Treasury and banks agree simple switching information: Treasury and the Department for Business Innovation and Skills have announced an agreement with major bank current account providers as a result of which customers will more easily be able to compare accounts. The Government plans that customers should be able to upload their account usage data and on the basis of the information they provide they will have instant information showing whether switching accounts would save them money. (Source: Treasury and Banks Agree Simple Switching Information)
Treasury updates Ukraine sanctions: Treasury has published a notice explaining the impact of the sanctions imposed in relation to Ukraine at EU level on 17 March and which were the subject of UK legislation that took effect at 3:30pm on 18 March. (Source: Treasury Updates Ukraine Sanctions)
Treasury consults on bail-in: Treasury has published draft secondary legislation on implementing the bail-in provisions introduced in the Financial Services (Banking Reform) Act 2013. The statutory instruments are:
- the Building Societies (Bail-in) Order;
- the Banking Act 2009 (Restriction of Special Bail-in Provision, etc.) Order, which puts in place safeguards for set-off and netting arrangements; and
- the Banking Act 2009 (Mandatory Compensation Arrangements Following Bail-in) Regulations, which imports the "no shareholder or creditor worse off" principle to the operation of the bail-in stabilisation tool.
Treasury asks for comments on these three draft instruments by 7 May and also on the following issues:
- early transposition of the depositor preference provisions in the Bank Recovery and Resolution Directive (BRRD);
- amendment of the Financial Collateral Arrangements Regulations (FCARs) to reflect BRRD in excluding from FCARs any restriction on close-out netting that results from the application of the tools made available in BRRD; and
- applying the bail-in tool to banking group companies.
(Source: Bail-in Powers Implementation)