The PRA has published Consultation Paper 1/15: Assessing capital adequacy under Pillar 2 (CP1/15).
The PRA has already consulted on certain changes to the Pillar 2 framework (Consultation Paper 5/13: Strengthening capital standards: implementing the CRD IV) and published final policy (Policy Statement 7/13: Strengthening capital standards: implementing the CRD IV). In CP1/15 the PRA sets out further proposals which continues the reform of Pillar 2 covering:
The PRA and FCA have published a joint consultation paper on the management expenses levy limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2015/16. The MELL consulted on for 2015/16 is £74.4m consisting of:
The European Banking Authority (EBA) has published its second report on impact assessment for liquidity measures under Article 509(1) of the Capital Requirements Regulation (CRR). Overall, the report notes improvements with EU banks’ compliance with the liquidity coverage ratio (LCR) requirements and shows that the implementation of the LCR is not likely to have a negative impact on the stability of financial markets and of the supply of bank lending.
The PRA has published Policy Statement 1/15: Implementing the Bank Recovery and Resolution Directive – response to CP13/14 (PS1/15).
In PS1/15 the PRA summarises the feedback it received on its July 2014 consultation paper, and sets the final rules and a supervisory statement to implement the Bank Recovery and Resolution Directive (BRRD).
PS1/15 is relevant to holding companies, mixed financial holding companies, mixed activity financial holding companies, banks, building societies and PRA-designated investment firms.
The European Banking Authority has updated its Q&A on the single rulebook.
The update adds 15 new Q&As relating to supervisory reporting and credit risk, with regards to the Capital Requirements Directive IV and the Capital Requirements Regulation.
The FCA has published Policy Statement 15/2: Recovery and Resolution Directive: Feedback on CP14/15 and final rules (PS15/2).
In PS15/2 the FCA summarises the feedback it received on its August 2014 consultation paper on implementing the Bank Recovery and Resolution Directive (BRRD), gives its responses and sets the final rules. The FCA’s earlier consultation did not extend to the substantive resolution aspects of the BRRD that fall to the resolution authority. Instead the FCA consulted only on the draft Handbook rules and guidance that are necessary for those firms that the FCA prudentially regulate and fall within the scope of the BRRD. The consultation also contained a discussion chapter which sought stakeholder views to help inform the FCA on its future approach to three specific issues in the BRRD:
On 22 December 2014, the Competition and Markets Authority (CMA) published a notice of intention to conduct a quantitative sample survey of personal current account (PCA) customers as part of its retail banking market investigation. The CMA has now published a further notice on the technical details of the methodology it proposes to use for its survey.
With regards to the methodology, the notice concerns:
The FCA has published Consultation Paper 15/1: FCA Competition Concurrency Guidance and Handbook amendments (CP15/1).
In CP15/1, the FCA seeks views on three separate documents:
The European Commission (EC) has published a joint statement concerning the latest US/EU financial markets regulatory dialogue (FMRD) which took place on 12 January 2015. Officials who attended the meeting included representatives of the EC, the European Supervisory Authorities, the US Treasury, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The joint statement outlines the discussions that took place on a number of key regulatory topics including:
The Commodities and Derivatives Group in the Washington, DC, office of Norton Rose Fulbright has published a User’s Guide to a CFTC staff advisory and time-limited no-action letter regarding the annual report required of chief compliance officers (CCOs) of futures commission merchants, swap dealers, and major swap participants.
The User’s Guide walks through the specific