BANKING

FSCP position paper specifying reasonable duty of care

The Financial Services Consumer Panel (FSCP) has published a position paper proposing amending the Financial Services and Markets Act 2000 to require the FCA to make rules specifying what constitutes a reasonable duty of care that financial services providers should owe to their customers. FSCP, 26 January 2017

MoU between FCA and HMRC on exchange of information

The FCA has published a memorandum of understanding with HM Revenue & Customs relating to the overall exchange of information between HMRC and FCA and does not replace certain "process level" MoUs that cover agreements relating to one or more specific information exchanges. FCA, 26 January 2017

PSR clarifies regulatory fees timetable

The Payment Systems Regulator (PSR) has published a note clarifying an inconsistency between the fees rules, specified in the FCA's Fees manual (FEES 9.2.2R), and the timetable for collecting fees set out in its consultation on regulatory fees.  The PSR confirms that the due date for on-account fees remains 15 March 2017 as specified in the Fees manual, with operators to pay the collected fees on to it by 1 April 2017. PSR, 26 January 2017

BCBS FAQs on market risk capital requirements

The Basel Committee on Banking Supervision (BCBS) has published its first set of responses to frequently asked questions on market risk capital requirements (BCBS395). BCBS, 26 January 2017

BIS speech on digital finance

The Bank for International Settlements (BIS) has published a speech by Jens Weidmann, Deutsche Bundesbank President and BIS Chair, on digital finance.  Dr Weidmann gave his speech at the G20 conference on "Digitising finance, financial inclusion and financial literacy". The conference's keynote speech, on FinTech developments, was given by Mark Carney, Bank of England Governor and FSB Chair. BIS, 26 January 2017

FCA speech on free trade in financial services

The FCA has published a speech by its Chief Executive Andrew Bailey, given at the Economic Council Financial Markets Policy Conference.  The speech argues that post-crisis regulatory standards are not weak, and instead represent progress towards simplification by reducing the number of national standards, and that the use of global standards does not require jurisdiction to be given to the courts or regulators of one country over those of another in the home market of the latter. FCA, 26 January 2017

FCA Handbook Notice 40

The FCA has published Handbook Notice 40 which sets out the changes made to the FCA Handbook under the following instruments, which were made by the FCA Board on 25 January 2017: 

  • Handbook Administration (No 44) Instrument 2017 (FCA 2017/1)
  • Conduct of Business (Lifetime Mortgages) Instrument 2017 (FCA 2017/2)
  • Alternative Investment Fund Managers Directive (Reporting) Instrument 2017 (FCA 2017/3)
  • Decision Procedure and Penalties Manual and Enforcement Guide Instrument 2017 (FCA 2017/4)

FCA, 26 January 2017

FCA Regulation round-up January 2017

The FCA has published its monthly email to all regulated firms. FCA, 26 January 2017

BAWAG PSK Bank für Arbeit and others v Verein für Konsumenteninformation

The Court of Justice of the EU (ECJ) has published its judgment in BAWAG PSK Bank für Arbeit and others v Verein für Konsumenteninformation (Case C-375/15) [2017] ECLI:EU:C:2017:38.

The judgment responds to a request for a preliminary ruling from the Oberster Gerichtshof (Austrian Supreme Court) concerning the interpretation of articles 36(1) and 41(1) of the Payment Services Directive (Directive 2007/64/EC) (PSD), as to whether information given by the bank to its customers through an ebanking mailbox is "provided" (as opposed to merely being "made available") through a "durable medium" for the purposes of the PSD.

The response from the court was that information transmitted to the user of services through the electronic mailbox of an online internet banking website may not be considered to have been provided on a durable medium unless certain conditions have been met. ECJ, 25 January 2017

 

CML mortgage lending data

The Council of Mortgage Lenders has published Q4 2016 mortgage lending data; gross mortgage lending increased by 12% in 2016. CML, 26 January 2017

INSURANCE

EIOPA Chair speech on challenges and opportunities in the digital era

EIOPA has published a speech by Gabriel Bernardino, EIOPA Chair, on the future of the European insurance industry in a digital era.  The speech highlights that during 2017, EIOPA will organise a series of roundtables dedicated to InsurTech. EIOPA, 26 January 2016 INVESTMENTS AND FUNDS ECB speech on the repo market

The European Central Bank has published a speech by Executive Board Member Yves Mersch at the GFF summit.  The speech notes that banks and other market participants are reporting a decrease in market making activities and collateral scarcity in repo-markets. ECB, 26 January 2017

WEALTH MANAGEMENT

Report criticises wealth management advice fees

A study compiled by Capital Asset Management entitled Fixing the broken model questions the wealth management advice fee, arguing that it ‘eats away at the money being invested but the real consequence is rarely seen, known, or understood by the investor.’ Wealth Manager, 27 January 2017