In this week's newsletter, we provide a snapshot of the principal US, European and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructure providers, asset managers and corporates.
Bank Prudential Regulation & Regulatory Capital
UK Prudential Regulation Authority Consults on Further Rulebook Parts
On August 14, 2015, the Prudential Regulation Authority published a consultation paper on proposals to transfer additional parts of the PRA rules that are in the FS Handbook into the stand-alone PRA Rulebook. The PRA is reshaping the materials inherited from the Financial Services Authority to create a Rulebook which contains PRA rules only and follows the split of the old FSA into the PRA and the Financial Conduct Authority. The current consultation covers rules for financial conglomerates, third country groups, group risk and group systems and controls and regulatory reporting. The consultation closes on November 13, 2015. It is expected that the new online PRA Rulebook will be available before the end of 2015.
The consultation paper is available at: http://www.bankofengland.co.uk/pra/Documents/publications/cp/2015/cp2815.pdf.
Competition
UK Payment Systems Regulator Publishes Guidance on its Concurrent Competition Powers
On August 13, 2015, the UK Payment Systems Regulator published final guidance on its concurrent competition powers and on its approach to market reviews. The PSR has concurrent competition powers with the Competition and Markets Authority. The final guidance on the PSR’s powers and procedures under the Competition Act 1998, known as the CA98 Guidance, explains how the PSR will use its concurrent competition powers for participation in payment systems within the UK, in particular the enforcement processes it will follow and how they relate to its other powers and duties. The final guidance on the PSR’s powers and procedures for market reviews, market studies and market investigation, known as its Markets Guidance, explains the PSR’s powers to carry out market reviews, how the PSR will choose which powers to use, how the PSR will carry out market reviews and studies, including its approach to disclosure and use of information and how the PSR will make market investigation references.
The CA98 Guidance is available at: https://www.psr.org.uk/sites/default/files/media/PDF/PSR_PS15_2.1_Competition_Act_CA98_Guidance.pdf and the Markets Guidance is available at: https://www.psr.org.uk/sites/default/files/media/PDF/PSR_PS15_2.2_Markets_Guidance.pdf.
Conduct and Culture
The Group of Thirty Releases Report on Banking Conduct and Culture
The Group of Thirty, a private, nonprofit, international group of senior representatives from the private and public sector, recently released a report entitled “Banking Conduct and Culture: A Call for Sustained and Comprehensive Reform”. The report is the culmination of a year-long study, including nearly 80 interviews in 16 countries with central bankers, boards of directors and senior management. The report recommends a set of comprehensive reforms aimed at improving culture and conduct at banking organizations including addressing compensation, implementing an effective three lines of defense, changing staff recruiting and training methods, and increasing the involvement of boards of directors and senior management in addressing cultural issues at their firms.
The report is available at: http://group30.org/images/PDF/BankingConductandCulture.pdf
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