BANKING

New FCA webpage on cyber resilience

The FCA has published a new webpage on cyber resilience.  The FCA notes that cyber risks pose a threat to all financial services firms. Firms should be aware of the threat, able to defend themselves effectively, and respond proportionately to cyber events.

The FCA's goal is to help firms become more resilient to cyber attacks, while ensuring that consumers are protected and market integrity is upheld.

FCA, 18 May 2017

FCA Regulation round-up

The FCA has published its May 2017 Regulation round-up.

FCA, 18 May 2017

ECB speech on developing European payment landscape

The European Central Bank (ECB) has published a speech by Yves Mersch, ECB executive board member, on developing the European payment landscape.  In his speech, Mr Mersch focuses on instant payments and payment initiation services

ECB, 18 May 2017

EBA consults on draft recommendations on outsourcing to cloud service providers

The EBA has published a consultation paper setting out draft recommendations on outsourcing to cloud service providers (EBA/CP/2017/16).

The recommendations address five key areas: security of data and systems, location of data and data processing, audit and access rights, 'chain' outsourcing, and contingency plans and exit strategies.

The consultation closes to responses on 18 August 2017. The EBA is holding a public hearing on the consultation on 20 June 2017.

EBA, 17 May 2017

INSURANCE

Implementing Regulation on technical information for calculation of technical provisions and basic own funds for Q2 2017 reporting under Solvency II published in OJ

Commission Implementing Regulation (EU) 2017/812 laying down technical information for calculation of technical provisions and basic own funds for reporting with reference dates from 31 March 2017 to 29 June 2017 under the Solvency II Directive (2009/138/EC) has been published in the Official Journal of the EU.

The Commission adopted the Implementing Regulation on 15 May 2017. It enters into force on 19 May 2017 (the day after publication in the OJ). It applies from 31 March 2017 (that is, the first reporting reference date to which the Implementing Regulation applies).

EU, 18 May 2017

ABI and Insurance Europe comments on the new IFRS17 accounting standard

The ABI and Insurance Europe have both commented on the new IFRS 17 Insurance Contracts insurance standard which was published by the IASB, noting that this will significantly change how insurers report their financial results from 2021. ABI, Insurance European 18 May 2017

Second EU-wide occupational pensions stress test

EIOPA has launched its second EU-wide occupational pensions stress test which covers both Denfined Benefit and hydbrid as well as Defined Contribution plans, and inclues all European Economic Area countries with material IORP sectors, exceeding €500m in assets.

The deadline for participating IORPs (Institutions for Occupational Retirement Provision) to complete the exercise is 13 July 2017.

EIOPA, 18 May 2017

INVESTMENTS AND FUNDS

Findings from FCA review into market for pensions and investment advice

The FCA has published a report setting out the findings from its review into the market for pensions and investment advice. The review was launched in April 2016.  The FCA found the overall results positive, with the sector providing suitable advice for 93.1% of cases and acceptable disclosure in 52.9% of cases.  The FCA identified concerns relating to matters including risk profiling, replacement business, and initial disclosure.

The FCA intends to provide more information on its review over the course of 2017 and into 2019, and repeat its review in 2019 based on advice delivered in 2018.

FCA, 18 May 2017

IOSCO summary of key challenges facing securities markets

The International Organization of Securities Commissions (IOSCO) has published a summary of its recent member discussions on the key challenges facing securities markets.  Areas discussed included asset management, derivatives markets, CCP resilience and recovery, financial benchmarks, and determining the role of regulation in FinTech and automation.

IOSCO, 18 May 2017

ESMA follow-up report to peer review of NCA supervisory practices on MiFID investor information

ESMA has published a follow-up report (ESMA42-113-627) to its peer review on how national competent authorities (NCAs) supervise conduct of business rules on providing fair, clear and not misleading information to clients under the Markets in Financial Instruments Directive (2004/39/EC) (MiFID).

Generally, ESMA welcomes the efforts made by most NCAs in addressing deficiencies identified in the 2014 peer review. An accompanying press release states that the NCAs from Lithuania, Latvia, Malta, Poland, Portugal and Romania have addressed all of the deficiencies that were previously identified. For the remaining four NCAs, one (Denmark, Estonia, Greece) or more (Cyprus) deficiencies remain, although significant efforts have been made by Cyprus and Greece.

ESMA, 18 May 2017