Author Archives: Roseyna Jahangir
PRA publishes Policy Statement and Supervisory Statement on Algorithmic Trading
The PRA has issued PS12/18 and SS5/18, which sets out the PRA’s expectations of a firm’s risk management and governance of algorithmic trading. The SS applies to all algorithmic trading activities of a firm, including in respect of unregulated financial instruments such as spot foreign exchange. It should be read in conjunction with other applicable requirements, including […]
EBA consults on PSD2 RTS Guidelines for ASPSPs
The EBA has published a consultation on draft Guidelines supplementing the Regulatory Technical Standards on strong customer authentication published in the OJ in March 2018, and applicable from September 2019. Article 33(6) of the RTS set out the conditions that must be met when an Account Servicing Payment Service Provider (ASPSP) wishes to provide access […]
FCA’s high-cost credit review published
The FCA has concluded its review into high-cost credit, and based on issues it found has published two consultations: CP18/12 on rent-to-own, home-collected credit, catalogue credit and store cards, and alternatives to high-cost credit, and CP18/13 on arranged and unarranged overdrafts. In the rent-to-own category, which covers hire-purchase and condition sale agreements, it found that […]
FOS Annual Review published
The FOS has published its Annual Review for 2017/2018. Many of the complaints statistics highlight products that are the subject of ongoing regulatory scrutiny and activity: the FOS notes significant increases in complaints in home credit, hiring, leasing and renting, and payday loans: putting to one side PPI, one in four new complaints related to […]
FCA publishes Final Guidance relating to Part VII insurance business transfers
The FCA has published FG18/4: The FCA’s approach to the review of Part VII insurance business transfers, which sets out the FCA’s key considerations and general expectations when reviewing a Part VII transfer application. The areas covered by the guidance include: factors and information requirements firms should consider before contacting the FCA documents that firms […]
FCA develops its focus on improving culture in financial services
The FCA has published an event summary describing output from a conference it held in March on Transforming Culture. Following the conference, and the publication of its Discussion Paper on Transforming Culture in Financial Services, the FCA has identified four key thematic lines of enquiry around which to focus ongoing engagement with the financial services […]
FCA publishes Handbook updates including IDD instrument
The FCA has published Handbook Notice No. 55, setting out: the Financial Services Compensation Scheme (Funding Review) Instrument 2018, the Handbook Administration (Data Protection) Instrument 2018, the Insurance Distribution Directive Instrument 2018, and the Supervision Manual (Reporting No 8) Instrument 2018. The Data Protection Instrument sets out administrative changes arising from the implementation of GDPR, […]
FCA discusses mortgage enforcement and competition issues in Building Societies speech
The FCA’s Director of Supervision, Jonathan Davidson, has delivered a talk on Building Societies and the Future of Retail Banking at the Building Societies annual conference. In his speech, Jonathan raised the issue of whether the historically low repossession rates was actually a concerning indication: whether forbearance should be offered in cases where the borrower […]
PRA publishes policy statement on financial management for insurers
Following its consultation on effective financial management and planning for insurance firms and groups, the PRA has now published its final policy statement PS10/18, and Supervisory Statement SS4/18, ‘Financial management and planning by insurers’. The Supervisory Statement (which has been modified in the light of responses to the consultation) includes a framework for the: development […]
FinTech industry associations publish PSD2 voluntary guidelines
UK Finance, the Financial Data and Technology Association, the Electronic Money Association and techUK have jointly published voluntary guidelines. The guidelines are directed at account servicing payment service providers, account information and payment initiation services and technical service providers. The guidelines seek to increase customer protection in relation to ‘screen scraping’, including by promoting the […]
Bank of England announces consolidation of three UK Payment System Operators
The Bank of England has announced that the New Payment System Operator Limited (NPSO) has taken over responsibility for the Bacs and Faster Payment retail payment systems. This consolidation is the result of work by both the Bank of England and the Payment Systems Regulator. The objective is to develop the capability and capacity of […]
FCA publishes new FSCS funding rules
Following its consultation in 2017, the FCA has now published its final rules on reformed FSCS funding. These rules will take effect from April 2019. Additionally the FCA has opened a consultation on draft rules relating to Professional Indemnity Insurance requirements for Personal Investment Firms, CP 18/11. The proposed rules will require that policies do […]
PRA publishes model risk management principles for stress testing
PRA has published a policy and supervisory statement setting out its expectation of the model risk management practices firms should adopt when using stress test models. It expects firms to apply the principles proportionately, with the larger firms applying them in full. The principles require banks: to have an established definition of a model, and […]
EC VP speech highlights risks arising from Brexit
In a recent speech, Vice-President of the EC, Valdis Dombrovskis, warned of the consequences arising from the fact that the transition period agreed at a European level was part of the overall future withdrawal agreement. Therefore, if finalisation of the withdrawal agreement was compromised due to issues such as the Irish border and governance of […]
Andrew Bailey of the FCA discusses open financial markets
The FCA has published a speech by its Chief Executive, Andrew Bailey, in which he spoke about open markets through the prism of Brexit, including the prospects and reasons for a transition period and what the steady-state future could look like. Bailey highlighted the paramount need for financial stability and argued that this would be […]
Claims Management regulations published for consultation
As part of the proposed process of transferring the regulation of Claims Management Companies to the FCA, HM Treasury is consulting on draft regulations that will form part of a final statutory instrument creating a new framework of regulation for Claims Management Companies (CMCs). The draft regulations set out the proposed permissions that CMCs will […]
BEIS publishes Green Paper on modernising consumer markets
The Department for Business, Energy and Industrial Strategy is consulting on proposals which, among other issues, seek to to improve the consumer experience in regulated markets for utilities, telecommunications and financial services and to ensure consumers buying and selling online benefit from new technology and business models, and have appropriate protection for their personal data. […]
PRA publishes ‘Dear CEO’ letter on capital extractions by insurance firms in run-off
The PRA has published a ‘Dear CEO‘ letter which addresses capital extraction requests from insurance firms in run-off, and firms not supplying sufficient information to the PRA. It reminds firms of the need to closely consider Supervisory Statement 4/14 on capital extractions, and sets out illustrations of the types of information they expect to see […]
ESAs report on key risks for H2 2017
The Joint Committee of the European Supervisory Authorities has published its report for the second half of 2017. This report highlights the following potential sources of instability: repricing of risk premia uncertainties regarding the terms of Britain’s exit from the EU; cyber attacks; and climate change. The report urges firms and supervisory authorities to seek […]
FCA and PRA publish business plans
The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an area of concern for the forthcoming year, as well as ongoing programmes such as Brexit, and firms’ culture and governance (including […]
CMA to continue insurance price comparison website investigation
The CMA has confirmed that it has decided to continue the investigation into a price comparison website’s (PCW) use of certain ‘most favoured nation’ clauses in its contracts with home insurance providers. In the context of PCWs, ‘most favoured nation’ clauses require the provider of a product that wishes to offer their product on the […]
HM Treasury launches first Fintech Sector Strategy paper
The Treasury has published its first Fintech Sector Strategy, setting out the government’s proposals to secure the UK’s place as a preferred location to start and grow a fintech business. The paper announces a number of measures, including: a Cryptoassets Task Force will be established by HM Treasury, the Bank of England and the FCA, […]
Council of the EU approves EU-US insurance agreement
Following the announcement in September last year that the EU and the USA signed a bilateral agreement on insurance and reinsurance prudential measures, the Council of the EU has now formally adopted a decision to conclude this agreement. This agreement can now provide legal certainty to EU and US insurers in the application of regulatory […]
Complaints Commissioner concerned about information sharing between FOS and FCA
In a recent report the Complaints Commissioner expressed concern about the absence of published information about how and in what circumstances information about live ombudsman cases may be shared between the FOS and the FCA. The complaint alleged that the FCA illegally influenced the FOS in its handling of complaints against a firm represented by […]
BoE outlines 2018 stress test
The BoE has published the scenario against which it will stress-test banks in 2018. As confirmed by the FPC, the basis of the test will be the same as the 2017 version, but the hurdles will evolve such that: banks will be held to higher standards the more systemically important they are; hurdle rates will […]
ABI writes to FCA on Brexit issues
The ABI has written to Andrew Bailey highlighting the issues its members are facing in meeting their duty to treat customers fairly, in the context of communications with customers over Brexit. The letter welcomes the December communications on authorisation of EEA branches of insurers, and says members will assume this will happen, even though it […]
FCA Discussion Paper on transforming culture in financial services
As part of its ongoing work on culture and governance, the FCA has published a discussion paper, comprising a series of essays from academics and industry thought leaders covering: what a ‘good’ culture might look like; the role of regulation and regulators; how firms might go beyond incentives; and how to change behaviour for the […]
European Commission publishes plans to accelerate delivery of Capital Markets Union
The Commission has published a new package of proposals that it wishes to see adopted by mid-2019. The proposals will ‘put in place all building blocks of the Capital Markets Union’, and comprise: legislative proposals on facilitating cross-border distribution of investment funds, to boost the cross-border market for investment funds; a legislative proposal on covered […]
EU Council confirms IDD delay
Following the publication of the provisional Directive text postponing the date of application of IDD to 1 October 2018, the Council has now confirmed that the directive has been adopted, and applies with retroactive effect from 23 February 2018.
FSB publishes final version of supplementary guidance on sound compensation practices
The Financial Stability Board (FSB) has published the final version of its Supplementary Guidance to the FSB Principles and Standards on Sound Compensation Practices. It consulted upon this guidance in June 2017, as part of its work on misconduct risk management. The Guidance is aimed at ‘significant’ firms and supervisors, and provides a framework to […]
FCA updates on consumer credit landscape
Andrew Bailey has spoken to the FLA on the current consumer credit landscape. He noted the constant fall in the real cost of debt which has supported the rise in household borrowing, and the growth in consumer credit particularly among the young. FCA has carried out several pieces of research to determine who is driving the growth […]
FCA consults on implementation of EU Benchmarks Regulation
FCA has published a consultation paper on Handbook changes necessary as a result of the EU Benchmarks Regulation and the UK Benchmarks Regulations 2018. Specifically, it plans changes to DEPP and EG FCA proposes to apply its existing policy and procedure to the exercise of its enforcement powers under the Benchmarks Regulation. FCA also proposes […]
EU Blockchain Observatory and Forum launched
The European Commission has announced the launch of an EU Blockchain Observatory and Forum. This aims to: highlight key developments in blockchain technology; promote European participants; and reinforce European engagement with key stakeholders. It is mandated to gather information, monitor and analyse trends, address challenges and explore blockchains’ socioeconomic potential, by facilitating cross border cooperation […]
EIOPA consults on adaptation of requirements for insurance intermediaries’ PII and financial capacity
The Insurance Distribution Directive sets out in Article 10 base amounts of PII and minimum financial cover required by insurance and reinsurance intermediaries. It also requires EIOPA to review the prescribed levels of cover by 31 December 2017 and every five years thereafter, in order to take account of changes in the European index of […]
EBA writes to Commission on authentication RTS
The EBA has written to the European Commission following the Commission’s adoption of the RTS on strong customer authentication under PSD2. The EBA welcomes the adoption, appreciates the note the Commission took of some of EBA’s concerns and says it appreciates the Commission’s decision not to take note of some others. However, it questions why […]
Commission finalises own funds adjustment RTS
The European Commission has finalised the RTS for procedures excluding transactions with NFCs established in third countries for the purposes of the own funds requirement for credit valuation adjustment risk. The RTS require institutions to verify the status of the counterparty at trade inception and thereafter annually, unless there is any reason to believe the […]
EIOPA translates official IBIPs Guidelines
The European Insurance and Occupational Pensions Authority (EIOPA) has published official translations of guidelines under the IDD relating to insurance-based investment products (IBIPs) which incorporate a structure that makes it difficult for the customer to understand the risks involved. In so doing, the guidelines seek to minimise risks of consumer detriment arising from mis-sold IBIPs. […]
Payment Systems Regulator explains focus on UK’s ATM network
The Payment Systems Regulator (PSR) has published a letter sent by it to the Chair of the Treasury Select Committee regarding the UK’s ATM network. The letter sets out the PSR’s continued commitment to ensuring access to ‘free to use’ ATMs, and describes its ongoing program of work on the ATMs network. The letter also […]
Treasury publishes response to IDD consultation
In February 2017, the Treasury opened its consultation on the UK transposition of the IDD. The Treasury has now published the results of that consultation, and also the draft statutory instrument. The consultation response document indicates that the draft statutory instrument will be laid before Parliament ‘in due course’. It also notes that the proposal […]
FCA sends ‘Dear CEO’ letter following CFD market review
Following its review of the contracts for difference (CFD) market, the FCA has written to the CEOs of providers and distributors of CFDs to highlight specific concerns. The letter warns that there are areas of serious concern regarding the following areas: target market identification, and alignment to the characteristics of the product; communication, oversight and […]
FCA updates Enforcement Guide as PRIIPs Regulation comes into force
The FCA has published a legislative instrument that amends its Enforcement Guide to reflect the implementation of the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs Regulation). The changes to the Enforcement Guide outline the FCA’s approach to enforcement of the PRIIPs Regulation, and came into force on 4 January 2018.
Increase in limit on Building Societies’ maximum currency transaction size
Treasury has published the Building Societies (Restricted Transactions) (Amendment to the Limit on the Trade in Currencies) Order 2017. This Order increases the limit set out in section 9A of the Building Societies Act 1997 at which building societies can convert currency from £100,000 to £3 million, in order to better reflect the nature and […]
ESMA consults on draft Securitisation Regulation technical standards
The European Securities and Markets Authority has published three consultation papers on draft technical standards implementing the Securitisation Regulation that is expected to be published by the end of this year. The matters addressed by the draft technical standards include requirements for the content and format of underlying exposures and investor report templates, and operational […]
Digital comparison tools: government responds to CMA market study
Earlier this year, the Competition and Markets Authority (CMA) published the results of a market study into the use of digital comparison tools in a number of sectors, including car insurance, home insurance and credit cards. The findings of the market study included strong concern about the use of ‘most favoured nation’ clauses, which can […]
PRA publishes consultation papers on approach to supervision of third country firms after Brexit
The PRA has issued two consultation papers on its approach to branch authorisation and supervision, addressed to international banks and to international insurers. Both consultations close on 27 February 2018. The Bank of England has also published letters from Sam Woods, Deputy Governor for Prudential Regulation regarding PRA regulated firms’ planning assumptions, and from Sir […]
ESMA and FCA issue statements on LEIs
In advance of the implementation date for MiFID II on 3 January 2018, ESMA has issued a public statement that provides a form of 6 month transitional period for certain trading venues and certain legal persons, to support the introduction of Legal Entity Identifier (LEI) requirements. This includes provision that trading venues whose non-EEA issuer […]
European Commission publishes proposals regarding capital requirements for investment firms
The European Commission is proposing an overhaul of the prudential requirements for investment firms by bringing in a two track system. The largest, more systemically important firms will be subject to the same rules and requirements as banks; the other firms will be relieved from these more onerous requirements. The changes will be introduced by […]
EC publishes proposal to delay IDD application date
The European Commission has today published a legislative proposal to push back the application date of IDD until 1 October 2018, at the request of the European Parliament and Member States. Member states will still be required to transpose IDD into national legislation by the current implementation date of 23 February 2018. The European Parliament […]
FCA publishes second IDD policy statement
As the implementation date for the Insurance Distribution Directive (IDD) approaches, the FCA has published the second of its three policy statements on the implementation of IDD, PS17/27. This policy statement contains near-final amendments to the FCA’s rules to enable firms to be able to prepare based on the substance of what the final versions […]
FCA publishes distributed ledger technology feedback statement
Following the publication of its discussion paper regarding the risks and opportunities, and characteristics of distributed ledger technology (DLT) in April 2017, the FCA’s feedback statement FS17/4 sets out responses received and the FCA’s next steps. The responses related to the following issues: operational risk, including outsourcing and network security; digital currency, including digital currency […]
Payment Services Regulator requires change to Direct Debit rules regarding switching Facilities Management providers
The Payment Services Regulator (PSR) has published its decision to require the operator of the Bacs payment system, of which the Direct Debit scheme is a part, to change its rules to help clients switch Facilities Management (FM) service providers. Direct Debit FM service providers enable organisations which aren’t specifically approved or sponsored as Bacs […]
Law Commission to address electronic signatures and smart contracts in 13th Programme of Law Reform
The Law Commission has announced the programme of reforms it will be working on over the next 3 years. The projects include: Electronic signatures: there is an absence of explicit case law or legislation confirming that documents executed with an electronic signature satisfy statutory requirements for documents to be in writing and/or signed and/or under […]
Final text of ‘Basel IV’ published
The Basel Committee has endorsed the final set of reforms to Basel III (referred to by some as Basel IV). These reforms will mainly affect the affect the methodologies used by banks in calculating risk weighted assets. It is expected that many banks will have increased capital requirements as a result. However, to soften the […]
PRA publishes final Policy Statement and Supervisory Statement regarding insurance special purpose vehicles
Following the publication of the Risk Transfer Regulations 2017 earlier this week, the PRA has now published the updated versions of Policy Statement (PS 26/17) and Supervisory Statement (SS 8/17) on the authorisation and supervision of insurance special purpose vehicles. These were previously published at the beginning of November.
Risk Transformation Regulations 2017 published
The government has published the Risk Transformation Regulations 2017 (Regulations), which come into force on 8 December 2017, following publication of the draft text by HM Treasury in July. The Regulations enable the creation of a new form of body corporate: a “protected cell company,” which can act as a special purpose vehicle in Insurance […]
Regulation of crypto-currencies under negotiation
The UK government has published the answer to a written question asked of HM Treasury that reveals that they are in the process of negotiating amendments to the 4th Anti-Money Laundering Directive to bring virtual currency exchange platforms and custodian wallet providers into the AML regulatory framework, thereby bringing them within the scope of relevant […]
IFRS 9 transitional Regulation published
There has been concern about the anticipated regulatory capital impact when International Financial Reporting Standard 9 is implemented from January 2018, resulting from some firms seeing a significant increase in expected credit loss provisions. In response, the EU Council has published the text of a Regulation that, amending the Capital Requirements Regulation, sets out a […]
IAIS consults on draft Issues Paper on Index Based Insurances
The International Association of Insurance Supervisors has opened a consultation on a draft paper setting out issues on Index-based Insurances. Index Based Insurances involve contracts where a claim is defined with reference to a pre-determined index. These are seen as a possible way forward for claims relating to weather related or natural catastrophe risk event […]
ESMA publishes MiFID II Q&A clarifying trading obligation for shares
ESMA has updated its MiFID II Q&As to clarify the application of the trading obligation for shares to trade certain instruments on-venue. ESMA confirms that all EU investment firms that are part of a chain of transmission should ensure that the ultimate execution of the order complies with the trading obligation requirements under article 23(1) […]
International Association of Insurance Supervisors publishes updated Insurance Core Principles document
The International Association of Insurance Supervisors has published the latest update to its Insurance Core Principles document, which provides a globally accepted framework for supervision of the insurance sector. Amendments have been made to: ICP 13 (reinsurance and other forms of risk transfer) ICP 18 (intermediaries), and ICP 19 (conduct of business).
Effective financial management and planning by insurance firms and groups: PRA consultation
The PRA has published a consultation paper which seeks the views on a draft supervisory statement on effective financial management and planning by insurance firms and groups. The draft supervisory statement is of particular relevance to insurance entities in the scope of Solvency II, the Society of Lloyd’s and managing agents. The supervisory statement is […]
Financial Exclusion: UK government publishes response to Lords Select Committee final report
Following the appointment in 2016 by the House of Lords of a Select Committee to investigate financial exclusion and access to mainstream financial services, the Committee published its final report, ‘Tackling Financial Exclusion: A Country that works for everyone‘ in March 2017 (Report). This Report made 22 recommendations to address financial exclusion and access, including […]
CMA investigation in the investment consultancy services market
Following the referral of the investment consultancy services market by the FCA to the CMA earlier this year, the CMA is now entering the phase of further information gathering and has updated its investigations page with the responses to issues statement received from the industry. The referral by the FCA followed its Asset Management Market […]
Treasury Committee inquiry into household finances
On 8 November, the Treasury Committee announced the launch of a new inquiry that will examine problematic indebtedness, inter-generational issues, lifetime financial planning and the effectiveness of the market in financing solutions and products to low income households. The Chair of the Treasury Committee, Rt. Hon. Nicky Morgan, indicated that the scope will include: what […]
PSR update on authorised push payment scams and reimbursement model consultation
The Payment Systems Regulator (PSR) has provided an update on progress in relation to authorised push payment (APP) scams, where fraudsters trick customers into instructing their banks to make a payment to what the customer believes is a legitimate account. Following a Which? super-complaint in September 2016, PSR, FCA and the payments industry developed a work […]
Cheque imaging: consultation on supporting legislation
HM Treasury has published a consultation on secondary legislation to support the Image Clearing System (ICS) for cheques. The legislative proposals follow the amendments to the Bills of Exchange Act 1882 introduced by the Small Business, Enterprise and Employment Act 2015, which allowed the introduction of cheque imaging. This aims to cut down cheque clearing times […]
FCA consults on FSCS funding
Following its December 2016 consultation for views on how FSCS funding could be reformed, FCA has published a further consultation paper seeking to ensure FSCS continues to provide the right protections, works effectively and is funded fairly. Proposals under consultation include: Merging the Life and Pensions and Investment Intermediation funding classes; Requiring product providers to […]
EPC consults on mobile contactless card payments
The European Payments Council (EPC) has launched a three month consultation on the Mobile Contactless Single Euro Payments Area Card Payments Implementation Interoperability Guidelines (MCP IIGs). EPC has updated the MCP IIGs with the help of stakeholders from the mobile contactless payment industry, with the aim of standardising a smooth and secure means of mobile contactless […]
Insurance firms “falling short of renewal expectations”
In its latest multi-firm review, FCA has reviewed the manner in which general insurance firms have implemented transparency rules in insurance renewals. The rules apply when a firm sends a general insurance renewal notice to a consumer, and came into effect in April 2017. FCA noted ‘a range of concerns’ and identified four key areas […]
In the FCA pipeline
FCA has updated its policy development webpage for March 2017. Key publications due before the summer include: March/Q1 2017: IDD Implementation – CP1 MAR 1 changes: inside information relating to commodity derivatives CP on new rules for firms running crowdfunding platforms CP on redress methodology for pension transfers CP on creditworthiness and affordability in consumer credit […]
Bills of sale Acts to be reformed
The Government has confirmed it will be reforming the bills of sale Acts. The Law Commission had recommended that using goods as security for a loan while still continuing to have use of them should continue to be possible, but said the laws were outdated and in need of reform. The Economic Secretary to the […]
FOS focuses on complainant age
The latest edition of Ombudsman News looks at the types of complaints FOS addresses from people under 25. PPI is not a concern for them, with the majority of “millennial and post millennial” complaints relating to packaged and current bank accounts (babyboomers make the same proportion of complaints on packaged bank accounts, with Generation X […]
FCA publishes Regulation Round-up
FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim report on the Asset Management Market Study, reminding that the consultation period for responding on the remedies FCA proposed […]
PRA confirms increase in FSCS cover
PRA has issued a policy statement confirming it will increase the deposit protection limit provided by the FSCS to £85,000 from 30 January 2017. This is an increase from £75,000 to reflect currency fluctuations that occurred following the UK’s referendum vote to leave the EU. Firms must make all changes to customer-facing materials required to implement the […]
Retail banking market investigation: CMA publishes responses to draft order
The CMA has published responses to the publication of its draft order following the retail market investigation. The responding institutions include: Dansk Bank HSBC Information Commissioner’s Office Santander Tesco Which Some of the concerns raised in the responses address the proposal to introduce a monthly maximum charge in respect of unauthorised overdraft charges, the definition of […]
Global banking capital rules postponed
The Basel Committee working on Basel III rules that will determine how much capital lenders would have to set aside against loans and other assets, announced on 3 January 2017 that more work was required on certain aspects. The rules were due to have been approved by central bank governors and the heads of supervision from […]
Government consults on single body for public financial guidance
The Treasury has issued a consultation on proposals to establish a single advisory body to replace, and bridge perceived gaps between, the Money Advice Service, the Pensions Advisory Service and ‘Pension Wise’ guidance form the Department of Work and Pensions. The new statutory body will bring together pensions guidance, money guidance and debt advice, and will have […]
FCA withdraws consumer credit info sheets
FCA has withdrawn the information sheets on consumer credit that were intended to become current on 18 January 2017. It says this is due to an error in the production of the information sheets for publication, and it will republish them shortly. In the meantime, firms must continue to use the current version of the […]
CMA concerned about cashpoint merger
CMA has made a provisional finding that the acquisition by Diebold of Wincor may reduce competition in the supply of cashpoints in the UK. It invites comments on its provisional findings by 10 January 2017.
FCA explains RMAR
FCA has published a summary of why it collects data for the RMAR and how it uses it. Its key purpose is to help it supervise firms in a way to minimise poor consumer outcomes in the retail investment market. The data allows it to assess firms’ compliance with threshold conditions, prudential and conduct requirements, […]
European Commission publishes proposals to complete reform of financial regulatory system
The Commission has put forward a package of proposals including amendments to the Capital Requirements Regulation (CRR) and Directive (CRD), the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism Regulation (SRMR). These amendments aim to complete the reform of the financial regulatory system started following the financial crisis. The goals of the proposals are: […]
CMA publishes draft Order following retail banking market investigation
In August 2016 the CMA published the report on its market investigation into the supply of retail banking services. Following the proposals of that Report, the CMA has published a draft Retail Banking Market Investigation Order 2017 which includes measures that seek to drive the market towards ‘Open Banking’: using technology to provide customers with more control over their […]
FCA publishes interim asset management market study
The FCA has today published interim report MS15.2.2 in connection with their Asset Management Market Study. The FCA’s chief objective for the market study was to ensure that the market works well and that the investment products consumers use offer value for money. The market study was launched in November 2015 in response to a number of concerns […]
FPC to acquire powers to address systemic risks in the BTL mortgage market
The Financial Policy Committee of the Bank of England is to be given powers to address lending practices in the buy-to-let mortgage sector from early 2017. This move follows the FPC’s acquisition of such powers in relation to the residential market in April 2015, and a consultation earlier this year on the FPC being granted similar powers […]
BBA announces update to Access to Banking Protocol
The BBA has said that it will update the Access to Banking Protocol in response to an independent review into the effectiveness of the Protocol one year after implementation. The Protocol was put in place in May 2015 to manage the way signatory banks’ branch closures were effected. The review by Professor Russel Griggs OBE acknowledged that the […]
FCA and Treasury respond to CMA retail banking market report
In August 2016, the CMA published its final report following its investigation into the competitiveness of retail banking market (Report), which focused on personal current account and SME customers. The Report found that there were elements of the market that were having an adverse effect on the promotion of competition, and proposed a package of […]
PRIIPs delegated regulation regarding product intervention published in OJ
The Commission Delegated Regulation (EU) 2016/1904 supplementing the PRIIPs Regulation was published in the Official Journal on 29 October 2016. Under the PRIIPs Regulation, national competent authorities and EIOPA have intervention powers to intervene in the marketing, distribution or sale of insurance-based investment products, financial activities or practices. This Delegated Regulation sets out a list […]
Treasury consultation on distributable profits of long-term (life) insurers
The Treasury has launched a consultation on technical changes to the legal definition of life insurers’ distributable profits, in the light of the implementation of Solvency II and the necessity for consequent changes to the Companies Act 2006. As this issue has already been the subject of discussions with the industry, the consultation will close after a shorter period, […]
Updated Consumer Credit information sheets published by the FCA
On 18 October 2016, the FCA announced that it had updated a number of consumer credit information sheets that lenders must use when they are notifying customers of being arrears or default: Arrears Default High cost short term loans High cost short term loans peer-to-peer lenders Arrears peer-to-peer lenders These information sheets must be used […]
Removal of ineffective disclosure requirements from FCA Handbook
The FCA’s policy statement PS16/23 follows its consultation paper CP15/32 which contained its proposals to remove certain disclosure requirements from the Handbook. The policy statement confirms the removal of ‘ineffective’ requirements as part of the FCA’s focus on promoting smarter customer communications. The FCA has decided to remove the rules and guidance around the following documents: […]
Market turning event in the general insurance sector: PRA consultation
The PRA issued a consultation on 21 September 2016 on a draft supervisory statement regarding its expectations of general insurance firms in circumstances where there is a general loss event which might affect firms’ solvency and future business plans. The draft supervisory statement covers the PRA’s expectations of firms in planning for and dealing with […]
Big Data in retail general insurance: FCA feedback statement
In November 2015, the FCA published a call for input on ‘Big Data’, ie the use of new or expanded data sets, new technologies to generate, collect and store data, and sophisticated analytical techniques. The call for input focused on its use in retail general insurance, and in particular three main topics: whether the use […]
FCA’s August Consumer Credit update
This month’s consumer credit update from FCA includes its publications in two on-going areas of work: crowdfunding and credit cards. The FCA has published a Call for Input for its review of the crowdfunding rules implemented in 2014. This review focuses on loan-based and investment-based platforms, but the areas of concern are wide ranging in scope, from investor protections, to business models, […]
General insurance: new disclosure rules from 1 April 2017
On 10 August FCA published Policy Statement PS16/21: ‘Increasing transparency and engagement at renewal in general insurance markets – feedback on CP15/41 and final rules and guidance’. The policy statement contains new rules that will be added to the ICOBS from 1 April 2017. Our article provides an overview of, and our comments on, these changes. Contact […]