Emma BondFollowing the publication of near-final rules in July, the PRA has published a policy statement (PS) setting out its CRR rule instrument to implement part of the Basel standards that still need to be implemented in the...
Category - Retail Banking
Lucy Hadrill
Cynthia MaPRA policy statement on UK leverage ratio framework
The Bank of England has published the Prudential Regulation Authority (PRA) policy statement PS21/21, which contains feedback from the Financial Policy Committee (FPC) and the PRA on responses to the Consultation Paper...
CMA report on allegations at the Open Banking Implementation Entity
The CMA has published its findings following an investigation into allegations at the Open Banking Implementation Entity (OBIE). The OBIE was set up in 2017 to implement Open Banking, enabling consumers and SMEs to...
CMA revokes Santander directions
The CMA has revoked the Directions under the Retail Banking Market Investigation Order originally given to Santander in December 2018 in respect of delivery of Release 1 of Open Banking by Cater Allen, after receiving...
Emma RadmoreCMA writes to Santander following breach of Retail Banking Order
The CMA has written a letter to Santander following the bank’s failure to publish Northern Ireland Service Quality Indicators for Overall Service Quality for Business Current Accounts, as required by the Retail...
Ombudsman News looks at fraud and scam complaints
The latest edition of Ombudsman News warns customers to be extra vigilant about fraud and scams following a significant rise in cases seen by the FOS in the last 12 months. The FOS received 5,025 fraud and scam...
Up next from the regulators
Nikhil Rathi and Sam Woods, CEOs of the FCA and PRA respectively, have set out the regulators’ current areas of focus. Highlights from Mr Rathi’s speech include that the FCA: is collaborating with...
Banks benefit from early adoption of green policies, says EBA
The BEA has published the results of its economy-wide stress test, which tested the impact of climate change on over 4 million firms worldwide and 1,600 euro area banks. The findings show that: firms and banks are to be...
Basel Committee calls for greater resilience against cyber threats
The Basel Committee has published a newsletter encouraging banks to adopt more resilient measures relating to cyber security. This was triggered in part by the increase in cyber threats since the beginning of the COVID...
EBA to enhance monitoring of digital platform use in EU banking and payments sectors
A Report published by the European Banking Authority (EBA) today on the “platformisation” (use of digital platform-based business models) of the EU banking and payments sector: identifies the rapid growth in...
ECJ delivers judgment on EBA Guidelines
The ECJ has ruled that the EBA acted within its powers when it adopted guidelines on product governance and oversight arrangements for retail banking products in 2015. The guidelines set out requirements for...
EBA publishes revised guidelines on DGS stress tests
The EBA has published its revised guidelines on the stress tests conducted by national deposit guarantee schemes (DGS) under the Deposit Guarantee Schemes Directive. The revised guidelines extend the scope of the DGS...
FCA mortgage guidance to expire in October
In October 2020, the FCA introduced temporary guidance on maturing interest-only and part-and-part mortgages. The guidance allowed borrowers with certain mortgages due to mature between 20 March 2020 and 31 October 2021...
Stick to the Basel III agreement, says EU
EU prudential supervisors and central banks have written to the EU Commission in support of a full, timely and consistent implementation of the Basel III agreement, saying that diluting the framework would not be in the...
BBRS launches independent and transparent liaison panels
The Business Banking Resolution Service (BBRS) has launched two liaison panels which have been set up to act as independent and transparent advisory councils to the BBRS. The panels will create a feedback loop between...
FCA writes to mortgage third party administrators
The FCA has written to mortgage third party administrators (TPAs) to set out its view of the key risks TPAs pose to their customers or the markets in which they operate and to outline its expectations of TPAs, including...
FCA responds to Treasury on frozen bank accounts
Nikhil Rathi has responded to Rt. Hon. Mel Stride MP’s questions following press reports that NatWest might have frozen the accounts of some customers on low incomes without good reason. Highlights of the...
Banks back Confirmation of Payee extension
Following Pay.UK’s confirmation that the reach of the Confirmation of Payee Service (CoP) will be extended, a group of the UK’s major banks has written to the PSR to provide a public commitment to deliver...
Next steps for the Consumer Duty
The FCA’s consultation on a new Consumer Duty has now closed and the FCA has outlined its next steps. After considering the responses, the FCA will set out the proposed text for any new rules in a second...
EBA publishes stress test results
The EBA has published the results of its 2021 EU-wide stress test which involved 50 banks from 15 EU and EEA countries. The results show that under a very severe scenario, the EU banking sector would stay above a CET1...
LSB publishes Access to Banking Standard summary
LSB has published a summary report on the Access to Banking Standard. The report makes it clear that LSB has no role in approving or commenting on a bank’s decision to close a branch, but merely to see how the...
Ombudsman News looks at BII complaints
The latest edition of Ombudsman News looks at complaints about business interruption insurance (BII) after the test case. In the case of most complaints, the insurer is now accepting that the policy provides cover...
FCA writes to firms on SME lending and BBLS fraud
FCA has published a Dear CEO letter on its expectations of firms in reporting BBLS fraudulent activity. It notes the excellent levels of cooperation within the industry throughout the pandemic and in relation to BBLS...
Treasury writes to FCA over frozen bank accounts
The Chair of the Treasury Committee, Rt. Hon. Mel Stride MP, has written to Nikhil Rathi following press reports that NatWest might have frozen the accounts of some customers on low incomes without good reason. The...
FCA outlines mortgage prisoners review
The FCA has published the terms of reference setting out the steps it will take in its mortgage prisoners review. Data review: the FCA will review and update its data to consider the demographic and loan characteristics...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
PRA updates on shareholder distributions by large UK banks
On 10 December 2020, the PRA published a statement on “Capital distributions by large UK banks” in which it set out guardrails for distributions to ordinary shareholders in relation to full-year 2020 results...
PRA policy statement on Basel implementation
Following its consultation earlier this year, the PRA has published a policy statement (PS) on its proposed new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK...
PRA Policy Statement: Regulated fees and levies: rates for 2021/22
The PRA has published a policy statement which provides feedback to responses to the consultation paper ‘Regulated fees and levies: rates proposals 2021/22’. The policy statement also contains the PRA’s...
Hannah FrostPay.UK publishes resources for organisations implementing ISO 20022
The New Payments Architecture (NPA) will unlock significant benefits for many businesses and personal customers within the UK, helping transform the way they control their professional and personal transactions, and...
UK and Singapore agree landmark Financial Partnership for financial services
An historic new partnership for financial services between the UK and Singapore, which will help to boost jobs and investment in the UK, has been agreed by the Chancellor. The Financial Partnership is a new agreement...
Ombudsman News looks at insurance and loan schemes
The latest edition of Ombudsman News features problems and complaints related to wedding insurance and business interruption insurance. The pandemic has driven a sharp increase in wedding and special events insurance...
CMA reports on banks’ compliance with bundling rules
The CMA has published the 2020 annual audit into whether 8 leading UK banks are complying with undertakings they gave not to bundle loans and accounts. During the reporting period covered by the 2020 report the CMA...
EBA reports on treatment of third country branches
The EBA has published a report on the treatment of incoming third country branches of credit institutions under the national law of Member States. The report sets out 14 high-level policy recommendations for further...
CMA warns banks over transaction history breaches
Banks and buildings societies are required to send customers a history of their current account banking activity (a “transaction history”) within 40 days of a customer or small business closing their current...
LSB updates on CRM code review
LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...
Government responds on financial exclusion
The Government has published its response to the Lords Liaison Committee report on tackling financial exclusion. Key elements of the response consider: access to cash: the response notes that the FS Act 2021 will allow...
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
ECB consults on “fit and proper”
ECB has issued a consultation draft of its requirements when assessing members of management boards and those holding key functions within regulated institutions as “fit and proper”. It asks for comment by ...
FSB overview of responses to public consultation on outsourcing and third-party relationships
The Financial Stability Board (FSB) has published an overview of the responses it received to its November 2020 discussion paper on regulatory and supervisory issues relating to outsourcing and third-party relationships...
Prime Minister speaks with financial services leaders
Boris Johnson hosted a virtual roundtable with financial services leaders alongside the Chancellor Rishi Sunak and the BoE Governor Andrew Bailey. Topics discussed include: boosting home ownership by transforming...
LSB launches Access to Banking Standard Review
LSB has published a consultation paper on the review of the Access to Banking Standard. The Review is aimed at determining whether the Standard is still an effective way to achieve fair outcomes for customers (consumers...
PRA publishes policy statements on OCIR policy
In October 2020, BoE and PRA consulted on a package of proposals relating to operational continuity in resolution (OCIR) policy and the May 2020 resolution measures, to ease operational burdens on firms in response to...
Ombudsman News looks at annual complaints data
Following the publication of the FOS complaints data for 2020/21, the latest edition of Ombudsman News looks at key trends FOS has seen in a year impacted by Covid-19. Highlights include: Banking – banks’...
FOS publishes Annual Complaints Data
FOS has published its annual complaints data for April 2020 – March 2021. Key highlights include: an overall increase in new complaints of 2% from the previous year – but a 58% increase when PPI complaints...
PRA publishes 2021/22 Business Plan
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2021/22. The PRA’s strategy will be delivered through the following strategic goals: Have in place robust prudential standards and...
PSR consults on CoP for all
The PSR has issued a call for views on whether it should direct additional banks, building societies and financial institutions to offer Confirmation of Payee. Currently only the 6 biggest banking groups offer it. The...
FCA extends SCA deadline to March 2022
The FCA has extended the deadline for implementing Strong Customer Authentication for e-commerce transactions from 14 September 2021 to 14 March 2022. This further 6-month extension is in response to concerns about...
FCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...
Dormant Assets Bill introduced in Lords
The Dormant Assets Bill has been introduced into the House of Lords and has had its first reading. The Bill proposes expansions to the current scheme to include not only bank and building society assets, but also long...
FCA and PSR make statement on access to cash
A joint statement from FCA and PSR stresses that although there has been an overall decline in use of cash, withdrawals have started again as restrictions ease, and there must remain access to cash and banking services...
Banking industry supports access to cash
UK Finance and the UK’s largest retail banks and building societies have announced their commitment to continue to preserve access to cash for consumers and businesses over the long term. The 8 financial...
Pay.UK announces Confirmation of Payee extension
Pay.UK has confirmed that, from July 2021, the reach of the Confirmation of Payee Service (CoP) will be extended with a revised capability and simplified processes. This will allow CoP to be introduced more widely to...
FCA publishes latest Regulatory Initiatives Grid
FCA has published the third edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. This edition marks the end of a successful one-year pilot exercise – the FCA has confirmed that...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
BoE speech: operational resilience – outcomes in practice
Lyndon Nelson, Deputy CEO & Executive Director, Regulatory Operations and Supervisory Risk Specialists at the BoE, delivered a speech at the UK Finance Operational Resilience Webinar on recent policy on operational...
PRA reports on collections in non-systemic banks
PRA has published a letter setting out the findings of its thematic review on collections. The letter follows PRA asking the internal audit function within non-systemic UK deposit takers to review their: collection...
FCA publishes H2 2020 complaints data
FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...
House of Lords publishes financial exclusion report
The House of Lords Liaison Committee has published its third follow-up report, “Tackling Financial Exclusion: A country that works for everyone? Follow-up report.” The report analyses the progress made by...
Duncan ScottPRA issues supervisory expectations for new banks
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...
Jonny WilliamsLender’s duties limited in asset disposal
In a helpful decision for Banks and lenders, the Court of Appeal decision in Morley (trading as Morley Estates) v Royal Bank of Scotland plc [2021] EWCA Civ 338 confirmed the limited extent of the duties a lender owes...
Scott NodderFinancial Services Bill continues in Lords
The House of Lords has continued its scrutiny of the Financial Services Bill during the report stage. The proposals debated on 14 April include amendments to: remove the prohibition under the Market Abuse Regulation on...
LSB looks at APP scam prevention
LSB has stressed the importance of preventing APP fraud in the first place, rather than just ensuring customers who suffer can be reimbursed – critical though that is. It notes that the increase in online and...
BCBS publishes operational resilience Principles
The Basel Committee on Bank Supervision (“BCBS“) has published a report setting out its “Principles for Operational Resilience”. In the report, BCBS notes that the Covid-19 pandemic has...
ESAs publish report on complaints-handling
The Joint Committee of three European Supervisory Authorities (EBA, EIOPA and ESMA) (ESAs) have published a report on the application of their guidelines on complaints-handling. The report assesses how the guidelines...
FOS publishes 2021/22 plans and budget
FOS has published its plans and budget for 2021/22 which were consulted on between December 2019 and January 2020. FOS has forecast a reduced caseload in 2021/22 following the unprecedented increase during 2020...
CMA writes to Danske Bank on bundling breach
Danske Bank required 305 of its SME customers to open a business current account in order to progress their application for a loan under the Bounce Back Loan Scheme. The CMA has now written to Danske Bank to explain...
PRA issues policy statement entitled “Depositor protection: Identity verification”
The PRA has issued a policy statement entitled “Depositor protection: Identity verification” which provides feedback to consultation paper (CP) 3/21 on the same subject. The final policy set out in the...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
LSB considers the customer journey in a digital world
In January this year the Lending Standards Board (LSB) released a thought piece on the customer journey in the digital space, with the aim of promoting best practice and good customer outcomes in the provision of...
CMA consults on future oversight of open banking
The CMA has published a consultation paper seeking views on what arrangements it would be appropriate to put in place to ensure the effective oversight and governance of open banking following the implementation of the...
Covid-19: FCA updates on support for mortgage customers
The FCA is consulting on proposed updates to its “Mortgages and Coronavirus: Tailored Support Guidance.” The guidance is intended to ensure that mortgage customers whose homes may be repossessed are treated...
FCA increases contactless payment thresholds
FCA has published a policy statement outlining the amendments to Article 11 of the strong customer authentication RTS. The changes increase the single transaction threshold for contactless payments from £45 to £100 and...
BoE writes to banks on resolvability framework
BoE has written to banks on resolvability assessment framework preparations. The framework set out what banks need to do for the BoE to consider them “resolvable”. Submissions are due in October, and BoE is...
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...
FCA updates on cancellations and refunds guidance
FCA has updated its webpages and finalised guidance on how it expects credit and debit card and insurance providers to deal with requests for refunds following cancellation of trips, events and holidays as a result of...
National Courts can order parties to re-negotiate unfair terms, says the CJEU
In Banca B. SA v A.A.A (Case C 269/19) ECLI:EU:C:2020:954 the First Chamber of the Court of Justice of the European Union (CJEU) has held that National Courts can facilitate negotiations to replace an unfair term where...
The Unfair Contract Terms Directive is challenged but holds firm
In the case of Dexia Nederland BV v XXX and Z , the Court of Justice of the European Union (CJEU) gave judgment in two cases relating to the provisions of The Unfair Contract Terms Directive (93/13/EEC). The directive...
PSR consults on better consumer protection
The PSR is calling for views on: how to mandate reimbursing victims of APP scams: It thinks that a combination of requiring banks and building societies to publish their APP scam data, having a standardised approach to...
FCA publishes retail banking portfolio letter
FCA’s portfolio supervision strategy letter for the retail banking sector focuses on the challenges of the pandemic. It notes the critical role of retail banks and is pleased that on the whole the sector has...
Up next from FCA
FCA’s latest Policy Development Update gives very little indication of any imminent papers, promising only the consultation on exit fees in investment platforms and comparable firms, feedback on the SEAR and a...
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...
EBA begins 2021 stress test
Following the postponement of the 2020 exercise due to the pandemic, this year’s EU-wide stress test will provide valuable input for assessing the resilience of the European banking sector. The results might also...
LSB publishes CRM Code review
The LSB has published its review into the CRM Code for APP scams. The review of the voluntary code looked to see how effective it has been in providing greater consumer protection, and to see whether it has had an...
FCA tells firms not to close branches during lockdown
FCA is concerned that some banks and building societies are going ahead with their plans to close branches despite the new lockdown, or are announcing new branch closures. It reminds them of its guidance published in...
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 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...
Quincecare Duty is limited to agents of the customer and does not extend to individual customers
In a decision that will be welcomed by the banking industry, the High Court in the case of Philipp v Barclays Bank UK plc [2021] EWHC 10 (Comm) has confirmed that the “Quincecare Duty” placed upon banks is...
PRA consults on depositor protection I/D verification
PRA is consulting on new rules aimed at avoiding FSCS eligibility issues arising if a firm has failed to conduct adequate AML checks. It stresses the changes are intended merely to provide a backstop if firms’...
UK Government announces expansion of the Dormant Assets Scheme
The UK Government has announced the expansion of the Dormant Assets Scheme, which is a major boost as the UK recovers from the coronavirus pandemic. £800 million is set to be made available to communities across the UK...
Angie BamboulisPRA consults on supervision of international banks
The PRA is consulting on proposals regarding its approach to supervising the UK activities of PRA-authorised banks and designated investment firms that are headquartered outside of the UK. This includes those firms...
FCA publishes Covid resilience survey results
FCA has published the results of the survey it sent to 23,000 forms on the real-time effect the pandemic is having on their resilience. Among its conclusions are: failures of firms due to the economic downturn are...
Pay.UK reports on impact of Covid-19 on bank account switching
Pay.UK has published its report on how the Covid-19 pandemic has affected switching attitudes and behaviours in the UK. The report explains that research commissioned by the Current Account Switch Service (CASS)...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
PRA finalises BRRD II rules
PRA has published its policy statement and final guidance on BRRD II. it has also published its final policy in relation to the amended Contractual Recognition of Bail in and amended Stay in Resolution parts of its...
BoE Financial Stability Report
The Bank of England published the Financial Stability Report for December. The report sets out the Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or...
PRA issues statement on capital distributions
In July, the PRA announced its intention to undertake an assessment of large UK banks’ distribution plans for 2020. The PRA has now completed that assessment and, noting that economic uncertainty as a result of...
EBA reports on Basel III implementation
The EBA has published a report on the impact of implementing the final Basel III reforms in the EU. The results do not reflect the economic impact of the Covid-19 pandemic as the reference date for this assessment is...
PRA consults on designating firms within certain banking UK consolidation groups
The PRA has published a consultation paper setting out its proposed approach to designating entities within certain banking UK consolidation groups as responsible for ensuring that consolidated prudential requirements...
EC speaks on evolving payments market
In her speech, EU Commission Executive Vice-President Margrethe Vestager discussed the impact of the Interchange Fee Regulation and noted that: technology has resulted in a proliferation of payment methods available to...
FCA and PSR Terms of Reference on Access to Cash
On 16 June, the PSR and FCA set out its plans to work with the industry and develop shared solutions to deliver appropriate and sustainable access to cash that meet consumers’ needs, including responding to changing...
UNEP FI Consultation on Guidance: Reporting on Principles for Responsible Banking
The United Nations (UN) Environment Programme Finance Initiative (UNEP FI) has published a consultation paper on a draft guidance document designed to support signatories of the Principles for Responsible Banking with...
EBA Guidelines on legislative and non-legislative moratoria
The EBA has announced the reactivation of its Guidelines on legislative and non–legislative moratoria on loan repayments applied in the light of the COVID-19 pandemic. The aim of the Guidelines is to ensure that...
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