FIN.

FCA serves BI insurance Reply

FCA has published its Reply and defence to Counterclaims to the Defences of the insurers in its Business Interruption Insurance test case, as well as its amended Particulars of Claim, the judgment from the first Case...

Commission confirms MLD4 enforcement actions

The European Commission has confirmed further actions against Member States for failure correctly to transpose MLD4. It has sent letters of formal notice to Luxembourg, Slovakia and Slovenia, reasoned opinions to...

Up next from FCA

Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...

Basel Committee finalises AML/CFT guidelines

The Basel Committee has published the updated version of its guidelines for supervisors on co-operation in relation to the sound management of risks related to money laundering and the financing of terrorism. Among the...

Court of Appeal upholds Cynergy judgement

The Court of Appeal has upheld the judgment that a borrower was justified in its refusal to make payments under a loan where the ultimate beneficial owner of the lender was an OFAC SDN. Cynergy Bank (a UK bank) had...

FCA to reopen TPR

FCA has updated its webpages on the temporary permissions regime, to note it will reopen the TPR windows for inbound passporting EEA firms and funds on 30 September, and will also allow fund managers to update their...

Consumer Panel mulls digital advertising

The Financial Services Consumer Panel has published a discussion paper on digital advertising in financial services.  It is deeply concerned about the use of “adtech” to create detailed profiles of...

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 updates on SMCR and approved persons

FCA has updated on SMCR implementation periods in the times of Covid-19. It has extended the deadline for solo-regulated firms to have undertaking the first assessment of fitness and propriety of Certified Persons to 31...

Barnier speaks on Brexit

Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations.  He noted the desire to give the EU/UK negotiations “every chance of succeeding”.  He noted he had rescheduled many other meetings...

IOSCO consults on AI use

IOSCO is consulting on the use of AI and machine learning by market intermediaries and asset managers. It has produced guidance for its members to help them supervise its use. IOSCO notes the key potential benefits of...

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...

FCA makes new rules

FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...

MLD4 high-risk list in OJEU

The revised list of high-risk third countries for AML purposes has been published in the OJEU. The new list applies from 1 October, and will comprise: Afghanistan Bahamas Barbados Botswana Cambodia Ghana Iraq Jamaica...

FCA updates on Covid-19 delayed activities

FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...

EIOPA updates on stress testing

EIOPA has published a further discussion paper on the methodological principles of insurance stress testing.  Following its first paper, last year, it is now planning to add some new elements to its stress test toolbox...

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...

FCA publishes defences in BI test case

FCA’s latest update on its business interruption insurance test case: published the sealed Court Order from the Case Management Conference on 16 June; published the Defences of the defendants to the test case...

FCA consults on pensions value for money

FCA is consulting on measures that will make it easier for governance committees to compare the value for money of pensions products and services, so the value for workplace pension scheme members can be better assessed...

FCA Update on Mortgage Prisoners

The FCA has updated their webpage relating to the implementation group on changes to deliver switching options for mortgage prisoners. The update includes details of a meeting held on 1st May 2020 which confirmed that...

Chancellor updates on FS laws and Brexit

Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...

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...

FCA ready with Gabriel replacement

FCA has announced that its new platform, which replaces Gabriel, is called RegData, and that it is preparing to move all firms across to it. It will move firms over in groups, depending on the nature of their reporting...

FCA reminds crypto businesses to register

FCA has reminded businesses that carry on cryptoasset activity in the UK to register with it for AML purposes, if they have not done so already.  Firms that were carrying on the activities before 10 January 2020 must...

JMLSG upates on Covid-19 risks

JMLSG has reminded firms of FCA’s guidance on managing financial crime risks throughout Covid-19 and has also commented on the disruption the pandemic is causing to documents often relied on for CDD purposes. It...

EBA updates risk taker RTS

EBA has published its final draft RTS on the criteria to define material risk takers for CRD purposes. It has published the revised standards to define and harmonise the criteria across the EU. An individual member of...

EBA updates RTS on CRD passport notifications

EBA has published its final revised RTS and ITS on passport notifications.  The new versions are aimed at betting better quality consistent information, particularly on start dates of new activities and the granularity...

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...

PRA writes to insurers on 2019 stress test

PRA has written a Dear CEO letter to firms participating in the 2019 Insurance Stress Test. The letter covers: Covid-19 resilience: tests showed the sector was robust to downside stresses, with the highest uncertainty...

ESMA updates work programme

ESMA has updated its 2020 work programme to include its work on its immediate reaction to the Covid-19 crisis and what may be deprioritised as a result.  It has also published its 2019 annual report.

EBA publishes DGS review

EBA has published its first peer review of deposit guarantee schemes, looking at stress tests and resilience. It has concluded overall resilience is “fair”, which means that any shortcomings are unlikely to...

FCA updates mortgages Covid-19 page

FCA has updated its website on its finalised guidance for firms on mortgages and Covid-19. The updates are minor, making a few clarifications only, mainly to confirm that firms that could not provide personalised...

FCA publishes equity release review

FCA has published the results of its review into how the equity release market is working for consumers. The review found that equity release can be an attractive option for some consumers, and that it is working well...

FCA fines Commerzbank for AML failings

FCA has fined Commerzbank AG London Branch nearly £38m for AML systems and controls failings spanning a 5 year period to September 2017.  The bank benefited from a 30% discount for early settlement. Many of the...

Randell speaks on supporting the recovery

Charles Randell has spoken to a virtual roundtable of bank chairs on how the financial services industry can work to support recovery from the Covid-19 pandemic. He noted the great efforts that banks and other market...

EBA looks to understand derisking

The EBA has issued a call for input better to understand the scale and drivers of derisking and its impact on customers.  It wants to gain better insight into why finacnail institutions prefer to derisk instead of...

Government responds on FS post-Brexit inquiry

The Government has published its response (dated 27 May) to the EU financial affairs sub-committee on financial services after Brexit. The letter, from John Glen: confirms that EU negotiations continue to be a priority...

FCA updates market abuse pages

FCA has updated the guidance on its website on reporting suspected market abuse. The guidance includes FCA’s expectations in respect of how firms should make market observations in situations where they will not...

ESMA clarifies MiFIR open access application

ESMA has issued a statement to clarify how supervisors should apply the open access provisions of MiFIR for trading venues and CCPs in the light of Covid-19. The current temporary powers to grant exemptions from the...

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...

FCA updates on BI insurance test case

FCA has published a new set of documents relating to the test case it is bringing to get clarity on the coverage of business interruption insurance during the Covid-19 crisis. It has on 10 June (today) announced that it...

FCA looks at conduct, culture and Covid-19

FCA has looked at how the measures taken to adapt to working in the times of Covid-19 have affected conduct and culture.  It notes that, for those that can work at home, there may be no return to the office for some...

Commission reports on AIFMD impact

The European Commission has published the report required by the AIFMD on the effects the Directive has had on the alternative investment funds industry.  Its review covered 13 Member States, selected to give a broad...

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...

£38m support for debt advice

The Government has announced a nearly £38m support package for debt advice providers, to help them to provide essential services to people who have struggled with their finances because of Covid-19. The Money and...

FCA publishes Covid-19 guidance for SMEs

FCA has added to its suite of guidance on Covid-19 issues with a pages setting out help available to SMEs. The guidance explains what BBLS and CBILS do, and explains the guidance FCA has given to banks and insurers on...

Pay.UK heralds COP launch

Pay.UK has heralded the introduction of Confirmation of Payee and has reminded users of the importance of using “first name surname” rather than a nickname on payment details. Its data shows that 34% of...

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.

Europol launches economic crime centre

Europol has launched the European Financial and Economic Crime Centre to give better operational support to Member States and EU bodies fighting financial and economic crime. It has also published a report looking at...

ESMA opines on compliance function

ESMA has given new guidance on the MiFID 2 compliance function, replacing 2012 guidance.  The new version aims to provide more clarity and more convergence in implementation and supervision of the requirements of MiFID...

FOS publishes Ombudsman News

The latest edition of Ombudsman News covers: annual complaints data figures (which FIN already reported) views of FOS on complaints trends FOS’ future strategy how FOS has dealt with its first year of CMC...

FCA publishes quarterly CP

FCA is returning to some regular business and has published a short quarterly consultation, proposing changes to: clarify FSCS’s power to declare in default firms and successors subject to the proposed new...

Up next from FCA

FCA’s latest Policy Development Update highlights the following publications due over the next few months: CP on marketing speculative illiquid securities to retail investors (including speculative mini-bonds); CP...

FCA sets out new DB measures

FCA has published a package of measures to address weaknesses across the defined benefit transfer market. The key changes will: ban contingent charging in almost all circumstances. This will remove the conflict that an...

EVENT: Retail Banking Mixer Webinar

Our next r=Retail Banking Mixer will be held by webinar on 18th June at 10am.  We are delighted to be joined by Rosemary Ford and Amber Andrade from Deloitte this time. The webinar continues the focus on COVID-19.  Our...