UK 

LSB publishes Access to Banking Standard summary report

The Lending Standards Board (LSB) has published its first summary report on banks' application of the Access to Banking Standard, which came into effect on 1 May 2017 following an independent review commissioned by the industry and applies to all branch closures announced after 1 May 2017, together with those announced prior to this date but not taking place until after 1 August 2017.

LSB, 18 September 2018

PSR gives details of information notices issued to Mastercard and Visa

The Payment Systems Regulator (PSR) has published details of the information notices which it issued to Mastercard Europe SA and Visa Europe Ltd in July 2018. The information notices are intended to help the PSR monitor compliance with the caps on interchange fees on payment card transactions imposed by the Interchange Fee Regulation (EU) 2015/751 (IFR). Although the PSR does not usually publish details of information notices issued to regulated persons, it has published details of these notices as they asked for information on payments received or paid by individual issuers and acquirers.

PSR, 18 September 2018

PSR makes assessment of 2018 annual CASS review

The Payment Systems Regulator (PSR) has published its annual monitoring 2018 on the Current Account Switch Service (CASS)'s compliance with the Payment Account Regulations 2015 (PAR). This follows a review of information and evidence submitted by Bacs on behalf of CASS for the purpose of an annual assessment. In summary, the PSR is satisfied that the CASS is in the interests of the consumer and is compliant with the PAR. 

PSR, 18 September 2018

Credit reference agency fined £500,000 for personal data breach

Equifax Ltd, a credit reference agency, has been fined £500,000 by the Information Commissioner’s Office (ICO) for failing to protect the personal information of up to 15 million UK citizens during a cyber-attack in 2017. Between 13 May and 30 July 2017, a cyber-attack in the US led to the leaking of the personal data of 146 million customers globally. As the UK arm of the American parent company Equifax Inc, after an investigation conducted in affiliation with the Financial Conduct Authority (FCA), the ICO found Equifax Ltd to be responsible over the security of the data of its UK customers.

ICO, 20 September 2018             

Second edition of joint guide on future of LIBOR published

The Loan Market Association (LMA) and the Association of Corporate Treasurers (ACT) have updated guidance on the future of LIBOR. New developments that have been added include the publication of the LMA's revised replacement of screen rate clause, the launch of a consultation on term rates in the sterling market, the selection of the euro RFR and publication of the ISDA consultation on LIBOR fallbacks. 

LMA, 18 September 2018

FCA and PRA publish Dear CEO letters on firms' preparations for transition from LIBOR to risk-free rates

The FCA and PRA have published details of letters that the regulators have sent to CEOs of major banks and insurers supervised in the UK asking for the preparations and actions they are taking to manage transition from LIBOR to alternative interest rate benchmarks. The letter noted that LIBOR is deeply embedded in current business practices and so will take time. Insufficient preparations for transition to alternative rates could have a negative impact on the safety and soundness of firms, causing harm to their clients and to the markets in which they operate. By the 14 December 2018 the FCA and PRA have requested a board-approved summary of the key risks and identification of senior manager(s) within the firm who will oversee the implementation of transition plans.

BoE, 19 September 2018 

FCA consults on new rules for claims management firms to raise standards of conduct and protect consumers

The FCA will become the regulator of claims management companies on 1 April 2019. Before then they are consulting on new rules for claims management companies, to raise standards of conduct. CMCs should read the consultation paper for further information about when the SM&CR may apply to them and what action they need to take. They should send any feedback by the 6 December 2018.

FCA, 20 September 2018

Worldwide 

Europol outlines 15 ways to be a victim of cybercrime

Europol has published its fifth annual cybercrime report, in which it sets out 15 creative new methods cybercriminals are using to target victims. Europol urges law enforcement to target cybercriminals offering ‘off-the-shelf’ cyber-attack services or products to make it more difficult for low-level cybercriminals to carry out high-level attacks.

Europol, 18 September 2018

Central banks keeping up with fast-paced electronic markets—BIS

The Bank for International Settlements (BIS) has published a report on monitoring of fast-paced electronic markets (FPMs), looking at the wide range of structural changes undergone in recent years by foreign exchange and other FPMs and the relevance of these changes to central banks' market monitoring approaches.

BIS, 18 September 2018

ECB to progress banking union and SSM towards a single jurisdiction

The European Central Bank (ECB) has published a speech by the chair of its supervisory board, Danièle Nouy, on financial supervision and the role of national authorities in Europe. Ms Nouy called for further progress in making the banking union and the single supervisory mechanism (SSM) a single jurisdiction, saying to do so will require ‘harmonisation, co-operation and solidarity’.

ECB, 18 September 2018 

ECB says progress has been made on banks’ profitability and business models but pressures remain

The European Central Bank (ECB) Banking Supervision has published its findings from the thematic review it conducted into EU banks’ profitability and business models. The review shows that although the economic situation of banks in the euro area has generally improved, profitability and business models remain under pressure.

ECB, 18 September 2018

EBA reports on EU banks' funding plans and asset encumbrance

The EBA has published two reports aiming to provide important information for EU supervisors to assess the sustainability of banks' main sources of funding. The reports aim to provide important information for EU supervisors to assess the sustainability of banks' main sources of funding. The results of the assessment show that banks plan to match the asset side increase in the forecast years by a growth in client deposits as well as market based funding.

EBA, 19 September 2018

ECB publishes guide to on-site inspections and internal model investigations

Following the completion of a public consultation, ECB has published a guide to on-site inspections and internal model investigations. The objective of the guide, which was drafted in close cooperation with the national competent authorities (NCAs), is to explain how ECB Banking Supervision conducts inspections and to provide a useful document for banks subject to such inspections.

ECB, 21 September 2018                                                  

EBA launches annual transparency exercise

The EBA has launched its fifth annual EU-wide transparency exercise.  In December 2018, together with the risk assessment report (RAR), the EBA will release over 900,000 data points on around 130 EU banks. The data will cover capital positions, risk exposure amounts, sovereign exposures and asset quality.

LNB, 24 September 2018