UK: Financial Services Update - Week To 9 January 2014

Last Updated: 23 January 2014
Article by Dundas & Wilson

PRA Policy Documents (

PRA confirms Euro-Sterling value for insurance regulatory purposes

The PRA has confirmed that the Sterling value of the Euro for insurance regulatory purposes for 12 months from 31 December 2013 is 85.020 pence.

This value must be used when calculating capital resource requirements and when applying the relevant regulatory returns for insurers to deposit under the PRA rules.

The PRA also states that "no changes have been made this year to the Base Capital Resources Requirement (BCRR) under the EU Insurance Directives."

8 January 2014

PRA Other Publications (

PRA confirms it is undertaking an enforcement investigation against the Co-operative Bank

The PRA has confirmed that it is undertaking an enforcement investigation against the Co-operative Bank, including an analysis of the roles of previous senior managers.

The PRA shall not provide any more information on the investigation until a decision has been reached.

Furthermore, "the PRA will work with the Treasury to ensure that the enforcement investigation and the independent review are sequenced appropriately."

6 January 2014

PRA updates webpage for credit unions

The PRA has updated its webpage on credit unions stating that "Credit unions are not the same as Banks and Building Societies."

The PRA has noted that some credit unions are currently marketing themselves, especially on their websites as offering services akin to banks or building societies and under similar regulatory regime to them also. The PRA states, "credit unions are misrepresenting their situation and the products and services they can offer their members."

Finally, as a note of advice the PRA states, "Credit unions should consider whether statements on their websites are appropriate and take steps to ensure the description of services offered is accurate."

6 January 2014

PRA Supervisory Notices/Final Notices (

No information to update.

FCA Policy Documents (

No information to update.

FCA Other Publications (

FCA confirms it is undertaking an enforcement investigation against the Co-operative Bank

The FCA has confirmed in a press release that it shall be undertaking an enforcement investigation against the Co-operative Bank. The FCA states that "the investigation will look into decisions and events up to June 2013."

The enforcement investigation shall be sequenced alongside the Treasury's independent review.

6 January 2014

FCA Supervisory Notices/Final Notices/Application Refusals (

No information to update.

Lending Standards Board (

No information to update.

British Bankers' Association (

BBA responds to BoE Credit Conditions Survey

The BBA has responded to the Bank of England's Credit Conditions Survey regarding Q4 of 2013. The survey indicated that overall the availability of credit in the corporate sector has grown significantly in Q4 of 2013, the cost of lending has fallen and the lending demand of medium-sized firms has grown strongly.

Richard Woolhouse, the BBA Chief Economist commented: "The survey shows that businesses are finding it easier to access bank borrowing and that costs are falling due to competition between lenders... All of which explains why we are seeing rising business demand for finance. This is reinforced by last week's strong increase in new borrowing to SMEs and confirms that banks are playing their part in the recovery as economic indicators continue to surprise on the upside in 2014."

8 January 2014

Council of Mortgage Lenders Updates (

No information to update.

Treasury Updates (

No information to update.

Treasury Committee Updates (

No information to update.

IMA Updates (

IMA publishes monthly authorised investment fund statistics for November 2013

The IMA has published its monthly authorised fund statistics for November 2013 commenting that equity funds continue to be a bestseller for the eighth month running, with net retail sales of £935 million.

The press release also comments that funds under management were £763 million which is a 16% increase in comparison to November 2012 and net retail sales remained resilient at £1.6 billion.

The UK and Europe were reported as the best-selling regions of equity funds in November 2013.

The IMA Chief Executive, Daniel Godfrey commented: "We saw a continuation of strong investment fund sales in November last year – the top five best-selling IMA sectors indicate that investors are favouring equity and mixed asset funds with property funds also doing well."

9 January 2014

IMA launches new Global Emerging Markets Bond sector

The IMA has launched a Global Emerging Markets Bond sector for those who invest at least 80% of their assets in emerging market bonds. The sector currently contains 25 funds.

By classifying similar funds into groups, the IMA provides investors and financial advisers with the opportunity to compare between the funds before making an investment decision.

The Director of Public Policy at IMA, Jonathan Lipkin commented: "The sector classification process responds to the evolution of the funds market. During a review of the IMA Fixed Income sectors, we recognised that there were enough funds within the Global Bonds sector to establish a new bond sector for funds that invest primarily in emerging markets. While emerging markets bond funds have been a feature of the fund market for some time, we have seen particular growth in recent years."

6 January 2014

ISA Bulletins (

No information to update.

CTF Bulletins (

No information to update.

Financial Services New Legislation (

No information to update.

European Commission (

European Commission publishes draft ITS on supervisory reporting of institutions under CRR

The European Commission has published its draft Implementing Technical Standards (ITS) regarding supervisory reporting of institutions under the Capital Requirements Regulation (575/2013) (CRR).

The draft ITS relates to; own funds requirements and financial information (Article 99); losses stemming from lending collateralised by immoveable property (Article 101(4)(a)); large exposures and other largest exposures (Article 394(1)); leverage ratio (Article 430); and liquidity coverage requirements and net stable funding requirements (Article 415).

9 January 2014

Council and European Parliament (

No information to update.

European Securities and Markets Authority (ESMA) (

ESMA publishes final report on draft technical standards under MiFID on the assessment of acquisitions and increases in qualifying holdings in investment firms

ESMA has published its draft technical standards under Article 10a(8) of the Markets in Financial Instruments Directive (2004/39/EU) (MiFID) on the assessment of acquisitions and increases in qualifying holdings in investment firms.

Under Article 10a(8) of MiFID, Member States are required to publicise necessary information on the assessment process of a proposed acquirer of an investment firm.

At the initial notification stage, the proposed acquirer must provide "adequate and proportionate" information in order for national competent authorities to adequately assess the acquisition.

In order to facilitate this, ESMA must draft Regulatory Technical Standards (RTS) to provide an exhaustive list of the information to be provided under Article 10b(4) of MiFID. ESMA are also required to produce the Implementing Technical Standards (ITS) of the standard forms, templates and procedures for the cooperation and exchange of information between national competent authorities under Article 10(4) of MiFID.

The final report on the draft technical standards provided by ESMA has now been submitted to the European Commission, with a three month deadline for the Commission to decide upon whether it agrees with its contents.

7 January 2014

European Banking Authority (EBA) (

No information to update.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.