On December 7, 2016, the Payment Systems Regulator published
proposals for remedying the lack of competition in the provision of
UK payments central infrastructure for Bacs, FPS and LINK which
means that the incumbent provider, VocaLink, faces limited
competitive pressure and minimal incentives to provide more
efficient and innovative services.
The PSR published its final report on its market review into the
ownership and payment infrastructure competitiveness in the UK on
July 28, 2016. The final report identified the competition issues
and outlined potential remedies, including undertaking competitive
procurement exercises, such as issuing guidance and requiring
operators of payment service providers to follow a prescribed set
of processes and implementing enhanced interoperability, including
a common international messaging standard, for Bacs and FPS, and
divestment by the four largest shareholders in VocaLink. Following
feedback to those initial proposals, the PSR is now consulting on
mandating competitive procurement exercises for Bacs, FPS and LINK
when the operators of these systems purchase central infrastructure
services and introducing the ISO 20022 messaging standard in future
procurements for Bacs and FPS.
The PSR is no longer considering the divestment remedy for
VocaLink because of the proposed acquisition by MasterCard of
VocaLink which would, in the PSR's view, remedy the issue. If
the proposed acquisition does not go ahead, the PSR will consult
separately on the divestment remedy.
The consultation closes on February 1, 2017. The PSR is
intending to publish its final decision on the remedies in Q2
The implementation of the mandatory exchange of initial and
variation margin for non-cleared OTC derivative trades in the EU
commenced on 4 February for financial counterparties with the
largest derivatives portfolios.
On February 9, 2017, HM Treasury published a paper summarizing responses to its consultation on the transposition of the revised MiFID and three draft statutory instruments to facilitate transposition.
We consider below the circumstances in which a person may hold an "unpaid vendor lien", the effect of such a lien following the Supreme Court case of Menelaou v Bank of Cyprus UK Ltd  EWHC 2656...
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