Emma RadmoreThe 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...
Category - Retail Banking
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 ...
Hannah FrostPrime 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...
Lucy HadrillLSB 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...
PRA confirms CRDV statement date
PRA has issued a statement explaining to firms when they can expect further information on the implementation of CRD V. PRA issued two separate consultations, the later of which closed on 17 November. It plans to...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
Pay.UK reports on impact of COVID-19 on SME business banking
Pay.UK published its findings from its research into the impact of COVID-19 on SME business banking. Overall, SMEs are more likely to say that they are satisfied (rather than dissatisfied) with their bank’s...
Regulators update on FS Bill reforms
Treasury, PRA and FCA have updated the industry on the planned timelines for the introduction of the UK Investment Firms Prudential Regime and implementation of remaining Basel 3 reforms. The targeted implementation...
Latest Denizbank ruling on interpretation of PSD2
The First Chamber of the Court of Justice of the EU (CJEU) has made a preliminary ruling in the case of Denizbank AG v Verein fur Konsumenteninformation (Case C-287/19) [ECLI:EU:C:2020:897]. It has clarified the...
FOS publishes Q2 information
FOS has published complaints figures for July – September 2020 (Q2 2020). It: received 69,000 complaints in total received over 5,900 Covid-related complaints referred over 9,000 complaints to an Ombudsman upheld...
EBA reminds firms to finalise Brexit plans
EBA has reminded firms that, from the end of the transition period, UK firms can no longer provide services to EU customers on a passporting basis. It notes that: UK financial institutions offering services to EU...
FCA updates on EEA regulator Brexit guidance
FCA has put together an information page sharing links to the websites of EEA regulators on which they have published guidance about the effects of Brexit on UK firms operating in their jurisdictions. Some of the pages...
Covid-19 measures weekly summary
It’s been a while since we needed to do a digest of these. In the light of the new English lockdown and the expiry of various measures, the last week has seen: FCA consultation on updated guidance for consumer...
EBA urges consumers first in POG supervision
EBA has published a report encouraging firms to put consumers’ interests first when they are applying product oversight and governance arrangements. It has found this focus is lacking in many firms. This report...
EBA publishes SREP expectations on TF/ML risks
EBA has published its Opinion in which it sets out how prudential supervisors should consider ML/TF risks as part of the SREP process. The Opinion is another expression of EBA’s exhortation on supervisors to...
Basel Committee reports on Basel III implementation
The Basel Committee on Banking Supervision has published a report for the G20 Leaders on the implementation of Basel III regulatory reforms and the measures taken by Committee members in response to Covid-19. The report...
LSB publishes guidance on Access to Banking Standard
LSB has published guidance on how firms should be applying the Access to Banking Standard in practice. The standard is designed to ensure customers affected by branch closures get sufficient communication and clarity on...
BoE consults on OCIR policy
The BoE is consulting on various proposals relating to operational continuity in resolution (OCIR) policy. The BoE proposes the following amendments: Changes to the OCIR section of the Approach to Assessing...
PRA consults on amendments to Resolution Assessment rules
The PRA proposes to amend the dates in the Resolution Assessment Part of the PRA Rulebook (Rules) as follows: Resolution Assessment 3.1(1), to reflect that the date by which firms must submit a report of their...
FCA extends deadline for lenders to offer switching options for mortgage prisoners
In its latest update, the FCA acknowledged that Covid-19 has meant that lenders have not been able to offer switching options for mortgage prisoners as quickly as anticipated. FCA rules require administrators and...
FCA introduces measures to support mortgage borrowers
The FCA has adopted new measures to support closed book and interest-only/ part-and-part mortgage borrowers, some of whom may be mortgage prisoners. The measures are: a new rule that will make it easier for lenders to...
Financial Markets Law Committee publishes report on LIBOR transition
The Financial Markets Law Committee (FMLC) has today published a report entitled “LIBOR Transition – Issues of Legal Uncertainty”. The paper is intended to survey the uncertainties in the context of...
Rebecca JonesFinancial Services Bill starts Parliamentary passage
The Financial Services Bill was introduced into Parliament on 21 October. The key aims of the Bill are: to implement the remaining Basel 3 standards; to create a more proportionate investment firms’ prudential...
FSB publishes global transition roadmap for LIBOR
On 16 October 2020 the Financial Stability Board (FSB) published a global transition roadmap for LIBOR. The FSB coordinates at the international level the work of national financial authorities and international...
PRA consults on CRD V
PRA is consulting on further proposed changes to its rules, supervisory statements and statements of policy to implement elements of CRD V, and also to make changes to the UK framework to take account of parts of CRR II...
FCA looks at banking data for understanding consumer wellbeing
FCA has published an occasional paper in which it looks better to understand consumer financial wellbeing through looking at responses to surveys, analysing banking data and considering objective factors most closely...
HMT consults on financial services regulatory framework post-Brexit
HM Treasury has published a consultation paper in relation to Phase II of its Financial Services Future Regulatory Framework Review. HMT is seeking views on proposals for the financial services regulatory framework post...
FSB issues final report on CIRR toolkit
The Financial Stability Board (FSB) has published its final report on a toolkit of effective practices for financial institutions’ cyber incident response and recovery (CIRR). The toolkit aims to assist financial...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
Lords responds to HMT on equivalence
Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...
Access to Cash: Call for Evidence launched
HM Treasury today published a call for evidence setting out the Government’s legislative aims for protecting access to cash in the UK. The paper sets out that the Government is aiming to maintain a sustainable...
Current accounts for expats post-Brexit
The Treasury Committee recently wrote to the FCA seeking clarification on the notice period that should be given to current account customers who are being told their accounts will be closed once the transition period...
HMT writes to House of Lords on equivalence
The Economic Secretary to HM Treasury, John Glen MP, has responded to the House of Lords EU Services Sub-Committee’s queries on UK-EU regulatory cooperation for UK financial services post-Brexit. In its letter to...
Overdrafts and Coronavirus: Finalised FCA Guidance
Further to the draft guidance which we wrote about on the 16th, the FCA has today published its finalised guidance which is to take effect from 2nd October. The guidance sets out the FCA’s expectation on how firms...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
EC adopts retail payments strategy
The European Commission (EC) has adopted a Retail Payments Strategy as part of its new Digital Finance Package. The strategy draws on the findings of the public consultation launched earlier this year and identifies key...
EBA phases out repayment moratoria guidelines
EBA has decided to go ahead with its plan to phase out its Guidelines on legislative and non-legislative payment moratoria from the end of September. It says the Guidelines have provided the necessary flexibility, and...
EBA wants clarity on aspects of “credit institution” definition
EBA has published an Opinion noting its views that several aspects of the current definition of “credit institution” could benefit from clarification – not least the notions of “deposit”...
Regulatory Initiatives Grid heralds return to “normality”
FCA has published the second edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. The grid, first published in May, is aimed to help firms see upcoming regulatory work...
Overdrafts and Coronavirus: Additional Guidance for firms
The FCA has published the additional guidance for firms on the next stage of help for consumers. The guidance hopes to ensure that firms provide tailored support to consumers of arranged overdrafts who continue to face...
Consumer Credit and Coronavirus (Additional Guidance for Firms)
The FCA has published the additional guidance for consumer credit firms on the next stage of help for consumers. The guidance covers credit cards, loans, rent to own, BNPL, pawnbroking, motor finance and HCST. The FCA...