Since our last publication, the FCA has published a discussion paper on transforming culture in financial services and the FSB has published its final guidance on sound compensation practices relating to misconduct risk.
FCA discussion paper on transforming culture in financial services
The FCA has published a discussion paper on transforming culture in financial services. The discussion paper is stimulate further debate and contains essays from leading academics and industry leaders and change practitioners discussing what good culture might look like, the role of regulation and regulators, how firms can widen their view of incentives and how to change behaviour for the better. Themes identified by the FCA include the alignment of formal aspects of conduct and culture with the informal aspects, psychological safety to encourage collaboration and innovation, and the vital role of stakeholders to improve culture alongside regulation.
FCA, 12 March 2018
FCA launches survey of EEA firms passporting into UK
The FCA has published a webpage announcing the launch of a survey of EEA inbound firms that passport into the UK. In December 2017 the UK Government announced it would legislate, if needed, to provide a temporary permission scheme for EEA firms passporting into the UK, which would enable EEA firms to enter into new business and fulfil existing contracts with UK customers for a period of time after the UK leaves the EU, while seeking full authorisation in the UK. The FCA proposes that firms will need to notify the FCA before the UK exits the EU of their desire to benefit from the regime. The survey is intended to inform the FCA's further communications relating to this and identify firms for which a temporary permission may be relevant.
FCA, 9 March 2018
FSB final guidance to principles on sound compensation practices relating to misconduct risk
The Financial Stability Board (FSB) has published the final version of its supplementary guidance to its principles and standards on sound compensation practices concerning the use of compensation tools in addressing misconduct risk. The FSB has also published an overview of responses to the consultation which summarises the main points and changes to the guidance.
FSB, 8 March 2018
LSB roundtable on how FinTech can help vulnerable customers
The Lending Standards Board (LSB) has published details of a roundtable meeting it held with its registered firms, FinTechs and the wider industry on how digital offerings can be developed to help identity and support vulnerable customers. The LSB says the evolution of digital technologies provides a unique opportunity to service the needs of vulnerable customers through features such as the automation of functions, easy access to third party help, and smart analytic tools able to prompt and support at the right time.
LSB, 8 March 2018
JMLSG consults on revised guidance on asset finance and syndicated lending
The Joint Money Steering Group (JMLSG) has published proposed revisions to Part II of its anti-money laundering and counter-terrorist financing guidance for the financial services sector, including revised versions of Chapters 12 and 17 of Part II containing sectoral guidance for asset finance firms and syndicated lending. Due to relatively minor amendments the deadline for comments is 30 March 2018.
JMLSG, 8 March 2018
EBA speech on designing a FinTech roadmap
The EBA has published a speech made by Andrea Enria, Chairperson, on designing a regulatory and supervisory roadmap for FinTech. This defines a series of priorities for the next two years reflecting the results of a public consultation.
EBA, 9 March 2018
Council of EU adopts proposed Directive delaying IDD
The Council of the EU has published a press release announcing that it has adopted the proposed Directive amending the Insurance Distribution Directive (IDD) as regards the date of application of member states' transposition measures. The Council of the EU published the text of the proposed Directive on 5 March 2018 and invited the Permanent Representatives Committee to agree the text on 6th March 2018. The next step is for the act to be published in the Official Journal of the EU.
Council of EU, 9 March 2018