EBA publishes thematic report on the impact of fintech on payment and e-money institutions
The EBA has conducted a thematic review on the impact financial technology has on the business models of payment and e-money institutions. The report, published July 8th, covers current key trends shaping institutions’ business models, the different approaches to financial technology and the implementation of innovative technology.
FATF publishes guidance on assessing terrorist financing risk
The report by the Financial Action Task Force highlights the importance of establishing regular mechanisms to monitor terrorist financing risk on an ongoing basis, taking into account current threats and developments.The report covers: key considerations when determining the scope and governance of a terrorist financing risk assessment. Examples of information sources are provided for the identification of terrorist financing threats and vulnerabilities, and considerations for different country contexts
Read the report here.
Economic Crime Plan 2019 to 2022 published
On the 12th July, HM Treasury, the Home Office and UK Finance published the Economic Crime Plan 2019 to 2022. The Plan sets out seven key areas that were agreed in January 2019 by the Economic Crime Strategic Board. They seven areas are as follows:
FCA consults on Guidance for firms on the fair treatment of vulnerable customers
The FCA has launched a Guidance Consultation (GC19/3) in order to provide regulatory clarity for firms involved in the supply of products or services to retail customers who are actually, or are potentially, vulnerable.
The FCA wants to see doing the right thing for vulnerable consumers deeply embedded in firms’ culture. Whilst many firms have made significant progress in how they treat vulnerable consumers, the FCA believes there needs to be more consistency across financial services sectors, and that in some cases, firms are clearly failing to consider the needs of vulnerable consumers, leading to harm.
FCA Policy Statement PS19/20 – Optimising the Senior Managers & Certification Regime: Feedback to CP19/4 and Final Rules
The FCA has published a Policy Statement (PS19/20) setting out final rules regarding the extension of the Senior Managers & Regime (SMCR) to FCA solo-regulated firms (including claims management companies) on 9 December 2019, following its Consultation Paper (CP19/4) in January 2019.
The main changes include the following:
MiFID II product governance – Investment Association publishes Guidance
The Investment Association published Guidance on the 31st July on the distribution information required to meet product manufacturers’ regular product review obligation under MiFID II and the FCA’s Product Intervention and Product Governance (PROD) Sourcebook.