BANKING

PRA update on banks' Brexit preparations

An article has been published on Reuters.com reporting on comments by Sam Woods, Chief Executive officer of the PRA, on banks' preparations for Brexit. Mr Woods reported that the PRA expects 130 financial firms from across the EU to apply for authorisation to continue to carry on investment business in the UK after Brexit. He also commented that the PRA will have to decide by Christmas 2017 if EU branches located in London will have to convert into subsidiaries and be directly supervised by the PRA.

PRA, 27 September 2017

 

PRA supervisory statement on compliance with EBA guidelines on disclosure on composition of collateral for exposures to CCR

The PRA has issued a supervisory statement on compliance with the EBA's guidelines on disclosure in relation to the composition of collateral for exposures to counterparty credit risk (CCR) (SS6/17). SS6/17 sets out a waiver for the requirement to disclose template "EU CCR5-B – Composition of Collateral for exposures to CCR" (CCR5 B) in the EBA’s Guidelines on disclosure requirements under Part 8 of the Capital Requirements Regulation (Regulation 573/2013) (CRR) (EBA Guidelines).

PRA, 27 September 2017

 

ECON draft report on proposed Regulation on CCP recovery and resolution

The European Parliament's Committee on Economic and Monetary Affairs (ECON) has published its draft report on the proposed Regulation on the recovery and resolution of central counterparties (CCPs). The explanatory memorandum to the report states that ECON's amendments improve the legal protection for the relevant resolution authority if a decision is taken to accelerate the move from recovery of a CCP to its resolution.

ECON, 27 September 2017

 

Law Commission’s draft Goods Mortgages Bill seeks to protect purchasers

The Law Commission has published a full version of the draft Goods Mortgages Bill, together with a document setting out its response to its July 2017 consultation and an update on the changes it has made to the draft Bill since then. At the same time, HM Treasury, the sponsoring department, has launched a short, targeted consultation asking stakeholders about their support for the aims of the Bill, and its suitability for the Law Commission’s special parliamentary procedure for uncontroversial bills. The consultation also sets out the government’s proposals for how goods mortgages should be registered. Feedback on the HM Treasury consultation is sought by 13 October 2017.

Law Commission, 27 September 2017

 

PSR head of policy discusses innovation, the PSF, PSD2 and Open Banking

Unprecedented technological change, customer willingness to try new options, and the government and regulatory desire to do things differently are creating a perfect storm to transform UK payments, the head of policy at the Payment Systems Regulator (PSR), Paul Smith, has said. Mr Smith discussed the establishment and strategy of the Payments Strategy Forum (PSF), the new payments architecture, the Payment Services Directive (PSD2), and Open Banking, saying that a joined-up, collaborative approach across the sector was key.

PSR, 27 September 2017

 

PRA update on forecast capital data

The PRA has updated its webpage on reporting requirements for CRD firms to include information on its requirements relating to forecast capital data (known as Capital+). The requirements, which were previously set out in a November 2016 policy statement (PS32/16), come into effect on 1 October 2017.

PRA, 27 September 2017

 

ECB chair on the need for consolidation in the European banking sector

The chair of the supervisory board of the European Central Bank (ECB), Danièle Nouy, has warned that when the banking sector grows too large, an economy can become ‘overbanked’, causing serious harm to the health of the banks and the entire economy, and encouraged banks to look towards mergers as a way out of their present difficulties.

ECB, 27 September 2017

 

ECB guideline amending guideline on TARGET2

The European Central Bank (ECB) has published a guideline amending guideline ECB/2012/27 on a trans-European automated real-time gross settlement express transfer system (TARGET2) (ECB/2017/28). The amending guideline clarifies certain aspects of guideline ECB/2012/27 following completion of the TARGET2-Securities (T2S) migration plan in September 2017 and implementation of a new ancillary system settlement procedure.

ECB, 27 September 2017

 

INVESTMENTS AND FUNDS

LEI ROC consults on funds relationships in global legal entity identifier system

The Regulatory Oversight Committee (ROC) of the Legal Entity Identifier (LEI) has published a consultation on funds relationships in the global LEI system (GLEIS). In the consultation document, the ROC proposes a limited update to the way in which the relationships that funds have with other entities are recorded in the GLEIS. Its proposals are aimed at capturing at a global level a fund's relationship with its management entity, regardless of the different legal and accounting frameworks, and improving the way in which funds relationships are recorded.

ROC, 27 September 2017