BANKING

European Commission to hold public hearing on the CMU

European Commission is holding a public hearing on the capital markets union (CMU) mid-term review in Brussels on 11 April 2017.  The event begins with senior policy makers and executives taking stock in a panel discussion of the implementation of the CMU action plan so far, and the challenges and priorities for the CMU mid-term review. EC, 29 March 2017

Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 published

The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (SI 2017/488) has been published on legislation.gov.uk, together with an explanatory memorandum, transposition note and impact assessment. legislation.gov.uk, 29 March 2017

BCBS finalises interim approach on regulatory treatment of accounting standards

The Basel Committee on Banking Supervision (BCBS) has published a paper containing standards setting out an interim approach to the regulatory treatment of accounting provisions and transitional arrangements (BCBS401). In BCBS401, the BCBS confirms that it intends to retain the current regulatory treatment of accounting provisions as applied under the standardised approach (SA) and the internal ratings based (IRB) approach for an interim period. During this interim period, the BCBS expects jurisdictions to extend their existing approaches to categorising provisions as general provisions (GP) or specific provisions (SP) to provisions calculated under the applicable expected credit loss (ECL) accounting model. BCBS401 also sets out transitional arrangements relating to the impact of ECL accounting on regulatory capital that jurisdictions may introduce from 1 January 2018. Annex I sets out a new paragraph 96A for the Basel III standards on capital (BCBS189) containing these transitional arrangements. BSBC, 29 March 2017

BCBS finalises second phase of revisions to Pillar 3 disclosure framework

BCBS has published a paper of the final version of the requirements relating to the second phase of its revisions to the Pillar 3 disclosure framework (BCBS400). The disclosure requirements set out in BCBS400 relate to three elements:

  • Consolidation of all existing BCBS disclosure requirements into the Pillar 3 framework.
  • Enhancements to the revised Pillar 3 framework.
  • Additions to the Pillar 3 framework arising from ongoing reforms to the regulatory policy framework.

The implementation dates for these disclosure requirements are set out in a table on pages 13 to 16 of BCBS400. BSBC, 29 March 2017

PSR annual plan and budget for 2017/18

The Payment Systems Regulator (PSR) has published its annual plan and budget for 2017/18. The PSR intends to remain focused on promoting competition and innovation in the UK payments sector, and will carry out some exploratory work towards a better understanding of the following areas:

  • Working in consumers' interests.
  • The increasing use of payments data.
  • The changing competitive structure of the market.

It also plans work on the following existing projects:

  • Payments Strategy Forum (PSF).
  • Market review on infrastructure provision.
  • Access and governance.

PSR, 29 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. legislation.gov.uk, 29 March 2017

 

INSURANCE

ABI examines impact of InsurTech

Association of British Insurers (ABI) has published a speech given by its director general, Huw Evans, at the FCA Project Innovate: InsurTech Forum. Mr Evans said he felt positive about the opportunities posed by InsurTech for customers, the insurance sector’s reputation and the sector’s ability to meet its wider social and economic purpose. ABI, 29 March 2017

INVESTMENTS AND FUNDS

Commission blocks proposed merger between Deutsche Börse and London Stock Exchange

European Commission announced that it has decided, under Article 8(3) of the EU Merger Regulation, to prohibit the proposed merger between Deutsche Börse AG and London Stock Exchange Group. The proposed merger would have combined the activities of the two largest European stock exchange operators. They own the stock exchanges of Germany, Italy and the United Kingdom, as well as several of the largest European clearing houses. The Commission's investigation found that the merger between would have significantly reduced competition by creating a de facto monopoly in the crucial area of clearing of fixed income instruments. As the parties failed to offer the remedies required to address the competition concerns, the Commission has decided to prohibit the merger. EC, 29 March 2017

FCA updates notification forms on national private placement regime

FCA has announced on its national private placement regime (NPPR) web page that it has updated its NPPR notification forms. The NPPR principally relates to the marketing of non-EEA alternative investment funds (AIFs) and any AIFs managed by non-EEA alternative investment fund managers (AIFMs). The FCA has provided notes to help firms complete each of the NPPR notification forms. Completed NPPR notifications must be emailed to npprmarketingnotification@fca.org.uk. FCA, 29 March 2017