Emma RadmoreThe CMA has on 6 August revoked the Directions given to HSBC under the Retail Banking Market Investigation, as the Implementation Trustee confirmed HSBC’s compliance with the Order on App-to-App Redirection...
Category - Retail Banking
Jonny WilliamsPRA confirms temporary high balance extension
PRA has confirmed the extension to FSCS protection for temporary high balances in bank accounts, until 1 February 2021. Protection will last for 12 months until then, when it will revert to 6 months.
EBA consults on internal governance guidelines
EBA is consulting on proposed revisions to its guidelines on internal governance. The changes specifically reflect the CRD V and IFD requirements as they affect credit institutions. The focus of the changes is: on the...
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...
Caroline StevensonFCA issues statement on mortgage prisoners and consults on proposals to support consumers
FCA has published a statement on mortgage prisoners which presents further analysis the FCA has done, since the data it published back in January, on borrowers with inactive firms, including mortgage prisoners. The main...
Amelia GreenEBA consults on technical standards on reporting of MREL decisions
The European Banking Authority (“EBA“) has launched a public consultation on its draft Implementing Technical Standards (“ITS“) specifying uniform reporting templates, instructions and...
EBA updates on SREPs and Covid-19
EBA has summarised the difficulties Covid-19 has presented to supervision generally, and the SREP process in particular. It has now published guidelines to supervisors building on the requirements of the CRD and the...
FCA updates on sandbox
FCA has announced its acceptance of 22 businesses into cohort 6 of its sandbox. It had received 68 applications, mainly from the retail banking, payments and retail lending sectors. More than half were seeking to...
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...
Regulation round up highlights refunds, SMRC delays and next steps in Covid-19 consumer protection
FCA’s latest Regulation Round up covers the usual update of FCA’s recent publications, and reminds them of some earlier, still relevant, statements, not least: the confirmed new guidance for motor finance...
FCA consults on access to cash guidance
FCA has published a guidance consultation on how it expects banks, building societies and credit unions to behave when considering closing branches or ATMs, or converting a free to use ATM to a paid one. Firms should...
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...
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...
EBA calls for action on resolution plans in Covid-19
EBA has reiterated the importance of resolution planning in times of uncertainty such as the Covid-19 pandemic. It calls on regulators to take into account the impact of Covid-19 on banks and their business models when...
PRA consults on temporary high balance FSCS extension
PRA is consulting on extending coverage under the FSCS for temporary high balances in bank accounts, in response to Covid-19. PRA feels it would be appropriate to cover the balances (on up to £1m) for 12 months from the...
BBRS publishes report on live pilot key learnings to date
The Business Banking Resolution Service (“BBRS“) has published a report capturing a panel discussion among four key individuals working on the development of its service, which is currently in a ‘Live...
Commission begins Brexit warning notices
The European Commission has stated the process of sending Stakeholder Preparedness Notices, to summarise for stakeholders the effect of Brexit on over 100 sectors. It had originally published these notices during...
FCA reformats Brexit advice
FCA has revamped its information page on Brexit. The page gives advice to firms on what they should be considering in preparation for the end of the transition period. Much of the information is not news, and includes a...
PRA makes fees rules
Following on from FCA’s confirmation of its fees and levies for 2020/21, PRA has now made its policy statement. It made no changes to its proposals, and has now published the necessary rule changes which take...
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...
CMA reports on SME banking behavioural undertaking compliance
The CMA has published its annual report on whether 8 UK banks are complying with the undertakings they gave in 2002 not to bundle loans and accounts. CMA found no significant breaches during the last reporting year. ...
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...
Treasury updates on Financial Services Bill prudential intentions
Treasury has provided some detail on the legislative approach it will take on prudential standards in the Financial Services Bill. The statement goes alongside the FCA discussion paper on the prudential regime for...
FCA Publishes COVID-19 guidance for loan providers
The FCA published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until 5pm on 22 June 2020...
FCA updates COVID-19 guidance for overdraft providers
The FCA has, this morning, published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until...
FCA updates COVID-19 guidance for credit card providers
The FCA has, this morning, published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until...
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...
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...
Identity of lenders in peer-to-peer lending platform protected by Chancery Appeals Court
In Andrew Milne v Open Access Finance Ltd [2020] EWHC 1420 (Ch) the Court rejected an appeal against the making of a representative order under CPR r. 19.6 but allowed the appeal challenging the identity of that...
Scott NodderRandell 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...
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...
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.
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...
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...
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...
FCA issues update on branch access for essential services
FCA has issued an update to its previous statement of 25 March, setting out its expectations of firms as they reinstate services in line with government guidance. The update also gives advice for consumers who may need...
New BBRS consults public and stakeholders ahead of launch
On 4 June, key questions on the framing of a new service set up to resolve banking disputes for SME customers were published for consultation. The Business Banking Resolution Service (“BBRS“) is seeking...
Covid-19 – PRA writes to CEOs on IFRS 9 and capital requirements
On 26 March the PRA, wrote to CEOs of UK banks and building societies providing guidance on the application of the definition of default in the CRR in light of Covid-19, and the expected credit loss accounting...
FOS publishes 2019/20 data
FOS has published details of the complaints it received and dealt with in 2019/2020. It received around 270,000 complaints and dealt with nearly 300,000, with the Ombudsman making nearly 30,000 decisions. As ever, the...
ESMA consults on cloud outsourcing guidelines
ESMA published a consultation paper today on guidelines for outsourcing to cloud service providers. The consultation, which closes on 1 September, looks at the detail of the proposed guidelines which will provide...
Covid-19: EBA issues guidelines on data gaps and reporting
The European Banking Authority (“EBA“) has published its Guidelines on reporting and disclosure of exposures subject to measures applied in response to the Covid-19 crisis. EBA says the Guidelines follow the...
LIBOR transition – tough legacy issues
The Working Group on Sterling Risk-Free Rates has published a paper on the identification of “tough legacy” issues. Tough legacy contracts are those that do not have robust fallbacks and prove unable to be...
Rebecca JonesUK Finance reports payment holiday figures
UK Finance statistics show that, as of 21 May, their members report that: 877,800 customer accounts had been given a payment freeze on their credit cards, an increase of 25% from the start of the month; nearly 680,000...
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...
FCA responds on economic impact of Covid-19
The Treasury Committee has published a copy of a letter from FCA answering its questions on the economic impact of Covid-19. The letter explains: the steps FCA has taken to ensure the credit ratings of customers taking...
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...
Government publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
FCA updates on Innovation Hub help
FCA has updated its information on requesting Innovation Hub support in light of Covid-19. It wants to hear from firms who have creative and innovative solutions to the challenges the virus is posing, and is...
LSB publishes business plan and budget
LSB’s Business Plan and Budget for 2020/21 has been published. It was drafted before the Covid-19 outbreak, and LSB wants to continue with it so far as possible, while accepting it may need to adapt some of the...
FCA updates on Covid-19 and complaints
FCA has updated its webpage on how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...
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 sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
FCA speaks on response to Covid-19 and Brexit
Nausicaa Delfas has spoken on FCA’s national and international response to Covid-19 and Brexit. On Covid-19, she noted: FCA’s priority to keep markets open and orderly, help firms continue to operate...
Government sets out equivalence views
John Glen has written to the Chair of the European Scrutiny Committee explaining the Government’s stance on equivalence in financial services. The Government cannot provide great detail given the early stage of...
Covid-19: access to restricted savings
FCA has updated its Covid-19 information for firms in respect of consumers needing to access restricted savings. Research shows that over 20% of consumers have had to access their savings recently, and that several...
Up next from FCA
Unsurprisingly, FCA’s recent publications have almost exclusively focused on Covid-19. However, in BAU, it still proposes: a consultation on exit fees on investment platforms and comparable firms over the summer;...
FCA publishes skilled person data
FCA has publicised the number of skilled persons reports commissioned in January to March 2020. It commissioned 24 in total, of which 9 related to retail banking and 6 to retail lending. 6 of the reports were on...
UK and Switzerland work to strengthen ties
Economiesuisse and The CityUK have been working on a joint position paper setting out how to strengthen the countries’ relationship in the time of coronavirus and in the future. In terms of financial services, the...
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...
Financial Services Bill measures
I wrote an article for Compliance Monitor on the current consultations and plans for financial services regulation under the Financial Services Bill initiative.
Regulator Covid-19 update 22 April
On 22 April FCA published a new webpage on PII cover for financial advisers. It recognises that firms may be concerned about their ability to renew their PII during the Covid-19 crisis, which may impact on their...
PRA updates on skilled persons reports
PRA has published details of the skilled persons reports it commissioned in Q3 2019/20. There were 8 in total, of which 3 related to technology and information management in banks, and 2 to controls and risk management...
CMA writes to Metro Bank on breaches of the Retail Banking Order
The CMA has written to Metro Bank’s CEO after the bank broke an Order requiring it to send customers text alerts before charging them for going into an unarranged overdraft, giving them time to act and...
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...
FCA publishes complaints figures for H2 2019
The FCA has today published the complaints figures for regulated firms for the second half of 2019. The data showed an increase in complaints from 4.29m in the first half of 2019 to 6.02m in the second half of 2019. In...
EVENT: Retail Banking Mixer
Our next Retail Banking Mixer will be held by webinar instead of in our London and Edinburgh offices. We’d be delighted if you could join us on Thursday 23rd April at 10am. Topics covered will be: ...
FOS updates on Covid-19 activities
The latest edition of Ombudsman News focuses on: how it is working to help complainants during the Covid-19 crisis, including on how it has changed its helpline hours – for which it apologises but asks that it...
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...
Overdrafts and Coronavirus: New Rules
As noted earlier, the FCA has published the new rules that firms require to implement by 14 April 2020. In relation to the overdrafts, the FCA has implemented two measures (1) interest free overdrafts and (2) overdraft...
FCA confirms new measures for retail banking customers
Following the emergency consultation launched last week, this morning, the FCA has confirmed the range of temporary relief that must be implemented by firms by 14 April at the latest. The new rules require that, where...
FCA consults on fees
FCA has published its fees and levies proposals for 2020/2021. Covid-19 has affected FCA’s plans, and it is taking action to protect small and medium sized firms from the burden of regulatory fees. Comments are...
FCA: List of delayed workstreams (UPDATED 7 April)
We’ve scoured the FCA website to bring you a list of the workstreams that have been delayed. Through delaying these workstreams, the FCA can focus on the evolving pressures Covid-19 is putting on firms and...
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...
FCA Business Plan 20/21
The FCA published its business plan for the coming year this morning. The plan focuses around 5 key priorities for the year. It has been significantly reshaped because of coronavirus as it was intended to show the...
FCA publishes update on Strong Customer Authentication
In 2019, new rules on how banks or payment services providers verify customers’ identities or validate payment instructions were introduced to further enhance the security of payments and limit fraud. These...
Digital finance and retail payments: European Commission launches two targeted consultations
On 3 April 2020, the European Commission (EC) launched consultations in two areas: digital finance and retail payments. The EC recognises that the coronavirus pandemic has shown that consumers and businesses are...
Regulator Covid-19 update 3 April
On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...
Emergency consultation by the FCA
The FCA has proposed a range of targeted temporary measures designed to quickly support users of certain consumer credit products who are facing a financial impact due to coronavirus. The package is intended to...
Parliament Committee seeks equivalence answers
The Third Report of Session of the House of Commons European Scrutiny Committee seeks clarification on the Government’s intentions for negotiations of equivalence arrangements with the EU from the end of the...
FOS confirms case fees and releases 2020/21 budget
FCA has confirmed FOS’ 2020/21 budget. Key elements include: continuing to allow 25 “fee” cases for firms outside the group account fee arrangement – so 90% of firms will pay no case fees; 50...
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...
In-action is a breach of duty and amounts to concealment for Limitation defences
In Canada Square Operations Ltd v Mrs Beverley Potter [2020] EWHC 672 (QB) , the High Court heard an appeal by the creditor against the decision of Mr Recorder Rosen QC. In the decision it was found that the creditor...
Regulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Government confirms extension of TTP
In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...
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...
Contactless limit increasing
UK Finance announced today that the card transactional contactless limit will be increasing from £30 to £45 with the roll out starting on 1 April. The changes may take a while for retailers to implement, especially...
CMA varies Santander directions
CMA has varied the Directions to Santander in respect of its Open Banking Release. It had previously varied the directions in January 2019 and considers Santander’s continued failure to comply with the...
FCA issues Covid-19 guidance for consumers
The FCA has explained that is working closely with the Government, the Bank of England, the Payment Systems Regulator and firms to ensure markets continue to work well for consumers. This includes making regular contact...
Rachael PrestonEU writes to Chancellor on equivalence
Valdis Dombrovskis has written to Rishi Sunak on equivalence assessments. The letter merely notes that both sides should start to assess equivalence as soon as possible, on the basis of the Political Declaration, with a...
Treasury Committee responds on IT failure and economic crime reports
The Treasury Committee has commented on the responses from Government and regulators on: its October report on failures in the IT industry. The report had concluded, among other things, that: regulators need to improve...
Invalidly executed deeds of guarantee still enforceable
In Signature Living Hotel Ltd v Sulyok [2020] EWHC 257 (Ch), the High Court was asked to consider whether two deeds of guarantee were enforceable in circumstances where the signature of the director of the surety had...
Treasury consults on UK/Gibraltar FS access
Treasury is consulting on the post-Brexit market access arrangements between the UK and Gibraltar. Constitutionally, Gibraltar is an Overseas Territory with internal self-government. Responsibility for financial...
Budget 2020: Key notes for Financial Services
The Regulatory update within the 2020 Budget included the following key notes: Financial Services Bill – this will provide long-term market access between the UK and Gibraltar for financial services firms...
Bank of England implements new measures to respond to the economic shock from Covid-19
The Bank of England (“BoE”) has announced a comprehensive and timely package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with Covid...
Bank of England slashes interest rate in response to Covid-19
The Bank of England (“BoE”) has reduced the Bank Rate by 50 basis points to 0.25%. The aim of the reduction is to help support business and consumer confidence amidst the Covid-19 outbreak, to bolster the...
The Treasury Committees approves Bailey, but says it will keep an eye on the FCA
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England. Whilst it is satisfied that Mr Bailey has the professional competence and personal...
Up next from FCA
FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...
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...
Deputy Governor of Financial Stability says “It’s time to talk about money”
Sir Jon Cunliffe delivered a speech on the future of the banking system and of cash payments. He noted that the forms money takes in society change as the structure of economies changes, as the ways in which we transact...