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On 17 May 2018, the FCA published Guidance Consultation 18/2: Fairness of variation terms in financial services consumer contracts under the Consumer Rights Act 2015 (GC18/2). Following the removal of some unfair contract terms material from the FCA website in March 2015, the regulator received some views from trade associations and firms about how the fairness of variation terms under unfair contract terms law should be interpreted. The purpose of guidance in GC18/2 when finalised…
On 27 April 2018, the European Banking Authority (EBA) issued a consultation on its guidelines on disclosure by credit institutions of information on non-performing and forborne exposures. When finalised, the guidelines will apply to all credit institutions that are subject to all or part of the disclosure requirements specified in the Capital Requirements Regulation. The guidelines specify the information related to non-performing and forborne exposures and foreclosed assets that banks should disclose and provide uniform…
On 20 April 2018, the European Banking Authority (EBA) published: consultation paper on guidelines on STS criteria for non-asset-backed commercial paper (ABCP) securitisation. The draft guidelines have been developed in accordance with Article 19(2) of the Securitisation Regulation which requests the EBA to provide a harmonised interpretation and application of the criteria on simplicity, transparency and standardisation (STS) applicable to non-ABCP securitisation, as set out in Articles 20, 21 and 22 of the Regulation;…
On 19 April 2018, the FCA published a new update on its website regarding the basic advice regime under MiFID II and the Insurance Distribution Directive (IDD). The update explains the impact of the FCA’s implementation of MiFID II and the IDD. It also directs firms to further information which the regulator has published on providing streamlined advice to consumers. In terms of MiFID II the FCA explains that the Directive requires it to apply…
On 18 April 2018, the Bank of England (BoE) announced that the first non-bank payment service provider (PSP) joined a UK payment system settling in central bank money. TransferWise, a FCA regulated PSP facilitating the international transfer of payments, is now a direct participant in the UK’s Faster Payments system. A key component of this work involved the BoE extending settlement account access in its Real-Time Gross Settlement system to non-bank PSPs such as TransferWise.…
On 17 April 2018, the European Banking Authority (EBA) published amendments to the Implementing Technical Standards (ITS) on supervisory reporting, a new ITS on reporting for resolution plans and the corresponding Data Point Model (DPM) and XBRL taxonomy. These changes form part of the EBA reporting framework version 2.8, which will be applicable for submissions of data as of December 2018.…
On 12 April 2018, ICE Benchmark Administration issued a consultation paper on a revised version of the London Interbank Offered Rate (LIBOR) code of conduct.  When finalised the code should be read in conjunction with Article 15 of the EU Benchmarks Regulation and the governance and control requirements for supervised contributors in Article 16 of the Regulation and its Annex 1 which sets out specific provisions for interest rate benchmarks. The code also notes that…
On 13 April 2018, the Financial Markets Law Committee (FMLC) published a paper setting out certain legal uncertainties as regards the European Commission’s proposal to amend the moratorium provisions within the Bank Recovery and Resolution Directive. Specifically the FMLC considers four sets of uncertainties relating to: the existing moratorium powers; financial collateral arrangements; custody requirements; and back-to-back contracts involving central counterparties. The FMLC recommends, by way of conclusion, that further thought is given to synchronise…
On 11 April 2018, the European Commission issued legislative proposals for a new deal for consumers to ensure that EU consumers fully benefit from their rights under EU law. In summary the new deal seeks to strengthen consumer rights online and give consumers the tools to enforce their rights and get compensation. In terms of strengthening consumer rights the Commission seeks to introduce more transparency in online market places and improve transparency on search results…
On 28 March 2018, the European Commission published a proposed Regulation amending Regulation (EC) No. 924/2009 as regards certain charges on cross-border payments in the Union and currency conversion charges. In particular, the draft Regulation provides that fees charged for cross-border payments in euro are the same that would be charged for equivalent domestic payments in the local currency. For example, a cross-border credit transfer in euro from Bulgaria will be priced the same as…