Capital Markets in Financial Services UK

The CMU action plan: the long and winding road


The European Commission has published the much anticipated action plan for the Capital Markets Union (CMU). There is no big, bold individual step at the heart of the CMU to capture attention. Instead the action plan includes 33 initiatives across six chapters which individually would not carry much weight, but cumulatively have the potential to turn fragmented pieces of legislation into a cohesive regulatory framework “to mobilise capital in Europe” and understand how regulatory reforms are affecting the financial services industry.

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Posted on 5/10/2015 | 0 Comments

Complaint handling | the importance of a strategic approach to complaint reduction


Complaint reduction should be a priority for every firm. A robust and structured complaint reduction strategy can deliver many advantages, for example:

  • The  customer experience is improved as issues which could have caused complaints are identified and resolved.
  • The morale of front-line staff can improve if they are given the knowledge and skills to resolve customer concerns before they become complaints.
  • The potential to reduce reputational risk through the identification and elimination of common complaint causes, leading to less likelihood of negative regulatory or media activity.
  • A potential reduction in complaint processing costs as incoming volumes, ombudsman referrals and re-worked complaints decrease.

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Posted on 30/09/2015 | 0 Comments

The PRA leverage ratio – implementation draws near

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The PRA has proposed that large UK banks meet a minimum 3% leverage ratio requirement from 1 January 2016. The requirement would apply to banks with more than £50 billion in deposits.

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Posted on 22/09/2015 | 0 Comments

Qualifying securitisation | What is it and what does it mean for the market?


In September 2015 the EU Commission is expected to bring forward a legislative proposal in on ‘high-quality’ securitisation as part of the Capital Markets Union. The Commission suggests it may be possible to incentivise the issuance of high quality securitisation through a differentiated capital charge relative to standard securitisation. This in turn could re-invigorate the European securitisation market.

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Posted on 29/06/2015 | 0 Comments

The Fair and Effective Markets Review|Fundamental change in FICC markets


HM Treasury, the Bank of England and the Financial Conduct Authority have delivered the final report on the Fair and Effective Markets Review (FEMR), a broad and comprehensive analysis of the fixed income, currency and commodities (FICC) markets. The review seeks to identify the root causes of the recent misconduct and other sources of perceived unfairness in FICC markets, evaluate the impact of regulatory reforms, and make recommendations to fill the remaining gaps.

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Posted on 12/06/2015 | 0 Comments

The SSM six months on | How banks are getting on and what lies ahead


The start of May marked six months of operation for the Single Supervisory Mechanism (SSM), the new framework for banking supervision in the Eurozone. The largest banks in the SSM have had their first taste of ECB-led supervision. The learning curve for them - and for supervisors at the ECB and national authorities - has been steep. And just as banks grapple with the task of responding to the new regime, the ECB has started tackling its supervisory priorities for 2015.

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Posted on 15/05/2015 | 0 Comments

Management information for conduct risk: Underpinning better decision-making

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Regulators are placing increasing emphasis on the management of conduct risk within financial services firms. Central to this is the right management information (MI). The importance of MI is also set to increase in the UK under the Senior Managers Regime (SMR) and Senior Insurance Managers Regime (SIMR), where strong conduct risk MI will help Senior Managers to demonstrate that they have taken reasonable steps to understand conduct risks and that they have put in place appropriate controls.

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Posted on 29/04/2015 | 0 Comments

Reporting requirements are expanding rapidly


In recent years we have seen a seismic shift in the tax transparency landscape. The US Foreign Account Tax Compliance Act (US FATCA) has proved to be a watershed moment and we are rapidly moving towards a global network of automatic information exchange spearheaded by the OECD’s Common Reporting Standard (CRS).

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Posted on 14/04/2015 | 0 Comments

Automation will change the character of London businesses | How will Financial Services adapt to the new environment?

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Since the Industrial Revolution, technological advances have transformed business and commerce, and changed the character of jobs that people do. With the rapid progress of digitisation, a further period of major transformation is under way. London, its Financial Services industry included, will inevitably feel the change and will need to respond.

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Posted on 1/04/2015 | 1 Comments

EBA guidelines on limits on exposures to shadow banking entities


On 19th March the European Banking Authority (EBA) issued a consultation paper which sets out its approach to limiting exposures from banks to the shadow banking sector, proposing that the large exposures regime be used to restrict exposures, in addition to existing Pillar II requirements.

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Posted on 26/03/2015 | 0 Comments