BANKING

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

Methodology for assessing implementation of key attributes of effective resolution regimes for financial institutions published by FSB

The Financial Stability Board has published its methodology for assessing the implementation of key attributes of effective resolution of regimes for financial institutions in the banking sector. FSB Key Attributes were first adopted in October 2011, and the methodology is intended to promote consistency and as stated in an accompanying press release, the FSB sees this as the first step in implementing a modular approach. Post-consultation revisions have also been published following consultation on a draft version in August 2013.

FSB, 19 October 2016

BCBS regulatory framework progress report for October 2016

The BCBS has published its eleventh progress report on adoption of the Basel III framework up to the end of September 2016. The report is based on information provided by BCBS members as part of its regulatory consistency assessment programme.

BCBS, 19 October 2016

INSURANCE

PRIIPS Regulation postponement requested by trade associations

The JAC on Retail Structured Products has published a letter sent to the European Commission, ESMA, EIOPA and the EBA asking for a postponement to the application of KIDS for PRIIPs. The PRIIPs Regulation is due to apply from 31 December 2016 but as yet there is no agreed form of technical standards and in the JAC's opinion the only viable option to safeguard the interests of retail investors is to postpone application, by one year to 3 January 2018.

Joint Associations Committee, 18 October 2016

INVESTMENTS AND FUNDS

Report from the European Commission on CRA Regulation

report has been published by the European Commission, responding to reporting obligations set out under the CRA Regulation. This report gives:

  • Analysis of references to external credit ratings in EU legislation and private contracts in financial markets
  • Assessment of the impact and effectiveness of the CRA Regulation's measures relating to competitiveness
  • Evaluation of the impact of CRA Regulation on governance and internal processes
  • Analysis of provisions relating to SFIs and potential extension to other asset classes
  • Consideration of the feasibility of establishing a European CRA for the assessment of sovereign debt and a European credit rating foundation for all other credit ratings

European Commission, 19 October 2016

Delegated Regulation on RTS on minimum details of data reporting to trade repositories adopted

The European Commission has adopted a Delegated Regulation supplementing EMIR as regards to regulatory technical standards on the minimum details of the data to be reported to trade repositories. This updates existing standards published in February 2013 and aims to clarify data fields, adapt fields to prescribed reporting logic and introduce new fields and values to reflect market practice. An Annex has also been published, setting out the counterparty data and common data details to be reported.

European Commission, 19 October 2016