This week FOS published its regular newsletter in which it discussed: a rise in consumer credit complaints; statistics on complaints received in the first quarter of 2017/2018; and an update on PPI and the FCA’s...
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FIN. Team
European Commission publishes rules for insurance product information document under IDD
The European Commission has published a regulation laying down a standardised presentation format for the insurance product information document (IPID) to comply with IDD. The IDD must be transposed into national law...
HM Treasury reports on the progress of Insurance Fraud Taskforce’s recommendations
HM Treasury has published a report on the progress made during 2016 on the original 26 recommendations put forwards by the Insurance Fraud Taskforce. The Taskforce was set up to investigate the causes of fraudulent...
Government publishes DP Bill statement of intent
We have written an article on the Government’s statement of intent for the Data Protection Bill.
BoE NEDs review conflicts policies
The BoE’s non-executive directors have published a review of its approach to identifying and managing conflicts of interest within the BoE set up. There will be an update to the Bank’s Code of Conduct to...
Treasury Committee and PRA exchange Brexit letters
Nicky Morgan, new Chair of the Treasury Committee, and Sam Woods of PRA have exchanged letters on Brexit planning. The PRA response explained PRA’s work in assessing the scenarios that might have the biggest...
ASA unhappy at Amex ad
ASA has found a TV advert for American Express breached the BCAP rules on misleading advertising, qualification and exaggeration. On the ad, a voiceover claimed that “there is a card that could give you 5%...
FCA updates guidance to firms on applications and notifications under MiFID II
The FCA has updated its user guide to provide the following notifications: Ancillary activity exemptions Under MiFID II, firms who trade in commodity derivatives may be able to make use of an exemption from...
PRA consults on fees and levies for insurers and designated investment firms
PRA has published a consultation paper on model transaction fees, fees and FSCS levies for insurers and fees for designated investment firms. The consultation paper is relevant to insurers and designated investment...
eba publishes fintech discussion paper
The European Banking Authority has published a Discussion Paper on its approach to financial technology (FinTech). The EBA sets out in the Discussion Paper the results of the first EU-wide FinTech mapping exercise and...
PSR publishes consultation on Direct Debit Facilities Management: Switching providers
The Payment Systems Regulator has published its Consultation on provisional conclusions and proposals to change the Direct Debit rules relating to the switching of Facilities Management providers. Organisations wishing...
EBA releases CP on fraud reporting requirements under psd2
The EBA’s Consultation Paper on the Guidelines on Fraud Reporting under PSD2 (EBA/CP/2017/13) has been developed in close cooperation with the European Central Bank (ECB) to ensure that the high-level fraud...
FCA consults on FAMR: implementation Part II and insistent clients
The FCA has today published its consultation paper (CP17/28) on implementing two of the recommendations made in the final report of the Financial Advice Market Review (FAMR), which was published in March 2016. FAMR was...
FCA feeds back on high cost credit
FCA’s response to its call for input into its review of high cost credit has concluded it will keep the HCSTC cap at its current level, but review it again within the next 3 years. It has found an improvement in...
FCA updates on motor finance work
FCA has published further details of what it is doing to identify potential consumer harm in the motor finance market. It notes most new car finance is in the form of a Personal Contract Purchase, which is a form of...
ESAs advise the Commission on PRIIPs with environmental or social objectives
The European Supervisory Authorities (ESAs) have submitted their technical advice to the European Commission (the Commission) to set minimum requirements, which manufacturers of PRIIPs with environmental or social (EOS...
PRA releases consultation on the minimum requirement for own funds and eligible liabilities (MREL) – buffers – CP15/17
The PRA has today published a CP on its proposed expectations regarding the relationship between MREL and buffer requirements, including the consequences of not meeting these. The CP is relevant to all PRA regulated...
FCA foresees the demise of LIBOR in favour of SONIA
Andrew Bailey’s speech today on the future of LIBOR discussed the recent developments that had been made and interestingly, the decision to move away from the benchmark and towards one that is based on factors...
Alex Brazier, Executive Director of BoE delivers a speech entitled: ‘Debt Strikes Back’ or ‘The Return of the Regulator’?
Alex Brazier, Executive Director (Financial Stability) at BoE has delivered a speech in which he considers the recent developments in household debt, how that debt can pose dangers to the wider economy, and the three...
FCA publishes consultation paper on current account services
FCA has published a Consultation Paper (CP) on the information provided to customers about current account services. The CP was prompted by CMA’s recommendation that firms should publish objective measures of...
House of Lords calls for evidence on financial regulation and supervision following Brexit
The House of Lords EU Financial Affairs Sub-Committee (the Committee) is calling for evidence to support its inquiry into the future of UK financial regulation and supervision following Brexit. The Committee will...
FCA publishes consultation on Office for Professional Body Anti-Money Laundering Supervision
FCA has published a consultation on the proposed text for a specialist sourcebook setting out the new Office for Professional Body Anti- Money Laundering Supervision’s (OPBAS) expectations in relation to anti...
FCA publishes second Consultation Paper on IDD implementation
Following on from Consultation Paper (CP) 17/7, FCA has published CP 17/23 detailing further proposals on the implementation of the IDD in the UK. The CP is relevant to firms, including insurance and reinsurance...
HM Treasury publishes final ILS Regulations
Following two consultations in 2016, HM Treasury has published the final rules for a new tax and regulatory framework for insurance linked securities (ILS) business in the UK. The Risk Transformation Regulations 2017...
EC publishes draft Delegated Regulation on insurance-based investement product requirements under IDD
EC has published for consultation a draft Delegated Regulation supplementing the IDD concerning information requirements and conduct of business rules applicable to the distribution of insurance-based investment...
Law Commission consults on draft clauses for the Goods Mortgages Bill
This month, the Law Commission published a consultation paper on draft clauses that would form part of the new Goods Mortgages Bill, which replaces the Bills of Sale. Background In September 2014, HM Treasury asked the...
UK Finance and AFME publish guidance on the use of league tables
League tables are used to illustrate the ranking of investment banks and financial advisors in different activities. League tables can be aggregated to encompass all investment banking activities, or split according to...
ESMA publishes opinion on asset segregation and depositary delegation
On 20 July ESMA published its opinion on asset segregation and the application of depositary delegation rules to central securities depositaries (CSDs). In the opinion, ESMA outlines its view on: the optimal approach to...
ICO fines Moneysupermarket.com £80,000
ICO has fined Moneysupermarket.com Ltd £80,000 for sending 7.1 million unsolicited direct marketing emails over a period of ten days to update its customers on its Terms and Conditions. Crucially all the recipients of...
FCA Regulation Round-Up for July
The FCA published its July edition of Regulation Round-Up this week. Highlights of some of the “hot topics” covered include: interim report of the FCA’s Retirement Outcomes Review; the publication of...
UK Finance publishes updated Access to Banking Standards
UK Finance (the new industry association including, among others, the BBA) has updated its Access to Banking Standards in relation to bank branch closures. It is hoped that these changes will help banks provide...
FCA publishes Memorandum of Understanding with Hong Kong SFC
FCA has published a supervisory memorandum of understanding (MoU) with the Hong Kong Securities and Futures Commission. The MoU is an agreement between the Regulators to collaborate on some of their mutual supervisory...
CMA publishes decision on payment systems merger
CMA has published the full text of its decision on whether the anticipated merger of Bacs Limited, FPS Limited, and C&CC Limited would result in a substantial lessening of competition and would therefore be referred...
FCA finds funds should consider external risks
FCA’s review of fund suspensions and pricing adjustments following the Brexit vote has indicated that property funds should plan better to take external events into account so they can deal with liquidity risks. ...
PRA updates rules
PRA has published feedback on its Occasional Consultation Paper 2/17 and its consultation on regulatory reporting, together with finalised rules and policy statements. The new rules cover: minor amendments to the rules...
Lloyd’s publishes report on how it would respond to a market turning event
Following an industry “dry run” exercise in November 2016, Lloyd’s has published a report setting out six principles on how it would respond to a market turning event, which causes significant impact...
BoE publishes revised Settlement Account Policy
BoE has published a revised Settlement Account Policy to include non-bank PSPs in its real-time gross settlement (RTGS) system. It wants these changes to allow non-bank PSPs to compete on a more level playing field with...
FCA announces RTGS extension
FCA has announced that BoE is extending access to settlement accounts in its real-time gross settlement (RTGS) system to non-bank payment service providers (NBPSPs). This will enable NBPSPs to have direct access to the...
FCA publishes thematic review on customer understanding of retailing banking products
On 17 July FCA published a thematic review on customers’ understanding of retail banking products. The review was undertaken amid growing concerns that some customers fail to understand the key features of...
ICO fines loan firm for nuisance texts
The Information Commissioner’s Office has fined Provident Personal Credit Ltd £80,000 for sending nearly 1 million unsolicited texts promoting personal loans. The company used third party affiliates to send the...
FCA publishes Investment Platforms Market Study ToR
FCA has published MS17/1.1 as part of its assessment into the potential competition issues outlined in the Asset Management Market Study interim report and in its 2016/17 Retail Investment Sector View. FCA was concerned...
EBA publishes credit institution application standards
EBA has published its final draft RTS on information applications to be credit institutions should provide to competent authorities, and the templates they should use to provide it.
Banking Standards Board consults on certification risks and issues
The Banking Standards Board is consulting on guidance that will help firms identify and deal with risks and issues that arise when they are assessing fitness and propriety under the SMCR. The draft guidance covers:...
PRA issues consultation paper on Pillar 2 Liquidity
PRA has published Consultation Paper CP13/17 on Pillar 2 liquidity which includes the following proposals: for a cash flow mismatch risk (CFMR) and other PRA methodologies for assessing firms’ liquidity risk; A new...
FSCS annual report and accounts 2016/17: compensation costs total £375m
FSCS has published its annual report and accounts and annual report and class statements 2016/17, which set out its vision and strategy. The publications detail that FSCS paid out for over 37,000 claims 2016/17 in the...
Brexit: European Union (Withdrawal) Bill presented to Parliament
The Government presented the European Union (Withdrawal) Bill to Parliament on 13 July for its first reading. The Bill seeks to repeal the European Communities Act 1972 on the day when the UK leaves the European Union...
FCA publishes notice of undertaking by London General Insurance Company
London General Insurance Company Limited (LGI) has given an undertaking in respect of a term in respect of a Nationwide FlexPlus Account Extended Warranty Protection Policy. The policy set out a list of items that were...
LSB publishes ”2020 Vision” Business Plan
The Lending Standards Board has published its Business Plan for 2017/20 which outlines its aims and objectives for the next three years. LSB says it will achieve its goals by focusing on the following activities:...
ESMA publishes guidelines on cooperation between authorities under the Central Securities Depositories Regulation
ESMA has today published guidelines (the Guidelines) to ensure that competent authorities (CAs) apply the Central Securities Depositories Regulation (CSDR) in a consistent, efficient and effective supervisory manner...
EIOPA publishes opinion on supervisory convergence in light of Brexit
EIOPA has provided an Opinion addressed to national supervisory authorities on supervisory convergence in light of the UK’s withdrawal from the EU. EIOPA acknowledges that insurers may be seeking to relocate to or...
ESMA updates funds FAQs
ESMA has updated its FAQs in relation to UCITS and the AIFMD. The additions relate to: on the AIFMD, reporting requirements for loans purchased on the secondary market, conversion of total value of AUM and currency of...
Commission consults on non-performing loan market
The European Commission is consulting on a secondary market for non-performing loans. It seeks views on how to improve the market and specifically on loan servicing activities by third parties, and the transfer of loans...
FCA publishes ESMA statement on transitional provisions for the EU Benchmark Regulation
FCA has updated its webpage to include a set of questions and answers published by ESMA on the transitional provisions for the EU Benchmark Regulation (BMR). FCA says this is an important clarification for the industry...
Sam Woods speaks on importance of supervision
Sam Woods has given a speech at the Building Society Association Annual Conference on why supervision matters. The speech was given in May, but has just been published. Among the key points covered were: Supervision is...
ESMA updates Q&As on MiFID II and MiFIR investor protection and intermediaries topics
ESMA has today updated its Q&A topics on best execution and recording of telephone conversations and electronic communications. Best execution MiFID II requires investment firms to take all sufficient steps to...
BCBS and IOSCO publish a consultation paper on STC short-term securitisations
The Basel Committee (BCBS) and IOSCO have published for consultation the criteria for identifying simple transparent and comparable (STC) short-term securitisations. The proposed criteria follow on from the STC models...
Examining product governance guidelines under MiFID II
The product governance guidelines under MiFID II are part of the regulatory framework aimed at protecting investors across the EEA. ESMA published its final report on the guidelines on 2 June 2017. Bond Dickinson has...
Highlights of IAIS 10th annual global seminar
Following its annual global seminar, the International Association of Insurance Supervisors (IAIS) has published a press release which contains details of the seminar and highlights: The IAIS provided a high-level...
BoE responds to risks in life and general insurance sectors
David Rule, Executive Director of Insurance Supervision at BoE delivered a speech on 6 July at the Association of British Insurers (ABI) with a focus on risks and BoE’s supervisory priorities in the life and...
The conundrum of open-ended property funds
Property Funds can be either closed ended or open ended. In a closed ended fund (such as a Real Estate Investment Trust or “REIT”), the amount of equity invested is fixed and investors may gain liquidity by...
IOSCO consults on fund liquidity risk management
IOSCO is consulting on recommendations and good practices in liquidity risk management for funds, and has accompanied the consultation with examples of good and bad practices. The consultation builds on a report in 2013...
EBA calls for evidence from investment firms
EBA has started a supplementary data collection exercise aimed at supporting a response to the European Commission’s call for evidence to help it shape the new prudential framework for investment firms. EBA...
FCA publishes PBA complaints findings
FCA has published the findings of its review into how firms handle complaints about packaged bank accounts following its thematic review of October 2016. As it carried out the review, it looked particularly at recent...
BoE publishes its Annual Report and Accounts for 2016/2017
BoE’s has published its Annual Report and Accounts for 2016/2017 which sets out its main achievements for the year, including: Its One Bank strategy which aims to create a single, unified, institution across all...
PRA publishes its Annual Report and Accounts for 2017/2017
PRA’s Annual Report and Accounts for 2016/2017 outlines how it delivered this year’s business aims, including: Continuing to develop and implement the forward‑looking, judgement‑based supervisory regime;...
FSB publishes report on action plan to address decline in correspondent banking
By way of update to the G20 leaders, the FSB published a report on its action plan to assess and address the decline in correspondent banking (CB). In November 2015, the FSB published a four point action plan to assess...
Commission publishes PRIIPs KID guidelines
The Commission has published draft guidelines on the PRIIPs KID. The guidelines aim to promote consistency by smoothing out areas of potential divergences in interpretation. Questions the guidelines address (although...
Treasury publishes financial guidance responses
Treasury has published the responses it received to its consultation on creating a single financial guidance body. The new body has now been legislated for under the Financial Guidance and Claims Bill and will: be a non...
ESMA issues transparency calculations for non – equity instruments in readiness for MiFID2
MiFID 2 / MiFIR introduces transparency requirements for equity and non-equity instruments and allows competent authorities to waive the obligation for market operators and investment firms operating a trading venue...
EBA launches consultation on implementation of EBA Guidelines on methods for calculating contributions to DGSs
Article 13(3) of the Deposit Guarantee Schemes Directive (DGSD) requires the EBA to issue guidelines on methods for calculating DGS contributions by 3 July 2015, to ensure that the DGSD is consistently implemented in...
PRA response on dealing with a market turning event in the general insurance sector
PRA has published a supervisory statement (SS) and policy statement, relevant to all Solvency II firms, on dealing with a market turning event in the general insurance sector. The statements follow responses to an...
PRA publishes supervisory statement on cyber insurance underwriting risk
PRA has published a policy statement and supervisory statement on cyber insurance underwriting risk. The statements are relevant to all UK non-life insurance and reinsurance firms and groups within the scope of Solvency...
PRA issues policy statement on matching adjustment under Solvency 2
Following 12 responses received to the earlier consultation paper, PRA has issued a policy statement on matching adjustment – illiquid unrated assets and equity release mortgages. The policy statement includes the...
EIOPA calls for recovery and resolution framework for insurers
EIOPA has published an Opinion, which proposes a minimum harmonised and comprehensive recovery and resolution framework in the area of recovery and resolution for Solvency 2 (re)insurers. EIOPA’s view is that...
ESAs answer questions on the KID requirements for PRIIPs
The ESAs have published the first set of question and answers (Q&A) related to the KID requirements for PRIIPs. The purpose of the Q&A is to promote a common supervisory approach to the implementation of the KID...
EIOPA consults on first set of advice on Solvency II review
EIOPA has launched a project in a response to the call for advice by the EC and has published a consultation paper on the first set of advice. EIOPA’s focus is on the review of Commission Delegated Regulation...
BoE publishes record of Financial Policy Committee meeting
BoE has published a record of its Financial Policy Committee’s Meeting on 21 June 2017. The report reveals the reasoning behind the recommendations and decisions in its Financial Stability Report no. 41. in...
Basel Committee reports on Basel 3 implementation
The Basel Committee has reported to the G20 on how Basel 3 implementation has progressed since the last report in August 2016. Generally, there has been further, good, progress, leading to better capital and liquidity...
FCA consults on consumer credit staff incentives
FCA is consulting on how consumer credit firms should manage the risks inherent in staff remuneration and performance management. It has previously issued guidance covering firms in different sectors within SYSC 19...
EBA publishes consumer data usage report
EBA has published a report following its recent observations that a growing number of financial institutions use consumer data in innovative ways, often combining internally held data with data gathered from external...
Insurance Europe publishes PRIIPs information exchange templates
Insurance Europe has published the following templates in relation to the PRIIPS regulation: The European PRIIPs template, which includes the minimum data necessary for insurers to produce a KID; and The...
IAIS issues public consultations on its ICPs and product oversight in inclusive insurance
The International Association of Insurance Supervisors (IAIS) has launched public consultations on the following: draft provisions of its Insurance Core Principles (ICPs): ICP 1 (Objectives, Powers and Responsibilities...
Changes to SLP PSC requirements published
The Scottish Partnerships (Register of People with Significant Control) Regulations 2017, made on 22 June and taking effect mainly from 26 June, have been published. The Regulations transpose Article 30 of MLD4 on...
Creditworthiness Assessment Bill starts parliamentary process
The Creditworthiness Assessment Bill is making its way through Parliament. The Bill requires certain matters to be taken into account when assessing a borrower’s creditworthiness by mandating that FCA rules oblige...
WFE encouraged by Commission consultation on FinTech
The World Federation of Exchanges said it was encouraged by the Commission’s consultation on FinTech as it believed that it was important to get policy right in this area to avoid the rush to regulate. These...
FCA updates on FAMR
FCA has announced the names of the 17 firms who have to date participated in its advice unit . There have been two cohorts of firms, representing deposit-takers, pension firms, IFAs and wealth managers and has included...
FCA’s follow up work general insurance on appointed representatives
Following its 2016 thematic review, FCA has undertaken follow up work and visited 20 principal firms, focusing on London market insurance intermediaries that had diversified and developed networks of appointed...
EIOPA publishes first Solvency 2 statistics
EIOPA has published the first set of quarterly statistics on quantitative Solvency II reporting from insurance undertakings and groups in the EU and EEA. The statistics contain aggregated country level information about...
Commission launches pan-European pensions label
The European Commission is to launch a pan-European pension product (PEPP) that will have the same standard features wherever in the EU it is sold. The PEPP can be offered by a broad range of providers and will...
FCA speaks on retail banking regulation
Andrew Bailey has spoken at BBA’s retail banking conference on FCA’s perspective on retail banking. He highlighted 3 points: the importance of understanding business models, in the light of Northern Rock...
PRA and FCA consult on leverage ratio changes
PRA and FCA are consulting on changes to the leverage framework following the FPC’s recommendation to exclude claims from central banks from the leverage exposure measure, and compensate for doing so by increasing...
ILS regulations expected to come into force in the autumn
In a letter dated 26 June 2017, HM Treasury has written to the London Market Group (LMG) regarding the Group’s response to the Government’s Insurance Linked Securities (ILS) Project. The Treasury confirmed...
FCA speech on improving access to insurance
On 20 June 2017, Christopher Woolard, Executive Director of Strategy and Competition at the FCA, delivered a speech at the FCA Insurance Access event on improving access to insurance. Following the FCA’s...
FCA looks at competition and investment consultancy
FCA had made a provisional decision to make a market investigation reference of investment consultancy services. In February, three major providers of these services offered undertakings in lieu (UIL) for FCA to...
FCA publishes final asset management market study report
FCA has published the final findings from its asset management market study. It has considered the responses it received following its interim report and is now proposing a package of remedies falling into three broad...
BoE publishes Financial Stability Report
BoE has published Financial Stability Report no. 41 which sets out the views of the Financial Policy Committee (FPC) on the current financial stability of the UK, including an assessment of the risks to, and...
FCA confirms ban on choice restrictions in investment banking
FCA has published its policy statement and new rules banning firms from including within their customer documentation contractual clauses restricting competition without clear benefit to their clients. In particular...
Implementing Regulation on standard forms for DRSPs under MiFID 2 published in the OJ
Commission Implementing Regulation (EU) 2017/1110 of 22 June 2017 laying down implementing technical standards regarding standard forms, templates and procedures for the authorisation of DRSPs and related notifications...
Bills of Sale Acts to go
One of the few financial services-related measures discussed in the Queen’s Speech confirmed the Government will act on Law Commission proposals to repeal the Bills of Sale Acts and replace them with a Goods...
FCA consults on pension transfer advice
FCA is consulting on changes to its rules on advice relating to pension transfers, with a particular focus on transfers from defined benefit to defined contribution schemes. The changes seek to ensure consumers get...