20th March 2017

BBA Brief – 20 March 2017

City calls for measures to retain UK competitiveness

The Financial Times (£, p3) reports that City organisations have called for steps to ensure the UK remains competitive after Brexit, including measures to encourage FinTech, employment of skilled labour and a proportionate approach to taxation. BBA Chief Executive Anthony Browne highlighted the need to normalise bank taxation.

FCA sets out priorities for FinTech

Christopher Woolward, FCA Director of Strategy and Competition, sets out the regulator’s approach to FinTech (City AM, p12). Around 70 firms have applied to be part of the FCA’s regulatory sandbox, which allows companies to trial innovative products, noting customers are likely to see rapid change in the types of products available to them. He also warned against using Brexit as an opportunity to create a “bonfire of regulation” noting that the UK’s reputation rests on the high quality of it’s market structures and operating environment.

Government may consider 10-year interim Brexit deal

Politico (£, online) reports that the Government is exploring a 10-year interim trade deal that would set tariffs at zero if a trade deal is not agreed as part of the formal Brexit negotiations. Citing WTO rules that would allow the UK and Brussels, “a reasonable length of time to agree a free trade deal”.  The Daily Express (online) notes that this would reduce fears of a damaging cliff-edge when the UK leaves the single market.

Latest from the BBA

Theano Advisors’ Benoît Barrière and Laurent Coulon blog on the non-finance firms with the capital and systems to move into markets traditionally dominated by banks.

Mark Daws, Managing Director, Navigant blogs on six key questions that firms have to address when implementing the FCA’s new financial crime reporting requirements.

Simon Hills, BBA Executive Director of Prudential Regulation and Risk, blogs on the PRA’s proposed changes to the Pillar 2 framework.

Ariane Poulain, BBA Government Affairs Manager, writes on banks’ contribution to local communities and employment.

6 April 2017 BBA Workshop: Risk Governance – the perspective of smaller banks and subsidiaries
Small bank boards and their risk committees (BRCs) have seen their regulatory responsibilities increase significantly in the area of risk governance. In this interactive half-day workshop BBA associate members Nestor Advisors discuss governance responsibilities and organisational imperatives from the perspective of smaller firms and introduce practical ideas and best practice for addressing the challenges at hand including the risk appetite framework and statement, ICAAP, ILAAP, the recovery plan and more recently the IT strategy and cyber security policy of the firm. For more details click here

29 June 2017 – BBA Annual Retail Banking Conference
Join us for this year’s flagship Retail Banking Conference and hear from industry leaders and subject matter experts on the biggest topics affecting the retail banking sector. To see the full agenda and speaker line-up, and to book your place, visit our website.

Today’s diary

Sir Tim Barrows, UK Permanent Representative to the EU and David Jones MP, Minister of State, DExEU, give evidence to European Scrutiny Committee.

Monthly meeting of Eurozone Finance Ministers.

Rightmove Monthly House Price Index, March.

First day of trading following FTSE UK Index quarterly review changes.

Germany’s Bundesbank publishes its monthly report for March.

Latest from our sponsor Jaywing

Ben O’Brien, Jaywing Managing Director, blogs on the benefits of developing integrated modelling programmes for IFRS 9 and stress testing.

Stat of the day

76% – percentage of senior financial services executives that believe the UK’s economy will match or outpace growth in G7 countries this year (as reported by The Independent, p40).

News in brief

G20 Finance Ministers have agreed to review post-crisis banking regulation, to see if they have met their objectives and examine any potential side-effects (The Times, £, p37).

Bloomberg (online) reports that hacking group Anonymous is to target central banks, having conducted attacks on eight central banks last year.

The Institute for Government has warned that Brexit will leave very limited time for Parliament to consider any other legislation, stalling the domestic policy agenda (BBC News, online).

Chris Cummings, Chief Executive of the Investment Association, has called for shareholders and companies to exercise greater restraint over pay, ahead of this year’s AGM season (The Guardian, p16).

The Times (£, p10) notes that banks have pulled advertising from Google until the search engine can ensure that they won’t appear alongside extremist content.

What the commentators say

Larry Elliott highlights comments from former WTO Director General Pascal Lamy that securing a free trade deal might be one of the easier elements of Brexit negotiations, warning that agreeing technical standards and intellectual property rights will prove a far greater challenge (The Guardian, p20).

Commenting on last week’s decision by the US Fed to raise interest rates, John Plender writes that the global economy may now be on the path to normalising interest rates, but warns of the risk of creating a new cycle of boom and bust (Financial Times, £, p11).

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