Caroline StevensonFCA 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...
Category - Retail Banking
Jonny Williams
Scott NodderPRA 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’...
Emma Radmore
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...
Lucy HadrillFCA 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...
FCA finalises access to cash guidance
FCA has published its finalised guidance on what firms should do if considering closing branches or ATMs, or starting to charge for ATM use. The guidance makes it clear firms must keep FCA informed of any relevant...
In Conversation on Debt
On 10 September we hosted the latest Retail Banking Mixer in our In Conversation series. This session focussed on debt in the retail banking sector and we were joined by Mayoor Patel, Head of Legal (Retail &...
Breathing Space: Updated Regulations
A new version of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 has been published today. This version of the Regulations have been laid...
Bundling warning from the CMA
The CMA has published a letter which highlights an issue related to implementation of the Bounce Back Loan Scheme at pace. In 2002, a number of banks entered into undertakings with the CMA which confirmed that they...
EVENT: In Conversation on Debt
Join us on Thursday 10 September 2020 at 10am for our next Retail Banking Mixer – In Conversation. This webinar will focus on debt in the retail banking sector (including breathing space) and you will have the...
FCA publishes modification by consent for CTF moves
FCA has published a modification by consent to allow Child Trust Fund providers to move dormant CTFs into protected account ISAs and service them in circumstances when they are unable to contact the client.
PRA issues statement on IFRS 9 and capital requirements
The PRA has published a statement reflecting on the FCA’s draft updated guidance for firms in relation to mortgage payment deferrals, which was published on 26 August 2020. The guidance explains that if, at the...
Amelia GreenEBA seeks views on Regtech
EBA has published a RegTech industry survey to seek views on how RegTech solutions are being, and could be, used. It wants to understand current activity, raise awareness of it, and have information to inform future...
Up next from FCA
FCA’s latest Policy Development Update heralds: consultation on financial crime reporting during Q3; PS on debt advice levy rates in Q4; CP on exit fees in investment platforms and comparable firms during 2021; PS...
CMA revokes HSBC directions
The 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...
Basel consults on operational risk and resilience
The Basel Committee is consulting on proposals for principles for operational resilience and updates to its principles for the sound management of operational risk. The updates will reflect the growth of technology...
PRA 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 agrees tentative 2021 stress test
EBA has agreed on a tentative timeline and sample of the 2021 EU-wide stress test, which it expects to launch a the end of January 2021 and the results be published at the end of July 2021. The test will be carried out...
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...
FCA 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...
EBA 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...
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...
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...