FCA has now published the transcript of day 8 of its Business Interruption insurance test case and a number of supplementary notes.
Author - Emma Radmore
Emma Radmore
FCA speaks on challenges of LIBOR transition
Edwin Schooling Matter, FCA’s director of markets and wholesale policy, has spoken at ISDA’s event on LIBOR transition. He stressed that the time to act is now, as the next 4-6 months are critical. ISDA is...
FCA makes statement on non-damage BI settlements
Following the conclusion of the test case trial, FCA has noted increasing concerns about how insurers are calculating non-damage BI claim payments in situations where they have agreed liability. Specifically, they are...
FCA consults on Remuneration Code
FCA is consulting on proposals to update its Dual-Regulated firms Remuneration Code and guidance as part of CRD V implementation. The consultation largely follows PRA’s and proposes: changes to SYSC 19D in respect...
FCA updates on BI test case
The test case FCA brought to get court clarity on the application of certain clauses in a number of business interruption insurance policies is now complete. FCA has now published the draft transcripts for days 1-7 of...
PRA consults on CRD V
PRA is consulting on changes to its rules, supervisory statements and statements of policy needed to implement parts of CRD V. This consultation is the first part of PRA’s preparation for implementation, and it...
FCA calls for views on consumer treatment at end of deferral period
FCA has published a call for input, seeking views on what should happen to mortgage and consumer credit customers reaching the end of a second payment deferral (these will be ending from September onwards). It also asks...
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 publishes Day 2 BI test case transcript
FCA has published the draft transcript from Day 2 of the Business Interruption Test Case hearing. Counsel developed the arguments from the details discussed on the first day, with reference to specific policies, and to...
Lloyd’s updates on Part VII and Brexit
Lloyd’s has confirmed that, as of the end of the Transition Period on 31 December, Members’ policies will be transferred to Lloyd’s Insurance Company SA. The affected policies will be those where all...
BBLS unfair relationships exemption confirmed in law
The Business and Planning Act 2020 got Royal Assent on 20 July. Among wider provisions designed to address issued related to Covid-19, s12 of the Act provides that no order under s140B of the Consumer Credit Act...
Government extends 3rd country benchmark transition
Treasury has published a policy paper explaining why it is extending the transitional period for third country benchmarks to 31 December 2025. The extension will allow UK supervised entities to carry on using these...
Day 1 BI test case transcript published
FCA has published the draft transcript of Day 1 of the business interruption insurance test case. Much of the first day focused on how the pandemic developed, the actions of UK government and the effects on business...
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...
FCA updates BI papers ahead of trial
FCA has updated its list of documents relating to the business interruption insurance test case in preparation for the trial starting on 20 July. The documents now published are: the agreed list of issues and common...
Treasury gives CRR guidance
Treasury has published guidance on how CRR2 applies during the transition period. It has already made regulations under the Withdrawal Act to “onshore” CRR as amended by CRR2 after the end of the transition...
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...
FCA publishes defendant BI case skeleton arguments
FCA has published the Defendants’ skeleton arguments in the business interruption insurance test case as well as the Defendants’ joint skeleton arguments on the principles of contractual construction and on...
FCA clarifies latest COVID-19 rules for motor finance, BNPL, RTO, HCSTC & Pawnbroking
Following the consultation at the start of July, the FCA has today clarified the latest rules for how firms should deal with motor finance, BNPL, TRO and pawnbroking customers coming to the end of payment freezes. These...
BoE speech on LIBOR: Entering the Endgame
On 13 July Andrew Bailey, Governor of the Bank of England (“BoE“), made a speech on the continued importance of the transition away from LIBOR. The continued importance of the transition In Mr Bailey’s...
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...
FCA updates on BI test case
FCA has published its and the Intervenors’ skeleton arguments for the trial, which will commence on 20 July. Over the weekend, it published: its skeleton argument: this runs to over 300 pages and explains, among...
International bodies concerned about LIBOR transition
A report published today by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) has raised concerns about the apparent lack of commitment of financial markets to move away from...
EIOPA clarifies product expectations during Covid-19
EIOPA has clarified its expectations on product governance during Covid-19. It has asked manufacturers of insurance products to: identify which products are affected as a result of Covid-19; assess possible unfair...
PRA makes statement on LIBOR and resolution rules
PRA has made a statement outlining its view on the implications of LIBOR transition for contracts in scope of the Contractual Recognition of Bail-In (CROB) and Stay in Resolution (Stays) parts of its Rulebook. PRA...
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...
FCA confirms open-access trading extension
FCA has confirmed that the agreed extension to the deadline for applying the open access rules of MiFIR to trading venues and CCPs that offer trading and clearing of exchange-traded derivatives will apply equally in the...
FCA serves BI insurance Reply
FCA has published its Reply and defence to Counterclaims to the Defences of the insurers in its Business Interruption Insurance test case, as well as its amended Particulars of Claim, the judgment from the first Case...
FCA consults on extension of motor finance and high cost credit reliefs
FCA is consulting on proposals for how firms should deal with motor finance, BNPL, RTO and pawnbroking customers coming to the end of payment freezes, or who are yet to request them. The guidance is very similar to the...
Employers’ liability claims for COVID-19 in the workplace
We have written an article on how courts are likely to approach situations where employees seek to claim for injuries arising through exposure to Covid-19 in the workplace.
European Commission consults on Solvency 2 review
The European Commission is seeking views on its review of Solvency 2. Responses are by way of a questionnaire which is designed to enable the Commission to get views on key elements of the regime, including...
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. ...
FSB comments on benchmark reform and Covid-19
The Financial Stability Board has been monitoring closely the impact of Covid-19 on global benchmark transition. It recognises the challenges, but still thinks that both financial and non-financial sector firms across...
PRA consults on Solvency 2 technical information publication
PRA is consulting on its approach to publication of Solvency 2 technical information at the end of the transitional period. It proposes: to adopt the same technical methodologies as EIOPA with limited exceptions, mainly...
PRA comments on CRR “quick fix”
PRA has made a statement on some aspects of the EU’s “quick fix” to the CRR. The statement notes: PRA’s support (back in 2017) of IFRS 9 transitional arrangements, which the quick fix now...
FCA updates on 2nd BI case management conference
FCA has published the details of, and a provisional transcript from, the second case management conference in its business interruption insurance test case. Key directions include: the permitted interventions of the...
FCA updates on Covid, cancellations and insurance
FCA has published updates on Covid-19 related cancellations and insurance claims. Its consumer guidance notes that consumers should first speak to their travel provider, and should think carefully before accepting...
FCA imposes requirements on Wirecard
FCA has imposed a number of requirements on Wirecard, an authorised EMI which is also subject to the PSRs. As a result of ongoing investigations and actions in Germany involving Wirecard’s parent company, FCA...
EIOPA updates on stress testing
EIOPA has published a further discussion paper on the methodological principles of insurance stress testing. Following its first paper, last year, it is now planning to add some new elements to its stress test toolbox...
EU adopts Covid-19 CRR changes
The EU has adopted temporary rules amending CRR 2 to maximise the ability of banks to lend money during the Covid-19 crisis. The changes: change the minimum capital banks need to hold for NPLs – in particular by...
FCA publishes defences in BI test case
FCA’s latest update on its business interruption insurance test case: published the sealed Court Order from the Case Management Conference on 16 June; published the Defences of the defendants to the test case...
FCA Update on Mortgage Prisoners
The FCA has updated their webpage relating to the implementation group on changes to deliver switching options for mortgage prisoners. The update includes details of a meeting held on 1st May 2020 which confirmed that...
European review of Consumer Credit Legislation
The European Commission published a roadmap looking at reviewing the European Consumer Credit Directive. The feedback period for the roadmap is open from today until 1 September 2020. The review focuses on the following...
Basel consults on non-performing loans changes
The Basel Committee is consulting on changes to the capital rules to provide a prudent treatment in respect of securitisations of non-performing loans. It had started to develop these plans before Covid-19 and has now...
FCA comments on planned amendments to the Benchmarks Regulation
The FCA has issued a statement welcoming the Government’s intention to bring forward legislation to amend the Benchmarks Regulation (“BMR“) to give the FCA enhanced powers. The FCA says these could...
Government encourages LIBOR transition amid legislative plans
Rishi Sunak has made a written statement to Parliament on the Government’s proposals for ensuring LIBOR transition. The statement referenced previous statements that underline the importance of firms migrating...
Treasury consults on BRRD2 implementation
Treasury is consulting on the UK implementation of BRRD2. The implementation date is 28 December 2020, so before the end of the Transitional Period. Treasury proposes to implement all those parts of the Directive that...
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 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...
PRA writes to insurers on 2019 stress test
PRA has written a Dear CEO letter to firms participating in the 2019 Insurance Stress Test. The letter covers: Covid-19 resilience: tests showed the sector was robust to downside stresses, with the highest uncertainty...
FCA updates on BI case management conference
Following the first case management conference in FCA’s test case on business interruption insurance, it has now published details of the order made by Mr Justice Butcher. The order: agrees to an expedited case in...
FCA finalises BI insurance guidance to firms
Following its consultation on 1 June, FCA has now finalised its guidance to insurers and intermediaries, setting out its expectations on how they should handle complaints and claims under business interruption policies...
FCA schedules first BI case management conference
FCA has confirmed that the first Case Management Conference before a judge in its business interruption insurance Test Case is to take place on 16 June. At the conference, the judge will be invited to consider...
FMSB publishes LIBOR transition case studies
The FICC Market Standards Board (FMSB) has published a review on LIBOR transition with case studies to help market participants navigate conduct risks when offering new products to clients or changing performance...
Regulators update firms on revised LIBOR milestones
Since PRA and FCA wrote to the senior manager of banks and insurers responsible for LIBOR transition in January, several of the Working Group milestones discussed in that letter have been changed as a result of Covid-19...
EP votes through Covid-19 lending changes
The European Parliament has approved changes to the CRR to encourage banks to lend to customers affected by Covid-19. Among other things, the changes: extend the transitional arrangements for IFRS 9 by 2 years and...
FCA updates on BI insurance test case
FCA has published a new set of documents relating to the test case it is bringing to get clarity on the coverage of business interruption insurance during the Covid-19 crisis. It has on 10 June (today) announced that it...
ESRB gives guidance on distributions
The BoE and PRA have acknowledged the ESRB recommendations on the restriction of distributions during Covid-19. They note the recommendation will apply to the UK throughout the Transition period, and also note that...
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.
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 publishes insurance product value guidance
Following a short consultation period, FCA has now published (with a few clarifications following responses to the consultation) its finalised rules and guidance for insurers and insurance intermediaries to consider the...
ESMA consults on cloud outsourcing guidelines
ESMA published a consultation paper today on guidelines for outsourcing to cloud service providers. The consultation, which closes on 1 September, looks at the detail of the proposed guidelines which will provide...
Full details on BI case progress
We have now written a detailed article on the progress in FCA’s Business Interruption insurance test case, including summaries of FCA’s draft guidance, and its selection of polices, wordings and assumed...
LIBOR transition – tough legacy issues
The Working Group on Sterling Risk-Free Rates has published a paper on the identification of “tough legacy” issues. Tough legacy contracts are those that do not have robust fallbacks and prove unable to be...
FCA updates on BI test case
FCA has updated on its progress towards its test court case on business interruption insurance policies. It has now reviewed around 500 policies from 40 insurers, and has identified 17 policy wordings that capture most...
UK Finance members offer support for commercial landlords
UK Finance says its members are committed to supporting commercial landlords and their tenants who are concerned about their ability to make payments during Covid-19. It urges those concerned to contact their lenders...
UK Finance reports payment holiday figures
UK Finance statistics show that, as of 21 May, their members report that: 877,800 customer accounts had been given a payment freeze on their credit cards, an increase of 25% from the start of the month; nearly 680,000...
PRA publishes FAQs on property valuations
PRA has published a set of Q&A on CRR requirements for property valuations during the disruption caused by Covid-19. Firms have been asking questions on how they shoudl deal with the difficulties in conducting...
EBA publishes loan origination guidelines
EBA has published a set of guidelines on loan origination standards. Its aim is to bring together prudential standards, consumer protection obligations, AML and ESG considerations within one set of guidance. The...
CMA gets £47m refunds on overdraft charges
CMA has announced that over the past 2 years it has secured more than £47m of refunds for customers in respect of overdrafts where banks failed properly to warn them about unarranged overdraft charges. It has now taken...
PRA updates on “prudent person” principle
PRA has updated its policy documents following its consultation on the Prudent Person principle under Solvency 2. PRA received only 7 responses to its consultation, but have made some clarificatory changes following...
FCA consults on safeguarding
FCA is consulting on how firms can strengthen their safeguarding protections during the Covid-19 crisis. The consultation focuses on the provision of additional guidance for payments firms to strengthen the way they...
PRA updates on ISPV supervision
PRA has updated on authorisation and supervision of insurance SPVs following consultation, and has published updated rules, an updated supervisory statement and an updated multi-arrangement insurance SPV new risk...
Corporate Insolvency and Governance Bill 2020
We have summarised the key proposals of the Corporate Insolvency and Governance Bill, published on 20 May.
CRR amending Regulation progresses
The European Parliament is to consider the proposed Regulation amending the CRR in its plenary session on 17-18 June. Meanwhile, the ECB has published its opinion on the proposals, which are aimed at addressing some of...
Banks look at new ways to deal with SME complaints
The Business Banking Resolution Service has carried out a pilot study to look at how disagreements between banks and SME customers could be better addressed. The BBRS has been set up by 7 banks and other stakeholders...
FCA updates on business interruption insurance test case
FCA has provided further information on what it is doing to prepare for the test case it plans to bring to clarify various uncertainties over how business interruption insurance should operate during Covid-19. FCA notes...
Statement on impact of Covid-19 on LIBOR transition – update
Further to their statement on 25 March 2020, the Working Group on Sterling Risk-Free Rates has updated its statement on the impact of Covid-19 on the timeline for firms’ LIBOR transition plans. The update states that...
LSB publishes business plan and budget
LSB’s Business Plan and Budget for 2020/21 has been published. It was drafted before the Covid-19 outbreak, and LSB wants to continue with it so far as possible, while accepting it may need to adapt some of the...
FCA publishes finalised Covid-19 insurance guidance
FCA has published its finalised guidance for insurance and premium finance firms on dealing with Covid-19 and customers in temporary financial difficulty. The guidance should be complied with no later than 18 May and is...
PRA responds on retirement interest-only mortgages and default
PRA has provided its feedback following responses to its consultation on prudential treatment of retirement interest-only mortgages, and on credit risk: probability of default and loss given default estimation. Tt has...
EBF publishes cross-border payment guidance
EBF has published guidance for payment service providers in the form of examples and FAQs on implementation of the Cross-Border Payments Regulation. The guidance comes as EBF members have raised queries about charges...
Land Registry to accept Mercury PDF documents during Covid-19 pandemic
In response to the Covid-19 pandemic, the Land Registry has confirmed that it will accept PDF copies of certain deeds, including transfers and legal charges, until further notice. Previously only wet ink deeds had been...
Regulator Covid-19 update 7 May
On 7 May: PRA announced details of its plans to support firms and enable them and the PRA to focus on the highest priority work: The Climate Biennial Exploratory Scenario is postponed until at least mid-2021; full...
FCA updates on insurance and premises access during Covid-19
FCA has updated its webpage on insurance and coronavirus to include guidance on access to premises. It notes that some consumers may be unable to access their residential properties and some businesses may not be able...
FCA updates on CBILS and BBLS expectations
On 4 May: FCA updated its statement about the CBILS and BBLS confirming that its position that lenders who comply with CBILS do not also have to comply with the creditworthiness rules in CONC 5.2A.4-34 where the...
FCA seeks court ruling on business interruption insurance
FCA has announced its intention to obtain a court declaration to resolve contractual uncertainty in business interruption (“BI“) insurance cover. It is also proposing a series of measures to support both...
Professional negligence and insurance post Covid-19
Read our article about the issues professionals, their brokers and their insurers will be looking at in the light of Covid-19.
Further statement on the impact of Coronavirus on the timeline for LIBOR transition
Following a joint statement on 25 March, the Working Group on Sterling Risk-Free Rates has issued a further statement on the impact of Coronavirus on the timeline for firms’ LIBOR transition plans. The statement...
Regulator Covid-19 update 28 April
On 28 April: FCA updated its guidance on changes to regulatory reporting; and The European Commission has announced a wide-ranging banking package to help banks to lend to support the economy. The package includes:...
Regulator Covid-19 Update 27 April
On 27 April: FCA has clarified the relationship between its rules and the UK’s CBILS and Bounce Back Loan schemes. It notes that, pending the roll-out of the BBL scheme, which, from 4 May, will give small...
How does CLBILS work?
We have written an article on how the Coronavirus Large Business Interruption Loan Scheme works.
FCA confirms more temporary relief measures
As expected, FCA has confirmed it will be going ahead with the measures it has consulted on to support customers facing difficulties in making payments on motor finance, buy-no-pay-later, rent-to-own and pawnbroking...
Regulator Covid-19 update 23 April
On 23 April: PRA followed up on its letter to insurers, noting that all insurers should consider carefully the previous letter and guidance on use of unrated assets and assessments of creditworthiness, and the...
PRA publishes buffer usage FAQs
PRA has published a set of FAQs on using liquidity and capital buffers in response to the issues caused by Covid-19. The FAQs address what the buffers are, how banks can use them and the implications of them doing so...