PRA policy statement on 2017/18 management expenses levy limit for FSCS

PRA has published a policy statement on the Financial Services Compensation Scheme (FSCS) management expenses levy limit (MELL) for 2017/18. (PS6/17). In PS6/17, the PRA sets out the final rules on the MELL for 2017/18, which will be £74.54 million. It will apply from 1 April 2017 (the start of the FSCS' financial year) to 31 March 2018. Appendix 1 to PS6/17 contains the PRA rulebook instrument making the necessary amendments to the FSCS Management Expenses Levy Limit and Base Costs Part: the FSCS Management Expenses Levy Limit and Base Costs Instrument 2017 (PRA 2017/13). PRA, 31 March 2017 National Audit Office report on vulnerable consumers in regulated industries

National Audit Office (NAO) have published a report on vulnerable consumers in regulated industries. The NAO has found that regulators in the financial services, water, energy and telecommunications sectors could do more to support the increasing number of vulnerable consumers. Consumers in the UK spend around £136 billion annually on services in water, energy, telecoms and financial services, which are essential to security, well-being, and social inclusion. A significant and increasing number of these consumers have conditions or circumstances which make them potentially vulnerable, often in multiple sectors. Regulators have improved their understanding of vulnerability, and have made some progress in working with their industries to improve support for vulnerable consumers. However, some of the biggest challenges for vulnerable consumers relate to access, affordability and debt, which regulators alone have limited powers to solve.

Regulatory interventions often have limited impact, and the lack of clarity between the responsibilities of regulators and government can mean that systemic issues are not addressed. The NAO stated that until regulators and government work together to clearly define roles and objectives, and prioritise the highest impact interventions, the overall arrangements in place to support vulnerable consumers will not be value for money. The NAO made a number of recommendations, including recommending that regulators develop clear aims, objectives and progress indicators for their support for vulnerable consumers, that regulators build on work to monitor outcomes for a wide range of customers by developing better information on the cost to firms of different initiatives to support vulnerable consumers and that regulators should work together more closely to identify and address common challenges. NAO, 31 March 2017 FCA Handbook Notice 42 FCA has published Handbook Notice 42, which sets out the changes made to the FCA Handbook under instruments made by the Financial Ombudsman Service (FOS) Board on 15 March 2017 and by the FCA Board on 30 March 2017. FCA, 31 March 2017 FOS confirms plans and budget for 2017/18 and summarises feedback from consultation

Financial Ombudsman Service (FOS) has published its plans and budget for 2017/18. FOS, 31 March 2017 PSR final terms of reference for review of payment system operators' role in preventing push payment scams

The Payment Systems Regulator has published the final terms of reference (ToR) for its review of the role of payment system operators (PSOs) in preventing and responding to authorised push payment (APP) scams. PSR, 30 March 2017 FCA speech on current concerns for consumer credit market

The FCA has published a speech by Jonathan Davidson, FCA Director of Supervision: retail and authorisations, on the FCA's view on current issues affecting the consumer credit market. The speech covers the FCA's planned initiatives relating to these concerns. FCA, 30 March 2017 Monetary penalties for breach of financial sanctions in Part 8 of the Policing and Crime Act 2017 in force from 1 April 2017

Under the Policing and Crime Act 2017 (PCA 2017) the Office of Financial Sanctions Implementation (OFSI) has the power to impose monetary penalties for breach of financial sanctions. The Policing and Crime Act 2017 (Commencement No.2) Regulations 2017 brings the remaining sections of Part 8 of the PCA 2017 into force from 1 April 2017., 29 March 2017 LSB publishes new Standards of Lending Practice for business customers

The Lending Standards Board (LSB) has published new Standards of Lending Practice (SLP) for business customers. The SLP replace the micro-enterprise provisions of the Lending Code and relate to product information, product sale, declined applications, product execution, credit monitoring, financial difficulty, portfolio management, vulnerability, governance and oversight. The SLP will apply from 1 July 2017. Until then, the relevant provisions of the current Lending Code continues to apply. LSB, 28 March 2017 BCBS fourth progress report on banks' implementation of principles for effective risk data aggregation and reporting

The Basel Committee on Banking Supervision (BCBS) has issued its fourth progress report on banks' implementation of its principles for effective risk data aggregation and reporting. The principles, which became effective in January 2016, aim to strengthen banks' risk data aggregation and risk reporting practices to improve their risk management practices, decision-making processes and resolvability. They are applicable to firms designated as global systemically important banks. BCBS, 28 March 2017 Treasury Committee letter on FCA proposals to address risk of contactless payment fraud

The Treasury committee has published a letter on the issue of contactless payment fraud, from John Griffith-Jones, FCA Chair, to Andrew Tyrie, Chairman of the Treasury Committee. In the letter, the FCA explains that contactless card fraud accounts for just under 0.036% of transactions by value; the FCA accepts that while these figures suggest the risk to consumers is low, action is needed to maintain public confidence. FCA, 2 February 2017



IOSCO approves enhanced multilateral memorandum of understanding

International Organization of Securities Commissions (IOSCO) has published a press release announcing that its members have approved an enhanced multilateral memorandum of understanding concerning consultation and co-operation and the exchange of information (EMMoU). The EMMoU reflects developments in the securities markets since 2002, such as technology advances and a significant increase in globalisation and the interconnectedness of financial markets. IOSCO, 31 March 2017