Since our last publication, the Financial Services Compensation Scheme's deposit protection level has increased back to £85,000. In other news, the FCA has published Handbook Notice 40, setting out the changes made by the FCA Board on 25 January 2017.

UK

FSCS deposit protection level returns to £85,000

The amount the Financial Services Compensation Scheme (FSCS) protects for deposits in banks, building societies and credit unions has increased from £75,000 to £85,000. FSCS chief executive Mark Neale commented: "The £85,000 limit protects about 98% of the UK public.  More people will have more protection for more of their money."

Professional Adviser, 30 January 2017

PRA further statement on leverage ratio and related rule modification direction

The PRA has published a statement relating to the leverage ratio and a related rule modification direction. The statement invites firms to consent to a variation of the temporary rule modifications granted in August 2016, in relation to the exclusion of certain central bank claims from the total exposure measure for the purposes of the leverage ratio.

PRA, 27 January 2017

FCA speech on free trade in financial services

The FCA has published a speech by its Chief Executive Andrew Bailey, given at the Economic Council Financial Markets Policy Conference.  The speech argues that post-crisis regulatory standards are not weak, and instead represent progress towards simplification by reducing the number of national standards, and that the use of global standards does not require jurisdiction to be given to the courts or regulators of one country over those of another in the home market of the latter. FCA, 26 January 2017

FCA Handbook Notice 40

The FCA has published Handbook Notice 40 which sets out the changes made to the FCA Handbook under the following instruments, which were made by the FCA Board on 25 January 2017: 

  • Handbook Administration (No 44) Instrument 2017 (FCA 2017/1)
  • Conduct of Business (Lifetime Mortgages) Instrument 2017 (FCA 2017/2)
  • Alternative Investment Fund Managers Directive (Reporting) Instrument 2017 (FCA 2017/3)
  • Decision Procedure and Penalties Manual and Enforcement Guide Instrument 2017 (FCA 2017/4)

FCA, 26 January 2017

FSCP position paper specifying reasonable duty of care

The Financial Services Consumer Panel (FSCP) has published a position paper proposing the amendment of the Financial Services and Markets Act 2000 to require the FCA to make rules specifying what constitutes a reasonable duty of care that financial services providers should owe to their customers. FSCP, 26 January 2017

MoU between FCA and HMRC on exchange of information

The FCA has published a Memorandum of Understanding (MoU) with HM Revenue & Customs (HMRC) relating to the overall exchange of information between HMRC and FCA. FCA, 26 January 2017

CML mortgage lending data

The Council of Mortgage Lenders (CML) has published Q4 2016 mortgage lending data. The data highlights how gross mortgage lending has increased by 12% in 2016. CML, 26 January 2017 Bank of England and Financial Services Act 2016 (Commencement No 4 and Saving Provision) Regulations 2017

The Bank of England and Financial Services Act 2016 (Commencement No 4 and Saving Provision) Regulations 2017 (SI 2017/43) have been published.  The Regulations were made on 20 January 2017. They are the fourth commencement regulations made under the Bank of England and Financial Services Act 2016. These provisions relate to the transfer of the PRA's functions to the Bank of England (BoE) and the establishment of a new committee of the BoE, the Prudential Regulation Committee. legislation.gov.uk, 24 January 2017

Post Office and UK Banks partner to offer services

The British Bankers Association has welcomed the partnership which allows for 99% of UK personal bank customers and over 75% of business customers to do their day-to-day banking at the Post Office. The new industry-wide agreement with UK banks came into effect on 23 January 2017. BBA, 24 January 2017

Supervising building societies’ treasury and lending activities

The Prudential Regulation Authority has issued an updated version of its statement on supervising the building societies' treasury and lending activities. This updates the initial publication released on 1 December 2016. PRA, 23 January 2017

EU

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 Capital Requirements Directive IV Directive and the Capital Requirements Regulation (CRR). Official Journal of the EU, 25 January 2017

WORLDWIDE

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