FCA has published its final rules to require personal and business current account providers to publish information that will help comparison of services from different providers. The rules, which will create a new...
Category - Retail Banking
FIN. TeamFCA sets out future approach to authorisation and competition
FCA has outlined its approach to authorisation and to competition. It notes it is one of the few financial regulators in the world with an objective that includes promoting competition. It wants to understand, in...
Emma RadmoreFCA makes new rules
At FCA’s Board meeting on & December, it made several new rule instruments, covering (among other things), several changes to take effect from 3 January 2018: minor changes relating to MiFID 2 implementation...
Final text of ‘Basel IV’ published
The Basel Committee has endorsed the final set of reforms to Basel III (referred to by some as Basel IV). These reforms will mainly affect the affect the methodologies used by banks in calculating risk weighted assets. ...
Emma RadmoreEBA’s speech on fintech and cloud in banking
The European Banking Authority (EBA) has published Slavka Eley’s, Head of Supervisory Convergence Unit at the EBA, speech given at the EBF Cloud banking Conference. Slavka Eley’s speech covered three aspects...
IFRS 9 transitional Regulation published
There has been concern about the anticipated regulatory capital impact when International Financial Reporting Standard 9 is implemented from January 2018, resulting from some firms seeing a significant increase in...
Up next from FCA
FCA’s latest Policy Development Update promises the following publications before the end of 2017: Policy Statement on formalisation of the debt concession for smaller credit unions Policy Statement on market...
Treasury Committee seeks LINK assurance
Nicky Morgan, chair of the Treasury Committee, has written to the Chairman of LINK seeking assurances on the continuity of provision of cash machines. There is a proposal to reduce the fee card issuers pay to ATM...
Financial Stability Report, November 2017
The Bank of England (BoE) has published its financial stability report, issue number 42. The report sets out the Financial Policy Committee’s (FPC), a sub-committee of the BoE’s Court of Directors, views of...
Credit Unions Act 1979 (Locality Common Bond Conditions) Order 2017
The Credit Unions Act 1979 (Locality Common Bond Conditions) Order 2017 (SI 2017/1144) has been published, along with an explanatory memorandum. The Order makes a change to section 1B(3)(a) of the Credit Unions Act...
FCA publishes a statement on LIBOR panels
The FCA has confirmed that all 20 of the panel banks for LIBOR (the London Interbank Rate) have agreed to support the LIBOR benchmark, ensuring the sustainability of the rate until 2021. The confirmation follows Andrew...
FCA updates on wholesale banks compliance review
FCA has published a note summarising the results of its review of the compliance function in wholesale banks. It had asked 22 wholesale banks (including global banks, medium-sized banks focusing on specific areas or...
Autumn Budget 2017: Key points for the financial services sector
Philip Hammond, Chancellor of the Exchequer, has delivered the Autumn Budget 2017. Key points for the financial services sector include: Asset management – the Government will publish a new long-term strategy to...
Bank of England publishes a summary of the responses to its white paper on SONIA
The Bank of England (BoE) has published a summary of the responses it has received to its white paper (published in June 2017) on sterling risk-free reference rates (RFRs). The white paper set out the working...
Financial Exclusion: UK government publishes response to Lords Select Committee final report
Following the appointment in 2016 by the House of Lords of a Select Committee to investigate financial exclusion and access to mainstream financial services, the Committee published its final report, ‘Tackling...
Treasury Committee inquiry into household finances
On 8 November, the Treasury Committee announced the launch of a new inquiry that will examine problematic indebtedness, inter-generational issues, lifetime financial planning and the effectiveness of the market in...
PSR update on authorised push payment scams and reimbursement model consultation
The Payment Systems Regulator (PSR) has provided an update on progress in relation to authorised push payment (APP) scams, where fraudsters trick customers into instructing their banks to make a payment to what the...
Cheque imaging: consultation on supporting legislation
HM Treasury has published a consultation on secondary legislation to support the Image Clearing System (ICS) for cheques. The legislative proposals follow the amendments to the Bills of Exchange Act 1882 introduced by...
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...
BSB consults on good outcomes
The Banking Standards Board is consulting on what good banking outcomes look like to customers. It is particularly interested in responses from consumer and civil society organisations. The consultation sets out how...
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...
FCA consults on FSCS funding
Following its December 2016 consultation for views on how FSCS funding could be reformed, FCA has published a further consultation paper seeking to ensure FSCS continues to provide the right protections, works...
FCA updates on retail banking model review
FCA has published a paper on the purpose and scope of its review of the business models used in the retail banking sector. It is now considering what evidence it can best gather to understand: the state of competition...
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...
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...
FCA’s first Financial Lives Survey: 50% of UK adults potentially vulnerable
After collecting responses from over 13,000 UK consumers, FCA has revealed the results of its largest tracking survey of consumer behaviour and use of retail financial products and services. Aiming to tell the financial...
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.
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...
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...
Up next from FCA
FCA’s latest Policy Developments Update lists several key publications due before the end of the year: policy proposals for next year’s fees and levies policy statement on FSCS funding policy statement on...
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...
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...
PRA publishes Occasional Consultation
PRA’s latest Occasional Consultation paper proposes minor changes to several modules of its Rulebook. Proposed changes include changes to whistleblowing requirements for UK branches of non-EEA deposit takers...
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...
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...
BoE updates on resolution approach
BoE has published an update to its “approach to resolution“, originally published in 2014.
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...
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...
FOS updates complaints data
FOS has published individual complaints data for H1 2017, relating to businesses in relation to which FOS both received and settled at least 30 cases during the period. FOS says these firms comprise around 95% of the...
FCA consults on miscellaneous changes
FCA’s latest Quarterly Consultation Paper covers: amendments to FEES in respect of fees when firms apply for a VOP for provision of payment initiation and account services. FCA needs to charge fees as it has...
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...
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...
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...
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...
FCA consults on CASS change for unbreakable deposits
FCA is consulting on a change to CASS to help firms that are having difficulty placing deposits with banks because of a combination of a current CASS rule that prevents firms placing client money in bank accounts with...
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 to consider whether there is a place for unarranged overdrafts in the modern banking market
In a Feedback Statement published today, the FCA stated that: they have significant concerns about how unarranged overdrafts operate. Charges are high, complex and potentially harmful. Based on the evidence they have to...
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 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...
FCA releases details of consultations on the extension of SM&CR to all firms
The long-awaited consultations on the extension of the SM&CR have been released: CP17/25 – Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms. Banks are...
FCA publishes new rules – CASS 7A & the special administration Regime Review Policy Statement (PS17/18)
In the FCA’s consultation paper CP17/2: CASS 7A & the Special Administration Regime Review (SAR), it proposed changes to CASS in relation to an investment firm failure and its interaction with the SAR...
FCA makes new rules
At FCA’s July Board meeting it made several new rulebook instruments. Key changes are: to make minor changes to approved persons application forms with effect from 12 September; to set the fees payable to the PSR...
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...
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...
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...
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...
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.
Up next from FCA
FCA’s latest policy development update includes: second consultation on the IDD due in July, with a policy statement on the first consultation due in September; consultation on current account services in July and...
FMLC looks at Brexit third country issues
The Financial Markets Law Committee has published its views on the legal uncertainties related to the future classification of the UK as a third country in respect of the EU. The purpose of the paper is not to make...
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...
PRA publishes new consultation on pillar 2a capital requirements and disclosure
On Wednesday 12 July the PRA published CP12/17 ‘Pillar 2A capital requirements and disclosure, that sets out proposed adjustments to the PRA’s Pillar 2A capital framework. It is relevant to all banks...
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...
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...
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...
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 updates on compensation standards implementation
FSB has published a progress report on implementation of its compensation standards. The standards were published in 2009 in the immediate aftermath of the financial crisis. Now, almost all member jurisdictions have...
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...
FCA publishes annual report
FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s...
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...
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...
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...
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 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...
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...
PRA consults on new recovery planning standards
PRA is consulting on a replacement supervisory statement on recovery planning, setting out additional expectations to those in the current statement 18/13. It says the basis of the statement is still correct, but it...
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.
BOE speaks on effects of ring-fencing for customers
In a speech by James Proudman (Executive Director, UK Deposit Takers Supervision, Prudential Regulation Authority, Bank of England), it was discussed that the key component of the ring-fence is to provide...
EBA publishes 2016 annual report – some key areas of focus for 2017
The EBA published its 2016 Annual Report, which provides a detailed account of all the work the Authority achieved in the past year and anticipates the key areas of focus in the coming years. Some of the EBA’s key...
FCA updates on sandbox
FCA has updated information on its regulatory sandbox. It says the sandbox’s popularity is increasing and larger numbers of firms both applied for and were accepted for testing in cohort 2. FCA has named the 24...
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...
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. ...
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...
ESMA sets out principles for regulating migrating UK firms
ESMA has published a set of principles that the regulators in the “EU27” should follow when assessing applications from UK institutions seeking an EU authorisation post-Brexit. Key principles include: that...
EBA consults on outsourcing to the cloud
EBA is consulting on regulatory expectations when firms outsource to the cloud. It wants to identify a set of key principles that all credit institutions and investment firms should follow, and which all regulators...
BoE updates Fintech accelerator
BoE has updated its Fintech accelerator page, to reflect that its latest call for applications is now closed. The page also outlines the current proofs of concept that currently form part of the accelerator programme.
ESMA speaks on Regtech
ESMA has spoken on how the financial services industry has adopted Regtech. Patrick Armstrong looked at the changes in how we work that have been subject to almost constant change in the past 10 years. Yet, he said...
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...