Five things to remember about Basel III

BASEL III

After more than a year of stalled negotiations, the Basel Committee on Banking Supervision (BCBS) announced an agreement on the remaining elements of the Basel III post-crisis bank capital framework. Striking a deal on this package of reforms (often called ‘Basel IV’) is a significant milestone in the post-crisis regulatory journey and a huge achievement for the BCBS.

The announced framework bridges a gap – particularly between American and European regulators – on the extent to which banks can use internal models to determine their capital requirements.

Continue reading

Posted on 08/12/2017 | 0 Comments

PSD2 standard on secure communication: a balancing act

CIR_730x355

Earlier this week, the European Commission published the final Regulatory Technical Standard (RTS) on Strong Customer Authentication and Common Secure Communication under the revised Payment Services Directive (PSD2). In this final version, the Commission confirmed that screen scraping[1] will no longer be allowed once the RTS comes into effect, heeding concerns expressed by the European Banking Authority (EBA) and other stakeholders around security. However, Account Servicing Payment Service Providers (ASPSPs) will still be required to put in place contingency measures in case of unavailability or under performance of their dedicated interfaces during a communication session with Third Party Providers (TPPs).

Continue reading

Posted on 01/12/2017 | 0 Comments

A question of appetite and tolerance – Building Society risk management

Building Society risk management

This blog is part of a series of insights on Building Society risk management.

A key ongoing consideration for the Senior Management of Building Societies is risk appetite and tolerance, and the Society's adherence to it. The question of risk appetite and tolerance has been on the agenda of Board's and regulators for some time now; however, the level of focus given to this in recent years has now increased to the point where no Board or Board sub-committee meeting fails to touch on this in some way.

Continue reading

Posted on 01/12/2017 | 0 Comments

An introduction to the FCA’s focus on vulnerable consumers

FCA’s focus on vulnerable Consumers

The importance the FCA places on protecting vulnerable consumers has become increasingly clear with the recent publication of its Financial Lives and draft FCA Mission: Our Future Approach to Consumers documents. Throughout these documents, as well as in its Business Plan and Mission Statement (both published in April) the FCA emphasises its clear operational commitment to prioritising the needs of the most vulnerable and least resilient consumers.

Continue reading

Posted on 22/11/2017 | 0 Comments

PSD2 | Are firms ready?

PSD2

Two months from today, on 13 January, the revised Payment Services Directive (PSD2)1 will come into effect across the European Union (EU). To understand how prepared the industry is for this deadline Deloitte surveyed over 70 firms across 18 European countries, between August and September, to gather their views.

Continue reading

Posted on 13/11/2017 | 0 Comments

Millennial money – robo-advice for simple financial planning

Millennial money

In our recent report, “The next frontier”, we detailed our views on where automated financial advice - more commonly known as ‘robo advice’ - could spread beyond investments. In this article we take a closer look at simple financial planning – i.e. financial decisions that can be made based on short advice processes, such as choosing between investing in an ISA and paying down debt. To form our views we undertook interviews with experts, key players and start-ups, as well as a survey of over 2,000 consumers.

Continue reading

Posted on 09/11/2017 | 0 Comments

Open Banking | Disruption is afoot for regulators as well as banks

Cyber_Resilience_730x355

The much anticipated “Open Banking” revolution will start in 2018 and will have profound implications for the retail banking sector. But what is perhaps less commonly acknowledged is that Open Banking has the potential to disrupt its own architects too. As the dynamics in retail banking change as a result of new products and services made possible by Open Banking, regulators too may need to rethink the way they operate and how they should redesign themselves to remain fit for the future.

Continue reading

Posted on 07/11/2017 | 0 Comments

The impact of IFRS 9 on capital and regulatory reporting

The impact of IFRS 9

Background

Regulatory reporting and disclosure requirements will change significantly for firms under IFRS 9 as highlighted by recent European Banking Authority (EBA) and Prudential Regulatory Authority (PRA) publications.

IFRS 9 determines how firms should classify and measure financial assets and liabilities for accounting purposes and includes three main areas: Classification & Measurement, Impairment and Hedge Accounting rules. These accounting changes are reflected in regulatory reporting across FINREP, COREP and Pillar 3 disclosures, where some of the first results will be observed.

Continue reading

Posted on 06/11/2017 | 0 Comments

Root Cause Analysis (RCA) | Improving complaint categorisation

Root Cause Analysis (RCA)  improving complaint categorisation

This is the first in a series of blogs in which I will share some of my thoughts about good complaint RCA practices observed in the course of our work across a wide range of firms.

Continue reading

Posted on 31/10/2017 | 0 Comments

A New Regulatory Capital Regime for MiFID Investment Firms - EBA’s Final Recommendations

Shutterstock_358109600_lo

The European Banking Authority (EBA) has published its proposal for a new prudential framework for MiFID investment firms. The recommendations have been submitted to the European Commission (‘the Commission’), which is expected to propose legislation by the end of the year. Industry does not anticipate implementation to occur before 2020.

Continue reading

Posted on 20/10/2017 | 0 Comments