Since our last publication, a Creditworthiness Assessment Bill 2017-19 has been published and the Financial Guidance and Claims Bill 2017-19 has been published by the UK Parliament alongside explanatory notes, after receiving its first reading in the House of Lords. In other news, the FCA has published a speech on conduct regulation in retail banking.
UK
Creditworthiness Assessment Bill 2017-19
A Creditworthiness Assessment Bill 2017-19 has been published. The Bill was presented by Lord Bird, a crossbench peer. Specifically, the Bill seeks to amend section 64A of the Financial Services and Markets Act 2000 (FSMA). The amendment would impose a requirement on the FCA to make rules to ensure that firms carrying on credit-related regulated activities and connected activities, and firms entering into or varying a regulated mortgage contract or home purchase plan, take into account rental payment history and council tax payment history when assessing a borrower's creditworthiness.
Financial Guidance and Claims Bill 2017-19: publication and first reading
The Financial Guidance and Claims Bill 2017-19 has received its first reading in the House of Lords on the 22 June 2017, it has now been published by the UK Parliament alongside explanatory notes. The Bill was one of the measures that was presented in the Queen's speech earlier this month, and aims to ensure that members of the public are able to access free and impartial money guidance, pensions guidance and debt advice.
FCA speech on conduct regulation in retail banking
The FCA has published a speech by Andrew Bailey, FCA Chief Executive, on conduct regulation in the UK retail banking market. In the speech Mr Bailey identifies three broad issues for retail banks that he refers to as being highly relevant for conduct regulation: offering multiple products, the longevity of products and cross-subsidies. He also mentions public policy and the importance of ring-fencing and innovation in relation to retail banks. Mr Bailey concludes the speech by providing an overview of three pieces of work the FCA is currently involved in. These are its strategic overview of retail banking business models and the review of high-cost credit, including overdrafts. He explains the third piece of work will appear in the near future, and will be a thematic review by the FCA that responds to a recommendation from the Parliamentary Commission on Banking Standards report, published in 2013, that banks should assess customers' understanding of the products and services they deliver.
The Equality Act 2010 (Amendment) (Disabled Access) Bill receives its first reading in the House of Lords
The Bill is a private members' bill. If enacted, it will amend the Equality Act 2010 to improve access to public buildings by stipulating that the taking of reasonable steps under section 20 of the Act (the duty to make adjustments) will require buildings to introduce a ramp, suitable for wheelchair access, in substitution for a single access step if the single access step is less than six inches or 12 inches (the language of the Bill is likely to be clarified).
UK Parliament, 28 June 2017
FCA webpage on notification requirements in Money Laundering Regulations 2017 for FSMA authorised firms
The FCA has published a new webpage on the notification requirements in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) for persons authorised under the Financial Services and Markets Act 2000 (FSMA).
FATF consultation - Draft guidance for private sector information sharing
The Financial Action Task Force (FATF) has published a consultation on draft guidance for private sector information sharing.
FSB report on FinTech financial stability implications
The Financial Stability Board (FSB) has published a report on the financial stability implications from FinTech.
The report outlines analysis of the potential financial stability implications from FinTech, with a view to identifying supervisory and regulatory issues that merit authorities' attention.
Financial Stability Board, 27 June 2017
EU
ECB decision on reporting of credit institutions' funding plans by NCAs to ECB under SSM
The European Central Bank (ECB) has published a decision on the reporting of funding plans of credit institutions, by national competent authorities (NCAs), to the ECB under the single supervisory mechanism (SSM).
EBA opinion responds to European Commission intention to amend the technical standards for open and secure payments under PSD2
The European Banking Authority has published an opinion in response to the European Commission's intention to amend the EBA's draft regulatory technical standards (RTS) on strong customer authentication and common and secure communication under PSD2.
EBA publishes consultation on draft RTS on central contact point under revised PSD2
The EBA has published a consultation paper on draft regulatory technical standards (RTS) that specify the criteria for determining when the appointment of a central contact point, under PSD2, is appropriate and the functions they should have. Consultation closes: 29 September 2017.
EBA report on innovative uses of consumer data by financial institutions
The EBA has published a report on innovative uses of consumer data by financial institutions.
European Commission report on the assessment of the risks of money laundering and terrorist finance affecting the internal market and cross-border activity
The European Commission has published a report on the assessment of the risks of money laundering and terrorist financing affecting the internal market and relating to cross-border activities.
European Commission, 26 June 2017
