BANKING

FCA speech on behavioural finance

The FCA has published a speech given in June 206 by Peter Andrews, FCA Chief Economist, on behavioural finance. In his speech, Mr Andrews argues that policy makers can better answer certain questions by adopting a "multi-perspective" approach; blending traditional economic expertise with insights from other fields, and drawing on developments in areas like machine learning and, eventually, neuroscience

FCA, 25 January 2017

The Promise of FinTech – Something New Under the Sun?

The Governor’s Mark Carney has given a speech as Financial Stability Board (FSB) Chair, he recognises fintech’s huge potential for making the financial system more inclusive, efficient, effective and resilient. He considers the challenge for financial stability policymakers: ensuring that fintech develops in a way that maximises these opportunities and minimises risks for society. The Governor goes on to set out how the FSB is approaching the challenge of managing fintech’s impact on financial stability so that its full potential can be realised.  BoE, 25 January 2017

Corrigenda to CRR and CRD IV published in OJ: January 2017

The corrigenda make a number of minor technical amendments to the text of the CRD IV Directive and the Capital Requirements Regulation (CRR). Official Journal of the EU, 25 January 2017

The Wolfsberg Group, ICC and the BAFT Trade Finance Principles

The Wolfsberg Group, a group of international banks that aims to develop financial services industry standards for anti-money laundering (AML) and counter-terrorist financing (CTF) policies, has published the 2017 version of its Trade Finance Principles, updating the version that was last revised in August 2011. The Principles provide guidance on the nature and extent of controls that should be followed by financial institutions in trade finance transactions to address financial crime risks, including money laundering and terrorist financing. The Wolfsberg Group, 24 January 2017 Commons Hansard, Written Statement: EU: Prospectus Regulation

The Economic Secretary to the Treasury has issued a written statement confirming that the government has decided not to opt in to the provision requiring co-operation between competent authorities where the criminal sanctions regime within the proposed Prospectus Regulation is adopted. Parliament.uk, 24 January 2017

INSURANCE

First set of data in FCA's general insurance value measures pilot

The FCA has published on its website the first set of data in its general insurance (GI) value measures pilot, covering data for the year ending 31 August 2016. The value measures data that has been published in both a sortable table format and a downloadable table format in which data can be searched. The data (which is from 38 UK and EEA insurers) includes claims frequencies, claims acceptance rates and average claims pay-out by insurers for a variety of GI products. The FCA has also published the information request that was sent to each of the insurers involved in the pilot.

FCA, 25 January 2017

EU insurance regulation examined by Treasury Committee

The Treasury Committee has announced it is it is to examine the Solvency II Directive with insurance and financial services providers to understand how opportunities for greater control of insurance regulation could result from Brexit. Parliament.uk, 25 January 2017

INVESTMENTS AND FUNDS

FSB reports on re-hypothecation of client assets and collateral re-use

The FSB has published two reports which form part of the FSB's work to transform shadow banking into resilient market-based finance. They are:

FSB, 25 January 2017

ESMA issues opinion on Spanish pension schemes to be exempt from central clearing under EMIR

ESMA has issued an opinion regarding the exemption of Spanish pension schemes from the obligation to centrally clear OTC derivative contracts under EMIR. Pension's schemes have to ask their national competent authority to be exempted from the clearing obligation. Before deciding on an exemption, the relevant competent authority needs to obtain the opinion of ESMA which also needs to consult the European Insurance and Occupational Pensions Authority (EIOPA). ESMA, 25 January 2017