Financial Stability Board and Basel Committee on Banking Supervision
LIBOR transition - FSB and Basel Committee publish report on supervisory issues - 9 July 2020
The Financial Stability Board (FSB) and the Basel Committee on Banking Supervision have published a report, addressed to the G20 finance ministers and central bank governors, on supervisory issues associated with benchmark transition, including the London Interbank Offered Rate (LIBOR).
Among other things, the report states that most FSB jurisdictions have a strategy in place to address LIBOR transition but significant supervisory challenges remain. The report also sets out three supervisory recommendations to support LIBOR transition, which include:
- improving the identification of LIBOR transition risks and challenges by ensuring that relevant authorities issue public statements to promote awareness of transition risks, undertake regular surveys of LIBOR exposure and request updates on progress from financial institutions;
- that authorities should establish a formal transition strategy and consider increasing the intensity of their supervisory actions where individual banks’ preparations are unsatisfactory in order to facilitate LIBOR transition; and
- promoting industry-wide coordination on LIBOR transition, including legislative solutions and exchanging information on best practices and challenges.
FSB and Basel Committee report on supervisory issues associated with LIBOR transition
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Press release
Basel Committee
Basel III implementation - Basel Committee publishes eighteenth progress report - July 2020
The Basel Committee on Banking Supervision has published its eighteenth progress report on the implementation of Basel III standards as at the end of May 2020. Its previous progress report was published in October 2019. It refers to the Basel III post-crisis reforms, published in December 2017, and the finalised market risk framework, published in January 2019, which will come into effect from 1 January 2023. These reforms were due to come into effect from 1 January 2022 but have been delayed as a result of the economic impact and disruption caused by the COVID-19 pandemic.
Basel Committee eighteenth progress report on the implementation of Basel III standards
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Press release
Credit valuation adjustment risk framework - Basel Committee publishes revised standard - July 2020
The Basel Committee on Banking Supervision has published an updated standard on the regulatory capital treatment of credit valuation adjustment (CVA) risk for derivatives and securities financing transactions (SFTs). This follows targeted revisions made to the CVA risk framework following a consultation on proposed changes in November 2019. The updated standards replace the version published in December 2017.
Revisions made to the standard include: (i) the recalibration of risk weights; (ii) the differential treatment of certain client cleared derivatives; and (iii) the recalibration of the standardised and basic approach.
The revised standard comes into effect on 1 January 2023.
Basel Committee targeted revisions to the CVA risk framework
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Press release
European Commission
Capital Markets Union - European Commission consults on roadmap for Action Plan - 7 July 2020
The European Commission has published for consultation a roadmap on the development of an Action Plan for the Capital Markets Union (CMU). The roadmap notes that new challenges, including in relation to the green and digital transformations, COVID-19 and Brexit need to be addressed.
Some specific objectives outlined in the roadmap include: (i) improving the ecosystem for capital raising for EU businesses, using new technologies, with a focus on small and medium sized enterprises (SMEs); (ii) supporting the creation of a more efficient pan-European capital markets architecture; (iii) promoting more retail investor participation; and (iv) promoting cross-border investment and ensuring better single market integration.
The consultation period closes on 4 August 2020. The Commission intends to adopt a communication on the CMU Action Plan in Q3 2020.
European Commission consultation on an Action Plan for the Capital Markets Union
NIS Directive - European Commission publishes consultation - 7 July 2020
The European Commission has published a consultation reviewing the EU framework of cyber security rules under Directive (EU) 2016/1148 on security of network and information systems (NIS Directive). The NIS Directive entered into force in August 2016 and aims to ensure that EU member states are better prepared for cyber incidents by obliging firms that provide essential services in vital sectors, including banking and financial market infrastructures (FMIs), to protect their information technology systems and report major cybersecurity incidents to their national authorities.
In implementing the NIS Directive, the UK elected not to identify any operators of essential services in the banking and financial market infrastructure sub-sectors.
The consultation period closes on 2 October 2020.
European Commission webpage on its consultation on its review of EU cybersecurity under the NIS Directive
Press release
Official Journal of the European Union
CRD V - Corrigendum published in the Official Journal - 26 June 2020
A Corrigendum to the Capital Requirements Directive (EU) 2019/878 (CRD V) has been published in the Official Journal of the European Union. The Corrigendum makes minor technical revisions to various Articles under the Capital Requirements Directive (2013/36/EU) (CRD IV), as amended by CRD V, including: (i) Article 21a (approval of financial holding companies and mixed financial holding companies); (ii) Article 21b (intermediate EU parent undertaking); (iii) Article 104a (additional own funds requirement); (iv) Article 141 (restrictions on distributions); and (v) Article 141b (restriction on distributions in case of failure to meet the leverage ratio buffer requirement).
Official Journal: Corrigendum to CRD V making minor technical amendments to CRD IV
EEA Agreement - Decisions amending Annex IX (Financial Services) published in the Official Journal - 2 July 2020
EEA Joint Committee Decisions 80/2019, 81/2019, 82/2019 and 83/2019 of 29 March 2019, which amend Annex IX (Financial Services) to the EEA Agreement, have been published in the Official Journal of the European Union.
The Decisions amend Annex IX (Financial Services) to incorporate several Commission Implementing and Delegated Regulations concerning various aspects of CRD IV, the Capital Requirements Regulation (575/2013/EU) (CRR) and the European Market Infrastructure Regulation (648/2012/EU) (EMIR) into the EEA Agreement.
Official Journal: EEA Joint Committee Decision 80/2019 incorporating various aspects of CRD IV and CRR into the EEA Agreement
Official Journal: EEA Joint Committee Decision 81/2019 incorporating various aspects of CRD IV and CRR into the EEA Agreement
Official Journal: EEA Joint Committee Decision 82/2019 incorporating various aspects of CRD IV and CRR into the EEA Agreement
Official Journal: EEA Joint Committee Decision 83/2019 incorporating various aspects of CRD IV, CRR and EMIR into the EEA Agreement
CRR - ECB Guidelines on materiality threshold for credit obligations past due for less significant institutions published in the Official Journal - 8 July 2020
Guideline (EU) 2020/978 of the European Central Bank (ECB) of 25 June 2020, on the exercise of discretion under Article 178(2)(d) of the CRR by national competent authorities (NCAs) in relation to less significant institutions (LSIs) with regard to the threshold for assessing the materiality of credit obligations past due, has been published in the Official Journal of the European Union. The ECB adopted the Guidelines in June 2020 following its prior consultation in January 2020.
The Guidelines set a single materiality threshold for all LSIs within the single supervisory mechanism (SSM) in respect of both retail and non-retail exposures. The threshold comprises: (i) an absolute component, detailing the specific maximum amount for the sum of all amounts past due owed by an obligor; and (ii) a relative component, a percentage reflecting the amount of the credit obligation past due in relation to the total amount of all on-balance sheet exposures to that obligor for the credit institution, the parent undertaking, or any of its subsidiaries.
The new Guidelines align the threshold definition with that used for banks supervised by the ECB under ECB Regulation (EU) 2018/1845.
The Guidelines take effect on the day of its notification to the NCAs of the participating member states. NCAs must comply with the Guidelines by no later than 31 December 2020.
Official Journal: ECB Guidelines on materiality threshold for credit obligations past due for less significant institutions under the CRR
Press release
European Banking Authority
COVID-19 - EBA publishes report on the implementation of selected prudential policies - 7 July 2020
The European Banking Authority (EBA) has published a report clarifying the implementation and application of its prudential framework, with particular reference to certain measures adopted as a consequence of COVID-19. These include its Guidelines on legislative and non-legislative moratoria on loan repayments, published in April 2020, under which certain exposures “should not necessarily be classified as forborne under Article 47b” of the CRR.
Among other things, the report:
- addresses a number of interpretative questions concerning those Guidelines and presents an overview of the general payment moratoria in place in the EU, based on notifications sent to the EBA; and
- considers supervisory and regulatory expectations regarding the treatment of COVID-19 operational risk losses in capital requirement calculations.
The EBA will continue to monitor the implementation of COVID-19-related prudential policies and expects to update the report at a later stage.
EBA report on the implementation of selected COVID-19 prudential policies
Press release
COVID-19 - EBA publishes statement on resolution planning - 9 July 2020
The EBA has published a statement on resolution planning in light of COVID-19. It reiterates the importance of resolution planning in times of uncertainty to ensure that resolution stands as a credible option. The EBA calls on resolution authorities to consider the impact of COVID-19 on banks’ resolution strategies, resolvability assessments and their business models when taking decisions on resolution plans and on the minimum requirement for own funds and eligible liabilities (MREL).
EBA statement on banks’ resolution planning in light of COVID-19
Press release
European Central Bank
COVID-19 - ECB publishes article on supervisory impact on EU banking business and the future shape of the sector - 7 July 2020
The ECB has published an article by Kerstin af Jochnick, (Member of the ECB Supervisory Board) entitled ‘Supervising the new normal’, considering the regulatory landscape for EU banking business in the wake of COVID-19. Some of the key points emerging from the article include that:
- the crisis “has redefined what constitutes meaningful supervisory engagement, in both a conceptual and an operational sense”. Many of the indicators normally associated with banks’ financial deterioration pre-COVID-19 may no longer hold the same signalling value and therefore need to be reconsidered. Moreover, social distancing rules and travel restrictions have precluded the use of parts of supervisory toolkits;
- non-performing loans (NPLs) are very likely to increase in the future. Although the ECB is likely to exercise flexibility when implementing its guidance on NPLs to help banks cope with the impact of the current economic downturn, it is important for banks to have tight loan deterioration monitoring and management strategies enabling them to identify risks at an early stage;
- COVID-19 is likely to accelerate some of the regulatory trends observed pre-crisis, including digitalisation as an integral part of banks’ business models and challenges to profitability; and
- temporary linkages between domestic banking systems and their respective sovereigns as a result of government guarantees to banks and the requirement of payment moratoria should not become entrenched.
ECB article on the impact of COVID-19 on EU banking business
Bank of England
RTGS renewal programme - Bank of England publishes Industry Review of CHAPS enhanced ISO 20022 messages - July 2020
The Bank of England has published an Industry Review on the implementation of the CHAPS enhanced ISO 20022 payment messaging standard, which forms part of the Bank’s real-time gross settlement (RTGS) renewal programme.
The Bank seeks feedback on the near-final message schema published as part of the Review, ahead of publication of the final version in September 2020. It encourages stakeholders to comment on the delivery of policy objectives via the ISO 20022 standard, particularly with respect to the use of enhanced data. Payment service providers (PSPs) are asked to start considering how they will collect and transmit the additional information that will be required, including the necessary changes to their customer channels.
A statement is expected to be published in the coming weeks to confirm the Bank’s CHAPS ISO 20022 migration timelines, in light of recent rescheduling announcements from SWIFT.
The deadline for comments on the near-final versions of the enhanced messages is 31 July 2020.
Bank of England industry review of CHAPS enhanced ISO 20022 messages as part of its RTGS renewal programme
Factsheet
Webpage
Prudential Regulation Authority
PRA Policy Statement PS15/20 - Pillar 2A: Reconciling capital requirements and macroprudential buffers - July 2020
The PRA has published a Policy Statement (PS15/20) setting out how it will update the Pillar 2A capital framework to take into account the additional resilience associated with higher macroprudential buffer requirements in a standard risk environment. This follows the PRA’s Consultation Paper (CP2/20), published in February 2020, referring to the Financial Policy Committee’s decision in December 2019 to increase the UK countercyclical capital buffer (CCyB) rate that it expects to set in a standard risk environment from approximately 1% to 2%.
The PRA has decided to implement its proposals as consulted on. Therefore, it will amend Supervisory Statement (SS)31/15 ‘The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)’ to clarify the macroprudential considerations to be taken into account when assessing the level of capital required to ensure the sound management and coverage of firms’ risks.
The policy changes will take effect from 6 July 2020. The PRA will assess the appropriateness of any resulting reduction in Pillar 2A capital to ensure that the remaining Pillar 2A capital provides sound management and coverage of the risks to which each firm is exposed. The PRA will apply the Pillar 2A reduction, where applicable, on or before Wednesday 16 December 2020.
PRA Policy Statement PS15/20 – Pillar 2A: Reconciling capital requirements and macroprudential buffers
Updated Supervisory Statement (SS)31/15 ‘The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)’
Webpage
LIBOR transition - PRA publishes statement on impact on resolution rules - 7 July 2020
The PRA has published a statement setting out its view on the implications of the transition away from LIBOR for contracts within scope of the Contractual Recognition of Bail-In (CROB) and Stay in Resolution (Stay) Parts of the PRA Rulebook.
The PRA states that:
- firms may need to consider whether existing contracts in scope of the CROB and Stay Parts of the PRA Rulebook, that are changed to reflect the transition away from LIBOR, could be considered materially amended and subsequently require the inclusion of CROB and Stay terms;
- where the sole purpose of an amendment to a liability (as defined in CROB) or a financial arrangement (as defined in Stay) is to transition away from LIBOR, the amendment should not be considered a material amendment for the purposes of the CROB or Stay Parts of the PRA Rulebook;
- firms should consider adding CROB and Stay terms into the documentation for any third-country law governed liability or financial arrangement that is amended for the sole purpose of transitioning away from LIBOR, as it enhances firm resolvability; and
- in accordance with the Bank of England’s MREL Statement of Policy, firms should consider whether having non-Common Equity Tier 1 (CET1) own funds instruments governed by third-country law, but without statutory or contractual recognition of UK bail-in rules, would create difficulties for resolution.
PRA statement on the impact of LIBOR transition on resolution rules
PRA Consultation Paper CP20/6 - Financial Services Compensation Scheme: Temporary High Balances Coverage Extension - July 2020
The PRA has published a Consultation Paper (CP20/6) setting out its proposals to extend coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balances (THBs) from six to twelve months from the date of deposit, or the first date on which the THB becomes legally transferable to the depositor. The extension would be temporary and is being proposed in response to the impact of COVID-19 on residential property and investment markets and access to banking services for some depositors.
The PRA proposes to: (i) extend THB coverage from six to twelve months up to, and including, 31 January 2021; and (ii) revert THB coverage back to six months from 1 February 2021. The PRA also proposes corresponding amendments to the Depositor Protection Part of the PRA Rulebook and the Deposit Guarantee Scheme Statement of Policy.
The PRA will not require firms to update the information sheet in Annex 1 of Depositor Protection Part of the PRA Rulebook to reflect the extension of THB coverage. If firms do decide to amend their information sheets, it would expect them to change them again before 1 February 2021.
The consultation period closes on 23 July 2020.
PRA Consultation Paper CP20/6 – Financial Services Compensation Scheme: Temporary High Balances Coverage Extension
Webpage
Financial Conduct Authority
COVID-19 - FCA consults on draft updated temporary guidance for motor finance and high-cost credit customers - 3 July 2020
The FCA has published for consultation draft updated temporary guidance for motor finance and high-cost credit customers in the wake of COVID-19. It covers motor finance, high-cost short-term credit, pawnbroking agreements, rent-to-own (RTO) and buy-now pay-later (BNPL) credit customers and follows the FCA’s initial temporary guidance and financial relief measures for such customers, which was published in April 2020.
Among other things, the draft guidance outlines the support firms are expected to provide to motor finance and high-cost credit customers approaching the end of an initial payment freeze, as well as those who are yet to request one. The proposals include the following:
- firms should contact customers who are at the end of a payment freeze to find out if they can resume payments and agree a plan for repayment;
- for customers who continue to face temporary payment difficulties, firms should continue to provide ongoing support, including by offering a further payment deferral or reducing payments to an amount the customer can afford for a further three months;
- the availability of support measures are to be extended to allow customers who have not yet had a payment deferral to request one up until 31 October 2020;
- the temporary ban on repossessions should be extended to 31 October 2020 for motor finance and RTO customers still facing financial difficulties as a result of COVID-19 and who need their vehicles or goods;
- any full or partial payment freezes offered under the guidance should not impact negatively on credit files; and
- firms should be particularly aware of the needs of vulnerable customers when implementing the guidance. Firms should also help customers understand the types of debt help and money guidance that are available and encourage them to access the resources that can help them.
The consultation period closed on 6 July 2020. The FCA expects to finalise the updated temporary guidance shortly. Unless renewed or updated, the temporary guidance will expire on 31 October 2020, except where a customer has been granted a payment deferral that continues beyond 31 October 2020, where certain aspects of the guidance will remain in force.
Press release: FCA consults on updated temporary guidance for motor finance and high-cost credit customers in light of COVID-19
FCA draft updated temporary guidance for firms in relation to motor finance customers in light of COVID-19
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FCA draft updated temporary guidance for firms in relation to high-cost short-term credit customers in light of COVID-19
Webpage
FCA draft updated temporary guidance for firms in relation to pawnbroking, RTO and BNPL customers in light of COVID-19
Webpage
COVID-19 - FCA publishes finalised temporary guidance for payment firms - 9 July 2020
The FCA has published finalised temporary guidance on strengthening payment and e-money firms’ prudential risk management and safeguarding customers’ funds. The FCA consulted on its draft guidance in May 2020. The guidance builds on the FCA’s payment services approach document and aims to provide additional direction on how payment and e-money firms can ensure compliance with the safeguarding requirements under the Electronic Money Regulations 2011 and the Payment Services Regulations 2017, particularly in light of COVID-19, which has impacted firms’ financial strength and the availability of external funding.
FCA finalised guidance for payment firms on prudential risk management and safeguarding customers’ funds in light of COVID-19
FCA Feedback Statement FS20/10 - COVID-19 and safeguarding customers’ funds: Guidance for payment and e-money firms
Webpage
Payment services and e-money firms - FCA publishes ‘Portfolio Strategy’ letter on compliance with regulatory obligations - 9 July 2020
The FCA has published a ‘Portfolio Strategy’ letter from David Geale (Director of Retail Banking and Payments Supervision at the FCA) addressed to the CEOs of payment services firms and e-money issuers, setting out the FCA’s supervisory expectations of such firms in relation to their regulatory obligations and the key risks which may cause harm to consumers.
The letter highlights six areas in which the FCA believes that many firms may be failing to meet their regulatory obligations, including under the Payment Services Regulations 2017, the Electronic Money Regulations 2011 and the FCA’s Principles for Businesses, which were extended to apply to these firms from 1 August 2019.
Areas of non-compliance covered by the letter include: (i) firms’ safeguarding arrangements for customer funds; (ii) the management of prudential risks, including the calculation of own funds requirements; (iii) the management of financial crime risks, including anti-money laundering (AML) systems and controls; (iv) firms’ financial promotions and consumer communications; (v) firms’ governance and oversight of their regulated processes, including activities undertaken on their behalf by agents and distributors; and (vi) firms’ record keeping and regulatory reporting.
The FCA states that it will keep all the areas of concern outlined in its letter under review and will not hesitate to take action against non-compliant firms where necessary.
FCA ‘Portfolio Strategy’ letter to payment services firms and e-money issuers on their compliance with regulatory obligations
Mortgage prisoners - FCA call on intermediaries to help consumers - 9 July 2020
The FCA has announced that it wants to engage with mortgage intermediaries that are willing to help so-called ‘mortgage prisoners’ (borrowers who are unable to switch to a better mortgage deal, even though they are up-to-date with their payments) identify and move to an alternative lender where possible, or signpost them to additional support, including debt advice services.
This follows the FCA’s Policy Statement (PS19/27), published in October 2019, which introduced changes to its responsible mortgage lending rules to help make it easier for mortgage prisoners to switch to alternative mortgage providers by, among other things, allowing mortgage lenders to carry out a modified affordability assessment for consumers looking to switch to a new mortgage deal on their current property. Following an extension granted in light of COVID-19, mortgage administrators are required to contact eligible customers by 1 December 2020.
The FCA states that intermediaries that wish to apply must: (i) be able to access mortgage options that represent the whole of the market; (ii) be able to advise on later life options or have a relevant referral route; (iii) be able to advise on debt consolidation or have a relevant referral route; (iv) not charge a fee until an application is submitted to a lender; and (v) collect and share with the FCA relevant data on the support they have provided.
Intermediaries satisfying the five criteria above and interested in helping mortgage prisoners should submit expressions of interest to the FCA by 6 August 2020.
Press release: FCA calls for mortgage intermediaries to help mortgage prisoners
Competition and Markets Authority
Payday Lending Market Investigation Order 2015 - CMA publishes letter regarding breaches - 7 July 2020
The Competition and Markets Authority (CMA) has published a letter from Alistair Thompson (Director of Remedies, Business and Financial Analysis at the CMA) to Shelby Finance Ltd (SFL) regarding breaches of Part 4 of the Payday Lending Market Investigation Order 2015. Part 4 of the Order prohibits lenders from making payday loans unless customers are given a summary of the cost of borrowing containing specific information that must be delivered at specific times. The purpose of those provisions is to ensure that customers are aware of the fees and charges associated with their loan product.
In September 2019, SFL reported three breaches of Part 4 of the Order to the CMA. The breaches occurred between August 2018 and July 2019 and concerned a failure to provide approximately 15,000 customers with the required summary of borrowing costs within the time periods and/or by the method required.
The CMA is particularly concerned that SFL continued to issue payday loans during this period, in breach of the Order, and considers the cumulative effect of the breaches to be serious, particularly because of the impact on potentially vulnerable consumers. However, it states that SFL has taken steps to rectify and minimise the impact of its breaches on customers, including providing retrospective summaries of borrowing costs online and writing off over £527,000 in loans to customers affected. SFL has also implemented measures to ensure future compliance with the Order through increased operational and governance oversight.
Letter from Alistair Thompson (Director of Remedies, Business and Financial Analysis at the CMA) to Shelby Finance Ltd regarding breaches of the Payday Lending Market Investigation Order 2015
Press release
Business Banking Resolution Service
Complaints - BBRS publishes report on live pilot - July 2020
The Business Banking Resolution Service (BBRS) has published a report detailing key aspects of its new dispute resolution service, which is currently in its live pilot phase. The BBRS is a non-profit organisation set up to resolve disputes between eligible small and medium-sized enterprises (SMEs) and participating banks. It expects to launch officially in autumn 2020.
BBRS report containing perspectives on the development on the new dispute resolution service for SMEs
Press release
UK Finance
SCA implementation - UK Finance publishes article on planned implementation and compliance under PSRs 2017 - 3 July 2020
UK Finance has published an article on its planned implementation of strong customer authentication (SCA) requirements for e-commerce transactions in the UK under the Payment Services Regulations 2017.
UK Finance has developed an implementation plan for ensuring compliance with the SCA requirements, which aims to provide clarity to all parties involved in the e-commerce payment ecosystem, ensuring they understand the key high-level milestones and the UK industry plan. The plan includes a gradual and controlled introduction of SCA in advance of the UK enforcement date of 14 September 2021.
Although not yet published, the article indicates that the implementation plan consists of three main phases: (i) Development (2020); (ii) Market readiness (Jan – May 2021); and (iii) Full ramp up (June – Sept 2021). This final phase involves the gradual introduction of SCA with a period of adjustment to minimise customer impact. Issuers will start to conduct random checks of the SCA compliance of e-commerce transactions.
UK Finance article on the implementation of SCA requirements for e-commerce transactions under PSRs 2017
Islamic Financial Services Board
COVID-19 - IFSB publishes statements on the impact on Islamic banking and capital markets - 8 July 2020
The Islamic Financial Services Board (IFSB) has published two statements on the impact and implications of COVID-19 on aspects of the Islamic banking and capital markets.
The statement on Islamic banking seeks to clarify the treatment of payment moratoriums, the expected credit loss (ECL) approach and profit-sharing investment accounts in-line with Shariah rules and principles and guidance issued by the IFSB, as well as other international standard-setters. The Islamic capital markets statement focuses on investor protection and highlights areas for greater regulatory vigilance.
The IFSB will issue further guidance and information where necessary.
IFSB statement on Islamic banking in light of COVID-19
IFSB statement on Islamic capital markets in light of COVID-19
Press release
Recent Cases
Davis v Lloyds Bank plc, [2020] EWHC 1758 (Ch), 3 July 2020
Claim for damages for breach of statutory duty in dealing with a complaint – classification of interest rate hedging product during review process – definition of ‘complaint’ - section 138D FSMA 2000 - DISP sourcebook in the FCA Handbook
The High Court has delivered a ruling on two preliminary issues relating to a claim for damages arising under a process agreed by the defendant bank with the FCA in 2012 to review the sale of certain interest rate hedging products. The claimant, Mr Davis, had agreed to participate in the review but was unhappy with the amount of redress offered to him.
The claim was brought under section 138D(2) of FSMA 2000 for breach of statutory duty to deal with a complaint “fairly, consistently and promptly” in accordance with rule 1.4.1R of the Dispute Resolution: Complaints sourcebook (DISP) in the FCA Handbook. Mr Davis argued that he had made a ‘complaint’ (within the meaning of DISP) and the bank owed him a statutory duty to consider the complaint in accordance with the terms of the review as agreed between the bank and the FCA.
The High Court (Sarah Worthington QC) dismissed Mr Davis’ claim. She held that Mr Davis, in accepting the offer to participate in the review, had not made a ‘complaint’ in accordance with DISP. She also held that the DISP rules did not require the bank to assess a complaint in accordance with the review process as agreed between the FCA and the bank.
Davis v Lloyds Bank plc [2020] EWHC 1758 (Ch)
Please see the Brexit section for an item on the European Commission’s updated sector-specific stakeholder preparedness notices, including for the banking sector.
