Capital Markets in Financial Services UK

Understanding the impact of the transition from LIBOR

Understanding the impact of the transition from LIBOR

In July 2017, the UK Financial Conduct Authority (FCA) reported that the London Interbank Offered Rate (LIBOR), will be phased out as the interest rate index used in calculating floating or adjustable rates for loans, bonds, derivatives and other financial contracts by the end of 2021. LIBOR underpins approximately $300 trillion in financial products and is one of the most significant reference rates used by financial market participants.

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Posted on 12/12/2017 | 0 Comments

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.

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Posted on 08/12/2017 | 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.

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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.

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Posted on 22/11/2017 | 0 Comments

EU Benchmark Regulation: Our Translation, your Transition and the Timeframe

EU Benchmark Regulation

Read the Original Blog Here

The European Commission’s Regulation on indices used as financial benchmarks in financial instruments and financial contracts (the Regulation) goes live on 1 January 2018. It forms part of the EU’s response to a series of high profile investigations in recent years into the alleged manipulation of key financial benchmarks, including LIBOR. These investigations raised concerns over the reliability and integrity of financial benchmarks, which underpin transactions worth trillions of dollars. The Regulation aims to reduce the risk of manipulation, bolster the reliability of benchmarks administered and ultimately provide a safer environment for the use of benchmarks in the EU.

As the countdown to the Regulation begins, we examine some key considerations for firms in the upcoming weeks and months.

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Posted on 17/11/2017 | 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.

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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.

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Posted on 09/11/2017 | 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.

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Posted on 06/11/2017 | 0 Comments

Building Society risk governance arrangements – A case of blurred lines?

Risk management challenge

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

An area that is continually subject to debate and focus within Building Society Board’s is the effectiveness of the risk governance arrangements established within their firms. The vast majority of Building Societies (if not all) within the sector employ a traditional three lines of defence model as part of their risk governance and management structure. Whilst many societies can point to their structure as evidence of the three lines of defence, the Prudential Regulation Authority (‘PRA’) has increasingly challenged Boards and Senior Management as to how they are satisfied that this approach is implemented and that it operates in both an appropriate and acceptable manner.

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Posted on 01/11/2017 | 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.

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Posted on 31/10/2017 | 0 Comments