Author Archives: Davinia Collins

PRA consults on CRR definition of default

The PRA has today published its consultation paper (CP) 17/18 on the definition of default.  The CP follows the European Banking Authority’s (EBA) Opinion on the implementation of the regulatory review of internal rating based (IRB) models. Background The EBA put together a list of regulatory products for the IRB framework review, with the “aim […]

PRA changes SII reporting format

On 26 July, the PRA published its policy statement (PS) 21/8 ‘Solvency II:  Changes to reporting format’.  The PS is a result of the PRA’s consultation paper (CP) 11/18, in which it proposed to change the reporting format for: national specific templates; internal model outputs; market risk sensitivities; and standard formula reporting for firms with […]

EIOPA publishes Q&As on application of IDD

The first set of Questions and Answers (Q&As) on the application of the Insurance Distribution Directive (IDD) were published today by the European Insurance and Occupational Pensions Authority (EIOPA).  Answers were given to questions on the requirements for the Product Oversight and Governance (POG) arrangements and for Insurance Based Investment Products (IBIPs).  Some of the Q&As […]

European Parliament looks into use of cryptocurrencies and blockchain by criminals for illegal activities

A paper prepared by Policy Department A at the request of the European Parliament’s Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance delves into the increasing use of cryptocurrencies by criminals for illegal activities such as money laundering, tax evasion and terrorist financing. Regulators are said to be very concerned about the use […]

PRA publishes Policy Statement on changes in insurance reporting requirements

On 6 July, the PRA provided feedback to responses to its Consultation Paper (CP) 2/18 “Changes in insurance reporting requirements” in Policy Statement (PS)16/18. CP2/18, published in January 2018, set out the PRA’s proposals to change the regulatory reporting requirements for SII firms (and mutuals). The proposals were developed by the PRA as part of […]

BoE sets out next steps for prudential regulation of banks: present and future

Vicky Saporta, Executive Director for Prudential Policy at the Bank of England delivered a keynote speech on 4 July at The Westminster Business Forum.  The speech focused on the impact of Basel III, which was finalised on 7 December 2017, and discussed the achievements of the reforms, its finalisation and what lies ahead. Achievements The […]

Changes in terminology. PRA updates its Supervisory Statements

The PRA updated a number of its Supervisory Statements (SSs) on 4 July 2018 to reflect changes in terminology, following the publication of policy statement 15/18 “Strengthening individual accountability in insurance: Extension of the Senior Managers and Certification Regime to insurers”. A list of those SSs can be found below. SS28/15 “Strengthening individual accountability in […]

PRA publishes policy statement on extension of the SM&CR to insurers

On 4 July 2018, the PRA published policy statement (PS)15/18 in response to Consultation Paper (CP) 14/17 ‘Strengthening individual accountability in insurance: extension of the Senior Managers and Certification Regime to insurers’ and CP 28/17 ‘Strengthening accountability: implementing the extension of the SM&CR to insurers and other amendments’.  As well as feedback to responses to […]

Insurance Europe’s SII conference

On 26 June, insurers, policymakers and regulators attended Insurance Europe’s Solvency II Conference.  The theme of the conference, which was held in Brussels, was ” Two years on and two reviews”. Michaela Koller, Insurance Europe director general opened the conference, which featured two panel debates. The first debate “Two years on – Solvency II in […]

Update from the Bank of England and The Payment Systems Regulator on new payment systems operator

In a joint press release issued today, the Bank of England (BoE) and The Payment Systems Regulator (PSR) announced that a New Payment Systems Operator (NPSO) had been created by the Payment System Operator Delivery Group (PSODG) who were charged with this task. The creation of the NPSO forms part of the PSR and BoE’s plan for consolidating […]

FCA launches PPI campaign with help from ‘Arnold Schwarzenegger’

The FCA has today launched its PPI campaign with a television advert in order to raise awareness of the two year deadline to make a complaint about payment protection insurance. The deadline, which has been introduced by the FCA in order to prompt people to check whether they had PPI and whether they want to make a complaint, ends […]

ESAs publish further Q&As on the Key Information Document for PRIIPs

Further guidance on the Key Information Document (KID) under PRIIPs was published by ESAs today in the form of questions and answers (Q&A). The Q&A includes additional questions and answers to those published on 4 July 2017 as well as diagrams to explain the risk and rewards calculations required to prepare the KID. The updated […]

FCA Regulation round – up for August

This month’s edition of Regulation round-up discusses: the consultation to extend SM&CR to all financial services firms; the Threshold Conditions Team taking enforcement action and cancelling the authorisations of 207 firms; FCA’s agenda and priorities for consumer credit; contingency planning for firms that do not have their MIFID II permissions in place by 3 January […]

FCA sets out its supervisory approach to PPI

The FCA has today announced that it will soon be launching a campaign to inform people of the 29 August 2019 deadline for making a complaint about PPI.  The campaign will contribute to the regulatory and supervisory work the FCA has already done around PPI and will continue to do. The campaign, which will be […]

Rise in complaints for PPI

This week FOS published its regular newsletter in which it discussed: a rise in consumer credit complaints; statistics on complaints received in the first quarter of 2017/2018; and an update on PPI and the FCA’s new rules and guidance FOS’ Annual Review The annual review published earlier in the summer by FOS identified that complaints about […]

FCA updates guidance to firms on applications and notifications under MiFID II

The FCA has updated its user guide to provide the following notifications: Ancillary activity exemptions Under MiFID II, firms who trade in commodity derivatives may be able to make use of an exemption from authorisation.  Firm will need to notify the FCA if they intend to rely on the exemption by completing a notification form.  […]

FCA consults on FAMR: implementation Part II and insistent clients

The FCA has today published its consultation paper (CP17/28) on implementing two of the recommendations made in the final report of the Financial Advice Market Review (FAMR), which was published in March 2016. FAMR was launched in 2015 by the FCA and HM Treasury (HMT) as a result of concerns that the market for financial advice in the […]

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 […]

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 […]

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 […]

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 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 […]

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 […]

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.  […]

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 […]

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 […]

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 […]

ESMA issues transparency calculations for non – equity instruments in readiness for MiFID2

MiFID 2 / MiFIR introduces transparency requirements for equity and non-equity instruments  and allows competent authorities to waive the obligation for market operators and investment firms operating a trading venue, to make public their pre trade information. Under RTS 2, competent authorities are to publish information on the liquidity classification of the different asset classes. The […]

EBA launches consultation on implementation of EBA Guidelines on methods for calculating contributions to DGSs

Article 13(3) of the Deposit Guarantee Schemes Directive (DGSD) requires the EBA to issue guidelines on methods for calculating DGS contributions by 3 July 2015, to ensure that the DGSD is consistently implemented in relation to risk based contributions.  The deadline to implement the guidelines was 31 May 2016, with the EBA to review the […]

WFE encouraged by Commission consultation on FinTech

The World Federation of Exchanges said it was encouraged by the Commission’s consultation on FinTech as it believed that it was important to get policy right in this area to avoid the rush to regulate. These comments came following the WFE’s response to the Commission’s consultation document “FinTech:  a more competitive and innovative European financial sector”, which was published […]

Implementing Regulation on standard forms for DRSPs under MiFID 2 published in the OJ

Commission Implementing Regulation (EU) 2017/1110 of 22 June 2017 laying down implementing technical standards regarding standard forms, templates and procedures for the authorisation of DRSPs and related notifications under MiFID 2 has been published today in the Official Journal of the European Union.

John Griffith – Jones leaving the FCA

John Griffith – Jones has confirmed that he will leave both the FCA and the PSR at the end of his term of office on 31 March 2018.