UK: Financial Services Industry Update - 28 February 2014

Last Updated: 14 March 2014
Article by Philip Mackay, Aidan Campbell, Karagh Gilliatt and Kyle Abrey

PRA POLICY DOCUMENTS (www.bankofengland.co.uk)

PRA consults on supervising international banks and branches

The PRA has issued a consultation paper on the supervision of international banks and its approach to branch supervision (CP4/14) to be included as a new Part to its Rulebook, Incoming firms and third country firms. This Part contains proposed rules which require deposit takers and designated investment firms that operate through European Economic Area (EEA) and non-EEA branches to complete a new data collection return, which will become effective in 2015. In addition, it is proposed that non-EEA firms will be required to take all steps within their control to have adequate provision made in resolution plans for UK branches. The draft text can be found in Annex B to CP4/14 and the responses must be submitted by 27 May 2014.

26 February 2014

PRA OTHER PUBLICATIONS (www.bankofengland.co.uk)

No information to update.

PRA SUPERVISORY NOTICES/FINAL NOTICES (www.bankofengland.co.uk)

No information to update.

FCA POLICY DOCUMENTS (www.fca.org.uk)

FCA policy statement on detailed rules for consumer credit regime

The FCA has issued a policy statement on detailed rules for the FCA regime for consumer credit that sets out its final rules for the new consumer credit regulatory regime (PS14/3). PS14/3 contains details of the changes made by the FCA to its original proposals following consultations in October and December 2013.

The majority of the rules set out in PS14/3 will come into force on 1 April 2014 to coincide with the date on which the FCA will take over regulation of consumer credit.

28 February 2014

FCA consults on consumer credit-related amendments to DEPP and EG

The FCA has published a consultation paper on amendments to its Decision Procedure and Penalties Manual (DEPP) and its Enforcement Guide (EG) relating to the FCA's powers to prohibit or restrict EEA authorised payment institution and electronic money institutions from undertaking certain consumer credit business in the UK (CP14/3). A draft FCA Handbook instrument (Consumer Credit (Statutory Notices) Instrument 2014) is included in Appendix 1 to CP14/3. Responses to CP14/3 must be submitted by 14 March 2014.

28 February 2014

FCA OTHER PUBLICATIONS (www.fca.org.uk)

FCA publishes notes to assist with completion of AIFMD Schedule of AIFs form for full-scope AIFMs

The FCA has published notes to facilitate the completion of the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD) Schedule of AIFs form (which applies to alternative investment funds) for full-scope AIFMs (alternative investment fund managers). The Schedule of AIFs form requires details of those AIFs that an AIFM intends to manage or market or both. This will apply to AIFs domiciled in the UK, the EEA and outside the EEA and those described in Articles 74 and 75 of the Alternative Investment Fund Managers Regulations 2013 (SI 2013/1773).

26 February 2014

FCA reports on mortgage lenders arrears management and forbearance

The FCA has published a report (TR14/3) setting out the key findings of its thematic review of mortgage lenders' arrears management and forbearance. Although the FCA found that arrears management in firms has improved since the FSA, it still wants firms to provide better support to front-line staff, provide greater flexibility to support fair treatment of individual customers and to take proactive steps to recognise borrowers vulnerable to potential interest rate rises. The report coincides with the mortgage market review (MMR) which comes into force on 26 April 2014.

See also: accompanying press release

25 February 2014

FCA expectations for firms unable to comply with EMIR risk mitigation requirements for non-cleared trades

The FCA webpage has been updated to include details on its supervisory approach on risk mitigation requirements under EMIR (Regulation 648/2012) for non-cleared trades relating to portfolio reconciliation, dispute resolution and compression. The update notes that firms are expected to have a detailed and realistic plan to achieve compliance with EMIR "within the shortest time-frame possible". These plans should be completed and implemented by 30 April 2014 and firms should be able to demonstrate compliance after this date.

24 February 2014

FCA SUPERVISORY NOTICES/FINAL NOTICES/APPLICATION REFUSALS (www.fca.org.uk)

FCA bans former CEO for lack of integrity

The FCA has published the final notice it has issued to Arnold Eber, the former chief executive officer (CEO) of CIB Partners Ltd (CIB), prohibiting him from performing any function relating to any regulated activity. As CEO and sole director of CIB, Mr Eber demonstrated a lack of integrity by causing CIB to issue inaccurate and misleading information when advising SLS Capital S.A. (a Luxembourg-based special purpose vehicle that issued bonds underpinning investments that were sold to investors in the UK). This information was relied on by third parties as giving some assurance that sufficient asset cover was in place for the SLS bonds making his failings all the more serious. In addition, Mr Eber also failed to be candid and truthful in all his dealings with the FSA.

27 February 2014

FCA fines FXCM £4 million for making unfair profits and failing to make disclosures to the regulator

The FCA has published the final notice it has issued to Forex Capital Markets Ltd and FXCM Securities Ltd, fining them £4 million for retaining the benefit of favourable price movements that should have been passed to customers and for failing to make appropriate disclosures to the FSA concerning these issues. The fines are imposed for breach of Principle 6 (Customers' interests) and the best execution rules set out in section 11.2 of the Conduct of Business sourcebook (COBS) and section 7.5 of the old Conduct of Business sourcebook (COB).

See also: press release

26 February 2014

FCA bans former derivatives trader following Upper Tribunal decision

Following the decision of the Upper Tribunal (Tax and Chancery Chamber) in December 2013, the FCA has published the final notice it has issued to David Hobbs, a former derivatives trader, prohibiting him from performing any function in relation to any regulated activity. The tribunal held that Mr Hobbs was not a fit and proper person to perform functions relating to regulated activities after he presented a false defence to the FSA during the course of its investigation and continued to maintain this position before the tribunal. Mr Hobbs was held to have displayed a distinct lack of integrity in his behaviour.

25 February 2014

LENDING STANDARDS BOARD (www.lendingstandardsboard.org.uk)

No information to update.

BRITISH BANKERS' ASSOCIATION (www.bba.org.uk)

The BBA urges Government to support savers

Ahead of the Chancellor's statement on 19 March 2014, the BBA has urged the Government to simplify the ISA regime and introduce a new work-based account to encourage millions of employees to build-up a nest egg as they earn in order to foster a savings culture. This follows evidence that British people have been saving much less compared to their European counterparts over the past three decades. The BBA is also calling for the ISA cash allowance to be raised to the same £11,880 level as that for stocks and shares ISAs for tax year 2014/15. Anthony Browne, the chief executive of the BBA commented: "We think there are some quite simple things the Government could do that would make it easier and more attractive to save. A workplace savings account could encourage millions to put money aside for their futures and more should also be done to make ISAs simpler and more rewarding for savers."

27 February 2014

COUNCIL OF MORTGAGE LENDERS UPDATES (www.cml.org.uk)

CML calls for speedy UK consultation on implementing EU mortgage directive

Following the publication of the mortgage credit directive by the European Union, the CML has called for the Treasury and the FCA to begin to consult publicly as soon as possible about how the directive will be implemented and what changes there may be for UK firms and consumers.

Jackie Bennett, the CML's head of policy stated: "Formal publication of the directive finally brings to an end a long period of uncertainty about what European proposals for regulating mortgages will look like. But that means the start of the next stage in the process for UK firms and consumers"

28 February 2013

TREASURY UPDATES (www.hm-treasury.gov.uk)

Finance Bill 2014 to be published on 27 March

The Exchequer Secretary to the Treasury, David Gauke, has announced that the Finance Bill 2014 and accompanying explanatory notes will be published on 27 March 2014. This will follow the 2014 Budget, to be delivered on 19 March 2014.

28 February 2014

Updated FATCA UK implementing regulations guidance published

HMRC has published revised guidance on the UK's Foreign Account Tax Compliance Act (FATCA) implementing regulations which is part of the US Hiring Incentives to Restore Employment Act of 2010. The updated guidance highlights the sections which have been amended since publication in August 2013 and include the discussion of financial institutions (section 2), financial accounts (section 3) and due diligence (section 4).

27 February 2014

TREASURY COMMITTEE UPDATES (http://www.parliament.uk/business/committees/committees-archive/treasury-committee/)

Treasury Committee inquiry into SME lending inquiry: terms of reference

The House of Commons Treasury Committee has published a press release announcing the terms of reference for its inquiry into lending to small and medium sized enterprises (SMEs). The press release details the issues which the committee invites written evidence on by 28 March 2013 including whether the regulatory perimeter be expanded to include more lending and selling of financial products to SMEs.

28 February 2014

To read this update in full, please click here.

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 Mondaq.com.

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

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
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
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (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 www.mondaq.com

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 Mondaq.com’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.

Disclaimer

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.

Registration

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 unsubscribe@mondaq.com 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.

Cookies

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.

Links

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.

Mail-A-Friend

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.

Security

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 webmaster@mondaq.com.

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 EditorialAdvisor@mondaq.com.

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 enquiries@mondaq.com.

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