Since our last publication, the FCA has updated its list of products within and outside the definition of PRIIPs for the purposes of the PRIIPs Regulation. In other news, the FCA has published a webpage on cyber resilience, and a report setting out the findings from its review into the market for pensions and investment advice.
FCA updates PRIIPs disclosure: Key Information Documents
The FCA has updated its list of products within and outside the definition of PRIIPs (Packaged Retail and Insurance-based Investment Product) for the purposes of the PRIIPs Regulation (Regulation 1286/2014). Firms must comply with the PRIIPS Regulation from 1 January 2018.
New FCA webpage on cyber resilience
The FCA has published a new webpage on cyber resilience. The FCA notes that cyber risks pose a threat to all financial services firms. Firms should be aware of the threat, able to defend themselves effectively, and respond proportionately to cyber events. The FCA's goal is to help firms become more resilient to cyber attacks, while ensuring that consumers are protected and market integrity is upheld.
Findings from FCA review into market for pensions and investment advice
The FCA has published a report setting out the findings from its review into the market for pensions and investment advice. The review was launched in April 2016. The FCA found the overall results positive, with the sector providing suitable advice for 93.1% of cases and acceptable disclosure in 52.9% of cases. The FCA identified concerns relating to matters including risk profiling, replacement business, and initial disclosure. The FCA intends to provide more information on its review over the course of 2017 and into 2019, and repeat its review in 2019 based on advice delivered in 2018.
FCA guidance consultation on Part 7 insurance business transfers
The FCA has published a guidance consultation (GC17/5) on its approach to the review of insurance business transfers under Part 7 (which the FCA refers to as Part VII) of the Financial Services and Markets Act 2000 (FSMA). The consultation closes on 15 August 2017. The FCA intends to issue finalised guidance in autumn 2017.
Bank of England FAQs on FinTech Accelerator
The Bank of England has published a set of frequently asked questions on its FinTech Accelerator, which works in partnership with firms who are using new technology to make use of FinTech innovations for central banking.
Interim phase of pensions dashboard project announced by ABI
The Association of British Insurers (ABI) has announced in a recent press release that they plan to establish and lead the interim phase of the pensions dashboard project. The Government aims to make the dashboard available to the public by 2019.
ATM merger referred for full investigation
Cardtronics’ purchase of rival ATM provider DCP is being referred for an in-depth investigation, after the CMA found competition concerns. On 3 May the Competition and Markets Authority (CMA) said it would refer the merger for a phase 2 investigation unless Cardtronics offered acceptable proposals to address these concerns by 10 May. As Cardtronics has not offered these undertakings, the CMA will now refer the merger. A decision on the merger will be made by a group of independent panel members supported by a case team of CMA staff. The deadline for the final report is 27 October 2017.
European Parliament adopts resolution on FinTech
The European Parliament has published a provisional version of the text of their recent resolution on Fintech and the influence of technology on the future of the financial sector. The resolution will be sent to the Council of the EU and the European Commission.
Council of EU adopts MMF Regulation
The Council of the EU has published a press release announcing that it has adopted the Regulation on money market funds.
ECB targets balance sheet risk reduction and further banking union
A member of the supervisory board of the ECB, Ignazio Angeloni, has delivered a speech on the repair of banks’ balance sheets and non-performing loans, the assessment and oversight of business models, and building an ‘effective and level regulatory playing field’. Mr Angelino has said the challenges faced by the sector required ‘a high degree of understanding and co-operation between supervisors, regulators and the banks’.
ECB guide to SSM fit and proper assessments
The European Central Bank (ECB) has published a guide to fit and proper assessments for members of the management bodies of significant credit institutions under the single supervisory mechanism (SSM). The guide:
- Explains how ECB Banking Supervision ensures consistency in the application of the SSM's fit and proper assessment criteria, with a view to establishing common supervisory practices for assessing the qualifications, skills and proper standing of a candidate for a position on a credit institution's board (such as the chief executive officer (CEO) or a non-executive board member).
- Enhances the transparency of the assessment criteria and the related ECB supervisory practices and processes.