retail payment systems is now complete

The Payment Systems Regulator (PSR) has issued a press release stating that the consolidation of the UK retail payment systems is now complete, following the introduction of the New Payment Systems Operator (NPSO). The NPSO took over the running and managing of cheque paper and cheque image clearing systems on 1 July 2018.    

Mansion House 2018: Speech by the Chancellor of the Exchequer

HM Treasury has published a speech by Philip Hammond, Chancellor of the Exchequer, which was delivered at the annual Mansion House dinner. In his speech, Mr Hammond focused on Brexit and financial services. He said that the UK needs to ensure that it remains a world leader in innovation, and extend London’s position as the […]

Mansion House 2018: BoE Governor gives speech – ‘New Economy, New Finance, New Bank’

Mark Carney, Governor of the BoE, delivered a speech at the annual Mansion House dinner on how the UK financial system can continue to serve the UK and the world, in the face of major structural changes. In his speech, Mr Carney outlined how the BoE is changing to support the development of the UK […]

FCA statement on EBA’s draft PSD2 Guidelines and Opinion for banks and others involved in open banking

The FCA has published a statement on the European Banking Authority’s (EBA) draft PSD2 Guidelines and Opinion on the Regulatory Technical Standards (RTS) on Strong Customer Authentication and Common and Secure Communication. The FCA said that it was supportive of the views contained in the EBA Opinion and encourage firms and API initiatives to consider these […]

FCA Financial Lives Survey

The FCA have published a report on its Financial Lives Survey 2018. The survey is the FCA’s largest tracking survey of adults and their finances, covering  13,000 face-to-face and online interviews. Key findings include: compared with the UK average of 50%, 55% of adults in the North West and 54% of adults in rural areas […]

Treasury’s response to call for evidence on breathing space scheme

HM Treasury has published a summary of the submissions received to the call for evidence on problem debt. The call for evidence was issued in October 2017 to gain further insight from the debt advice sector and creditors about how best to design, implement, administer and monitor a six-week breathing space scheme and statutory debt management […]

EBA publishes Annual Report 2017

The European Banking Authority (EBA) has published its annual report 2017, in which it describes the work undertaken and its achievements in 2017. The report also includes the EBA’s key areas of focus for 2018. The work undertaken by the EBA and its achievements in 2017 include: finalising  important components of the Single Rulebook and […]

PSR DISCUSSION PAPER ON DATA IN THE PAYMENT INDUSTRY

The Payment Services Regulator (PSR) has published a Discussion Paper (DP18/1) on the use of data in the payments industry. The aim of the discussion paper is to better understand the actions the PSR may need to take in the future around the use of data in payment services. The PSR acknowledges that the UK’s payment sector is growing […]

BoE consults on the modernisation of UK payments

The Bank of England (BoE) has, together with the New Payments System Operator (NSPO) and the Payment System Regulator (PSR), launched a 6 week consultation on the adoption of a common global standard, known as “ISO 20022”, for payments in the UK. The standard will be adopted across the UK’s main interbank payment systems – […]

BoE responds to the Treasury’s call for evidence on cash and digital payments

The Bank of England (BoE) has published its response to the Treasury’s Call for Evidence on cash and digital payments in the new economy. The BoE welcomes Treasury’s Call for Evidence. Key points include: the usage of cash is evolving, but there is, and is likely to remain for the foreseeable future, a significant public demand […]

New Chair of the Court of the Bank of England appointed

HM Treasury and the Bank of England have announced that Bradley Fried has been appointed as Chair of the Court of the Bank of England, with effect from 1 July 2018. He will replace Sir Anthony Habgood who has been Chair since 2014.

Treasury Committee’s digital currencies inquiry

The Treasury Committee has updated its webpage with the written evidence it has received to its digital currencies inquiry, which was launched in February 2018. The Committee received written evidence from a number of interested parties including the FCA and Bank of England.  

HM Treasury: Cryptoassets Taskforce meets for the first time

The first meeting of the UK’s new Cryptoassets Taskforce took place on 21 May 2018. The Taskforce was first announced in April by the Chancellor of the Exchequer as part of the Government’s Fintech Sector Strategy. Senior leaders from the Government and the financial regulators met to agree the Taskforce’s objectives, which include exploring the impact of cryptoassets, […]

Memorandum of understanding between FCA and Insolvency Service

The FCA has published a memorandum of understanding (MoU) it has entered with the Insolvency Service (IS). The MoU sets out the agreement between the IS and the FCA that governs the exchange of information to better deliver the objectives of both organisations, in particular, in respect of information relating to misconduct, investigations and enforcement.   […]

FCA bans director for misappropriation of client money

The FCA has today published a decision notice in which it has banned a director, Darren Newton, from working in any regulated activity in the financial services sector. The FCA found that Mr Newton had used customers’ money to purchase a debt management firm, First Step Finance Limited. The FCA commented that this “showed a […]

Summary of responses to the ECB’s second public consultation on developing a euro unsecured overnight interest rate

The European Central Bank (ECB) has published a summary of the responses it received to its second consultation on developing a euro unsecured overnight interest rate. The consultation follows the ECB’s decision to develop a daily euro unsecured overnight interest rate based on data already available to the Eurosystem. The rate is due to be finalised before 2020 and will complement […]

ASA Ruling on Intelligent Lending Ltd t/a Ocean Finance

The Advertising Standards Authority (ASA) upheld a complaint about a credit card advertisement broadcast by Intelligent Lending Limited t/a Ocean Finance. The complainant challenged whether the advertisement should have included a representative APR. The radio advertisement, broadcasted in January 2018, stated “Apparently there are still some people who say they don’t want to apply for an Ocean credit […]

PRA consults on Solvency II

The PRA has today published two consultation papers relating to Solvency II. The first consultation paper “Solvency II: External audit of the public disclosure requirement” sets out the PRA’s proposals rule that requires the external audit of parts of the Solvency and Financial Condition Report, under Rule 2 of the External Audit part of the […]

ECB consults on cyber resilience oversight expectations

The European Central Bank (ECB) has launched a consultation on cyber resilience oversight expectations. The consultation contains a draft document which defines the ECB’s expectations in terms of cyber resilience, based on existing global guidance published by the Committee on Payments and Market Infrastructures and the Board of the International Organisation of Securities Commissions (CPMI-IOSCO) […]

FCA SPEECH ON PSD2 AND OPEN BANKING

The FCA has published a speech, by Karina McTeague, Director of Retail Banking Supervision, on opportunities offered by the Payment Services Directive (PSD2) and open banking. Highlights of the speech include: the FCA has a real interest in the Open Banking Implementation Entity’s successful delivery of the Competition and Market Authority’s open banking application programming interface […]

FCA and PRA consult on 2018/2019 regulated fee and levy rate proposals

The FCA and PRA have, separately, published consultation papers on regulated fees and levies for 2018/19. In its consultation paper, the FCA sets out the proposed 2018/19 regulatory fees and levies for itself, the Financial Ombudsman Service, the Money Advice Service, the Pension Wise service and HM Treasury’s illegal money lending expenses.  The FCA also […]

ECB PUBLISHES ANNUAL REPORT FOR 2017

The European Central Bank (ECB) has published its annual report for 2017. The annual report sets out the ECB’s activities in the economic and financial environment of 2017. Amongst other things, the report focuses on: the economic recovery in the euro area; the ECB’s monetary policy decisions, which lead to the ECB recalibrating its asset […]

ECON DRAFT REPORT ON FINANCIAL SERVICES REGULATION AND SUPERVISION RELATIONSHIP BETWEEN EU AND THIRD COUNTRIES

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) published its draft report on the financial services regulation and supervision relationship between the EU and third countries. The draft report contains a motion for a European Parliament resolution and includes, amongst other things calls: on the European Commission to adopt a legislative act establishing […]

CMA PUBLISHES SUMMARY OF ROUNDTABLE WITH ASSET MANAGERS

The Competition and Markets Authority (CMA) has published a summary of the roundtable that it held, on 12 February 2018, with asset managers. The roundtable was held as part of CMA’s work on the market investigation into the supply and acquisition of investment consultancy services and fiduciary management services to and by institutional investors and employers in the UK.

FCA SPEECH ON BREXIT: TRANSITION AND FINANCIAL REGULATION

The FCA has published a speech by Andrew Bailey, Chief Executive of the FCA, on Brexit, following the agreement reached between the UK and EU on a transition period. Key issues highlighted by Mr Bailey include: the importance of a transitional period for everyone involved in financial services on both sides; the need for continuing authorisation for […]

PRA and BoE’s approach to authorisation and supervision in preparation for Brexit

The Bank of England (BoE) has published a press release setting out its regulatory approach to preparations for Brexit, including its approach to the authorisation and supervision of international banks, insurers and central counterparties (CCP). The update follows the agreement between the UK and EU27 that there should be an implementation period until the end of 2020 as […]

EBA consults on extending complaints-handling guidelines

The European Banking Authority (EBA) has published a Consultation Paper on the application of the existing Joint Committee Guidelines on complaints-handling to authorities competent for supervising new institutions under the Mortgage Credit Directive (MCD) and the Payment Services Directive (PSD2). The deadline for comments is 27 May 2018.

FCA PUBLISHES POLICY STATEMENT AND FINALISED GUIDANCE ON STAFF INCENTIVES, REMUNERATION AND PERFORMANCE MANAGEMENT IN CONSUMER CREDIT

The FCA has published a Policy Statement (PS18/7) and Finalised Guidance (FG18/2) on staff incentives, remuneration and performance management in consumer credit. The Policy Statement sets out final rules for staff incentives, remuneration and performance management in consumer credit firms. The Finalised Guidance sets out examples of good and bad practice observed by the FCA […]

FCA PUBLISHES GUIDANCE CONSULTATION ON FINANCIAL CRIME SYSTEMS AND CONTROLS

The FCA has published a Guidance Consultation on amending the FCA’s guidance on financial crime (GC18/1). The proposed changes include the addition of a chapter on insider dealing and market manipulation, and making miscellaneous changes as a result of recent regulatory changes to ensure the guide remains up to date. The deadline for comments on the proposals is […]

ECB Annual Report on supervisory activities

The European Central Bank (ECB) has published its Annual Report on its supervisory activities for 2017. The Annual Report sets out the ECB’s key achievements for 2017. In addition, the ECB published a speech on the Annual Report given by Daniele Nouy, Chair of the ECB’s Supervisory Board, which includes focus areas on general developments in the […]

FCA publishes policy statement on pension transfers advice

The FCA has published a Policy Statement on pension transfers advice (PS18/6). This follows the FCA’s June 2017 consultation, which looked at improving the quality of pension transfer advice. The policy statement sets out new rules on pension transfer advice (most of which come into force on 1 April 2018) and seeks views on additional changes, […]

Joint call for input on regulating the pensions and retirement income sector published

The Pensions Regulator and FCA have published a Joint Call for Input on their strategic approach for regulating the pensions and retirement income sector. The strategic approach will set out how the FCA and Pensions Regulator will work together to tackle the key risks facing the pensions sector over the next 5-10 years. Roundatables will be held in 3 […]

Andrew Bailey speaks on transforming culture in financial services

The FCA has published a speech by Andrew Bailey, FCA Chief Executive, on transforming culture in financial services. Mr Bailey highlights the following issues: work on firm culture is an important priority for the FCA; essays in the FCA’s Discussion Paper on transforming culture in financial services indicate that culture is about encouraging and incentivising good things, […]

High Court approves Barclays ring-fencing transfer application

On 9 March 2018, the High Court considered an application for the sanction of a ring-fencing transfer scheme (RFTS) made by Barclays Bank plc in the case of Re Barclays Bank plc and another [2018] EWHC 472 (Ch). As this was the first application for the sanction of an RFTS under section 111 of the Financial […]

Commission publishes Delegated Regulation on RTS on strong customer authentication and common and secure communication under PSD2

The Commission has published the Commission Delegated Regulation (EU) 2018/389, supplementing the revised Payment Services Directive with regard to regulatory technical standards (RTS) for strong customer authentication and common and secure open standards of communication. It will  apply from 14 September 2019, with the exception of Article 30(3) and (5), which will apply from 14 March […]

EU Commission communicates Action Plan for financing sustainable growth

The EU Commission has published a communication on its action plan for financing sustainable growth. The action plan aims to: reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth; manage financial risks stemming from climate change, resource depletion, environmental degradation and social issues; and foster transparency and long-termism in financial […]

FCA bans former Co-Operative Bank Chair, Paul Flowers from the financial services industry

The FCA has published a final notice, issued to Paul Flowers, the former Chair of the Co-Operative Bank between 15 April 2010 and 5 June 2013, banning him from the financial services industry. The FCA found that Mr Flowers’ conduct, during his time as chair, demonstrated a lack of fitness and propriety required to work […]

BoE speech on the future of money

The Bank of England (BoE) has published a speech by Mark Carney, BoE Governor, in which he considers the future of money. In particular, Mark Carney looks at how the developments in money and payments technologies could transform the economy (in ways good and bad).        

Payment Systems Regulator confirms plans to protect victims of payment scams

The Payment Services Regulator (PSR) has announced the outcome of its consultation on the introduction of a contingent reimbursement model for victims of authorised push payment (APP) scams. In summary: an industry code will be in place by September 2018, paving the way for victims of APP scams to have better protection; consumer groups and […]

The FCA fines Vanquis £1,976,000 for failure to disclose full price of an add-on product

The FCA has fined credit card lender, Vanquis, £1,976,000 and ordered it to pay compensation to customers for failing to disclose the full price of an add-on product called Repayment Option Plan. In particular, the FCA found that Vanquis breached Principle 6 (Customers’ interests) and Principle 7 (Communications with clients) of the FCA’s Principles for […]

FCA publishes its final policy statement on new rules for the credit card market

Following a comprehensive study of the credit card market, the FCA has published its final policy statement on new rules for the credit card market. The new rules aim to provide more protection for credit card customers in persistent debt or at the risk of financial difficulty. Firms will be required to take series of […]

Summary of responses to the ECB’s first public consultation on developing a euro secured overnight interest rate

The European Central Bank has published a summary of responses it received following its first consultation paper on a new euro unsecured overnight interest rate, published in November 2017. Responses include: a vast majority of respondents agreed with the definition suggested in the consultation document and expected the rate to be generally accepted by the public as […]

FCA Statement on proposals to introduce a public register

The FCA has published a statement  announcing that it will consult on proposals to make information available on a wider range of individuals at authorised firms. Under the FCA’s proposals to extend the Senior Managers and Certification Regime, the FCA will only approve the most senior individuals within firms, resulting in only senior managers appearing […]

BCBS report on the implications of fintech developments for banks and bank supervisors

The Basel Committee on Banking Supervision has published a report on the implications of fintech developments for banks and bank supervisors. The report assesses how technology-driven innovation in financial services (fintech) may affect the banking industry and the activities of supervisors in the short to medium term.    

FCA AND PRA APPOINT NEW CHAIR OF THE FSCS

The FCA and PRA have today announced the appointed of Marshall Bailey as the new Chair of the Financial Services Compensation Scheme Limited (FSCS) with effect from 1 April 2018. Marshall Bailey succeeds Lawrence Churchill, who is stepping down after 2 terms as Chair.

The three ESAs warn consumers on the risk of virtual currencies

The three ESAs (consisting of the European Securities and Markets Authority, the European Banking Authority and the European Insurance and Occupational Pensions Authority) issued a warning to consumers on the high risks of buying and/or holding virtual currencies such as Bitcoin, Ether and Ripple (VCs). The warning follows the fact that there has been an increasing number […]

Further SFO charges in Barclays case

The Serious Fraud Office (SFO) has charged Barclays Bank Plc (Barclays) with unlawful financial assistance contrary to s151(1) and (3) of the Companies Act 1985. This relates to the financial assistance Barclays gave to Qatar Holdings LLC between 1 October and 30 November 2008, in the form of a US$3 billion loan, for the purpose of acquiring […]

The standards of lending practice for personal customers review

The Lending Standards Boards (LSB) has announced that it intends to review the Standards of Lending Practice for personal customers (Standards). The LSB is seeking input from registered firms, industry bodies, consumer and debt bodies, and other relevant parties whose work may interact with the LBS to help it consider whether updates to the Standards […]

ESMA UPDATES Q&As

The European Securities and Markets Authority (ESMA) has issued updates of its Q&As on: the implementation of the European Markets Infrastructure Regulation (EMIR). The purpose of the document is to promote common supervisory approaches and practices in the application of EMIR; the implementation of the Central Securities Depository Regulation (CSDR). The Q&A provides common answers […]

FCA speech – The future of the city

On 5 February 2018, Andrew Bailey, FCA Chief Executive, delivered a speech, the Future of the City, which focuses on the transition to Brexit and the future of the UK regulatory regime. Key highlights include: the FCA is treating Brexit as a high priority and the FCA will do its utmost to ensure that it works […]

FCA review of Board Effectiveness

The FCA has published a report of the independent review into the effectiveness of its Board. The review was undertaken by Independent Audit Limited. The review involved interviews with Board members, a review of documentation and observance of Board and committee meetings. The report also sets out the following broad themes: aligning of activities into […]

EIOPA revises work programme for 2018

The European Insurance and Occupational Pensions Authority (EIOPA) has published a revised version of its 2018 work programme, which was first published in September 2017. The revised version incorporates resources information for the years 2019 an 2020 relating to the European Commission’s legislative proposals relating to the review of the European Supervisory Authorities and the […]

FCA’s thematic review on the fair treatment of existing interest-only mortgage customers

The FCA has published a thematic review (TR18/1) on the fair treatment of existing interest-only mortgage customers. The FCA has been examining the fair treatment of customers with interest-only mortgages and has been looking at how lenders are working to help customers avoid the potential harm of non-repayment at maturity. In summary, the FCA found that: […]

European Commission publishes report on implementation and impact of EMD2

The European Commission has published a report on the implementation and impact of the second Electronic Money Directive (EMD2). The report focuses on the application of prudential requirements for electronic money institutions and discusses the relationship between EMD2 and the Fourth Money Laundering Directive. The European Commission concluded that: the overall assessment of the EMD2 […]

FCA fines online broker £1,049,412 for poor market abuse controls and failure to report suspicious client transactions

The FCA has fined online broker, Interactive Brokers (UK) Limited (IBUK), £1,049,412 for failings in its post-trade systems and controls for identifying and reporting potential market abuse between 6 February 2014 and 28 February 2015. The FCA said that IBUK breached Principle 3 (management and control) of its Principles for Businesses,  by failing to take […]

The new Office for Professional Body Anti-Money Laundering Supervision established

The new regulator for anti-money laundering, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), was launched on 18 January 2018 thereby strengthening the UK’s anti-money laundering (AML) supervisory regime. OPBAS is housed within the FCA and will facilitate collaboration and information sharing between the professional body AML supervisors, statutory supervisors, and law enforcement agencies. In addition, the […]

ESMA updates transparency calculations for MiFID II/MiFIR

The European Securities and Markets Authority (ESMA) has published an extended version of MiFID II/MiFIR transitional transparency calculations (TTC) for equity and bond instruments. ESMA has added the applicable TTC for: equity instruments, traded for the first time on a trading venue between 13 September 2017 and 2 January 2018 (included); and bond instruments (except ETCs […]

FSCS PUBLISHES PLAN AND BUDGET FOR 2018/2019

The Financial Services Compensation Scheme (FSCS) has published its Plan and Budget for 2018/2019. The Plan and Budget outlines the FSCS’s expected management costs and initial levy forecasts financial services firms will pay next year. The FSCS expects to levy the industry £336m, for the nine months to 31 March 2019, up from £320m in […]

The PRA postpones the introduction of its reporting proposals set out Pillar 2 liquidity consultation paper

The PRA has updates its webpage relating to its consultation paper on Pillar 2 liquidity (CP13/17). In its consultation paper, the PRA set out its proposals on a cash flow mismatch risk  framework and other methodologies for assessing firms’ liquidity risk under the Pillar 2 liquidity framework. It also proposes drafting reporting rule changes and the […]

The PRA’s “Dear Chair” letter on consumer credit

On 17 January 2018, the PRA published a “Dear Chair letter” following a review on consumer credit lending (covering credit cards, personal loans and motor finance) and the publication of its statement on consumer credit in July 2017. The letter communicates the PRA’s key findings from the review and sets out points for firms to […]

Joint Committee of ESA’s final guidelines under revised Wire Transfer Regulation

The Joint Committee of the European Supervisory Authorities (ESA) has published its final guidelines under the Wire Transfer Regulation (Regulation (EU) 2015/847) in each of the official languages of the EU. The guidelines were first published in September 2017 and include measures that payment service providers should take to detect missing or incomplete information on the […]

ECA’S REPORT ON THE OPERATIONAL EFFICIENCY OF THE ECB’S CRISIS MANAGEMENT FOR BANKS

On 16 January 2018, the European Court of Auditors (ECA) published a report on the operational efficiency of the European Central Bank’s (ECB) crisis management for banks. The report states that although the ECB has established a substantial framework for crisis management and resources for the assessment of bank recovery plans and the supervision of […]

Responses to the Treasury Committee’s report on Solvency II

The House of Commons Treasury Committee has published HM Treasury’s response and the PRA’s interim response to its report on the Solvency II Directive and its impact on the UK insurance industry. HM Treasury responded to the recommendations set out in the report relating to the PRA’s competitive objective and Brexit. In its interim response, the […]

IFRS 9 transitional arrangements – EBA Final Guidelines and the PRA’s “Dear CFO” letter

The EBA’s final Guidelines on disclosure requirements of IFRS 9 Following its consultation in July 2017, the European Banking Authority (EBA) has today published its final Guidelines on disclosure requirements of International Financial Reporting Standard 9 (IFRS 9) or expected credit losses (ECLs) transitional arrangements, specifying a uniform disclosure template institutions should use when disclosing […]

FCA INSIGHT ARTICLE: Who is driving consumer credit growth?

The FCA has published an Insight article that considers who is driving consumer credit growth. Although regulators have relied upon aggregate data from larger lenders to monitor which lenders are driving credit growth, there are important gaps. For example, they do not include less-mainstream products that people with low incomes often rely on; and do not […]

FCA fines and bans former RBS trader, Neil Danziger

The FCA has fined former Royal Bank of Scotland (RBS) interest rate derivatives trader, Neil Danziger, £250,000 and has prohibited him from performing any function in relation to any regulated financial activity. The FCA found that Mr Danziger, who formerly worked at RBS trading products referenced to Japanese Yen LIBOR,  was knowingly concerned in RBS’s failure to […]

FCA consultation paper on aligning FSCS levy time period

The FCA has published a consultation paper on aligning the Financial Services Compensation Scheme (FSCS) levy time period (CP18/1). The FCA recently made changes to the FSCS funding arrangements as part of a broader review of FSCS funding, including to align the FSCS compensation levy year with the financial year. The FCA has since become […]

Memorandum of Understanding between the FRC and FCA

The Financial Reporting Council (FRC) and Financial Conduct Authority (FCA) have published a Memorandum of Understanding (MOU) setting out: the respective statutory regulatory responsibilities of the FRC and FCA;  the arrangement for co-operation between the two bodies; and the exchange of relevant information. In addition, the MoU aims to aid, through clarity and transparency, understanding of the above […]

Opinion of the EBA on the transition from PSD1 to PSD2

The European Blanking authority (EBA) has published an opinion (EBA/Op/2017/16) on the transition from the Payment Services Directive (2007/64/EC) (PSD) to the revised Directive on payment services in the internal market ((EU) 2015/2366) (PSD2), which will apply from 13 January 2018. The EBA clarifies a number of issues identified by market participants and competent authorities, including: […]

EBA Discussion Paper – Implementation in the European Union of the revised market risk and counterparty credit risk frameworks

The European Banking Association (EBA) has published a discussion paper (EBA/DP/2017/04) on the EU implementation of the revised market risk and counterparty credit risk frameworks. The discussion paper focuses on the implementation issues that are expected to have a significant impact on banks implementing the standardised approach for counterparty credit risk (SA-CCR) and/or the fundamental review of […]

FCA statement on the EBA Guidelines on Operational and Security Risks under PSD2

In response to the European Banking Authority (EBA) Guidelines on Operational and Security Risks under PSD2, published on 12 December 2017, the FCA published a statement on its website reminding payment service providers that they will be expected to comply with the Guidelines from 13 January 2018 in addition to the requirements set out in Regulation […]

ESMA UPDATES ITS Q&As RELATING TO MIFID II

The European Securities and Markets Authority (ESMA) has today published updated versions on its Questions and Answers (Q&As) relating to topics under the MiFID II Directive (2014/65/EU) and the Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR). ESMA has added new Q&As covering: transparency and market structures; MiFID II and MiFIR investor protection and intermediaries […]

Agreement on the EU proposals to prevent money laundering and terrorism financing reached

The European Parliament and the Council has announced they have reached a political agreement on the EU Commission’s proposal to further strengthen EU rules on anti-money laundering and counter terrorist financing. This revision of the Fourth Anti-Money Laundering Directive, aims at: increasing transparency on who really owns companies and trusts by establishing beneficial ownership registers; […]

PRA PUBLISHES policy statement on Pillar 2A requirements and disclosure

The PRA has today published a policy statement on Pillar 2A requirements and disclosure (PS30/17), which provides feedback to the responses to the consultation paper ‘Pillar 2A requirements and disclosure’ (CP12/17). The PRA has also set out the final amendments to – the  Supervisory Statement (SS) 31/15 ‘The Internal Capital Adequacy Assessment Process (ICAAP) and […]

Home Secretary announces new national economic crime centre to tackle high level fraud and money laundering

The Home Secretary Amber Rudd has announced plans to tackle economic crime to the assist in preventing fraud, money laundering and corruption. The measures include a new national economic crime centre within the National Crime Agency, which will be tasked with coordinating the national response to economic crime, backed by greater intelligence and analytical capabilities. The […]

FCA CLOSES CONSULTATION ON persistent debt and earlier intervention remedies

The FCA has updated its webpage on its consultation on persistent debt and earlier intervention remedies (CP17/10). Now that the consultation has closed, the FCA stated on its website that they are consulting on measures to address persistent credit card debt and require credit card firms to use their data to identify customers at risk of financial […]

Lloyd’s reacts to Brexit developments

Reacting to the news that the UK and EU are planning to move to the next phase of Brexit talks, Lloyds has released a press release stating that it is pleased that the Brexit talks can now enter the second phase focusing on trade and that an agreement has been reached with regards to the […]