The Prudential Regulation Authority (PRA) issued its Regulatory Digest for June, featuring various updates on banking and insurance.
HM Treasury is consulting on a proposal to bring funeral plans into the remit of the Financial Conduct Authority (FCA). The deadline for feedback is 25 August 2019.
The FCA posted a webcast to help solo-regulated firms prepare for the Senior Managers & Certification Regime (SMCR), which applies to them from 9 December 2019. The hour-long webinar took place on 3 June but became available on demand, subject to registration. The FCA also published a checklists webpage.
The FCA and PRA issued a joint statement on firms’ preparations for the transition from the London interbank offered rate (LIBOR) to risk-free rates (RFRs).
Two delegated regulations supplementing the EU Prospectus Regulation (PR3) appeared in the EU's Official Journal. The regulations will apply from 21 July 2019.
The Financial Services and Markets Act 2000 (Prospectus) Regulations 2019 amend legislation to implement PR3 in the UK. They come into force on 21 July 2019.
The FCA issued PS19/12, responding to feedback from consultation and setting near-final Handbook rules to ensure alignment with the PR3.
The FCA issued PS19/13, responding to feedback from consultation and setting final rules to implement requirements of the revised Shareholder Rights Directive. It also issued CP19/21, proposing amendments to its Decision Procedure and Penalties Manual (DEPP) and Enforcement Guide (EG). That consultation closes on 26 July.
The Bank of England (BoE) and PRA each issued an annual report for 2018/19, including information on their activities throughout the year and financial statements, the latter all in the BoE document.
The FCA issued Quarterly Consultation Paper No 24 (CP19/19), in which it consults on proposed changes to the Handbook, including in relation to statements of responsibilities under SMCR and waiver applications.
The PRA issued consultation paper CP12/19, proposing to amend the prescribed responsibility for recovery plans and resolution packs under SMCR. The deadline for responses is 7 August 2019.
Two regulations and two directives designed to reduce risks in the banking sector (the 'banking package') were published in the EU's Official Journal. They amend existing legislation on capital requirements and recovery and resolution for banks and were adopted by the Parliament and Council on 20 May.
On 19 June, the FCA published its first annual perimeter report. The "perimeter" refers to what and whom the FCA regulates and affects the extent to which FCA can protect consumers from harm caused by the financial services and products they purchase.
The report discusses the complexity of the perimeter, changes to financial markets, challenges to the perimeter and FCA's response to those challenges.
The FCA issued a consultation paper, CP19/20, about how it assesses adequate financial resources and the meaning of the term for its threshold conditions (Handbook, COND) and principles for businesses (Handbook, PRIN).
The FCA published its June 2019 regulation round-up, with a special focus on new rules for overdrafts and Buy Now Pay Later products.
The FCA issued PS19/14, setting new rules to prevent harm to investors on peer-to-peer platforms. These include a limit for new retail customers at 10% of investable assets and the application in certain circumstances of the Mortgage and Home Finance Conduct of Business (MCOB) sourcebook. The latter is in force; the remaining rules apply from 9 December 2019.
Advocate General Kokott's opinion in Michel Schyns v Belfius Banque SA (C 58/18) on the relationship between different pre-contractual creditor obligations under the Consumer Credit Directive (2008/48/EC) was published. It was originally delivered in German in February.
The FCA published its analysis of the retail intermediary sector in 2018, based on information drawn from mortgage, insurance and investment intermediaries' returns.
UK Finance published a set of proposed principles for banks to follow when they cannot offer, or keep providing, banking facilities to customers. The principles, developed in consultation with the FCA, are intended to ensure customers are treated fairly.
The FCA announced that, in PS19/16, it had set final rules to overhaul the overdraft market, with the aim of making overdrafts simpler, fairer, and easier to manage. It also issued CP19/18, setting out further proposals. The deadline for feedback is 7 August 2019.
The FCA set final rules on Buy Now Pay Later (BNPL) products in PS19/17, including to prevent firms charging backdated interest on money repaid during offer periods.
HM Treasury announced a new scheme to give individuals with problem debt 60 days' protection from enforcement action and further interest, provided they consult debt advisers.
The FCA responded to the House of Commons Treasury Committee’s report on consumer access to financial services, which had made a number of recommendations relating to the regulator. Parliament published the response.
The FCA issued an updated version (version 4) of its approach document on the Payment Services Regulations 2017 and Electronic Money Regulations 2011, adding guidance on refused payment fees.
Facebook announced its intention to launch a cryptocurrency, Libra, aimed especially at payments for the unbanked. An independent association is to govern the Libra Blockchain, on which Libra rests, and the Libra Reserve, which would hold assets in various currencies to back it. The announcement drew wary responses from lawmakers and officials, particularly in the US.
The EBA issued an opinion on strong customer authentication (SCA) under the revised Payment Services Directive (PSD2), responding to concerns about what approaches are compliant and challenges posed by the 14 September 2019 deadline. The FCA issued a response to the opinion.
A blog by FCA director of general insurance and conduct specialists Karina McTeague on how general insurance complaints handling can be improved was posted by the Personal Finance Society.
HM Treasury and the Office of Financial Sanctions Implementation (OFSI) issued guidance and FAQs on financial sanctions and penalties for breaches.
The FCA published a thematic review (TR19/4) of money-laundering risks in capital markets, advising firms to consider their approaches to anti-money laundering in light of the report.
HM Treasury issued an advisory notice on anti-money laundering controls overseas, following statements by the Financial Action Task Force on jurisdictions with deficient regimes.
The Complaints Commissioner issued two reports (FCA00484 and FCA00535) criticising the FCA for its supervision of firms accused of inappropriate investments and fraudulent activity. The FCA published its responses.
The FCA chief executive, Andrew Bailey, confirmed in a letter to Nicky Morgan MP that the regulator had opened an investigation into the suspension of the £3.7bn Woodford Equity Income Fund after several investors tried to withdraw.
In oral evidence, Mr Bailey defended the FCA and expressed concerns about the possibility of regulatory arbitrage afforded by loopholes in the Undertakings for Collective Investments in Transferable Securities (UCITS) Directive.
The chair of the European Securities and Markets Authority (ESMA), Steven Maijoor, gave a speech in Dublin on cross-border regulation and supervision, equivalence and the impact of Brexit.
Nick Cook, the FCA director of innovation, gave a speech on the role of innovation in financial services and at the FCA itself.
The BoE executive director of UK deposit takers supervision, James Proudman, gave a speech on governance in banking and the rise of artificial intelligence (AI) in financial services.
In his 2019 Mansion House speech, Chancellor Philip Hammond discussed fintech, financial services and announced a review of the UK regulatory system in light of Brexit.
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at June 2019. Specific advice should be sought for specific cases. For more information see our terms and conditions.