Since our last publication, the EBA has published final draft RTS on strong customer authentication under PSD2. In other news, the updated Ofcom statement on abandoned and silent calls comes into effect on 1 March.  Also HM Treasury has published a consultation and draft statutory instrument for transposing the EU Insurance Distribution Directive (2016/97/EU).

UK

EBA final draft RTS specifying requirements on strong customer authentication under PSD2

On 23 February 2017, the EBA published final draft RTS on strong customer authentication and common and secure communication under Article 98 PSD2. The final draft RTS are set out in section 3 of the report. The RTS will apply 18 months after their adoption by the Commission as a delegated act.

EBA, 23 February 2017

Ofcom updated statement affecting abandoned and silent calls comes into effect on 1 March 2017

Ofcom has set out an updated statement of its general policy on how it intends to take action in relation to situations where a person persistently misuses an electronic communications network or service. The policy highlights the enforcement powers Ofcom possess, including inter alia, its ability to impose penalties of up to £2 million.

Ofcom, 24 February 2017

HM Treasury consults on transposing IDD

On 27 February 2017, HM Treasury published a consultation paper on transposing the Insurance Distribution Directive (2016/97/EU) (IDD). This includes the draft Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2017. Designed to improve EU regulation in the insurance market, it will repeal and replace the Insurance Mediation Directive (2002/92/EC). Responses to the consultation paper are requested by 22 May 2017.

HM Treasury, 27 February 2017

FCA to consult on extension of Senior Managers Regime in Q2 2017

The FCA has updated its webpage on the Senior Managers and Certification Regime to confirm that it plans to consult on the extension of the regime to all firms authorised under the Financial Services and Markets Act 2000 during the second quarter of 2017.

FCA, 22 February 2017

Court of Appeal overturns High Court decision in relation to Subject Access Requests

The Court of Appeal's judgment in Dawson-Damer v Taylor Wessing LLP provides that a Subject Access Request is not invalid where it is made for the collateral purpose of assisting in litigation. In a decision that is important for data controllers, it highlights how data controllers needs to show what searches have been conducted, and also indicates that the motive of the person for making a Subject Access Request is irrelevant as to whether the Subject Access Request is valid or not.

PRA and FCA final rules and guidance on LTI ratios in mortgage lending

PRA published a policy statement on rules relating to loan to income (LTI) ratios in mortgage lending. The FCA has also published finalised guidance on LTI ratios in mortgage lending.

PRA & FCA, 27 February 2017

FCA: Dear CEO letter. The FCA's expectations of firms that operate a loan-based crowdfunding platform which facilitates loans to lending businesses

The FCA has published a "Dear CEO" letter to firms that operate loan-based crowdfunding platforms to highlight that if a lending business borrows through a platform and then lends that money to others, it may be accepting deposits under article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

FCA, 28 February 2017

CMA consults on Mastercard/VocaLink undertakings

The CMA is consulting on undertakings offered by Mastercard to address competition concerns arising from its purchase of VocaLink. The CMA has until 15 March 2017 to consider whether to accept the undertakings, or a modified version of them. The consultation on the undertakings and all other information relating to this merger investigation can be found on the case page.

CMA, 24 February 2017

Gross mortgage lending £18.9 billion in January

The Council of Mortgage Lenders estimates that gross mortgage lending reached £18.9 billion in January. This is 6% lower than December’s lending total of £20 billion, but 2% higher than the £18.6 billion lent in January last year. This is the highest lending total for a January since 2008 (£25.2 billion).

CML, 24 February 2017

The prudential regulation of credit unions

The PRA supervisory statement sets out the expectations of credit unions. It applies to all UK credit unions as defined in the Credit Union Rulebook. The statement seeks to advance the PRA’s statutory objective of promoting the safety and soundness of the firms it regulates by setting out the PRA’s expectations of how credit unions should comply with core elements of the regulatory framework contained in the Credit Union Rulebook Part. Areas covered include:

• capital;
• liquidity;
• additional activities;
• maximum deposit levels;
• fixed-rate shares and deposits;
• lending;
• investments; and
• governance and organisation.

PRA, 23 February 2017

PSR speech on regulatory challenges ahead

The Payment Systems Regulator has published a speech by the Managing Director of the PSR, Hannah Nixon, on regulatory challenges ahead. The speech discussed initiatives that the PSR has undertaken over the past two years and future challenges.

PSR, 23 February 2017