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On 10 May 2019, the House of Commons’ Treasury Committee (the Committee) published its twenty-ninth report of session 2017 – 19 on consumers’ access to financial services. The Committee launched the consumers’ access to financial services inquiry on 9 November 2018. The report sets out the evidence that the Committee received in the course of its inquiry as well as the Committee’s recommendations for Government and regulators on where the Committee feels action needs to…
On 7 May 2019, the Courts and Tribunals Judiciary published a speech by Sir Geoffrey Vos, Chancellor of the High Court, on the effect of Brexit on financial services disputes in London. In his view, Brexit will “probably not … have quite the dramatic effect that some people have suggested”. Key takeaways from the speech relate to both Brexit and FinTech issues, and include the following: Brexit does not affect the English common law at…
The European Court of Justice (Court of Justice) has ruled that a temporary prohibition on the activities of a tied agent fall outside the scope of MiFID. Facts A request for a preliminary ruling from the Court of Justice was made in proceedings between Mr Antonio Pasquale Mastromartino and the Commissione Nazionale per le Società e la Borsa (Consob) (National Companies and Stock Exchange Commission, Italy). Mr Mastromartino provides services as a financial adviser authorised…
On 8 May 2019, the FCA published a research report produced for it by Revealing Reality on buying a mortgage without advice. The report follows research that explored with recent mortgage applicants how appealing and how clear they found several existing execution-only disclosure documents. The research found execution-only customers generally understood that they were selecting their mortgage without receiving advice. However, it also revealed that customers who went down either application route – execution-only or…
On 8 May 2019, the FCA published a speech by Christopher Woolard (Executive Director of Strategy and Competition, FCA) entitled Financial conduct regulation in a restless world. In his speech Mr Woolard discusses the FCA’s Business Plan and its priorities for the coming year. Key points in the speech include: from culture to fraud, market abuse to mis-selling, there are a number of priorities that are guaranteed a place in the Business Plan, even…
On 7 May 2019, the FCA published Consultation Paper 19/17: Consultation on mortgage advice and selling standards (CP19/17). In CP19/17 the FCA sets out proposed changes in its mortgage advice and selling standards to address three harms identified through the FCA’s Mortgages Market Study: the FCA’s advice rules and guidance are a barrier to the development of tools to help consumers choose and buy a mortgage; consumers who would like to buy a mortgage on…
On 7 May 2019, the Basel Committee on Banking Supervision (Basel Committee) published its sixteenth progress report on the adoption of the Basel III regulatory framework. The report sets out the adoption status of the Basel III standards for each Basel Committee member jurisdiction as of end-March 2019. Key updates as regards the adoption of the Basel II standards include: as of end-March 2019, all 27 member jurisdictions have risk-based capital rules, liquidity coverage ratio…
On 3 May 2019, HM Treasury published a document containing a summary of responses to its call for evidence on cash and digital payments in the new economy. A total of 218 respondents engaged with the call for evidence. The responses reflected the change in the way that payments are being made. According to data published by UK Finance, non-cash payment methods represented 66% of all payments made in the UK in 2017, up from…
On 2 May 2019, Advocate General Szpunar provided an opinion following a request for a preliminary ruling from the Austrian Supreme Court concerning the interpretation of Article 9(2) of Regulation (EU) No 260/2012 (the SEPA Regulation). The Advocate General’s opinion makes the following conclusion: “On a proper construction of Article 9(2) of Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012 establishing technical and business requirements for credit…
On 3 May 2019, the European Securities and Markets Authority (ESMA) published its technical advice to the European Commission (Commission) on sustainable finance initiatives to support the European Commission’s Sustainability Action Plan in the areas of investment services and investment funds. The final reports contain technical advice to the Commission on the integration of sustainability risks and factors, relating to environmental, social and governance (ESG) considerations with regards to investment firms and investment funds,…