Author Archives: Angie Bamboulis
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 […]
ECB Transcript of the public hearing on the addendum to the ECB Guidance on non-performing loans
The European Central Bank (ECB) has published a transcript of the public hearing on the addendum to the ECB Guidance on non-performing loans, held on 30 November 2017 at the ECB’s main building premises in Frankfurt and Main. This follows the publication of a letter, dated 6 December 2017, from Danièle Nouy, ECB Supervisory Board […]
ECB approves major projects in the field of large-value payments and collateral management
The European Central Bank (ECB) has announced the approval of the consolidation of the Eurosystem’s real-gross settlement system TARGET2 and the securities settlement system platform TARGET2-Securities (T2S), as well as the development of a European Collateral Management System (ECMS). The consolidation will provide market participants across the Eurosystem with enhanced liquidity management procedures and is expected to be […]
EBA’s speech on fintech and cloud in banking
The European Banking Authority (EBA) has published Slavka Eley’s, Head of Supervisory Convergence Unit at the EBA, speech given at the EBF Cloud banking Conference. Slavka Eley’s speech covered three aspects relating to innovation: the observed changes in the banking landscape mainly driven by technological innovation; the use of cloud computing in banking; and FinTech […]
FCA roundtables on high-cost credit
The FCA has issued a paper summarising the issues and ideas raised by participants in the FCA roundtables, held in September and October. The roundtables covered discussions on (i) alternatives to high-cost credit and (ii) the provision of essential goods. The following key themes emerged from the discussions: alternative lenders face challenges in accessing commercial capital at a […]
Treasury updates AML advisory
On 5 December 2017, HM Treasury published an Advisory Notice on money laundering and terrorist financing controls in higher risk jurisdictions. The Advisory Note follows the Financial Action Task Force (FATF) statements identifying high risk jurisdictions; which was discussed at its plenary meeting held on 3 November 2017. In the Advisory Note, HM Treasury draws […]
CMA consults on its 2018/19 annual plan
The Competition and Markets Authority (CMA) is consulting on its draft annual plan, which sets out its plans and priorities over the next year. Interested parties have the opportunity to provide views and comments on the proposed priorities until 14 January 2018. Over the next year, the CMA is proposing to take a particular interest […]
Financial Stability Report, November 2017
The Bank of England (BoE) has published its financial stability report, issue number 42. The report sets out the Financial Policy Committee’s (FPC), a sub-committee of the BoE’s Court of Directors, views of the outlook for UK financial stability, including the assessment of the resilience of the UK financial system and the main risks to […]
EBA repeals its Guidelines on retail deposits subject to different outflows for the purpose of liquidity reporting
On the 27 November 2017, the European Banking Authority (EBA) announced that it has decided to formally repeal its guidelines on retail deposits subject to different outflows for the purposes of liquidity reporting under the Capital Requirements Regulation. The EBA has decided to repeal the Guidelines as they have been superseded by the Liquidity Coverage […]
Credit Unions Act 1979 (Locality Common Bond Conditions) Order 2017
The Credit Unions Act 1979 (Locality Common Bond Conditions) Order 2017 (SI 2017/1144) has been published, along with an explanatory memorandum. The Order makes a change to section 1B(3)(a) of the Credit Unions Act 1979, by increasing the number of potential members of a credit union for the locality common bond from 2 million to 3 […]
FCA publishes a statement on LIBOR panels
The FCA has confirmed that all 20 of the panel banks for LIBOR (the London Interbank Rate) have agreed to support the LIBOR benchmark, ensuring the sustainability of the rate until 2021. The confirmation follows Andrew Bailey’s, FCA Chief Executive, speech in July 2017, on the need for a transition period for LIBOR until the […]
Autumn Budget 2017: Key points for the financial services sector
Philip Hammond, Chancellor of the Exchequer, has delivered the Autumn Budget 2017. Key points for the financial services sector include: Asset management – the Government will publish a new long-term strategy to ensure that the UK asset management industry continues to thrive and deliver the best possible outcomes for investors and the UK economy. This will […]
Legislative proposals to set the application date of IDD at 1 October 2018
Following the European Parliament’s call to postpone the application of the IDD to 1 October 2018, ECON has written to the European Commission asking it to take the Committee’s suggestion into account. ECON states in its letter that such a legislative proposal is needed swiftly in order to enhance legal certainty concerning the provisions applicable and to allow for […]
David Davis’ speech on the financial services sector post Brexit
On 14 November 2017, David Davis, Secretary of State for Exiting the European Union, gave a speech on the post-Brexit relationship between the UK and the EU relating to the financial services sector. In his speech, Mr Davis focussed on the Government’s approach to its negotiations to leave the EU and what it is doing […]
FCA advises providers of AIS and PIS to apply for authorisation under PSD2
On 14 November 2017, the FCA sent an email to businesses, including firms providing account information services (AIS) or payment initiation services (PIS) advising them to apply for authorisation or registration, under the revised Directive on payment services in the internal market (PSD2), before 27 November 2017. Although majority of the regime will apply from 13 January 2018, the […]
FCA speech on effective compliance with the Market Abuse Regulation
On 14 November 2017, the FCA published a speech delivered by Julia Hoggett, Director of Market Oversight at the FCA, at the ‘Recent Developments in the Market Abuse Regime’ conference. The speech focused on effective compliance with the Market Abuse Regulation. Ms Hoggett highlighted in her speech that: effective oversight and compliance cannot and should not stay still; […]
ICO launches new advice service to help small organisations with GDPR preparations
The Information Commissioner’s Office (ICO) has launched an advice line in order to help small organisations prepare for compliance with the EU General Data Protection Regulation (GDPR), which is due to come into force in May 2018. The phone service is aimed at people running small businesses or charities and recognises the particular problems they face […]
Bank of England publishes a summary of the responses to its white paper on SONIA
The Bank of England (BoE) has published a summary of the responses it has received to its white paper (published in June 2017) on sterling risk-free reference rates (RFRs). The white paper set out the working group’s thinking on adoption of the Sterling Overnight Index Average (SONIA) interest rate benchmark as an alternative to the London Interbank Offered […]
The Supreme Court grants Deutsche Bahn AG permission to appeal against a Court of Appeal judgment concerning interchange fees
The Supreme Court (SC) today announced that permission to appeal has been granted to Deutsche Bahn AG (and other retailers) against the Court of Appeal’s judgment upholding an appeal by MasterCard against a judgment of the High Court, relating to interchange fees. This follows an action in the High Court brought by Deutsche Bahn (and various retailers) […]
FCA’s future approach to consumers
The FCA has today published its Approach to Consumers paper, which is intended to explore the FCA’s approach to regulating retail consumers. The paper follows the publication of the FCA’s Mission Statement in April 2017, which explained how and why the FCA prioritise, protect and intervene in financial markets. It is the first of a number […]
Interest Rate rises for the first time in 10 years
For the first time in more than 10 years the Bank of England (BoE) has raised interest rates. At its meeting on 1 November, the BoE’s Monetary Policy Committee (MPC) voted by a majority of 7-2 to increase the official bank rate from 0.25% to 0.5%. Although households will face higher mortgage interest payments after the […]
EBA publishes final guidelines on the supervision of significant branches
On 1 November 2017, the European Banking Authority (EBA) published a final report on the guidelines on the supervision of significant branches (EBA/GL/2017/14). The final report follows a consultation, which took place in December 2016 and sets out a summary of the feedback received and the EBA’s response to it. The guidelines, which will apply from […]
Legislative proposal for an EU framework on crowd and peer to peer finance
The European Commission (Commission) has published an inception impact assessment on its legislative proposal for an EU framework on crowd and peer to peer finance. The initiative is part of the Commission’s priority of establishing a Capital Market Union, in particular broadening access to finance for SMEs such as innovative companies, start-ups, and scale-ups. The Commission […]
EBA consults on home-host co-operation under PSD2
The European Banking Authority (EBA) has published a consultation on the draft regulatory technical standards (RTS), specifying the framework for the co-operation between competent authorities under the revised Payment Services Directive (PSD2). The proposed framework aims to ensure co-operation between supervision of payment institutions operating across borders by: specifying the procedure for the requests and replies for […]
HM Treasury publishes national risk assessment of Money Laundering and Terrorist Financing Regulations 2017
HM Treasury has published the 2017 national risk assessment (NRA) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) (MLRs). In 2015, the government published its first NRA of money laundering and terrorist finance, followed by an action plan in 2016 where the government set out […]
New FCA webpage on reporting consumer credit income
The FCA has published a new webpage setting out what consumer credit firms need to report in relation to their consumer credit income. The FCA charges consumer credit firms annual fees based on the data in forms CCR002 or CCR007. The webpage outlines what firms need to report to ensure that they are charged the […]
Final guidelines on the identification and management of step-in risk issued by the Basel Committee
The Basel Committee on Banking Supervision has released its Guidelines on identification and management of step-in risk . The guidelines build upon two consultations carried out by the Committee in December 2015 and March 2017. Step-in risk refers to the risk that a bank provides financial support to an entity beyond, or in the absence […]
HM Treasury’s Call for Evidence to tackle problem debt
On 24 October 2017, HM Treasury published a Call for Evidence to implement a breathing space scheme so that someone in serious problem debt may apply for legal protection from further interest, charges and enforcement action for a period of up to six weeks. The Call of Evidence follows the government’s commitment to encourage consumers to […]
Prudential requirements for credit institutions and investment firms
The European Commission (Commission) has announced that it will vote on a proposal to amend the existing Capital Requirements Regulation (CRR) during the October II plenary session. The Commission said that the new framework for ‘simple, transparent, and standardised’ (STS) securitisations has implications for the overall prudential framework for credit institutions and investment firms. The proposal to […]
FCA fines Merrill Lynch for transaction reporting failings
On 23 October 2017, the FCA published the final notice issued to Merrill Lynch International (Merrill Lynch). Merrill Lynch was fined £34,524,000 for failing to report exchange traded derivative transactions between February 2014 and February 2016. This relates to a breach of Principle 3 (Management and control) of the FCA’s Principles for Businesses and Article […]
FCA report – lessons learned from its regulatory sandbox
On 20 October 2017, the FCA published a report on lessons learned from its regulatory sandbox. As a reminder, the regulatory sandbox allows firms to test innovative products, services and business models in a live market environment, while ensuring that appropriate safeguards are in place. The report contains the FCA’s reflections on how the sandbox […]