Driving change in FICC markets

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On 27 October the Fair and Effective Markets Review (FEMR) published a consultation document outlining high-level policy proposals aimed at reinforcing confidence in the fairness and effectiveness of the Fixed Income, Currency and Commodities (FICC) markets, including associated derivatives and benchmarks.

Posted on 31/10/2014 | 0 Comments

Reconsider the principles for Sound Management of Operational Risk

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Banks have invested heavily in their Operational Risk capability in recent years with many continuing to do so. The papers released at the start of the month by the Basel Committee on Banking Supervision (BCBS) indicate that the job is not yet done for such enhancement programmes and these latest proposals are likely to prompt organisations to reconsider the nature of their operational risk framework as well as their approach for operational risk regulatory capital calculation and the associated business case.

Posted on 31/10/2014 | 0 Comments

Results of the ECB’s Comprehensive Assessment

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On Sunday the much-anticipated announcement from the European Central Bank (ECB) on the result of its Comprehensive Assessment was released. The exercise, which was an in depth review of the quality of the largest European banks' assets that included a review of asset quality and a stress test, has occupied the attention of banks over the past several months. Its completion is a significant milestone and a watershed moment for the Single Supervisory Mechanism (SSM), which formally opens for business on 4 November.

Posted on 28/10/2014 | 0 Comments

Key changes for deposit takers in the Single Customer View journey

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The PRA's recent release of Depositor Protection Consultation Paper CP20/14 (CP) sets out proposed changes to the PRA’s rules and is designed to promote consumer confidence and financial stability by improving the speed of compensation payouts in the event of a failure. In this article we provide banks and building societies, regardless of size, with a summary of the key changes being proposed in relation to the next stage of the Single Customer View (SCV) journey.

Posted on 8/10/2014 | 0 Comments

PRA puts ring-fencing in industry's court

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The Prudential Regulation Authority's (PRA’s) first consultation paper on UK bank ring-fencing puts the ball back in industry’s court, holding back from extensive prescription in favour of an approach which gives banks some leeway to tailor solutions to their business models. In most areas there will not be a ‘one size fits all’ approach, and the onus will be on individual banks to demonstrate how their plans comply with legislation and the PRA’s objectives.

Posted on 7/10/2014 | 0 Comments

Resolvability: breaking down the barriers

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The EU’s bank Recovery and Resolution Directive (BRRD) gives EU resolution authorities wide-ranging and potentially very invasive powers to mandate changes to banks’ legal, operational and financial structures in order to improve resolvability, powers which allow resolution authorities a significant amount of discretion. In the wake of the recent announcements from the US FDIC and Federal Reserve, in which they expressed their dissatisfaction with the current state of large banks’ resolution planning in the US, it would also appear that the resolvability hurdle may be higher than previously anticipated. Ensuring that banks are resolvable has been high on the policy agenda for several years, but the practical work needed to achieve this looks set to move forward in earnest over the next year.

Posted on 8/09/2014 | 0 Comments

Consumer credit | Are you ready for the visit from the FCA?

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The FCA have now had a few months to start showing their presence in the consumer credit market and have done so through a number of thematic reviews, firm visits and surveys. They have issued a number of fines and started s166 reviews that have specifically been focused in the pay day lender sector. Using our experience of working with the consumer credit sector over the last couple of years and understanding of the FCA’s expectations more widely, this blog post shares some insights and tips on how consumer credit firms can prepare for an FCA visit and the application process. 

Posted on 8/08/2014 | 0 Comments

Individual Accountability in UK Banking | Details of Senior Management and Certification Regimes Emerge

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The PRA and FCA have published a major consultation paper on the overhaul of the Approved Persons Regime (APR) for banks, building societies, credit unions, and PRA-designated investment firms in the UK. The new framework will make senior individuals more explicitly accountable for specific issues through ‘statements of responsibility’, and a wider range of staff will be subject to a regime of certification and codes of conduct.

Posted on 31/07/2014 | 0 Comments

What should a compliance monitoring plan look like for a consumer credit firm?

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As part of the consumer credit authorisation process the Financial Conduct Authority (FCA) will require all consumer credit firms to detail their compliance monitoring programme and attach a compliance monitoring plan as part of their application pack. This blog post highlights the key areas for consideration for consumer credit firms to contemplate when developing their monitoring plan.  

Posted on 30/07/2014 | 0 Comments