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Topic: Coronavirus

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COVID-19: FCA and PRA update information on key workers and working from home

On 24 September 2020, the FCA updated its web page on ‘Key workers in financial services’. The web page reminds financial services firms that it remains important for them to continue to identify and monitor key workers to ensure that firms respond effectively in the event of further local or national lockdowns. The FCA also … Continue Reading

Risk Consulting Hot Topic Series: Retail conduct and Fair Customer Treatment

The COVID-19 pandemic has impacted the lives of every individual across the country and brought the fair treatment of customers into even sharper focus. As the virus began to unfold, the regulator took swift action to publish various guidance outlining its expectations as to how firms should treat customers who are impacted by it to … Continue Reading

ECB allows temporary relief in banks’ leverage ratio after declaring exceptional circumstances due to the COVID-19 pandemic

On 17 September 2020, the European Central Bank (ECB) announced that euro area banks under its direct supervision may exclude certain central bank exposures from the leverage ratio. The announcement comes after the Governing Council of the ECB confirmed that there are exceptional circumstances due to the COVID-19 pandemic. Banks under ECB supervision can benefit … Continue Reading

FCA proposes the next stage of support for consumer credit and overdraft customers

On 16 September 2020, the FCA published Draft guidance: consumer credit and coronavirus – additional guidance for firms. The FCA originally published guidance on credit cards (including retail revolving credit) and personal loans on 9 April 2020 and later updated it on 1 July 2020. Publication of guidance covering motor finance and other high-cost credit … Continue Reading

COVID-19: FCA extends submission deadline for complaints returns

On 28 August 2020, the Financial Conduct Authority (FCA) published an update to its webpage focused on changes to regulatory reporting during the COVID-19 pandemic. The FCA has permitted extensions to complaints data returns in relation to the 31 August 2020 deadline required by the Dispute Resolution: Complaints Sourcebook (DISP) rule DISP 1.10A.3R(1). The FCA … Continue Reading

COVID-19: PRA ends temporary approach to value-at-risk back-testing exceptions

On 27 August 2020, the Prudential Regulation Authority (PRA) published a statement setting out its decision to terminate its temporary approach to value-at-risk (VAR) back-testing exceptions from 30 September 2020. This statement follows the PRA’s review of the temporary approach that allowed firms to offset increases due to new back-testing exceptions through a commensurate reduction … Continue Reading

COVID-19: ESMA to update risk parameters in guidelines on stress test scenarios under the Money Market Funds Regulation

On 27 August, the European Securities and Markets Authority (ESMA) published a statement announcing that it intends to update the 2019 Guidelines on stress test scenarios under the Money Market Funds Regulation (MMFR) to include a modification of the risk parameters to reflect recent market developments related to the COVID-19 crisis. ESMA has assessed whether … Continue Reading

COVID-19: FCA consults on additional guidance for mortgage firms

On 26 August 2020, the Financial Conduct Authority (FCA) published a guidance consultation containing additional draft guidance for mortgage firms in light of the COVID-19 pandemic. It sets out the FCA’s expectations in relation to the fair treatment of mortgage borrowers who are experiencing financial difficulty as a result of the pandemic. This guidance is … Continue Reading

COVID-19: FCA statement on accounting for lease modifications (amendment to IFRS 16)

On 18 August, the FCA announced temporary relief for issuers who choose to use the amended International Reporting Standard (IFRS) 16 (COVID-19-related rent concessions – Amendment to IFRS 16) during the coronavirus (COVID-19) pandemic and its aftermath. The amendment to IFRS 16 is effective for reporting periods beginning on or after 1 June 2020 and … Continue Reading

FCA Dear CEO letter: Non-discretionary investment firms to take action to prevent client harm

Over recent months, the FCA has published a raft of guidance for firms to help prevent consumer harm in light of the unprecedented COVID-19 pandemic. On 12 August, the FCA wrote directly to CEOs of firms who provide non-discretionary investment services to clients requiring them to take action to prevent harm to clients. This Dear … Continue Reading

EBA final report on draft ITS on supervisory reporting by institutions under CRR, accommodating CRR 2 and CRR quick fix

On 10 August 2020, the European Banking Authority (EBA) published a final report concerning draft implementing technical standards (ITS) on supervisory reporting by institutions under the Capital Requirements Regulation (CRR), accommodating the CRR 2 and the CRR quick fix. The CRR quick fix introduces amendments to regulatory requirements that have an impact on the supervisory … Continue Reading

EBA final report on the guidelines on supervisory reporting and disclosure requirements in compliance with the CRR ‘quick fix’ in response to the COVID-19 pandemic

On 10 August 2020, the European Banking Authority (EBA) published its final report concerning guidelines on supervisory reporting and disclosure requirements in compliance with the Capital Requirements Regulation (CRR) ‘quick fix’ in response to the COVID-19 pandemic. The guidelines comprise a set of instructions covering the impact of the CRR ‘quick fix’ on the following … Continue Reading

EBA final report on the guidelines on uniform disclosures under Article 473a of the CRR on the transitional period for mitigating the impact of the introduction of IFRS9 on own funds to ensure compliance with the CRR ‘quick fix’ in response to the COVID-19 pandemic

On 10 August 2020, the European Banking Authority (EBA) published a final report concerning amendments to its existing guidelines (EBA/GL/2018/01) on uniform disclosures under Article 473a of the Capital Requirements Regulation (CRR) on the transitional period for mitigating the impact of the introduction of IFRS9 on own funds to ensure compliance with the CRR ‘quick … Continue Reading

EBA provides clarity on the implementation of the reporting and disclosure framework in the context of COVID-19 measures

On 7 August 2020, the European Banking Authority (EBA) published frequently asked questions relating to the implementation of its Guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis. The technical clarifications provided by the EBA will assist supervisors and credit institutions in the implementation of the guidelines. … Continue Reading

FCA confirms recognition for the LSB’s update to Standards for CBILS and BBLS lending

On 5 August 2020, the Lending Standards Board (LSB) issued a statement advising that the FCA had confirmed that formal recognition of the Standards of Lending Practice for business customers had been maintained and that recognition now covered the updates to the Standards issued by the LSB to take account of the Government’s new coronavirus lending … Continue Reading

FCA publishes statement on non-damage business interruption settlements and deductions in relation to Government support

In response to concerns expressed about how insurers are calculation non-damage business interruption (BI) claims payments where liability has been agreed, the Financial Conduct Authority (FCA) has published a statement on deductions being made for Government support received.  Over the past few months many BI claimants have received some form of Government support in response … Continue Reading

FCA Call for input – Ongoing support for consumers affected by coronavirus: mortgages and consumer credit

The COVID-19 pandemic is continuing to present challenges across the board with regional lockdowns, closures of “air-bridges” and talks of a second wave dominating media outlets at the present time. If the pandemic has brought certainty in one regard, it is that the future is more uncertain than ever. In order to help provide further … Continue Reading

PRA statement on EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the Covid-19 outbreak

On 28 June 2020, the PRA issued a statement providing guidance to all PRA-regulated firms on the EBA guidelines on Covid-19 disclosures and published PRA disclosure templates. On disclosure templates, the PRA notes that its letters dated 26 March 2020 from Sam Woods ‘Covid-19: IFRS 9, Capital requirements and loan covenants’ and 4 June 2020 … Continue Reading

Euro area banking sector resilient to stress caused by coronavirus, ECB analysis shows

On 28 July 2020, the European Central Bank (ECB) published the aggregate results of its vulnerability analysis of banks directly supervised within the Single Supervisory Mechanism. The exercise assessed how the economic shock caused by the COVID-19 pandemic would impact 86 euro area banks and aimed to identify potential vulnerabilities within the banking sector over … Continue Reading

ECB extends recommendation not to pay dividends until January 2021 and clarifies timeline to restore buffers

On 28 July 2020, the European Central Bank (ECB) extended its recommendation that banks not pay dividends nor buy back shares until January 2021. The ECB has also asked banks to be “extremely moderate” with regard to variable remuneration. The ECB also encourages banks to use their capital and liquidity buffers for lending purposes and … Continue Reading

Further support for consumers impacted by COVID-19: motor finance, HCSTC, rent-to-own, buy-now pay-later and pawnbroking

On 15 July 2020, the FCA updated the temporary guidance that it had produced in respect of the COVID-19 pandemic for firms providing motor finance, buy-now pay-later (BNPL), rent-to-own (RTO), pawnbroking and high-cost short-term credit (HCSTC) products. The temporary guidance was originally published on 24 April 2020. On 3 July 2020, the FCA announced that … Continue Reading

FCA updates statement on open access regime for the trading and clearing of exchange-traded derivatives

On 6 July 2020, the FCA updated its statement on the open access regime for the trading and clearing of exchange-traded derivatives by adding the following paragraph: “Since we published the statement below, the EU co-legislators agreed that considering the adverse circumstances arising from the COVID-19 pandemic it was appropriate to amend MiFIR to give … Continue Reading

EBA provides clarity on the implementation of the prudential framework in the context of COVID-19

On 7 July 2020, the European Banking Authority (EBA) published a report providing clarification on certain issues concerning the application of the prudential framework that have been raised as a consequence of the COVID-19 pandemic. Specifically the report is intended to provide clarity on the implementation of the EBA guidelines on legislative and non-legislative moratoria … Continue Reading
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