FCA published a quarterly consultation paper that proposes miscellaneous amendments to the FCA Handbook. The consultation paper covers proposed changes resulting from the Corporate Insolvency and Governance Bill (Chapter 2), proposals to amend the Consumer Credit Sourcebook as a result of the Bounce Bank Loan Scheme (Chapter 3), and proposed changes to the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Sourcebook (Chapter 4). Additionally, FCA notified that it will ask 13,000 firms to complete a short survey to obtain a more accurate view of firms’ financial resilience as a result of COVID-19. The survey will be sent to firms between June 04, 2020 to June 08, 2020.
On May 20, 2020, the government announced that it had introduced the Corporate Insolvency and Governance Bill in Parliament, which will put in place a series of measures to amend insolvency and company law to support business to address the challenges resulting from the impact of COVID-19 pandemic. The proposed changes include an amendment to the Insolvency Act 1986 to introduce a new moratorium for certain companies that are insolvent or likely to become insolvent and where rescue as a going concern is a reasonable prospect. Following the proposed changes to the Insolvency Act 1986, FCA proposes to amend the Compensation Sourcebook Part of the FCA Handbook (COMP). FCA is proposing this amendment to make it clear that in accordance with those rules the Financial Services Compensation Scheme (FSCS) can declare a firm or a successor that is subject to the new moratorium to be in default and can, therefore, pay compensation to eligible customers of the firm or successor, if it considers it appropriate to do so (Chapter 2 of consultation paper).
On May 04, 2020, the government formally launched the Bounce Back Loan Scheme (BBLS) to offer small businesses facing significant financial difficulties additional support during the COVID-19 crisis. In light of amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), in Chapter 3 of the consultation paper, FCA proposes to amend Chapter 7 (Arrears, default, and recovery including repossessions) of the Consumer Credit Sourcebook (CONC) to ensure that the chapter applies to lenders in relation to credit agreements that are exempt agreements by virtue of the amendments to the RAO. In Chapter 4 of the consultation paper, FCA is consulting on changes to the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision (OPBAS) Sourcebook for professional body supervisors..
Comment Due Date: July 05, 2020/July 31, 2020
Keywords: Europe, UK, Banking, Securities, COVID-19, AML/CFT, FCA Handbook, Bounce Back Loan Scheme, Loan Moratorium, Consumer Credit Sourcebook, FCA
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ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.