Featured Product

    EBA Examines Application of Product Oversight and Governance Guideline

    July 05, 2019

    EBA published the first report examining the way industry has implemented the EBA requirements on the guideline on product oversight and governance arrangements. EBA issued the guideline in 2015 to address large-scale retail conduct failure and mis-selling that was observed in the banking sector at the time. The report identifies a number of good and bad practices and outlines the next steps that EBA will take to fulfill its supervisory convergence mandate. EBA will reflect on the findings in this report to identify specific actions, such as guidance and further clarifications, which may be needed to address the issues raised.

    This assessment, which uses a small sample of credit institutions from six member states, shows that manufacturers have made welcome changes, particularly in terms of processes and governance. However, in a large number of cases, customer interests may not quite receive the same attention as the manufacturer's commercial interests and prudential concerns. The EBA assessment also suggests that the industry may have different understanding of the guideline and that further clarification may be warranted to ensure further convergence across Europe. One of the identified priorities, as stated in the EBA work program for 2019, is for EBA to ensure a consistent implementation of the EBA consumer protection requirements by financial institutions.

    EBA has developed these detailed guidelines on product oversight and governance arrangements for the retail banking products to address some of the conduct risks, which result in fines, settlements, and redress payments. The guidelines cover retail banking products that fall into the EBA consumer protection remit, which are mortgages, personal loans, deposits, payment accounts, payment services, and electronic money. The guideline is intended to ensure that products are developed and brought to market in a way that focuses on the needs and interests of the consumer and, in so doing, to reduce conduct costs and contribute to market confidence. EBA promotes a transparent, simple, and fair internal market for consumer financial products and services and seeks to foster consumer protection across EU. 

     

    Related Links

    Keywords: Europe, EU, Banking, Conduct Risk, Product Governance, Guidelines, POG, Operational Risk, EBA

    Related Articles
    News

    FED Adopts Proposal to Implement Reporting Form for SCCL

    FED adopted a proposal to implement the Single-Counterparty Credit Limits (SCCL) reporting form (FR 2590; OMB No. 7100-NEW).

    November 20, 2019 WebPage Regulatory News
    News

    FED Proposes to Extend Initial Compliance Dates Under SCCL Rule

    FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule.

    November 20, 2019 WebPage Regulatory News
    News

    CBIRC to Strengthen Supervisory and Policy Support for SME Services

    CBIRC released a notification on strengthening supervision and guidance to enhance the quality and efficiency of financial services for "small and micro-enterprises" (SMEs).

    November 20, 2019 WebPage Regulatory News
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Update Rule on Derivative Contracts Exposure Calculation

    US Agencies (FDIC, FED, and OCC) announced a final rule updating the way certain banking organizations are required to measure counterparty credit risk for derivative contracts under their regulatory capital rules.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Amend Treatment of HVCRE Exposures

    US Agencies (FDIC, FED, and OCC) finalized a rule to modify the treatment of high volatility commercial real estate (HVCRE) exposures, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Changes to Rule on Supplementary Leverage Ratio

    US Agencies (FDIC, FED, and OCC) finalized changes to the capital requirement for banking organizations predominantly engaged in custodial activities, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Consults on Guidance on Liquidity Risk Management for Insurers

    IAIS is seeking feedback on the draft application paper on liquidity risk management for insurers.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4174