Included in this edition of InCredit: FSCS to raise supplementary levies on financial services firms in 2018/19; BSB consults on good practice guidance on regulatory references; cross-border testing pilot for innovative firms open for applications and more...
FSCS to raise supplementary levies on financial services firms in 2018/19
The Financial Services Compensation Scheme (FSCS) published its Plan and Budget for 2019/20. The document outlines the Scheme’s expected management costs and latest forecast of potential claims volumes. It also outlines its initial forecasts for the levy financial services firms will pay next year, as well as supplementary levies it will raise on firms before the end of 2018/19.
FCSC, 31 January 2019
FSCS - Management Expenses Levy Limit 2019/20
The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have launched a joint consultation on the management expenses levy limit (MELL) for the FSCS for 2019/20. The MELL ensures that the FSCS has adequate funding to continue to operate and meet its objective of providing a compensation scheme for consumers. The proposed MELL for 2019/20 is £79.6 million.
FCA, 31 January 2019
BSB consults on good practice guidance on regulatory references
The Banking Standards Board (BSB) is consulting on its proposed good practice guidance on regulatory references, this is a key part of the senior managers and certification regime (SM&CR). The guidance outlines three high-level principles which consider both the ‘providing’ and ‘receiving’ ends of the process, and state that regulatory reference practices and policies should be: fair to the individuals about whom they are written without compromising the integrity of the reference, proportionate in relation to other firms and individuals when fulfilling regulatory reference requirements and consistent in the way that individuals are treated by firms providing and receiving references. The consultation will run for seven weeks until 20 March 2019.
BSB, 31 January 2019
Previously rejected PPI complaints and further mailing requirements - Feedback on CP18/33 and final rules and guidance
The FCA has published final rules and guidance requiring firms to write to certain previously rejected PPI complainants, to tell them they can make a new complaint about undisclosed commission and remind them of the 29 August 2019 deadline for doing so. The rules and guidance will primarily affect firms that sold regular premium PPI or single premium PPI and/or provided credit agreements (including restricted credit) which these PPI policies covered.
FCA, 30 January 2019
Banking (Cash Machine Charges and Financial Inclusion) Bill 2017-19
Banking (Cash Machine Charges and Financial Inclusion) Bill 2017-19 - the second reading for this bill is scheduled to take place on Friday 15 March 2019. A bill to prohibit cash machine charges; to require banks to enable free cash withdrawals from current accounts in other circumstances; to require the FCA to supervise an access to banking standard; to impose penalties for breaches of that standard; to establish a financial inclusion fund, and provide for amounts received in such penalties to be paid into that fund; and for connected purposes.
Parliament, 30 January 2019
ECB 2018 stress test analysis shows improved capital basis of significant euro area banks
The European Central Bank (ECB) published aggregate results for the 2018 stress test for all participating banks under its supervision.
The 87 banks covered in the report include 33 euro area banks that were part of the EU-wide stress test coordinated by the European Banking Authority (EBA). The ECB conducted additional stress tests on 54 significant institutions which it directly supervises and which were not part of the EBA stress test. Both sets of results form the aggregate report released today. The reference date for the 2018 stress test was 31 December 2017.
ECB, 1 February 2019
Cross-border testing pilot for innovative firms open for applications
The FCA has launched a cross-border testing pilot for innovative firms who would like to test products, services or business models across international markets. This has been initiated by the Global Financial Innovation Network (GFIN), which is currently chaired by the FCA and aims to support innovations that are for the benefit of customers.
FCA, 31 January 2019