BANKING FCA statement on national cyber attack

The FCA advises firms to review the guidance on ransomware that has been issued by the National Cyber Security Centre and take appropriate action.

It also asks firms that have been subject to an attack to contact Action Fraud and notify their regulator(s) through their usual route. FCA, 13 May 2017

ATM merger referred for full investigation

Cardtronics’ purchase of rival ATM provider DCP is being referred for an in-depth investigation, after the CMA found competition concerns.  On 3 May the Competition and Markets Authority (CMA) said it would refer the merger for a phase 2 investigation unless Cardtronics offered acceptable proposals to address these concerns by 10 May.  As Cardtronics has not offered these undertakings, the CMA will now refer the merger.

A decision on the merger will be made by a group of independent panel members supported by a case team of CMA staff. The deadline for the final report is 27 October 2017. CMA, 15 May 2017

ECB guide to SSM fit and proper assessments

The European Central Bank (ECB) has published a guide to fit and proper assessments for members of the management bodies of significant credit institutions under the single supervisory mechanism (SSM).  The guide:

  • Explains how ECB Banking Supervision ensures consistency in the application of the SSM's fit and proper assessment criteria, with a view to establishing common supervisory practices for assessing the qualifications, skills and proper standing of a candidate for a position on a credit institution's board (such as the chief executive officer (CEO) or a non-executive board member).
  • Enhances the transparency of the assessment criteria and the related ECB supervisory practices and processes.

ECB, 15 May 2017

FSB Regional Consultative Group for the MENA discusses regional vulnerabilities, banking supervision issues and correspondent banking

The Financial Stability Board (FSB) Regional Consultative Group (RCG) for the Middle East and North Africa (MENA) met in Abu Dhabi at a meeting hosted by the Central Bank of the United Arab Emirates.  The RCG discussed a number of issues including FSB work on transforming shadow banking, the role of banking supervision in recovery and resolution planning, and the challenges with calculating and accounting for non performing loans. FSB, 15 May 2017

Communique from G7 finance ministers and central bank governors

The G7 finance ministers and central bank governors have issued a communique following their meeting in Bari, Italy, from 11 to 13 May 2017.  The communique comments on:

  • A commitment to increased information sharing among relevant authorities;
  • Support for the Financial Action Task Force;
  • The need for improved supervision of the Money and Value Transfer Services sector;
  • Improvement of technical assistance regarding the effective implementation of anti-money laundering and counter financing of terrorism regime in the FATF network;
  • The need for enhanced sharing of cyber security information;
  • Support for the development of a cyber insurance market.

G7, 13 May 2017

FMLC response to European Commission consultation on operations of ESAs

The Financial Markets Law Committee (FMLC) has published its response to the European Commission's consultation on the operations of the European Supervisory Authorities (ESMA, EIOPA and the EBA).  The response focuses on the ESAs' use of Q&A documents, noting that stakeholder experience of Q&As suggests that certain methods and approaches seem to be more effective than others.

The paper proposes a number of solutions, suggesting that the ESAs agree a set of best practices to ensure greater consistency in the approaches taken to their Q&A documents.

FMLC, 12 May 2017

INSURANCE FCA updates PRIIPs disclosure: Key Information Documents

The FCA has updated its list of products within and outside the definition of PRIIPs (Packaged Retail and Insurance-based Investment Product) for the purposes of the PRIIPs Regulation (Regulation 1286/2014).  Firms must comply with the PRIIPS Regulation from 1 January 2018. FCA, 12 May 2017

FCA guidance consultation on Part 7 insurance business transfers

The FCA has published a guidance consultation (GC17/5) on its approach to the review of insurance business transfers under Part 7 (which the FCA refers to as Part VII) of the Financial Services and Markets Act 2000 (FSMA). 

The consultation closes on 15 August 2017. The FCA intends to issue finalised guidance in autumn 2017. FCA, 15 May 2017

BIBA response to MoJ Damages Discount Rate consultation

BIBA outlines some current deficiencies in the law to set the rate, calls for changes and the involvement of experts.  Specifically, BIBA highlights the following problems with the existing law:

  • a heightened risk of under-insurance in liability classes;
  • the need for insurers to, with little warning, radically change their reserving models and resulting increases in claims reserves;
  • the potential upward pressure on customers’ premiums as a result of expected increases in claims; and
  • concerns around reduced capacity in the motor insurance market.

BIBA, 15 May 2017

Insurance Europe response to FSBs consultation on proposed framework for evaluation of effects of G-20 financial regulatory reforms

Insurance Europe highlights the concerns that the European insurance industry has faced over elements of FSB’s financial regulatory reform work following the financial crisis, which affected the insurance sector.

Insurance Europe agrees that the objectives and scope of the FSB proposed framework are appropriate, albeit incomplete, and suggested a list of key changes to improve its content.  It also reiterated that the evaluation should investigate whether existing and planned standards work as intended and do not contribute to procyclicality or create market distortions.

Insurance Europe, 15 May 2017