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European Commission consults on Distance Marketing Directive

On 9 April 2019, the European Commission published a new webpage detailing a consultation on the Distance Marketing Directive (the Directive). The Commission notes that since 2002, when the Directive came into force, the retail financial sector has gone increasingly digital, with new products and actors available on the market and new sales channels being … Continue Reading

ESAs publish Q&A on the KID for PRIIPs

On 4 April 2019, the European Supervisory Authorities published additional Q&As on the key information document (KID) requirements for packaged retail and insurance-based investment products. Answers to the following questions have been added: What aspects should be considered by the manufacturer when determining the recommended holding period of a PRIIP? Which form and name should … Continue Reading

FCA consults on changes to responsible lending rules and guidance following mortgage market study

On 26 March 2019, the FCA published Consultation Paper 19/14: Mortgage customers: proposed changes to responsible lending rules and guidance (CP19/14). By way of background, the FCA is concerned that some consumers cannot switch to a more affordable mortgage despite being up-to-date with their mortgage payments. This includes those who cannot switch because of changes … Continue Reading

FCA Dear CEO letter on managing the risks of defined benefits to defined contribution transfers

On 22 March 2019, the FCA published a Dear CEO letter concerning managing the risks of defined benefits to defined contribution transfers. The Dear CEO letter explains that over the past year the FCA has carried out work to evaluate and reduce the risks of harm to consumers arising from the transfer of funds from … Continue Reading

Commission Implementing Regulation on ITS with regard to the details and structure of the information to be notified in payment services

On 15 March 2019, there was published in the Official Journal of the EU (OJ), Commission Implementing Regulation (EU) 2019/410 of 29 November 2018 laying down implementing technical standards with regard to the details and structure of the information to be notified, in the field of payment services, by competent authorities to the EBA pursuant … Continue Reading

FCA papers on investment platforms market study remedies

On 14 March 2019, the FCA issued its investment platforms market study final report and an accompanying Consultation Paper (Consultation Paper 19/12: Consultation on investment platforms market study remedies (CP19/12)). The FCA launched its market study to explore whether consumers can make informed decisions about the choice of platform, the investments they choose on it … Continue Reading

ESAs propose draft RTS to clarify application date of KID to investment funds

On 8 March 2019, the Joint Committee of European Supervisory Authorities (ESAs) published a letter to the European Commission regarding amending the PRIIPs Regulation to  clarify the application of the key information document (KID) to multi-option products. The text of the draft regulatory technical standards (RTS) amending PRIIPs are annexed to the letter. In their … Continue Reading

FCA Dear CEO letter – loan-based P2P crowdfunding platforms: wind-down arrangements

On 7 March 2018, the FCA published a Dear CEO letter it had sent to loan-based peer-to-peer (P2P) crowdfunding platforms asking them to review their wind-down arrangements. Among other things the Dear CEO letter reminds P2P platforms that they are required to notify lenders of the arrangements they have made, including if the arrangements involve … Continue Reading

FCA Policy Statement on rent-to-own price cap

On 5 March 2019, the FCA published Policy Statement 19/6: Rent-to-own price cap – feedback on CP18/35 and final rules (PS19/6). PS19/6 should be read by firms offering household goods on hire purchase and/or conditional sale, consumer groups and debt advice organisations. In PS19/6 the FCA summarises the feedback it received to Consultation Paper 18/35: … Continue Reading

HM Treasury Committee correspondence on mortgage prisoners

On 9 January 2019, the FCA published a letter that it had sent to Nicky Morgan MP, Chair of the Treasury Committee, providing an update on its work on improving switching options for mortgage customers who are currently unable to do so (so called mortgage prisoners). On 5 March 2019, the Treasury Committee published further … Continue Reading

Council of EU adopts Regulation amending Regulation on cross-border payments

On 4 March 2019, the Council of the EU announced that it had adopted a Regulation on aligning the costs of cross-border payments in euros between euro and non-euro countries and increasing the transparency of charges related to currency conversion services across the EU. The reform will align the charges for cross-border payments in euros … Continue Reading

Final text of voluntary industry code for reimbursement of victims of APP scams agreed

On 28 February 2019, the Authorised Push Payments (APP) Scams Steering Group (the Steering Group) published  the voluntary Contingent Reimbursement Model Code for APP Scams (the Code). APPs are made when people request their bank or building society (payment services providers (PSPs)) to make a payment from their account to another account. Scams involving APPs … Continue Reading

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
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