Emma RadmoreThe FCA’s 2015 Cash Savings Market Study found that the cash savings market is not operating effectively for many consumers, especially those with easy access cash savings accounts or easy access cash ISAs. The...
Category - Retail Banking
Caroline Stevenson
Queen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
Europe reaches agreement on ‘green taxonomy’ regulation
Negotiations between the European Parliament and Council have reached agreement on environmental objectives for determining the sustainability of an economic activity. The Commission proposal for a ‘taxonomy...
Rachael PrestonFPC publishes latest Financial Stability Report
In its latest Financial Stability Report, the FPC has published its latest stress testing results and current view on the stability and state of the UK financial system. In addition to its comments on open-ended funds...
Jonny WilliamsFOS consults on plans and budget
FOS has published its consultation on its strategic plans and budget for 2020/2021. Next year, it expects to receive 245,000 complaints and resolve 290,000 (just under half in each case relating to PPI). It expects to...
Basel Framework published
BIS has published a consolidated version of the standards prepared by the Basel Committee on Banking Supervision. The resulting Basel Framework pulls together the 14 standards and also includes current, historic and...
BIS considering prudential treatment for crypto-assets
BIS is inviting responses to a discussion paper on the design of a prudential treatment for crypto-assets, in recognition of the growth in these types of products and related services, and consequential and resulting...
Roseyna JahangirEPC notes key payment threats
The European Payments Council has published its third annual Payment Threats and Fraud Trends report. The report discusses the risks and trends, including those caused by: social engineering; malware; “advanced...
Extension of the Senior Managers and Certification Regime comes into force
The FCA has extended the Senior Managers and Certification Regime (SM&CR) to solo-regulated firms, including senior managers and certification staff in those firms. The SM&CR already applies to the banking and...
Up next from FCA
FCA’s latest Policy Development Update indicates several key publications scheduled for Q1 2020, including: potential policy statement on general insurance value measures reporting; consultation or discussion...
Regulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
PRA to modernise outsourcing and risk management expectations
In the light of the development of various European Guidelines regarding outsourcing requirements, as well as recent practical ‘failures’ such as IT systems going down, the PRA is consulting on proposals to...
CMA confirms amendment of Retail Banking Market Investigation Order 2017
Following the CMA’s consultation on amending the Retail Banking Market Investigation Order 2017, the CMA has confirmed the removal of the provisions in and related to Part 6 that are effectively duplicative of new...
Mark Carney named UN’s Special Envoy for Climate Action and Finance
On 1 December 2019 the United Nations Secretary-General António Guterres announced the appointment of the Governor of the Bank of England, Mark Carney, as UN Special Envoy for Climate Action and Finance. Mark Carney...
APP scams voluntary Code extended to March 2020
In May 2019 UK Finance launched a voluntary industry Code which set new standards for the prevention of authorised push payment (APP) scams, where victims are tricked into sending money to a fraudster. Victims who are...
Banks told to refund customers after CMA action
The CMA has taken action against HSBC and Santander after they broke an Order requiring them to send customers text alerts before banks charge them for going into an unarranged overdraft, giving them time to take action...
PRA fines banks £43.9m for regulatory reporting failures
The PRA has announced that a combined penalty has been imposed on three Citi entities of £43.9 million. The penalty arises from failings in their internal controls and governance arrangements, resulting in incomplete...
FCA publishes ‘approving financial promotions’ webpage
In the light of its new temporary restrictions on the financial promotion of ‘mini-bonds’, the FCA has provided guidance for firms approving the financial promotions of unauthorised persons. The new page on...
FCA: New Form (cyber resilience questionnaire)
The FCA has published a new cyber resilience questionnaire. The questionnaire must be completed by competent parties and signed-off at board level as a “true and accurate reflection of the firm’s cyber...
Financial Inclusion
On Tuesday night, we hosted our first ever Talking Money event in partnership with the Scotsman newspaper in our Edinburgh office. The event focused on the topic of tackling financial exclusion in Scotland. The...
BIS report on Open Banking and APIs
BIS has published a report that looks at the growing trend in many jurisdictions towards an open banking. In particular, the report focuses on those aspects relating to customer-permissioned data sharing, ie where...
FCA addresses LIBOR transition issues
As part of its work on the transition from LIBOR from 2021, the FCA has published a webpage covering conduct risks arising from the transition. The matters covered are set out in question and answer format, addressing...
Reserve your place: Tackling Financial Exclusion
Join our expert industry panel for an evening of networking and discussion focused on delivering an inclusive financial sector for Scotland. Help shape the conversation as we discuss: Are we too obsessed with a cashless...
Up next from FCA
FCA’s latest Policy Development Update promises a number of publications before the end of the year, including: feedback on the Investment Platforms Market Study remedies; consultation on policy proposals for next...
FCA makes new rules
FCA’s latest Handbook Notice summarises various instruments made at the end of September and October: the Overdrafts (Information and Tools) Instrument 2019 takes effect on various dates to 6 April 2020, and...
FCA warning to CMCs – ‘play fair with PPI claims’
The FCA has issued its latest ‘Dear CEO‘ letter, this time to CMCs in relation to PPI complaints. The FCA has recognised that lenders are facing very significant operational challenges in being able to deal...
Scott NodderUK Finance responds to IT failures in the financial services sector
UK Finance has responded to the Treasury Committee’s report into IT failures in the financial services sector. The Treasury Committee criticised the unacceptably high level of failures and called on regulators to...
FCA confirms TPR extension
FCA has confirmed that: firms no longer need to implement their Brexit emergency plans for 31 October; and the TPR window will be open for notifications from fund managers until 15 January 2020 to let FCA know if they...
EBA reports on potential barriers to cross-border banking and payment services
The EBA has published a report identifying potential impediments to the cross-border provision of banking and payment services in the EU. The report was developed under the EBA’s FinTech Roadmap, and calls on the...
FCA speaks on future of regulation
Nausicaa Delfas spoke on the future of UK financial regulation post-Brexit. She said FCA continued to prepare for Brexit, whatever form it takes and whenever it happens, and referenced its preparations for a no-deal...
EBA recommends enhanced online disclosure requirements
The EBA has issued an Opinion directed to the EC, setting out recommendations to revise the scope and consistency of disclosure requirements in EU law to take account of the increasing use of digital marketing channels...
SRB consults on banks resolvability best practice
The Single Resolution Board has opened a public consultation on its proposed ‘Expectations for Banks’, which sets out at a general level the capabilities banks will be expected to demonstrate in order to...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
EU and Japan hold first joint financial regulatory forum
The Joint EU-Japan financial regulatory forum has held its inaugural meeting. Topics covered at the meeting included: the regulatory cooperation framework under the Japan-EU Economic Partnership Agreement, and the...
FCA publishes feedback statement on climate change disclosures
The FCA has published its proposals for its future work on climate change and green finance, following responses to its Discussion Paper in 2018 . In its work, the FCA will be focusing on three outcomes: Issuers provide...
FCA updates change in control pages
FCA has updated its guidance on how to submit an application for change in control. The page now includes useful tips on what FCA needs to know to deal with the application quickly, and links to all the required forms.
FCA provides Brexit preparations update for firms
The FCA has published an update on the steps firms will be expected to take in the event that there is a hard Brexit. In particular, the FCA reminds EEA passporting firms of the need to notify the FCA by 30 October if...
Payment Systems Regulator invites comments on LINK Specific Direction 8
The PSR is asking for views to be submitted on the operation of Specific Direction 8. This was given to LINK at the end of last year, and is focused on the maintenance of a broad geographic spread of free-to-use ATMs...
Queen’s Speech suggests post-Brexit FS Bill
Among the list of legislative proposals referred to in the Queen’s Speech is laws that will provide “certainty, stability and new opportunities” for the financial services sector through a Financial...
BoE to stress test for climate change risks
The Governor of the BoE addressed the inaugural Task Force on Climate-related Financial Disclosures (TCFD) summit in Tokyo yesterday. In his speech, Mr Carney warned of the growing challenges climate change brings, and...
European Banking Authority publishes Communication on preparation for Brexit
The European Banking Authority (EBA) has published a Communication on the remaining issues for financial institutions ahead of the UK’s departure from the EU. In its Communication the EBA urges continued progress...
Government publishes No-Deal Readiness Report
The Government has published its “No-Deal Readiness Report” detailing the UK’s preparedness ahead of Brexit on 31 October. The Report contains a section on financial services which, amongst other...
Up next from FCA
FCA’s latest Policy Development Update heralds the following publications before the end of the year: consultation on investment platforms market study remedies; policy statement on OPBAS fees; consultation on...
Reminder: EBA Outsourcing Guidelines are in Force
We previously reported that the EBA had published its revision to the European Banking Supervisors’ 2006 Guidelines on outsourcing arrangements. The revised guidelines set out a framework for outsourcing by banks...
Guidance on unfair consumer terms Directive
The European Commission (the “Commission”) has issued guidance on the interpretation and application of Council Directive 93/13/EEC on unfair terms in consumer contracts (“UCTD”) The Commission...
FCA publish PS19/25: Overdraft Pricing and Competition Remedies
The FCA published Policy Statement (PS19/25) on 2 October 2019 which sets out rules being put in place to make overdraft fees clearer and more transparent. The rules will come into force on 6 April 2010 and are...
ESAs Joint Committee defines its priorities for 2020
The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) (collectively “ESA”) has published its 2020 Work Programme setting out its strategy in the areas of cross-sectoral risk...
PRA strengthens individual accountability expectations
The PRA has published PS20/19, ‘Strengthening individual accountability: resolution assessments and reporting amendments’. This Policy Statement sets out: feedback to responses to CP 12/19, ‘Strengthening...
BoE reports on 2018 cyber simulation exercise
BoE has reported on the outcomes of its 2018 sector wide exercise (SIMEX), which tested how the UK finance sector would react to a prolonged and broad cyber attack. The exercise, which took place in real time, involved...
EC sustainable finance classification system to be developed
The Council of the European Union has agreed a position on the proposed EU-wide sustainable finance taxonomy regulation. This would develop a common language for assessing what economic activities can be considered...
Banking industry commits to climate change action
130 international banks, representing one third of the global banking sector by NAV, have signed the new Principles for Responsible Banking. This initiative commits their firms to strategically align their business...
EBA starts 2019 transparency exercise
The EBA has launched this year’s transparency exercise, which will lead to the release in November of up to 2.2 million data points collated from EU supervisory reporting data. The data that will be released for...
UK Finance pledges support for UN responsible banking
UK Finance has pledged its support for the United Nations Environment Programme Finance Initiative’s ‘Principles for Responsible Banking’. The six principles show how the banking industry can make a...
FCA updates on Brexit preparations
In a recent speech, Andrew Bailey, the chief executive of the FCA, provided an update on the FCA’s state of preparation for Brexit, and in particular for a no-deal, no-transition Brexit scenario. However, while Mr...
No more ink? Law Commission confirms validity of electronic signatures
A Law Commission report confirms that electronic signatures can be used to execute documents as an alternative to wet ink signatures in most circumstances. There are some important exceptions and the report only relates...
Suzanne GadoCMA consults on amending Retail Banking Market Investigation Order 2017
In the light of the forthcoming FCA rules on overdraft notifications, the CMA is consulting on a provision decision to vary the Retail Banking Market Investigation Order 2017, to remove provisions in Part 6 that are...
PRA revises Branch Returns for international banks
The PRA has published Policy Statement 17/19, confirming changes to the Return that branches of international banks must complete, and associated reporting guidance. The first revised Returns will need to be submitted...
FCA offers Brexit help
FCA has set up a dedicated phone line for firms needing to ensure they are prepared for a no-deal Brexit, and also worked to signpost all its online resources. It expects firms to have planned properly for it. It notes...
PRA consults on update to PIN process
The PRA is proposing amendments to its Pre-Issuance Notification regime for capital instruments within the scope of CRR. The proposed amendments reflect changes arising from CRR II, and also the PRA’s experience...
EBA to provide guidance on use of CRR ‘legacy instruments’
The EBA has confirmed that it will be developing communications aimed at providing clarity on the appropriate treatment of capital instruments that, for the purposes of the CRR, are currently classified as ‘legacy...
FCA updates on consultations and feedback
The latest Policy Development Update highlights a number of papers due before the end of 2019: feedback on the investment platforms market study remedies; policy proposals on regulatory fees and levies; permitted links...
ECB speaks about work and priorities for year ahead
The Chair of the Supervisory Board of the ECB has addressed the European Parliament’s Economic and Monetary Affairs Committee at its first ordinary hearing in 2019. Comments covered: key supervisory priorities for...
EC calls for action with publication of no-deal Brexit checklist
The EC is urging EU businesses and citizens to consider whether they are prepared for the UK leaving the UK on ‘no-deal’ terms on 31 October, reminding them in this scenario there will be no transition...
CMA takes action over PPI reminder failures
CMA has ordered RBS and Santander to take remedial action after they did not send, or sent inaccurate annual PPI reminders to customers. The banks must now appoint independent bodies to audit their PPI processes and put...
FCA publish data on current account providers
The FCA has today published the table of data provided to them by current account providers. This data allows consumers and small businesses to compare the services provided by each of the different brands. The data...
CMA revokes Lloyds Directions
CMA has revoked the Directions it gave to Lloyds Banking Group on 1 April as part of the Retail Banking Market Investigation. The Directions had required Lloyds (among others) to take various actions to deliver App-to...
ECB calls for step up in Brexit preparation
ECB is concerned that banks have not progressed as far with their Brexit planning as they had originally indicated they would. ECB notes that it considers the risks of a no-deal Brexit to the overall euro area financial...
Deposit Guarantee Schemes Directive Opinion published
The EBA has published the Opinion on the implementation of the Deposit Guarantee Schemes Directive (DGSD) that it is mandated to submit under article 19(6) of DGSD. The proposals set out in the Opinion include: a...
FCA updates skilled persons statistics
FCA has released the figures for skilled persons reports it commissioned in Q1 2019/20. It commissioned 9 reports in total – of which 3 related to each of retail lending and wholesale financial markets, 2 to...
Feedback on EBA Single Rulebook published
The EBA has published the results of a review exercise it conducted to assess the utility of the Single Rulebook. As might be expected, overall feedback from the competent authorities and selected industry...
EBA publishes Basel III implementation analyses
In the run up to full implementation of Basel III in the EU, the EBA has published an implementation impact study and policy advice set, covering securities financing transactions, operational risk, output floor and...
Up next from FCA
The latest version of FCA’s Policy Development Update highlights: expected feedback on Investment Platforms Market Study Remedies by the end of the year; potential policy statement on general insurance value...
Treasury Committee calls for FCA powers on perimeter changes
The Treasury Committee has unanimously called for FCA to be given formal powers to recommend changes to the regulatory perimeter. It says the current informal system allows the grey area between regulated and non...
Publication of AG Opinion on consequence of removing unfair terms in consumer contracts
The European Court of Justice has published the AG’s Opinion in a case concerning the effect of a declaration of unfair terms for the purposes of the Unfair Contract Terms Directive (in UK law as the Consumer...
BoE and PRA confirm Resolvability Assessment Framework
Following the consultation at the end of last year, the Bank of England and PRA have published the final version of their proposals for resolvability. The Resolvability Assessment Framework applies to certain UK banks...
EC sets out position statement on equivalence decisions
The EC has published a communication about equivalence decisions (the timing of which is no doubt entirely unrelated to the ascension of pro-Brexit Boris Johnson to the Prime Ministership of the UK). The communication...
FCA publishes SMCR final rules
FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...
BSB publishes Consumer Framework
BSB has published its Consumer Framework designed to show what good banking outcomes look like to consumers. Following consultation feedback, the BSB has made some adjustments to its draft principles and examples of...
Regulators tweak exit arrangement rules
FCA has announced an extension to the directions made under its temporary transitional power which it introduced in February. The direction will now give firms until 31 December 2020 to make the necessary adjustments...
Call for views on Access to Cash research
The Payment Systems Regulator has published the results of its commissioned research into how people and businesses are using cash in today’s landscape. It found that despite the transition to and increase in...
Commission adopts unfair terms guidance
The European Commission has adopted a guidance note on the Unfair Contract Terms Directive. The note covers: the objectives and scope of the directive; key terminology such as “supplier” and...
EBA publishes updated report on CET1 instruments
As part of its mandate under CRR to monitor and report on capital instruments, the EBA has published an update to its CET1 Report along with an updated list of instruments. The EBA notes the inclusion of 16 new forms...
Updated FCA and PRA MoU published
The FCA and the PRA have updated the MoU setting out the relationship between the two regulators and the way in which they respectively operate, particularly in common areas. The MoU was first published at the time of...
EBA FinTech report published
The EBA has analysed the regulatory landscape for FinTech firms, both in terms of activities around the regulatory perimeter and within authorisation. The report sets out the findings of this analysis, including...
FCA publishes feedback statement on fair pricing
In the context of ongoing work by both the FCA and CMA on fair pricing and loyalty penalties, the FCA has published a feedback statement setting out a framework for how it will evaluate the fairness of a given pricing...
Lending Standards Board confirms threshold increase for small businesses
The Lending Standards Board (LSB) has announced that from the Standards of Lending Practice for business customers are to apply to businesses with a turnover of up to £25 million, from the previous £6.5 million...
FCA discusses AI in financial services
In a recent speech, Christopher Woolard of the FCA considered three lenses through which the FCA views the issues relating to AI: what are new, and what are existing issues; how to ensure that AI creates value for...
FCA invites feedback on Gabriel replacement
The FCA has announced that it is planning a replacement for Gabriel, its data collection system. It has therefore asked current Gabriel users to complete a feedback survey to provide views that can be considered in the...
The Government responds to the Treasury Committee Report on Consumers’ Access to Financial Services
The Government’s response to the Treasury Committee report was published on 11th July. The document sets out the Government’s response to each of the report’s conclusions and recommendations. The key...
FCA Multi-firm review: Retail Banking: Business Continuity Planning
As part of this exercise, the FCA assessed Firms’ ability to: plan for and manage business continuity events implement business continuity contingencies including communications recover and return to normal...
ESA evaluates cross-border supervision of retail financial services
A report published by the Joint Committee of European Supervisory Authorities, ie the EBA, ESMA and EIOPA, has reviewed the current landscape of cross-border supervision, in particular in the light of the regulatory...
BEIS review of Consumer Contracts (Information, Cancellation and Additional Charges) Regulations
The Department of Business, Energy and Industrial Strategy has completed its 5 year review of the Consumer Contracts Regulations. While these regulations broadly exclude financial services, they may be engaged where...
FCA publishes annual report
FCA’s Annual Report and Accounts for 2018/19 lists its highlights from the past year, and appends several reports from specific business focuses. FCA notes that alongside deciding over 4,000 applications for...
UK Finance publishes payment account service guide
On 1 July, UK Finance published a voluntary good practice guide to help credit institutions providing access to payment account services and those seeking to access such accounts. The guide recommends that: all relevant...
CMA launches digital advertising market study
The CMA has launched a study into online platforms and digital advertising. The study will focus on harm caused by consumers in connection with three areas of digital advertising: the extent online platforms (such as...
Alex LouchUK financial regulators publish climate change Joint Declaration
The FCA, PRA, TPR and FRC have jointly issued a declaration reiterating their commitment to work on the enhancement of climate-related disclosures. The Joint Declaration also welcomes the UK’s Green Finance...
UK government launch Green Finance Strategy
HM Treasury and BEIS have launched a Green Finance Strategy to meet the government’s target of reducing emissions to net zero by 2050, to boost sustainable investment, and to help make the UK a ‘green...
CMA Reviews Part 6 of Retail Banking Market Investigation Order 2017
The CMA has announced that it will conduct a review of Part 6 of the Retail Banking Market Investigation Order 2017 (the Order). The Order, which came into force in February 2018, requires qualifying banks to...
Angie BamboulisFCA summarises new rules
FCA’s latest Handbook Notice confirms the following rule changes: the changes to, mainly MIPRU, MCOB and SUP that took effect on 4 June in relation to crowdfunding platforms that offer home finance products, where...
BoE Governor outlines plans for a ‘new economy’
In his recent speech at Mansion House, Mr Carney addressed what he saw as an emerging ‘new economy’, that would be driven by a ‘new finance’. He outlined measures taken by the Bank of England to...
“Not all about Brexit” says Philip Hammond
Philip Hammond, speaking at the Mansion House dinner, highlighted the many ways in which a no-deal Brexit would be damaging for the financial services industry and the UK as a whole. He noted also the political...
CMA may be given enhanced powers to impose fines for consumer law breaches
The government has announced that it will consult on whether the CMA should be given the power to fine businesses directly if they have breached consumer law, for example through the ‘loyalty penalty’ and...