The United Nations (UN) Environment Programme Finance Initiative (UNEP FI) has published a consultation paper on a draft guidance document designed to support signatories of the Principles for Responsible Banking with...
Category - Uncategorized
FIN. TeamEBA Guidelines on legislative and non-legislative moratoria
The EBA has announced the reactivation of its Guidelines on legislative and non–legislative moratoria on loan repayments applied in the light of the COVID-19 pandemic. The aim of the Guidelines is to ensure that...
PRA confirms CRDV statement date
PRA has issued a statement explaining to firms when they can expect further information on the implementation of CRD V. PRA issued two separate consultations, the later of which closed on 17 November. It plans to...
Emma RadmoreHM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
Emma RadmoreFSB publishes 2020 Resolution Report
The Financial Stability Board (FSB) has published its 2020 Resolution Report which highlights the need for resolution preparedness. It also looks at lessons learnt from the Covid-19 pandemic, which stressed the...
Regulators update on FS Bill reforms
Treasury, PRA and FCA have updated the industry on the planned timelines for the introduction of the UK Investment Firms Prudential Regime and implementation of remaining Basel 3 reforms. The targeted implementation...
EBA reminds firms to finalise Brexit plans
EBA has reminded firms that, from the end of the transition period, UK firms can no longer provide services to EU customers on a passporting basis. It notes that: UK financial institutions offering services to EU...
Basel Committee reports on Basel III implementation
The Basel Committee on Banking Supervision has published a report for the G20 Leaders on the implementation of Basel III regulatory reforms and the measures taken by Committee members in response to Covid-19. The report...
Lending Standards Board and UK Finance publish LIBOR transition guidance
On 28 October 2020, the Lending Standards Board and UK Finance published best practice guidance for firms on the transition of SMEs to non-LIBOR linked products. The related press release notes that with less than 18...
BoE consults on OCIR policy
The BoE is consulting on various proposals relating to operational continuity in resolution (OCIR) policy. The BoE proposes the following amendments: Changes to the OCIR section of the Approach to Assessing...
PRA consults on amendments to Resolution Assessment rules
The PRA proposes to amend the dates in the Resolution Assessment Part of the PRA Rulebook (Rules) as follows: Resolution Assessment 3.1(1), to reflect that the date by which firms must submit a report of their...
PRA consults on BRRD II
The PRA has launched a consultation on its Contractual Recognition of Bail-in (CROB) and Stay in Resolution (Stays) Rules. The proposals will support the UK’s transposition of the Bank Recovery and Resolution...
Commission publishes EU work programme 2021
The European Commission has announced its focus for 2021. As well as continuing to work on managing the effects of the pandemic, its priorities will include: a “Fit for 55” packages to reduce emissions by...
HMT consults on financial services regulatory framework post-Brexit
HM Treasury has published a consultation paper in relation to Phase II of its Financial Services Future Regulatory Framework Review. HMT is seeking views on proposals for the financial services regulatory framework post...
FSB issues final report on CIRR toolkit
The Financial Stability Board (FSB) has published its final report on a toolkit of effective practices for financial institutions’ cyber incident response and recovery (CIRR). The toolkit aims to assist financial...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
FCA delays SEAR response date
FCA has updated its list of activities that have been delayed, or have changed deadlines. It has delayed the response date for its paper on the introduction of the SEAR to 15 December (from 1 October). It has still not...
Working Group updates on key LIBOR milestones for 2020/2021
The Working Group on Sterling Risk-Free Reference Rates has updated its LIBOR transition roadmap to include key priorities and revised milestones for 2020 and 2021. The roadmap is a guide to help both lenders and...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
BoE reports on supplier’s misuse of audio feed
The BoE has published a report of a review into the misuse of its press conference audio feed alongside its response to the report’s recommendations. In November last year, concerns were raised that an audio feed...
HMT updates on business support schemes
HM Treasury has published its latest statistics on the amount of businesses that are being supported through government backed support schemes: CBILS – £15.45bn between 66,585 facilities CLBILS – £3.84bn...
EBA phases out repayment moratoria guidelines
EBA has decided to go ahead with its plan to phase out its Guidelines on legislative and non-legislative payment moratoria from the end of September. It says the Guidelines have provided the necessary flexibility, and...
EBA wants clarity on aspects of “credit institution” definition
EBA has published an Opinion noting its views that several aspects of the current definition of “credit institution” could benefit from clarification – not least the notions of “deposit”...
Regulatory Initiatives Grid heralds return to “normality”
FCA has published the second edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. The grid, first published in May, is aimed to help firms see upcoming regulatory work...
FCA sets up LIBOR transition page
FCA has created a new page on its website, telling firms what they need to know about LIBOR transition. The page focuses on balance sheet exposure and how affected firms can move their LIBOR-linked contracts to...
UK Finance updates LIBOR guide for businesses
UK Finance has published a guide for business customers on the discontinuation of LIBOR. The guide explains: the anticipated discontinuation of LIBOR and why LIBOR is being discontinued; and what customers should be...
BoE updates on LIBOR transition
The Bank of England has updated its website on the transition from LIBOR, and what it is doing to catalyse using SONIA as the primary interest rate benchmark in sterling markets. The Working Group on Sterling Risk-Free...
UK Finance backs FCA mortgage plans
UK Finance is supportive of FCA’s plans for additional guidance to firms on mortgages and COVID-19. It says the industry has always said it is better fora customer who can afford payments to continue to make...
FCA publishes latest Conduct Questions update
FCA has published its latest report on its “5 Conduct Questions” initiative. It notes the changes that wholesale banking firms have been making to their conduct and culture as a result of it since 2015, and...
EBA seeks views on Regtech
EBA has published a RegTech industry survey to seek views on how RegTech solutions are being, and could be, used. It wants to understand current activity, raise awareness of it, and have information to inform future...
Treasury publishes annual AML/CFT supervision report
Treasury has published the annual report for AML and CFT for 2018-19. The report looks at the work done on supervisory activities and on promoting and ensuring compliance. There is a section devoted to the FATF key...
Basel consults on operational risk and resilience
The Basel Committee is consulting on proposals for principles for operational resilience and updates to its principles for the sound management of operational risk. The updates will reflect the growth of technology...
FCA recognises LSB update
FCA has confirmed it is maintaining its formal recognition for the LSB’s Standards of Lending Practice for business customers, and that the recognition now covers the recent updates to take account of CBILS and...
FCA adds more BI documents
FCA has now published the transcript of day 8 of its Business Interruption insurance test case and a number of supplementary notes.
PRA consults on CRD V
PRA is consulting on changes to its rules, supervisory statements and statements of policy needed to implement parts of CRD V. This consultation is the first part of PRA’s preparation for implementation, and it...
EBA agrees tentative 2021 stress test
EBA has agreed on a tentative timeline and sample of the 2021 EU-wide stress test, which it expects to launch a the end of January 2021 and the results be published at the end of July 2021. The test will be carried out...
EBA consults on internal governance guidelines
EBA is consulting on proposed revisions to its guidelines on internal governance. The changes specifically reflect the CRD V and IFD requirements as they affect credit institutions. The focus of the changes is: on the...
FCA Guidance on Vulnerable Customers
The FCA has set out new best practice guidance for firms to do more to protect vulnerable customers, and ensure they are receiving positive outcomes. The first phase of the FCA consultation in July 2019 found that some...
FCA Guide: Prepare Your Firm for Brexit
The Brexit transition period is currently operating until 31 December 2020. The FCA have produced a list of key considerations to help firms consider how they will be impacted by this and what action they may need to...
FCA to Ban Motor Finance Discretionary Commission Models
The FCA has announced that it will introduce a ban on discretionary commission models following a consultation in October 2019. As background, some car retailers and motor finance brokers receive commission which is...
HMT Payments Landscape Review – Call for Evidence
In light of recent developments in technology, HMT announced in June 2019 that it was leading a Payments Landscape Review. The first stage of this review, released today, is a Call for Evidence paper which sets out the...
EBA Consults on RTS for Indirect Subscription of MREL Instruments
Today, the EBA launched a public consultation on its draft RTS. The RTS is aimed at specifying the methods to avoid hampering the smooth implementation of the resolution strategy, where instruments indirectly subscribed...
PRA publishes Policy Statement on Asset Encumbrance
On 27 July, the Prudential Regulation Authority (“PRA“) published its Policy Statement (“PS“) providing feedback to responses received in relation to Consultation Paper (“CP“) 24/19...
FCA Launches New Register to Protect Consumers
Today, the FCA has launched its updated Financial Services Register. The FCA claim the redesign of the Register aims to help consumers protect themselves from harm and will provide a better experience for the...
EBA updates on SREPs and Covid-19
EBA has summarised the difficulties Covid-19 has presented to supervision generally, and the SREP process in particular. It has now published guidelines to supervisors building on the requirements of the CRD and the...
ECB urges better benchmark reform preparation
ECB is concerned that banks are not sufficiently prepared for benchmark rate reforms, despite being well aware of the complexities. It has now published a set of suggested good practices to help banks structure their...
PRA consults on simplified recovery planning
PRA is consulting on a plan to reduce its expectations on some firms in relation to recovery planning. The BRRD gives regulators the discretion to do this for firms whose failure would not be expected to have a...
BBLS unfair relationships exemption confirmed in law
The Business and Planning Act 2020 got Royal Assent on 20 July. Among wider provisions designed to address issued related to Covid-19, s12 of the Act provides that no order under s140B of the Consumer Credit Act...
Government extends 3rd country benchmark transition
Treasury has published a policy paper explaining why it is extending the transitional period for third country benchmarks to 31 December 2025. The extension will allow UK supervised entities to carry on using these...
PRA consults on approach to non-systemic banks
PRA is consulting on its approach to new and growing, non-systemic banks. It is making 2 new proposals, and taking the opportunity to clarify its position in other areas. The new proposals are: changes to the...
Treasury gives CRR guidance
Treasury has published guidance on how CRR2 applies during the transition period. It has already made regulations under the Withdrawal Act to “onshore” CRR as amended by CRR2 after the end of the transition...
Court rules “No DSS” unlawful under the Equality Act
York County Court has ruled that so called “no DSS” policies – which put in place a ban on renting property to people who are on housing benefit – are discriminatory and unlawful under the...
Treasury consults on CRDV, prudential regime and Brexit
Treasury is consulting on the UK’s approach to implementation of those parts of CRD V that fall to be implemented into national law by 28 December. The Government has long said that it will transpose all EU...
Enhancing Cross-border Payments – A Global Roadmap
Building on the FSB’s report published in April this year, the Committee on Payments and Market Infrastructures released its Stage 2 report. This report aims to identify the building blocks with which a roadmap...
BoE speech on LIBOR: Entering the Endgame
On 13 July Andrew Bailey, Governor of the Bank of England (“BoE“), made a speech on the continued importance of the transition away from LIBOR. The continued importance of the transition In Mr Bailey’s...
COJ Rulings on Unfair Contract Terms in Consumer Credit Agreements
The following are summaries of two recent Court of Justice of the European Union judgements. Both concern interpretation of the unfair contract terms provisions found in Council Directive 93/13/EEC as concern terms of...
Mortgage prisoners: FCA call for for mortgage intermediaries willing to help
Further to the FCA’s recent change to the rules around mortgage prisoners, they are now looking for mortgage intermediaries to sign up to become part of the new journey these customers can go through. The FCA see...
International bodies concerned about LIBOR transition
A report published today by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) has raised concerns about the apparent lack of commitment of financial markets to move away from...
EBA calls for action on resolution plans in Covid-19
EBA has reiterated the importance of resolution planning in times of uncertainty such as the Covid-19 pandemic. It calls on regulators to take into account the impact of Covid-19 on banks and their business models when...
Commission begins Brexit warning notices
The European Commission has stated the process of sending Stakeholder Preparedness Notices, to summarise for stakeholders the effect of Brexit on over 100 sectors. It had originally published these notices during...
Basel Committee updates on Regulatory Framework Adoption
BIS has recently published a report from its Basel Committee. It provides an update to the October 2019 report on the adoption of Basel Standards across each BCBS member jurisdiction as of May 2020. The Committee note...
PRA release statement on the approach to the application of the Matching Adjustment during Covid-19
The PRA has released a statement (7 July 2020) to insurers on the application of the matching adjustment (MA) during Covid-19. The PRA considers that the MA has functioned as intended thus far throughout the Covid-19...
Payday Lending Market Investigation Order 2015: CMA secures loan write-off from payday lender
The CMA have written to Shelby Finance Limited regarding breaches of Part 4 of the Payday Lending Market Investigation Order 2015 (the “Order”). Shelby Finance breached the Order by failing to send out...
FCA reformats Brexit advice
FCA has revamped its information page on Brexit. The page gives advice to firms on what they should be considering in preparation for the end of the transition period. Much of the information is not news, and includes a...
PRA makes fees rules
Following on from FCA’s confirmation of its fees and levies for 2020/21, PRA has now made its policy statement. It made no changes to its proposals, and has now published the necessary rule changes which take...
PRA makes statement on LIBOR and resolution rules
PRA has made a statement outlining its view on the implications of LIBOR transition for contracts in scope of the Contractual Recognition of Bail-In (CROB) and Stay in Resolution (Stays) parts of its Rulebook. PRA...
EBA clarified COVID-19 prudential measures
EBA has published a report clarifying how certain parts of prudential regulation apply in the light of COVID-19. It says several issues have been drawn to its attention in relation to the effects of payment moratoria...
PSR confirms widespread implementation of Confirmation of Payee
The PSR have confirmed that from today (1 July 2020), there is now widespread coverage of Confirmation of Payee (CoP). This is the fraud prevention tool which allows people to check the name of who they want to pay...
FSB comments on benchmark reform and Covid-19
The Financial Stability Board has been monitoring closely the impact of Covid-19 on global benchmark transition. It recognises the challenges, but still thinks that both financial and non-financial sector firms across...
Treasury agrees future UK/Switzerland relationship
Rishi Sunak has confirmed that he and his Swiss counterpart have signed an agreement to develop a deep agreement on financial services once the Treasury acquires its new “equivalence” powers after the end of...
PRA comments on CRR “quick fix”
PRA has made a statement on some aspects of the EU’s “quick fix” to the CRR. The statement notes: PRA’s support (back in 2017) of IFRS 9 transitional arrangements, which the quick fix now...
FCA and PSR publish update on access to cash
The FCA and PSR have today published more information on their joint work to map access to cash and how this will shape their future work in this area. This is a follow up to their joint statement which was published on...
FCA publish statement on Wirecard
On 29th June the FCA provided written consent to allow Wirecard to resume issuing e-money and providing payment services on 29th June. The restriction on activities lifted today (30 June). This means that Wirecard can...
Barnier speaks on Brexit
Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations. He noted the desire to give the EU/UK negotiations “every chance of succeeding”. He noted he had rescheduled many other meetings...
European Commission report on impact of Interchange Fee Regulation
On 29 June 2020, the European Commission published a report on the impact of interchange fees for card-based payment transactions which entered into force in June 2015 (the Interchange Fee Regulation (IFR)). The IFR...
EU adopts Covid-19 CRR changes
The EU has adopted temporary rules amending CRR 2 to maximise the ability of banks to lend money during the Covid-19 crisis. The changes: change the minimum capital banks need to hold for NPLs – in particular by...
PRA comments on EBA Covid-19 reporting guidelines
PRA has considered how to approach implementation of the EBA’s guidelines on gaps in reporting data in the context of Covid-19 in the light of its and FCA’s approach to payment deferrals and the data it is...
Basel consults on non-performing loans changes
The Basel Committee is consulting on changes to the capital rules to provide a prudent treatment in respect of securitisations of non-performing loans. It had started to develop these plans before Covid-19 and has now...
Chancellor updates on FS laws and Brexit
Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...
Treasury consults on BRRD2 implementation
Treasury is consulting on the UK implementation of BRRD2. The implementation date is 28 December 2020, so before the end of the Transitional Period. Treasury proposes to implement all those parts of the Directive that...
Treasury updates on Financial Services Bill prudential intentions
Treasury has provided some detail on the legislative approach it will take on prudential standards in the Financial Services Bill. The statement goes alongside the FCA discussion paper on the prudential regime for...
EBA updates RTS on CRD passport notifications
EBA has published its final revised RTS and ITS on passport notifications. The new versions are aimed at betting better quality consistent information, particularly on start dates of new activities and the granularity...
EBA extends payment moratoria deadline
EBA will extend the application date of its guidelines on payment moratoria to 30 September, as economies gradually re-open. It says the extension will ensure that adequate treatment for borrowers is available across...
Randell speaks on supporting the recovery
Charles Randell has spoken to a virtual roundtable of bank chairs on how the financial services industry can work to support recovery from the Covid-19 pandemic. He noted the great efforts that banks and other market...
Access to Cash: FCA and PSR publish their approach
Access to cash is a shared priority between HM Treasury, the Bank of England, the FCA and the PSR. On 16th June, the PSR and FCA published a joint statement on their approach to Access to Cash. Covid-19 The Statement...
Regulators update firms on revised LIBOR milestones
Since PRA and FCA wrote to the senior manager of banks and insurers responsible for LIBOR transition in January, several of the Working Group milestones discussed in that letter have been changed as a result of Covid-19...
EP votes through Covid-19 lending changes
The European Parliament has approved changes to the CRR to encourage banks to lend to customers affected by Covid-19. Among other things, the changes: extend the transitional arrangements for IFRS 9 by 2 years and...
ESRB gives guidance on distributions
The BoE and PRA have acknowledged the ESRB recommendations on the restriction of distributions during Covid-19. They note the recommendation will apply to the UK throughout the Transition period, and also note that...
FCA publishes Covid-19 guidance for SMEs
FCA has added to its suite of guidance on Covid-19 issues with a pages setting out help available to SMEs. The guidance explains what BBLS and CBILS do, and explains the guidance FCA has given to banks and insurers on...
Basel publishes new FAQs
The Basel Committee has published a set of new FAQs that it has agreed to add to the framework. The key issues covered are the definition of capital, market risk, counterparty credit risk, liquidity and operational risk.
FCA publishes quarterly CP
FCA is returning to some regular business and has published a short quarterly consultation, proposing changes to: clarify FSCS’s power to declare in default firms and successors subject to the proposed new...
New BBRS consults public and stakeholders ahead of launch
On 4 June, key questions on the framing of a new service set up to resolve banking disputes for SME customers were published for consultation. The Business Banking Resolution Service (“BBRS“) is seeking...
BoE speech – Covid-19, financial markets and the BoE’s operations
On 4 June, Andrew Hauser, Executive Director – Markets at BoE, made a speech on Covid-19, financial markets and the Bank of England’s balance sheet operations. In his speech, Mr Hauser outlines the unprecedented...
Covid-19 – PRA writes to CEOs on IFRS 9 and capital requirements
On 26 March the PRA, wrote to CEOs of UK banks and building societies providing guidance on the application of the definition of default in the CRR in light of Covid-19, and the expected credit loss accounting...
Covid-19: EBA issues guidelines on data gaps and reporting
The European Banking Authority (“EBA“) has published its Guidelines on reporting and disclosure of exposures subject to measures applied in response to the Covid-19 crisis. EBA says the Guidelines follow the...
Covid 19 – FCA confirms additional support measures for mortgage customers
Following its proposal published on 22nd May, the FCA has today (2nd June 2020) confirmed its new guidance for firms on how to deal with mortgage customers who are struggling financially as a result of Covid-19. The...
LIBOR transition – tough legacy issues
The Working Group on Sterling Risk-Free Rates has published a paper on the identification of “tough legacy” issues. Tough legacy contracts are those that do not have robust fallbacks and prove unable to be...
UK Finance members offer support for commercial landlords
UK Finance says its members are committed to supporting commercial landlords and their tenants who are concerned about their ability to make payments during Covid-19. It urges those concerned to contact their lenders...
PRA publishes FAQs on property valuations
PRA has published a set of Q&A on CRR requirements for property valuations during the disruption caused by Covid-19. Firms have been asking questions on how they shoudl deal with the difficulties in conducting...
EBA publishes loan origination guidelines
EBA has published a set of guidelines on loan origination standards. Its aim is to bring together prudential standards, consumer protection obligations, AML and ESG considerations within one set of guidance. The...