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CLLS response to FCA consultation on restricting CFD products sold to retail clients

On 12 February 2019, the City of London Law Society (CLLS) published its response to FCA Consultation Paper 18/38: Restricting contract for difference products sold to retail clients and a discussion of other retail derivative products (CP18/38) (our blog on CP18/28 is here). The CLLS notes that given the significant impact of the product intervention … Continue Reading

Council of EU invites approval of final compromise text of proposed pension product Regulation

On 8 February 2019, the Council of the EU published an ‘I’ Item note on the proposed Regulation on a pan-European personal pension product. Following negotiations between the Austrian Presidency, the European Parliament and the European Commission, a provisional agreement between the institutions was achieved on 13 December 2018 – a final compromise text is … Continue Reading

PSR consults on working paper on proposed pass-through analysis as part of card-acquiring market review

On 8 February 2019, the Payments Systems Regulator (PSR) published for consultation a working paper concerning its market review into the supply of card-acquiring services. The final terms of reference (ToR) for the market review were published on 24 January 2019. The ToR state that the PSR will examine how the level of fees merchants pay for card-acquiring … Continue Reading

ESAs publish recommendations on changes to the PRIIPs KID

On 8 February  2019, the European Supervisory Authorities (ESAs)  issued final recommendations following their consultation on targeted amendments to the Delegated Regulation covering the rules for the key information document (KID) for packaged retail and insurance based investment products (PRIIPs). The ESAs have decided not to propose targeted amendments at this stage. Instead they will … Continue Reading

New EBA working group on APIs under PSD2

On 7 February 2019, the European Banking Authority (EBA) published a webpage concerning a new working group on application programming interfaces (APIs) under the revised Payment Services Directive (PSD2). The webpage notes that the working group will be chaired by the EBA and composed of representatives from a variety of external stakeholders, with which the … Continue Reading

FCA Policy Statement on general standards and communication rules for the payment services and e-money sectors

On 1 February 2019, the FCA published Policy Statement 19/3: General standards and communication rules for the payment services and e-money sectors (PS19/3). In PS19/3 the FCA confirms the following changes to the Handbook following its earlier consultation (Consultation Paper 18/21: General standards and communication rules for the payment services and e-money sectors, our blog … Continue Reading

Further ESMA restriction on CFDs published in OJ

On 31 January 2019, there was published in the Official Journal of the EU (OJ) the European Securities and Markets Authority (ESMA) decision of 23 January 2019 renewing the temporary restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients. This decision extends for three months, from 1 February 2019, … Continue Reading

FCA proposes rules on investment pathways and other measures to improve retirement outcomes for consumers

In June 2016, the FCA launched its retirement outcomes review (ROR). The regulator wanted to assess how the retirement income market was evolving following the introduction of the pension freedoms, to address any emerging issues that might cause consumer harm and put the market on a good footing for the future. In June 2018, the … Continue Reading

FCA response to enquiry on access to financial services

On 15 January 2019, the House of Commons’ Treasury Select Committee (the Committee) published written evidence submitted by the FCA as part of the Committee’s inquiry into consumer access to financial services (the Submission). The Submission outlines the FCA’s work and approach to issues of financial access for consumers, focusing on vulnerable people. Key points … Continue Reading

Commission consults on evaluating the CCD

On 14 January 2019, the European Commission launched a consultation evaluating whether the Consumer Credit Directive (CCD) is still fit for purpose given all the market developments since its launch in in April 2008. Stakeholders can contribute to the consultation by filling in an online questionnaire. The deadline for responses is 8 April 2019.… Continue Reading

ESMA annual statistical report on retail investment products in the EU

On 10 January 2019, the European Securities and Markets Authority (ESMA) published its first annual statistical report on the performance and costs of retail investment products in the EU. The report is focused on UCITS, alternative investment funds sold to retail investors (retail AIFs) and structured retail products (SRPs). The report provides a comprehensive overview … Continue Reading

ESMA decision to renew ban on marketing, distribution or sale of binary options enters into force

On 21 December 2018, ESMA published a notice of its decision adopted on 14 December 2018 under Article 40 of MiFIR to renew the prohibition on the marketing, distribution or sale of binary options to retail clients. The decision has applied from 2 January 2019, and will apply for a period of three months. The … Continue Reading

FCA approach to payment services and electronic money

On 19 December 2018, the FCA published an updated approach document (version 3) on payment services and electronic money. The approach document describes the FCA’s approach to implementing the Payment Services Regulations 2017 and the Electronic Money Regulations 2011, and is aimed at businesses that are, or are seeking to become: authorised payment institutions or … Continue Reading

FCA final report on strategic review of retail banking business models

On 18 December 2018, the FCA published its final report into retail banking business models, following on from its progress report in June 2018 (our blog is here). The FCA states that its analysis confirms that the personal current account (PCA) is an important source of competitive advantage for major banks. PCAs bring cheap funding … Continue Reading

New FCA rules on handling complaints about APP fraud

On 14 December 2018, the FCA published Policy Statement 18/22: Authorised push payment fraud – extending the jurisdiction of the Financial Ombudsman Service (PS18/22). The rule changes in PS18/22 are intended to provide victims of alleged authorised push payment (APP) fraud with prompt and fair complaints resolution, and access to dispute resolution through the Financial … Continue Reading

FCA consults on restricting contract for difference products sold to retail clients

On 7 December 2018, the FCA published Consultation Paper 18/38: Restricting contract for difference products sold to retail clients and a discussion of other retail derivative products (CP18/38). Earlier this year the European Securities and Markets Authority (ESMA) introduced a temporary product intervention measure which temporarily restricts how contracts for differences (CFDs) are sold to … Continue Reading

FCA consults on product intervention measures for retail binary options

On 7 December 2018, the FCA published Consultation Paper 18/37: Product intervention measures for retail binary options (CP18/37). Earlier this year the European Securities and Markets Authority (ESMA) introduced a temporary EU-wide product intervention measure to ban investment firms from marketing, distributing or selling binary options to retail consumers. The ban applied from 2 July … Continue Reading

FCA consults on rent-to-own price cap

On 22 November 2018, the FCA published Consultation Paper 18/35: Rent-to-own (RTO) and alternatives to high-cost credit – feedback on CP18/12 and consultation on a price cap (CP18/35). Our earlier blog on Consultation Paper 18/12: High-cost Credit Review: Consultation on rent-to-own, home-collected credit, catalogue credit and store cards, and alternatives to high-cost credit, discussion on … Continue Reading

FCA findings of current account prompt pilots

On 20 November 2018, the FCA published a webpage summarising its research into designing effective current account prompts, together with the full report (the Report). The research was conducted following banks and building societies committing to deliver a package of prompts to their customers. These prompts aim to: increase consumers’ engagement with their current account, … Continue Reading

Joint consultation paper concerning amendments to the PRIIPs KID

On 8 November 2018, the Joint Committee of the European Supervisory Authorities published a consultation paper setting out proposed amendments to the PRIIPs Delegated Regulation (Commission Delegated Regulation (EU) 2017/653 of 8 March 2017). The amendments relate to the empowerment in Article 8(5) of the PRIIPs Regulation concerning the presentation and content of the key … Continue Reading

FCA speech on fairness, flexibility and the long-term view

On 6 November 2018, the FCA published a speech by Christopher Woolard (Executive Director of Strategy and Competition, FCA)entitled Fairness, flexibility and the long-term view: the FCA’s vision for the mortgage market. In his speech Mr Woolard discusses the FCA’s mortgage market study and the regulator’s view of the mortgage sector more broadly. Highlights in … Continue Reading

FCA Dear CEO letter on investment due diligence requirements for SIPP investments

On 30 October 2018, the FCA published a Dear CEO letter, drawing attention to a number of pending civil claims in the High Court, together with the judgment handed down in the case of R (Berkeley Burke SIPP Administration Limited) v Financial Ombudsman Service Limited, which is still open to appeal by the claimant. These … Continue Reading

UK Finance review into the complaints / ADR landscape for the SME market

On 23 October 2018, UK Finance published a review into the complaints and alternative dispute resolution (ADR) landscape for the UK’s small and medium enterprises (SME) market. The report serves three purposes to: recommend ways in which banks and SMEs can resolve future grievances and complaints; help ensure that the excesses of the global financial … Continue Reading

FCA policy statement on improving quality of pension transfer advice

On 4 October 2018, the FCA published Policy Statement 18/20: improving the quality of pension transfer advice – feedback on CP18/7 and final rules and guidance (PS18/20). In CP18/7 the FCA consulted on the following proposals: amending the Pension Transfer Specialist (PTS) qualification and the exam qualification standards; amending the definition of a pension transfer; … Continue Reading
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