FCA Consults on Various Handbook Amendments
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..
Related Links
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
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Related Articles
EBA Guide to Monitor Threshold for Intermediate Parent Undertakings
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
PRA Finalizes Approach to Supervision of International Banks
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
FCA Issues PS21/9 on Implementation of Investment Firms Regime
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
EBA Proposes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
IOSCO Proposes Recommendations on ESG Ratings and Data Providers
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
ESMA Group Issues Recommendations on RFR Switch in Interdealer Market
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
EC to Defer Application of SFDR Standards Till July 2022
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
EIOPA Consults on Reporting and Disclosures Under Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
