Since our last publication, the FCA has published Handbook Notice 44, setting out recent changes to the FCA Handbook. In other news, the ICO warns businesses to prepare for one year to go until the GDPR.


UK

FCA Handbook Notice: No. 44

The FCA has published Handbook Notice 44, setting out the changes made to the Handbook under the following instruments:

  • Enforcement (Bank Recovery and Resolution Order 2016) Instrument 2017 (FCA 2017/31). The instrument makes changes to the Decisions Procedure and Penalties manual and the Enforcement Guide to provide a decision making mechanism for the use of new powers under the Bank Recovery and Resolution Order 2016 (SI 2016/1239). Comes into force: 26 May 2017.
  • Handbook Administration (No 46) Instrument 2017 (FCA 2017/29). This instrument makes minor administrative changes to the following modules of the FCA's Handbook: FEES 4 Annex 11R; IPRU(INV) Annex A.1; MCOB 4 and 14; SUP 10A Annex 4D, 10A Annex 8D, 10C Annex 2D, 11,13A, 15 and 16; DISP App 3.7A; COLL 6; CONC TP 7; FUND 3.
    • In MCOB, Annex C amends MCOB 4.8A (to correct a typo) and 14.1 (where "adequate explanations" has been replaced with "record of recommendation")
    • In CONC, the transitional provision for the Consumer Credit (Amendment No. 2) Instrument 2015 has now expired.
  • Conduct of Business Sourcebook (Pension Annuity Comparator) Instrument 2017 (FCA 2017/30): the FCA Board has made changes to the Glossary and COBS 14 and 19.

The changes were made by the FCA Board on 25 May 2017.

FCA, 26 May 2017

ICO warns businesses to prepare for one year to go until the GDPR

The Information Commissioner's Office (ICO) has warned businesses to prepare for the EU General Data Protection Regulation which will become applicable in EU member states on 25 May 2018. The ICO has published an updated data protection self-assessment toolkit for SMEs which includes a new element to help organisations assess their progress in preparing for the GDPR, and has updated its "12 steps to take now" guidance.

The ICO has also launched its Information Rights Strategy, setting out its mission statement to increase public trust over the next four years.

The European Commission has also issued a statement in which it says that it will be stepping up its work with member states and engaging with companies to ensure harmonisation and avoid fragmentation in implementation of the GDPR. Within the year, it will also launch an EU-wide campaign to raise awareness so that Europeans are conscious of their rights.

ICO, 25 May 2017

FCA Data Bulletin: May 2017

The FCA has published its latest Data Bulletin providing an analysis of the intermediaries sector, based on its Retail Mediation Activities Return (RMAR). The bulletin also looks at the trends in activities and revenue for 2016 and provides information on advice and charges, showing an increase in revenues across the sector, in particular mortgage mediation.

FCA May 2017

BBA publishes April 2017 figures for high street banks

The BBA has published its latest high street banking data finding that consumer credit growth was 6.4% in April, compared to 6.1% in March. Gross mortgage borrowing totalled £13.4 billion in April whilst net mortgage borrowing was 2.4% higher than a year ago.

BBA, 25 May 2017

Debit cards to overtake cash in 2018

A new report published by Payments UK finds that the rapid growth of contactless cards means cash will be overtaken as Britain’s most frequently used payment method by the end of 2018.

Payments UK, 25 May 2017

CML: Gross mortgage lending reaches £18.4 billion in April

The Council of Mortgage Lenders has estimated that gross mortgage lending reached £18.4 billion in April. This is 11% lower than in March but 4% higher than in April last year.

CML, 25 May 2017

EU

EC publishes results of the Consumer Rights Directive review

The European Commission has published a report on the results of its evaluation of the Consumer Rights Directive (2011/83/EU). While the evaluation indicated that the Directive had positively contributed to the functioning of the business-to-consumer internal market and had ensured a high common level of consumer protection across member states, it also highlighted areas where action can be taken to improve application of the Directive. The EC also published an executive summary of the evaluation.

EBA opinion on CRR II and CRD V proposals on own funds

The EBA has published an opinion on own funds in the context of the CRR review. The CRR review was the review of the Capital Requirements Regulation (CRR) that led to the European Commission's legislative proposals for the CRR II Regulation and the CRD V Directive. In the opinion, the EBA sets out its views on aspects of the proposals for the CRR II Regulation and the CRD V Directive relating to:

  • The role of the EBA in relation to common equity tier 1 (CET1) instruments.
  • Restrictions on distributions and definition of the maximum distributable amount (MDA).
  • Reduction, redemption, repurchase of capital instruments.
  • Anti-circumvention principle.
  • Point of non-viability (PONV).

EBA, 23 May 2017

Global

GFXC launches new FX global code

The Global Foreign Exchange Committee (GFXC) has launched a new FX global code which contains a set of principles of good practice for use in the foreign exchange (FX) market. The FCA has welcomed its publication.

Global Foreign Exchange Committee (GFXC), 25 May 2017

Key contacts

Amanda Hulme

Amanda Hulme

Partner, Head of Financial Regulation
London

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Rosanna Bryant

Rosanna Bryant

Partner, Financial Regulation
Leeds, UK

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