FCA has announced it is to undertake a review of the retail banking market, in order to enhance its understanding of the state of competition and conduct in that market. It has identified the need better to understand...
Category - Retail Banking
Emma RadmoreUp next from FCA
FCA’s latest Policy Development Newsletter promises only a policy statement on enhancing COB rules for firms providing CFDs to retail clients following before the end of June. Many other papers are due later in...
ECB warns that relocating banks need to act fast
Ms Lautenschläger (Vice-Chair of the Supervisory Board of the ECB) made the remarks whilst a technical workshop hosted by the ECB for banks considering relocating as a result of Brexit. Lautenschläger stressed that...
PRA makes branch whistleblowing rules
PRA has made policy statements and rules requiring UK branches of non-EEA banks and insurers to tell their staff about the PRA and FCA’s whistleblowing services. Any non-EEA bank that has both a branch and a...
FCA publishes first new-form complaints data
FCA has published the first set of complaints data (covering the second half of 2016) that firms have reported since last year’s rule changes that give firms 3 days to address a complaint to a consumer’s...
FCA publishes Mission Statement and Business Plan
FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA...
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...
FIN. TeamFCA 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...
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...
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...
HMT issues regulatory innovation plan
The government’s vision is for UK financial services to be the most competitive and innovative in the world, supplementing existing services with greater choice and value for consumers. The innovation plan covers how...
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...
pra publishes march regulatory digest
The March Regulatory Digest has been published by the PRA. Top news covered this month: insurance supervision at the PRA – speech by Sam Woods and report by the Independent Evaluation Office (IEO) consultation on its...
FCA makes new rules
FCA made several changes to its rulebook at its Board Meeting on 30 March. Key changes include: changes to fees relating to the FOS and periodic fees for exchanges and benchmark administrators; changes to the FSCS...
Super trade body gets a name
The new trade body, which will be formed from the merger of the BBA, CML, Payments UK, the UK Cards Association, the Asset Based Finance Association and Financial Fraud Action UK, is to be called UK Finance. Bog Wigley...
“Same business, same risks, same rules” – ECB comments on regulation of Fintech
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...
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...
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...
Cheque & Credit Clearing Company announce details of image-based cheque clearing system to go live for some banks on 30 October 2017
The C&CCC – the organisation that manages the cheque clearing system – has announced the details of the launch of an industry-wide image-based cheque clearing system that will speed up cheque processing...
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...
BoE Fintech Accelerator launches new community
BoE’s Fintech Accelerator has launched a new community for fintech-related organisations. It wants to help these organisations shares developments and insights, and for them to ensure BoE is engaging with firms...
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...
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 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...
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 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...
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...
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...
NEW TRADE BODY FOR FINANCE SECTOR
A new body is to launch later in 2017, designed to be the authoritative voice for the finance sector in the UK. The name and brand of the body is to be announced in summer 2017. Bob Wigley will oversee the appointment...
Emma RadmoreMiFID 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.
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...
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...
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 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...
BoE looks at FinTech support
Mark Carney has spoken as the chair of the Financial Stability Board, looking at the potential FinTech has to make the financial system inclusive, effective, efficient and resilient. He said that the true promise of...
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 confirms increase in FSCS cover
PRA has issued a policy statement confirming it will increase the deposit protection limit provided by the FSCS to £85,000 from 30 January 2017. This is an increase from £75,000 to reflect currency fluctuations that...
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...
AFME responds on whistleblowing
AFME (The Association for Financial Markets in Europe) has published its response to the FCA and PRA consultation papers on whistleblowing in UK branches of overseas banks. The FCA and PRA propose that UK branches of...
Retail banking market investigation: CMA publishes responses to draft order
The CMA has published responses to the publication of its draft order following the retail market investigation. The responding institutions include: Dansk Bank HSBC Information Commissioner’s Office Santander...
Global banking capital rules postponed
The Basel Committee working on Basel III rules that will determine how much capital lenders would have to set aside against loans and other assets, announced on 3 January 2017 that more work was required on certain...
FCA extends BCOBS guidance date
FCA has updated its industry guidance confirmation webpage The amendment relates to the BBA updated version of its industry guidance on compliance with FCA’s Banking Conduct of Business Sourcebook (BCOBS). The webpage...
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;...
CMA concerned about cashpoint merger
CMA has made a provisional finding that the acquisition by Diebold of Wincor may reduce competition in the supply of cashpoints in the UK. It invites comments on its provisional findings by 10 January 2017.
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 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...
Summary boxes take effect as FCA publishes sunlight remedy data set
FCA has published its third “sunlight remedy” data set, which shows how firms treat interest on the accounts of long-standing customers. FCA’s research indicates the median lowest interest rate is...
FCA makes it crystal clear that 2016/2017 Remuneration must be directly linked to Effective Risk Management
The FCA will crack down hard on firms which incentivise behaviours that are not in the best interests of consumers, market integrity or fair competition and will look closely at Material Risk Takers, bonus pools and...
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.
PRA consults further on MiFID 2
PRA has published its second consultation paper on changes it needs to make to its rules as a result of MiFID 2. This paper focuses on the changes needed to take account of the requirements in the MiFID 2 Delegated...
European Commission publishes proposals to complete reform of financial regulatory system
The Commission has put forward a package of proposals including amendments to the Capital Requirements Regulation (CRR) and Directive (CRD), the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution...
CMA publishes draft Order following retail banking market investigation
In August 2016 the CMA published the report on its market investigation into the supply of retail banking services. Following the proposals of that Report, the CMA has published a draft Retail Banking Market...
PRA consults on deposit protection increase
PRA is consulting on increasing the deposit protection limit back to £85,000. The limit was decreased from £85,000 to £75,000 in July 2015 because of the Deposit Guarantee Schemes Directive’s requirements on non...
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...
BBA publishes Brexit information sheets
BBA has published a series of “quick briefs” on Brexit. It says the papers should help explain the major issues Brexit presents for banks and customers. The briefs cover: Staying in or leaving the single...
BBA announces update to Access to Banking Protocol
The BBA has said that it will update the Access to Banking Protocol in response to an independent review into the effectiveness of the Protocol one year after implementation. The Protocol was put in place in May 2015 to...
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...
BCOBS rule changes to take effect
2 amendments to BCOBS will take effect on 1 December. Under the changes: Non-ring fenced bodies will have to provide information to individuals on the key risks to which a non-ring fenced body may be exposed which...
FCA and Treasury respond to CMA retail banking market report
In August 2016, the CMA published its final report following its investigation into the competitiveness of retail banking market (Report), which focused on personal current account and SME customers. The Report found...
BBA publishes BCA standardisation proposal
CMA has updated its webpage on the retail banking and business current account (BCA) investigation. One of the new papers covers BBA’s proposals to standardise BCA opening procedures. The proposal covers the core...
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...
Treasury confirms new advice body
Treasury has confirmed it is to set up a new public body offering debt advice, money and pensions guidance to replace the MAS and bring together the existing pensions advisory bodies. The body has not yet been designed...
FCA gets tough on AML failings
FCA has fined Sonali Bank £3,250,600 and restricted it from accepting deposits from new customers for 168 days, and also fined the bank’s former MLRO £17,900 and banned him from performing the MLRO or compliance...
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...
ESMA consults on product governance guidance
ESMA is consulting on draft guidelines for supervisors to help them assess whether product manufacturers and distributors have properly complied with MiFID 2’s requirements on product governance. The guidelines...
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...
PAD takes effect
Treasury has confirmed how the UK has met its obligations to implement the Payment Accounts Directive into UK law. It has done this mainly through the Payment Accounts Regulations 2016, which took effect on 18 September...
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...