FIN.

Author - Jonny Williams

PRA consults on pre-Brexit changes

BoE and PRA have issued a consultation on changes to its rules before the end of the transition period.  The paper covers: an update on the use of BoE and PRA’s intended use of the temporary transitional power;...

PRA publishes proprietary trading review

PRA has published a report required by law that looks at the extent of proprietary trading by deposit takers and dual-authorised investment firms.  The report looks at: the extent of trading; the risks trading poses to...

FCA sets up LIBOR transition page

FCA has created a new page on its website, telling firms what they need to know about LIBOR transition.  The page focuses on balance sheet exposure and how affected firms can move their LIBOR-linked contracts to...

BoE updates on LIBOR transition

The Bank of England has updated its website on the transition from LIBOR, and what it is doing to catalyse using SONIA as the primary interest rate benchmark in sterling markets. The Working Group on Sterling Risk-Free...

FCA recognises LSB update

FCA has confirmed it is maintaining its formal recognition for the LSB’s Standards of Lending Practice for business customers, and that the recognition now covers the recent updates to take account of CBILS and...

FCA consults on Remuneration Code

FCA is consulting on proposals to update its Dual-Regulated firms Remuneration Code and guidance as part of CRD V implementation. The consultation largely follows PRA’s and proposes: changes to SYSC 19D in respect...

PRA consults on CRD V

PRA is consulting on changes to its rules, supervisory statements and statements of policy needed to implement parts of CRD V.  This consultation is the first part of PRA’s preparation for implementation, and it...

Treasury gives CRR guidance

Treasury has published guidance on how CRR2 applies during the transition period.  It has already made regulations under the Withdrawal Act to “onshore” CRR as amended by CRR2 after the end of the transition...

EBA clarified COVID-19 prudential measures

EBA has published a report clarifying how certain parts of prudential regulation apply in the light of COVID-19. It says several issues have been drawn to its attention in relation to the effects of payment moratoria...

FCA confirms open-access trading extension

FCA has confirmed that the agreed extension to the deadline for applying the open access rules of MiFIR to trading venues and CCPs that offer trading and clearing of exchange-traded derivatives will apply equally in the...

PRA comments on CRR “quick fix”

PRA has made a statement on some aspects of the EU’s “quick fix” to the CRR. The statement notes: PRA’s support (back in 2017) of IFRS 9 transitional arrangements, which the quick fix now...

FCA imposes requirements on Wirecard

FCA has imposed a number of requirements on Wirecard, an authorised EMI which is also subject to the PSRs. As a result of ongoing investigations and actions in Germany involving Wirecard’s parent company, FCA...

EU adopts Covid-19 CRR changes

The EU has adopted temporary rules amending CRR 2 to maximise the ability of banks to lend money during the Covid-19 crisis. The changes: change the minimum capital banks need to hold for NPLs – in particular by...

Treasury consults on BRRD2 implementation

Treasury is consulting on the UK implementation of BRRD2. The implementation date is 28 December 2020, so before the end of the Transitional Period.  Treasury proposes to implement all those parts of the Directive that...

EBA extends payment moratoria deadline

EBA will extend the application date of its guidelines on payment moratoria to 30 September, as economies gradually re-open. It says the extension will ensure that adequate treatment for borrowers is available across...

EP votes through Covid-19 lending changes

The European Parliament has approved changes to the CRR to encourage banks to lend to customers affected by Covid-19. Among other things, the changes: extend the transitional arrangements for IFRS 9 by 2 years and...

ESRB gives guidance on distributions

The BoE and PRA have acknowledged the ESRB recommendations on the restriction of distributions during Covid-19.  They note the recommendation will apply to the UK throughout the Transition period, and also note that...

Basel publishes new FAQs

The Basel Committee has published a set of new FAQs that it has agreed to add to the framework. The key issues covered are the definition of capital, market risk, counterparty credit risk, liquidity and operational risk.

PRA publishes FAQs on property valuations

PRA has published a set of Q&A on CRR requirements for property valuations during the disruption caused by Covid-19.  Firms have been asking questions on how they shoudl deal with the difficulties in conducting...

EBA publishes loan origination guidelines

EBA has published a set of guidelines on loan origination standards.  Its aim is to bring together prudential standards, consumer protection obligations, AML and ESG considerations within one set of guidance.  The...

CMA gets £47m refunds on overdraft charges

CMA has announced that over the past 2 years it has secured more than £47m of refunds for customers in respect of overdrafts where banks failed properly to warn them about unarranged overdraft charges. It has now taken...

CRR amending Regulation progresses

The European Parliament is to consider the proposed Regulation amending the CRR in its plenary session on 17-18 June.  Meanwhile, the ECB has published its opinion on the proposals, which are aimed at addressing some of...

EBF publishes cross-border payment guidance

EBF has published guidance for payment service providers in the form of examples and FAQs on implementation of the Cross-Border Payments Regulation.  The guidance comes as EBF members have raised queries about charges...

Regulator Covid-19 update 7 May

On 7 May: PRA announced details of its plans to support firms and enable them and the PRA to focus on the highest priority work: The Climate Biennial Exploratory Scenario is postponed until at least mid-2021; full...

FCA updates on CBILS and BBLS expectations

On 4 May: FCA updated its statement about the CBILS and BBLS confirming that its position that lenders who comply with CBILS do not also have to comply with  the creditworthiness rules in CONC 5.2A.4-34 where the...

Regulator Covid-19 update 28 April

On 28 April: FCA updated its guidance on changes to regulatory reporting; and The European Commission has announced a wide-ranging banking package to help banks to lend to support the economy.  The package includes:...

Regulator Covid-19 Update 27 April

On 27 April: FCA has clarified the relationship between its rules and the UK’s CBILS and Bounce Back Loan schemes.  It notes that, pending the roll-out of the BBL scheme, which, from 4 May,  will give small...

Regulator Covid-19 update 23 April

On 23 April: PRA followed up on its letter to insurers, noting that all insurers should consider carefully the previous letter and guidance on use of unrated assets and assessments of creditworthiness, and the...

PRA publishes buffer usage FAQs

PRA has published a set of FAQs on using liquidity and capital buffers in response to the issues caused by Covid-19. The FAQs address what the buffers are, how banks can use them and the implications of them doing so...

PRA publishes Business Plan

PRA has published its Business Plan for 2020/21.  Like FCA, PRA comments that Covid-19 has made it reassess its plans and reprioritise its work, and it will continue to assess the effects of the outbreak on its actions...

PRA consults on fees

PRA has published its consultation on fees and levies for 2020/21. The consultation covers: the fee rates to meet the Annual Funding Requirement, which has increased by 8% from the current year, primarily because of...

PSR publishes APP scam thoughts

The PSR has published a summary of a conference call between key players in the payments industry to discuss the progress being made in tackling APP scams. It decided to go ahead with the call, not least as Covid-19 has...

Regulator Covid-19 Update 6 April

On 6 April, the regulators further update their Covid-19 measures: FCA updated its expectations on solo-regulated firms in respect of the SMCR; FCA published a summary of queries it has received on client assets...

FLA gets firms access to CBIL Scheme

FLA has successfully negotiated with the Government to get access for independent and non-bank lenders to the Coronavirus Business Interruption Loan Scheme. It says this was critical to allow firms to continue to run...

Regulator Covid-19 update 1 April

Further updates from the regulators, in addition to FCA’s Dear CEO letter to retail investment firms, include: PRA welcoming the agreement by the boards of large UK banks to suspend dividends and buybacks on...

Regulator Covid-19 Update 25 March

On 25 March: Treasury, BoE and FCA have written to the CEOs of UK banks on Covid-19 and bank lending.  The letter explains how the Covid Corporate Financing Facility will help firms of investment grade or equivalent...

BoE looks at open platform for SME finance

BoE has published its views on developing an open platform for SME finance. It says that a global identity standard and safe information sharing could harness novel data sources and advanced analytics to provide SMEs...

PRA writes to chairs on board diversity

PRA has written to the chairs of dual regulated firms reinforcing the importance it places on diversity within boards for improving decision making and providing effective challenge. It reminds firms it expects them to...

PRA publishes Pillar 2 policy statement

PRA has published its feedback to its consultation on updating the Pillar 2 capital framework in respect of capital buffers, and updated Statements of Policy and Supervisory Statements to include the changes.  The...

UK regulators announce data reforms

The FCA has released its new Data Strategy which outlines plans to develop its data capabilities through a renewed focus on the use of advanced analytics and automation techniques.  The FCA hopes this strategy, an...

FCA calls for input on open finance

FCA has launched a Call for Input on Open Finance. The concept builds on the principles of open banking and extends it to a wider range of products.  FCA has a vision that open finance will allow consumers and...

Basel Framework published

BIS has published a consolidated version of the standards prepared by the Basel Committee on Banking Supervision. The resulting Basel Framework pulls together the 14 standards and also includes current, historic and...

EP publishes position on NPLs

The European Parliament has published its draft report on the proposal for a Directive on credit servicers, credit purchasers and the recovery of collateral.  The proposal is intended to make sales of non-performing...

FCA endorses SEC no action letter

The FCA has endorsed SEC’s extension of its staff ‘no-action letter’ until 3 July 2023.  The no-action letter addresses potential conflicts between US regulation and MiFID 2. MiFID 2 permits investment...

FCA prosecutes for document destruction

FCA has brought its first prosecution for a destruction of documents offence under FSMA.  It has prosecuted Konstantin Vishnyak, who it was investigating for suspected insider dealing, for destroying documents which he...

BSB publishes Consumer Framework

BSB has published its Consumer Framework designed to show what good banking outcomes look like to consumers.  Following consultation feedback, the BSB has made some adjustments to its draft principles and examples of...