BANKING

ESRB reports on financial stability implications of IFRS 9

The European Systemic Risk Board (ESRB) has published a report on the financial stability implications of IFRS 9 which analyses two main aspects of IFRS 9 from a macro-prudential angle. The report focuses on the position of banks: the new approach to the classification and measurement of financial assets and the new expected credit loss (ECL) approach for measuring impairment allowances. IFRS 9 (Financial Instruments) was adopted in the EU in November 2016 for mandatory application from 1 January 2018 onwards. ESRB, 17 July 2017

 

Financial Services Consumer Panel position paper on consumers and competition

The Financial Services Consumer Panel (FSCP) published a position paper and press release on consumers and competition: how to deliver more effective consumer power in retail financial markets. The FSCP has examined how far competition authorities can reasonably expect consumers to drive competition, and what alternatives are available. FCSP, July 2017

 

INVESTMENTS AND FUNDS

FCA: terms of reference for investment platforms market study published

The FCA has published the terms of reference of its market study to examine the investment platform market, setting out the scope of the study and the topics the FCA will explore. Promoting effective competition in the interests of consumers is one of the FCA's statutory objectives. This covers promoting the development of financial services markets in which customers are offered good value products and services that meet their needs. Topics the market study will include are: barriers to entry and expansion; commercial relationships; business models and platform profitability; the impact of advisers; and customer preferences and behaviour. A press release has also been issued. FCA, 17 July 2017

ESMA publishes procedure and template for NCAs to report circuit breakers' parameters

The ESMA has published a document on the reporting of circuit breakers' parameters by national competent authorities (NCAs) to ESMA. The report outlines a common procedure and template for NCAs to report to it the parameters to halt or constrain trading used by trading venues under their jurisdiction. The second paragraph of Article 48(5) determines that member states must ensure that a regulated market reports the parameters for halting trading and any material changes to those parameters to the relevant NCA in a consistent and comparable manner, and that the NCA in turn reports them to ESMA. ESMA, July 2017

New FCA MiFID II passporting forms

The FCA has published a new webpage on passporting under the MiFID II Directive (2014/65/EU). The webpage contains links to the following forms:

  • Branch passport - notice of intention to establish a branch or change branch particulars in another EEA state
  • Service passport - notice of intention to provide cross border services and activities in another EEA state
  • MTF/ OTF notification - notice of intention to provide arrangements to facilitate the access to a multilateral trading facility (MTF) or an organised trading facility (OTF) from another EEA state.
  • Tied agent notification - notice of intention to use a tied agent established in another EEA state or to amend the details of a tied agent established in another EEA state

FCA, 17 July 2017

 

FCA updates webpage on data reporting services providers under MiFID II

The FCA has updated its webpage on data reporting services providers (DRSPs). On 3 July 2017, the UK legislation relating to DRSP authorisation and verification applications came into force and the FCA is now able to accept formal applications from entities wishing to provide DRSs. The webpage contains a list of all the DRSP authorisation and supervision forms. FCA, 17 July 2017