Regulation round-up. The UK Financial Conduct Authority published the August 2016 edition of its Regulation round-up. (8/18/2016)
FCA will hold off on changes to client money rules for insurance intermediaries.The FCA released a statement to update firms regarding its consultation on changes to its client money rules for insurance intermediaries. The FCA indicated that in light of the feedback it received to the proposals and new requirements under the Financial Services Act of 2012, it will not move forward with the proposed rule changes at this time. (8/16/2016) FCA statement.
PRA finalizes supervisory approach for remuneration requirements under Solvency II. The Prudential Regulation Authority issued a policy statement that responds to the feedback it received to its consultation on remuneration requirements for Solvency II firms. The PRA also published a supervisory statementalongside the policy statement that explains the PRA’s expectations for how firms, and particularly “significant insurers,” can achieve compliance with the remuneration requirements. (8/12/2016) PRA press release.
PRA reminds firms of their responsibilities in promoting diversity in its management body. The PRA issued a letter that reminds Capital Requirement Regulation firms of their obligations to establish policies to promote diversity on the management body and explain on their websites how they comply with this requirement. (8/12/2016) PRA letter.
EBA proposes standards for customer authentication and secure communication for payment services providers. The European Banking Authority requested comments on a consultation paper that proposes draft technical standards on strong customer authentication and secure communications under the revised Payment Services Directive. The proposes standards recommend the adoption of risk-based requirements for strengthened customer authentication, enhanced protection of user’s security credentials, and common and secure open standards for communications between different types of payment services providers. Comments are due on or before October 12, 2016. (8/12/2016)EBA press release.
EBA welcomes EC’s proposal to include virtual currency entities under the Anti-Money Laundering Directive. In an Opinion on the European Commission’s proposal to apply the Anti-Money Laundering Directive to virtual currency entities, the EBA acknowledged the move as an important step in mitigating the risks of money laundering and terrorist financing associated with the use of virtual currencies. The EBA also made several recommendations that the EU should consider before finalizing amendments to the Anti-Money Laundering Directive to facilitate their consistent implementation by competent authorities across the EU. (8/11/2016) EBA press release.
FCA issues final rules requiring insurance firms to make additional disclosures to consumers at renewal. The FCA published a policy statement that contains the final rules and guidance resulting from its consultation on proposed rules to increase transparency and engagement at renewal in the general insurance markets. The final rules largely mirror the proposed rules, except for an alteration to the requirements that will oblige firms to provide annualized premiums reflecting any mid-term adjustments in cases where a consumer’s circumstances have changed during the course of holding the policy. Firms will be required to make any necessary changes to their communications by April 1, 2017. (8/10/2016) FCA press release.