Complaints Handling | Implementing the complete FCA complaint definition

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Implementing the regulatory changes in Policy Statement 15/19 will make complaint volumes more transparent; giving the regulator, the public and the media greater awareness of the actual number of complaints received by a firm.

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Posted on 26/08/2015 | 0 Comments

Financial Benchmarks: Last Chance for the Industry?

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The FCA issued a loud wake-up call to the market in its recent thematic review of firms’ oversight and controls in relation to financial benchmarks.1  Although the FCA identified some positive changes, it found that none of the firms it had reviewed between August 2014 and June 2015 (12 in total) had “fully implemented changes across all benchmark activities” and that all firms still have work to do.

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Posted on 4/08/2015 | 0 Comments

Insurance disrupted: General insurance in a connected world


Welcome to the first in a five-part blog series on digital disruption in general insurance (GI). The series accompanies our recently published report, Insurance disrupted

This post outlines our view on digital disruption in GI as a theme; subsequent posts will explore how specific digital technologies could disrupt GI in more detail. 

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Posted on 27/07/2015 | 0 Comments

Qualifying securitisation | What is it and what does it mean for the market?


In September 2015 the EU Commission is expected to bring forward a legislative proposal in on ‘high-quality’ securitisation as part of the Capital Markets Union. The Commission suggests it may be possible to incentivise the issuance of high quality securitisation through a differentiated capital charge relative to standard securitisation. This in turn could re-invigorate the European securitisation market.

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Posted on 29/06/2015 | 0 Comments

Banking: The drivers of legal issues


Merely the cost of doing business? Governments and regulators certainly hope not. It’s been another big year for bank penalties – and we are only half way through.  On 20 May 2015, record fines of £3.6bn were levied on six of the world's largest banks for charges including manipulating the foreign exchange market.  We have analysed the annual reports of 14 major European banks1  in an attempt to understand more fully the drivers and trends of bank legal costs. 

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Posted on 17/06/2015 | 0 Comments

The Fair and Effective Markets Review|Fundamental change in FICC markets


HM Treasury, the Bank of England and the Financial Conduct Authority have delivered the final report on the Fair and Effective Markets Review (FEMR), a broad and comprehensive analysis of the fixed income, currency and commodities (FICC) markets. The review seeks to identify the root causes of the recent misconduct and other sources of perceived unfairness in FICC markets, evaluate the impact of regulatory reforms, and make recommendations to fill the remaining gaps.

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Posted on 12/06/2015 | 0 Comments

Individual and collective responsibility|Rewriting Agatha Christie


When it comes to talking about the new Senior Managers Regime (SMR) for banks, both Andrew Bailey and Martin Wheatley have taken to referring to Agatha Christie’s “Murder on the Orient Express”, characterising the SMR as putting an end to the “safety in numbers” defence. Fans of the novel and film will recall that 12 people enter the victim’s darkened train compartment and take it in turns to stab him. As Poirot observes “They themselves would never know which blow actually killed him”. This may strike readers as rather an extreme example. More prosaically, however, the regulators want to remove ambiguity - for perfectly understandable reasons - and to be able to hold individual Senior Managers to account when things go wrong on their watch. It should always be clear “whodunnit”.

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Posted on 10/06/2015 | 0 Comments

The Financial Conduct Authority goes prudential


Last week the FCA held its first ever Prudential Supervision Forum.  Now whilst it might be surprising to some that the FCA supervises firms on a prudential basis, as they have not been making loud noises about it, other firms are certainly aware of this fact.  As the Head of Specialist Supervision pointed out the FCA prudentially supervises approximately 24,000 firms making their views on issues such as CRD IV key for asset managers, broker dealers and AIFM firms alike.

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Posted on 22/05/2015 | 0 Comments

The PRA’s approach to branch supervision: Implications for regulatory reporting

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Last year, the PRA set out a new approach to the supervision of international banks and clarified how their new branches in the UK will be scrutinised going forward.

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Posted on 22/05/2015 | 0 Comments

The SSM six months on | How banks are getting on and what lies ahead


The start of May marked six months of operation for the Single Supervisory Mechanism (SSM), the new framework for banking supervision in the Eurozone. The largest banks in the SSM have had their first taste of ECB-led supervision. The learning curve for them - and for supervisors at the ECB and national authorities - has been steep. And just as banks grapple with the task of responding to the new regime, the ECB has started tackling its supervisory priorities for 2015.

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Posted on 15/05/2015 | 0 Comments

Management information for conduct risk: Underpinning better decision-making

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Regulators are placing increasing emphasis on the management of conduct risk within financial services firms. Central to this is the right management information (MI). The importance of MI is also set to increase in the UK under the Senior Managers Regime (SMR) and Senior Insurance Managers Regime (SIMR), where strong conduct risk MI will help Senior Managers to demonstrate that they have taken reasonable steps to understand conduct risks and that they have put in place appropriate controls.

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Posted on 29/04/2015 | 0 Comments