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...
Author - Amelia Green
Amelia Green
Changes to the provision of US dollar repo operations announced
The Bank of England has confirmed that it and other central banks have jointly decided that the frequency of 7-day US dollar operations will be reduced from three times per week to once per week. This operational...
ESMA recommends priority topics in Commission’s AIFMD review
The European Securities and Markets Authority (“ESMA“) has written to the European Commission (“the Commission“) highlighting areas to consider during its review of the Alternative Investment...
EBA responds to the Commission’s AML/CFT Action Plan
The European Banking Authority (“EBA“) has published its response to the European Commission’s Action Plan for a comprehensive Union policy on preventing money laundering and terrorism financing. The Action...
Treasury approves JMLSG Guidance on pooled client accounts and cryptoasset exchange providers
The Joint Money Laundering Steering Group (“JMLSG“) has received HM Treasury ministerial approval for its guidance material published in June/July this year. This includes the new Sector 22 Cryptoasset...
UK Finance data shows consumers paid down credit card bills during lockdown
New data released by UK Finance reveals that outstanding balances on credit cards contracted by 12.6 per cent in the year to May, as cardholders used the lockdown to pay down bills. May also saw credit card spending by...
European Commission publishes Brexit Readiness Checklist for companies
The European Commission (“the Commission“) has published a ‘Brexit Readiness Checklist’ which aims to help EU companies doing business in the UK and/or UK companies doing business in the EU to...
PRA and FCA’s joint Climate Financial Risk Forum meets for the fourth time
The Bank of England has confirmed that the FCA and PRA hosted the fourth meeting of the Climate Financial Risk Forum (“CFRF“) in July 2020. The Forum discussed how to publicise and promote use of the CFRF...
Covid-19: EBA updates its work programme for 2020
The EBA has published its updated annual work programme for 2020 to reflect all the changes to its activities in light of Covid-19. The EBA says the updated work programme aims to alleviate the burden on banks and to...
Wolfsberg Group publishes SOW and SOF FAQs
The Wolfsberg Group has published FAQs on how Financial Institutions can identify, mitigate and manage money laundering risks by undertaking Source of Wealth and Source of Funds checks on relevant customers, when...
BoE updates webpage on ISO 20022
The Bank of England (“BoE”) has updated its webpage on ISO 20022, the emerging global standard for payments messaging. The update confirms that BoE will go-live with ISO 20022 in April 2022 as currently...
EBA publishes CRR ‘quick fix’ Guidelines and draft ITS
For context, the Capital Requirements Regulation (“CRR“) ‘quick fix’ is part of a series of measures taken by European institutions to mitigate the impact of Covid-19 on institutions across EU Member States...
FCA sets out its views on Employer Salary Advance Schemes
The FCA has published a statement setting out its view of the risks and benefits of Employer Salary Advance Schemes (“ESAS“) and what employers and employees should consider when using them. ESAS are...
Insurance Europe issues consultation response on EU plan for AML policy
Insurance Europe has published its response to a consultation by the European Commission (“the Commission“) on its action plan for a comprehensive EU policy on preventing money laundering (“ML“)...
Commission seeks views on sustainable finance – obligation for certain companies to publish non-financial information
The European Commission (“the Commission“) is asking for feedback on its new EU taxonomy initiative. By way of background, the EU has created a classification system (or ‘taxonomy’) for environmentally...
FCA publishes Insight on Coronavirus and intergenerational difference
FCA has published an Insight article on Coronavirus and intergenerational difference – the emerging picture. The article recognises that early data is beginning to reveal the pandemic’s effects on our...
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...
JMLSG publishes new Guidance on pooled client accounts and cryptoasset exchange providers
The Joint Money Laundering Steering Group (“JMLSG“) has today published two new pieces of Guidance. The Board approved text includes a new annex within Part I: Annex 5-V on Pooled Client Accounts, and a new...
Covid-19: FCA defers commencement date for rules on access to travel insurance
On 27 July, the FCA published the Covid-19: Deferral of Commencement (Access to Insurance) Instrument 2020, which came into force the same day. The instrument amends the Insurance: Conduct of Business Sourcebook...
PRA issues statement on dividend payments and share buybacks beyond 2020
The PRA has issued a statement confirming that it will undertake its assessment of firms’ distribution plans beyond the end of 2020, in Q4 2020. By way of background, in its statement on 31 March, the PRA...
ECB takes steps to ensure pan-European reach for instant payments
On 24 July, the European Central Bank (“ECB“) announced that it has taken significant steps to support the full deployment of instant payments across the euro area which, it says, can be ensured by the end...
UK Supreme Court decision narrows scope of the “reflective loss” principle
On 15 July, the Supreme Court handed down judgment in the landmark case of Sevilleja v Marex Financial Ltd [2020] UKSC 31. The eagerly anticipated decision brings clarity to the “reflective loss” principle...
PRA publishes Policy Statement on Asset Encumbrance
On 27 July, the Prudential Regulation Authority (“PRA“) published its Policy Statement (“PS“) providing feedback to responses received in relation to Consultation Paper (“CP“) 24/19...
IAIS consults on the impact of Covid-19
The International Association of Insurance Supervisors (“IAIS“) is seeking feedback from stakeholders on the implications of Covid-19 on the insurance sector, supervisors and the future work of the IAIS. The...
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...
FCA proposes to extend its updated guidance for insurance and premium finance firms
On 24 July, the Financial Conduct Authority (“FCA“) announced its proposal to extend a series of temporary measures to help customers who hold insurance and premium finance products and who may be in...
EU Council adopts new rules for crowdfunding platforms
The Council of the European Union (“the Council“) has announced that it has adopted new rules to improve the way that crowdfunding platforms operate across the EU. The new framework is part of the capital...
GDPR update: CJEU invalidates EU-US Privacy Shield Framework
We have written an update on the Court of Justice of the European Union’s highly anticipated decision in the Schrems II case.
Complaints Commissioner publishes Annual Report
The Financial Regulators Complaints Commissioner (“FRCC“) has published its Annual Report (“the Report“) covering the period from 1 April 2019 – 31 March 2020. In the Report, the...
EBA backs Renewed Sustainable Finance Strategy
The European Banking Authority (“EBA“) has published a letter it sent to the European Commission (“the Commission“) on 15 July, in which it says the European Supervisory Authorities...
LSB launches review of the CRM Code for APP scams
The Lending Standards Board (“LSB“) has published a consultation document to launch a full review of the effectiveness of the Contingent Reimbursement Model Code (“CRM Code“) and its impact on...
FCA takes action against unauthorised mortgage and SRB agreements
The Financial Conduct Authority (“FCA“) has issued a statement confirming that it has commenced proceedings in the High Court against London Property Investments (U.K) Limited (“LPI“), NPI...
ESMA issues second report on sanctions under MiFID 2
The European Securities and Markets Authority (“ESMA“) has published its second report on sanctions and measures imposed under MiFID 2, which provides an overview of the applicable legal framework and the...
PRA consults on updating SM&CR Forms
The Prudential Regulatory Authority (“PRA“) has issued a consultation paper (“CP“) setting out its proposals to make minor amendments to the PRA Rulebook, the Notifications Form and the Senior...
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...
FCA will not apply EIOPA cloud outsourcing guidelines
FCA has notified EIOPA that the EIOPA Guidelines on outsourcing to cloud service providers for insurance and reinsurance undertakings are not applicable to regulated activities within the UK’s jurisdiction, as they will...
CMA orders insurance provider to fix PPI breaches
The Competition Markets Authority (“CMA“) has taken action against Cardif Pinnacle, and has written to Nationwide and Lloyds, after they failed to provide accurate annual Payment Protection Insurance...
CJEU considers the application of the Distance Marketing Directive
In KH v Sparkasse Südholstein the European Court of Justice (“CJEU“) considered the application of Article 2(a) of the Distance Marketing Directive (2002/65/EC) (“DMD“) to agreements concluded at...
EP issues draft report on further development of the CMU
On 19 June, the European Parliament (“EP“) published a draft report on the further development of the Capital Markets Union (“CMU“), improving access to capital market finance, in particular by...
Covid-19: EP eases rules to encourage lending to companies and households
Members of the European Parliament (“MEPs“) have approved more flexibility in EU banks’ prudential rulebook to focus on lending to the Covid-19-stricken economy. Aiming to strike a balance between a robust...
EIOPA publishes findings of the Regular Supervisory Report
On 18 June, the European Insurance and Occupational Pensions Authority (“EIOPA“) published the findings of its peer review of the Regular Supervisory Report (“RSR“). The review examined how and...
BoE and PRA publish 2020 Annual Reports
On 18 June, the Bank of England (“BoE”) published its Annual Report and Accounts and its Asset Purchase Facility Fund Limited Annual Report for the period between March 2019 – February 2020. It also...
PSR publishes updated Powers and Procedures Guidance
The Payment Systems Regulator (“PSR“) has published its revised Powers and Procedures Guidance (“PPG“) and a revised version of its Interchange Fee Regulation Guidance (“IFR“) which...
Covid-19 – BoE sends Dear CEO letter on distribution of profits
On 4 June, the Bank of England (“BoE“) published a Dear CEO letter that it had sent to all regulated UK Financial Market Infrastructures and Specified Providers (“FMIs”) setting out its expectations on the...
EBA issues Opinion on obstacles to the provision of TPPs under the PSD2
The European Banking Authority (“EBA“) has published an Opinion on obstacles to the provision of third party provider services (“TPPs”) under the Regulatory Technical Standards...
FCA issues update on branch access for essential services
FCA has issued an update to its previous statement of 25 March, setting out its expectations of firms as they reinstate services in line with government guidance. The update also gives advice for consumers who may need...
New BBRS consults public and stakeholders ahead of launch
On 4 June, key questions on the framing of a new service set up to resolve banking disputes for SME customers were published for consultation. The Business Banking Resolution Service (“BBRS“) is seeking...
BoE speech – Covid-19, financial markets and the BoE’s operations
On 4 June, Andrew Hauser, Executive Director – Markets at BoE, made a speech on Covid-19, financial markets and the Bank of England’s balance sheet operations. In his speech, Mr Hauser outlines the unprecedented...
Covid-19 – PRA writes to CEOs on IFRS 9 and capital requirements
On 26 March the PRA, wrote to CEOs of UK banks and building societies providing guidance on the application of the definition of default in the CRR in light of Covid-19, and the expected credit loss accounting...
PSR speaks on key payments issues and Covid-19
On 3 June, the Payment Systems Regulator’s (“PSR“) Head of Policy, Genevieve Marjoribanks, delivered a speech at PSR’s Payment Systems Innovation and Regulation Summit. She acknowledged the challenges...
Covid-19: EBA issues guidelines on data gaps and reporting
The European Banking Authority (“EBA“) has published its Guidelines on reporting and disclosure of exposures subject to measures applied in response to the Covid-19 crisis. EBA says the Guidelines follow the...
ASA rules on ad for “pre-approved” credit
The ASA has just announced that it has taken action against Clear Score Technology Ltd for breach of the BCAP Code. We have summarised the ASA ruling here.
CMA writes to Metro Bank on breaches of the Retail Banking Order
The CMA has written to Metro Bank’s CEO after the bank broke an Order requiring it to send customers text alerts before charging them for going into an unarranged overdraft, giving them time to act and...
Update on PSR Call for Input (CP20/2) on Payments Architecture
The PSR published an update today confirming that it will now be closing its call for input into competition and innovation in the UK’s new payments architecture on Monday 1 May 2020 at 5pm. Responses should be emailed...
Covid-19: FCA sets out its expectations for wet-ink signatures
The FCA issued a statement today setting out its expectations of firms when dealing with the need for ‘wet-ink’ signatures in light of Covid-19 restrictions. Agreements The FCA’s rules do not...
Covid-19: Draft temporary guidance on rent-to-own, buy-now pay-later and pawnbroking agreements
The FCA published draft guidance for regulated firms that enter into rent-to-own (“RTO“), buy-now pay-later (“BNPL“) (as defined in the FCA Handbook), or pawnbroking agreements today. The...
Covid-19: Draft temporary guidance on HCSTC
Today, the FCA published draft guidance for regulated firms that enter into high-cost short-term credit (“HCSTC“) loans, including payday loans. The guidance also applies to firms that have acquired such...
G20 finance ministers and central bank governors agree action plan
On 15 April, G20 finance ministers and central bank governors held a virtual meeting to discuss the details of a coordinated fiscal, monetary and regulatory response to the Covid-19 pandemic. G20 Finance Ministers...
FCA publishes complaints figures for H2 2019
The FCA has today published the complaints figures for regulated firms for the second half of 2019. The data showed an increase in complaints from 4.29m in the first half of 2019 to 6.02m in the second half of 2019. In...
FOS publishes help on avoiding scams and fraud
The Financial Ombudsman Service (“FOS“) recognises that the type of complaint it sees is constantly evolving, as fraudsters develop new methods or seek to exploit events, such as the current impact of Covid...
EU Council adopts sustainable finance taxonomy
The Council of the EU (“the Council“) has adopted a regulation setting out an EU-wide classification system which will enable businesses and investors to identify economic activities which are considered...
EC publishes draft Sustainable Finance regulations
On 8 April, the European Commission (“EC“) published the following three draft delegated regulations: Sustainable finance – minimum standards for climate benchmarks This initiative sets out minimum standards...
FCA publishes update on Strong Customer Authentication
In 2019, new rules on how banks or payment services providers verify customers’ identities or validate payment instructions were introduced to further enhance the security of payments and limit fraud. These...
Digital finance and retail payments: European Commission launches two targeted consultations
On 3 April 2020, the European Commission (EC) launched consultations in two areas: digital finance and retail payments. The EC recognises that the coronavirus pandemic has shown that consumers and businesses are...
Emergency consultation by the FCA
The FCA has proposed a range of targeted temporary measures designed to quickly support users of certain consumer credit products who are facing a financial impact due to coronavirus. The package is intended to...
PSR publishes Annual Plan and Budget for 2020/2021
The Payment Systems Regulator (PSR) has published its annual plan and budget, which sets out its key aims and activities for the year 2020/21 alongside its expected costs. The PSR acknowledges that, due to the impacts...
Regulators publish 2020/2021 MELL
PRA has published a feedback statement and final rules on the FSCS Management Expenses Levy Limit (MELL) for 2020/2021. In CP 1/20, the PRA and FCA consulted on a proposed MELL of £83.2 million for 2020/21, which...
FCA publishes insights from the Cyber Coordination Groups
As cyber risk continues to be a complex challenge for the financial sector, in 2017 the FCA brought together over 175 firms to collaborate in groups on cyber security and operational resilience. These Cyber Coordination...
European Commission issues report on Sustainable Finance and guide to Green Bonds
In March 2018, the European Commission (“EC“) published its Action Plan on Financing Sustainable Growth which set out a comprehensive strategy to further connect finance with sustainability. As part of its...