Featured Product

    FCA and BoE Issue Updates on Brexit Preparations for Financial Sector

    September 11, 2019

    FCA and BoE published important information to help regulated firms in preparing for Brexit. FCA specifies that, as UK prepares to leave EU, regulated firms should have, by now, considered if or how they will be affected and what action they may need to take. FCA also published links to dedicated Brexit websites hosted by certain financial regulators in the European Economic Area (EEA) member states. Furthermore, BoE published a letter from the Governor Mark Carney, in response to a previous Treasury Committee letter concerning the Brexit scenarios that were published by BoE in November 2018. The publication on Brexit scenarios had analyzed how different Brexit outcomes would affect the ability of BoE to meet its monetary and financial stability objectives.

    The UK will leave EU without an implementation period on October 31, 2019, unless a deal is approved or a further extension is agreed. To help firms prepare, FCA has established a dedicated telephone line for firms that constitute a UK business with any business in EEA, that passport into the UK and have not notified FCA for entry into the Temporary Permissions Regime, that have consumers in EEA, and that transfer personal data from EEA. FCA described considerations for UK firms and EEA firms conducting business in UK. FCA also highlighted issues for all firms to be aware of including passporting, changes to legislation in UK, temporary transitional power, data sharing, and communicating with customers affected by Brexit. As a next step in preparing for Brexit, FCA expects that firms should complete their assessment of the extent to which Brexit affects them. If affected, firms should:

    • Work out and plan for implementation of the changes that might have to be made to the business
    • Communicate the information to the customers that might be affected by the changes
    • Continue to consider the implications of a range of possible scenarios, including the potential absence of any implementation period

    BoE had published scenarios on Brexit outcomes in November 2018. The recently published BoE letter highlights that the Brexit scenarios BoE had published earlier were not forecasts, rather they illustrated what could happen under a range of key assumptions. A Treasury Committee letter to BoE had asked whether the analysis published in November 2018 remained fully relevant given any developments since November; if not, how the developments may have changed the outlook in each scenario. The most recent response letter from the BoE Governor states that, since November, there have been some developments in economic data and financial markets, but these do not merit updates to any of the BoE November scenarios. The letter also mentions that advancements in preparations for a no-deal, no-transaction scenario means that the BoE assessment of a worst-case, no-deal, no-transaction scenario has become less severe. The letter expands on details underlying these assessments.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance Securities, Brexit, Financial Stability, Brexit Scenarios, BoE, FCA

    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571