BANKING

FCA provides update on regulatory sandbox and announces third cohort application window

The FCA has published an update on its regulatory sandbox.  The regulatory sandbox provides a space where firms can pilot innovative products and services in a live environment. It was set up as part of the FCA's Project Innovate and first opened to applications on 9 May 2016. FCA, 15 June 2017

FCA speech on its evolving approach to investigations

The FCA has published a speech by Jamie Symington, FCA Director of Investigations, on the FCA's evolving approach to investigations.  In his speech, Mr Symington focuses on how the FCA uses its powers of investigation and how this is evolving to fit with the FCA's Mission and its general response to future challenges.

FCA, 15 June 2017

EBA response to EC consultation on FinTech

The European Banking Authority (EBA) has submitted a response to the European Commission's Public Consultation on FinTech: a more competitive and innovative European financial sector Document on Retail Financial Services. In the response, the EBA conveys its views on a subset of the Commission's questions, and focuses on the work the EBA has done so far on FinTech. Separately, the EBA is currently developing a Discussion Paper on FinTech issues that fall more into the EBA's remit and will publish its views in the coming months.

EBA, 15 June 2017

European Ombudsman rules ECB had no mandate to intervene in contractual dispute between bank and customer

The European Ombudsman has published a decision concerning the jurisdiction of the European Central Bank (ECB) under the single supervisory mechanism (SSM) (Case: 1669/2016/CEC).

The case concerned a dispute between a Dutch bank and one of its customers about the interest rate of the customer’s mortgage. The customer requested the ECB to intervene in the dispute, but the ECB refused on the grounds that it could not intervene in disputes between banks and their clients.  The Ombudsman concluded that the ECB's decision was correct.

European Ombudsman, 15 June 2017

ESMA, EIOPA and EBA publish their annual reports for 2016

The European Supervisory Authorities (ESMA, EIOPA and the EBA) have published their annual reports for 2016.

ESMA, EIOPA, EBA, 15 June 2017

INSURANCE

EIOPA and World Bank enter new memorandum of understanding

EIOPA has published a new memorandum of understanding (MoU) it has signed with the International Bank for Reconstruction and Development (IBRD) and the International Development Association (together, the World Bank) (EIOPA-17/391); this replaces a previous MoU signed in 2013.

EIOPA, 15 June 2017

Speeches by Gabriel Bernardino, Chairman of EIOPA

EIOPA has published details of:

  • A keynote address by Gabriel Bernardino at the Goldman Sachs 21st Annual European Financials Conference, Madrid
  • A video address by Gabriel Bernardino at the Deutsche Bank Insurance Capital Forum, London

EIOPA, 15 June 2017

Insurance Europe response to EC consultation on FinTech

Insurance Europe has responded to the European Commission’s consultation on “Fintech: a more competitive and innovative European financial sector”.  In its response, Insurance Europe said that the Commission must ensure that regulation is future proof and supportive of innovation that benefits consumers. Insurance Europe, 15 June 2017

INVESTMENTS AND FUNDS

GFMA panel debate on FX global code of conduct launch

The Global Financial Markets Association has published a summary of a panel debate on the launch of the FX global code of conduct. The code comprises a set of global principles of good practice in the foreign exchange (FX) market.

GFMA, 15 June 2017

EMMI consults on new reference index for euro repo market

The European Money Markets Institute (EMMI) has published a consultation paper on a new reference index for the euro repo money market.  EMMI has been working to find suitable risk free or nearly risk-free rates based on robust and liquid underlying markets to complement the Euro Interbank Offered Rate (EURIBOR) and the Euro Overnight Index Average (EONIA), in line with regulatory recommendations put forward by the Financial Stability Board (FSB) among others.  The consultation closes to responses on 14 July 2017. EMMI, 15 June 2017

ISSA updates financial crime compliance principles for securities custody and settlement

The International Securities Services Association (ISSA) has published an updated version (dated May 2017) of its financial crime compliance principles for securities custody and settlement.  The principles provide practical guidance to custodians on the appropriate due diligence measures to fulfil one of the recommendations set out in the principles on client identification and beneficial ownership for the securities industry that were published by the International Organization of Securities Commissions (IOSCO) in 2004.

ISSA, 15 June 2017

ISDA speech on international and EU benchmarks

The International Swaps and Derivatives Association (ISDA) has published a speech by Scott O'Malia, ISDA Chief Executive, at an ISDA symposium on financial benchmarks.  The speech comments on ISDA's involvement in a number of alternative risk-free rate working groups in the UK, US and Japan.  ISDA is also working with industry and regulators to address areas of uncertainty and prepare for compliance with the Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (Regulation (EU) 2016/1011) (Benchmarks Regulation or BMR) from January 2018.

ISDA, 15 June 2017