Since our last publication CAP has issued new guidance on targeting age-restricted adverts online and the FCA has published its policy update page for June 2017. In other news, the Banking Standards Board has published its annual review for 2016 / 2017.

UK

Children & age-restricted ads online

CAP has issued new guidance on targeting age-restricted adverts online. The guidance helps marketers prepare and target marketing communications responsibly with child audiences in mind, following previous work on recognition of advertising by under-12s and non-broadcast ad placement earlier this year. Given the growing diversity of activity online, it’s important for advertisers to target their ads effectively and responsibly.  This is particularly the case in relation to advertising for gambling, alcohol and other products that the ad rules CAP Code bans from being targeted at children and young people under 18.  To support compliance with the rules, CAP has produced guidance to help advertisers make the best use of those tools to target legitimate audiences responsibly and exclude, to the best of their ability, the protected audience.  Although not directly targeted at financial service providers, the guidance is still relevant for banks and other providers of credit as they must also ensure that age-restricted ads that promote unsuitable products are not directed at children or in media where children may make up a significant proportion of the audience, including social media. CAP, 6 June 2017

FCA policy development update

The FCA has published its policy development update page for June 2017. The page is worth reviewing as it sets out in one place what CPs or other documents the FCA has published recently, and what they intend to publish (along with estimated timeframes).   They have confirmed that they still intend to publish a CP on creditworthiness and affordability in consumer credit, but the date for this is still to be confirmed. FCA, 13 June 2017

Banking Standards Board Annual Review 2016/17

The Banking Standards Board has published an annual review for 2016/17, providing an assessment on 2016 and its work for the year ahead. BSB, 16 June 2017

LSB publishes findings from Standards Development Project on digital

The Lending Standards Board has published a report containing summary findings of its Standards Development Project on digital and have identified several examples of good practice which firms may wish to take into consideration when developing capabilities.

LSB, 14 June 2017

New guide published to support lending to vulnerable customers

The UK Cards Association and Finance & Leasing Association have published a guide to help the finance industry support lending to vulnerable customers. UK Cards Association, 14 June 2017

PRA consultation on optimisations to SIMR and changes to SMR forms

The PRA has published a consultation on strengthening accountability in banking and insurance: optimisations to the senior insurance managers' regime (SIMR) and changes to senior manager's regime (SMR) forms. PRA, 13 June 2017

FOS annual review 2016/17

The Financial Ombudsman Service has published its annual review for 2016/17. FOS, 13 June 2017

EU     

Contracts for supply of digital content: Council adopts general approach on proposed Directive

The EU Justice and Home Affairs Council has adopted its general approach on a proposed Directive which aims to regulate contracts for the supply of digital content in business-to-consumer (B2C) contracts and to provide a high level of consumer protection and legal certainty to European consumers, in particular when buying cross-border, as well as to make it easier for businesses, especially SMEs, to sell EU-wide.

European Parliament, 8 June 2017

Council agrees creditor hierarchy Directive and IFRS 9 Regulation

The Council of the EU has announced a package of proposals aimed at reducing risk in the banking industry that includes;

  • a draft directive on the ranking of unsecured debt instruments in insolvency proceedings;
  • a draft regulation on transitional arrangements to phase in the regulatory capital impact of the IFRS 9 international accounting standard.

Council of EU, 16 June 2017

European Ombudsman rules ECB had no mandate to intervene in contractual dispute between bank and customer

The European Ombudsman has published a decision concerning the jurisdiction of the European Central Bank (ECB) under the single supervisory mechanism (SSM) (Case: 1669/2016/CEC).

The case concerned a dispute between a Dutch bank and one of its customers about the interest rate of the customer’s mortgage. The customer requested the ECB to intervene in the dispute, but the ECB refused on the grounds that it could not intervene in disputes between banks and their clients.  The Ombudsman concluded that the ECB's decision was correct. European Ombudsman, 15 June 2017

Council of EU reports on banking reform legislative proposal progress

The Presidency of the Council of the EU has published a progress report on legislative proposals in relation to relating to banking reform. Council of the EU, 14 June 2017