BANKING

Financial Services and Markets Act 2000 and Financial Services (Banking Reform) Act 2013 (Disclosure of Confidential Information) (Amendment) Regulations 2017 published

The Financial Services and Markets Act 2000 and the Financial Services (Banking Reform) Act 2013 (Disclosure of Confidential Information) (Amendment) Regulations 2017 (SI 2017/456) have been published on legislation.gov.uk, together with an explanatory memorandum. The Amendment Regulations amend the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001 (SI 2001/2188) (2001 Regulations) and the Financial Services (Banking Reform) Act 2013 (Disclosure of Confidential Information) Regulations 2014 (SI 2014/882) (2014 Regulations). The Amendment Regulations were made on 21 March 2017 and come into force on 12 April 2017. HM Treasury, 22 March 2017

ECB Vice-Chair statement on UK banks seeking post-Brexit licences in Eurozone

Sabine Lautenschläger, Vice-Chair of the Supervisory Board of the European Central Bank (ECB) has made a statement that considers the standards that will apply to UK banks seeking to obtain banking licences in member states in the Eurozone following the UK's decision to leave the EU. Ms Lautenschläger explains how any applications for banking licences in those member states will be considered by the ECB in its banking supervisory role under the single supervisory mechanism (SSM). The ECB intends to provide a transitional period in which a new bank established in the Eurozone might use internal models that have not been approved by the ECB, subject to two conditions.

  • The PRA must have approved the bank's internal model. The ECB will take into account any comments made on the quality of the model by the PRA.
  • The bank must have applied for internal model approval in the Eurozone.

The transitional period will end for a particular bank as soon as the ECB has approved or rejected the bank's model application.

ECB, 22 March 2017

Responses to Joint Committee of ESAs discussion paper on use of big data by financial institutions

ESMA has published a list of responses to the discussion paper of the Joint Committee of the European Supervisory Authorities (ESAs) on the use of big data by financial institutions. In the discussion paper, the ESAs said that they will publish their decision regarding next steps later in 2017. ESMA, 22 March 2017

Cheque and Credit Clearing Company announces timetable for cheque image clearing system

The Cheque & Credit Clearing Company (C&CCC) has announced the timetable for the introduction of the Image Clearing System (ICS). The C&CCC state that the ICS will go live with certain UK banks and building societies from 30 October 2017. The system will apply to all UK banks and building societies from a date in the second half of 2018 to be determined by the industry in due course. C&CCC, 22 March 2017

EBA 2016 report on functioning of supervisory colleges and 2017 action plan

EBA has published a report on the functioning of supervisory colleges in 2016, which contains the 2017 EBA colleges action plan. In the report, the EBA sets out its assessment of how colleges have fulfilled the requirements of its colleges action plan for 2016, which was published in March 2016. The EBA found that overall the level and quality of engagements in supervisory colleges improved in 2016 in comparison with 2015. The EBA also found improvements in the quality and depth of discussions and the completion of mapping templates. The EBA suggests that further development is needed in the business model analysis in group risk assessment reports. EBA, 22 March 2017

Changing Payments Landscape - A focus on payments data’

Payments UK have published their latest report which takes a look at key developments in data usage and storage, and the implications for payment services. Without a doubt, data is one of the hottest topics in banking and financial services. The debate on the potential for this commodity, the consequences of its use, and the

ethics of how we deal with it as an industry and as a society is just getting going. This report shines a light on these issues from a payments perspective. Payments UK, 21 March 2017

FLA and The UK Cards Association launch new research on customer vulnerability

The FLA and The UK Cards Association have published a new publication – Vulnerability; a guide for debt collection – that will help their members to better identify and support customers in vulnerable circumstances. Both trade associations worked in partnership with the University of Bristol’s Personal Finance Research Centre (PFRC) to develop this work. During 2016, the research team captured the experiences of 1,600 frontline collections and specialist staff from 27 UK lenders and debt collection firms, and used them to develop 21 practical and commercially realistic steps that can now be shared across the credit industry for the benefit of customers, but also adapted for use in sectors as diverse as utilities, telecoms, retail and Government. The guide describes strategies to help staff deal with specific and often challenging vulnerabilities, such as serious or terminal illness, bereavement, addiction, and mental health issues. The final section provides guidance on developing training programmes and working with partner agencies, and 21 case studies illustrate the difference that appropriate handling can make to a customer in need of a little extra support.

UK Cards Association, 21 March 2017

INSURANCE

BIBA launches SME flood insurance scheme

The British Insurance Brokers' Association (BIBA) has launched a new scheme which aims to help improve the availability of flood insurance for small- and medium-sized enterprises (SMEs) who were excluded from the Flood Re scheme. A presentation to Parliament by BIBA's executive director Graeme Trudgill on 22 March 2017 will outline how the scheme aims to improve access to flood insurance for SMEs in flood risk areas and emphasise the importance of investment in flood prevention and resilience measures. BIBA, 21 March 2017

Existing EU regulation can handle big data developments, says Insurance Europe

Insurance Europe has responded to the European Supervisory Authorities' (ESAs) joint discussion paper on the use of big data by financial institutions, agreeing with the ESAs that increasingly sophisticated data analytics tools open up new possibilities, such as insuring new risks, offering more tailored products, and better loss prevention advice to consumers. It also argues that the existing EU legal framework is appropriately addressing the issues described in the ESAs' joint discussion paper. Insurance Europe, 22 March 2017

ABI reminds about incoming retail insurance policy renewal rules

The Association of British Insurers (ABI) has highlighted the approaching implementation day of the rules to give consumers a better understanding of their renewal premium and options when their retail insurance policies come up for renewal. Among other things, the ABI stresses that while price will be a factor, it is more important for consumers to check that the policy cover meets their needs. ABI, 22 March 2017

INVESTMENTS AND FUNDS

Investment Association and AFME revise framework for indications of interest

The Investment Association (IA) has published a press release announcing that it has agreed a revised code of conduct for the use of indications of interest (IOIs) with the Association for Financial Markets in Europe (AFME). In the press release, the IA states that they have updated the code to include a complementary IOI category to the client class (C:2) to give investment managers the opportunity to see orders that can be filled in their entirety and those that can be proportionately met. IA, 22 March 2017

ESMA Chair statement on proposed Regulation on CCP recovery and resolution

ESMA has published a statement, given by Steven Maijoor, ESMA Chair, on the European Commission's legislative proposal for a Regulation on the recovery and resolution of central counterparties (CCPs). In the statement, which was given to the European Parliament's Economic and Monetary Affairs Committee (ECON), Mr Maijoor comments on three aspects of the proposed Regulation: recovery planning, resolution tools and governance of resolution process. ESMA, 22 March 2017