This week has seen the British Bankers' Association's proposal to standardise bank account opening procedures. In other news, the FCA has updated its consumer credit information sheets.

REGULATORY

UK

Alasdair Smith speech on the expected impact of the CMA’s banking investigation

The Competition and Markets Authority has published a speech given by Alasdair Smith, CMA Inquiry Chair, at the Beesley Lectures.

Competition and Markets Authority, October 2016

CML - Gross mortgage lending reaches £20.5 billion in September

The Council of Mortgage Lenders has estimated that gross mortgage lending reached £20.5 billion in September, 7% lower than August and 2% higher than September 2015.

Council of Mortgage Lenders, October 2016

PSR announces membership for new Payment System Operator Delivery Group

The Payment Systems Regulator has announced the membership of a Payment System Operator (PSO) Delivery Group to oversee the proposed consolidation of Bacs, Faster Payments Service and Cheque and Credit Clearing Company.

The Payment Systems Regulator, 21 October 2016

Treasury Committee publishes exchange of letters with HM Treasury concerning proposed amendments to bank ring-fencing rules

The House of Commons Treasury Select Committee has published an exchange of letters with HM Treasury concerning the set of amendments to the bank ring-fencing rules.

UK Parliament, 20 October 2016

British Bankers' Association proposal to standardise bank account opening procedures

The CMA has published a proposal of the British Bankers' Association to standardise bank account opening procedures. This forms part of the remedies proposed by the CMA's retail banking market investigation final report.

CMA, 19 October 2016

FCA thematic review findings into packaged bank accounts

The FCA has published the findings (TR16/18) from its thematic review into packaged bank accounts.  FCA, October 2016

CMA consultation on retail banking service quality indicators

The CMA has published a consultation on proposed retail banking service quality indicators. These form part of the remedies proposed in the CMA's retail banking market investigation final report. Comments are to be made by 31 October 2016.

CMA, 19 October 2016

BoE speeches published on financial services reform

The Bank of England has published two speeches on reforming culture and behaviour in the financial services industry.

  • speech by Minouche Shafik, Deputy Governor, Markets and Banking on reversing the tide of misconduct in global financial markets.
  • speech by James Proudman, Executive Director, UK Deposit Takers Supervision on financial institutions and culture.

The Bank of England, October 2016

Mortgage payment shortfall remediation guidance: FCA consults

A guidance consultation has been published by the FCA which looks at the fair treatment of mortgage customers in payment shortfall and the impact of automatic capitalisation. The consultation GC16/6 sets out a proposed remediation framework for customers who have suffered because of automatic capitalisation of payment shortfalls and comments can be made until 18 January 2017. A further press release states that the financial impact for most customers will have been relatively small, and the FCA intends to monitor firms' behaviour in determining whether customers have been affected.

FCA, 19 October 2016

Feedback on Pillar 2 liquidity consultation from PRA

A statement on feedback received from the May 2016 consultation paper on Pillar 2 liquidity has been published by the PRA. This does not provide final policy proposals but summarises the main areas to be addressed further, as identified by respondents. These include:

  • Level of application
  • Debt buyback risk
  • Early termination of non-margined derivatives
  • Intraday liquidity

A further consultation is expected in mid-2017 and this will include a cost benefit analysis.

PRA, 18 October 2016

Consumer credit information sheets updated by FCA

The FCA has announced on its webpage that it has updated consumer credit information sheets on the following areas:

Firms will be expected to use the new versions from 18 January 2017.

FCA, 18 October 2016

Market study on investment and corporate banking market published with consultation on proposed prohibition of restrictive clauses

The FCA has published its final report on its market study on the UK investment and corporate banking market. This follows an interim report which was published in April 2016 and draws similar conclusions. A further consultation on the proposed prohibition of restrictive clauses identified in the study has also been published, with a closing date of 16 December 2017 for responses.

FCA, 18 October 2016

EU

EPC publishes response to EBA consultation on RTS specifying the requirement on strong customer authentication and secure communication under PSD2

The European Payments Council has published its response to the EBA's consultation on draft regulatory technical standards (RTS) on strong customer authentication and common and secure communication under the Directive on payment services in the internal market.

European Payments Council, 21 October 2016

EBA guidelines on stress tests of deposit guarantee schemes

The EBA has published the final translations of guidelines on stress tests of deposit guarantee schemes.

EBA, 20 October 2016

UK financial services after Brexit – Open Europe report

Open Europe has published a report looking at how the current financial services ‘passport’ operates in reality and its relative importance to different financial sectors. It also considers how UK firms could continue to access European markets if the UK decides not to stay in the single market.

Open Europe, 17 October 2016