In a statement made at an ECB Fintech Workshop, Sabine Lautenschläger (Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB) told the audience how the ECB sees some of the...
Category - Insurance
NUMBER OF CONSUMER COMPLAINTS MADE TO REGULATORS RISES – BONDS AND OTHER DEBT SECURITIES NOW MOST COMPLAINED ABOUT
ESMA’s recent report on trends, risks and vulnerabilities (TRV) reveals that the total number of complaints reported across the EU was 7,026 in 1H16 compared to 5,152 in 2H15. The three most common causes among...
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...
FIN. TeamEuropean 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...
European Commission releases public consultation on FinTech as part of Consumer Financial Services Action Plan
In a statement released today, the European Commission has presented an Action Plan that sets out ways to provide European consumers with greater choice and better access to financial services across the EU. At its...
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...
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...
Treasury speaks on Fintech
Simon Kirby, Economic Secretary to the Treasury, spoke at the LSE Global Fintech Investor Forum where he emphasised UK dominance in Fintech innovation. Mr Kirby gave three examples of what others envy in the British...
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...
UK and Japan to co-operate on innovator firms
In the latest co-operation agreement between UK and AsiaPac regulators, FCA has exchanged letters of co-operation with the Japanese Financial Services Agency, under which the regulators will provide a...
Spring budget recommendations for regulators
Philip Hammond’s Spring Budget has not sprung any surprises on financial regulation. The Chancellor is required to write to FCA and PRA (to be operated by the Prudential Regulation Committee) each year with...
Emma RadmoreFCA 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 publishes quarterly consultation
FCA’s latest quarterly consultation, quarterly consultation no.16 proposes changes to: DEPP and EG reflecting the FCA’s powers following the Bank Recovery and Resolution Order 2016: these would set out the...
In the FCA pipeline
FCA has updated its policy development webpage for March 2017. Key publications due before the summer include: March/Q1 2017: IDD Implementation – CP1 MAR 1 changes: inside information relating to commodity derivatives...
Emma RadmoreICO 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...
BoE makes “PRC” terms of reference
The Bank of England published terms of reference for the Prudential Regulation Committee (PRC). The PRC has responsibility within the Bank for exercising the Bank’s functions as the PRA under the amended Bank of England...
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...
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...
Treasury consults on IDD implementation
Treasury is consulting on UK transposition of the IDD, which must take place by 23 February 2018. Treasury notes that many of the key changes the IDD brings will not have a significant effect on UK firms since, for...
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...
FCA to consult on SMR extension
FCA is to consult on the extension of the SMR to all authorised firms during the second quarter of 2017.
EU Fintech report to be debated in May
The EU legislative observatory indicates the EP’s report on Fintech is to be debated in committee session in mid-April and in plenary in mid-May. The draft opinion focuses on the benefits of Fintech for SMEs and...
MiFID 2 application guide
We’ve written an article on FCA’s recent MiFID 2 application and notification guide.
FCA invites views on website
If you, like us, have views on FCA’s recently revamped website, you have a chance to let FCA know. It has invited views, in an online survey.
Our FinTech predictions for 2017
Read the predictions of Bond Dickinson partners Claire Coleman and Simon Richardson on the year ahead for FinTechs.
FOS focuses on complainant age
The latest edition of Ombudsman News looks at the types of complaints FOS addresses from people under 25. PPI is not a concern for them, with the majority of “millennial and post millennial” complaints...
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...
Government publishes Brexit White Paper
The Government has published its White Paper on building a new relationship with the EU after Brexit. The paper looks at the basis on which the Government wants to address the 12 principles Theresa May set out on 17...
FCA updates on skilled persons reviews
FCA has published the figures showing the number of skilled persons reviews it initiated in Q3 2016. Of the 15 reviews, 5 concerned asset management and 5 concerned insurers/
FCA consults on Insurance Linked Securities
FCA is consulting on the changes it needs to make to its rules to incorporate the new regulated activity of insurance risk transformation. The consultation complements FCA and PRA’s consultations on authorisation...
FCA publishes Regulation Round-up
FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim...
FCA publishes insurance value measures scorecard
FCA has published the first set of data in its general insurance value measures scorecard. The study covers the year to the end of August 2016 and finds poor value in both add-on and stand alone products. It also notes...
Lloyd’s welcomes insurance agreement
John Nelson, chairman of Lloyd’s, has welcomed the EU-US agreement on insurance and reinsurance. He stressed the importance of abolishing statutory collateral requirements, and praised the agreement for regulatory...
May confirms Brexit Plan
Industry has reacted to Theresa May’s speech of 17 January, when she confirmed Britain would leave the single market. In her speech, the Prime Minister reiterated that it is for the Government alone to invoke...
FSCS publishes plan and budget
FSCS has published its plan and budget for 2017/18. FSCS estimates that firms are likely to have to pay a total levy bill of £378 million to cover its costs. Points of interest include that FSCS: intends to raise...
PRA and FCA consult on FSCS levy limit
FCA and PRA have issued a joint consultation paper on the management expenses levy limit (MELL) for the FSCS for 2017/18. The MELL provides the FSCS with adequate resources to process compensation claims resulting from...
Brexit Committee calls for Parliamentary vote on Brexit deal
The first report of the committee on exiting the EU calls for the Government to publish its Brexit plan by mid-February, and says that plan should set out the Government’s position on membership of the single...
House of Commons looks at legislating for Brexit
The House of Commons Library has published a report looking at how many EU laws are directly applicable in the UK (around 5,000), and will therefore cease to apply in the UK once the European Communities Act 1972 is...
The good, the bad and the ugly: FCA reviews insurance intermediaries’ professional indemnity insurance
In December 2016, the FCA published findings from its thematic review (TR16/9) of general insurance intermediaries’ (“GI intermediaries”) professional indemnity insurance (“PII”). The FCA...
Scotland’s Place in Europe
On 20 December 2016, the Scottish Government published what is would like to see happen after Brexit in its discussion paper on “Scotland’s Place in Europe”. The paper sets out the importance of continued European...
FCA’s Future Mission: key themes from feedback
FCA has published initial feedback from the consultation process into its proposed mission statement. Key themes include: a desire for a clearer rationale for FCA decisions, and what FCA chooses to do and not to do;...
Parliament urges FS transition after Brexit
The EU Financial Affairs Sub-Committee has published its report on Brexit and financial services. The report says it is critical to agree a transitional period for financial services to avoid a “cliff edge”...
FOS consults on plan and budget
FOS is consulting on its plan and budget for the year ahead. It expects record numbers of PPI complaints, with a steady level of complaints in the banking, insurance and investment sectors. It plans to keep the case...
FCA consults on FSCS changes
FCA is consulting on changes to FSCS rules and funding. It is considering introducing mandatory terms to make PII more effective for firms that FCA requires to hold it, and also exploring introducing new levy categories...
Article: FinTech firms navigate regulatory uncertainty
Current laws and regulations weren’t designed with FinTech or InsurTech in mind, so startups must – on top of their business proposition – implement appropriate compliance procedures and grapple with legal uncertainties...
EP publishes Brexit briefing
The European Parliament has published a briefing on the impact of Brexit on the financial services industry. The briefing describes the prominent role of the UK in the single market for financial services and highlights...
FOS looks at mental health and complaints
The latest issue of Ombudsman News focuses on complaints firms have received in respect of customers with mental health issues.
LSB calls for data on digital
LSB is calling for evidence as part of its Standards Development project to look at firms’ digital capabilities. It asks: What are the main challenges faced when developing products and services for digital...
FCA explains RMAR
FCA has published a summary of why it collects data for the RMAR and how it uses it. Its key purpose is to help it supervise firms in a way to minimise poor consumer outcomes in the retail investment market. The data...
PRA updates skilled persons data
PRA has published an update on skilled persons reports it has commissioned. In the last reporting period, it commissioned 4 reports, all on insurers.
FCA announces HK cooperation
FCA has signed a MoU with the Hong Kong Monetary Authority to enable the authorities to collaborate on a number of initiatives such as referrals of innovative firms, joint innovation projects, information exchange and...
Treasury prepares for PRA changes
Treasury has published a draft statutory instrument which prepares for the transfer of the PRA into the Bank of England under the Bank of England and Financial Services Act 2016, which is likely to happen in the first...
FCA consults on regulatory fees and levies
FCA is consulting on policy proposals for regulatory fees and levies in 2017/18. The main areas in which it proposes to increase its fees are to cover its costs of tackling illegal money laundering and of implementing...
PRA and FCA consult on insurance special purpose vehicles
The PRA and FCA have issued a consultation paper on the authorisation and supervision of insurance special purpose vehicles (ISPVs). An ISPV is used in the transfer of risk from a (re)insurer to the capital markets by...
EP votes on PRIIPs delay
The European Parliament has voted to delay application of the PRIIPs Regulation to 1 January 2018, but the EU process must work fast to ensure the official measures are in place before the original implementation date.
Autumn Statement financial services round up
The Chancellor’s Autumn Statement contained several statements relevant to financial institutions and insurers – some announcements of initiatives already planned or even implemented, and some new promises. We...
FinTech bridge to China agreed
Announced as part of the 8th annual UK-China Economic and Financial Dialogue at Lancaster House in London this month, the FCA has signed a Co-operation Agreement with the People’s Bank of China in a bid to share...
Government launches FinTech one stop shop
Treasury has announced the launch of the Department for International Trade’s new FinTech “one stop shop”The service is part of the FinTech bridge program the UK has in place with Singapore, Korea and...
PRA consults on cyber insurance underwriting risk
PRA is consulting on a proposed new supervisory statement that sets out how it expects all Solvency 2 firms to prudently manage cyber underwriting risk. PRA carried out thematic work which highlighted a number of risks...
Commission to delay PRIIPs
The European Commission has proposed to delay the implementation date of the PRIIPs Regulation by one year to 1 January 2018. The proposal follows the European Parliament’s rejection of the RTS to be made under...
FCA summarises financial services under WTO
Andrew Bailey has written to the Treasury Committee outlining what the regulatory landscape for financial services would be if the UK were a “third country” in respect of the remaining EU27, with access...
FCA updates on sandbox use
FCA has published a list of firms who it allowed to begin testing new products in its regulatory sandbox. It received 69 applications in its first wave, of which it accepted 24. Successful applicants range from the...
FCA reviews PBAs
FCA has published the results of its thematic review into how packaged bank accounts (PBAs) are working since it introduced new rules in 2013. FCA introduced the rules to help customers understand how packaging worked...
PRIIPs delegated regulation regarding product intervention published in OJ
The Commission Delegated Regulation (EU) 2016/1904 supplementing the PRIIPs Regulation was published in the Official Journal on 29 October 2016. Under the PRIIPs Regulation, national competent authorities and EIOPA have...
Treasury consultation on distributable profits of long-term (life) insurers
The Treasury has launched a consultation on technical changes to the legal definition of life insurers’ distributable profits, in the light of the implementation of Solvency II and the necessity for consequent...
PRA and FCA final rules on regulatory references
Following a period of joint consultation, the PRA and FCA have recently published policy statements setting out the final rules on regulatory references. The final rules will come into force on 7 March 2017 and will...
FCA updates on smarter communications
FCA has updated its guidance on smarter communications with customers. It has removed some ineffective disclosure requirements from its rules, and published feedback on its discussion paper, looking at how firms can...
City publishes Brexit report
On 5 October, the City UK published a report by Oliver Wyman looking at the potential impact of Brexit on the UK-based financial services sector. The report looks at the potential consequences of various possible Brexit...
Removal of ineffective disclosure requirements from FCA Handbook
The FCA’s policy statement PS16/23 follows its consultation paper CP15/32 which contained its proposals to remove certain disclosure requirements from the Handbook. The policy statement confirms the removal of...
PRA and FCA feed back on accountability
PRA and FCA have published several papers on the SMR, SIMR and accountability standards. FCA’s supervisory review of the SMR highlights its views that firms have, in general, engaged well. It gives detailed...
Market turning event in the general insurance sector: PRA consultation
The PRA issued a consultation on 21 September 2016 on a draft supervisory statement regarding its expectations of general insurance firms in circumstances where there is a general loss event which might affect...
Big Data in retail general insurance: FCA feedback statement
In November 2015, the FCA published a call for input on ‘Big Data’, ie the use of new or expanded data sets, new technologies to generate, collect and store data, and sophisticated analytical techniques...
FCA publishes passporting figures
In response to the Treasury’s Committee’s investigation into the potential effects of Brexit, FCA has revealed details of the number of single market passports used by UK firms to passport into other EEA...
Treasury Committee to review Solvency 2
The Treasury Committee is taking the opportunity of Brexit to discuss how the perceived shortcomings of Solvency 2 might be addressed.
ECON rejects PRIIPS RTS
ECON has unanimously rejected the Commission’s draft KID for PRIIPS. It said much of the proposed content contained flaws, and could lead investors to think an investment would more profitable than was likely...
General insurance: new disclosure rules from 1 April 2017
On 10 August FCA published Policy Statement PS16/21: ‘Increasing transparency and engagement at renewal in general insurance markets – feedback on CP15/41 and final rules and guidance’. The policy statement...
LSB reports on outsourcing
LSB has published a report on how 7 members and key third parties control outsourcing of business covered by the Lending Code. It concludes the sample showed good controls. We think the report has some useful checklists...