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Risk and Regulation Monthly

The Risk and Regulation Monthly provides a summary of the key International, European and UK regulatory developments and pertinent regulatory activity affecting the Financial Services industry.

* The URLs for the external websites may change over time – links contained within Risk and Regulation Monthly editions are valid at the time of publishing

Current edition

September 2014
September was notable for a flurry of pre-G20 publications from international regulators, including the Financial Stability Board (FSB), the Basel Committee on Banking Supervision (BCBS), the International Association of Insurance Supervisors (IAIS), and the International Organisation of Securities Commissions (IOSCO), on topics such as insurance loss absorbency, bank resolution, risk-weighted-asset consistency, and non-bank finance. Meanwhile the Prudential Regulation Authority (PRA) finalised its policy on the supervision of foreign bank branches in the UK, and there was no shortage of material on the Single Supervisory Mechanism.

Previous editions


Download August 2014 (PDF, 753 KB)
August was busier than expected. Highlights included the ECB’s manual on its Comprehensive Assessment, the PRA’s third consultation on Solvency II transposition, and the FCA’s statement that 2.5 million PPI claims needed to be reassessed.

July 2014 (PDF, 196 KB)
Ahead of the expected summer lull, regulators rushed to publish a large number of papers, most notably on the UK Senior Management and Certification regimes, recovery and resolution, financial benchmarks and EU guidelines on the supervisory review and evaluation process (SREP).

June 2014 (PDF, 200 KB)
Following the surge in legislation ahead of the European elections, June saw a number of final texts published, including the bank Recovery and Resolution Directive (RRD) and the Markets in Financial Instruments Directive and Regulation (MiFID II/MiFIR). In the UK, house prices and mortgages were in focus, with the Financial Policy Committee given new macroprudential powers, while in the Mansion House speech the Chancellor proposed extending benchmark regulation to foreign exchange and commodities.

May 2014 (PDF, 162 KB)
Key regulatory developments in May included Sir Richard Lambert’s recommendation to create the Banking Standards Review Council; ESMA’s publication of a first set of Level 2 measures for MiFID II; and the results of the FCA’s thematic reviews on clarity of fund charges and conflicts of interest in insurance intermediaries, and its policy on dealing commission for fund managers
April 2014 (PDF, 724 KB)
Ahead of the elections, April saw the approval of a major package of legislation in the European Parliament, including the bank recovery and resolution Directive (RRD) and the Markets in Financial Instruments Directive II and accompanying Regulation (MiFID II/MiFIR). EU and UK authorities also released details of the forthcoming bank stress tests, while the Single Supervisory Mechanism continued to develop, with the European Central Bank (ECB) finalising its Framework Regulation and providing further details of its Comprehensive Assessment.

March 2014 (PDF, 1.2 MB)
March saw a number of important developments in the area of conduct risk, with the FCA releasing several thematic reviews and market studies in the run up to the publication of its Risk Outlook, and taking over responsibility for consumer credit regulation. In the EU, Omnibus II was formally approved and political agreement on the Single Resolution Mechanism reached.

February 2014 (PDF, 184 KB)
Among the February highlights were the Framework Regulation on the functioning of the Single Supervisory Mechanism, the PRA’s approach to supervising foreign banks operating in the UK, final rules from the FCA on consumer credit, and political agreement on UCITS V.

January 2014 (PDF, 188 KB)
2014 began with an array of announcements. The European Commission published its long-awaited proposal for a Regulation on structural reform of banks in the EU, while the Basel Committee on Banking Supervision (BCBS) published material on its leverage and liquidity frameworks. Outside banking, political agreement was reached on MiFID II, and the Financial Stability Board (FSB) and the International Organisation of Securities Commissions (IOSCO) consulted on a methodology to identify systemically important non-bank non-insurance companies.


December 2013 (PDF, 1.93 KB)
There was a flurry of activity in December for supervisors and legislators, as they looked to honour their 2013 commitments before year-end, with a compromise reached on the Recovery and Resolution Directive and the Deposit Guarantee Scheme Directive in the EU, while in the UK the Banking Reform Bill received Royal Assent and the PRA published its final rules on CRD IV and recovery and resolution planning.

November 2013 (PDF, 1.31 MB)
In November the start date for Solvency II was finally agreed, with implementation set to begin in 2016. There were important papers from the Financial Stability Board (FSB) on risk appetite and risk culture, and the list of global systemically important banks (G-SIBs) was updated. Banking Union continued to exercise the EU, while UK regulators made a number of pronouncements on capital, leverage, and macroprudential tools.

October 2013 (PDF, 853 KB)
October was a particularly intensive month for regulatory news. Highlights included the Fundamental Review of the Trading Book, and plans to introduce a risk-based global insurance capital regime internationally, the agreement on the Single Supervisory Mechanism and the accompanying asset quality review methodology in the Eurozone, and details on the supervisory regime for asset managers in the UK.

September 2013 (PDF, 1.3 MB)
September saw a wide range of significant developments, including political agreement on the Single Supervisory Mechanism (SSM) in the European Parliament, EU proposals to regulate money market funds (MMFs) and financial benchmarks, and the G20 Leaders’ Summit, where financial regulation remained firmly on the agenda.

August 2013 (PDF, 644 KB)
There was little sign of any holiday let-up among supervisors and standard setters this August, particularly at the international level, with the Financial Stability Board (FSB) issuing key consultations on recovery and resolution planning for non-banks and shadow banking ahead of the September G20 meeting.

July 2013 (PDF, 644 KB)
July was a bumper month for regulation, with a flurry of significant publications and announcements before the holidays began. The UK Government responded to the Parliamentary Commission on Banking Standards (PCBS), the Financial Stability Board (FSB) was busy on several fronts, with a consultation on Risk Appetite Frameworks and finalised guidance for developing resolution strategies, while the Basel Committee on Banking Supervision (BCBS) explored complexity in the capital framework, and the FSB and International Association of Insurance Supervisors (IAIS) designated the first batch of global systemically important insurers.

June 2013 (PDF, 389 KB)
In June, a number of long-awaited regulatory papers appeared, including publication of the CRD 4 package in the Official Journal of the EU, the final report of the Parliamentary Commission on Banking Standards, and EIOPA’s long-term guarantees assessment.

May 2013 (PDF, 818 KB)
May was a busy month for the European Banking Authority (EBA), which launched 15 consultation papers, largely focussed on the Capital Requirements Directive and Regulation package (CRD IV/CRR), but also recovery planning requirements under the proposed Recovery and Resolution Directive (RRD). There was also a flurry of papers on structural reform of the banking sector, with growing interest at the international level.

April 2013 (PDF, 532 KB)
April was as busy as ever: the EU Capital Requirements Directive and Regulation package (CRD IV/CRR) was finally approved, there was another G20 meeting, and the UK transitioned to a twin peaks model of supervision, as the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) opened their doors.

March 2013 (PDF, 643 KB)
March was another busy month. In the EU political agreement was reached on both the Capital Requirements Directive and the Single Supervisory Mechanism, while in the UK the Financial Policy Committee made recommendations on strengthening the capital positions of UK banks, and multiple documents were issued in the run up to the twin-peaks supervisory regime.

February 2013 (PDF, 836 KB)
February was a busy month, with provisional agreement reached between the European Council and Parliament on the revision to the Capital Requirements Directive (CRD4) and Regulation (CRR), and the introduction of the UK Banking Reform Bill to take forward the recommendations of the Independent Commission on Banking (ICB).

January 2013 (PDF, 816 KB)
Issues related to capital, liquidity and financial benchmarks dominated the policy agenda this month: the Basel Committee published work on risk-weighted assets;  the much anticipated revised liquidity rules for Basel III were issued; and the European Supervisory Authorities (ESAs) launched several papers on the regulation of Euribor and benchmark-setting more broadly.



December 2012 (PDF, 787 KB)
Several widely anticipated documents were issued in December, including the European Council’s agreement on a Single Supervisory Mechanism in the euro area and the first report of the UK Commission on Banking Standards. Additionally, the UK Financial Services Bill received Royal Assent.

November 2012 (PDF, 801 KB)
November saw the appointment of Mark Carney as the Governor of the Bank of England and, accompanying the G20 meeting in Mexico City, several reports by the Financial Stability Board (FSB), in particular on recovery and resolution; intensity and effectiveness of SIFI supervision; shadow banking; and a revised list of globally systemically important banks (G-SIBs).

 October 2012 (PDF, 1.5 MB)
A number of important documents were issued in October, including on Basel III implementation progress internationally, on banking structural reform in the EU and the UK, on how the Prudential Regulation Authority’s (PRA) and the Financial Conduct Authority’s (FCA) will approach supervision, and the final instalment of the Mortgage Market Review.

 September 2012 (PDF, 962 KB)
September was a busy month, with highlights including the announcement of the proposals on “banking union” in Europe, an overhaul of the client money arrangements, and changes to the LIBOR process.

August 2012 (PDF, 918 KB)
It was rather busier in August than usual, as the LIBOR story rumbled on, Basel III faced delay, and anticipation grew of the announcement of “banking union” as an accompaniment to monetary union in Europe.

July 2012 (PDF, 712 KB)
July saw the headlines dominated by the continuing LIBOR saga, but there was also the normal pre-holiday rush of announcements, with papers on financial market infrastructures, UCITS funds and Solvency II.

June 2012 (PDF, 1.54 MB)
June was another very busy month, with a lot of activity around the G20 meeting, as well as the release of the EU proposals on recovery and resolution, proposals for banking union in Europe, a White Paper on banking reform, and at the end of the month the LIBOR saga.

May 2012 (PDF, 934 KB)
May was marked by important announcements on systemic insurers, the fundamental review of the trading book, structural reform in European banking and banking resolution. There were also a large number of FSA enforcement cases

Download April 2012 (PDF, 889 KB)
April saw a paper on governance from the Group of 30, a flurry of activity on shadow banking as the G20 met, publication of 24 Principles for financial market infrastructures and a large number of speeches from UK policymakers.

Download March 2012 (PDF, 780 KB)
Issues related to financial stability and macro-prudential supervision, and shadow banking, dominated the policy agenda this month.

 Download February 2012 (PDF, 1.49 MB) 
February was dominated by work on EMIR (the European Market Infrastructure Regulation) and preparations for the “twin peaks” regulatory structure in the UK.

Download January 2012 (PDF, 697 KB) 
The month was dominated by the lead-up to the publication of the Financial Services Bill in the UK, and a flurry of international work-plans for 2012.


Download December 2011 (PDF, 1.19 MB) 
Before Christmas we had HMG’s response to the Independent Commission on Banking, the next installment of the mortgage market review, and the views of the joint parliamentary committee on the draft financial services bill.

Download November 2011 (PDF, 1.2 MB) 
There have been important announcements on systemic banks, a further round of EU bank stress tests, and more on the early intervention approach to conduct issues from the FSA.

 Download October 2011 (PDF, 1.19 MB)
We have seen a range of announcements from the Financial Stability Board and the G20, for instance on systemic banks, and a flurry of activity from the EU, on short selling, market infrastructure reform, market abuse and MiFID.

Download September 2011 (PDF, 1.19 MB) 
The news was dominated by the report from the Independent Commission on Banking, but there were also important developments on systemic banks, derivatives data and a financial transaction tax.     

Download August 2011 (PDF, 480 KB) 
The holiday period brought a lull in regulatory announcements, although with important news on recovery and resolution plans, and short selling.     

Download July 2011 (PDF, 1.5 MB)
July was another very busy month, with important announcements on systemic firms (including capital surcharges and resolution arrangements), EU stress tests (both in banking and insurance), new capital and liquidity rules for EU firms, and high-frequency trading.

Download June 2011 (PDF, 131 KB)
June was described by Deputy Governor Paul Tucker as “pretty busy”. The Chancellor confirmed that major UK retail banking operations would be ring-fenced as recommended by the Independent Commission on Banking; there was a white paper on financial regulation (and papers on the prudential supervision of insurance and the work of the Financial Conduct Authority); the first meeting of the interim Financial Policy Committee; and an announcement on capital surcharges for significantly important banks.

Download May 2011 (PDF, 122 KB)
The past month saw an important paper setting out the banking supervisory approach of the new Prudential Regulation Authority, several developments on customer complaint-handling, and a speech by Paul Tucker from the Bank of England on securities markets supervision and financial stability.

Download April 2011 (PDF, 539 KB)
The headlines this month were dominated by publication of the interim report of the Independent Commission on Banking, and the court case on payment protection insurance.

Download March 2011 (PDF, 120 KB)
March was a quieter month, although with initiatives on systemic risk and market infrastructure, finalised guidance for the Bribery Act, and further work on stress tests and Solvency II.

Download February 2011 (PDF, 145 KB)
This was another busy month, with more details published of the proposed regulatory structure in the UK, the latest state of play on the G20 agenda, and the first Retail Conduct Risk Outlook from the FSA.

Download January 2011 (PDF, 128 KB)
January was marked by important papers from the EU on crisis management, the FSA on product regulation, and John Vickers on the Structure of banking.

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