PRA has issued its final form Supervisory Statement on its expectations on “new and growing” non-systemic UK banks. The statement takes effect from its publication on 15 April, and follows PRA’s...
Author - Jonny Williams
Jonny Williams
PRA clarifies credit risk approach
PRA has clarified its approach to published EBA Guidelines and EU RTS in relation to credit risk following the end of the Brexit transition period. PRA had thought that the RTS on economic downturn would have been made...
PRA consults on Basel implementation
PRA is proposing a new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK. The consultation forms part of a wider exercise to transfer the text of existing rules...
CMA stops banks bundling current accounts with BBLs.
CMA has taken action to stop Clydesdale Bank from forcing small business customers to open a business current account with it in order to get a BBL. It said the practice breaches legal undertakings that 8 large banks...
FCA publishes unsecured credit market report
The FCA published the Woolard Review on the unsecured consumer credit market today. The report sets out 26 recommendations on how to make the market better in the future including: bringing BNPL into regulation more...
ASA action against misleading debt advice ads
The ASA has today published two rulings against companies making misleading claims, in paid-for search ads on their websites. National Direct Service and Fidelitas Group Limited separately had ads banned which:...
FCA publish latest coronavirus updates
The FCA has today published an update on mortgages, consumer credit, banking and payments during coronavirus. The main points can be summarised as follows: repossessions under mortgages cannot be undertaken without...
FCA publishes BBLS PAYG guidance
FCA has published its finalised guidance for firms that provide Pay as You Grow options under the BBLS. The guidance: notes that CONC 7 generally applies to set out the rules for fair treatment of customers in arrears...
FCA Publish consultation on CMC Charging
The FCA has published CP21/1: restricting CMC charges for financial services and products claims. The consultation looks to: address consumer harm by restricting the fees that a consumer can be charged for non-PPI...
FCA fines over treatment of customers in arrears
FCA has fined 3 entities in the Barclays group £26m for breaches of Principles 3 and 6 relating to failures in relation to their treatment of consumer credit customers who fell into arrears or were otherwise in...
FCA publish letter to Treasury Committee on Complaints Scheme Consultation
The FCA has published a copy of a letter it sent to the Treasury Committee addressing additional questions that were not raised at the evidence session as part of the complaints scheme consultation. The questions cover:...
Mainstream Consumer Credit Lenders portfolio letter published
The FCA has today published the letter it sent to the Board of Directors of mainstream Consumer Credit Lenders. The letter sets out the FCA’s: views of the risks these lenders pose to their consumers or the...
Treasury Select Committee letter to FOS
Rt Hon. Mel Stride MP has written to Caroline Wayman at FOS to ask her to produce evidence and answers to a number of questions. The questions focus on case handling and costs, complaints against FOS and FOS funding and...
Productive finance working group to be established
Treasury, the FCA and the BoE will be convening an industry working group to facilitate investment in productive finance (which is investment that expand productive capacity, furthers sustainable growth and makes an...
FCA: Covid support for consumer credit
The FCA yesterday published it’s next stage of enhanced support that firms must offer consumer credit customers facing payment difficulties as a result of the COVID-19 pandemic (FS20/18). If you’d like to...
MFN strikes again
The CMA has published an infringement decision against Compare The Market for imposing wide most favoured nation clauses on home insurance providers using its price comparison platform. The fine, in the sum of £17.9...
Memo of Understanding: FSCS and SFO
A memorandum of understanding between the Serious Fraud Office and the FSCS has been published. The MoU sets out the parties’ intentions to work together in the public interest to achieve appropriate outcomes in...
FCA Regulatory Round-up
The FCA has published its latest regulatory round up. The publications summarises the latest FCA publications, most of which we have already covered in FIN and also reminds firms that they should not use the FCA logo on...
FOS approach to CCA complaints
The FOS has published a website setting out its general approach to complaints about consumer credit products. The website sets out details of the types of complaints the FOS will consider, their approach to reviewing...
Final Breathing Space Regulations published
HM Treasury has today published the final version of the The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. Get in touch if you’d like...
FCA updates on regulatory returns
The FCA has confirmed that any regulatory returns due after 1 October 2020 must be submitted by their usual deadlines. Failing which, a late fee will be charged. This confirmation comes on the back of the Covid-19...
Covid-19 support update: mortgages
The FCA yesterday announced updated guidance for mortgage customer facing financial difficulties as a result of Covid-19. Under the extension, eligible customers will have until 31 March 2021 to apply for an initial...
Nikhil Rathi Speech
Nikhil Rathi, CEO of the FCA gave a speech yesterday at the Address to the City Regulators, Mansion House. The speech kicked off by focusing on the current environment. He confirmed that more than 4.4. million payment...
Default notices amendment regulations published
HM Treasury has published the Consumer Credit (Enforcement, Default and Termination Notices (Coronavirus) (Amendment) Regulations 2020 which come into force on 2nd December 2020 and firms must have implemented the...
Distance marketing of consumer financial services
The EC published a Commission Staff Working Document Evaluation of Directive 2002/65/EC concerning the distance marketing of consumer financial services. The evaluation can be summarised at a high level as follows: The...
PRA Statement on Covid Guidance
The PRA has reiterated its position on Covid and suggested that firms continue to monitor GOV.UK/coronavirus for guidance on: who should work from home, ensuring safe workplaces; use of face coverings (inc for branch...
EC report on CCD
The European Commission published a report yesterday to the European Parliament and Council of the EU on the implementation of CCD. The key outcomes of the evaluation fall into the following headings: Effectiveness...
Pay.UK: Consumer Protection Landscape
Pay.UK published a paper yesterday providing an overview of the UK consumer protection landscape relating to disputed payment transactions. The paper sets out the payments landscape, the consumer protection landscape...
Delay to ESEF standard reporting
The FCA has published information about changes to the way issuers file their annual financial reports to the FCA for publication on the National Storage Mechanism (supporting implementation of the European Single...
Further Consumer Credit Covid-19 measures announced
The FCA today published a number of updated guidance documents for consumer credit firms who have customers still facing financial difficulties due to COVID-19. The publications sets out details of the enhanced support...
Feedback to CP20/18 on eIDAS published
The FCA today published PS20/13: Amendments to the open banking identification requirements (eIDAS) certificate). This policy statement sets out the feedback to CP20/18 and sets out the near final rules amending...
Enhanced Covid support for mortgage customers published
Today, the FCA published draft guidance extending the payment deferral support for mortgage customers up to 31 January 2021. The FCA are expecting comments from stakeholders by 5 November 2020 by emailing...
FCA publish Call for Input: Unsecured Credit Market
This morning, the FCA has published a Call for Input: Review into change and innovation in the unsecured credit market (The Woolard Review). The call for input revolves around, and asks questions specific to, the...
Breathing Space Consultation Launched
The FCA has published its consultation on the handbook changes required as a result of implementation of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales)...
PRA consults on CRD V
PRA is consulting on further proposed changes to its rules, supervisory statements and statements of policy to implement elements of CRD V, and also to make changes to the UK framework to take account of parts of CRR II...
The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020
A draft of the Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 was published on 15 October 2020.
Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020
A draft of the Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 was published on 15 October 2020.
Consultation response on UK’s Prudential Regime
HM Treasury published the outcome to its consultation on updating the UK’s Prudential Regime to implement CRDV before the end of the Transition Period. The paper outlines the responses received and sets out the...
Climate-related financial risks speech
Mr Kevin J Stiroh, co-chair of the Task Force on Climate-related Financial Risks of the Basel Committee on Banking Supervision and Executive Vice President of the Federal Bank of New York gave a speech on 14 October...
BRRD II Consultation Response Published
The consultation response on the transposition of the Bank Recovery and Resolution Directive II was published on 15 October. The consultation response document summarises the responses received from the consultation...
Lloyds report: Building simpler Insurance products
Lloyds has published a report today – Building simpler insurance products to better protect customers which sets out a number of ways the global insurance industry can remove complexity to provide enhanced...
Access to Cash: Call for Evidence launched
HM Treasury today published a call for evidence setting out the Government’s legislative aims for protecting access to cash in the UK. The paper sets out that the Government is aiming to maintain a sustainable...
Current accounts for expats post-Brexit
The Treasury Committee recently wrote to the FCA seeking clarification on the notice period that should be given to current account customers who are being told their accounts will be closed once the transition period...
BoE updates timelines for ISO 20022 migration
The BoE published an update today setting out the revised timetable for ISO 20022 migration: Phase 2 (TS2): Implementation date next year has been pushed back from April to June. From June 2022, BoE will require all...
Speech: FCA Regulation of Consumer Credit
Nisha Arora, Director of Consumer and Retail Policy at the FCA gave a speech today at the online Finance and Leasing Association Conference. The speech reminded the audience about the 4 outcomes the FCA wants to see for...
FSB Roadmap to enhance cross-border payments
The FSB has today published a roadmap which has been delivered to G20 Finance Ministers and Central Bank Governors in advance of their meeting tomorrow. The roadmap sets out the FSB’s opinion on how the key...
Mortgage Market Disruptions
The FCA today published Occasional Paper No. 57 on mortgage market disruptions. The paper uses data to document the trends associated with COVID-19 and compares them to the financial crisis of 2007-09. The summary...
Brexit Dear CEO Letter
The PRA and the FCA have written to firms preparing for the end of the transition period. The letter urges firms to continue their preparatory work to ensure they, and their clients, are ready for a range of scenarios...
FCA sets mortgage consumer outcome expectations
Jonathan Davidson, speaking at FCA’s webinar on mortgage forbearance, discussed what FCA is seeing the mortgage markets and reiterated its expectations on firms. His key takeaways were: FCA sees an increasing...
New Debt Letter Rules
HM Treasury has announced this morning that the current form of debt letters, including default notices will be changed from December 2020. The changes are expected to include making the notices more user friendly, with...
Another breach of the SME Banking Undertakings
The CMA has published details of another firm breaching the SME Banking Undertakings 2002. Between December 2019 and August 2020, AIB NI had failed to inform staff that SME customers were not required to open or...
Finalised Guidance: Cancellations and refunds
Following our report on the draft guidance published on 31 July, the FCA has published its finalised guidance on its expectations for insurance and card providers helping consumers claim money back. The guidance which...
PRA consults on IRB approach to UK mortgage risk weights
PRA is consulting on rule changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. A by-product of the proposals would also narrow the differentials between IRB and...
Overdrafts and Coronavirus: Finalised FCA Guidance
Further to the draft guidance which we wrote about on the 16th, the FCA has today published its finalised guidance which is to take effect from 2nd October. The guidance sets out the FCA’s expectation on how firms...
Consumer Credit and Coronavirus: Final FCA Guidance
Further to the draft guidance which we wrote about on the 16th, the FCA has today published its finalised guidance which is to take effect from 2nd October. The guidance, which covers credit cards, loans, rent to own...
CMA letter re PPI Order breaches
The CMA has written to Cardiff Pinnacle about two breaches of the PPI Order: breach 1: 77 customers did not receive their Annual Reviews on time; and breach 2: 167 customers did not receive accurate information in their...
HMT updates on business support schemes
HM Treasury has published its latest statistics on the amount of businesses that are being supported through government backed support schemes: CBILS – £15.45bn between 66,585 facilities CLBILS – £3.84bn...
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;...
EBA phases out repayment moratoria guidelines
EBA has decided to go ahead with its plan to phase out its Guidelines on legislative and non-legislative payment moratoria from the end of September. It says the Guidelines have provided the necessary flexibility, and...
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...
EBA wants clarity on aspects of “credit institution” definition
EBA has published an Opinion noting its views that several aspects of the current definition of “credit institution” could benefit from clarification – not least the notions of “deposit”...
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...
UK Finance updates LIBOR guide for businesses
UK Finance has published a guide for business customers on the discontinuation of LIBOR. The guide explains: the anticipated discontinuation of LIBOR and why LIBOR is being discontinued; and what customers should be...
Chair announced for Unsecured Credit Market review
The FCA has today announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market. The Review, set to be published by early 2021, will look at regulation’s role in better...
Overdrafts and Coronavirus: Additional Guidance for firms
The FCA has published the additional guidance for firms on the next stage of help for consumers. The guidance hopes to ensure that firms provide tailored support to consumers of arranged overdrafts who continue to face...
Consumer Credit and Coronavirus (Additional Guidance for Firms)
The FCA has published the additional guidance for consumer credit firms on the next stage of help for consumers. The guidance covers credit cards, loans, rent to own, BNPL, pawnbroking, motor finance and HCST. The FCA...
Pay.UK consultation update (Next Generation Standard)
Pay.UK has published an update on it’s consultation on the ‘Next Generation Standard for UK Retail Payments’. The update includes details on Pay.UK’s recommendations for the adoption of ISO 20022...
PSR publishes interim report on card acquiring services
PSR has published its interim report with provisional findings on the supply of card-acquiring services. It says merchants should shop around to get a better deal from their provider or switch to a new one, but that...
FCA finalises access to cash guidance
FCA has published its finalised guidance on what firms should do if considering closing branches or ATMs, or starting to charge for ATM use. The guidance makes it clear firms must keep FCA informed of any relevant...
FCA confirms new mortgages guidance
FCA has finalised its additional guidance to firms in the mortgage markets, setting out how they should provide tailored support to borrowers who have had payment deferrals but continue to struggle, and to those whose...
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...
Breathing Space: Updated Regulations
A new version of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 has been published today. This version of the Regulations have been laid...
Bundling warning from the CMA
The CMA has published a letter which highlights an issue related to implementation of the Bounce Back Loan Scheme at pace. In 2002, a number of banks entered into undertakings with the CMA which confirmed that they...
EVENT: In Conversation on Debt
Join us on Thursday 10 September 2020 at 10am for our next Retail Banking Mixer – In Conversation. This webinar will focus on debt in the retail banking sector (including breathing space) and you will have the...
UK Finance backs FCA mortgage plans
UK Finance is supportive of FCA’s plans for additional guidance to firms on mortgages and COVID-19. It says the industry has always said it is better fora customer who can afford payments to continue to make...
COVID 19: Mortgage Consultation
The FCA has published its supplementary guidance note which sets out its expectations of firms dealing with mortgage customers who: are unable to resume payments after 2 payment deferrals; have benefitted from an...
ECB publishes report on ICAAP
The ECB today published its report on banks’ ICAAP practices. The report summarises the results of the ECB’s analysis of ICAAP practices within samples provided by 37 banks. It further highlights gaps...
PRA Letter re Fixed Rate Lending Guidelines
The PRA has published a letter which Mel Beaman has sent to the CEOs of non-systemic building societies clarifying the fixed rate lending guidelines. The letter, which follows a request from the Building Societies...
BoE released updated financial stability information
BoE has published: a summary of the latest meeting of the Financial Policy Committee, which looked at how the UK financial system has performed during the pandemic. It notes how the system has met the initial surge in...
Basel consults on operational risk and resilience
The Basel Committee is consulting on proposals for principles for operational resilience and updates to its principles for the sound management of operational risk. The updates will reflect the growth of technology...
FCA publishes high cost credit review
FCA has published the findings of a review into relending by firms that offer high cost credit. It carried out the review before the current pandemic. The results highlight concerns about poor practices by some firms...
Committee highlights Breathing Space regulations’ importance
The House of Lords Secondary Legislation Scrutiny Committee has published its report in which it discussed the Breathing Space regulations. It drew attention to the importance of the regulations, and recommended that...
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 debt advice levy rates
FCA is consulting on additional funding by way of debt levy advice rates. The DWP has told it that an additional £14.2m for MaPS to provide debt advice in England in 2020/21. Treasury has also asked for a further £2...
PSR encourages innovation and competition in payments
Genevieve Marjoribanks, head of policy at the PSR, says the PSR is looking at what consumer protections are available and whether they adequately protect those who use bank transfers to make payments. The PSR is...
FCA speaks on challenges of LIBOR transition
Edwin Schooling Matter, FCA’s director of markets and wholesale policy, has spoken at ISDA’s event on LIBOR transition. He stressed that the time to act is now, as the next 4-6 months are critical. ISDA is...
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...
FCA calls for views on consumer treatment at end of deferral period
FCA has published a call for input, seeking views on what should happen to mortgage and consumer credit customers reaching the end of a second payment deferral (these will be ending from September onwards). It also asks...
EVENT: Open Banking Webinar
Our next retail banking mixer by webinar will focus on open banking. Our session will include a brief introduction to the topics followed by a discussion that you’d be welcome to join in with: Open banking from a...
BBLS unfair relationships exemption confirmed in law
The Business and Planning Act 2020 got Royal Assent on 20 July. Among wider provisions designed to address issued related to Covid-19, s12 of the Act provides that no order under s140B of the Consumer Credit Act...
Government extends 3rd country benchmark transition
Treasury has published a policy paper explaining why it is extending the transitional period for third country benchmarks to 31 December 2025. The extension will allow UK supervised entities to carry on using these...
PRA consults on approach to non-systemic banks
PRA is consulting on its approach to new and growing, non-systemic banks. It is making 2 new proposals, and taking the opportunity to clarify its position in other areas. The new proposals are: changes to the...
FCA publishes Intergenerational differences summary
The FCA has today published feedback statement FS20/12 summarising the responses and next steps following discussion paper DP19/2 on intergenerational differences. The paper summarises the average financial...
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...
Treasury consults on CRDV, prudential regime and Brexit
Treasury is consulting on the UK’s approach to implementation of those parts of CRD V that fall to be implemented into national law by 28 December. The Government has long said that it will transpose all EU...
Draft Debt Respite Scheme Regulations
Following the announcement in June last year, a draft of the new Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium (England and Wales) Regulations 2020 were published yesterday. The...
FCA clarifies latest COVID-19 rules for motor finance, BNPL, RTO, HCSTC & Pawnbroking
Following the consultation at the start of July, the FCA has today clarified the latest rules for how firms should deal with motor finance, BNPL, TRO and pawnbroking customers coming to the end of payment freezes. These...
BoE speech on LIBOR: Entering the Endgame
On 13 July Andrew Bailey, Governor of the Bank of England (“BoE“), made a speech on the continued importance of the transition away from LIBOR. The continued importance of the transition In Mr Bailey’s...
CMA Update on Loyalty Penalty
Following its last publication in January, the CMA has once again published an update on their investigation into the loyalty penalty, noting that its progress has been significantly impacted by COVID-19. Mortgages The...