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...
Author - Emma Radmore
Emma Radmore
Financial Regulatory Working Group issues joint statement on UK-US
The Financial Regulatory Working Group’s meeting on 20 October was the first since the UK left the EU. The meeting focussed on five key themes: the economic response to, and potential financial stability impacts...
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...
UK and Japan sign free trade agreement
The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) was signed on 23 October marking the first agreement that the UK has secured as an independent trading nation. The deal is hoped to boost UK-Japan trade...
Breathing Space Consultation Launched
The FCA has published its consultation on the handbook changes required as a result of implementation of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales)...
Regulators update insurers and others on Brexit expectations
PRA and FCA have written a joint letter to CEOs of insurance firms on the importance of being prepared for the end of the transition period, and FCA has also more generally updated its website. The regulators stress the...
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...
FCA publishes BI High Court declarations
FCA has published the High Court declarations made in the test case, which are the culmination of the test case judgment. The declarations set out how and to what extent the policies in the representative sample used in...
FCA: new webpages on whistleblowing
The FCA has launched two new webpages on whistleblowing. The first webpage sets out the process for reporting concerns of wrongdoing to the FCA in confidence and provides guidance on: Making the decision to speak to the...
EIOPA launches training programme on insurance supervision
The targeted training programme will be delivered to 17 national competent authorities and aims to reinforce high-quality and effective supervision, the protection of policyholders and beneficiaries, and financial...
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...
Commission consults on ELTIF Regulation review
The European Commission has launched a consultation in relation to its review of the Regulation on European long-term investment funds (ELTIFs). The Commission is seeking views on various issues grouped under the...
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...
BoE speech: financial markets and the fight against climate change
Andrew Hauser, BoE Executive Director for Markets, has spoken about the role capital markets, including asset managers, have to play in the fight against climate change. In his speech, Mr Hauser explored the challenges...
Customers in financial difficulty and coronavirus: Additional guidance for firms
The FCA has set out proposals on how firms should continue to seek to help customers who hold insurance and premium finance products and may be struggling financially due to Covid-19 beyond 31 October 2020. The proposed...
The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020
A draft of the Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 was published on 15 October 2020.
Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020
A draft of the Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 was published on 15 October 2020.
Consultation response on UK’s Prudential Regime
HM Treasury published the outcome to its consultation on updating the UK’s Prudential Regime to implement CRDV before the end of the Transition Period. The paper outlines the responses received and sets out the...
Climate-related financial risks speech
Mr Kevin J Stiroh, co-chair of the Task Force on Climate-related Financial Risks of the Basel Committee on Banking Supervision and Executive Vice President of the Federal Bank of New York gave a speech on 14 October...
BRRD II Consultation Response Published
The consultation response on the transposition of the Bank Recovery and Resolution Directive II was published on 15 October. The consultation response document summarises the responses received from the consultation...
Lloyds report: Building simpler Insurance products
Lloyds has published a report today – Building simpler insurance products to better protect customers which sets out a number of ways the global insurance industry can remove complexity to provide enhanced...
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...
Lords seeks clarification on EU crowdfunding legislation
Lord Kinnoull, Chair of the European Union Committee, has written to John Glen MP in response to HM Treasury’s letter of 11 August which set out the Government’s views on the EU Crowdfunding Regulation. The...
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...
BoE updates timelines for ISO 20022 migration
The BoE published an update today setting out the revised timetable for ISO 20022 migration: Phase 2 (TS2): Implementation date next year has been pushed back from April to June. From June 2022, BoE will require all...
FSB reports on global stablecoins
The Financial Stability Board (FSB) has published its finalised high-level recommendations for the regulation, supervision and oversight of “global stablecoin” (GSC) arrangements. The report says that GSC...
Speech: FCA Regulation of Consumer Credit
Nisha Arora, Director of Consumer and Retail Policy at the FCA gave a speech today at the online Finance and Leasing Association Conference. The speech reminded the audience about the 4 outcomes the FCA wants to see for...
FSB Roadmap to enhance cross-border payments
The FSB has today published a roadmap which has been delivered to G20 Finance Ministers and Central Bank Governors in advance of their meeting tomorrow. The roadmap sets out the FSB’s opinion on how the key...
EIOPA calls on insurance industry to be ready for end of transition
EIOPA has reminded the insurance sector that as of 31 December 2020, Solvency II and the IDD will no longer apply to the UK, and that the industry must be prepared for the consequences of UK and Gibraltar firms becoming...
Mortgage Market Disruptions
The FCA today published Occasional Paper No. 57 on mortgage market disruptions. The paper uses data to document the trends associated with COVID-19 and compares them to the financial crisis of 2007-09. The summary...
Brexit Dear CEO Letter
The PRA and the FCA have written to firms preparing for the end of the transition period. The letter urges firms to continue their preparatory work to ensure they, and their clients, are ready for a range of scenarios...
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...
EIOPA sets out approach on POG
The European Insurance and Occupational Pensions Authority (EIOPA) has published a paper outlining its approach to the supervision of product oversight and governance (POG) requirements based on the Insurance...
FCA sets mortgage consumer outcome expectations
Jonathan Davidson, speaking at FCA’s webinar on mortgage forbearance, discussed what FCA is seeing the mortgage markets and reiterated its expectations on firms. His key takeaways were: FCA sees an increasing...
New Debt Letter Rules
HM Treasury has announced this morning that the current form of debt letters, including default notices will be changed from December 2020. The changes are expected to include making the notices more user friendly, with...
Another breach of the SME Banking Undertakings
The CMA has published details of another firm breaching the SME Banking Undertakings 2002. Between December 2019 and August 2020, AIB NI had failed to inform staff that SME customers were not required to open or...
Leapfrog certificates granted in BI test case
FCA has confirmed the granting of “leapfrog” certificates to it, six of the insurers involved and the Hiscox Action Group for an appeal to the Supreme Court, and may now apply for permission to appeal. At...
Finalised Guidance: Cancellations and refunds
Following our report on the draft guidance published on 31 July, the FCA has published its finalised guidance on its expectations for insurance and card providers helping consumers claim money back. The guidance which...
Working Group updates on key LIBOR milestones for 2020/2021
The Working Group on Sterling Risk-Free Reference Rates has updated its LIBOR transition roadmap to include key priorities and revised milestones for 2020 and 2021. The roadmap is a guide to help both lenders and...
FCA files skeleton arguments for leapfrog BI hearing
FCA and the insurers involved in the business interruption insurance test case did not reach the hoped-for agreement on the interpretation of some key points in the judgment. As a result they have filed skeleton...
PRA consults on IRB approach to UK mortgage risk weights
PRA is consulting on rule changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. A by-product of the proposals would also narrow the differentials between IRB and...
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...
Consumer Credit and Coronavirus: Final 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, which covers credit cards, loans, rent to own...
Ex-banker acquitted in FCA document destruction trial
In a case brought by the FCA, Konstantin Vishnyak has been found not guilty of one count of destroying documents in September 2018. The FCA was investigating Mr Vishnyak for suspected insider dealing when it brought the...
EU to recognise UK CCPs from 1 January 2021
The European Securities and Markets Authority (ESMA) has announced that it will recognise the three central counterparties (CCPs) established in the UK as third country CCPs (TC-CCPs) from 1 January 2021. The decision...
CMA letter re PPI Order breaches
The CMA has written to Cardiff Pinnacle about two breaches of the PPI Order: breach 1: 77 customers did not receive their Annual Reviews on time; and breach 2: 167 customers did not receive accurate information in their...
FCA updates on BI appeal and lodges leapfrog application
FCA has updated its information page on the consequences from the judgment in the business interruption insurance test case. It noted that it held meetings with policyholders and their lawyers over 4 days in the week of...
ESMA issues report on MAR
The European Securities and Markets Authority (ESMA) has published its first in-depth review of the Market Abuse Regulation (MAR) since its implementation in 2016. It is expected that the report will feed into the...
EU launches new capital markets union action plan
The European Commission (EC) has adopted a new capital markets union (CMU) action plan which proposes legislative changes and new objectives. The EU’s top priority is to ensure that Europe recovers from the...
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...
BoE reports on supplier’s misuse of audio feed
The BoE has published a report of a review into the misuse of its press conference audio feed alongside its response to the report’s recommendations. In November last year, concerns were raised that an audio feed...
FCA launches investigation under Competition Act
The FCA is investigating suspected anti-competitive arrangements under Chapter I of the Competition Act 1998.
ECON adopts draft reports on digital finance and the capital markets union
The European Parliament’s Economic and Monetary Affairs Committee (ECON) has adopted two draft reports on (1) digital finance and FinTech action plan and (2) the further development of the capital markets union...
HMT updates on business support schemes
HM Treasury has published its latest statistics on the amount of businesses that are being supported through government backed support schemes: CBILS – £15.45bn between 66,585 facilities CLBILS – £3.84bn...
FCA publishes insurance pricing report and consults on fundamental change
FCA has published its final report on its market study intro general insurance pricing practices and, alongside it, a consultation on changes to its Handbook, and rules on data publication. The key damning conclusions...
PRA consults on pre-Brexit changes
BoE and PRA have issued a consultation on changes to its rules before the end of the transition period. The paper covers: an update on the use of BoE and PRA’s intended use of the temporary transitional power;...
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...
PRA publishes proprietary trading review
PRA has published a report required by law that looks at the extent of proprietary trading by deposit takers and dual-authorised investment firms. The report looks at: the extent of trading; the risks trading poses to...
BI consequentials hearing set for 2 October
FCA says the Court has confirmed the consequentials hearing following judgment in the BI insurance test case will take place on 2 October, probably in the morning. FCA will live stream the hearing, at which the parties...
FCA writes to CEOs on BI judgment
FCA has written to the CEOs of insurers following publication of the High Court judgment on the BI test case. It expresses its gratitude to the insurers that were parties to the case and to all those who have co...
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”...
FCA sets up LIBOR transition page
FCA has created a new page on its website, telling firms what they need to know about LIBOR transition. The page focuses on balance sheet exposure and how affected firms can move their LIBOR-linked contracts to...
UK Finance updates LIBOR guide for businesses
UK Finance has published a guide for business customers on the discontinuation of LIBOR. The guide explains: the anticipated discontinuation of LIBOR and why LIBOR is being discontinued; and what customers should be...
Chair announced for Unsecured Credit Market review
The FCA has today announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market. The Review, set to be published by early 2021, will look at regulation’s role in better...
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...
Pay.UK consultation update (Next Generation Standard)
Pay.UK has published an update on it’s consultation on the ‘Next Generation Standard for UK Retail Payments’. The update includes details on Pay.UK’s recommendations for the adoption of ISO 20022...
PSR publishes interim report on card acquiring services
PSR has published its interim report with provisional findings on the supply of card-acquiring services. It says merchants should shop around to get a better deal from their provider or switch to a new one, but that...
BI test case: Court largely supports policyholders
The High Court has handed down its judgment in the test case FCA brought to seek clarity on key issues on business interruption insurance policies and how they have reacted to COVID-19-related claims. Overall, it agreed...
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...
FCA confirms new mortgages guidance
FCA has finalised its additional guidance to firms in the mortgage markets, setting out how they should provide tailored support to borrowers who have had payment deferrals but continue to struggle, and to those whose...
ICO issues £130,000 fine for unauthorised pension cold calls
The Information Commissioner’s Office (ICO) has issued a penalty notice under section 55A of the Data Protection Act 1998 to Swansea based CPS Advisory, fining the company £130,000 for making over 100,000...
BoE updates on LIBOR transition
The Bank of England has updated its website on the transition from LIBOR, and what it is doing to catalyse using SONIA as the primary interest rate benchmark in sterling markets. The Working Group on Sterling Risk-Free...
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...
BI insurance judgment due 15 September
FCA has announced that the court is due to hand down its judgment on the business interruption insurance test case at 10:30am on 15 September.
FMSB reviews trade execution challenges
The FICC Markets Standards Board (FMSB)’s latest Spotlight Review explores the challenges faced in measuring quality of trade execution and how this varies across market participants and segments. FMSB says that...
FCA updates on General Insurance value measures
FCA has published its 4th set of General Insurance value measures data – after delaying publication because of COVID-19. It says the data now shows concerns about the value of personal accident and key cover add...
FCA writes to insurance intermediaries on supervision
FCA has written a supervision strategy letter to the CEOs of personal and commercial lines intermediaries. The letter is intended for general insurance intermediaries with retail and/or commercial customers, loss...
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...
UK Finance backs FCA mortgage plans
UK Finance is supportive of FCA’s plans for additional guidance to firms on mortgages and COVID-19. It says the industry has always said it is better fora customer who can afford payments to continue to make...
COVID 19: Mortgage Consultation
The FCA has published its supplementary guidance note which sets out its expectations of firms dealing with mortgage customers who: are unable to resume payments after 2 payment deferrals; have benefitted from an...
Court approves insurance transfer
The High Court has approved a Part VII transfer of an insurance portfolio from Legal and General to Reassure. The portfolio includes around 900,000 insurance-based savings, pensions, life and with-profits business and...
FCA publishes final BI case transcripts
FCA has published the final transcripts from each day of the Business Interruption Insurance test case.
Rothesay/Prudential transfer to go to appeal
In the week that the Court published its agreement to one Part VII transfer involving it, Rothesay Life has announced the Court of Appeal hearing against the court decision to decline to sanction the Part VII transfer...
FCA finalises guidance for insurance and premium finance firms
The FCA has today published its finalised guidance setting out its expectations for insurance firms when considering the fair treatment of existing customers in financial difficulty, due to Covid-19. The guidance...
High Court gives reasons for Part VII approval
The High Court has handed down its judgment on the Part VII transfer application between Rothesay Life PLC and Monument Life Insurance DAC. On 31 July, the court approved the transfer of around 400 in-force life...
ECB publishes report on ICAAP
The ECB today published its report on banks’ ICAAP practices. The report summarises the results of the ECB’s analysis of ICAAP practices within samples provided by 37 banks. It further highlights gaps...
PRA Letter re Fixed Rate Lending Guidelines
The PRA has published a letter which Mel Beaman has sent to the CEOs of non-systemic building societies clarifying the fixed rate lending guidelines. The letter, which follows a request from the Building Societies...
BoE released updated financial stability information
BoE has published: a summary of the latest meeting of the Financial Policy Committee, which looked at how the UK financial system has performed during the pandemic. It notes how the system has met the initial surge in...
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...
FCA publishes high cost credit review
FCA has published the findings of a review into relending by firms that offer high cost credit. It carried out the review before the current pandemic. The results highlight concerns about poor practices by some firms...
Committee highlights Breathing Space regulations’ importance
The House of Lords Secondary Legislation Scrutiny Committee has published its report in which it discussed the Breathing Space regulations. It drew attention to the importance of the regulations, and recommended that...
FCA recognises LSB update
FCA has confirmed it is maintaining its formal recognition for the LSB’s Standards of Lending Practice for business customers, and that the recognition now covers the recent updates to take account of CBILS and...
FCA consults on debt advice levy rates
FCA is consulting on additional funding by way of debt levy advice rates. The DWP has told it that an additional £14.2m for MaPS to provide debt advice in England in 2020/21. Treasury has also asked for a further £2...
PSR encourages innovation and competition in payments
Genevieve Marjoribanks, head of policy at the PSR, says the PSR is looking at what consumer protections are available and whether they adequately protect those who use bank transfers to make payments. The PSR is...