PRA is consulting on a draft supervisory statement setting out how it expects banks and insurers to manage the financial risks from climate change. The statement sets out how effective governance, risk management...
Author - Emma Radmore
Emma Radmore
PRA updates Solvency II supervisory expectations
PRA has published updated Supervisory Statements on: regulatory reporting, internal model outputs, and on ORSA and the ultimate time horizon for non-life firms. The new policies take effect for all financial year-ends...
FCA consults on Statements of Responsibilities and Responsibilities Map guidance
The FCA has published a consultation on proposed guidance to help solo-regulated firms draft their Statements of Responsibilities (SoR) and (for enhanced firms) Responsibilities Maps, in preparation for the SMCR...
FCA publishes Brexit consultations following HMT Guidance
As heralded at the end of last year, the FCA has now published two consultation papers that make provision for operations in the event of a ‘hard’ Brexit next March. The first consultation sets out changes...
FCA consultation on rules for open-ended funds holding illiquid assets
The FCA is consulting on the introduction of rules to address issues that could arise where open-ended funds with illiquid asset holdings encounter stressed conditions. Following the outcome of the Brexit referendum in...
Industry body calls for review of PRIIPs Regulation
Following the FCA’s Call for Input into the implementation of the PRIIPs Regulation, the Personal Investment Management and Financial Advice Association (PIMFA) has commented that it agrees with concerns about the...
ESMA updates MiFID 2 and MiFIR FAQs
ESMA has updated its FAQs on MiFID 2 and MiFIR on market structures and transparency. New questions look at: how derivatives are classified for transparency purposes amending an existing question on the default...
CMA calls for evidence in response to ‘loyalty penalty’ super-complaint
Following a super-complaint by the Citizens Advice bureau, the CMA has announced that it is seeking views on concerns about long term customers paying more for goods and services. The CMA has identified four key issues...
ESMA updates MiFID and MiFID II materials
ESMA has published an update to its Q&As on MiFID II and MiFIR, answering questions relating to investor protection and intermediaries. The answers address: best execution: reporting for firms using a...
PSR welcomes draft APP reimbursement code
The APP Scams Steering Group, set up by the PSR, is consulting on a draft industry code to reimburse victims of APP scams. The code sets standards for industry to meet to help get appropriate treatment for customers...
PRA reviews risks of climate change to banks
The PRA has published a report examining the impact of climate change on banks in terms of financial risk implications. The report notes that 70% of banks recognise that climate change poses financial risks to their...
FCA consults on PSD2 SCA-RTS approach
As part of its implementation of PSD2, the FCA has published a consultation on matters relating to the Regulatory Technical Standards for strong customer authentication and common and secure open standards of...
Second consultation on extending SM&CR to insurers
The PRA has published the second part of its consultation on the extension of SM&CR to insurers. These proposed amendment to its rules consist of ‘technical consequential changes’ and ‘minor...
FCA publishes direction on recognised overseas investment exchanges
The Treasury is not planning to include EEA market operators in the proposed arrangements enabling incoming firms and businesses to continue to operate immediately after Brexit. Accordingly if EEA market operators are...
ASA rules on RAPR prominence in TV ad
The ASA has published a ruling which upheld a complaint that the representative APR (RAPR) in an advertisement for Sunny Loans was insufficiently prominent. The advert’s ‘incentives’ that triggered...
Andrew Bailey and Charles Randell speak at FCA Annual Public Meeting
The FCA has held its annual public meeting, at which it reviews the year past, talks about key priorities for the year ahead and takes questions from the public. Charles Randell, who was chairing his first Annual Public...
Treasury updates Brexit draft laws
Treasury has published further drafts of Brexit-related statutory instruments: the EEA Passport Rights (Amendment, etc, and Transitional Provisions)(EU Exit) Regulations 2018 address the necessary amendments to...
PRA Regulatory Update – August 2018
The August edition of the PRA’s Regulatory Digest includes: news about a New Insurer Start-up Unit. This is a joint initiative with the FCA. The dedicated page on the Bank of England’s website includes a...
FinTech agreement between Dubai and Singapore develops international regulatory co-operation
The Dubai Financial Services Authority (DFSA) and the Singapore Monetary Authority (MAS) have announced that they have entered into an agreement to promote the regulation of innovative businesses. The agreement allows...
HM Government publishes Brexit Financial Services framework
The UK Government has published a presentation (dated 25 July) that sets out a proposed ‘Framework for the UK-EU partnership’, as part of the preparations by the UK Brexit negotiating team. This document...
Law Commission confirms status of electronic signatures
In December 2017 the Law Commission confirmed that one of the projects it would be working on was addressing the absence of explicit case law and legislation that has given rise to uncertainty as to the validity of...
FSB launches peer review of LEIs
The Financial Stability Board has published the Summary Terms of Reference of a thematic peer review of the implementation of the Legal Entity Identifier. The thematic review seeks feedback from a range of stakeholders...
FCA personal and business current account comparison rules come into force
New FCA rules requiring banks to publish information about personal and business current accounts came into force on 15 August 2018. The new rules cover standing data relating to account opening and service...
All-Party Parliamentary Group calls for full statutory inquiry into business banking sector
The Co-Chair of the All-Party Parliamentary Group on Fair Business Banking has written to Andrew Bailey of the FCA in the wake of the FCA’s announcement that it was unable to take further action in relation to its...
UK Finance publishes guidance on Funds Transfer Regulation
The industry body UK Finance has developed a voluntary ‘How to’ guide on compliance with the requirements of the Funds Transfer Regulation (also referred to as the Wire Transfer Regulation). The guide aims...
FCA publishes interim report on CCA review
The FCA is progressing with its statutory obligation to review the CCA, by publishing an interim report on its review. The interim report sets out the FCA’s initial views on whether the repeal of CCA provisions...
Consultation on use of digital technology in insurance
The International Association of Insurance Supervisors has published a draft issues paper on the increasing use of digital technology in insurance and its potential impact on consumer outcomes. The focus of the paper is...
FCA publishes evaluation of GAP insurance intervention
Following its intervention in the add-on GAP insurance market in September 2015, the FCA has published an evaluation of the effect of its measures. The measures introduced by the FCA were designed to address the harms...
Extension of SM&CR to insurers: PRA consults on implementation
The PRA is consulting on proposed changes to its Rulebook, to provide for: a technical correction to the Solvency II firms: Insurance General Application Part; and consequential changes and minor administrative...
FCA updated guidance for firms outsourcing IT
The FCA has updated FG 16/5, ‘Guidance for firms outsourcing to the ‘cloud’ and other third party IT services’. This update takes account of the publication of the European Banking...
FCA publishes research note on credit card users’ debt
The FCA has published a note that summarises research conducted as part of the FCA Credit Card Market Study into helping credit card users who are only making the minimum payments increase the rate at which they repay...
HM Treasury publishes temporary permissions draft SI
HM Treasury has published a draft SI setting out the proposed conditions for an incoming EEA firm to obtain a temporary permission to continue to carry on regulated activity in the UK after exit day, in the event of the...
FCA publishes intervention approach documents
On a new page on its website, ‘Measuring our impact before we intervene‘, the FCA has published a group of documents that aim to provide an indication of how the FCA assesses the likely impact of its...
BUSINESS CONTRACT TERMS REGULATIONS RESURRECTED
The draft Business Contract Terms (Assignment of Receivables) Regulations, which appeared to have been scrapped in late 2017, have been resurrected with a revised draft laid before Parliament for approval. The...
Government proposes insurers’ right to restore dissolved company to register for PI claims
On 29 June 2018 the government published a draft statutory instrument, the Third Parties (Rights Against Insurers) Act 2010 (Consequential Amendment of Companies Act 2006) Regulations 2018. This regulation will give...
Treasury Committee asks PRA to work with insurance industry in relation to areas covered by Solvency II
In a letter to the Chief Executive of the PRA regarding Solvency II, the House of Commons Treasury Committee has asked the PRA to consider challenges raised by industry in a number of areas, including to the current...
FCA publishes final rules for EU Money Market Funds Regulation
From 21 July 2018, the EU’s Money Market Funds (MMF) Regulation will require new MMFs to be authorised by national competent authorities. Existing funds that are already branded as, or substantially similar to...
FCA and PSR Chair discusses potential future algocracy
Charles Randell, the recently appointed Chair of the FCA and the PSR, has delivered a speech, in which he discussed the increasing dominance of algorithms in our day to day lives, and noted some of the consequent issues...
PRA updates on large exposures
PRA has published a policy statement together with updated supervisory statements on changes to its large exposures framework. PRA received 5 responses to its consultation paper, which supported the additional guidance...
Customer authentication under PSD2
We recently wrote an article for Compliance Monitor on strong customer authentication under PSD2 and EBA Guidelines.
EIOPA opens InsurTech Insight survey
EIOPA is inviting the insurance industry as well as those not directly active in the insurance value chain to provide views on InsurTech, which they define as ‘technology-enabled innovation in insurance that could...
FCA publishes update on Strategic Review of Retail Banking Business Models
The FCA has published a progress report on its ongoing Strategic Review of Retail Banking Business Models. The purpose of the Review is to consider the sources of competitive advantage that may have helped the major...
HMT, Bank of England and FCA set out approach to onshoring financial services legislation
The Treasury, the Bank of England and the FCA have published information about how financial services legislation will be on-shored under the EU (Withdrawal) Act, in particular to ensure the (hopefully unlikely)...
FCA concerned about travel insurance access
FCA has published feedback on its Call for Input on Access to Insurance. Its main concern is that people with pre-existing medical conditions find it hard to get travel insurance. Common themes were: lack of good...
PSR reports on initiatives to protect public from APP scams
The Payment Systems Regulator has published a summary of measures it is currently working on with other bodies to protect customers from authorised push payment scams – where fraudsters trick people into sending...
Law Commission opens consultation on expanded definition of ‘insurable interest’
The Law Commission and the Scottish Law Commission have published an updated bill that proposes an expansion to the concept of insurable interest for life-related insurance. By using the term ‘life-related...
AG Opinion on ‘payment accounts’ for the purposes of PSD
In the ongoing case of Bundeskammer für Arbeiter und Angestellte v ING-DiBa Direktbank Austria Niederlassung der ING-DiBa AG (Case C-191/17), the European Court of Justice has been asked for the first time to interpret...
ESMA confirms end of LEI grace period
ESMA has issued a statement confirming that the six month grace period granted to those required by MiFIR to have a Legal Entity Identifier (LEI), will end on 2 July 2017. ESMA will now work with national competent...
PRA publishes Policy Statement and Supervisory Statement on Algorithmic Trading
The PRA has issued PS12/18 and SS5/18, which sets out the PRA’s expectations of a firm’s risk management and governance of algorithmic trading. The SS applies to all algorithmic trading activities of a...
EBA consults on PSD2 RTS Guidelines for ASPSPs
The EBA has published a consultation on draft Guidelines supplementing the Regulatory Technical Standards on strong customer authentication published in the OJ in March 2018, and applicable from September 2019. Article...
FCA’s high-cost credit review published
The FCA has concluded its review into high-cost credit, and based on issues it found has published two consultations: CP18/12 on rent-to-own, home-collected credit, catalogue credit and store cards, and alternatives to...
FOS Annual Review published
The FOS has published its Annual Review for 2017/2018. Many of the complaints statistics highlight products that are the subject of ongoing regulatory scrutiny and activity: the FOS notes significant increases in...
FCA publishes Final Guidance relating to Part VII insurance business transfers
The FCA has published FG18/4: The FCA’s approach to the review of Part VII insurance business transfers, which sets out the FCA’s key considerations and general expectations when reviewing a Part VII...
FCA develops its focus on improving culture in financial services
The FCA has published an event summary describing output from a conference it held in March on Transforming Culture. Following the conference, and the publication of its Discussion Paper on Transforming Culture in...
FCA publishes Handbook updates including IDD instrument
The FCA has published Handbook Notice No. 55, setting out: the Financial Services Compensation Scheme (Funding Review) Instrument 2018, the Handbook Administration (Data Protection) Instrument 2018, the Insurance...
Lloyd’s gives IDD guidance to non-UK coverholders
Lloyd’s has published guidance for non-UK EEA coverholders on the actions they must take to ensure IDD compliance. The guidance focuses on agreement between all parties in the distribution chain on who the product...
Lloyd’s Brussels obtains licence
Lloyd’s has announced that it has received licence approval from the National Bank of Belgium for Lloyd’s Insurance Company S.A. Post-Brexit, this subsidiary of Lloyd’s will be able to write non-life...
FCA discusses mortgage enforcement and competition issues in Building Societies speech
The FCA’s Director of Supervision, Jonathan Davidson, has delivered a talk on Building Societies and the Future of Retail Banking at the Building Societies annual conference. In his speech, Jonathan raised the...
PRA publishes policy statement on financial management for insurers
Following its consultation on effective financial management and planning for insurance firms and groups, the PRA has now published its final policy statement PS10/18, and Supervisory Statement SS4/18, ‘Financial...
GOVERNMENT SCRAPS NEW GOODS MORTGAGES BILL
HM Treasury has published the response to its September 2017 consultation on the proposed Goods Mortgages Bill and has announced that it is no longer planning to introduce new legislation on this subject at this time...
FinTech industry associations publish PSD2 voluntary guidelines
UK Finance, the Financial Data and Technology Association, the Electronic Money Association and techUK have jointly published voluntary guidelines. The guidelines are directed at account servicing payment service...
ABI and BIBA launch principles for premiums
ABI and BIBA have published a set of guiding principles and action points that insurers and brokers should follow, which the associations intend will address some of the issues that currently lead to excessive...
Treasury makes IDD perimeter law changes
Treasury has made the Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018 and laid it before Parliament on 1 May. The Order makes changes, mainly to the RAO, to reflect the changes to...
Bank of England announces consolidation of three UK Payment System Operators
The Bank of England has announced that the New Payment System Operator Limited (NPSO) has taken over responsibility for the Bacs and Faster Payment retail payment systems. This consolidation is the result of work by...
FCA publishes new FSCS funding rules
Following its consultation in 2017, the FCA has now published its final rules on reformed FSCS funding. These rules will take effect from April 2019. Additionally the FCA has opened a consultation on draft rules...
PRA publishes model risk management principles for stress testing
PRA has published a policy and supervisory statement setting out its expectation of the model risk management practices firms should adopt when using stress test models. It expects firms to apply the principles...
EC VP speech highlights risks arising from Brexit
In a recent speech, Vice-President of the EC, Valdis Dombrovskis, warned of the consequences arising from the fact that the transition period agreed at a European level was part of the overall future withdrawal...
Andrew Bailey of the FCA discusses open financial markets
The FCA has published a speech by its Chief Executive, Andrew Bailey, in which he spoke about open markets through the prism of Brexit, including the prospects and reasons for a transition period and what the steady...
Claims Management regulations published for consultation
As part of the proposed process of transferring the regulation of Claims Management Companies to the FCA, HM Treasury is consulting on draft regulations that will form part of a final statutory instrument creating a...
BEIS publishes Green Paper on modernising consumer markets
The Department for Business, Energy and Industrial Strategy is consulting on proposals which, among other issues, seek to to improve the consumer experience in regulated markets for utilities, telecommunications and...
PRA publishes ‘Dear CEO’ letter on capital extractions by insurance firms in run-off
The PRA has published a ‘Dear CEO‘ letter which addresses capital extraction requests from insurance firms in run-off, and firms not supplying sufficient information to the PRA. It reminds firms of the need...
ESAs report on key risks for H2 2017
The Joint Committee of the European Supervisory Authorities has published its report for the second half of 2017. This report highlights the following potential sources of instability: repricing of risk premia...
FCA and PRA publish business plans
The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an...
CMA to continue insurance price comparison website investigation
The CMA has confirmed that it has decided to continue the investigation into a price comparison website’s (PCW) use of certain ‘most favoured nation’ clauses in its contracts with home insurance...
HM Treasury launches first Fintech Sector Strategy paper
The Treasury has published its first Fintech Sector Strategy, setting out the government’s proposals to secure the UK’s place as a preferred location to start and grow a fintech business. The paper...
Council of the EU approves EU-US insurance agreement
Following the announcement in September last year that the EU and the USA signed a bilateral agreement on insurance and reinsurance prudential measures, the Council of the EU has now formally adopted a decision to...
Complaints Commissioner concerned about information sharing between FOS and FCA
In a recent report the Complaints Commissioner expressed concern about the absence of published information about how and in what circumstances information about live ombudsman cases may be shared between the FOS and...
BoE outlines 2018 stress test
The BoE has published the scenario against which it will stress-test banks in 2018. As confirmed by the FPC, the basis of the test will be the same as the 2017 version, but the hurdles will evolve such that: banks will...
ABI writes to FCA on Brexit issues
The ABI has written to Andrew Bailey highlighting the issues its members are facing in meeting their duty to treat customers fairly, in the context of communications with customers over Brexit. The letter welcomes the...
FCA Discussion Paper on transforming culture in financial services
As part of its ongoing work on culture and governance, the FCA has published a discussion paper, comprising a series of essays from academics and industry thought leaders covering: what a ‘good’ culture...
European Commission publishes plans to accelerate delivery of Capital Markets Union
The Commission has published a new package of proposals that it wishes to see adopted by mid-2019. The proposals will ‘put in place all building blocks of the Capital Markets Union’, and comprise:...
EU Council confirms IDD delay
Following the publication of the provisional Directive text postponing the date of application of IDD to 1 October 2018, the Council has now confirmed that the directive has been adopted, and applies with retroactive...
FSB publishes final version of supplementary guidance on sound compensation practices
The Financial Stability Board (FSB) has published the final version of its Supplementary Guidance to the FSB Principles and Standards on Sound Compensation Practices. It consulted upon this guidance in June 2017, as...
FCA surveys firms passporting into UK
As part of its preparation for Brexit, the Government announced in December 2017 that it would, if necessary, introduce legislation to enable a ‘temporary permission’ scheme for EEA firms and funds which...
FCA updates on consumer credit landscape
Andrew Bailey has spoken to the FLA on the current consumer credit landscape. He noted the constant fall in the real cost of debt which has supported the rise in household borrowing, and the growth in consumer credit...
Insurance Europe publishes Brexit position papers
Insurance Europe has published two position papers relating to Brexit. The first paper discusses the need for a transitional arrangement, stating that such an arrangement is crucial for business continuity until legal...
The UK’s developing cyber insurance market
We have written an article that assesses the UK’s developing cyber insurance market in the context of the changing regulatory landscape and looks at the possible benefits and risks associated with the proposal to share...
FCA consults on implementation of EU Benchmarks Regulation
FCA has published a consultation paper on Handbook changes necessary as a result of the EU Benchmarks Regulation and the UK Benchmarks Regulations 2018. Specifically, it plans changes to DEPP and EG FCA proposes to...
EU Blockchain Observatory and Forum launched
The European Commission has announced the launch of an EU Blockchain Observatory and Forum. This aims to: highlight key developments in blockchain technology; promote European participants; and reinforce European...
EIOPA consults on adaptation of requirements for insurance intermediaries’ PII and financial capacity
The Insurance Distribution Directive sets out in Article 10 base amounts of PII and minimum financial cover required by insurance and reinsurance intermediaries. It also requires EIOPA to review the prescribed levels of...
EBA writes to Commission on authentication RTS
The EBA has written to the European Commission following the Commission’s adoption of the RTS on strong customer authentication under PSD2. The EBA welcomes the adoption, appreciates the note the Commission took...
Commission finalises own funds adjustment RTS
The European Commission has finalised the RTS for procedures excluding transactions with NFCs established in third countries for the purposes of the own funds requirement for credit valuation adjustment risk. The RTS...
EIOPA translates official IBIPs Guidelines
The European Insurance and Occupational Pensions Authority (EIOPA) has published official translations of guidelines under the IDD relating to insurance-based investment products (IBIPs) which incorporate a structure...
Payment Systems Regulator explains focus on UK’s ATM network
The Payment Systems Regulator (PSR) has published a letter sent by it to the Chair of the Treasury Select Committee regarding the UK’s ATM network. The letter sets out the PSR’s continued commitment to...
Treasury publishes response to IDD consultation
In February 2017, the Treasury opened its consultation on the UK transposition of the IDD. The Treasury has now published the results of that consultation, and also the draft statutory instrument. The consultation...
FCA sends ‘Dear CEO’ letter following CFD market review
Following its review of the contracts for difference (CFD) market, the FCA has written to the CEOs of providers and distributors of CFDs to highlight specific concerns. The letter warns that there are areas of serious...
FCA updates Enforcement Guide as PRIIPs Regulation comes into force
The FCA has published a legislative instrument that amends its Enforcement Guide to reflect the implementation of the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs Regulation). The changes...
Increase in limit on Building Societies’ maximum currency transaction size
Treasury has published the Building Societies (Restricted Transactions) (Amendment to the Limit on the Trade in Currencies) Order 2017. This Order increases the limit set out in section 9A of the Building Societies Act...
ESMA consults on draft Securitisation Regulation technical standards
The European Securities and Markets Authority has published three consultation papers on draft technical standards implementing the Securitisation Regulation that is expected to be published by the end of this year. The...
Treasury, FCA and EIOPA issue statements regarding continuity of activities and services after Brexit
Along with the PRA’s publication of consultation papers on its intended approach to supervision of third country firms, the Treasury, FCA and ESMA have recently issued statements providing an update on provision...