Since our last publication, the CMA has issued guidance on the Payday Lending Market Investigation Order 2015. In other news, ESMA has published the methodological framework for its 2017 EU-wide stress test exercise on central counterparties (CCPs).


UK

CMA issues guide on Payday Lending Market Investigation Order 2015 to payday lenders

A guide for payday lenders has been published by the Competition and Markets Authority (CMA) discussing the rights and obligations created by the Payday Lending Market Investigation Order 2015.

CMA, 3 February 2017

HM Treasury response to consultation on introducing a pensions advice allowance

On 3 February 2017, a response was published by HM Treasury to its August 2016 consultation on introducing a pensions advice allowance.

HM Treasury, 3 February 2017

CMA makes Retail Banking Market Investigation Order 2017

The CMA has made the Retail Banking Market Investigation Order 2017 to implement certain remedies identified in its retail banking market investigation final report. The Retail Banking Market Investigation Order 2017 implements a suite of remedial measures designed to improve service quality, switching and information for banking customers.

CMA, 2 February 2017

AFME-commissioned report analyses operational impact of Brexit on EU banking sector

The Association for Financial Markets in Europe (AFME) has published a report entitled "Planning for Brexit: operational impacts on wholesale banking and capital markets in Europe". In producing the report, PwC gathered information on Brexit planning from 15 banks spanning a range of sizes, activities, origins and legal entity structures.

AFME, 2 February 2017

PRA Regulatory Digest – January 2017

This digest is for people interested in the UK financial services industry and highlights key regulatory news and publications delivered for the month.

PRA, 1 February 2017

Supervision review report: Acquiring clients from other firms

The FCA has published a report setting out the findings from a supervisory review of investment advisory firms' practices when acquiring clients from other firms.

FCA, 1 February 2017

Implementation of the Enforcement Review and the Green Report

The FCA and PRA have published a joint Policy Statement where they respond to comments received on their Consultation Paper on the proposed implementation of the Enforcement Review and the Green Report. The Policy Statement also explains what changes the FCA and PRA are going to make to its enforcement policies and processes.

FCA & PRA, 1 February 2017

Bank of England and Financial Services (Consequential Amendments) Regulations 2017 published

The Bank of England and Financial Services (Consequential Amendments) Regulations 2017 have been published, together with an explanatory memorandum. The Regulations were made on 31 January 2017 and come into force on 1 March 2017. They make amendments to primary and subordinate legislation in consequence of the Bank of England and Financial Services Act 2016. The 2016 Act also creates the Prudential Regulation Committee (PRC), through which the BoE must exercise its functions as the PRA.

legislation.gov.uk, 1 February 2017

BBA Brexit quick briefs on data protection and transitional arrangements

The British Bankers' Association has published two papers on the key commercial, regulatory and political considerations relating to Brexit and banking. There are two Brexit "quick briefs." The first focuses on data protection and transfer, while the other discusses whether there is a need for transitional arrangements.

BBA, 31 January 2017

OECD report on the conditions for establishment in the provision of banking services

The Organisation for Economic Co-operation and Development (OECD) has published a report on the condition for establishment of subsidiaries and branches in the provision of banking services by non-resident institutions. The report explains that a range of measures having implications for non-resident banking or credit institutions were introduced after the financial crisis. They include changes in the authorisation process and scope of permitted activities, as well as financial requirements, governance and risk management requirements, operational requirements and ownership and control requirements.

OECD, 30 January 2017

Treasury Committee questions HM Treasury's powers to block reviews under Part 5 of Financial Services Act 2012

The House of Commons Treasury Committee has published a letter from Andrew Tyrie, Committee Chair, to Philip Hammond, Chancellor of the Exchequer, concerning HM Treasury's powers of direction over reviews under Part 5 of the Financial Services Act 2012.

House of Commons Treasury Committee, 24 January 2017

EU

FMLC letter on Brexit and transitional arrangements

A letter has been published by the Financial Markets Law Committee (FMLC) containing comments about the UK's financial services industry in the context of the UK's withdrawal from the EU.

FMLC, 3 February 2017

EBA 2015 report on high earners in EU banks

The European Banking Authority (EBA) has published its 2015 report on high earners in EU banks. Under article 75(3) of the CRD IV Directive (2013/36/EU), the EBA is required, on an annual basis, to publish aggregated data on high earners in EU banks earning EUR 1 million or more in a financial year. For the purposes of the 2015 report, the EBA has analysed the data that has been provided by national competent authorities as at the end of 2015, and compared it to the 2014 data.

EBA, 2 February 2017

ESMA launches 2017 EU-wide CCPs stress test

ESMA has published the methodological framework for its 2017 EU-wide stress test exercise on central counterparties (CCPs). The framework document explains the design of the new stress test exercise, including its scope, objectives, methodology and next steps. ESMA is committed to evolve and improve the methodology and envisages a number of changes compared to the first stress test, which was carried out in 2016.

ESMA, 1 February 2017

"MFI lending rates: pass through in the time of non-standard monetary policy"

The latest Economic Bulletin article looks at monetary policy transmission and presents new evidence on driving forces behind lending rate setting in the euro area. It also shows that the ECB's non-standard measures have helped restore the transmission mechanism.

ECB, 30 January 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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