FCA policy statement on disclosure rules following application of PRIIPs Regulation

FCA has published a policy statement (PS17/6) on its disclosure rules following application of the Regulation on key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPs). It sets out how the FCA's disclosure requirements will change to reflect the introduction of the PRIIPs key information document (KID). The text of the final rules and guidance are set out in the Packaged Retail And Insurance-Based Investment Products Regulation Instrument 2017 (FCA 2017/28). In summary, the changes to the FCA Handbook focus on those changes necessary to reflect the direct application of the PRIIPs Regulation that will apply to firms that manufacture, give advice on or sell PRIIPs to consumers in the retail market.

However, the FCA acknowledges the lack of guidance and clarification at EU level on the PRIIPs Regulation will lead to operational difficulties and legal uncertainty for some firms. It therefore seeks to provide some clarification in PS17/7 on the scope of the Regulation to help firms plan for the new disclosure framework. The FCA states that it will consider updating its webpage: PRIIPs disclosure: Key Information Documents (which the FCA refers to as an information document), which it last updated in November 2016, to reflect comments in PS17/7. Firms must comply with the PRIIPS Regulation and any revised disclosure rules in the FCA Handbook form 1 January 2018. FCA, 2 May 2017

Complaints Commissioner criticises FCA for complaints handling delays and failure to electronically record significant meetings

The Office of the Complaints Commissioner has published the decision of the Commissioner (dated 6 April 2017) recommending that the FCA complaints team review its processes and quality checks to ensure that all aspects of a complaint are identified and addressed and that it reviews its practice of recording significant meetings in handwritten notes. The complaint concerned enforcement proceedings against a firm (of which the complainant had been a non-executive Chair); specifically that the FCA’s enforcement process was taking too long, had made subjective and potentially vindictive decisions, and was too reliant on "off the record" meetings with the Chief Executive. The Office of the Complaints Commissioner, 2 May 2017

PRA issues April digest

The Prudential Regulation Authority (PRA) has published its regulatory digest for April 2017. It highlights key regulatory news and publications for the month, such as the speech by the governor of the Bank of England, Mark Carney, on The high road to a responsible, open financial system, the letter from the PRA CEO, Sam Woods, on contingency planning for the UK’s withdrawal from the European Union, the PRA’s expectations on remuneration (PS7/17), and the PRA’s letter on the General Insurance Stress Test 2017. The digest also includes sections on:

  • Banking publications and updates
  • Insurance publications and updates
  • PRA consultations
  • Bank Underground
  • European and international developments

PRA, 2 May 2017

FCA investigations under SM&CR

The FCA has published its response to a request under the Freedom of Information Act 2000 (FOIA) relating to it carrying out investigations under the senior managers and certification regime (SM&CR). The FCA stated that, since the SM&CR came into force on 7 March 2016, it has started investigations into:

  • Two individuals who are senior managers.
  • Eleven individuals who are, or likely to be, certified persons (that is, former approved persons who transitioned into the certification regime).

The SM&CR applies to UK banks, building societies, credit unions, PRA-designated investment firms and branches of foreign banks operating in the UK. FCA, 28 April 2017

Delegated Regulation on contributions to single resolution fund published in OJ

Commission Delegated Regulation (EU) 2017/747 on the criteria for the calculation of ex-ante contributions and on the deferral of ex-post contributions to the single resolution fund (SRF) under the Regulation for the Single Resolution Mechanism (Regulation 806/2014) (SRM Regulation) was published in the Official Journal of the EU (OJ). The Delegated Regulation comes into force 20 days after publication in the OJ (that is, on 19 May 2017). OJ, 29 April 2017


BIBA launches new specialised environmental contractor's scheme through Direct Insurance London market for members

Environmental Contractors require complex, insurance cover and can very often find themselves without all of the cover that their specialised industry requires. Because of its nature BIBA has launched a new scheme exclusively for members that incorporates the range of covers this sector needs. The scheme is arranged by Direct Insurance London Market, itself a BIBA member and is available immediately. The new scheme provides a range of covers for the often intricate needs of this broad and specialist sector, all under one product. It is suitable for businesses operating across the waste and recycling industries and includes a range of covers including:

  • Multiple classes of coverage under one policy including EL, PL, Plant, Contractors Pollution Liability, Environmental Impairment Liability and Professional Indemnity as well as material damage cover for premises and motor fleet.
  • High limits of indemnity
  • Worldwide coverage where required

BIBA, 2 May 2017


ECB contribution to European Commission's CMU mid-term review 2017

European Central Bank (ECB) published a document setting out its views on the European Commission's capital markets union (CMU) mid-term review 2017. The ECB states that it is a strong supporter of the CMU and that the Commission's action plan on CMU, which was published in September 2016, is a step in the right direction. However, it believes that all CMU stakeholders should increase their efforts towards achieving CMU. In particular, the ECB states that further action is needed to foster robust cross-border capital flows and sound financial integration. It also notes that new perspectives have emerged since the CMU was designed in 2015 (this includes the UK's decision to leave the EU). ECB, 2 May 2017

Delegated Regulation delaying EMIR clearing obligation for financial counterparties with a limited activity volume published in OJ

Delegated Regulation (EU) 2017/751 relating to the EMIR clearing obligation to prolong, by two years, the phase-in period for financial counterparties with a limited volume of OTC derivatives activity has been published in the Official Journal of the EU (OJ). The Commission adopted the Delegated Regulation in March 2017 and the Delegated Regulation comes into force 20 days after publication in the OJ (that is, on 19 May 2017). OJ, 29 April 2017

Council of EU Presidency compromise proposal on Regulation on CCP recovery and resolution dated 28 April 2017

The Council of the EU has published its first Presidency compromise proposal (8612/17) on the proposed Regulation on the recovery and resolution of central counterparties (CCPs). The cover note for the compromise proposal states that, with respect to the original Commission proposal, the new text is marked in underlined bold and deletions are indicated in strikethrough. Council of EU, 28 April 2017