Brexit

Brexit – HoL EU Financial Affairs Sub-Committee call for evidence into post-Brexit financial regulation and supervision

On 24 July, the HoL EU Financial Affairs Sub-Committee published a call for evidence announcing it is launching an inquiry into financial regulation and supervision following Brexit. The call for evidence explains that, in view of the present uncertain context, it is important to gain a clear picture of the UK's current regulatory regime, with a view to understanding how EU rules will be embedded in the European Union (Withdrawal) Bill 2017-19, and whether any changes may be made to the current position in the near term. There are also outstanding questions concerning how the UK regulators will work with their EU counterparts in the future, and how the new domestic regime will be managed, in particular concerning the potential emergence of cross-border banking crises and the supervision of market infrastructure.

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Brexit – EP Brexit Steering Group statement on second round of Article 50 negotiations

On 25 July, the EP Brexit Steering Group met Michel Barnier, the EU's chief negotiator, and issued a statement following the second round of negotiations between the EU and the UK. The EP's Brexit Steering Group emphasised: (i) the importance of EU-UK negotiations making good progress on the detailed content of the Withdrawal Agreement quickly; (ii) that the EU will only start negotiating a new EU-UK relationship if sufficient progress has been achieved in the three main withdrawal areas: citizens’ rights, the financial settlement and the border issue on the island of Ireland; (iii) that "sufficient progress" means progress across the board, and not just in one or two areas. The EP will formally give its opinion on when that point has been reached; that the EP will give particular attention to protecting citizens’ rights and will continue to push for full rights for EU citizens in the UK as well as UK citizens in the EU; and that the EP wants the Withdrawal Agreement to be directly enforceable and to include a mechanism in which the Court of Justice of the EU can play its full role.

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Brexit – UK and EC joint technical notes on Second round of negotiations and EU-UK positions on citizen’s rights

On 21 July, The UK Department for Exiting the European Union and the EC published a joint technical note that summarises and compares the UK and EU positions on citizens' rights. This note identifies areas of convergence, areas of divergence and areas where further discussion or clarification is required.

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Capital markets and market infrastructure

FCA Chief Executive speech on future of LIBOR

On 27 July, the FCA published a speech by Andrew Bailey, FCA Chief Executive, on the future of LIBOR. The FCA has regulated LIBOR since April 2013. Significant improvements have been made to LIBOR by its administrator, ICE Benchmark Administration, and the work of the 20 panel banks that submit contributions to it. One of the aims of the reform process has been to try to anchor LIBOR submissions and rates to the greatest extent possible to actual transactions This change has been difficult to achieve because the underlying market that LIBOR seeks to measure (that is, the market for unsecured wholesale term lending to banks) is no longer sufficiently active. LIBOR is sustained by the use of "expert judgement" by the panel banks to form many of their submissions. The FCA has had extensive discussions in recent months with the panel banks that currently both sustain and rely on LIBOR, as well as central banks and regulatory authorities in other jurisdictions about the length of time required for an orderly transition away from the current widespread use of LIBOR. In relation to the latter question, it will be necessary to consider whether the better approach to transition would be to amend contracts to reference an alternative rate, or amend the definition of LIBOR through the fallback protocol to replace the current methodology with alternative reference rates. In June 2017, the FCA launched an exercise to gather market data from 49 banks to determine the most active "actual and potential" participants in unsecured wholesale bank borrowing and related markets.

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CMU – EC inception impact assessment on the prevention and amicable resolution of investment disputes within the single market

On 25 July, the EC published an inception impact assessment (Ares(2017)3735364) on the prevention and amicable resolution of investment disputes within the single market. The inception impact assessment (also called a roadmap) aims to improve the investment climate in the EU by providing dispute prevention tools and tools for the effective amicable resolution of intra-EU investment disputes with the help of an independent third party. It relates to the EC’s work on the CMU. The deadline for comments is 22 August.

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CMU – EC roadmap on interpretative communication on existing EU standards for treatment of cross-border intra-EU investments

On 25 July, the EC published a roadmap (dated 25 July) relating to an interpretative communication on the existing EU standards for the treatment of cross-border intra-EU investments (Ares(2017)3735326). In the roadmap, the EC explains that this initiative relates to priority action 8 in the mid-term review of the CMU action plan, which was published in June. As a result, the EC considers that greater clarity on investors' EU rights (called substantive EU standards of protection) would be useful for EU investors, national administrators, stakeholders and legal practitioners. This would provide greater transparency on the effective protection of EU investor rights in the single market, and create a more positive environment to attract investments. To meet these objectives, priority action 8 states that the EC will adopt an interpretative communication to provide guidance on existing EU rules for the treatment of cross-border EU investments. The EC explains that the interpretative communication will bring together and explain the existing substantive EU standards for the lawful treatment of cross-border EU investments. The EC advises that the content of the roadmap may change, and does not prejudge the EC’s final decision on whether this initiative will be pursued or the final content of the interpretative communication.

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Client asset protection

IOSCO final report on thematic review of implementation of client asset protection recommendations

On 27 July, IOSCO published the final report on its thematic review of the adoption of recommendations relating to the protection of client assets (FR16/17). The report identifies the implementation progress of 38 IOSCO members from 36 jurisdictions in adopting legislation, regulation and other policies relating to intermediaries holding client assets, addressed by the IOSCO principles for the protection of client assets. The report includes a detailed description of implementation on a principle-by-principle basis, and also sets out overarching themes, describing the differences in approaches and adoption measures taken by the participating jurisdictions.

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CASS – FCA policy statement on CASS 7A and the SAR review

On 25 July, the FCA published a policy statement on chapter 7A of the CASS and the SAR review (PS17/18). The policy statement summarises the feedback received by the FCA on its January consultation on changes to CASS. The FCA explains that: (i) rules allowing a firm, following a primary pooling event (PPE), to transfer the client money pool (CMP), in whole or in part to another entity providing certain conditions are met, are being introduced as consulted on; (ii) a new section in the custody rules setting out rules on the treatment of custody assets post-failure (CASS 6.7) is being introduced as consulted on; (iii) rules relating to post-transfer communications with clients are being implemented with some minor changes; (iv) the ability of a firm or its insolvency practitioner (IP) to use allocated but unclaimed (or declined) client money entitlements and unallocated client money towards a shortfall in the client money pool (CMP) after payment of costs in accordance with the statutory trust waterfall provision is being introduced as consulted on; (v) guidance on the post-administration client money reconciliation required under the SAR Regulations is being introduced with some minor amendments; (vi) it is not proceeding with its proposal on annotated client statements; (vii) the proposal to enable the FCA to place a requirement over client money without triggering a PPE event is being introduced as consulted on; (viii) the proposal to remove the breach of duty to notify the FCA that it is unable to comply with its record keeping requirements following a secondary pooling event from triggering a PPE event is being introduced as consulted on; (ix) rules relating to client money received by a firm after a PPE are being introduced as consulted on; and (x) it is not at this time proceeding with the proposals consulted on in the RTS under EMIR and the MiFIR because the RTS remain in a draft form.

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Conduct

SM&CR – FCA and PRA consultations on the extension of SM&CR

On 26 July, the FCA and PRA published the following consultation papers on the extension of the SM&CR to all firms authorised under FSMA: (i) Individual accountability: extending the SM&CR to all FCA firms (FCA CP17/25) together with a cost-benefit analysis for CP17/25 and CP17/26; (ii) Individual accountability: extending the SM&CR to insurers (FCA CP17/26); and (iii) Strengthening individual accountability in insurance: extension of SM&CR to insurers (PRA CP14/17). The proposals build on the SM&CR that has applied to banks, building societies, credit unions, PRA-designated investment firms (collectively relevant firms) and certain insurers (referred to as the senior insurance managers regime (SIMR)) since March 2016. The FCA currently regulates individuals outside of the scope of the SM&CR and SIMR through the approved persons regime. The new regime will essentially replace the approved persons regime. The aim of the new regime is to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence. The deadline for comments is 3 November. The FCA and PRA intend to publish policy statements, together with final rules, in 2018. HMT will set the implementation date for the extended regime, which is currently expected to be during 2018.

FCACP17/25

Cost benefit analysis

FCACP17/26

PRA14/17

FCA Handbook Notice 46

On 21 July 2017, the FCA published Handbook Notice 46, which sets out the changes made to the FCA Handbook under instruments made by the FCA Board on 30 June 2017, 6 July 2017 and 20 July 2017, and to be made by the FOS Board on 26 July 2017.

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Consumer/retail

UCPD – ECJ confirms that debt collection agency's activities are within scope for the UCPD

On 24 July, The ECJ in the case of UAB "Gelvora" v Valstybinė vartotojų teisių apsaugos tarnyba Case C-357/16, (20 July) confirmed that debt collection activities undertaken by a third party debt collection agency, to which a consumer's debt has been assigned, can be assessed under the Unfair Commercial Practices Directive (2005/29/EC) (UCPD). The UCPD is implemented in the UK by the Consumer Protection from Unfair Trading Regulations 2008 (SI 2008/1277). This decision confirms the approach taken by national authorities in a number of member states, as noted by the EC in its revised guidance on the UCPD, issued in 2016.

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Financial crime

AML – FCA guidance consultation on Office for Professional AML Supervision

On 24 July, the FCA published a guidance consultation on the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) (GC17/7). GC17/7 proposes text (set out at Appendix 1) for a specialist FCA sourcebook for professional body supervisors that sets out expectations in relation to AML supervision. The draft text provides details on the requirements for professional body supervisors in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) (Money Laundering Regulations 2017). It also draws on existing resources, such as the November 2016 European guidelines on risk-sensitive supervision and UK guidance agreed by Anti-Money Laundering Supervisors’ Forum members. The FCA has published a letter to relevant professional bodies that includes a description of the supervisory approach the FCA intends OPBAS to adopt once it is operational. OPDAS' approach will be to: develop a sound understanding of the workings of the different bodies and sectors they supervise; adopt a risk-based approach that concentrates its supervisory resources where the risk is greatest; and liaise with other bodies with oversight roles for the professions to share good practice and avoid supervisory conflicts. The deadline for comments is 23 October. The guidance is due to come into effect on 1 January 2018. The FCA will consult on an approach to levying fees from professional body supervisors in autumn 2017 (as part of the FCA's usual consultation on fees).

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Insurance

IDD – FCA second consultation paper on implementation

On 24 July, the FCA published its second consultation paper on implementing the IDD. The FCA published its first consultation paper on IDD implementation, CP17/7, in March. In CP17/23, the FCA sets out further proposals on how it plans to implement the IDD. The deadline for comments is 20 October. The FCA will consider all feedback and aims to publish a summary of responses received and a policy statement in December. The FCA intends to publish a third consultation paper, in late September, on its remaining proposals for IDD implementation. This will include proposals to reflect the level 2 IDD delegated acts in the Handbook, and proposals to address any Handbook changes arising from HMT’s consultation on implementing the IDD (including changes to passporting, sanctions and the PERG). The FCA notes that, given the 23 February 2018 deadline for implementing the IDD and the timing of the adoption of the delegated acts, it is likely that its third consultation will be issued while CP17/23 remains open for comments. The third consultation may also have a shorter period for responses. To make this "manageable" for respondents, the FCA has signposted in CP17/23 the policy issues it proposes to cover in the third consultation paper.

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Insurance capital requirements– IAIS releases ICS version 1.0 for extended field testing

On 21 July, the IAIS published a report on extended field testing for the risk-based global insurance capital standard (ICS) version 1.0.The purpose of the report is to describe the background and rationale for different components of ICS version 1.0 for extended field testing, which will be an important input into the future development of the ICS. Extended field testing means: the field testing exercise is extended to all potential internationally active insurance groups (IAIGs) and other interested groups (volunteer groups). There are a number of new volunteer groups in the 2017 field testing; and the exercise contains extended data requests on technical and policy issues that the IAIS will be seeking to resolve for ICS version 2.0. The IAIS explains that the release of ICS version 1.0 for extended field testing represents an important step towards the development of ICS version 2.0 by late 2019. ICS version 1.0 for extended field testing has been shaped by extensive feedback the IAIS has received through multiple public consultations, volunteer field testing exercises and stakeholder sessions. Industry participation continues to grow, with around 50 of the largest global insurance groups now involved in the extended field testing process.

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Markets

ECB sets out approach to implementing FX global code

On 26 July 2017, the ECB published a press release setting out its approach to implementing the FX global code. The FX global code comprises a set of global principles of good practice in the FX market. The ECB's approach is to: (i) invite foreign exchange trading counterparties to publicly commit to the principles set out in the FX global code by endorsing the statement of commitment annexed to the code by the end of May 2018; and (ii) encourage counterparties to reaffirm their commitment to these principles after any substantial future update of the FX global code.

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FX global code statements – GFXC publishes recommendations on public registers

On 25 July, the GFXC published a set of recommendations relating to the establishment of public registers for FX global code statements of commitment. Since the FX global code was launched in May 2017, some market participants have expressed interest in the creation of, and having access to, public registers, which would serve as repositories of information to: enable market participants to make public their use of the statement of commitment that is annexed to the FX global code, and their corresponding recognition of, and commitment to adopting, the good practices set out in the code; and to help interested parties in identifying market participants that have taken these steps. The GFXC considers that public registers could be established using a variety of operating models; it does not take a view on the most appropriate model. To support the development of public registers, the GFXC has developed some initial guidance for potential public register hosts. The guidance takes the form of a short set of non-binding recommendations on the characteristics of a public register that would most effectively achieve the GFXC's aims. Initial feedback submitted to the GFXC suggests that a number of entities, both from the public sector and private sector, might be interested in establishing a public register. Multiple registers may be able to capture a larger cross section of FX market participants given the diversity of the wholesale FX market. In the event that multiple registers develop over time, the GFXC will consider establishing and hosting a global index of registers.

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MiFID II – FCA statement on late applications

On 25 July, the FCA published a press release reminding firms that, from 3 January 2018, they will only be able to carry on activities that require authorisation under MiFID II if they have the required regulatory permissions. The FCA expects firms who have not submitted a complete application for authorisation or a VoP by 3 July (the deadline) to do so without further delay. The FCA will determine complete applications received after 3 July within six months, but it cannot guarantee to do so by 3 January 2018 (which is when MiFID II applies). The FCA states that firms will need to have contingency plans in the event that by 3 January 2018 they do not have the required permissions. It also warns that if it becomes aware of firms carrying on regulated activities without the required permissions, the FCA may take such action as it considers appropriate.

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Payments

PSD2 - Final EBA guidelines on major incident reporting

On 27 July, the EBA published its final report (EBA/GL/2017/10) on guidelines on major incident reporting under PSD2. The guidelines have been developed in close co-operation with the European Central Bank (ECB). They are addressed to all PSPs and competent authorities in the 28 EU member states. The EBA explains that the guidelines contribute to the PSD2 objective of minimising disruption to users, PSPs and payment systems. The guidelines (found in chapter 3 of the report) set out the criteria, thresholds and methodology to be used by PSPs to determine whether an operational or security incident should be considered major and, therefore, to be notified to the competent authority in the home member state. The guidelines will apply from 13 January 2018.

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Payment systems – Draft Banking Act 2009 (Service Providers to Payment Systems) Order published

On 26 July, a draft of the Banking Act 2009 (Service Providers to Payment Systems) Order 2017 was published together with a draft explanatory memorandum. Part 1 of the draft Order states that Parts 1, 2 and 4 come into force on 30 November and that Part 3 comes into force on 13 January 2018.

Order

Explanatory notes 

Account services – FCA consultation on information about current account services

On 25 July, the FCA published a consultation paper on information about current account services (CP17/24). CP17/24 is of interest to firms that accept deposits and provide payment accounts as defined by the Payment Account Regulations (SI 2015/2038). It affects the majority of current and potential participants in the personal current account (PCA) and business current account (BCA) markets. It also affects organisations that offer comparison services. The FCA is concerned that information available to customers about the service provided by firms is rarely provided in a consistent manner that allows comparison between firms. In CP17/24, the FCA proposes new rules that will require BCA and PCA providers who meet certain thresholds to publish service information in the following categories: (i) account opening information; (ii) speed of card replacement; (iii) service availability; and (iv) major incidents. The deadline for comments is 25 September. The FCA plans on publishing a policy statement later in 2017. The FCA explains that it is aiming to have rules in time to require the first publication of additional service metrics in August 2018, to coincide with the first publication of core CMA service quality indicators.

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PSD2 – EBA consultation on draft RTS and ITS on EBA electronic central register

On 24 July, the EBA published a consultation paper (dated 21 July) on the draft RTS and ITS on the EBA electronic central register under the revised PSD2. Under Article 15(1) of PSD2, the EBA is required to develop, operate and maintain an electronic central register that contains information as notified by competent authorities (CAs). PSD2 also mandates the EBA to develop RTS and ITS relating to the register. The draft RTS set out requirements relating to: (i) access to the register by the various users of the register; (ii) provision of information by CAs to the EBA, and validation of that information; safety, availability and performance of the register; responsibilities of the EBA concerning the management and maintenance of the register; and (iii) search of information in the register and the display of search results. The EBA also concludes that the ITS should specify the type, and format, of information that will be contained in the register. The deadline for comments is 18 September. The EBA will hold a public hearing on 4 September.

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PSD – EC consultation on transparency and fees in EU cross-border transactions

On 24 July, the EC published a consultation paper on transparency and fees in cross-border transactions in the EU. The consultation aims to collect feedback on transaction fees and currency conversion and focuses on two actions: (i) transaction fees; the EC concerned that that in the majority of member states, fees for cross-border transactions in non-euro currency remains very high. It suggests that an extension of the Regulation on cross border payments to all currencies in the EU would reduce the costs of cross-border transactions; and (ii) more competition in currency conversion; the EC is concerned that currency conversion rates are not transparent and that consumers do not know which currency conversion offer is the most advantageous. The EC is interested in receiving information about currency conversion ahead of considering the most appropriate means to allow consumers to choose the best rate. The deadline for comments is 30 October.

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PSR policy statement on 2017/18 regulatory fees 

On 21 July, the PSR published a policy statement (PSR PS17/17) on how the fees for the PSR's functions under the Financial Services (Banking Reform) Act 2013 (Banking Reform Act, or FSBRA) and the Interchange Fee Regulation ((EU) 2015/751) (IFR) will be allocated, calculated and collected for the year 1 April 2017 to 31 March 2018. The PSR's annual funding requirement for the year 2017/18, as consulted on, will be £12 million. This will be split across the PSR's FSBRA and IFR functions as follows: £11.4 million to fund the PSR's FSBRA and concurrent competition functions and activities; and £0.6 million to fund the PSR's IFR functions and activities. The final made rules are set out in the Fees (Payment Systems Regulator) Instrument (No 4) 2017 (FCA 2017/42). This instrument was made by the FCA Board on 20 July and came into force on 21 July. The instrument sets out the individual operator fee rates. The PSR had an underspend in 2016/17 and will refund £4.2 million to fee payers for that year in accordance with the process set out in PS17/17. PS17/17 sets out what is expected of each stakeholder and when. Different deadlines apply for operators, operators who pay their fees themselves, and direct PSPs, acquirers and card issuers.

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PSR Board meeting May 2017 – PSR publishes minutes

On 21 July, the PSR published minutes from a Board meeting held on 17 May. Points of interest in the minutes include: (i) it was noted that the FCA was having discussions on the impact of Brexit, and that there did not appear to be a similar level of debate by the PSR; (ii) the Board was reminded that the PSR is the main competent authority for monitoring and enforcing the IFR, and that the PSR published guidance in 2016 stating that it would require parties to provide information to demonstrate compliance with the IFR; (iii) the Board received an update, at its request, on the status of the card acquiring market following concerns raised by the PSR Panel; David Bailey, BoE Director of Financial Market Infrastructure, attended the meeting; and (iv) the Board received an update on the PSR's follow-up work responding to the Which? super-complaint on authorised push payment (APP) scams.

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Pensions

FCA policy statement on regulatory reporting of retirement income data

On 21 July, the FCA published a policy statement setting out final rules changes relating to the regulatory reporting of retirement income data (PS17/16). The text of the final made rules is set out in the Retirement Income Data (Regulatory Return) Instrument 2017 (FCA 2017/48). This instrument was made by the FCA Board on 20 July and comes into force on 30 September 2018. Firms are expected to put processes in place so that they can meet the new reporting requirements from that date.

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FCA 2017/48 

Prudential regulation

PRA consults on updated supervisory statement on MREL and buffers

On 27 July, the PRA published a consultation paper on MREL and buffers (CP15/17). In CP15/17, the PRA sets out its proposed expectations on the relationship between MREL and buffer requirements, as well as the consequences of not meeting them. The PRA proposes to update supervisory statement SS16/6 on the MREL, buffers and threshold conditions. SS16/6 sets out how the PRA views the relationship between MREL and the buffer requirements from the two going-concern regimes (risk-weighted capital buffers and leverage buffers). Comments can be made on CP15/17 until 29 September. The PRA has chosen a short consultation period as it wishes to provide certainty on the policy in a timely fashion. It aims to publish the updated version of SS16/6 before the end of 2017.

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ECB consults on draft guide to on-site inspections and internal models investigations

On 27 July, the ECB published a consultation on a draft guide to on-site inspections and internal models investigations. The consultation is accompanied by a set of FAQs. Under the SSM Regulation, supervision by ECB Banking Supervision can be exercised off and on-site, the aim of which is to ensure a detailed and thorough analysis of the supervised entities' business. On-site supervision is performed through OSIs or IMIs, as specified under Article 12 of the SSM Regulation. The consultation closes on 15 September. A related ECB press release states that, once the consultation has closed, the ECB will publish the responses received, together with a feedback statement.

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Press release 

Recovery and resolution

Recovery and resolution plans – ESRB opinion on CCP recovery and resolution framework

On 25 July, the ESRB published its opinion on a CCP recovery and resolution framework. The opinion relates to the EC’s November 2016 legislative proposal for a CCP recovery and resolution regime and is based on the April compromise proposal. The opinion highlights areas where the legislative proposal could be refined to better address potential financial stability issues, including: (i) harmonising recovery actions in secondary legislation; (ii) strengthening the financial stability mandate of CCP supervisory authorities in the EU; (iii) strengthening resolution planning by conducting an impact assessment and an analysis of financial resources; (iv) including further resolution tools and clarifying the use of the proposed tools; (v) enhancing cross-border co-operation and co-operation with bank resolution authorities; and (vi) clarifying the conditions for the suspension of clearing obligations and the use of public financial support.

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Other

New Deputy Governor for Markets and Banking and Chief Operating Officer appointments for BoE

On 27 July, HMT published a press release announcing it has appointed a new Deputy Governor for Markets and Banking at the BoE, and the BoE published a press release announcing it has appointed a new COO. The appointments are: (i) BoE Deputy Governor for Markets and Banking is Sir David Ramsden. His appointment takes effect on 4 September and is for a renewable term of five years. Sir Dave will replace Charlotte Hogg, who announced her resignation in March; and (ii) BoE COO is Joanna Place, who has been acting as COO since 1 May, and was previously BoE Executive Director of Human Resources. Her appointment has immediate effect.

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BoE press release 

GLEIS – LEIROC consultation on corporate actions and data history in GLEIS

On 26 July, the LEIROC published a consultation paper on corporate actions and data history in the GLEIS. The consultation paper focuses only on corporate actions that directly affect the LEI reference or relationship data, including corporate actions that affect the legal perimeter or material composition of an entity, and ultimately how those actions affect the historical information maintained within the GLEIS. Other corporate actions that currently do not affect LEI records, such as the payment of a cash dividend, are not considered in the consultation paper. Some of the corporate actions are, at least in part, already covered by the data recorded in the GLEIS. However, LEIROC has identified possible improvements concerning the information that should be collected on these corporate actions, how the information should be obtained, and how the data should be arranged for later use. The relationship and reference data within the GLEIS should be granular enough to enable analysis and visualisation of changes to an entity and its relationships with other entities, both from the present looking backwards and from the date of an entity's entry into the GLEIS looking forward to the present. LEIROC is seeking input from the public on the possible improvements. In particular, it is asking for views on the approach that should be taken to address corporate actions and define the relevant entity history. The deadline for comments is 29 September.

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FCA appointments – FCA creates new role of Head of Department Scotland

On 26 July, the FCA published a press release announcing that it has created a new role of Head of Department, Scotland. The FCA has a Scottish office in Edinburgh and over 80 employees are based there. The new role is designed to take forward the FCA's presence in Scotland and contribute to Scottish aspects of FCA policies. Maggie Craig, who is currently FCA Head of Insurance and Pensions Policy, has been appointed to the role with effect from September.

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FCA annual public meeting 2017 – FCA publishes transcript of meeting

On 25 July, the FCA published the transcript of its 2017 annual public meeting. The meeting took place on 18 July. Items of interest include: in relation to IRHPs, the review work is nearly completed with only a small number of cases outstanding; in November 2016, the FCA published a high-level summary of the main findings of the skilled persons report it commissioned into the treatment by The RBS of SME customers transferred to RBS' Global Restructuring Group (GRG) between 2008 and 2013. The FCA intends to publish a "very extensive summary" of the report, but, before doing so, it needs to complete an investigation into issues contained in the report; the FCA has decided to bring together its ongoing investigation into certain former HBOS senior managers with its recently announced investigation into events surrounding the discovery of misconduct within HBOS' Reading-based impaired assets team; the FCA is in the "later stages" of the assessment and analysis phase of its investigation into the failure of the Connaught Income Fund; on Brexit, the FCA recognises that there is a risk for firms that they may be put in a position where they have to put their contingency plans into effect before they know the final outcome of the negotiations; and the General Data Protection Regulation ((EU) 2016/679) (GDPR) is a "very significant piece of regulation" that raises "some pretty challenging issues" for the FCA and the public sector as a whole.

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Unique identifier governance – responses to FSB consultation

On 21 July, the FSB published the responses it has received to its consultation paper on proposed governance arrangements for the unique transaction identifier. The FSB published its consultation paper in March.

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