Capital Markets in Financial Services UK

Senior Managers and Certification Regime | Changes to Functions, Responsibilities and Scope of Conduct Rules

Senior Managers

On 28 September, the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) issued a suite of publications setting out a number of proposed amendments and optimisations to the Senior Managers and Certification Regime (SMCR) for banking firms. In addition to providing feedback on firms’ grandfathering submissions they introduce a number of changes which will impact existing Senior Manager Function holders (SMFs).

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Posted on 18/10/2016 | 0 Comments

IFRS 9 and Regulatory Capital | Double trouble


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

Marketplace lending | What’s the user perspective?

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Deloitte’s report Marketplace lending – a temporary phenomenon?” explores whether marketplace lenders (MPLs) represent a truly disruptive threat to the UK banking industry. As part of our research, we commissioned YouGov to carry out a survey of individuals and small and medium-sized enterprises (SMEs) to find out more about the awareness, usage and growth potential of marketplace lending in the UK.I


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Posted on 13/09/2016 | 0 Comments

Notification of Conduct Rule breaches | Holding individuals to account


Firms subject to Senior Managers and Certification Regimes (SMCR) are obligated to capture, assess, and report breaches of Conduct Rules by individuals who are in scope of the rules. Holding individuals to account is a core concept of the new regime.

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Posted on 02/09/2016 | 0 Comments

Marketplace lending 101

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A perfect storm

In the wake of the global financial crisis, UK banks pulled back from lending, owing to higher regulatory capital requirements and greater regulatory and shareholder scrutiny of their business models.  They have adopted more risk-averse lending strategies in this environment, with more stringent reviews of the creditworthiness of borrowers.

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Posted on 25/08/2016 | 1 Comments

Is Basel driving banks down a one-way street?


In recent papers1, the Basel Committee (BCBS) has proposed a number of changes to the scope and use of internal modelled approaches.  Taken together, they represent a tectonic shift in banks’ ability to use internal models for regulatory capital purposes:

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Posted on 28/04/2016 | 0 Comments

Cooling the buy-to-let spending spree | PRA proposes higher standards and capital charges for buy-to-let mortgage lending

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The PRA published a Consultation Paper and draft Supervisory Statement on 29 March on more strict standards for buy-to-let lending. The proposals coincided with the FPC’s statement on macroprudential risks on the same day, which included concerns about the buy-to-let property market.

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Posted on 21/04/2016 | 0 Comments

FCA publishes Business Plan | What to expect from the FCA in 2016-17

The FCA published its 2016-17 Business Plan on 5 April. The document is shorter and less detailed than in previous years, with only a brief Risk Outlook section, and makes limited announcements of new work. This may reflect the fact that the new CEO, Andrew Bailey, will not join the FCA until July, although as a member of the FCA Board, he will already have had an opportunity to influence the Plan. Like last year, the FCA has continued with its magic number of seven priority areas, rolling over five areas and prioritising two new areas – wholesale markets and the provision of advice.

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Posted on 11/04/2016 | 1 Comments

The new accountability regimes now live and auditable | The buck stops here


The Senior Managers and Certification Regimes (“SMR”) and new Conduct Rule requirements are high on the agenda for many of our clients’ Audit Committees following their landing earlier this year. The changes, impacting banks, building societies, credit unions and designated investment firms, are designed to improve professional standards and culture. They have led to a flurry of activity across the sector in changing and implementing policies and processes to enable compliance.

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Posted on 07/04/2016 | 0 Comments