Andrew Bailey speaks at City Banquet: Andrew Bailey's speech at the City Banquet struck a note of cautious optimism for financial markets and regulation, after 18 months of regulation under PRA and FCA. He said he is pleased about banks' capital situation and the changes in the annuities market. However, he said priorities for further investigation are:

  • the capital framework for banks: he stressed this is distinct from the capital position and said none of the three aspects of regulation is sufficient, either alone or together, properly to supervise a bank. He said regulators will be looking carefully at banking models and working to understand them;
  • Solvency 2: again, the focus is on proper supervision and not becoming a slave to models;
  • conduct or misconduct: he said he is fully supportive of FCA's work, and highlighted risks in poor compliance with financial sanctions and anti-money laundering requirements; and
  • incentives.

(Source: Andrew Bailey Speaks at City Banquet)

PRA publishes Solvency 2 timetable: PRA has published a letter setting out progress insurers have made towards Solvency 2 compliance, and a timetable for its planned future publications. (Source: PRA Publishes Solvency 2 Timetable)