BANKING

Response to ECON letter outlining concerns about draft RTS under PSD2

ECON has issued a letter received from the EBA which relates to the RTS on SCA and SC under PSD2. This letter is in response to a letter from ECON in October outlining concerns about the EBA's draft RTS.

ECON, 23 November 2016

Consultation on revised guidelines on correspondent banking

The Basel Committee on Banking Supervision has issued a consultation document on a revised version of its guidelines on correspondent banking. This draft aims to ensure that banks conduct corresponding banking business with the best possible understanding of AML and CTF rules. The consultation closes on 22 February 2017.

BCBS, 23 November 2016

Occasional paper on experimental research into communications and disclosure

The FCA has published occasional paper 23 on full disclosure which gives a round-up of experimental research into giving information. A technical appendix has also been published along with an Insight article entitled "Increasing confidence: what power posing can tell us about research for regulation". 

FCA, 23 November 2016

Legislative proposals for revisions to CRR and CRD IV Directive

The European Commission has published legislative proposals adopted for a Regulation amending the CRR and a Directive amending CRD IV. The proposals form part of a package of banking reforms and are accompanied by a press release and accompanying fact sheet.

EC, 23 November 2016

Autumn Statement 2016: financial services

The Chancellor Philip Hammond, delivered the Autumn Statement on 23 November which included a number of items relevant to financial services as follows:

  • Insurance linked securities
  • FinTech
  • Pensions scams
  • Consumer insurances markets
  • Credit unions
  • Bank levy reforms

HM Treasury, 23 November 2016

PSR board meeting minutes for September 2016

Minutes of the Payment Systems Regulator board meeting on 14 September 2016 have been published. Key items of interest include:

  • BoE's real-time gross settlement consultation
  • Future role of the Payments Strategy Forum and the PSR
  • Changes to the PSR Enforcement Governance Committee
  • Competition Decision Committee enforcement

PSR, 23 November 2016

Consultation on draft guidance relating to leveraged transactions 

The European Central Bank has published a consultation paper setting out draft guidance on leveraged transactions. This applies to all significant credit institutions supervised by the ECB under Article 6(4) and recommends banks put in place an overarching definition of leveraged transactions. A set of questions and answers has also been published and the consultation will end on 27 January 2017.

ECB, 23 November 2016

Legislative proposals for TLAC and MREL from EC

The EC has published legislative proposals relating to the implementation of the FSB total loss absorbing capacity standard which include:

The Commission has also published a press release and fact sheet on the banking reform proposals.

EC, 23 November 2016

Final draft RTS on assessment methodology to validate market risk under CRR

The EBA has published a report containing its final draft RTS on the assessment methodology to validate market risk models under the CRR. This will now be submitted to the EC for endorsement and will enter into force 20 days after publication in the OJ.

EBA, 22 November 2016


INSURANCE

Draft stakeholder engagement plan: IAIS seeks feedback

The International Association of Insurance Supervisors has published a draft stakeholder engagement plan and is asking for feedback.  Comments are required by 31 December 2016.

IAIS, 23 November 2016

Consultation on implementing new regulatory and tax framework for ILS

HM Treasury has published a consultation paper implementing a new regulatory and tax framework for insurance linked securities. This consultation forms part of the Autumn Statement 2016 and seeks views on the following key areas:

  • Directors' duties
  • Reporting and accounts
  • Audit requirements for PCCs
  • The insolvency framework for PCCs

The closing date for responses is 18 January 2017.

HM Treasury, 23 November 2016

Joint consultation paper on the authorisation and supervision of ISPVs

The FCA and PRA have published a joint consultation paper on the authorisation and supervision of insurance special purpose vehicles. The paper is relevant to all those wanting to obtain authorisation as an ISPV and introduces the following:

  • Draft PRA supervisory statement and draft FCA statement describing regulators' expectations relating to content and quality of ISPV and PCC applications and ongoing compliance
  • Proposed amendments to the PRA Rulebook
  • Draft application form relating to authorisation and supervision of ISPVs
  • Draft notification form for firms when they want to add new cells to an MISPV

The consultation ends on 23 February 2017.

FCA and PRA, 23 November 2016


INVESTMENTS AND FUNDS

Outcomes of EMIR review reported by EC

The European Commission has published a report on the review of EMIR which will now be submitted to the European Parliament and the Council of the EU. Measures to simplify and increase efficiency of EMIR requirements have been highlighted as:

  • Introducing a mechanism to suspend the clearing obligation
  • Facilitating the predictability of margin requirements
  • Streamlining trade reporting

EC, 23 November 2016

PRIIPs Regulation disclosure rules changes: FCA announces delay until 2017

The FCA has updated its webpage on KIDs for PRIIPs announcing it will publish a policy statement relating to the July 2016 consultation in the first half of 2017.

FCA, 23 November 2016