The Upper Tribunal (Tax and Chancery Chamber) has a denied a request for an extension of time to a Mr Stephen Cooper, who had challenged his identification in an FCA decision notice against WH Ireland Limited, outside...
Author - FIN. Team
FIN. Team
Select committee calls for post-Brexit transactional deal
The Lords’ EU Financial Affairs Sub-Committee has written to the Chancellor calling for an urgent agreement on a post-Brexit “standstill” transition point for the financial services sector. Baroness...
Insurance broker loses authorisation over non-compliance with FOS award
The Upper Tribunal (Tax and Chancery Chamber) has upheld FCA’s decision to cancel the permission of Larksway Investments (an insurance broker), following non-compliance with a FOS award. FOS had upheld a complaint...
The Supreme Court grants Deutsche Bahn AG permission to appeal against a Court of Appeal judgment concerning interchange fees
The Supreme Court (SC) today announced that permission to appeal has been granted to Deutsche Bahn AG (and other retailers) against the Court of Appeal’s judgment upholding an appeal by MasterCard against a judgment of...
FCA’s future approach to consumers
The FCA has today published its Approach to Consumers paper, which is intended to explore the FCA’s approach to regulating retail consumers. The paper follows the publication of the FCA’s Mission Statement...
FCA publishes near-final rules for new ILS regulatory framework
FCA has issued a policy statement setting out near-final rule changes required to FCA’s Handbook to incorporate the new regulated activity of insurance risk transformation. The policy statement includes feedback...
Up next from FCA
FCA’s latest Policy Development Update promises, before the end of the year: policy proposals for regulatory fees and levies policy statement on the second consultation on FAMR implementation policy statement on...
Interest Rate rises for the first time in 10 years
For the first time in more than 10 years the Bank of England (BoE) has raised interest rates. At its meeting on 1 November, the BoE’s Monetary Policy Committee (MPC) voted by a majority of 7-2 to increase the...
EBA publishes final guidelines on the supervision of significant branches
On 1 November 2017, the European Banking Authority (EBA) published a final report on the guidelines on the supervision of significant branches (EBA/GL/2017/14). The final report follows a consultation, which took place...
EIOPA delivers first set of advice to the European Commission on Solvency 2 Delegated Regulation
The European Commission requested EIOPA to provide technical advice as part of its review of the Solvency Capital Requirement. Following a public consultation, EIOPA has provided advice on the following areas:...
PRA publishes framework for authorisation and supervision of insurance special purpose vehicles
Following a period of consultation, PRA has published a policy statement and supervisory statement that are relevant to all parties who wish to apply to PRA for, or have obtained authorisation as, an insurance special...
Legislative proposal for an EU framework on crowd and peer to peer finance
The European Commission (Commission) has published an inception impact assessment on its legislative proposal for an EU framework on crowd and peer to peer finance. The initiative is part of the Commission’s...
Treasury Committee report on Solvency 2
Following receipt of evidence from a range of stakeholders, the Treasury Committee has published its report on Solvency 2 and its impact on the UK insurance industry. The report covers a range of areas including the...
European Parliament calls for delay of IDD application until 1 October 2018
The European Parliament has published decisions, which raise no objections to the IDD delegated acts on: product oversight and governance requirements for insurance undertakings and insurance distributors; and...
European Commission report on consumers’ decision making in insurance services
The European Commission has published a final report of a study on consumers’ decision-making in insurance services: A behavioural economics perspective. The study sought to explore and understand consumers’...
EBA consults on home-host co-operation under PSD2
The European Banking Authority (EBA) has published a consultation on the draft regulatory technical standards (RTS), specifying the framework for the co-operation between competent authorities under the revised Payment...
HM Treasury publishes national risk assessment of Money Laundering and Terrorist Financing Regulations 2017
HM Treasury has published the 2017 national risk assessment (NRA) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) (MLRs). In 2015, the...
New FCA webpage on reporting consumer credit income
The FCA has published a new webpage setting out what consumer credit firms need to report in relation to their consumer credit income. The FCA charges consumer credit firms annual fees based on the data in forms CCR002...
SRA consults on the implementation of IDD
The Solicitors Regulation Authority (SRA) has published a consultation paper on changes to its regulatory arrangements to comply with the Insurance Distribution Directive (IDD). SRA is a designated professional body...
Final guidelines on the identification and management of step-in risk issued by the Basel Committee
The Basel Committee on Banking Supervision has released its Guidelines on identification and management of step-in risk . The guidelines build upon two consultations carried out by the Committee in December 2015 and...
PRA publishes the first in a series of consultation papers on reform to the implementation of Solvency 2
Following the introduction of Solvency 2 in January 2016, PRA has launched the first of a series of consultation papers on reform to the implementation of Solvency 2. The series begins with a paper on the Matching...
IAIS update on the status of ICPs and ComFrame development
The International Association of Insurance Supervisors (IAIS) has published tables showing the status of: the 26 insurance core principles (ICPs), including any ongoing or planned revisions; and the development of the...
BrightHouse to reimburse customers following FCA engagement
BrightHouse, a rent-to-own company providing household goods to customers on hire purchase agreements, has committed to pay over £14.8 million to 249,000 customers following engagement with FCA. In 2014, FCA had...
PRA issues policy statement and supervisory statement on Solvency 2: Data collection of market risk sensitivities
PRA has published a policy statement and supervisory statement relevant to PRA-regulated insurance or reinsurance firms that are most exposed to market risks. These are primarily Category 1 and 2 firms in the life...
HM Treasury’s Call for Evidence to tackle problem debt
On 24 October 2017, HM Treasury published a Call for Evidence to implement a breathing space scheme so that someone in serious problem debt may apply for legal protection from further interest, charges and enforcement...
Prudential requirements for credit institutions and investment firms
The European Commission (Commission) has announced that it will vote on a proposal to amend the existing Capital Requirements Regulation (CRR) during the October II plenary session. The Commission said that the new...
FCA fines Merrill Lynch for transaction reporting failings
On 23 October 2017, the FCA published the final notice issued to Merrill Lynch International (Merrill Lynch). Merrill Lynch was fined £34,524,000 for failing to report exchange traded derivative transactions between...
Treasury launches inquiry into UK’s economic relationship with the EU
The Treasury Committee has launched a new inquiry into the UK’s economic relationship with the EU, which amongst other things will consider: Transitional arrangements; Preparedness for ‘no deal’; and...
FCA report – lessons learned from its regulatory sandbox
On 20 October 2017, the FCA published a report on lessons learned from its regulatory sandbox. As a reminder, the regulatory sandbox allows firms to test innovative products, services and business models in a live...
FCA begins debt management sector review
In line with its 2017/18 Business Plan, FCA has begun its thematic review of the debt management sector. FCA has taken a particular interest in this sector, owing to the increased risks faced by (particularly...
EBA: Overview of PSD2 national transposition projects and new reports
The EBA recently published a table which includes key questions around the Payment Services Directive 2 (PSD2) transposition activities and dates of the different EEA countries. In addition, the EBA has announced the...
The Consumer Protection Partnership Update Report for 2017
The Department for Business, Energy & Industrial Strategy has published a report by the Consumer Protection Partnership (CPP), identifying and prioritising areas where there is greatest harm caused to consumers and...
Insurance Europe supports IDD delay
ECON’s call to the Commission to delay the application of the Insurance Distribution Directive (IDD) has been welcomed by Michaela Koller, director general of Insurance Europe. The EU Parliament’s ECON...
HM Treasury updates draft ILS regulations
Further to the July 2017 versions, HM Treasury has published updated October 2017 versions of The Risk Transformation Regulations 2017 and The Risk Transformation (Tax) Regulations 2017, which will provide a new...
EIOPA publishes guidelines for “execution-only” sales of IBIPs under IDD
Further to a public consultation, EIOPA has published a final report on its guidelines for insurance based investment products (IBIPs) under IDD that incorporate a structure which makes it difficult to understand the...
Commission publishes funds distribution responses
The Commission’s consultation on cross border distribution of investment funds closed on 9 October, and the Commission has now published the 62 responses it received.
Commission asks ESAs for retail product evaluation
The Commission has published its formal request to the ESAs to report to it on the cost and past performance of the main categories of retail investment, insurance and pension products. It notes the reporting should be...
FCA agrees to scrutiny of RBS report
Following the controversy of FCA’s refusal to publish the skilled persons’ report into the treatment of customers in the RBS Global Restructuring Group and its correspondence with the Treasury Committee on...
ESMA launches financial instrument database
ESMA has announced the launch of the second phase of its Financial Instrument Reference Database (FIRDS). It provides access to reference data that will eventually allow market participants to identify instruments...
BoE updates resolution planning MoU
BoE has updated its MoU on resolution planning and crisis management between it, the PRA and Treasury. The MoU clearly sets out the duties of each entity and was last updated in April.
Chancellor’s repsonse to Treasury Committee’s letter on the effect of Brexit on insurance contracts
The Government has published a response to the Treasury Committee letter on Brexit and insurance contracts. The letter acknowledges the risk that the UK’s withdrawal could create legal uncertainties as to the...
BoE announces SONIA implementation date
The Bank of England (BoE) has confirmed an implementation date of 23 April 2018 for reforms to the Sterling Overnight Index Average (SONIA) interest rate benchmark. The March 2017 reforms will result in the following...
ABI comments on the impact of the GDPR on innovation in insurance
On 12 October 2017, the Association of British Insurers (ABI) published a blog on the impact of the GDPR on innovation in insurance. The ABI discusses a recent study on “Harnessing Innovation in European Insurance”...
FCA updates PSD2 forms
FCA has published several new and updated pages on its website with new application forms for firms making applications under PSD2. The updates cover payment institutions, e-money institutions and account information...
EBA publishes PSD2 complaints procedure guidelines
The European Banking Authority (EBA) has published final guidelines on the procedure for payment service users and other interested parties to submit complaints against PSPs in respect of alleged infringements of PSD2...
EBA’s Opinion on the UK’s departure from the EU
On 12 October 2017, the European Banking Authority (EBA) published an Opinion on issues relating to the UK’s departure from the European Union (EU). The Opinion is focused on the period prior to the departure of...
EIOPA speaks on future disruption to the insurance industry
Dr. Manuela Zweimüller, Head of Policy Department at EIOPA, has delivered a speech on what will the future hold? The European insurance industry in times of major disruption. The speech highlights challenges in respect...
Bond Dickinson financial services team ranked in Legal 500
The Bond Dickinson financial services team is delighted to have achieved a Legal 500 ranking. The new directory described the team as providing ‘responsive, practical, commercial and cost-effective’ advice to a wide...
ECON votes on TLAC
The ECON in the EP has voted to harmonise the bail-in hierarchy by supporting the Commission proposal for a new category of “non-preferred” senior class of debt instruments in line with the TLAC standard...
ICO fines bank for spam marketing
The ICO has fined Vanquis Bank £75,000 for sending 870,000 texts and 620,000 emails promoting its credit cards to recipients who had not consented to receive them. It had used marketing lists from other organisations...
ESMA issues post-trading FAQs
ESMA has published a set of Q&As on post-trading issues under MiFID 2 and MiFIR. There is currently only one question, on rules for straight-through processing.
Square Mile judicial complex receives backing from City of London Corporation
In a bid to bolster the capital’s reputation for financial and legal services post-Brexit, the City of London Corporation (CLC) has announced its backing for the development of a new court complex on Fleet Street...
FSB’s workplan for 2017/2018
On 6 October 2017, the Financial Stability Board (FSB) published its workplan, setting out the following areas of work for the remainder of 2017 and 2018: evaluating the effects of reform – the plenary agreed that...
Insurance Europe publishes GDPR Data breach notification template
Insurance Europe has published a webpage on cyber insurance and a template for breach notifications under GDPR.
ABI speech on the future of the insurance industry
Matt Cullen of the ABI has delivered a speech on the future of the insurance industry. The speech starts by outlining the current climate of political, economic, environmental, social and environmental change as a...
BoE reviews FinTech Accelerator progress
Andrew Hauser, Executive Director for Banking, Payments and Financial Resilience, has commented on the work of BoE’s FinTech Accelerator programme since its launch in June 2016. The programme sought to improve...
PRA consults on large exposures
PRA is consulting on changes to its large exposures rules to provide: enhanced guidance on application of criteria for core UK group and non-core LE group permissions; changing the non-core LE group calibration basis...
PRA consults on groups policy and double leverage
The PRA has outlined proposals on groups policy and double leverage in its latest consultation paper. Groups policy speaks to the distinction between individual legal entities (and the particular jurisdiction they are...
EBA announces 2018 work programme
The European Banking Authority (EBA) has today published its annual work programme in which it announced its strategic priorities for next year and beyond. EBA comments on the Commission’s legislative programme...
PRA comments on “Geofinance”
Sam Woods, speaking at Mansion House, commented on what he predicts to be an increasingly prevailing dynamic in financial institutions and financial regulation. Geofinance is the impact of geography on how banks...
FOS feeds back on PPI time limit changes
FOS has published feedback to its consultation on changes to the time limits for PPI complaints. It merely confirms the amendment to the Voluntary Jurisdiction in line with FCA’s changes to the Compulsory...
FCA publishes card change undertaking
FCA has published an undertaking from PPRO Financial Limited to make changes to its prepaid card terms and conditions. The Dutch AFM had referred the matter to FCA after it received complaints from customers under the...
PRA updates on IRB
PRA has published an update on its expectations on firms when they use the IRB approach.
PRA updates on Pillar 2A
PRA has refined its Pillar 2A capital framework from 1 January 2018 as part of its SREP reviews. It has published a new policy statement and update to its supervisory statement with instructions for reporting.
PRA makes leverage ratio changes
PRA has published changes to its reporting requirements relating to the leverage ratio, to apply to firms’ reporting and disclosure requirements from end of December 2017 onwards. The changes require banks to...
FCA updates on defined benefits concerns
FCA has updated on its work looking at how firms are advising customers on defined benefit pension transfers. It had noted the risks that many firms refer their customers to specialist transfer firms. FCA is concerned...
EIOPA work programme for 2018
EIOPA has published its Single Programming Document for 2018, highlighting and specifying the activities and tasks for the coming year, within the framework of a multi-annual work programme 2017-2019. EIOPA comments...
PRA updates on MREL
PRA has published a statement of policy on its approach to setting its minimum requirements for eligible liabilities and own funds (MREL). The statement explains PRA’s approach in relation to going- and gone...
FCA updates PSD2 web pages
FCA has updated its website to provide a set of new pages on PSD2. The pages aim to help firms that are: currently regulated as payment service providers currently excluded from regulation under the Payment Services...
Government announces Asset Management Taskforce
Stephen Barclay, City Minister, announced the creation of an Asset Management Taskforce to preserve the UK’s leading position as an asset management hub. Among his comments, he said: the Government sees delegation...
ESMA finalises MiFID 2 derivatives trading obligation
ESMA has published its final draft RTS implementing the trading obligation under MiFIR. The standards, part of the move to make OTC trading in liquid derivatives take place on organised venues, covers interest rate...
ESMA and NCAs agree waiver and position limit plans
ESMA and the national regulators in EU member states have updated their work plan for the opinions MiFID 2 requires on pre-trade transparency waivers and position limits. Around 700 of the former and 110 of the latter...
PSD2 and Open Banking – bringing opportunities for start-ups
In an Insight article published on 28 September 2017, the FCA explores the opportunities that the Payment Services Directive 2 (PSD2) and Open Banking may bring for start-ups. PSD2 is changing the rules for the banking...
European Commission adopts IDD delegated regulations
The European Commission has adopted the following two delegated regulations in relation to IDD: conduct of business rules for the distribution of insurance-based investment products; and product oversight and governance...
EU-US agreement on insurance and reinsurance
The European Commission has published a statement and a factsheet detailing the agreement reached between the EU and the US on prudential insurance and reinsurance measures. The agreement addresses three areas of...
Bank of England expects 130 licence applications before Brexit
Comments made by Sam Woods, Chief Executive Officer of the Prudential Regulation Authority (PRA) were reported in an article published by Reuters, in which he stated that the Bank of England expects at least 130...
FPC updates on stability
FPC has reviewed developments since its last meeting on 21 June and assess the outlook for UK financial stability. Its conclusion was that ‘overall risks to UK financial stability from the domestic environment are...
ESAs report on risks and vulnerabilities in the EU financial system
On 21 September 2017, the Joint Committee of the European Supervisory Authorities, published its September 2017 report on risks and vulnerabilities in the EU financial system, identifying Brexit and FinTech as two of...
PSR updates on payment scam work
PSR published its initial findings following its investigation into authorised push payment scams at the end of 2016. It plans to publish a progress report in November, with its thoughts on the next steps.
FCA and HK Insurance Authority sign MoU
FCA has entered into a co-operation agreement with the Hong Kong Insurance Authority to enable the two regulators to collaborate better to support Fintech innovation. FCA already has in place similar agreements with the...
FCA looks at ageing population
FCA has published an Occasional Paper looking at the ageing population and financial services. FCA’s research has found there is a risk that the financial services needs of older people are not being fully met...
FSCS launches “FSCS protected” badge
FSCS has announced a new agreement with banks and building societies, supported by industry associations, that will lead to institutions using the “FSCS protected” badge consistently across website, mobile...
EU plans CMU reforms
The Commission has proposed a package of reforms to further develop the CMU. The package comprises: EU-wide supervisory priorities set by the ESAs, which will also take a greater role in supervising the work of national...
fca publishes psd2 policy statement and final approach document
The FCA has today published its long awaited policy statement and approach document on the implementation of PSD2. The Policy Statement confirms changes to the Handbook and Approach Document guidance, and new non...
Treasury Committee letter to Chancellor on effect of Brexit on insurance contracts
The Treasury Committee has published a letter written to the Chancellor of the Exchequer highlighting the problem with insurance contracts sold under passporting arrangements with a duration beyond 29 March 2019. The...
FCA responds on leaked RBS report
FCA has responded to Nicky Morgan’s letter about the leaking of a s166 report on RBS’ treatment of customers in its global restructuring group. Andrew Bailey has reiterated that FCA does not think it is in...
HFSB changes name
The Hedge Funds Standards Board has changed its name to the Standards Board for Alternative Investments, to reflect the evolution of the alternative investment industry.
ESMA updates MiFID 2 FAQs
ESMA has updated its FAQs on MiFID 2 and MiFIR market structures. The updates relate to access to CCPs and trading venues and address timings of notifications and applications for exemptions by trading venues. ...
Update from the Bank of England and The Payment Systems Regulator on new payment systems operator
In a joint press release issued today, the Bank of England (BoE) and The Payment Systems Regulator (PSR) announced that a New Payment Systems Operator (NPSO) had been created by the Payment System Operator Delivery...
Insurance Europe calls for ‘grandfathering’ of existing insurance contracts post-Brexit
Insurance Europe has published a position paper calling for the ability of (re)insurers’ to service existing contracts issued on the basis of passporting before Brexit to continue to run post-Brexit. IE recommends...
FCA unhappy with consumer credit complaints handling – asks firms to take action
In a Dear CEO Letter, the FCA explains that it recently undertook a review of how consumer credit firms approach and deal with customer complaints. FCA reviewed data, final response letters and website information on...
FCA warns on risks of ‘ICOs’
The FCA has today made a statement on Initial Coin Offerings or ‘ICOs’. The FCA has said that ICOs, which can vary widely in design, are ‘very high-risk, speculative investments.’ They went...
AFME confirms MiFID 2 share trading obligation views
AFME has published a note setting out its views as to why the share trading obligation under MiFID 2 applies to a MiFID investment firm only when it is the final entity in the chain of execution. It says a firm that...
Article on cyber insurance underwriting risk
We have written an article published in Cyber Security Practitioner on PRA’s July 2017 Supervisory Statement on cyber insurance underwriting risk. The full article is available to subscribers.
AFME calls for Brexit transition clarity
AFME has called for early clarity on the Brexit transition. It says that while it is critical that transition arrangements are agreed soon, it agrees with the European Commission that they must be clearly defined...
FCA launches PPI campaign with help from ‘Arnold Schwarzenegger’
The FCA has today launched its PPI campaign with a television advert in order to raise awareness of the two year deadline to make a complaint about payment protection insurance. The deadline, which has been introduced...
Commission consults on post-trade services and the CMU
In 2001, the European Commission identified certain barriers relating to post-trade services, and although major changes have taken place in the capital markets such as EMIR, CSDR and SFTR), no review had been...
ESAs publish further Q&As on the Key Information Document for PRIIPs
Further guidance on the Key Information Document (KID) under PRIIPs was published by ESAs today in the form of questions and answers (Q&A). The Q&A includes additional questions and answers to those published on...
FCA Regulation round – up for August
This month’s edition of Regulation round-up discusses: the consultation to extend SM&CR to all financial services firms; the Threshold Conditions Team taking enforcement action and cancelling the...
FCA sets out its supervisory approach to PPI
The FCA has today announced that it will soon be launching a campaign to inform people of the 29 August 2019 deadline for making a complaint about PPI. The campaign will contribute to the regulatory and supervisory...