Banking in Financial Services UK
- Select a blog category
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.
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 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).
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.
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.
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.
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.
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.
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.
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.
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.