Since our last publication, the FCA has published the Second FCA consultation paper on implementing IDD, HM Treasury has published its consultation response on implementing PSD2 and PSRs 2017 and The European Payments Council has published version 1.1 of the Single Euro Payments Area (SEPA) instant credit transfer scheme interbank implementation guidelines.
HM Treasury consultation response on implementing PSD2 and PSRs 2017
HM Treasury has published its response to the consultation on implementing the revised Payment Services Directive (PSD2). The Payment Services Regulations 2017 (SI 2017/752) have also been published on legislation.gov.uk.
HM Treasury, 19 July 2017
FCA Handbook Notice 46
On 21 July 2017, the FCA published Handbook Notice 46, which sets out the changes made to the FCA Handbook. There are a number of changes. For InCredit readers, those which are most likely to be relevant are: (1) Fourth Money Laundering Directive (Enforcement and Consequential Amendments) Instrument 2017 (FCA 2017/49). This instrument makes changes to provide guidance on the use of the FCA's enforcement powers and set out a decision-making mechanism for the use of these new powers and (2) Dispute Resolution: Complaints (Payment Protection Insurance Complaints) (Voluntary Jurisdiction) Instrument 2017 (FOS 2017/3). The FCA Board has approved changes to chapter 2 of the Dispute Resolution: Complaints sourcebook (DISP). The FOS considers that aligning the voluntary jurisdiction with the compulsory jurisdiction will help to avoid business and consumer confusion regarding payment protection insurance (PPI) time limits.
FCA raises concerns that payment and e-money institutions may have used currency converter tools and the interbank rate in a potentially misleading way
The FCA has published a statement on the use of the interbank rate in online currency converter tools.
FCA, 19 July 2017
Second FCA consultation paper on implementing IDD
The FCA has published its second consultation paper on implementing the Insurance Distribution Directive ((EU) 2016/97) (IDD) (CP17/23). The FCA notes that, given the 23 February 2018 deadline for implementing the IDD and the timing of the adoption of the delegated acts, it is likely that its third consultation will be issued while CP17/23 remains open for comments.
LSB to oversee UK Finance access to banking standard
UK Finance published a press release announcing that the independent Lending Standards Board (LSB) has been selected to oversee the new Access to Banking Standard. The updated standard, which applies to bank branch closures, was published by the British Bankers' Association (BBA) in May 2017. On 9 July 2017, the BBA merged with a number of other trade bodies to form UK Finance. The LSB will oversee the operation of the standard, and ensure that the 12 banks and building societies that have signed up to it fulfil their requirements, and that the intended outcomes for customers are reached. The LSB will independently monitor and report on the standard's application by those banks and building societies, and will identify and share best practice.
UK Finance, 20 July 2017
Financial Services Consumer Panel position paper on consumers and competition
The Financial Services Consumer Panel (FSCP) published a position paper and press release on consumers and competition: how to deliver more effective consumer power in retail financial markets. The FSCP has examined how far competition authorities can reasonably expect consumers to drive competition, and what alternatives are available.
FCSP, July 2017
ESAs Board of Appeal dismisses appeal by FinancialCraft Analytics for registration as CRA
The Board of Appeal of the European Supervisory Authorities (ESAs) have handed down its decision which dismissed an appeal by FinancialCraft Analytics Sp. z o.o., against the refusal by ESMA to register it as a credit rating agency (CRA). In December 2016, ESMA rejected an application by Global Rating for registration as a CRA under the CRA Regulation (Regulation 1060/2009). ESMA refused the application on the grounds that Global Rating did not satisfy the criteria specified in the CRA Regulation for registration, in particular those relating to internal controls, conflicts of interest, independence and methodologies. Global Rating also failed to satisfy the criteria set in the CRA Regulation to take advantage of exemptions available for small CRAs.
ESA, 20 July 2017
European Commission consults on Delegated Regulation supplementing IDD on distribution of insurance-based investment products
The European Commission has published for consultation the draft of a Delegated Regulation supplementing the Insurance Distribution Directive (IDD) with regard to information requirements and conduct of business rules applicable to the distribution of insurance-based investment products. The deadline for comments on the draft act is 17 August 2017. Comments should be provided via the feedback link on the DR's dedicated webpage.
EC, 20 July 2017
SEPA instant credit transfer scheme interbank implementation guidelines v.1.1
The European Payments Council has published version 1.1 of the Single Euro Payments Area (SEPA) instant credit transfer scheme interbank implementation guidelines. SEPA XML schema definitions relating to the guidelines are also available.
European Payments Council, 19 July 2017
ESRB reports on financial stability implications of IFRS 9
The European Systemic Risk Board (ESRB) has published a report on the financial stability implications of IFRS 9 which analyses two main aspects of IFRS 9 from a macro-prudential angle. The report focuses on the position of banks: the new approach to the classification and measurement of financial assets and the new expected credit loss (ECL) approach for measuring impairment allowances. IFRS 9 (Financial Instruments) was adopted in the EU in November 2016 for mandatory application from 1 January 2018 onwards.
ESRB, 17 July 2017
Partner, Financial Regulation and Co-head of Financial Services Sector