UK: Financial Regulatory Developments (FReD) - 20 December 2013

Last Updated: 20 December 2013


FReD wishes its readers a very Merry Christmas and Happy New Year. We will be back on Friday 3 January 2014

  • BRRD final text agreed
  • Banking Reform Bill gets Royal Assent
  • Treasury makes UK Capital Requirements Regulations
  • FCA makes CRD4 rules
  • FCA consults further on consumer credit fees


EU Legislation Tracker

Please follow the relevant link to see the European Parliament's (EP) "OEIL" voting date forecasts and access EP reports and positions on major legislative initiatives:

Bank Recovery and Resolution Directive (BRRD) OEIL file

Single Resolution Mechanism Regulation (SRM Regulation) OEIL file

Omnibus 2 Directive OEIL file


Money Market Funds Regulation (MMFR) OEIL file

Directive on European long-term investment funds (ELTIF Regulation) OEIL file

Central Securities Depositories Regulation (CSD Regulation) OEIL file

Recast Markets in Financial Instruments Directive (MiFID 2) OEIL file

Markets in Financial Instruments Regulation (MiFIR) OEIL file

Market Abuse Regulation (MAR) OEIL file

Benchmarks Regulation OEIL file

Directive on Criminal Sanctions for Market Abuse (CSMAD) OEIL file

Fourth Money Laundering Directive (MLD4) OEIL file

Recast Insurance Mediation Directive (IMD2) OEIL file

Payment Accounts Directive (PAD) OEIL file

Key Information Document for Packaged Retail Investment Products Regulation (PRIPs Regulation) OEIL File

Review of the Payment Services Directive (PSD2) OEIL file

Mortgage Credit Directive (MCD) OEIL file

Contact: Emma Radmore or Juan Jose Manchado

Financial Stability Board (FSB)

FSB reports on international convergence: FSB has published an update on how regulators are conforming to international standards and cooperating with each other. Its most recent research found that 45 of the 61 countries it looked at now have strong standards, with another 14 working towards that goal. Only two jurisdictions have not engaged with FSB and have therefore been declared as non-cooperative. These are Venezuela and Libya, in relation to which evaluation is temporarily suspended. (Source: FSB Reports on International Convergence)

Contact: Emma Radmore or Juan Jose Manchado

European Commission (Commission)

Commission evaluates SSR: The Commission has published a report on the evaluation of the Directive on short-selling and credit default swaps, based on an earlier quantitative assessment by ESMA. The report finds that the SSR has had some beneficial effects in volatility but reduced price discovery slightly. The Commission concludes that, even despite the low levels of disclosure on sovereign debt short-selling, the notification and disclosure thresholds are well calibrated and there is no need to change them. (Source: Report on the Evaluation of SSR)

Contact: Rosali Pretorius or Josie Day

BRRD final text agreed: The Commission, Council and EP have agreed the final text of BRRD. The Directive still needs formal adoption but will take effect from 1 January 2015. The bail-in provisions will apply from 1 January 2016 and national pre-funded resolution funds will have to reach at least 1% of each Member State bank's covered deposits. (Source: Deal Reached on BRRD)

Contact: Rosali Pretorius or Andrew Barber

European Parliament (EP)

EP welcomes basic bank accounts: EP has passed, in plenary session, the proposal that will give all EU residents the right to a basic bank account. MEPs had pressed for open access to accounts so a bank would have to provide an account to anyone legally entitled to open one. They also insisted on clear information standards and the ability to switch to another basic account for a reasonable fee. The Council general approach on this file was also imminent as of 18 December. (Source: EP Welcomes Basic Bank Accounts and Council General Approach)

Contact: Andrew Barber or Josie Day

EP and Council agree on DGSD: The EP and Council negotiators have reached a final position on the Deposit Guarantees Scheme Directive (DGSD). The Directive now needs final adoption and, once adopted, must be transposed within 12 months. Under it, depositors will receive payment more quickly than under current schemes, and there are set limits on the amounts that the schemes must hold. The new text confirms that banks will fund the scheme, which will cover up to €100,000 per depositor and per bank. (Source: EP and Council Agree on DGSD)

Contact: Rosali Pretorius or Andrew Barber

European Banking Authority (EBA)

EBA finalises own funds RTS: EBA has published its third series of regulatory technical standards (RTS) concerning the calculation of own funds requirements under the Capital Requirements Regulation (CRR). The RTS develop the provisions on the deduction of indirect holdings (via intermediate entities such as funds) in financial sector entities, the avoidance of credit-sensitive dividend features, and the calculation of minority interests. (Source: Final Draft RTS on Own Funds (Part 3))

Contact: Rosali Pretorius or Andrew Barber

EBA finalises securitisation retention RTS: EBA has published the final RTS developing the requirements in CRR for investing in securitisations, namely:

  • the requirement on the originator, sponsor or original lender to retain 5% of the material net economic interest in the securitisation, and to disclose certain information to investors; and
  • the due diligence requirements applying to investors in securitisations.

EBA has also finalised standards on the factors national authorities must consider when deciding whether to impose an additional risk weight to the investor's securitisation position where the retention, due diligence or disclosure requirements have not been met. Additionally, EBA is also consulting, until 17 March, on guidelines applicable when national authorities assess whether significant credit risk transfer has taken place on particular cases. (Source: EBA Final Draft Technical Standards on Securitisation Retention and EBA Consultation on Significant Credit Risk Transfer)

Contact: Edward Hickman or Andrew Barber

EBA finalises joint decisions RTS: EBA has published its final draft implementing technical standards (ITS) establishing common procedures and templates for consolidating supervisors and those responsible for subsidiaries to reach joint decisions on own funds and liquidity requirements for the group at consolidated level and for each of the institutions within the group. (Source: EBA ITS on Joint Decisions)

Contact: Andrew Barber or Juan Jose Manchado

EBA finalises CRD 4 passporting and information exchange standards: EBA has published its final draft RTS on passport notifications under the fourth Capital Requirements Directive (CRD4). The RTS set out the information required in branch passport notifications, services passport notifications and where the operation of a branch undergoes changes or is terminated. It has also published the final draft RTS on the content of information exchange between home and host competent authorities regarding branches and service providers, and related ITS establishing the forms, templates and procedures for exchanging information in going concern and liquidity stress situations. (Source: EBA Finalises CRD4 Passporting RTS)

Contact: Andrew Barber or Juan Jose Manchado

EBA finalises bonus cap RTS: EBA has published its final draft RTS on the criteria to identify staff with a material impact on an institution's risk profile who will be caught by the limits in CRD4 on variable remuneration. The RTS lay down common qualitative and quantitative criteria but these may not be enough to identify all relevant staff within an institution. Institutions will therefore need to carry out a tailored self-assessment process to identify all relevant staff and comply with CRD4. The RTS allow for the exclusion of staff who, despite surpassing the quantitative and qualitative thresholds, are not involved in activities with a material impact on the institution's risk profile. This exclusion may require supervisory approval or notification to EBA, depending on the level of remuneration of the individual. (Source: EBA Agrees on Definition of Identified Staff for Remuneration Purposes)

Contact: Andrew Barber or Juan Jose Manchado

EBA finalises market risk standards: EBA has published various final draft technical standards related to market risk, including RTS defining the thresholds that will trigger a supervisory assessment of risks in a bank's trading book. (Source: EBA Publishes Final Draft Technical Standards on Market Risk)

Contact: Andrew Barber or Juan Jose Manchado

EBA finalises liquidity monitoring metrics standards: EBA has published the draft final ITS on additional monitoring metrics for liquidity. (Source: EBA Finalises Liquidity Monitoring Metrics Standards)

Contact: Andrew Barber or Juan Jose Manchado

EBA consults on identifying G-SIIs: EBA is consulting on RTS setting out a methodology for scoring banks' systemic significance and imposing higher prudential requirements on those that are identified as being global systemically important institutions (G-SIIs). The first calculation will take place in early 2015, based on the data for 2014, and resulting higher own fund requirements would have to be met from 1 January 2016. Related ITS and guidelines lay down uniform disclosure requirements that will apply to any large institution with an overall exposure of more than €200 billion. EBA asks for responses by 28 February 2014. (Source: Methodology for G-SIIs)

Contact: Andrew Barber or Juan Jose Manchado

EBA warns consumers on virtual currencies: EBA has issued a warning to consumers on the risks involved in the acquisition, storage and use of virtual currencies. (Source: Warning to Consumers on Virtual Currencies)

Contact: Andrew Barber or Emma Radmore

EBA publishes RWAs consistency reports: EBA has published reports on the consistency of risk-weighted assets (RWAs) in SMEs, residential mortgages and market risk portfolios. The results of these and previous reports have been compiled in a further report on comparability of RWAs used in banks' internal models. Related to this, EBA has also reported on its inquiry into whether the use of internal models allowed in the capital requirements framework contributes to pro-cyclicality. (Source: EBA Publishes Reports on Comparability of RWAs and Pro-cyclicality)

Contact: Andrew Barber or Juan Jose Manchado

European Securities and Markets Authority (ESMA)

ESMA launches CRA3 Q&A: ESMA has launched a Q&A document to clarify aspects of the credit rating agencies Regulation (CRA3) in respect of the publication of sovereign ratings, shareholdings on credit rating agencies, rating methodologies and unsolicited credit ratings. (Source: CRA3 Q&A)

Contact: Rosali Pretorius or Andrew Barber

European Insurance and Occupational Pensions Authority (EIOPA)

EIOPA publishes stability report: EIOPA has published its financial stability report for the second half of 2013. It finds that the insurance, reinsurance and occupational pensions sectors face risks arising from low interest rates and low growth on written premiums. (Source: Second Half-Year Financial Stability Report 2013)

Contact: Rosali Pretorius or Emma Radmore

Agency for the Cooperation of Energy Regulators (ACER)

ACER publishes MoU with market places: ACER has published the template for the bilateral Memoranda of Understanding (MoUs) it enters into with organised market places for the purpose of cooperating on wholesale energy market monitoring. (Source: Cooperation at Union Level)

Contact: Luca Salerno or Josie Day



Banking Reform Bill gets Royal Assent: The Financial Services (Banking Reform) Bill (the Banking Reform Bill) continued its passage through the "ping pong" phase of the legislative process, where Parliament seeks agreement between both Houses. After several days' debate, it received Royal Assent on 18 December. (Source: Banking Reform Bill Gets Royal Assent)

Contact: Andrew Barber or Emma Radmore


Treasury makes UK Capital Requirements Regulations: Treasury has made the Capital Requirements Regulations 2013, which take effect from 1 January 2014 except for certain transitional provisions, which will come into force on a date that will be specified by the Commission. The Regulations, which implement in part the CRD 4 package, primarily deal with the powers and duties of the regulators. They also address procedural aspects for UK regulators' use of their discretion to grant CRR permissions. Otherwise, the Regulations make a number of consequential amendments to various primary and secondary legislation. (Source: Capital Requirements Regulations 2013)

Contact: Rosali Pretorius or Andrew Barber

Information Commissioners' Office (ICO)

ICO fines over spam loan texts: ICO has fined First Financial £175,000 for sending millions of unlawful spam texts promoting payday loan services. The Advertising Standards Authority had also taken action against some of the texts, some of which were made to appear as if they came from friends of the recipient. The ICO urged people who receive spam texts not to reply to them, but to report them to the ICO. (Source: ICO Fines Over Spam Loan Texts)

Contact: Andrew Barber or Howard Cohen

HM Treasury (Treasury)

Treasury updates sanctions lists: Treasury has renewed designations under the Terrorist Asset Freezing etc Act. It has also updated the sanctions lists in relation to Al-Qaida and Syria. (Source: Treasury Updates Sanctions Lists)

Contact: Emma Radmore or Howard Cohen

Treasury publishes Banking Reform Bill legislation responses: Treasury has published a summary of the responses it received to its consultation on secondary legislation to be made under the Banking Reform Bill. It now plans to have all secondary legislation in place by the end of the current Parliament. (Source: Treasury Publishes Banking Reform Bill Legislation Responses)

Contact: Andrew Barber or Juan Jose Manchado


Financial Conduct Authority (FCA)

FCA makes CRD4 rules: FCA has published its rules implementing CRD4 for its regulated community. The package comprises:

  • general guidance on proportionality in relation to the Remuneration Code for, respectively, IFPRU (Prudential Sourcebook for Investment Firms) and BIPRU (the Prudential Sourcebook for Banks, Building Societies and Investment Firms) firms;
  • the CRD 4 Instrument 2013, which makes IFPRU and amends the Glossary and the Senior Management Arrangements, Systems and Controls Sourcebook (SYSC);
  • the CRD 4 (GENPRU and BIPRU Amendments) Order 2013, which amends the General Prudential Sourcebook (GENPRU) and BIPRU;
  • the CRD 4 (Consequential Amendments) Instrument 2013 which makes amendments to many parts of the Handbook;
  • the CRD 4 (Governance and Remuneration) Instrument 2013,which amends the Glossary and SYSC;
  • the CRD 4 (Reporting) Instrument 2013 which amends the Glossary and the Supervision Manual (SUP); and
  • the CRD (AIFMD and UCITS Consequential Amendments) Instrument 2013 which amends the Prudential Sourcebook for UCITS firms (UPRU), the Interim Prudential Sourcebook for Investment Businesses (IPRU (INV)) and SUP.

FCA has also published a list of transitional provisions, and has set out prudential categorisations for investment managers. In principle, the changes all take effect from 1 January 2014. (Source: FCA Makes CRD 4 Rules)

Contact: Rosali Pretorius or Andrew Barber

FCA makes more rules: In addition to the CRD 4 implementation rules and the MMR data reporting rules discussed elsewhere, FCA made, over two board meetings in mid-December:

  • the Handbook Administration (No 32) Instrument 2013. This makes minor changes to various modules of the Handbook at a number of dates;
  • the Conduct of Business Sourcebook (COBS) (Key Features Illustrations for Personal Pensions) (Amendment No 2) Instrument 2013: this takes effect on 6 April 2014 and amends COBS in respect of adjustments to projections for in-force personal and stakeholder pensions;
  • the Conduct of Business (Platforms) (Amendment No 2) Instrument 2013. This took effect on 13 December 2013 and has the effect of delaying the date on which changes to COBS in respect of reporting of information on fund information and voting rights take effect. These rules will take effect at the end of 2015, although the rules and guidance on requests from authorised fund managers for liquidity management purposes will take effect on 31 December as originally planned;
  • the SUP (Reporting and Audit Requirements) (Amendment) Instrument 2013. This takes effect on 31 December and amends SUP in respect of the removal of the Mortgage Lending and Administration Return restriction that requires firms to report in sterling;
  • the Compensation Sourcebook (Investments by Large Unincorporated Associated and Certain Large Partnerships) Instrument 2013. This took effect from 13 December and ensures FCA's rules properly implement the eligibility criteria from the Investors Compensation Directive; and
  • the Listing Rules (Annual Financial Report) Instrument 2013. This took effect from 13 December and removes certain overlaps between the Listing Rules and new reporting requirements.

(Source: FCA Makes More Rules)

Contact: Emma Radmore or Juan Jose Manchado

FCA fines for appointed representative failings: FCA has fined Porta Verde Financial Services Limited £25,000 for failings in its appointment, management and monitoring of two appointed representatives (ARs). The firm was a regulatory consultancy, which provided compliance support and oversight to start-up businesses and was principal to 22 ARs. FCA found that:

  • one AR sold certain home emergency cover to customers; and
  • another AR sold insurance for satellite television equipment.

In both cases, customers complained to the then Financial Services Authority (FSA) about misleading information they had been given on calls from the ARs. Although the firm made changes to the ARs' sales scripts once the FSA told it of the problems, customers were still misled or missold policies. FSA eventually asked the firm to consider remedial action for customers, which the firm eventually agreed to. The AR agreements were terminated in June 2012 and the firm has since applied to cancel its permission. FCA said the fine would have been over £350,000 had the firm not produced evidence of significant financial hardship. (Source: FCA Fines for Appointed Representative Failings)

Contact: Emma Radmore or Josie Day

FCA publishes MMR FAQs: FCA has published a set of FAQs for mortgage lenders to help them prepare for implementation of the mortgage market review (MMR). The full list of questions now relate to:

  • contract variations, product switches and further advances;
  • arrears and payment shortfalls;
  • advice and execution-only;
  • responsible lending; and
  • pipeline business.

(Source: FCA Publishes MMR FAQs)

Contact: Andrew Barber or Kam Dhillon

FCA makes MMR data reporting rules: FCA has published a feedback statement and final rules on data reporting under the MMR. The new rules will come into force on 1 January 2015, but FCA warns firms they will need to start planning for change now. The SUP (Product Sales Data and Mortgage Lenders and Administrators Return) (Amendment) Instrument 2013 amends SUP:

  • in respect of the requirements to report individual product sales and performance data on regulated mortgage contracts; and
  • in respect of integrated regulatory reporting.

The new rules include detail on data items and relevant forms. (Source: FCA Makes MMR Data Reporting Rules)

Contact: Andrew Barber or Kam Dhillon

FCA consults further on consumer credit fees: FCA is consulting on an amendment to its proposals for fees for firms applying for consumer credit permissions. Following industry feedback, it proposes not to change the proposed application fees for limited permission firms, but will now differentiate for full authorisation applicants, depending not only on whether the application is straightforward, moderately complex or complex. There will be bandings for firms whose annual consumer credit income is (i) up to £50,000; (ii) over £50,000 to £100,000; (iii) over £100,000 to £250,000; (iv) over £250,000 to £1,000,000; and (v) over £1,000,000. The effect of this is that the smallest firm making a straightforward application would pay only £600 while the largest firm making a complex application would pay £15,000. There will no longer be a "very complex" category. Comments are due by 16 January 2014. (Source: FCA Consults Further on Consumer Credit Fees)

Contact: Andrew Barber or Emma Radmore

FCA fines for APER breach: FCA has fined Christopher Wilford, former finance director of Bradford & Bingley, £30,000 for failing to provide the board with up-to-date information in advance of a rights issue. It found Mr Wilford had received information that the financial outlook for the firm might be worse than expected but did not raise this with the board for investigation. FCA found he had breached the Statements of Principle for Approved Persons (APER). (Source: FCA Fines for APER Breach)

Contact: Howard Cohen or Emma Radmore

FCA bans individuals for OPS failings: FCA has banned three individuals from the industry and banned a further individual from holding any senior position following investigations by it and the Pension Regulator into two financial advisory firms. CBW Trustee Limited and CBE Pensions Forensics Limited had appointed the firms to advise six occupational pensions schemes (OPS). FCA found that advice given by the four individuals associated with the firms led to the schemes unnecessarily moving their investments around, which resulted in the schemes investing in potentially unsuitable assets and generated £4 million in commissions. FCA found:

  • Michael Conway was a director of CDW but did not disclose that he might benefit from services provided to it by one of the financial advisory firms. He also influenced advice for personal gain, and facilitated a sham introduction agreement. He received over half of the commission;
  • Andrew Powell allowed CDW to influence his advice, despite misgivings, and personally benefited from this;
  • Martin Gwynn owned one of the advisory firms. He did not get regulatory approval for appointing Andrew Powell as a director, did not monitor Mr Powell's advice and did not properly investigate payments to Mr Conway and others; and
  • Daniel Conway was a director of the other advisory firm which was partly owned by Michael Conway. He was appointed with no prior experience of advising OPSs and failed to take steps to understand his role or to offer independent or suitable advice.

Both advisory firms have since lost their permissions. (Source: FCA Bans Individuals for OPS Failings)

Contact: Emma Radmore or Kam Dhillon

FCA confirms fine for mis-sales of GTEP: FCA has confirmed a fine of £100,000 on Westwood Independent Financial Planners for mis-selling Geared Traded Endowment Policies (GTEPs). The firm had appealed to the Tribunal, but the Tribunal upheld FCA's decision. The firm, a Scottish firm, has now entered sequestration. (Source: FCA Confirms Fine for Mis-sales of GTEP)

Contact: Emma Radmore or Andrew Barber

Prudential Regulation Authority (PRA)

PRA speaks on Solvency II: Julian Adams has spoken on PRA's policy development towards Solvency II and how regulators and firms should gear up for 2016 implementation. He said PRA's rules would follow a different approach to the current Insurance Prudential Sourcebook (INSPRU). He said PRA would use "intelligent copy out" of the Directive and said it would take a pragmatic and proportionate approach to applying EIOPA's preparatory guidelines. He also spoke on pre-application for internal models and potential global regulatory changes. (Source: PRA Speaks on Solvency II)

Contact: Rosali Pretorius or Emma Radmore

PRA publishes statement on Solvency II preparations: PRA has issued a supervisory statement setting out its approach to implementing EIOPA's guidelines on preparations for Solvency II and its expectation that firms will apply the guidelines in a way appropriate to the characteristics of their business. EIOPA's guidelines cover governance, own risk and solvency assessment, regulatory reporting and pre-application for internal models. On the latter PRA has also published principles on how to submit good quality documentation during the internal model approval process. (Source: Solvency II: Applying EIOPA's Preparatory Guidelines and Documentation in the Internal Model Approval Process)

Contact: Rosali Pretorius or Emma Radmore

Upper Tribunal (Tax and Chancery Chamber) (Tribunal)

Tribunal bans trader for lying: The Tribunal has backed FCA's decision to ban and fine David Hobbs. Previously, Mr Hobbs had appealed the then FSA's finding of market abuse, and the Tribunal had agreed he had not committed market abuse although it found he had lied. FCA appealed to the Court the part of the Tribunal's decision that held Mr Hobbs was fit and proper. The Court of Appeal said the Tribunal had to consider the issue of Mr Hobb's fitness and propriety even if he was not guilty of market abuse. The Tribunal then found that putting forward a false defence and maintaining it in evidence before the Tribunal meant Mr Hobbs was not fit and proper. Accordingly, it upheld the ban. (Source: Tribunal Bans Trader for Lying)

Contact: Luca Salerno or Emma Radmore

Financial Ombudsman Service (FOS)

FOS publishes newsletter: The FOS's latest newsletter focuses on complaints relating to debt collection and mobile phone insurance. (Source: Ombudsman News Issue 114)

Contact: Emma Radmore or Andrew Barber


Basel Committee of Banking Supervisors (Basel Committee)

Basel Committee revises framework for banks' equity investments in funds: The Basel Committee has published a revised framework for the prudential treatment of banks' equity investments in funds. The framework, which consists of three approaches (look through, investment mandate-based and fall back 1,250% risk weight), is now adjusted to reflect the leverage of the fund. (Source: Capital Requirements for Banks' Equity Investments in Funds - Final Standard)

Contact: Rosali Pretorius or Andrew Barber

Basel Committee publishes second report on consistency of trading book RWAs: The Basel Committee has published its second report on the regulatory consistency of RWAs in the trading book, which concludes that internal models are behind most of the variation in trading book RWAs across banks. This confirms the need for greater disclosure on RWAs, narrower modelling choices and harmonisation of supervisory approval of internal models. Further measures to tackle this inconsistency will be adopted through the ongoing fundamental review of the trading book and forthcoming improvements to Pillar 3 disclosures. (Source: Second Report on Consistency of Trading Book RWAs)

Contact: Rosali Pretorius or Juan Jose Manchado

International Association of Insurance Supervisors (IAIS)

IAIS consults on options for BCR: IAIS has launched a consultation on the design of the field testing that will inform the development of the global Basic Capital Requirement (BCR) for global systemically important insurers. The BCR will be followed by the development of higher loss absorbency requirements and, later, a risk-based group-wide global insurance capital standard applicable to internationally active insurance groups from 2019. (Source: BCR Public Consultation)

Contact: Rosali Pretorius or Emma Radmore

Islamic Financial Services Board (IFSB)

IFSB issues new capital standards: IFSB has issued two new standards for Islamic financial institutions. IFSB-15 lays down capital adequacy requirements for Islamic institutions with the exception of Islamic insurance institutions and Islamic collective investment schemes, combining and expanding previous standards and guidelines. IFSB-14 covers risk management at Islamic insurance institutions. (Source: IFSB Published Standards)

Consult: Matthew Sapte or Rosali Pretorius

International Organisation of Securities Commissions (IOSCO)

IOSCO publishes reports on market competition and fragmentation: IOSCO has published reports on the impact of trading fee models on trading behaviour and on the regulatory issues raised by changes in market structure. (Source: Impact of Trading Fee Models on Trading Behaviour and Regulatory Issues Raised by Changes in Market Structure)

Contact: Rosali Pretorius or Luca Salerno

The Lending Standards Board (LSB)

LSB updates Lending Code: LSB has issued an update of the Lending Code. The December 2013 version contains new text on complaints analysis and compliance with the Debt Management Plan Protocol. (Source: LSB Updates Lending Code)

Contact: Andrew Barber or Howard Cohen

LSB publishes reviews: LSB has published themed reviews on:

  • unarranged overdraft facilities and cancellation or reduction of arranged overdraft facilities. The review found firms were largely compliant with the Lending Code guidance on information lenders give to customers, whether they monitor customers who might use an unarranged overdraft and how they decide to reduce or cancel an arranged overdraft. It also concluded that the Code's provisions did not need to change; and
  • credit reference agency reporting and disclosures. This review looked at information customers get before, during and after the sales process in relation to recording of information at credit reference agencies. It found good standards of compliance but identified a few firms that were in breach of some requirements, which the firms now need to address.

(Source: LSB Review of Overdrafts and LSB Review of Credit Reference Agency Reporting)

Contact: Andrew Barber or Howard Cohen


Financial Crime

The Bribery Act – Has It Made A Difference?: We have updated our previous overview of the Bribery Act to take into account the Serious Fraud Office's latest guidance. (updated October 2012)

UK authorities move forward on tougher financial crime prevention: Emma Radmore wrote an article for Financial Regulation International on current consultations on sentencing and deferred prosecution agreements. (August 2013)

Sanctions restrictions do not prevent payment of debts: Richard Caird and Tom Rocher comment on the judgement in DVB Bank SE and others v. Shere Shipping Company Limited and others. (August 2013)

Deferred Prosecution Agreements: Emma Radmore has written an article for Financial Regulation International on the introduction of Deferred Prosecution Agreements in the UK. (June 2013)

Anti-Bribery and Corruption Laws in Key Jurisdictions: Lawyers from Dentons offices in six jurisdictions prepared a table comparing key provisions of anti-corruption laws for Thomson Reuters Compliance Complete. (May 2013)

Preventing Financial Crime: Emma Radmore has written an article for Financial Regulation International on recent developments in financial crime prevention. (April 2013)

The Evolving Financial Sanctions Landscape – UK and US Perspectives: Emma Radmore, Thomas Laryea, Michael Zolandz and Peter Feldman have written an article for Financial Regulation International on financial sanctions under the UK and US regimes. (November 2012)

Dealing with Anti-Corruption Laws – the Bribery Act and FCPA in Context: This article summarises the effects of the Bribery Act and US Foreign Corrupt Practices Act. For further information, please contact Emma Radmore or Dominic Sedghi (London), or Michelle Shapiro (New York). (May 2012)

Investment Services and Markets Reform

Consumer Credit Regulation: Are you ready for the seismic shift?: Please contact Andrew Barber, Emma Radmore or Howard Cohen if you have any questions about what you need to do to prepare for the transfer of consumer credit regulation to FCA.

Are you clear on EMIR: Rosali Pretorius and Emma Radmore have written an article for Compliance Monitor on EMIR's application and recent developments. (October 2013)

Mobile Banking - FCA sets out the risks: Candice Chapman, Andrew Barber and Winston Green comment on FCA's thematic review of mobile banking. (See also FReD 30 August.) (August 2013)

Mobile Network Operator Billing: Andrew Barber and Alex Haffner have written an alert on the effects of the Payment Services Directive on the development of direct-to-phone-bill purchases by mobile network operators. (August 2013)

US Government announces six-month delay in FATCA rules: John Harrington, Jeffrey Koppele, Marc Teitelbaum and Jerome Walker have written an update on the delay in implementing certain elements of FATCA. (July 2013)

Take aim for AIFMD implementation: Emma Radmore and Kam Dhillon have written an article for Compliance Monitor on the final steps towards implementation of the AIFMD. (July 2013)

Taking the Credit - the Transfer of Consumer Credit Regulation: Andrew Barber, Emma Radmore and Juan Jose Manchado have written an article for Compliance Monitor on the transfer of consumer credit regulation to FCA. (April 2013)

Last Lap to Legal Cut-Over: Emma Radmore has written an article for Compliance Monitor on FSA's first two consultations on preparing for the new regulatory regime. (January 2013)

A New Handbook for a New Era?: Emma Radmore has written an article for Thomson Reuters Compliance Complete on FSA's proposals to update the General Provisions Sourcebook for legal cut-over. (October 2012)

Treasury Publishes Banking Reform Bill: Read our summary of the Bill implementing the Vickers reforms into FSMA. (October 2012)

RDR: How Long Can it Last?: Emma Radmore and Andrew Barber have written an article for Compliance Monitor on the future of the Retail Distribution Review. (October 2012)

What's next for LIBOR? Summary of the Wheatley Review Recommendations: We have written a summary of the Wheatley 10-point plan for the reform of the LIBOR process. (September 2012)

Rate Setting and Regulation: In Everyone's Interests?: Rosali Pretorius and Katharine Harle wrote an article for Financial Regulation International on the background to LIBOR setting and potential regulatory action. (August 2012)

Money through your mobile – regulation of m-payments: Andrew Barber and Emma Radmore have written an article for Compliance Monitor on the regulatory aspects of mobile payments. (May 2012)

MiFID 2 – Prescription and Change: Emma Radmore wrote an article for Compliance Monitor on the breadth of the proposals to amend the Markets in Financial Instruments Directive (MiFID 2). (January 2012)

Prudential Regulation

UK Treasury Publishes Banking Structure Reform Plans: This article summarises the June 2012 White Paper on implementation of structural change to UK banking (as covered in FReD 15 June). For more information, please contact Rosali Pretorius, Emma Radmore or Andrew Barber. (June 2012)

EU Living Wills Plans – the Key Proposals: This article is the latest in our suite of articles about Living Wills and Recovery and Resolution Plans looks at the European Commission's proposals. For further information, please contact Rosali Pretorius or Andrew Barber. (June 2012)

Living Wills update: We have produced an update on FSA's current plans for Recovery and Resolution Plans. For further information, please contact Rosali Pretorius or Andrew Barber. (May 2012)

Asset management

The Alternative Investment Fund Managers Directive – Theory Becomes Reality: Rosali Pretorius and Emma Radmore wrote an article on implementation of the AIFMD for the Global Asset Management & Servicing Review 2013/14 published by Euromoney Yearbooks.

Product Regulation

More Protection for Retail Markets – the EU's PRIPs Package: We have written a detailed summary of the PRIPS, IMD2 and UCITS V proposals. (July 2012)

Another Stable Door?: Emma Radmore and Katharine Harle wrote an article for Thomson Reuters Complinet on IOSCO's proposals for complex product distribution. (April 2012)

Enforcement and Litigation

Court of Appeal dismisses interest rate swap appeal: Richard Caird and Kattalin Truman have written a briefing on the Court of Appeal judgment in the appeal by Mr Green and Mr Rowley against the decision that RBS had not missold an interest rate swap. (October 2013)

Appeal dismissed in first interest swap case: Richard Caird and Kattalin Truman have written an article on the Court of Appeal's decision in the first interest rate swap case in the English courts. (August 2013)

It's all in the detail: a cautionary tale for handling complaints: Richard Caird and Felicity Ewing have written an article on the FCA's fine on Policy Administration Services.

Having Your Cake and Eating It: FOS Award is no Bar to Issuing Proceedings: Katharine Harle has written an article for Compliance Monitor on the High Court award in Clark and another v. In Focus Asset Management & Tax Solutions Ltd. (January 2013)

The Not So Remote Risks of Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the case of Rubenstein v. HSBC Bank plc. (September 2012)

The Long Arm of FSA: Overseas Firms and Senior Management Beware: Emma Radmore and Katharine Harle have written an article for Compliance Monitor on the lessons from recent FSA enforcement cases involving overseas firms and their approved persons. (August 2012)

More Confusion on Client Money: Rosali Pretorius and Josie Day have written an article on the Supreme Court decision in the Lehman client money case. (March 2012)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Events from this Firm
28 Sep 2017, Seminar, London, UK

On 26 July the FCA published its long-expected consultation paper on the extension of the SMCR to all FCA-authorised firms. The so-called "core regime" introduces the key concepts of regulator-approved senior managers, firm-approved certification staff and conduct rules applicable to virtually all staff.

3 Oct 2017, Conference, Zurich, Switzerland

As the founding Partner of the Europe-Iran Forum, Dentons Europe will once again support this year’s event. This compelling event which explores all Iran-related topics will take place in Zürich on 3rd and 4th October.

4 Oct 2017, Workshop, London, UK

We are hosting an interactive workshop where we will run a mock High Court trial of an employee competition case – where the members of the audience are the judges. The session, aimed at in-house counsel and HR professionals, will offer an insight as to how disputes involving employees moving to a competitor play out in practice.

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