This week has seen the Lending Standards Board publish its Standards of Lending Practice which replaces its current lending code.


FCA update on cash market study

The FCA has published an update on its cash savings market study which involved a series of randomised controlled trials to assess a number of additional potential remedies to improve competition in the cash savings market, including auto-renewal on fixed-term products.

FCA, 18 July 2016

Occasional consultation paper on amendments to the PRA Rulebook

The PRA has issued a consultation paper (CP26/16) proposing amendments to the PRA Rulebook and supervisory statements. The deadline for responses to the main part of the consultation is 21 October 2016. The amendments relate to:

  • Central bank reserves and the designation of a major stock index under the LCR
  • The application of the ILAA rules with regard to domestic liquidity sub-groups
  • Clarifications, corrections and consequential changes to PRA reporting rules and guidance notes
  • Lloyd's rules relating to actuarial opinions, reports and notifications
  • Capital buffers and countercyclical leverage ratio buffer

The PRA is also consulting on an administration instrument to make minor corrections to the PRA Rulebook. The deadline to respond to this is 05 August 2016.

PRA, 22 July 2016

BoE and PRA consultation paper on the establishment of the EDMC

The Bank of England (BoE) and PRA have published a joint consultation paper on the establishment of the Enforcement Decision Making Committee (EDMC). The paper proposes that the EDMC should be the decision maker in contested enforcement cases relating to the PRA and BoE where a case does not proceed to successful settlement. An adapted version of the FCA's Regulatory Decisions Committee, the members of the committee will be independent from the BoE's executive management structure. The deadline for responses is 21 October 2016.

Bank of England, 22 July 2016

New FCA webpage on regulation of rent to own sector

The FCA has issued information on regulation of the rent to own (RTO) sector. The FCA assumed responsibility for the sector in April 2014. The new webpage explains that the FCA permission applications from RTO firms are put under intense scrutiny as they serve customers who are likely to be financially vulnerable.

FCA, 18 July 2016

Draft ring-fencing SI published

HM Treasury has published the draft Financial Services and Markets Act 2000 (Ring-fenced Bodies, Core Activities, Excluded Activities and Prohibitions) (Amendment) Order 2016, and a draft explanatory memorandum. This makes a number of technical amendments to the UK bank ring-fencing regime and the order will come into force on 01 December 2016.

HM Treasury, 21 July 2016

FOS: technical notes on mortgage shortfall and arrears

The Financial Ombudsman Service (FOS) has published technical resources on its approach to complaints relating to the following:

The new materials include a number of case studies which illustrate the FOS' approach in different scenarios.

FOS, 19 July 2016


LSB publishes new Standards of Lending Practice

The Lending Standards Board (LSB) published new Standards of Lending Practice on 21 July 2016. The Standards are a voluntary set of standards outlining expectations regarding the way registered firms deal with their customers throughout the life cycle of a product. Six main areas relating to personal customers are covered:

  • Financial promotions and communications
  • Product Sale
  • Account maintenance and servicing
  • Money management
  • Financial difficulty
  • Consumer vulnerability

The Standards replace the LSB's Lending Code and will come into effect on 01 October 2016. A new webpage relating to the Standards of Lending Practice has also been created.

Lending Standards Board, 21 July 2016

Letter from group of challenger banks re Brexit opportunities

The Treasury Committee has published a letter outlining opportunities to improve competition in the banking sector as identified by a group of challenger banks. The letter sets out their views on the major barriers to effective competition at the moment and potential solutions.

Treasury Committee, 20 July 2016


EBA consults on interim report on MREL

The EBA has launched a consultation on its interim report on the implementation and minimum requirement for own funds and eligible liabilities (MREL). MREL ensures that sufficient capital and debt instruments are available to absorb the losses of a failing institution. Comments are required by 30 August 2016.

EBA, 19 July 2016

EBA publishes final draft RTS on assessment methodology for competent authorities

The EBA has published final draft Regulatory Technical Standards (RTS) on assessment methodology for competent authorities regarding compliance of an institution with the requirements to use Internal Ratings Based (IRB) approach in accordance with Articles 144 (2), 173 (3) and 180 (3) (b) of the Capital Requirements Regulation. The final draft provides a mapping of the minimum requirements under the IRB approach. The RTS will come into force 20 days after their publication in the official journal of the European Union.

EBA, 21 July 2016

Key Contacts

Rosanna Bryant

Rosanna Bryant

Partner, Financial Regulation

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