Since our last publication, the FCA has published a speech on regulatory priorities for retail banking, and CAP has published guidance in relation to "free trial" advertisements. Also, the ICO has replaced its Overview of the GDPR with a Guide to the GDPR, and the Law Commission has published its final report on the proposed Goods Mortgages Bill.

UK

FCA publishes speech on regulatory priorities for retail banking

The FCA has published a speech by Karina McTeague, Director of Retail Banking Supervision, on the FCA's regulatory priorities for retail banking. The speech includes comments on implementation of the revised Payment Services Directive ((EU) 2015/2366) (PSD2). Although PSD2 comes into effect in January 2018, the FCA recognises it seems unlikely that the regulatory technical standards (RTS) that prescribe the safety and security requirements for PSD2 will be in place before mid-2019. The FCA expects all firms to have in place policies and procedures in the meantime which monitor, identify and prevent fraud to keep their customers' data safe and secure. Fraud reports submitted by firms will be monitored by the FCA to determine the effectiveness of their fraud detection and prevention capabilities, and to form an overview of the sector.

FCA, 23 November 2017

CAP publishes guidance for "free trial" advertisements

The Committee of Advertising Practice (CAP) has published guidance for advertisers using "free trial" or other promotional subscriptions. The guidance concludes that there are two key ways of making sure free trial advertisements do not mislead potential customers, namely through making all significant conditions clear and ensuring they are displayed in a sufficiently prominent place.

CAP, 27 November 2017

ICO replaces Overview of GDPR with Guide to GDPR

The Information Commissioner's Office has replaced its Overview of the General Data Protection Regulation (GDPR) with a Guide containing similar content, but with greater detail on consent and contracts and liabilities. This is in the wake of earlier guidance published for consultation. The Guide explains that it is not yet a finished product but provides a framework onto which future guidance will be built.

ICO, 23 November 2017

Law Commission publishes final Goods Mortgages Bill and report

The Law Commission has published a report on its proposed Goods Mortgages Bill, along with a revised draft of the Bill. The Bill draft contains minor changes, and the report provides commentary on the reasons for the repeal of the Bills of Sale Acts. The Bill is relevant to lenders as it will replace bills of sale, which are the current means by which individuals can use goods they own as security for loans.

Law Commission, 24 November 2017

EU

European Commission adopts Delegated Regulation on RTS on strong customer authentication and common and secure communication under PSD2

The European Commission has adopted a Delegated Regulation and Annex supplementing the revised Payment Services Directive (PSD2) with regard to regulatory technical standards (RTS) for strong customer authentication (SCA) and common and secure open standards of communication (CSC). The RTS contained in the Delegated Regulation outline SCA requirements and exemptions, requirements for security measures protecting personalised security credentials, and requirements for CSC between parties including account servicing payment service providers, payment initiation service providers, and account information service providers.

European Commission, 27 November 2017

Open letter to the European Commission on EU financial supervisory reform

Various notable public interest organisations have combined to publish an open letter to the European Commission on EU financial supervisory reform in the wake of the public consultation on the operation of the European Supervisory Authorities. The letter is critical of the EU's current approach to supervision and the reforms proposed for the future. It recommends an overhaul of the current system in favour of a "twin peak" approach, with conduct of business supervision separated from prudential supervision. This is the system that already operates in the UK. As well as criticising the EU's current approach, the letter also sets out a basic strategy for the future in terms of supervisory architecture, governance and funding, and mandate.

BEUC, 27 November 2017

Launch of SEPA instant credit transfer scheme

The European Payments Council has published a press release announcing that its Single Euro Payments Area (SEPA) instant credit transfer scheme is operational. This scheme covers transactions denominated in euros, up to €15,000. The scheme currently covers nearly 600 payment service providers from eight different European countries and allows the transfer of money in less than ten seconds.

EPC, 21 November 2017