On 19 April 2021, the European Central Bank (ECB) published a project report concerning a targeted review of internal models. The targeted review of internal models (TRIM) was a multi-year project launched by the ECB at the beginning of 2016 in close cooperation with the national competent authorities (NCAs) that are part of European banking supervision. TRIM aimed to assess whether the Pillar I internal models used by significant institutions within the Single Supervisory Mechanism…

On 19 April 2021, HM Treasury issued a consultation document on the regulation of non-transferable debt securities (mini-bonds). Non-transferable debt securities (NTDS), commonly referred to as ‘mini-bonds’, are unlisted bonds typically issued by companies to retail investors in order to raise finance. As non-transferable securities, investors cannot sell their investment, which normally must be held until maturity. The issuance of NTDS is, in general, not a regulated activity for the purposes of the Financial Services…

On 19 April 2021, the Financial Ombudsman Service announced that Nausicaa Delfas had been appointed its interim Chief executive and chief ombudsman. Nausicaa succeeds Caroline Wayman, who has stepped down after seven years as Chief executive and chief ombudsman.…

On 19 April 2021, the Working Group on Sterling Risk-Free Reference Rates published a paper that builds on its work to date in areas relating to the bond market and the derivatives market, to support the transition for structured products. It is intended that the paper is used by structured product issuers, manufacturers, distributors and investors in their plans to meet the recommended milestones set out in the Working Group’s roadmap and priorities for transition…

On 19 April 2021, the PRA issued a statement providing information on capital, notification, disclosure and reporting requirements for loans under the Mortgage Guarantee Scheme (MGS) as set out in relevant UK legislation. The statement covers: Firms using the Standardised Approach to credit risk for the underlying mortgage loans. Firms using the Internal Ratings Based approach to credit risk for the underlying mortgage loans. 5% vertical slice. Maturity mismatch. Significant Risk Transfer Notification. Private Securitisation…

The European Insurance and Occupational Pensions Authority (EIOPA) has published an opinion on the use of climate change risk scenarios in insurance undertakings’ Own Risk and Solvency Assessment (ORSA). The opinion has been written to help supervisory authorities understand EIOPA’s expectations in terms of climate risk scenarios included in the ORSA. Solvency II requires that insurance undertakings take into account in their ORSA all the short and long terms risks to which they could be…

On 19 April 2021, the Bank of England (BoE) published a policy regarding omnibus accounts, a new type of account available as part of its real-time gross settlement (RTGS) service. The BoE defines an omnibus account as one where the funds of different entities are co-mingled in a single account. In RTGS, the omnibus accounts will be offered to regulated payment system operators to pool participant funds. This will allow the operator to fully fund…