BANKING

Briefing on third country equivalence in EU banking legislation from European Parliament

briefing has been published by the European Parliament, focusing on the difference between passporting rights and third-country equivalence rights. The briefing also includes reference to the impact of Brexit and the annex sets out equivalence decisions adopted by the EC.

European Parliament, 08 November 2016

MREL: statement of policy from BoE and supervisory statement from PRA

The Bank of England has published the final version of its policy statement relating to its approach to establishing minimum requirement for own funds and eligible liabilities. Alongside this, the PRA has publishes PS30/16, the final version of a supervisory statement on the interaction between MREL and buffers and threshold conditions. Firms are now required to meet interim MREL requirements by 1 January 2020 and the full requirements by 1 January 2022.

Bank of England and PRA, 08 November 2016

Immigration Act 2014 Regulations bring new obligations for banks and building societies

The Immigration Act 2014 (Current Accounts) (Compliance etc) Regulations 2016 (SI 2016/1073) were laid before Parliament on 8th November. The Regulations require checks of current accounts by banks and building societies for the purposes of the statutory regime governing immigration, and come into force on 30 October 2017. The FCA does not intend to provide guidance or further rules, according to the explanatory memorandum published alongside the Regulations, but will signpost firms to additional sources of information available. 

Legislation.gov.uk, 08 November 2016

Consultation on RTS and ITS on authorisation of credit institutions under CRD IV published by EBA

The EBA has published a consultation paper on RTS and ITS relating to the information to be provided to competent authorities for the authorisation of credit institutions under the CRD IV Directive. The deadline for responses is 8 February 2017.

EBA, 08 November 2016

Responses to post-Brexit questions: letter from FCA CEO

letter has been published, written by FCA Chief Executive Andrew Tyrie, to the Treasury Committee Chair, giving further details on questions raised at a committee hearing with the FCA on 20 July 2016. Issues covered include:

  • Assessment of the regulatory landscape post-Brexit, relating to financial services
  • The role of passporting
  • The main elements of an optimal future framework
  • The potential advantages of removing passporting requirements
  • Practicalities of improving global standards of regulation

House of Commons Treasury Committee, 08 November 2016

INVESTMENTS AND FUNDS

Call for evidence on pension funds and social investment

The Law Commission has published a call for evidence relating to pension funds and social investment. This is part of the government's plan to support social investment as a way to access private investment funds and support charities and enterprises with a social mission. 

Law Commission, 08 November 2016

Consultation on other CRD products

consultation has been published on OCPs, which considers how market participants use non-traditional products and services in making investment decisions. The report provides feedback from two survey questionnaires published by the IOSCO in 2015, and summarises the main observations as follows:

  • Some OCPs share common processes and features with traditional credit ratings
  • CRAs tend to create separate structures to offer OCPs
  • OCPs can be categorised in six primary groups

The deadline for comments is 5 December 2016.

The International Organization of Securities Commissions, 08 November 2016