BANKING

FCA and PRA consult on amendments to notes for completing MLAR

The FCA and the PRA have consulted jointly on amendments to the notes for completing the mortgage lenders and administrators return (MLAR) and have published these in a joint consultation paper. The paper proposes updating:

  • The PRA's notes to MLAR, which are set out in Appendix 1
  • The notes for completion of the MLAR in the FCA's supervision manual (SUP), set out in Appendix 2
  • The MLA-D1 form for reporting second charge lending, also in SUP

FCA and PRA, 12 December 2016

FCA launches market study on competition in the mortgage sector

The FCA has launched a market study to consider whether competition in the market sector can be improved to benefit consumers. The FCA want to understand whether consumers are empowered to choose on an informed basis between products and services and are in a position to understand whether these represent good value for money. In line with this, the FCA has published the terms of reference for their mortgages market study.

FCA, 12 December 2016

BSA comments on the FCA launch of a market study on competition in the mortgage sector

The BSA welcomes the FCA’s open and collaborative approach in the run up to the Mortgages Market Study. The regulator has clearly listened to the feedback provided by the mortgage industry in its call for inputs earlier this year, particularly in relation to the increase in the number of borrowers who approach intermediaries for their mortgage borrowing needs. BSA, 12 December 2016

PRA consults on IRFS 9 and changes to reporting requirements

The PRA has issued a consultation paper on proposed changes to regulatory reporting requirements arising from the introduction of International Financial Reporting Standard 9 on 1 January 2018.

PRA, 12 December 2016

PRA policy statement to July 2016 occasional paper

The PRA has issued a policy statement setting out its response to feedback received on proposals in its July 2016 occasional paper. The PRA has made some minor adjustments to the rules consulted on in the occasional paper. The final rules are set out in the following:

In addition the PRA has updated a supervisory statement, relating to their approach to supervising liquidity and funding risks.

PRA, 12 December 2016

Financial statements and updated supervisory statement on guidelines for completing regulatory reports

In a policy statement issued by the PRA which provides feedback on responses to its proposals on financial statements (that is, balance sheet and statement of profit or loss (P&L)) that were set out in chapter 3 of its April 2016 consultation paper on regulatory reporting of financial statements, forecast capital data and International Financial Reporting Standard 9 (IFRS 9) requirements (CP17/16) PRA, 12 December 2016

FSB Regional Consultative Group for the Americas discusses fintech, correspondent banking and regional vulnerabilities

Members of the group discussed regional macroeconomic and financial market developments, and key financial stability issues in the region, including possible policy responses to these developments. A discussion took place on the impact of the low interest rate environment on financial stability, including the impact on bank profitability and possible spillovers for emerging market and developing economies. FSB, 12 December 2016

ECB contribution to the EC consultation on review of the EU macro-prudential policy framework

The European Central Bank (ECB) has published its response to the European Commission's consultation on its review of the EU macro-prudential framework, the ECB sets outs its views on issues including:

  • Banking Union
  • Relationship between macro and micro-prudential authorities'
  • Macro-prudential toolkit
  • Co-ordination between authorities
  • Reciprocity arrangements

ECB, 12 December 2016

European Parliament briefing on Brexit and financial services

The European Parliament has published a briefing on how Brexit has impacted the financial services industry. The briefing provides an overview of the industry and its connections with the other 27 EU member states. It considers the potential impact of Brexit on the following sectors:

  • Banking (covering wholesale banking, retail banking and private banking and wealth management)
  • Asset management
  • Insurance and reinsurance
  • Market infrastructure
  • Other professional services

European Parliament, 9 December 2016

INSURANCE

EIOPA Publishes Guidelines on Facilitating an Effective Dialogue between Insurance Supervisors and Statutory Auditors

EIOPA has published guidelines on facilitating an effective dialogue between insurance supervisors and statutory auditors. They follow a public consultation launched by EIOPA on 1 February 2016 on draft guidelines on facilitating an effective dialogue between competent authorities supervising insurance undertakings, statutory auditors and the audit firms carrying out the statutory audit of those undertakings that were adopted by the Board of Supervisors. The scope of the guidelines is explicitly determined by the Audit Regulation. EIOPA, 12 December 2016

INVESTMENTS AND FUNDS 

Sixth Implementing Regulation extending transitional periods related to own fund requirements for CCP exposures published in OJ

The European Commission Implementing Regulation on the extension of the transitional periods related to own funds requirements for exposures to central counterparties (CCPs), set out in the Capital Requirements Regulation (CRR) and EMIR, and have been published in the OJ.

Official Journal of the EU, 10 December 2016