The Network for Greening the Financial System has published a guide for central banks and supervisors, looking at how financial institutions have worked with green, non-green and brown financial assets, and how...
Category - Uncategorized
Emma RadmoreCovid 19 – FCA publishes proposed updated guidance for mortgages
On 22nd May, the FCA outlined its proposed additional guidance (following the original guidance on 20 March) for mortgage lenders, mortgage administrators, home purchase providers and home purchase administrators, in...
FIN. TeamRegulator Covid-19 update 22 May
After a relatively quiet week, on 22 May: FCA announced further support for customers struggling to pay mortgages due to Covid-19. It is consulting on what options firms will need to provide to customers reaching the...
Corporate Insolvency and Governance Bill 2020
We have summarised the key proposals of the Corporate Insolvency and Governance Bill, published on 20 May.
Emma RadmoreFCA responds on economic impact of Covid-19
The Treasury Committee has published a copy of a letter from FCA answering its questions on the economic impact of Covid-19. The letter explains: the steps FCA has taken to ensure the credit ratings of customers taking...
CRR amending Regulation progresses
The European Parliament is to consider the proposed Regulation amending the CRR in its plenary session on 17-18 June. Meanwhile, the ECB has published its opinion on the proposals, which are aimed at addressing some of...
Government publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
Banks look at new ways to deal with SME complaints
The Business Banking Resolution Service has carried out a pilot study to look at how disagreements between banks and SME customers could be better addressed. The BBRS has been set up by 7 banks and other stakeholders...
Statement on impact of Covid-19 on LIBOR transition – update
Further to their statement on 25 March 2020, the Working Group on Sterling Risk-Free Rates has updated its statement on the impact of Covid-19 on the timeline for firms’ LIBOR transition plans. The update states that...
LSB publishes business plan and budget
LSB’s Business Plan and Budget for 2020/21 has been published. It was drafted before the Covid-19 outbreak, and LSB wants to continue with it so far as possible, while accepting it may need to adapt some of the...
Land Registry to accept Mercury PDF documents during Covid-19 pandemic
In response to the Covid-19 pandemic, the Land Registry has confirmed that it will accept PDF copies of certain deeds, including transfers and legal charges, until further notice. Previously only wet ink deeds had been...
Regulator Covid-19 update 7 May
On 7 May: PRA announced details of its plans to support firms and enable them and the PRA to focus on the highest priority work: The Climate Biennial Exploratory Scenario is postponed until at least mid-2021; full...
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
FCA updates on CBILS and BBLS expectations
On 4 May: FCA updated its statement about the CBILS and BBLS confirming that its position that lenders who comply with CBILS do not also have to comply with the creditworthiness rules in CONC 5.2A.4-34 where the...
SCA E-Commerce deadline extended
The FCA have today extended the deadline for firms to implement their e-commerce Secure Customer Authentication (SCA) by 6 months from 14 March 2021 to 14 September 2021. This is to minimise potential disruption to...
Further statement on the impact of Coronavirus on the timeline for LIBOR transition
Following a joint statement on 25 March, the Working Group on Sterling Risk-Free Rates has issued a further statement on the impact of Coronavirus on the timeline for firms’ LIBOR transition plans. The statement...
Regulator Covid-19 update 28 April
On 28 April: FCA updated its guidance on changes to regulatory reporting; and The European Commission has announced a wide-ranging banking package to help banks to lend to support the economy. The package includes:...
UK and Switzerland work to strengthen ties
Economiesuisse and The CityUK have been working on a joint position paper setting out how to strengthen the countries’ relationship in the time of coronavirus and in the future. In terms of financial services, the...
Regulator Covid-19 Update 27 April
On 27 April: FCA has clarified the relationship between its rules and the UK’s CBILS and Bounce Back Loan schemes. It notes that, pending the roll-out of the BBL scheme, which, from 4 May, will give small...
Commission approves Green Finance position
The European Commission has sent a Communication to the Parliament on the sustainable finance initiative. It explains the background to the “taxonomy” for the common classification system, and the areas on...
How does CLBILS work?
We have written an article on how the Coronavirus Large Business Interruption Loan Scheme works.
Treasury Committee progresses Covid-19 inquiry
Following its call for evidence on 18 March, the Treasury Committee now has terms of reference for its inquiry into the economic impact of Covid-19 and will be looking at the operational effectiveness, cost and...
Regulator Covid-19 update 23 April
On 23 April: PRA followed up on its letter to insurers, noting that all insurers should consider carefully the previous letter and guidance on use of unrated assets and assessments of creditworthiness, and the...
Financial Services Bill measures
I wrote an article for Compliance Monitor on the current consultations and plans for financial services regulation under the Financial Services Bill initiative.
CMA writes to Metro Bank on breaches of the Retail Banking Order
The CMA has written to Metro Bank’s CEO after the bank broke an Order requiring it to send customers text alerts before charging them for going into an unarranged overdraft, giving them time to act and...
Update on PSR Call for Input (CP20/2) on Payments Architecture
The PSR published an update today confirming that it will now be closing its call for input into competition and innovation in the UK’s new payments architecture on Monday 1 May 2020 at 5pm. Responses should be emailed...
PRA publishes buffer usage FAQs
PRA has published a set of FAQs on using liquidity and capital buffers in response to the issues caused by Covid-19. The FAQs address what the buffers are, how banks can use them and the implications of them doing so...
Regulator Covid-19 update 17 April
In addition to FCA’s consultation on further measures to help consumers who have motor finance or high cost credit products, covering motor finance, rent-to-own, BNPL and pawnbroking and HCSTC, it has also updated...
G20 finance ministers and central bank governors agree action plan
On 15 April, G20 finance ministers and central bank governors held a virtual meeting to discuss the details of a coordinated fiscal, monetary and regulatory response to the Covid-19 pandemic. G20 Finance Ministers...
Dear CEO Letter: SME Lending
The FCA published a Dear CEO Letter today setting out its expectations of Banks who lend to SMEs. Whilst SME lending sits mostly outside the FCA’s scope, the FCA has called out that any activity undertaken by a...
PRA publishes Business Plan
PRA has published its Business Plan for 2020/21. Like FCA, PRA comments that Covid-19 has made it reassess its plans and reprioritise its work, and it will continue to assess the effects of the outbreak on its actions...
PRA consults on fees
PRA has published its consultation on fees and levies for 2020/21. The consultation covers: the fee rates to meet the Annual Funding Requirement, which has increased by 8% from the current year, primarily because of...
Regulator Covid-19 update 9 April
On 9 April, in addition to FCA’s confirmation of its new measures to help retail banking customers: ESMA told national regulators to adopt a risk-based approach where fund managers are unable to prepare periodic...
Overdrafts and Coronavirus: New Rules
As noted earlier, the FCA has published the new rules that firms require to implement by 14 April 2020. In relation to the overdrafts, the FCA has implemented two measures (1) interest free overdrafts and (2) overdraft...
Regulator Covid-19 Update 6 April
On 6 April, the regulators further update their Covid-19 measures: FCA updated its expectations on solo-regulated firms in respect of the SMCR; FCA published a summary of queries it has received on client assets...
Regulator Covid-19 update 3 April
On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...
Regulators clarify SMCR obligations during Covid-19
PRA and FCA set out their expectations on dual-regulated firms under the SMCR. The regulators say they recognise firms will have to keep their governance arrangements under review, and intend to be flexible. It notes...
Regulator Covid-19 Update 2 April
On 2 April, the main regulatory initiative was FCA’s emergency consultation on consumer protection measures in the regulated lending markets. Also: PRA and Treasury confirmed the delay of Basel 3.1 by one year...
Parliament Committee seeks equivalence answers
The Third Report of Session of the House of Commons European Scrutiny Committee seeks clarification on the Government’s intentions for negotiations of equivalence arrangements with the EU from the end of the...
FLA gets firms access to CBIL Scheme
FLA has successfully negotiated with the Government to get access for independent and non-bank lenders to the Coronavirus Business Interruption Loan Scheme. It says this was critical to allow firms to continue to run...
Regulator Covid-19 update 1 April
Further updates from the regulators, in addition to FCA’s Dear CEO letter to retail investment firms, include: PRA welcoming the agreement by the boards of large UK banks to suspend dividends and buybacks on...
In-action is a breach of duty and amounts to concealment for Limitation defences
In Canada Square Operations Ltd v Mrs Beverley Potter [2020] EWHC 672 (QB) , the High Court heard an appeal by the creditor against the decision of Mr Recorder Rosen QC. In the decision it was found that the creditor...
PSR publishes Annual Plan and Budget for 2020/2021
The Payment Systems Regulator (PSR) has published its annual plan and budget, which sets out its key aims and activities for the year 2020/21 alongside its expected costs. The PSR acknowledges that, due to the impacts...
Regulator Covid-19 update 31 March
Payment Services and SCA Today, the FCA has published an updated version of its webpage on strong customer authentication (SCA) under the Payment Services Regulations 2017 (PSRs 2017). Protecting customers –...
Chris McLauchlan joins Edinburgh banking team
Chris McLauchlan has been appointed as a Legal Director to lead WBD’s banking team in Scotland. Joining from Eversheds Sutherland, Chris is a senior banking lawyer with over 15 years of experience advising on...
Regulators publish 2020/2021 MELL
PRA has published a feedback statement and final rules on the FSCS Management Expenses Levy Limit (MELL) for 2020/2021. In CP 1/20, the PRA and FCA consulted on a proposed MELL of £83.2 million for 2020/21, which...
LSB gives business lending practice examples
LBS has published an updated guide for firms, setting out examples of the approach they may wish to consider on product sales, to be compliant with the Standards of Lending Practice for business customers. The guidance...
FCA delays Directory publication
FCA had been due to publish the initial directory of certified and assessed persons on its Register at the end of March, but is now delaying it for at least a month. Dual-regulated firms had had to submit their data for...
Regulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Government confirms extension of TTP
In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...
Regulator Covid-19 Update 25 March
On 25 March: Treasury, BoE and FCA have written to the CEOs of UK banks on Covid-19 and bank lending. The letter explains how the Covid Corporate Financing Facility will help firms of investment grade or equivalent...
Regulators look at Covid-19 effects on LIBOR transition planning
FCA, the BoE and the Sterling Risk-Free Reference Rates group have reminded firms to keep in mind that they should still not rely on LIBOR being published after the end of 2021. However, the regulators understand that...
Covid-19 regulator update 24 March
Late on 23 and on 24 March: PRA announced amendments to regulatory reporting for insurers in response to EIOPA’s recommendations. There will be between 2-8 weeks’ delay for most aspects of harmonised...
Annual increase to FOS award limit confirmed
The FOS award limit is the maximum amount FOS can require a firm to pay when it upholds complaints. This limit is adjusted each year in line with inflation. From 1 April 2020, the new award limit will be: £355,000 for...
Covid Corporate Financing Facility exempt from FSMA
Treasury has made legislation to exempt the Government’s Covid Corporate Financing Facility from the need for authorisation under FSMA (except in relation to insurance business – which it is not proposed the...
PSR release Confirmation of Payee update in light of Covid-19
On 20 March, the PSR released an update on Confirmation of Payee (CoP) in light of Covid-19. The PSR have considered their regulatory approach and all things considered have advised the directed banks that if they are...
CMA varies Santander directions
CMA has varied the Directions to Santander in respect of its Open Banking Release. It had previously varied the directions in January 2019 and considers Santander’s continued failure to comply with the...
PSR update on card-acquiring market review
On 16 March, the Payment System Regulator (PSR) released an update on their publication of the interim report on card-acquiring services. It was originally thought that the report would be published in late 2019 but it...
BoE looks at open platform for SME finance
BoE has published its views on developing an open platform for SME finance. It says that a global identity standard and safe information sharing could harness novel data sources and advanced analytics to provide SMEs...
Treasury Committee responds on IT failure and economic crime reports
The Treasury Committee has commented on the responses from Government and regulators on: its October report on failures in the IT industry. The report had concluded, among other things, that: regulators need to improve...
Invalidly executed deeds of guarantee still enforceable
In Signature Living Hotel Ltd v Sulyok [2020] EWHC 257 (Ch), the High Court was asked to consider whether two deeds of guarantee were enforceable in circumstances where the signature of the director of the surety had...
Bank of England implements new measures to respond to the economic shock from Covid-19
The Bank of England (“BoE”) has announced a comprehensive and timely package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with Covid...
Bank of England slashes interest rate in response to Covid-19
The Bank of England (“BoE”) has reduced the Bank Rate by 50 basis points to 0.25%. The aim of the reduction is to help support business and consumer confidence amidst the Covid-19 outbreak, to bolster the...
EBA says no need for LGD on credit insurance claims
EBA has published an Opinion on treatment of credit insurance in the prudential framework. It has previously consulted on credit risk mitigation for institutions that apply the IRB approach with own estimates of Loss...
Working Group updates on progress towards key 2020 LIBOR milestones
The Working Group on Sterling Risk-Free Reference Rates has today published a series of updates on progress made towards the key 2020 milestones for LIBOR transition. The first update is a statement on how bond markets...
The Treasury Committees approves Bailey, but says it will keep an eye on the FCA
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England. Whilst it is satisfied that Mr Bailey has the professional competence and personal...
EBA sets out 2020 priorities for digital finance
On 3 March 2020, the EBA published a speech by José Manuel Campa, EBA Chair, from the 4th Annual Conference on Fintech and Digital Innovation: Delivering the Future. Various areas of digital finance including the...
New FCA webpage on PSPs
The FCA have today published a new page on their website on payment service providers (PSPs). The page is aimed at consumers and explains the different kinds of PSPs, and the protections afforded to consumers when...
ECB Speech: Climate Change in FS
Christine Lagarde made a speech on climate change and the financial sector on 27 February 2020. Christine identified both the threat and significant opportunity caused by climate change. She urged central banks to...
Climate Change and Financial Services: COP26 Private Finance Agenda launched
On 27th February, Mark Carney launched the ‘COP26 Private Finance Agenda’ at the Guildhall in London. The overarching goal of the Agenda is that every professional financial decision will need to take climate change...
More UK/EU policies revealed
The Government has published a policy paper on its approach to the future relationship with the EU. It sets out the Government’s suite of proposals, based around the desire for a comprehensive Free Trade...
Bank of England speech: turbo-charging LIBOR transition
Andrew Hauser of the Bank of England has announced two new initiatives to encourage Sterling LIBOR transition in a speech on 26 February 2020. Firstly, the Bank is going to publish a daily SONIA Compounded Index from...
Barnier to be EU negotiator on post-Brexit issues
The Council of the EU has adopted a decision authorising negotiations between the EU and UK towards a new partnership and authorising the European Commission, in the person of Michel Barnier, as the EU negotiator. The...
FSB priorities published
The FSB published a letter addressed to all G20 Finance Ministers and Central Bank Governors on 18 February 2020. The letter sets out the areas that the FSB are focusing their efforts on. All of the measures are to...
Financial services after Brexit updates
The EU Financial Affairs Sub-committee has opened an inquiry into financial services after Brexit and has been taking evidence. Most recently it has been questioning the BoE and FCA. They largely discussed the key...
Unfair Treatment lands Moneybarn big fine
The FCA announced today that it was imposing a £2.77 million fine on Moneybarn Limited for not treating customers fairly between 1 April 2014 and 4 October 2017. The car finance provider had failed to provide adequate...
ESMA Chair delivers speech on sustainable finance issues
On 12 February, Steven Maijoor delivered a keynote speech on sustainable financial markets at the European Financial Forum in Dublin. In his speech, Mr Maijoor discussed the role of regulatory authorities in tackling...
FCA writes to credit brokers
The FCA wrote to credit brokers on 13 February 2020 identifying the key drivers of harm within the credit broking portfolio. These include:- failure to understand regulatory requirements; poor oversight of staff and...
EP publishes negotiating mandate with UK
The European Parliament has published its proposed mandate for a new partnership with the UK. The declaration acknowledges that the “close relationship” that will subsist and which, according to the...
FCA recognises Standards of Lending Practice for business customers
The FCA has published a feedback statement (FS20/1) on the recognition of the Lending Standards Board’s (LSB) Standards of Lending Practice for business customers and updated its webpage on recognised industry codes...
ESMA outlines sustainable finance strategy
On 6 February, ESMA published its sustainable finance strategy which sets out how ESMA plans to focus on sustainability. ESMA’s key priorities include: completing the regulatory framework on transparency...
EBA begins 2020 EU-wide stress test
The stress test is designed to provide banks, supervisors and other market participants with a common analytical framework to consistently assess and compare the resilience of EU banks to economic shocks. As in previous...
FCA updates further on post-Brexit issues
FCA has further updated its website with information on Brexit and Temporary Directions. It explains how: It will not need to use the Temporary Transitional Power it had previously made directions under, as the...
FCA and IBA write to ISDA on LIBOR
In December 2019, the International Swaps and Derivatives Association (ISDA) wrote to the FSB and recommended that the FCA and the ICE Benchmark Administration (IBA) provide further clarity about the length of any...
PRA publishes Pillar 2 policy statement
PRA has published its feedback to its consultation on updating the Pillar 2 capital framework in respect of capital buffers, and updated Statements of Policy and Supervisory Statements to include the changes. The...
EBA updates its guidelines on fraud reporting under PSD2
The European Banking Authority (EBA) has published amendments to its 2018 guidelines on fraud reporting under the revised Payment Services Directive (PSD2). The amendments: introduce two new data fields for reporting...
Financial institutions raise concerns about PRIIPs RTS review
Insurance Europe, AMICE, the EBF and EFAMA (the Group) have raised concerns about The Joint Committee of the European Supervisory Authorities (the ESA’s) consultation on potential changes to the regulatory technical...
EBA discusses future changes to the EU-wide stress test
The EBA has published a Discussion Paper On the future changes to the EU-wide stress test. Since the global financial crisis, the stress test has become a widely used tool for supervisors to assess the resilience of...
FSB reports on non-bank financial intermediation
The FSB has published the results of its global monitoring exercise in which it assesses risks and trends from non-bank financial intermediation (NBFI). The annual exercise, which includes data from 29 jurisdictions...
FCA and BoE outline initial expectations for firms transitioning from LIBOR to SONIA
The Bank of England’s Financial Policy Committee (FPC) has published a letter to Senior Management Function holders in regulated firms on the future of LIBOR. In the letter it considers further potential...
FCA and BoE encourage switch from LIBOR to SONIA from Spring 2020
The FCA has published a Statement encouraging market makers to change the market convention for sterling interest rate swaps from LIBOR to SONIA on 2 March 2020. The change is intended to move the greater part of new...
UK regulators announce data reforms
The FCA has released its new Data Strategy which outlines plans to develop its data capabilities through a renewed focus on the use of advanced analytics and automation techniques. The FCA hopes this strategy, an...
Queen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
Regulators update on climate change action
UK and EU regulators have published papers on the regulatory response to the risks of climate change. the BoE has published a discussion paper on how it proposes to carry out its “biennial exploratory...
Europe reaches agreement on ‘green taxonomy’ regulation
Negotiations between the European Parliament and Council have reached agreement on environmental objectives for determining the sustainability of an economic activity. The Commission proposal for a ‘taxonomy...
FPC publishes latest Financial Stability Report
In its latest Financial Stability Report, the FPC has published its latest stress testing results and current view on the stability and state of the UK financial system. In addition to its comments on open-ended funds...
Basel Framework published
BIS has published a consolidated version of the standards prepared by the Basel Committee on Banking Supervision. The resulting Basel Framework pulls together the 14 standards and also includes current, historic and...
EMIR updating Regulation published in OJ
Regulation (EU) 2019/2099 amending EMIR (commonly known as EMIR 2.2) has been published in the OJ. The objective of amendments introduced by this regulation includes the establishment of a CCP supervisory committee to...
BIS considering prudential treatment for crypto-assets
BIS is inviting responses to a discussion paper on the design of a prudential treatment for crypto-assets, in recognition of the growth in these types of products and related services, and consequential and resulting...
Sustainable lending and the election
We have written an article about sustainable lending and the implications of the election manifesto pledges on the green lending market