Included in this weeks edition of InCredit: The Prudential Regulation Authority (PRA) has issued a Policy Statement (PS30/18) following feedback to its consultation on Regulatory Reporting CP16/18. The changes to the PRA Rulebook will take effect on Tuesday 1 January 2019 and more...

UK

Regulatory Reporting: Responses to CP16/18

The Prudential Regulation Authority (PRA) has issued a Policy Statement (PS30/18) following feedback to its consultation on Regulatory Reporting CP16/18. The changes to the PRA Rulebook will take effect on Tuesday 1 January 2019.

PRA, 5 December 2018

Financial Conduct Authority (FCA) publishes findings on long-term mortgage arrears

The FCA has published findings on how mortgage lenders treat customers who have long-term mortgage arrears and provide forbearance to affected customers. Overall, the FCA did not identify widespread harm to customers from extended forbearance. However, it did see some inconsistencies in firms’ arrears management practices. Firms offering or administering mortgages should read these findings and where necessary make improvements. The FCA reminded firms to be compliant with the relevant MCOB rules and also its prudentially focused Finalised Guidance in respect to arrears. The FCA has provided feedback to the firms in its sample. In some cases, it is considering whether further regulatory action is necessary.

FCA, 6 December 2018

UK Finance responds to FATF report on UK AML/CTF regime

UK finance has responded to the Financial Action Task Force (FATF)’s mutual evaluation report on the UK’s anti-money laundering (AML) and counter-terrorist financing (CTF) regime, published on 7 December 2018.  Stephen Jones, Chief Executive of UK Finance, commented: ‘The UK should always strive to be the safest and most transparent place for financial services firms to do business'. This evaluation report clearly recognises the UK’s role as a global leader in the fight against money laundering, which is underpinned by innovative public private partnerships such as the Joint Money Laundering Intelligence Taskforce.

UK Finance, 10 December 2018

Sainsbury's Supermarkets Ltd and others v MasterCard Inc and others, case number UKSC 2018/0156; Sainsbury's Supermarkets Ltd v Visa Europe Services LLC and others, case number UKSC 2018/0154;, and Sainsbury's Supermarkets Ltd v Visa Europe Services LLC and others, case number UKSC 2018/0155, in the Supreme Court of England and Wales

Visa and MasterCard have been granted permission by the Supreme Court to challenge a landmark Court of Appeal decision that found the credit card companies set charges at an unlawfully high level that restricted competition. A spokeswoman for the country's highest appeals court told Law360 that Visa Inc and MasterCard Inc can revive their legal battle with a group of British retailers over card charges, known as interchange fees, which they impose when customers pay using plastic. A date for the case has not yet been confirmed.

Worldwide

Basel Committee issues report on cyber-resilience range of practices

The Basel Committee on Banking Supervision has published a report entitled 'Cyber-resilience: range of practices', which identifies, describes and compares the range of observed bank, regulatory and supervisory cyber-resilience practices across jurisdictions. The report is based on an analysis of authorities' responses to previous international surveys, exchanges between international experts and industry participants' input, to provide insight into the effective practices and expectations currently in place.

BIS, 4 December 2018

LMA outlines consequences of a no-deal Brexit scenario for EU lenders

In a paper entitled, ‘Turning off the Liquidity Tap-the consequences of a no-deal Brexit on the European loan market’, the Loan Market Association (LMA) warns of the number of regulatory issues—in a lending context—that could stem from a no-deal Brexit and the negative EU economic repercussions of the UK leaving the EU without a deal.

LMA, 4 December 2018