On 20 June 2017, the Financial Conduct Authority published a Call for Input on access to insurance following the issues raised in its May 2016 Occasional Paper on access to financial services in the UK. The occasional...
Author - FIN. Team
FIN. Team
PRA amends IRB approach statement
PRA has published a policy statement on risk weights in the residential mortgages sector (PS13/17). The statement applies to banks and building societies who use an internal rating based (IRB) method to calculate...
FOS consults on PPI voluntary jurisdiction
In March 2017 FCA announced it was introducing a 29 August 2019 deadline for all PPI complaints to be submitted to firms or ombudsman services (subject to limited exceptions). This rule comes into effect on 29 August...
Chancellor makes Mansion House Speech
Philip Hammond has given the delayed Mansion House speech. He spoke of the Government’s priorities and its commitment to delivering better public services, higher real wages and increased living standards through...
EIOPA publishes ORSA assessment
EIOPA has published an assessment of the first supervisory experiences of how European (re)insurance companies have implemented the own risk and solvency assessment (ORSA) process under Solvency II. The key findings are...
EIOPA speaks on Brexit – “empty shells or letter boxes are not acceptable”
Gabriel Bernardino, Chairman of EIOPA, delivered a speech on opportunities, challenges and regulatory developments. Mr Bernardino concluded his speech with an explanation that EIOPA’s priority on Brexit is focused...
EIOPA signs another Memorandum of Understanding with World Bank
EIOPA and the World Bank have entered into a further Memorandum of Understanding (MoU). The MoU is for a period of three years and replaces the MoU signed in 2013. The Parties intend to collaborate, with a focus on...
EIOPA publishes 2016 annual report
EIOPA has published its annual report which reviews its mandate and programme of work during 2016. Highlights of what EIOPA considers to be its top achievements in 2016 include: Developments of the KID for PRIIPs...
John Griffith – Jones leaving the FCA
John Griffith – Jones has confirmed that he will leave both the FCA and the PSR at the end of his term of office on 31 March 2018.
IOSCO reports on order routing incentives
IOSCO has published a report looking at supervisory practices relating to incentives for order routing. It considers how different jurisdictions require firms to manage conflicts associated with routing orders and best...
EBA speaks on bank supervision priorities
Sabine Lautenschläger, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, gave a speech on what ECB regards as the four key priorities for successful bank supervision: Global...
FCA publishes pensions lifestyle strategy review
FCA has published the findings from its review of life insurers’ pension lifestyle investment strategies. It had asked 13 insurers what their approach was to these strategies in the light of the 2015 pension...
BoE speaks on operational resilience
Charlotte Gerken has spoken of the BoE’s approach to operational resilience. She focussed on how it is developing its approach in co-operation with firms and other regulators. BoE’s aim is to improve the...
PRA consults on regulatory reporting
PRA is consulting on minor changes to its regulatory reporting templates. It has found a few inconsistencies relating to forms on the Capital + data items, and an error in the Regulatory Reporting Glossary. ...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes changes to: TC to update the list of appropriate qualifications; SUP to clarify how the requirement to have a client assets report applies to loan-based crowdfunding...
Court concludes an insured with policy for buy-to-let property is a not consumer
The Court of Appeal has dismissed an appeal by an insured because he was not a consumer within the meaning of ICOBS and the Unfair Terms in Consumer Contracts Regulations 1999 (the Regulations). The insured took out a...
ESMA responds on Fintech
ESMA has responded to the Commission’s consultation on Fintech. It sees Fintech as a positive evolution so long as business models continue to aim to improve the customer experience and financial inclusion. It...
ECON publishes draft retail FS plan
The EP has published a draft report on the Action Plan for retail financial services. The report: says the EU retail financial services market is still underdeveloped and fragmented, but recognises that such a market...
EBA finalises PAD terminology and disclosure Annex
EBA finalised its technical standards on standard terminology and disclosure under the PAD and submitted it to the Commission in early May. It has now published the Annex which contains the 8 terms in all official...
ICO publishes Information Rights Strategic Plan 2017 – 2021
The Information Commissioner’s Office (ICO) recently published its information rights strategic plan 2017 – 2021. The strategic plan sets out the ICO’s mission to increase the trust that the public has in...
ESMA updates MiFID 2 FAQs
ESMA has updated its set of FAQs on MiFID 2 to address issues relating to market structures, commodity derivatives and transparency. It has also published its opinion on transparency and position limit regimes for...
ABI speaks on UK insurance industry
The ABI has spoken on the opportunities regulation can offer for the industry, which are getting wider – for example, willingness of the industry to see the competition regulator becoming involved in their markets...
ESMA updates funds FAQs
ESMA has updated its FAQs on the AIFMD and the UCITS Directive. Both address the exemption for intra-group transactions for the purposes of EMIR. The AIFMD set also addresses notifications of AIFs domiciled in another...
Why banks are partnering with fintechs
Bond Dickinson’s new economic study looks at the volume of investment by financial institutions in UK SMEs. It found financial services is far ahead of any other UK industry. The report looks at volumes of...
FCA publishes assessing suitability review
FCA has published the findings of its review into the suitability of advice given by firms on pensions and investments. The review started a year ago, and assessed over 1,000 pieces of advice given by 650 firms for...
FCA proposes guidance on insurance Part VII transfers
FCA has issued guidance on its approach to reviewing insurance business transfers schemes under Part VII of the Financial Services and Markets Act 2000. While the PRA leads the Part VII process, the FCA also has a role...
Article on the implementation of IDD
We have written an article for Compliance Monitor on the implementation of IDD, looking specifically at consultations by HM Treasury and the FCA on the proposed changes to UK law and regulation.
PRA updates policy statements on accountability regimes
Following feedback received on Consultation Paper 34/16, PRA has published its policy statement on strengthening individual accountability in banking and insurance: amendments and optimisations. The updates in the...
FCA and SFC to co-operate on Fintech
FCA and the Hong Kong Securities and Futures Commission have signed a MoU to co-operate with each other on information sharing and referrals of innovative firms wanting to enter each other’s markets. This is the...
EBA publishes PAD standards
EBA has published its final draft technical standards under the Payment Accounts Directive on standard terminology for services linked to a payment account, and standardised formats and common symbol of the Fee...
The European Data Protection Supervisor publishes 2016 Annual Report
Giovanni Buttarelli, the European Data Protection Supervisor (EDPS) presented the EDPS Annual Report 2016 to the European Parliament’s Committee on Civil Liberties, Justice and Home Affairs on 4 May 2017. By way of...
FCA makes CRD IV remuneration guidance
FCA has made its final rules and guidance on remuneration in CRD IV firms, which it has aligned to EBA guidelines. The changes take effect immediately, since the EBA guidelines came into force at the beginning of 2017...
PPI: the final countdown
We have written an article on the new timescale for handling PPI complaints, the FCA’s customer communications campaign and its new rules on writing to customers whose complaints have previously been rejected and...
FCA makes PRIIPs disclosure rules
FCA has made the rules that will change disclosure requirements on application of the PRIIPs Regulation, which should be from 1 January 2018. FCA has provided as much clarity and certainty as it can, to help firms...
PRA makes MiFID 2 rules and opens for notifications
PRA has published its policy statement with relevant supervisory statements and rule changes in relation to MiFID 2 implementation. The changes: introduce new PRA rules to implement the MiFID 2 requirements on the...
EIOPA publishes thematic review on monetary incentives and remuneration between insurers and providers of asset management services
EIOPA has published its thematic review on consumer protection issues in the unit-linked market emerging from the business relations between providers of asset management services and insurance undertakings. The review...
EIOPA calls for evidence following European Commission’s 2nd request for technical advice on Solvency 2 Delegated Regulation
EIOPA is seeking responses on the treatment of unlisted equity and debt without an External Credit Assessment Institution rating in the standard formula. This request is further to the European Commission’s...
Commission speaks on FS policy
Valdis Dombrobskis has spoken on the challenges for EU financial services policy. He noted that the positivity of the European economic recovery is tempered by uneven progress across Member States, even before the...
FCA finalises mortgage payment shortfall guidance
FCA has finalised its guidance on the treatment of customers with mortgage payment shortfalls. The guidance addresses how firms should remediate for customer who may have suffered because of the way some firms calculate...
LMA updates consumer wordings guidance
The Lloyd’s Market Association has published an update to its jointly prepared guidance on consumer wordings for managing agents. The guidance has been updated in the following areas: Claims handling –...
LMA publishes EU contract continuity clause
The Lloyd’s Market Association has published a model clause as guidance for its Members. The clause is designed to enhance contract certainty on the occurrence of an event associated with membership of the...
ICO fines financial firm for sending unsolicited texts
The ICO has fined Monevo Limited, a finance brokerage firm, £40,000 for sending unsolicited marketing texts without proper consent. Between April 2016 and June 2016, the company sent 44,172 texts encouraging people to...
The Government calls for views on GDPR derogations
The UK Government has launched a Call for Views on the derogations (exemptions) from the EU General Data Protection Regulation (GDPR), which comes into force on 25 May 2018. Although there is limited scope for...
Draft GDPR Guidance receives a significant response
The Information Commissioner’s Office (ICO) recently announced that it has received a large number of responses to its consultation on the draft GDPR Consent guidance. The GDPR Consent guidance sets down the...
Bond Dickinson commercial insurance timeline
We have prepared a commercial insurance timeline which highlights key legislation, regulation, cases and other developments that impact on the industry. This timeline covers developments from March 2017 onwards.
PRIIPS RTS in OJEU
The RTS on the presentation, content, review and revision of the PRIIPs KID have been published in the OJEU and will take effect from 2 May.
FCA looks at consumer behaviour and advertising
FCA has published an occasional paper that looks at the behaviour of consumers and the consequences it has on their reaction to financial promotions. The paper considers: how consumers will look for and find promotions...
FCA updates on conduct risk priorities
FCA has published a series of new webpages following its annual conduct meetings with the largest firms in the regulated community. It asks the largest wholesale banks the following 5 conduct questions: What proactive...
FSCS confirms £363m levy for 2017/18
FSCS has announced its levy for 2017/18. The £363m is less than forecast in the FSCS’ 2017/18 Plan and Budget in January, but more than the 2016/17 levy. The 2017/18 levy includes: no change to the £100m levy on...
PRA launches general insurance stress test 2017
PRA has asked the UK’s largest general insurers to provide information about the impact of a range of stress tests on their projected Own Funds, as well as providing additional information on their sectoral...
FCA speaks on the next phase of Project Innovate
On 10 April 2017, Christopher Woolard, the FCA’s Executive Director of Strategy and Competition delivered a speech at the Innovate Finance Global Summit in London. The speech considers the work of the FCA’s...
FCA publishes discussion paper on distributed ledger technology
The FCA has published a discussion paper on distributed ledger technology (DLT). The discussion paper describes DLT and acknowledges blockchain as a type of DLT. The FCA invites a discussion on two sets of issues: What...
Riot Compensation Act 2016 comes into force
On 6 April 2017 the Riot Compensation Regulations 2017 and the remaining provisions of the Riot Compensation Act 2016 came into force, with the former required to implement the Act effectively. The new legislation...
ESMA reports on fund notifications
ESMA has published a report on notification frameworks and home-host responsibilities under the UCITS and AIFMD regimes. It carried out a study looking at the cross-border management and marketing activities of UCITS...
PRA asks firms to provide Brexit contingency plans
Sam Woods, the PRA’s CEO, has published a letter seeking contingency plans from firms in light of the UK’s impending withdrawal from the EU. The letter is relevant to banks, insurers and designated investment...
ESMA updates funds FAQs
ESMA has updated its FAQs on AIFMD and UCITS. The additions focus on: clarifying that the AIFMD marketing passport under Article 32 AIFMD can be used only for marketing to professional investors as defined in AIFMD and...
Article on the Enterprise Act 2016 – late payment of insurance claims
We have written a detailed summary on the late payment of insurance claims provisions of the Enterprise Act 2016, which will come into effect on 4 May 2017. These provisions are likely to have a significant impact on...
FOS updates on plans and caseload
FOS’ latest Ombudsman news highlights its plans for the year ahead and current statistics. Its case updates focus on complaints where mistakes or misunderstandings led to consumer loss, and where financial...
ESMA looks at MiFID 2 investor protection
ESMA has added 10 new questions to its Q&As on investor protection under MiFID 2 and MiFIR. The new questions cover: timing requirements for execution reports; how to report when orders are sent for execution to...
Private Fund Limited Partnerships introduced
The Legislative Reform (Private Fund Limited Partnerships) Order 2017 comes into force on 6 April and amends the Limited Partnerships Act to introduce the “private fund limited partnership”. Treasury has...
UK triggers article 50
On 29 March, as promised, Theresa May wrote to Donald Tusk triggering Article 50 of the Treaty on European Union. The letter stresses the vote to leave the EU does not mean the UK is leaving Europe, nor did it attempt...
LSB publishes new business lending standards
LSB has published an updated version of the Standards of Lending Practice. The update follows the Lending Code review, and replaces it from 1 July. The new Standards also extend business customer protection to small...
Investment Association consults on disclosure
The Investment Association is consulting on an industry code for standardising disclosure for charges and transaction costs. The Code is designed to help trustees and governance committees of pension funds to access and...
PRA consults on fees
PRA has published its proposals for regulated fees and levies for 2017/18. Key proposals include: an estimate of a 2% increase in PRA’s budgeted cost for ongoing regulatory activities and a new estimate costs...
European Commission publishes FS action plan
The Commission has published its Financial Services Action Plan for a “deeper and fairer Single Market”. As ever, the priority is to enhance competition and improve consumer choice, regardless of where and...
Bond Dickinson named Insurance Team of the Year 2017
At the Legal Business Awards on 23 March, we were delighted to win Insurance Team of the Year 2017. Click here to read more about our team’s achievement.
Treasury Committee concerned about cyber strategy accountability
Andrew Tyrie (Chairman of the Treasury Committee) and Philip Hammond have been exchanging correspondence about cyber security in the financial services sector. Mr Hammond also chairs the National Security Council...
BOE’s Independent Evaluation Office reviews PRA’s approach to its insurance objective
The Bank of England’s Independent Evaluation Office (IEO) has published its evaluation of the PRA’s approach to its insurance objective. The PRA’s insurance objective is to contribute to the securing...
PRA Chief Executive Officer delivers speech on insurance supervision
On 20 March 2017, Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA delivered a speech on insurance supervision at the PRA. Mr Woods commented that a precondition to the success...
BoE speaks on ethics and culture in banking
Mark Carney has spoken on the work to improve the culture of the banking industry. He commented that the banking industry has suffered twin crises of solvency and legitimacy. The solvency problems are being addressed by...
Government responds on Brexit report
Treasury has responded to the EU Financial Affairs Sub-Committee’s report on Brexit: Financial Services. The report, published in December, highlighted among other things the importance of agreeing a transitional...
Consultation on cheque imaging
The Cheque and Credit Clearing Company is consulting on the technical design of the Image Clearing System (ICS) need to meet the introduction of new technology later this year that will enable faster processing of...
PRA’s Deputy Governor and CEO responds to Treasury committee call for further evidence on EU insurance regulation
Sam Woods, the PRA’s Deputy Governor and CEO, has published a letter addressed to the Treasury Committee on EU insurance regulation. The letter is a preliminary response to requests by the Committee for further...
ICO fines credit broker for unsolicited texts
The ICO has fined a credit broker £20,000 for sending unsolicited communications in breach of regulation 22 of the Privacy and Electronic Communications (EC Directive) Regulations 2003. Munee Hut markets its services...
FCA speaks on culture
Andrew Bailey has given a speech at the Hong Kong Monetary Authority (HKMA) Annual Conference for Independent Non-Executive Directors in Hong Kong. He spoke about the culture in financial institutions, setting out what...
BSB report shows areas for improvement
The Banking Standards Board’s first annual review has found some good practices across the banking industry, but also several areas that need improvement. Firms generally still need to work on responsiveness...
IAIS highlights Fintech impact
The International Association of Insurance Supervisors (IAIS) has published a report looking at the possible impact of Fintech on key parts of the insurance industry. It says innovations could fundamentally change the...
PSR looks forward to increased payment systems access
PSR’s annual report on access and governance of payment systems looks forward to new providers getting direct access to the interbank payment systems in the next year. It hopes this will improve competition in...
Commission adopts PRIIPs delegated act
The European Commission has finally adopted the delegated Regulation on RTS under the PRIIPs Regulation, specifying the presentation, content and format of the PRIIPs KID, the methodology for presenting risk and reward...
FCA heralds SMR 1 year on
FCA has noted the anniversary of the SMR taking effect, as the rules on regulatory references now come into force. Firms also had to have issued certificates for all staff who fall within the certification regime, and...
IA updates authorised funds guidance
The Investment Association (IA) has published an updated version of its guidance for members on authorised funds. This is a document designed for use by investors who are considering investment in a UK authorised fund...
Dormant assets scheme to expand?
The Independent Dormant Assets Commission has published a report which looks at whether the current dormant asset scheme, which includes funds in banks and building societies, could be extended to other types of assets...
FCA consults on IDD implementation
Following the publication of the Treasury’s consultation on 27 February 2017, the FCA has published the first of its two-part consultation on the transposition of the Insurance Distribution Directive (IDD) which...
FCA concerned on dealing commission use
FCA is concerned that firms are failing to meet expectations on use of dealing commission. It carried out a review of 31 investment managers, to see how they had responded to its 2014 discussion paper on the use of...
FCA concerned on best execution
FCA has warned investment managers it may take further action after finding that they have failed to meet expectations on securing best execution for their clients. FCA is concerned the majority of firms have not taken...
ICO and FCA hold big data use forum
The Information Commissioner’s Office (ICO) and FCA have published a summary of their forum on the use of Big Data in retail general insurance. The forum, held on 16 January 2017, was to engage with the insurance...
FCA makes final PPI complaint rules
FCA has published a policy statement on PPI complaints, setting out feedback on its consultation paper and final rules and guidance. Alongside this, FCA published an information sheet outlining the new basis for making...
European Commission speaks on Fintech
European Commission Vice President Valdis Dombrovskis spoke at a Fintech and Digital Innovation Conference. He noted the need to keep up with change and for regulators to fully understand new technologies and regulate...
FCA writes to P2P CEOs
FCA has written a Dear CEO letter to firms that operate loan-based crowdfunding platforms that facilitate loans to lending businesses. It highlights that if a lending business borrows through a platform and then lends...
Treasury updates on financial advice
Treasury has published the outcome of its consultation on the definition of financial advice. It has decided to amend the definition so that: regulated firms will be giving advice only where they provide a personal...
Regulators publish LTI guidance
PRA and FCA have published a policy statement and finalised guidance respectively on loan to income (LTI) ratios in mortgage lending with immediate effect. In June 2014, the Financial Policy Committee issued a...
Court dismisses judicial review application of FOS decision
The court has dismissed an application for judicial review by Full Circle Asset Management Ltd (FCAM), a firm of financial advisors, of a decision by FOS. FOS had upheld a complaint made by an FCAM’s client, Mrs King...
Government announces Fintech week
The Government has announced the date of the 2017 Fintech week. It will take place in the week of April 10, and will include: Innovate Finance’s Global Summit the Government’s first International Fintech...
Lord Chancellor lowers discount rate for personal injury claims
The Lord Chancellor has announced changes to personal injury compensation payments. With effect from 20 March 2017, the discount rate for personal injury claims will change from 2.5% to minus 0.75%. The discount rate is...
CML supports borrower guardian bill
CML has given its support to the Guardianship (Missing Persons) Bill. It says the Bill would help lenders make pragmatic arrangements with guardians of missing borrowers to act in the best interests of those borrowers...
ICO fines credit broker for unsolicited texts
The ICO has fined Digitonomy Ltd £120,000 for sending millions of marketing texts without proper consent. The company is an FCA-authorised credit broker, which generates leads for its business through affiliates sending...
Court should examine all terms for fairness
A recent case heard in the ECJ states that courts have a duty under the Unfair Terms in Consumer Contracts Directive to assess all terms in a contract for fairness, even if one specific term has already been considered...
FCA looks at illiquid asset risks
FCA has published a discussion paper looking at the issues that arise when open-ended funds invest in illiquid assets, such as real estate, infrastructure and unlisted securities. It seeks views generally, but also...
EIOPA proposes draft IPID
EIOPA has submitted draft ITS under the IDD for the Insurance Product Information Document (IPID). Much like its various predecessors and counterparts in other products, the IPID is designed to provide concise, simple...
CMA publishes final retail banking order
The final order implementing the retail banking reforms has been published. It sets out the timetable for introducing the various remedies the CMA recommended, including: open banking: the largest UK banks must develop...