Since our last publication, the PRA has published a policy statement on cyber insurance underwriting risk, the FCA has published a new webpage setting out the findings from its review of how firms handle complaints about packaged bank accounts and the European Commission has adopted guidelines on the application of the Regulation 1286/2014/EU on key information documents.
FCA consults on staff incentives and performance management in consumer credit firms
The FCA has published a consultation paper setting out its proposals for how consumer credit firms should manage risks related to how they pay and manage the performance of their staff. The consultation affects firms that are engaged in credit-related regulated activity and are not subject to any of the existing remuneration codes in the Senior Management Arrangements, Systems and Controls sourcebook. The consultation ends: 4 October 2017.
FCA, 4 July 2017
PRA statement on consumer credit
The PRA has published a statement on consumer credit following its review of consumer credit lending, which examined PRA-regulated firms' asset quality and underwriting practices for credit cards, unsecured personal loans and motor finance.
PRA, 4 July 2017
Launch of UK Finance
UK Finance, the new trade association for the finance and banking industry operating in the UK, has launched with a new website. UK Finance will take on most of the activities previously carried out by six trade associations: the Asset Based Finance Association (ABFA), the British Bankers' Association (BBA), the Council of Mortgage Lenders (CML), Financial Fraud Action UK (FFA UK), Payments UK, and The UK Cards Association (UKCA).
According to a press release published to mark its launch, UK Finance will represent over 300 firms in the UK providing credit, banking, markets and payment-related services. UK Finance members offer a wide range of financial and advisory services across both mutual and corporates, representing regional, national, domestic and international businesses. In an article setting out UK Finance's "Day One priorities", Stephen Jones, UK Finance's Chief Executive Officer (CEO), describes UK Finance as a "forward-looking, agile and collaborative trade association, combining expertise from all corners of the industry".
UK Finance, 3 July 2017
Findings from FCA review of firms' handling of complaints about packaged bank accounts
The FCA has published a new webpage setting out the findings from its review of how firms handle complaints about packaged bank accounts. The FCA published the findings of its thematic review of packaged bank accounts in October 2016. In that review it found weaknesses in how firms handled complaints about packaged bank accounts as at the end of 2014.
FCA, 7 July 2017
BoE and PRA annual report and accounts 2017
The Bank of England and PRA have published their annual report and accounts for 2017.
BoE, 6 July 2017
FCA annual reports for 2016/17
The FCA published its annual report and accounts for 2016/17. The report outlines some of the key pieces of work undertaken by the FCA in 2016/17. The FCA has also published its:
- Enforcement annual performance account annual report for 2016/17
- Anti-money laundering annual report for 2016/17
- Competition annual report 2016/17
- Diversity annual report 2016/17.
FCA, 5 July 2017
PSR annual report for 2016/17
The Payment Systems Regulator (PSR) has published its annual report and accounts for 2016/17, containing a chapter on its competition activities. The PSR has also published a factsheet summarising the content of its annual report.
PSR 5 July 2017
Government's response to consultation on single public financial guidance body
HM Treasury and the Department for Work and Pensions (DWP) have published the response to their consultation on creating a single financial guidance body. The paper sets out the government's response to its December 2016 consultation and outlines further details on its plan to create a new single financial guidance body. The new body will replace the Money Advice Service (MAS) the Pensions Advisory Service and the DWP's "pension wise" guidance.
HM Treasury and the Department for Work and Pensions, 5 July 2017
FCA statement on ESMA Q&As on transitional provisions under Benchmarks Regulation
The FCA has published a statement on the ESMA questions and answers (Q&As) relating to the transitional provisions under the Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (Regulation (EU) 2016/1011) (Benchmarks Regulation or BMR)).
FCA 7 July 2017
PRA policy statement on cyber insurance underwriting risk
The PRA has published a policy statement on cyber insurance underwriting risk (PS15/17). In PS15/17, the PRA provides feedback to its November 2016 consultation paper (CP39/16). In CP39/16, the PRA consulted on a new supervisory statement setting out its expectations for the prudent management of cyber underwriting risk (that is, the set of prudential risks emanating from underwriting insurance contracts that are exposed to cyber-related losses resulting from malicious acts and non-malicious acts involving both tangible and intangible assets). The Appendix to PS15/17 contains the final version of the supervisory statement: cyber insurance underwriting risk (SS4/17). It is relevant to all UK non-life insurance and reinsurance firms and groups within the scope of Solvency II including the Society of Lloyd's and managing agents. It should be read in conjunction with, among other things, the Conditions Governing Business, the Insurance Senior Management Functions and Technical Provisions Parts of the PRA Rulebook.
PRA, 5 July 2017
PRA policy statement on dealing with market turning events in the general insurance sector
The PRA has published a policy statement on dealing with a market turning event (MTE) in the general insurance sector. PS16/17 is relevant to all PRA-regulated general insurance firms that are in scope of the Solvency II Directive (2009/138/EC), and to the Society of Lloyd's and managing agents (Solvency II firms). It contains feedback to the PRA's September 2016 consultation on dealing with an MTE in the general insurance sector. An Appendix to PS16/17 sets out an amended supervisory statement (SS5/17), which has been changed in a number of ways following the consultation.
PRA, 5 July 2017
European Commission launches online consultation on targeted revisions to EU consumer law directives
The European Commission has launched an online consultation on possible targeted amendments to key EU consumer law directives. This follows completion of the fitness check on EU consumer law, and the evaluation of the Consumer Rights Directive (2011/83/EU), the results of which were published at the end of May 2017.
FCA, 5 July 2017
EU Parliament publishes report on consequences of Brexit for consumer protection
The Committee on Internal Market and Consumer Protection of the EU Parliament has published a report on the consequences of Brexit for consumer protection. The paper examines the impact of Brexit on consumer protection under the following different scenarios:
- Future EEA membership for the UK.
- A relationship between the UK and EU27 governed only by WTO rules.
- A relationship governed by a "tailor-made agreement".
It comes to the conclusion that, from the perspective of consumers in the EU28, EEA membership for the UK is the most favourable scenario. However, irrespective of which course is adopted, adequate transitory provisions taking into consideration the "two-step" negotiating schedule will be necessary to resolve legal uncertainties.
EU Parliament, 6 July 2017
Final EBA guidelines on professional indemnity insurance under PSD2
The European Banking Authority (EBA) has published a final report setting out guidelines on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance or other comparable guarantees under the revised PSD2.
EBA, 7 July 2017
Advocate General opinion on interpretation of Interchange Fee Regulation
Advocate General Campos Sánchez-Bordona has handed down an opinion on a preliminary reference concerning the interpretation of certain provisions in the Regulation on interchange fees for card-based payment transactions (Regulation (EU) 2015/751) (Interchange Fee Regulation or IFR) (American Express Co. v The Lords Commissioners of HM Treasury (Case C-304/16)).
Advocate General, 6 July 2017
ECB decision on reporting of credit institutions' funding plans by NCAs to ECB under SSM
European Central Bank (ECB) has published a decision on the reporting of funding plans of credit institutions, by national competent authorities (NCAs), to the ECB. The decision relates to the single supervisory mechanism (SSM) that is the Regulation establishing the SSM and the SSM Framework Regulation. It refers to the need to specify the manner in which NCAs provide the ECB with funding plans. In particular, the format, frequency and timing of the submission of information.
ECB, 30 June 2017
Partner, Financial Regulation and Co-head of Financial Services Sector