BANKING

New report explores how payments could be affected by the UK’s exit from the EU

Payments UK has published a new report that looks at the practical implications for payments arising from the UK’s exit from the EU. The report examines the impact which Brexit could have on consumers, businesses and payment service providers. It highlights key payment topics for consideration, such as: the Payment Services Directive, passporting, the Single Euro Payments Area and UK access to euro payment systems. Payments UK, 28 February 2017

 

PSR consults on draft terms of reference for review of payment system operators' role in preventing push payment scams

The Payments Systems Regulator (PSR) has published a document in which it is consulting on draft terms of reference covering how the PSR intends to carry out its work to consider the potential for payment system operators to play a role in minimising the consumer harm caused by authorised push payments scams. The PSRs proposed work follows a super-complaint made by Which? which raised concerns that there is not enough protection for people who are tricked into transferring money to a fraudster. Payment Systems Regulator, 28 February 2017

 

Bank of England announces initial membership of Prudential Regulation Committee

The Bank of England (BoE) has published a press release announcing the initial membership of the Prudential Regulation Committee (PRC). Today, the PRA's functions will transfer to the BoE and the PRC, a new committee of the BoE, will take on responsibility for exercising the BoE's functions in its role as the PRA. In effect, the PRC will take on the role of the PRA Board. These changes reflect amendments to the Financial Services and Markets Act 2000 made by the Bank of England and Financial Services Act 2016 and brought into force by the Bank of England and Financial Services Act 2016 (Commencement No 4 and Saving Provision) Regulations 2017. Bank of England, 28 February 2017

 

CPMI and IOSCO technical guidance on harmonisation of unique transaction identifier

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have published a report containing technical guidance on harmonisation of the unique transaction identifier (UTI). In 2014, the Financial Stability Board asked the CPMI and IOSCO to develop global guidance on the harmonisation of data elements reported to trade repositories and important for the aggregation of data by authorities, including UTIs and unique product identifiers. The CPMI and IOSCO have consulted twice, as part of their work to develop guidance on harmonisation of the UTI. The Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions, February 2017

 

FCA "Dear CEO" letter to firms operating loan-based crowdfunding platforms

The FCA has published a "Dear CEO" letter to firms that operate loan-based crowdfunding platforms to highlight that if a lending business borrows through a platform and then lends that money to others, it may be accepting deposits under article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. If a borrower accepts deposits without the correct regulatory permission, this is a breach of the "general prohibition" in section 19 of the Financial Services and Markets Act 2000 (FSMA) and may be a criminal offence. FCA, 28 February 2017

 

BSB certification regime fitness and propriety guidance

The Banking Standards Board (BSB) has published good practice guidance for banks and building societies putting in place procedures to assess the fitness and propriety of staff under the FCA and PRA certification regime. Banking Standards Board, 28 February 2017

 

ECON and LIBE adopt report on MLD5

The European Parliament has published a press release relating to the proposed Fifth Money Laundering Directive (MLD5), which amends the Fourth Money Laundering Directive. The press release states that the Parliament's Economic and Monetary Affairs (ECON) and its Civil Liberties, Justice and Home Affairs Committee (LIBE) have voted to adopt an amended version of their draft report on MLD5. The text of the adopted report has not yet been made publicly available. European Parliament, 28 February 2017

 

INSURANCE

European Commission second call for technical advice from EIOPA on review of Solvency II Delegated Regulation

The European Commission has published a call for technical advice sent to EIOPA relating to a possible review of the Commission Solvency II Delegated Regulation. The Commission explains that, in the context of the capital markets union, it is important that any investment supporting jobs and growth is appropriately treated in insurers' prudential requirements. As a result, EIOPA has been asked to provide technical advice on the review of specific items in the Solvency II Delegated Regulation as regards unjustified constraints to financing. This is with a view to removing barriers in investments in unrated bonds and loans and in unlisted equity, to improve insurers' ability to invest in private placement offerings and in private equity. EIOPA has been asked to deliver its technical advice by 28 February 2018.

European Commission, 22 February 2017

INVESTMENTS AND FUNDS

FCA proposes reforms to the availability of information in the UK equity IPO process

The FCA has today launched a Consultation Paper proposing a package of measures to reform the availability of information during the UK equity initial public offering (IPO) process. The IPO process plays a vital role in helping companies raise capital in UK markets. The FCA’s April 2016 Discussion Paper on this topic reported some areas of the process that need improving, namely the timing, sequencing and quality of information being provided to market participants. This consultation is related to a wider programme of work that is designed to increase the efficiency and effectiveness of primary markets. The consultation ends on the 1 June 2017. FCA, 1 March 2017

 

ESMA issues implementing rules for package orders under MiFID II

The European Securities and Markets Authority (ESMA) has published today its final report on draft regulatory technical standards regarding the treatment of package orders under the amended Markets in Financial Instruments Directive (MiFID II) and Regulation. ESMA, 28 February 2017