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FCA reveals urban-rural differences in how consumers experience financial services

21 June 2018

The Financial Conduct Authority (FCA) has published the latest analysis from its Financial Lives survey. Today’s report puts the spotlight on the financial situation of people across the UK and highlights where in the UK people may be more vulnerable. This report finds notable differences between urban and rural areas. In rural areas, where there is greater reliance on bank branches, a higher proportion of people have difficulty getting to a bank and tend not to be able to use online banking. However, people in rural areas are more likely to be satisfied with their overall financial circumstances. By contrast, people living in urban areas are less likely to be satisfied with their overall financial position, are more likely to use high-cost loans and on average have higher levels of unsecured debt.

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FCAs’ response to Law Commission recommendations on pension funds and social investment

20 June 2018

The Law Commission made recommendations to Government and the Financial Conduct Authorities (FCA) on Pension Funds and Social Investment. A final joint response to this has now been published. he Law Commission made several recommendations for us in relation to Independent Governance Committees (IGCs), which we have considered carefully.
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Central banks and financial oversight

19 June 2018

In his speech, Fernando Restoy, Chairman, Financial Stability Institute, Bank for International Settlements, on the institutional organisation of financial supervision. “I will focus on how supervisory models have changed since the financial crisis and, in particular, how the role of central banks has evolved in that regard. For that purpose I will draw on a recent publication by the Financial Stability Institute (Calvo et al (2018)) in which we analyse the changes observed in the organisation of financial sector supervision during the last decade across a broad sample of jurisdictions.”

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Federal Reserve Board approves rule to prevent concentrations of risk between large banking organizations and their counterparties from undermining financial stability

18 June 2018

The Federal Reserve Board on Thursday approved a rule to prevent concentrations of risk between large banking organizations and their counterparties from undermining financial stability. As demonstrated during the financial crisis, excessive exposure between the largest financial institutions spread contagion and eroded confidence in these institutions.

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“Hot Property: the housing market in major cities”

14 June 2018

In his opening speech at the DNB housing market seminar, Klaas Knot shares his view on how housing prices can become a problem for broader economic wellbeing, and thus form an area of interest to central bankers. A more balanced and suitable supply of housing is needed. The new Dutch housing agenda is a promising example of the leading role our government should play on the Dutch housing market.

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Swiss authorities propose major money-laundering law reforms

14 June 2018

Switzerland’s federal government appears poised to crack down on money laundering in the wake of banking scandals and investigations linked to FIFA chiefs and Vladimir Putin’s favorite cellist among others. After the International Consortium of Investigative Journalists 2016 Panama Papers investigation, the inter-governmental Financial Action Task Force (FATF) called on the Swiss, known for bank secrecy, to do more to thwart financial crime.

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Recent RMB policy and currency co-movements

13 June 2018

The study ‘Recent RMB policy and currency co-movements’ investigates how variation in the determinants of the renminbi’s daily fixing since the August 2015 exchange rate reform maps on to variation in the co-movement of the renminbi with regional and other emerging market currencies. We first identify three post-reform periods of RMB management: transition, basket management and countercyclical management. The co-movement with regional and Latin American currencies peaked in the basket period, when the daily fixing was most predictable and multilateral. By contrast, the decline in co-movement in the countercyclical management period between May and July 2017 leaves it premature to speak of a renminbi zone. The dependence of the co-movements on renminbi management has important implications for renminbi internationalisation.

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FCA fines and imposes a restriction on Canara Bank for anti-money laundering systems failings

12 June 2018

Financial services firms are required to maintain robust anti-money laundering (AML) systems and controls, since they are at risk from those seeking to launder the proceeds of crime or to finance terrorism. Between 26 November 2012 and 29 January 2016, Canara failed to maintain adequate AML systems and failed to take sufficient steps to remedy identified weaknesses, despite having been notified of shortcomings in its AML systems and controls.
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New premium listing category for sovereign-controlled companies

12 June 2018

The Financial Conduct Authority (FCA) has today finalised rules creating a new category within its premium listing regime to cater for companies controlled by a shareholder that is a sovereign country. In July last year, the FCA consulted on proposals aimed at encouraging such companies to choose the higher standards of premium listing, rather than standard listing.The FCA thinks there is considerable benefit to investors if corporate issuers agree to meet these additional premium requirements.
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