Since our last publication, the FCA has published Handbook Notice 43, which sets out the changes made to the FCA Handbook. In other news, the FCA has published complaints data in relation to the second half of 2016 which reflect the new complaint handling rules that came into force in June 2016.
FCA Handbook Notice 43
The FCA has published Handbook Notice 43, which sets out the changes made to the FCA Handbook under the following instruments, which were made by the FCA Board on the 27 April 2017:
- Senior Management Arrangements, Systems and Controls (Remuneration Codes) (No 7) Instrument 2017 (FCA 2017/21).
- Accountability and Whistleblowing (No 2) Instrument 2017 (FCA 2017/22).
- Individual Conduct Rules (Non-Executive Directors) Instrument 2017 (FCA 2017/23).
- Training and Competence Sourcebook (Appropriate Qualification Examination Standards) Instrument 2017 (FCA 2017/24).
- Conduct of Business Sourcebook (Adviser Charging for Vertically Integrated Firms) Instrument 2017 (FCA 2017/25).
- Insurance Act 2015 (Consequential Amendments) Instrument 2017 (FCA 2017/26).
- Individual Accountability (Enforcement) (Duty of Responsibility) Instrument 2017 (FCA 2017/27).
- Packaged Retail and Insurance-based Investment Products Regulation Instrument 2017 (FCA 2017/28).
The FCA consulted on these changes in a July 2016 consultation.
PRA policy statement on reporting requirements for ensuring operational continuity in resolution
The Prudential Regulation Authority has issued a policy statement (PS10/17) on reporting requirements for ensuring operational continuity in resolution. PS10/17 is relevant to UK banks, building societies and PRA-authorised investment firms to which the Operational Continuity Part of the PRA rulebook applies that receive critical services from one or more members of their group or from a business unit within the firm itself.
FOS feedback statement on changes to voluntary jurisdiction rules in DISP
The Financial Ombudsman Service (FOS) has published a feedback statement on its consultation on amendments to the voluntary jurisdiction rules in the FCA's Dispute Resolution: Complaints sourcebook (DISP). The proposed changes to DISP were to correct some historic drafting discrepancies, amend the glossary of definitions in relation to consumer buy-to-let firms (CBTL), and to remove a reference to the consumer credit jurisdiction in the definition of "respondent" for the purposes of the FOS' compulsory jurisdiction rules. The new rules are set out in Handbook Administration (No 45) Instrument 2017. The instrument was made by the FOS Board on 8 February 2017 and by the FCA Board on 23 February 2017. It came into force on 24 February 2017.
FOS, 28 April 2017
FCA investigations under SM&CR
The FCA has published its response (dated 27 February 2017) (FOI4965) to a request under the Freedom of Information Act 2000 relating to it carrying our investigations under the senior managers and certification regime (SM&CR). The FCA stated that, since the SM&CR came into force on 7 March 2016, it has started investigations into two individuals who are senior managers, and eleven individuals who are, or likely to be, certified persons (that is, former approved persons who transitioned into the certification regime).
BoE publishes UK Money Market Code
The Bank of England has published the UK Money Markets Code.
Bank of England, 26 April 2017
PS8/17 ‘Whistleblowing in non-EEA UK branches’
The Prudential Regulation has published policy statement PS8/17 which provides feedback to responses for consultation paper CP35/16 'Whistleblowing in UK branches' and sets out the final rules.
FCA complaints data – July to December 2016
The FCA has published complaints data in relation to the second half of 2016 which reflect the new complaint handling rules that came into force in June 2016.
HM Treasury and BoE MoU on resolution planning and financial crisis management
HM Treasury has published a memorandum of understanding (MoU) with the Bank of England (BoE) on resolution planning and financial crisis management.
EBA letter to European Commission on its legislative proposals for revisions to CRR and CRD IV Directive
EIOPA has published a letter to the European Commission's Vice-President, Valdis Dombrovskis from Andrea Enria, EBA Chairman, relating to the Commission's legislative proposals for a Regulation amending the Capital Requirements Regulation (Regulation 575/2013) and for a Directive amending the CRD IV Directive (2013/36/EU). Mr Enria refers to two opinions that the EBA has delivered on some specific aspects of the proposals relating to IFRS9 transitional arrangements and on improving decision making for supervisory reporting and explains that the letter complements those opinions by conveying the views of the supervisory community on several other aspects of the proposals, which are mainly a follow-up on previous advice delivered by the EBA. Mr Enria believes that the EBA's advice has been well reflected in the new proposals, but he addresses in his letter further specific issues relating to the net stable funding ration (NSFR), leverage ratio (LR) and remuneration.
ECB results of the April 2017 euro area bank lending survey
The ECB has published its results from the April 2017 bank lending survey finding credit standards for loans to enterprises eased slightly in net terms in the first quarter of 2017.
Partner, Financial Regulation and Co-head of Financial Services Sector