11 ways to navigate financial markets regulation in 2017

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2016 has been another difficult year for the financial sector, with economic and political uncertainty complicating the completion of the post-crisis regulatory repair agenda.

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Posted on 06/12/2016 | 0 Comments

The key IFRS 9 impacts which banks should be planning for

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Deloitte has released a new paper, which helps banks take the first step towards understanding the impact of IFRS 9 accounting rules on their regulatory capital position. This blog post summarises the paper’s key findings.

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Posted on 23/11/2016 | 0 Comments

CRD V/CRR II | To 2020 – and beyond?

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Three years on from CRD IV/CRR being finalised, the EU’s banking sector now faces a revised Capital Requirements Directive and Capital Requirements Regulation (CRD V and CRR II), and a host of other legislative amendments, in a 500+ page package published today. These revisions to CRD V/CRR II and amendments to the Bank Recovery and Resolution Directive (BRRD) are likely to stretch significant regulatory change into the next decade.

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Posted on 23/11/2016 | 0 Comments

European Commission proposes 12 month PRIIPs Delay, but uncertainty around timing of the legislation means firms should maintain momentum

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On 9 November, the European Commission published a legislative proposal to extend the application date of the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs) by one year. PRIIPs requires the disclosure of Key Information Documents (KIDs) when PRIIPs are sold to retail investors. The delay has been widely anticipated by the market and gives manufacturers and distributors of PRIIPs products until 1 January 2018 to put implementation plans in place. The Commission did not amend any other provisions in the Level 1 text. The proposal follows a vote by the EU Parliament on 14 September to reject the EU Commission’s Regulatory Technical Standards (RTS) on PRIIPs and concerns expressed by 24 Member States in the Council in a vote by the Competitiveness Council of the EU on 20 September (see our blog of 20 September for further detail on the Parliament’s rejection of the RTS).

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Posted on 17/11/2016 | 0 Comments

Assurance over bank regulatory capital | ICAEW proposes framework to support confidence in banking regulatory ratios

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The ICAEW on Tuesday published its exposure draft of a technical release “Banking regulatory ratios: ICAEW assurance framework”, which proposes a flexible and modular framework for both internal and external assurance on banking regulatory ratios.

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Posted on 17/11/2016 | 0 Comments

The Evolving Board | Understanding Culture

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There has been no shortage of deeply damaging scandals affecting the financial services sector in recent years, all of which can be linked to governance and cultural failings. Andrew Bailey, who recently moved from CEO of PRA to lead the FCA, has on numerous occasions spoken on the importance of corporate culture and has stressed that “the culture of firms…is of the utmost importance to regulatorsi”.

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Posted on 07/11/2016 | 0 Comments

Bank of England 2017 biennial exploratory stress test | Thinking big

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In 2017 the Bank of England (BoE) will introduce the biennial exploratory scenario (BES) as part of its annual concurrent stress test of UK banks.  Outlined as part of the BoE’s 2015 update to its stress testing approach, the BES complements the annual cyclical scenario (ACS), enabling the BoE to assess firms’ resilience to a wider range of threats.  The BES will be designed to delve into the more complex aspects of a firm’s risk profile, in the process testing not just its resilience, but also its capacity to model and manage risk.

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Posted on 01/11/2016 | 0 Comments

ICT risk assessment under SREP | EBA’s drive to clarity

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On 6 October 2016, the European Banking Authority (EBA) launched a consultation on its draft “Guidelines on Information and Communication Technology (ICT) Risk Assessment” (the Guidelines) under the Supervisory Review and Evaluation Process (SREP). The consultation runs until 6 January 2017.

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Posted on 27/10/2016 | 0 Comments

IFRS 9 and Regulatory Capital | Double trouble

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The Basel Committee on Banking Supervision (BCBS) has released two papers (a consultative document and a discussion paper) on how accounting provisions under IFRS 9 interact with Basel III.

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Posted on 17/10/2016 | 0 Comments

Marketplace lending | Competitive advantages and headwinds

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Swings and roundabouts

The long-term success of the marketplace lending model in the UK will depend on how enduring its competitive advantages are, and how well marketplace lenders (MPLs) mitigate risks. In this blog, we explore some of the principal sources of competitive advantages for MPLs in the UK, and also some of the strongest headwinds facing them.

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Posted on 05/10/2016 | 0 Comments