FS weekly highlights—29 August 2019

FS weekly highlights—29 August 2019


In this issue

 

Brexit news
UK, EU and international regulators and bodies
Authorisation, approval and supervision
Prudential requirements
Financial stability, recovery and resolution
Financial crime
Conduct requirements
Consumer protection and claims management regulation
Enforcement and redress
Markets and trading
MiFID II
Regulation of capital markets and Capital Markets Union
Regulation of derivatives
Investment funds and asset management
Banks and mutuals
Consumer credit, mortgage and home finance
Regulation of insurance
Payment services and systems
Fintech and virtual currencies
Sustainable finance

 

Brexit news

 

UK fintechs are worried about Brexit’s impact

Founders of UK-based fintech companies see their country as a leading jurisdiction for the industry, but such pending uncertainties as Brexit lead to a hazier outlook for fintech companies, according to a survey from the Digital Finance Forum  published on 26 August 2019.

ECB interviews with Andrea Enria consider second financial crisis, Brexit and AML

The European Central Bank (ECB) published two interviews with the chair of its supervisory board, Andrea Enria. The first interview, held on 15 August, discusses Brexit, SMEs and post-crisis banking regulation.  The second interview , held on 22 August 2019, focuses on pan-European banking supervision and issues around money laundering. Both interviews examine the preparedness of European banks to withstand another financial crisis. 

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UK, EU and international regulators and bodies

 

CMA directs RBS and Santander to fix PPI procedures

The Competition and Markets Authority (CMA) issued the Royal Bank of Scotland (RBS) and Santander with directions requiring them to appoint an independent body to audit their payment protection insurance (PPI) processes after they failed to send, or sent inaccurate, annual PPI reminders. They must also put in place procedures to ensure that similar incidents do not happen again. 

EIOPA decision on internal rules concerning restrictions of data subjects’ rights published in the OJ

A decision of the Management Board of the European Insurance and Occupational Pensions Authority (EIOPA) on internal rules concerning restrictions of certain rights of data subjects in relation to processing of personal data in the framework of the functioning of EIOPA was published in the Official Journal of the EU (OJ). The decision lays down rules on the conditions under which EIOPA may, in the framework of its internal procedures, restrict the application of the rights enshrined in certain provisions of Regulation (EU) 2018/1725.  

ECB signs information-sharing MoU with the European Court of Auditors

The European Court of Auditors (ECA) and the European Central Bank (ECB) agreed   a memorandum of understanding (MoU) that establishes practical information-sharing arrangements between the two institutions. The arrangements will allow the ECA to seek and obtain all the documents and information that it needs to audit ECB banking supervision. Highly confidential documentation will be fully protected, and access to sensitive bank-specific information will be granted in a controlled environment on-site at the ECB. 

Mark Carney speech on challenges for monetary policy in the international monetary and financial system

The Bank for International Settlements (BIS) published a speech given by the governor of the Bank of England (BoE), Mark Carney, at a symposium in Wyoming on 23 August 2019. Mr Carney discussed the growing challenges for monetary policy in the current international monetary and financial system (IMFS) and said there is a need to ‘end the malign neglect of the IMFS and build a system worthy of the diverse, multipolar global economy that is emerging’. 

ECJ asked to rule on litigation stays under the Solvency II regime

Bulgaria asked Europe’s top court to clarify whether it should halt all litigation against a liquidated Cypriot insurance group under the European Union’s prudential regime for insurers, as a Bulgarian insurance group considers suing.

ECB interviews with Andrea Enria consider second financial crisis, Brexit and AML

The European Central Bank (ECB) published two interviews with the chair of its supervisory board, Andrea Enria. The first interview, held on 15 August, discusses Brexit, SMEs and post-crisis banking regulation. The second interview, held on 22 August 2019, focuses on pan-European banking supervision and issues around money laundering. Both interviews examine the preparedness of European banks to withstand another financial crisis. 

ECB decisions on internal procedures relating to passporting, acquisition of qualifying holdings and withdrawal of authorisations of credit institutions published in OJ

Decision (EU) 2019/1376 of the European Central Bank (ECB) of 23 July 2019 on delegation of the power to adopt decisions on passporting, acquisition of qualifying holdings and withdrawal of authorisations of credit institutions, and Decision (EU) 2019/1377 of the ECB of 31 July 2019 nominating heads of work units to adopt delegated decisions on passporting, acquisition of qualifying holdings and withdrawal of authorisations of credit institutions (ECB/2019/26), were published in the Official Journal of the EU. 

FSB summary of industry workshop on implementation of its guidance on continuity of access to FMIs for firms in resolution

The Financial Stability Board (FSB) published an informal summary of an industry workshop on implementation of the FSB’s guidance on continuity of access to financial market infrastructures (FMIs) for a firm in resolution, held in Basel in May 2019. The workshop provided an opportunity for industry participants to share views and experiences in implementing the guidance and to discuss ways to support and enhance this work to facilitate continuity of access to FMIs for a firm in resolution.

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Authorisation, approval and supervision

 

PIMFA’s 2019 CEO sentiment report indicates regulatory matters are biggest concern

The Personal Investment Management & Financial Advice Association (PIMFA) published the results from its 2019 CEO sentiment report, designed to provide a comprehensive overview of key issues and areas of concerns for CEOs in the wealth management and financial advice industry. Regulatory issues are the number one concern, particularly as they relate to the Senior Managers and Certification Regime (SM&CR), the Markets in Financial Instruments Directive (MiFID II) and issues with the Financial Ombudsman Service (FOS).

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Prudential requirements

 

ECB updates supervisory expectations for prudential provisioning of new NPLs

The European Central Bank (ECB) revised its supervisory expectations for prudential provisioning of new non-performing loans (NPLs) to account for new Pillar 1 requirements in Regulation (EU) 2019/630 of the European Parliament and of the Council amending Regulation (EU) 575/2013, the Capital Requirements Regulation, as regards minimum loss coverage for non-performing exposures (NPEs), adopted on 26 April 2019. The European Parliament welcomed the certainty provided by the ECB’s Single Supervisory Mechanism’s (SSM) communication.

EBA publishes reports on EU banks' funding plans and asset encumbrance

The European Banking Authority (EBA) published its annual updates on EU banks' funding plans and asset encumbrance, which helps EU supervisors assess the sustainability of banks' main sources of funding. The results of the funding plans assessment show that banks plan to increase debt issuances over the next three years, in particular unsecured debt instruments. The EBA says the asset encumbrance report shows a stability of the overall weighted average asset encumbrance ratio in 2018, which is positive for the funding structure of the banking sector. 

ECB interviews with Andrea Enria consider second financial crisis, Brexit and AML

The European Central Bank (ECB) published two interviews with the chair of its supervisory board, Andrea Enria. The first interview, held on 15 August, discusses Brexit, SMEs and post-crisis banking regulation. The second interview, held on 22 August 2019, focuses on pan-European banking supervision and issues around money laundering. Both interviews examine the preparedness of European banks to withstand another financial crisis.

ECB decisions on internal procedures relating to passporting, acquisition of qualifying holdings and withdrawal of authorisations of credit institutions published in OJ

Decision (EU) 2019/1376 of the European Central Bank (ECB) of 23 July 2019 on delegation of the power to adopt decisions on passporting, acquisition of qualifying holdings and withdrawal of authorisations of credit institutions, and  Decision (EU) 2019/1377 of the ECB of 31 July 2019 nominating heads of work units to adopt delegated decisions on passporting, acquisition of qualifying holdings and withdrawal of authorisations of credit institutions (ECB/2019/26), were published in the Official Journal of the EU. 

 

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Financial stability, recovery and resolution

 

IMF publishes paper on its framework for measuring global financial vulnerabilities

The International Monetary Fund (IMF) published   a paper describing the conceptual framework that guides assessments of financial stability risks for multilateral surveillance, as currently presented in the IMF’s global financial stability report (GSFR). The framework emphasises consistency in measuring financial vulnerabilities across countries and over time and offers a summary statistic to quantify aggregate financial stability risks. 

State aid: Commission approves further prolongation of Danish resolution scheme for small banks

On 23 August 2019, the European Commission approved   prolongation of a Danish resolution scheme until 30 September 2020 (Case SA.54807). The package will continue to be available for small banks with assets below €3bn. The Commission found the prolongation of the scheme to be in line with EU State aid rules, in particular the 2013 Banking Communication and EU banking rules. 

ECB interviews with Andrea Enria consider second financial crisis, Brexit and AML

The European Central Bank (ECB) published two interviews with the chair of its supervisory board, Andrea Enria. The first interview, held on 15 August, discusses Brexit, SMEs and post-crisis banking regulation. The second interview, held on 22 August 2019, focuses on pan-European banking supervision and issues around money laundering. Both interviews examine the preparedness of European banks to withstand another financial crisis. 

FSB summary of industry workshop on implementation of its guidance on continuity of access to FMIs for firms in resolution

The Financial Stability Board (FSB) published an informal summary of an industry workshop on implementation of the FSB’s guidance on continuity of access to financial market infrastructures (FMIs) for a firm in resolution, held in Basel in May 2019. The workshop provided an opportunity for industry participants to share views and experiences in implementing the guidance and to discuss ways to support and enhance this work to facilitate continuity of access to FMIs for a firm in resolution.

 

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Financial crime

 

SFO guidance on corporate co-operation

Pam Shearing, director and solicitor, and Rubi Palmieri, solicitor, both at Fulcrum Chambers Ltd, consider the implications of the updated corporate co-operation guidance from the UK Serious Fraud Office (SFO).

A look at UK enforcement efforts against domestic bribery

The UK Fraud Advisory Panel’s recent report about unchecked domestic corruption is justified to an extent, but it may be too harsh to make a blanket condemnation of UK enforcement agencies’ approach to tackling economic crime, says Syedur Rahman of Rahman Ravelli.

ECB interviews with Andrea Enria consider second financial crisis, Brexit and AML

The European Central Bank (ECB) published two interviews with the chair of its supervisory board, Andrea Enria. The first interview, held on 15 August, discusses Brexit, SMEs and post-crisis banking regulation. The second interview, held on 22 August 2019, focuses on pan-European banking supervision and issues around money laundering. Both interviews examine the preparedness of European banks to withstand another financial crisis.

Implementing Regulation amending list of ISIL and Al-Qaida associated persons subject to sanctions published in the OJ

Commission Implementing Regulation (EU) 2019/1375, amending for the 305th time Council Regulation (EC) 881/2002 imposing certain specific restrictive measures against certain persons and entities associated with the ISIL (Da’esh) and Al-Qaida organisations, was  published   in the Official Journal of the EU (OJ). Annex I to Regulation (EC) 881/2002 lists the persons, groups and entities covered by the freezing of funds and economic resources under that Regulation. The implementing regulation amends one entry in that list. 

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Conduct requirements

 

PIMFA’s 2019 CEO sentiment report indicates regulatory matters are biggest concern

The Personal Investment Management & Financial Advice Association (PIMFA) published the results from its 2019 CEO sentiment report, designed to provide a comprehensive overview of key issues and areas of concerns for CEOs in the wealth management and financial advice industry. Regulatory issues are the number one concern, particularly as they relate to the Senior Managers and Certification Regime (SM&CR), the Markets in Financial Instruments Directive (MiFID II) and issues with the Financial Ombudsman Service (FOS).

 

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Consumer protection and claims management regulation

 

FCA says claims management companies need to improve financial promotions

The Financial Conduct Authority (FCA) said   that claims management companies (CMCs) must do more to ensure their promotions do not mislead potential customers. According to the FCA, since taking over regulation of CMCs on 1 April 2019, it has reviewed over 200 CMC adverts in various media and found widespread poor practice in CMCs.

 

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Enforcement and redress

 

FCA PPI data reveals large increase in consumer enquiries as PPI complaints deadline looms

The Financial Conduct Authority (FCA) reminded consumers that although there are only seven days until the 29 August 2019 Payment Protection Insurance (PPI) complaints deadline, time and support are still available. The FCA urged the 18% of consumers who say they will make a last-minute decision on whether to complain about PPI to act now. The FCA’s latest PPI data shows a large increase in consumers accessing the FCA support available since the FCA’s final PPI push went live.

FCA issues final reminder on PPI claims

The FCA issued a final reminder to UK consumers to act now before they lose their chance to decide whether or not to claim back money for PPI.

CMA directs RBS and Santander to fix PPI procedures

The Competition and Markets Authority (CMA) issued   the Royal Bank of Scotland (RBS) and Santander with directions requiring them to appoint an independent body to audit their payment protection insurance (PPI) processes after they failed to send, or sent inaccurate, annual PPI reminders. They must also put in place procedures to ensure that similar incidents do not happen again.

Special administrators appointed for AFX Markets Limited

The High Court appointed special administrators to AFX Markets Limited following an application for a special administration order made by the Financial Conduct Authority (FCA). AFX Markets acted as broker for customers trading on its online trading platforms (ww.afxgroup.com and www.stofs.co.uk), principally in foreign exchange and contracts for difference products. The court appointed insolvency practitioners from CG Recovery Limited (which also trades as CG&Co) as special administrators, who will attempt to reconcile and distribute the client monies as quickly as practicable.

 

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Markets and trading

 

FSB summary of industry workshop on implementation of its guidance on continuity of access to FMIs for firms in resolution

The Financial Stability Board (FSB) published   an informal summary of an industry workshop on implementation of the FSB’s guidance on continuity of access to financial market infrastructures (FMIs) for a firm in resolution, held in Basel in May 2019. The workshop provided an opportunity for industry participants to share views and experiences in implementing the guidance and to discuss ways to support and enhance this work to facilitate continuity of access to FMIs for a firm in resolution.

EMIR 2.2: WFE sets out principles to avoid regulatory dissonance in cross-border supervision of CCPs

The World Federation of Exchanges (WFE) published its letter to the European Commission and the European Securities and Markets Authority (ESMA), setting out principles that could avoid international regulatory dissonance in the cross-border supervision of central counterparties (CCPs), as the EU sets about adopting rules to implement EMIR 2.2.

ESMA issues opinions on Slovenian product intervention measures for binary options and contracts for difference

The European Securities and Markets Authority (ESMA) issued  two positive opinions on product intervention measures taken by the national competent authority (NCA) of Slovenia. ESMA’s opinions find that the proposed measures are justified and proportionate and that it is necessary for NCAs of other Member States to take product intervention measures that are at least as stringent as ESMA’s measures.

Law Commission seeks views on intermediated securities

The Law Commission issued a call for evidence asking individual investors, institutions and experts for their views on how well the system of intermediated securities works and where improvement is needed. The Department for Business, Energy and Industrial Strategy (BEIS) asked the Law Commission to conduct a scoping study into the system where investors increasingly hold shares and bonds through a system of computerised credit entries administered by financial institutions, in place of traditional paper certificates held directly by the investor. Feedback is sought by 5 November 2019.

Steps taken to gain control of securitisation structure ruled void (Business Mortgage Finance 6 plc v Greencoat Investments Ltd and others)

Alex Cunliffe, barrister at Lamb Chambers, examines the High Court’s decision in Business Mortgage Finance 6 v Greencoat Investments that all of the steps taken by the defendants to gain control of a true-sale securitisation structure under which the claimant had issued £161,250,000 of sterling-denominated notes and €495.4m of euro-denominated notes were void and of no effect.

 

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MiFID II

 

ECJ order ruling that MiFID II does not apply to bond acquisitions using borrowed funds before 1 November 2007 published in the OJ

An Order of the European Court of Justice (ECJ) of 16 May 2019, issued in response to a request for a preliminary ruling from the Vilniaus apygardos teismas of Lithuania regarding the case of TE, UD, YB, ZC v Luminor Bank AB (Case C-8/18), was  published in the Official Journal of the EU (OJ). The ECJ ruled that the Markets in Financial Instruments Directive 2004/39/EC (MiFID) and the recast Markets in Financial Instruments Directive 2014/65/EU (MiFID II) must be interpreted as not applying to the acquisition of bonds using borrowed funds, such as those at issue in Case C-8/18, in so far as those acquisitions were made prior to 1 November 2007.  

ESMA issues opinions on Slovenian product intervention measures for binary options and contracts for difference

The European Securities and Markets Authority (ESMA) issued two positive opinions on product intervention measures taken by the national competent authority (NCA) of Slovenia. ESMA’s opinions find that the proposed measures are justified and proportionate and that it is necessary for NCAs of other Member States to take product intervention measures that are at least as stringent as ESMA’s measures.

PIMFA’s 2019 CEO sentiment report indicates regulatory matters are biggest concern

The Personal Investment Management & Financial Advice Association (PIMFA) published  t he results from its 2019 CEO sentiment report, designed to provide a comprehensive overview of key issues and areas of concerns for CEOs in the wealth management and financial advice industry. Regulatory issues are the number one concern, particularly as they relate to the Senior Managers and Certification Regime (SM&CR), the Markets in Financial Instruments Directive (MiFID II) and issues with the Financial Ombudsman Service (FOS).

 

Back to top of page

 

Regulation of capital markets and Capital Markets Union

 
ECB interviews with Andrea Enria consider second financial crisis, Brexit and AML

The European Central Bank (ECB) published two interviews with the chair of its supervisory board, Andrea Enria. The first interview, held on 15 August, discusses Brexit, SMEs and post-crisis banking regulation. The second interview, held on 22 August 2019, focuses on pan-European banking supervision and issues around money laundering. Both interviews examine the preparedness of European banks to withstand another financial crisis.

ECB updates supervisory expectations for prudential provisioning of new NPLs

The ECB revised its supervisory expectations for prudential provisioning of new non-performing loans (NPLs) to account for new Pillar 1 requirements in Regulation (EU) 2019/630 of the European Parliament and of the Council amending Regulation (EU) 575/2013, the Capital Requirements Regulation, as regards minimum loss coverage for non-performing exposures (NPEs), adopted on 26 April 2019. The European Parliament welcomed the certainty provided by the ECB’s Single Supervisory Mechanism’s (SSM) communication. 

Law Commission seeks views on intermediated securities

The Law Commission issued a call for evidence asking individual investors, institutions and experts for their views on how well the system of intermediated securities works and where improvement is needed. The Department for Business, Energy and Industrial Strategy (BEIS) asked the Law Commission to conduct a scoping study into the system where investors increasingly hold shares and bonds through a system of computerised credit entries administered by financial institutions, in place of traditional paper certificates held directly by the investor. Feedback is sought by 5 November 2019.

Steps taken to gain control of securitisation structure ruled void (Business Mortgage Finance 6 plc v Greencoat Investments Ltd and others)

Alex Cunliffe, barrister at Lamb Chambers, examines the High Court’s decision in Business Mortgage Finance 6 v Greencoat Investments that all of the steps taken by the defendants to gain control of a true-sale securitisation structure under which the claimant had issued £161,250,000 of sterling-denominated notes and €495.4m of euro-denominated notes were void and of no effect.

 

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Regulation of derivatives

 

ESMA issues opinions on Slovenian product intervention measures for binary options and contracts for difference

The European Securities and Markets Authority (ESMA) issued two positive opinions on product intervention measures taken by the national competent authority (NCA) of Slovenia. ESMA’s opinions find that the proposed measures are justified and proportionate and that it is necessary for NCAs of other Member States to take product intervention measures that are at least as stringent as ESMA’s measures.

EMIR 2.2: WFE sets out principles to avoid regulatory dissonance in cross-border supervision of CCPs

The World Federation of Exchanges (WFE) published its letter to the European Commission and the European Securities and Markets Authority (ESMA), setting out principles that could avoid international regulatory dissonance in the cross-border supervision of central counterparties (CCPs), as the EU sets about adopting rules to implement EMIR 2.2.

 

Back to top of page

 

Investment funds and asset management

 

PIMFA’s 2019 CEO sentiment report indicates regulatory matters are biggest concern

The Personal Investment Management & Financial Advice Association (PIMFA) published the results from its 2019 CEO sentiment report, designed to provide a comprehensive overview of key issues and areas of concerns for CEOs in the wealth management and financial advice industry. Regulatory issues are the number one concern, particularly as they relate to the Senior Managers and Certification Regime (SM&CR), the Markets in Financial Instruments Directive (MiFID II) and issues with the Financial Ombudsman Service (FOS).

 

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Banks and mutuals

 

State aid: Commission approves further prolongation of Danish resolution scheme for small banks

On 23 August 2019, the European Commission approved prolongation of a Danish resolution scheme until 30 September 2020 (Case SA.54807). The package will continue to be available for small banks with assets below €3bn. The Commission found the prolongation of the scheme to be in line with EU State aid rules, in particular the 2013 Banking Communication and EU banking rules.

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Consumer credit, mortgage and home finance

 

FCA implementation group aims to prepare mortgage industry for possible changes to responsible lending rules

The Financial Conduct Authority (FCA) set up an implementation group of trade associations, lenders and third-party administrators to assist mortgage lenders in their preparation for proposed changes to the responsible lending rules. The FCA is currently considering feedback on its consultation (CP19/14) on rules to reduce regulatory barriers to consumers who are up-to-date with payments, and not looking to borrow more, switching to a more affordable mortgage.

 

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Regulation of insurance

 

Top financial services and insurance rulings so far in 2019

From a Court of Appeal ruling on insurance premiums to banks escaping liability in interest-rate rigging cases, the first half of 2019 has seen a deluge of decisions affecting insurers and financial services companies.

IFoA publishes guide to help general insurers mitigate the implications of climate change

The Institute and Faculty of Actuaries (IFoA) published a ‘Practical Guide to Climate Change for GI Practitioners’, which provides an overview of different aspects of insurance operations that may be affected by climate change. The guide includes a discussion of the regulatory context, including the ever-increasing interest of regulators in the financial risks posed by climate change.

Judge refuses to sanction Part VII transfer of a portfolio of life insurance business despite lack of objections from independent expert and the regulators (Re Prudential Assurance Company Ltd and another company)

Insurance & Reinsurance analysis: Prudential Assurance Company (PAC) applied to the High Court for sanction of a Part VII of the Financial Services and Markets Act 2000 (FSMA 2000) insurance business scheme. The aim was to transfer a substantial portfolio of its long-term insurance products (approximately 370,000 annuity policies) to Rothesay Life plc. A number of policyholders (about 15%) objected and several made written and/or oral representations at court. The purpose of the scheme was for PAC to reduce its regulatory capital requirements in connection with a planned demerger of the larger PAC group. The scheme had been the subject of detailed consideration by an independent expert, who concluded that it would not materially affect the interests or reasonable expectations of policyholders. The scheme and the independent expert’s report had also been considered by PAC’s regulators—the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA)—neither of which objected to it. Nevertheless, Snowden J refused to sanction the scheme under FSMA 2000, Pt VII. Charlotte Eborall, barrister at 3VB Chambers, comments on what lessons can be learned from this case for financial services and insurance practitioners.

EIOPA decision on internal rules concerning restrictions of data subjects’ rights published in the OJ

A decision of the Management Board of the European Insurance and Occupational Pensions Authority (EIOPA) on internal rules concerning restrictions of certain rights of data subjects in relation to processing of personal data in the framework of the functioning of EIOPA was published in the Official Journal of the EU (OJ). The decision lays down rules on the conditions under which EIOPA may, in the framework of its internal procedures, restrict the application of the rights enshrined in certain provisions of Regulation (EU) 2018/1725.

EU insurers call for Commission to ensure level playing field with ICS

Insurance Europe and the Pan-European Insurance Forum (PEIF), together representing EU insurers and reinsurers, published a joint letter to the European Commission vice president, Valdis Dombrovskis, on the development of the Insurance Capital Standard (ICS). The advocacy groups stressed the need for a global level playing field for all internationally active insurance groups and all participating jurisdictions in the monitoring period of ICS 2.0 in line with the commitments made in the Kuala Lumpur Agreement. 

ECJ asked to rule on litigation stays under the Solvency II regime

Bulgaria asked Europe’s top court to clarify whether it should halt all litigation against a liquidated Cypriot insurance group under the European Union’s prudential regime for insurers, as a Bulgarian insurance group considers suing.


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Payment services and systems

 

Pay.UK call for information on proposed FPS rule delivering funding mechanism to reimburse no-blame victims of APP fraud

Pay.UK, the authority that runs the UK’s retail payments operations, published a call for information regarding a change request from UK Finance. The change request proposes the introduction of a new Faster Payments System (FPS) Rule which aims to support delivery of part of a voluntary mechanism that been developed to help deal with instances of authorised push payment (APP) scams. The proposed rule introduces a requirement for participants to pay a mandatory volume-based fee (CRM fee) which would fund the reimbursement of all customers who fall within the category of ‘no blame’ as per the assessments outlined within the Contingent Reimbursement Model Code for APP scams (the Code).

 

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Fintech and virtual currencies

 

UK fintechs are worried about Brexit’s impact

Founders of UK-based fintech companies see their country as a leading jurisdiction for the industry, but such pending uncertainties as Brexit lead to a hazier outlook for fintech companies, according to a survey from the Digital Finance Forum published on 26 August 2019.

 

Back to top of page

 

Sustainable finance

 

IFoA publishes guide to help general insurers mitigate the implications of climate change

The Institute and Faculty of Actuaries (IFoA) published a ‘Practical Guide to Climate Change for GI Practitioners’, which provides an overview of different aspects of insurance operations that may be affected by climate change. The guide includes a discussion of the regulatory context, including the ever-increasing interest of regulators in the financial risks posed by climate change.

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Dates for your diary

 

DateSubjectEvent

 

29 August 2019

 

Complaints and redress


Consumer credit


Insurance

 

The final deadline for consumers to make a complaint about potentially being mis-sold a PPI policy.

31 August 2019Regulation of derivativesUntil 31 August 2019, any covered entity belonging to a group whose aggregate month-end average notional amount of non-centrally cleared derivatives for March, April, and May of 2018 exceeds €1.5 trillion will be subject to the BCBS’s margin requirements for non-centrally cleared derivatives when transacting with another covered entity (provided that it also meets that condition).
The average aggregate notional amount phase-five initial margin calculation period in the US is 1 June 2019 to 31 August 2019.
September 2019Risk management and controlsFollowing its consultation on draft guidelines on ICT and security risk management (which seek to establish requirements for credit institutions, investment firms and payment service providers on the mitigation and management of their ICT risks and aim to ensure a consistent and robust approach across the single market) the EBA expects to publish its final guidelines in September 2019.
September 2019UK, EU and international regulators and bodiesFollowing the appointment of the former chair of the Treasury Committee, Nicky Morgan MP, as Secretary of State for Digital, Culture, Media and Sport, the Speaker of the House of Commons, John Bercow, announced that there will be an election for the new chair of the Committee. Nominations are likely to open shortly after the House returns in September 2019, following an announcement by the Speaker.
September 2019Prudential regulationThe BoE will launch its delayed biennial exploratory scenario in September 2019.
September 2019Payment servicesThe tenure of the current membership of the EPC’s Scheme Technical Forum (the scheme is a dialogue channel between the EPC and representatives of technical players who facilitate the processing of transactions under the SEPA schemes) will expire in September 2019.
September 2019Markets and Trading


Regulation of derivatives
ISDA hopes to publish an anonymised and aggregated summary of the feedback to its consultation on pre-cessation issues for LIBOR and certain other interbank offered rates (IBORs) in September 2019.
September 2019Financial crimeAs part of the Government’s Economic Crime Plan the Home Office and HM Treasury will review the current economic crime governance by September 2019 to ensure it is able to effectively implement the actions set out in the plan.
September 2019Financial crimeHM Treasury and the Home Office will establish a quarterly forum to consider the policy implications of the latest understanding of the threat arising from collective threat assessments. The first forum will be held by September 2019.
September 2019Financial crimeHM Treasury will submit a report to the Treasury Select Committee on HMRC’s role as an anti-money laundering supervisor and its relationship with OPBAS by September 2019.
September 2019Consumer creditFollowing CP19/18: Overdraft Pricing and Competition Remedies, the FCA expects to publish any amendments to its final rules in relation to overdraft pricing and competition remedies in September 2019.
September 2019Authorisation, approval and supervisionBanking firms and insurers will be able to start submitting data on Directory (the FCA’s proposed public register that enables consumers, firms and other stakeholders to find information on key individuals working in financial services) individuals using the FCA’s Connect system or the multi-entry facility, around September 2019.
September 2019Sustainable financeThe European Commission technical expert group on sustainable finance is expected to publish its final report on climate benchmarks in September 2019.
September 2019Sustainable financeThe United Nations Environment Programme Finance Initiative (UNEP FI) ‘Principles for Responsible Banking’ will become available for signature in New York in September 2019 during the UN General Assembly.
1 September 2019Regulation of derivativesThe FCA’s new rules restricting the sale, marketing and distribution of contracts for difference like options to retail customers will apply from 1 September 2019.
1 September 2019Markets and Trading


Regulation of derivatives
From 1 September 2019 to 31 August 2020, any covered entity belonging to a group whose aggregate month-end average notional amount of non-centrally cleared derivatives for March, April, and May of 2019 exceeds €0.75 trillion will be subject to the BCBS’s margin requirements for non-centrally cleared derivatives when transacting with another covered entity (provided that it also meets that condition).
2 September 2019Payment servicesPay.UK is holding a seminar with members of the vendor community who are interested in the Confirmation of Payee (CoP) proposition. The seminar takes place on 2 September 2019, 1pm to 4pm at 2 Thomas More Square, E1W 1YN.
3 September 2019Financial crimeCommission Delegated Regulation (EU) 2019/758 supplementing MLD4 with regard to regulatory technical standards for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries will apply from 3 September 2019.
3 September 2019Banks and mutualsThe deadline for comments by interested parties to the CMA on the anticipated acquisition by MUFG Bank Ltd relating to the aviation business of DVB Bank SE is 3 September 2019.
4 September 2019Prudential regulationThe deadline for responses to the EBA’s data collection exercise on non-modellable risk factors is 4 September 2019.
5 September 2019Banks and mutualsThe decision by the ECB on the procedure for recognising non-euro area Member States as reporting Member States under Regulation (EU) 2016/867 on the collection of granular credit and credit risk data (the AnaCredit Regulation) will enter into force on 5 September 2019.
5 September 2019Payment servicesThe decision of the ECB on the procedure and conditions for exercise by a competent authority of certain powers in relation to oversight of systemically important payment systems (SIPS) will enter into force on 5 September 2019.
5 September 2019Markets and TradingThe deadline for responses to ISDA’s three targeted surveys to gather member feedback in the key areas of collateral management, legal documentation and post-trade services and processes is 5 September 2019.
5 September 2019PensionsThe FCA will hold an information session for former members of the British Steel Pension Scheme (BSPS) on 5 September 2019.

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Pietra has completed the Bar Professional Training Course at the University of Law and was called to the Bar in 2019. Prior to the BPTC, Pietra undertook a law degree at the University of Bristol.