BANKING

FCA Handbook Notice 47

FCA has published Handbook Notice 47, which sets out the changes made to the FCA Handbook under instruments made by the FCA Board on 12 September 2017:

  • Handbook Administration (No 47) Instrument 2017. This instrument makes minor changes to various modules of the FCA Handbook, the Perimeter Guidance manual (PERG) and the Readers Guide.
  • Training and Competence Sourcebook (Qualifications Amendments) Instrument 2017. This instrument makes changes to the Glossary and Appendix 4.1 to the Training and Competence sourcebook (TC) to keep it up to date.
  • Conduct of Business (Disclosure Amendment) Instrument 2017. This instrument makes changes to COBS 4, COBS 14 and chapter 7 of the Mortgages and Home Finance Conduct of Business sourcebook (MCOB).
  • Pension Schemes (Disclosure of Transaction Costs and Administration Charges) Instrument 2017 (FCA 2017/53). This instrument makes changes to the Glossary and COBS 19 to enable governance bodies of relevant pension schemes to protect the interests of pension scheme members by enabling them to obtain information to assess transaction costs and judge whether these represent value for money.
  • Listing Rules (Corporate Governance Code) Instrument 2017. This instrument makes changes to the Glossary, and Appendix 1.1 and transitional provisions (TR) 13 of the Listing Rules sourcebook (LR).
  • Fees (Payment Services) Instrument 2017 (FCA 2017/56). This instrument introduces application charges to enable firms to submit applications in advance of the revised Payment Services Directive ((EU) 2015/2366) (PSD2). It comes into force on 13 October 2017 and 13 January 2018. The FCA published a policy statement outlining its final rules in this area in July 2017.

FCA, 13 September 2017

 

FCA "Dear CEO" letter on consumer credit firms' handling of complaints

The FCA has published a Dear CEO letter addressed to firms engaging in consumer credit activities, setting out its concerns about firms' handling of complaints. The FCA states that it recently undertook a review of how consumer credit firms approach and deal with customer complaints. In the letter, the FCA highlights its concerns relating to:

  • The failure of firms to provide appropriate information about their internal complaints-handling procedures and to refer complainants to the availability of it.
  • The poor quality of final responses from firms about complaints. The FCA found that firms failed to provide clear explanations of factors such as the assessment of the complaint, the decision itself and the reasons why a complaint was rejected
  • The failure of firms to undertake root cause analyses to identify and remedy any recurring or systemic problems, as required by DISP 1.3.3R.
  • Firms failing to record and report accurate complaints data.

The FCA expects firms to review how they identify, record and deal with complaints as well as how this is communicated to customers, particularly taking into consideration the issues highlighted in the letter. Firms do not need to notify the FCA about the review or its outcome. However, the FCA may request evidence of compliance with complaints-handling requirements, including details of any reviews undertaken in response to this letter.

FCA, 13 September 2017

 

BoE and PSR announce formation of NPSO

The Payment Systems Regulator (PSR) and Bank of England (BoE) has announced that the Payment System Operator Delivery Group (PSODG) has completed the necessary steps to deliver against the mandate that the regulators tasked it with.  Following the appointment of Melanie Johnson as its first chair, work will continue at pace to deliver the New Payment Systems Operator (NPSO) by the end of 2017. With the NPSO now taking the lead, the PSR and the BoE have confirmed the closure of the PSODG.

PSR, 13 September 2017

 

INVESTMENTS AND FUNDS

HFSB changes name to SBAI

The Hedge Funds Standards Board (HFSB) has changed its name to the Standards Board for Alternative Investments (SBAI). The press release states that the change in name reflects the evolution of the alternative investment industry, commenting that managers increasingly offer investment strategies through a variety of vehicles beyond hedge funds, including liquid alternatives, regulated funds, co-investment vehicles, drawdown funds and managed accounts. It also states that the HFSB's standards and guidelines have broad applicability across asset management, even though they were developed for alternatives managers.

SBAI, 13 September 2017

 

ESMA updates MiFID II Q&As on market structures topics: September 2017

ESMA has published an updated version of its Q&A document on implementation issues relating to market structures requirements under the MiFID II Directive and the Markets in Financial Instruments Regulation (MiFIR). The new Q&As have been updated with four new questions relating to access to central counterparties (CCPs) and trading venues.

ESMA, 13 September 2017