22nd February 2016

BBA Brief – 22 February 2016

Boris Johnson backs ‘Brexit’

Most newspapers lead with Boris Johnson’s announcement that he will back the campaign to take Britain out of the European Union. The Times (£, p1) reports that the Mayor of London declared that he “would like a new relationship based more on trade, and co-operation” which could be negotiated after exit. The Daily Mail (p1) reports that Michael Gove, Iain Duncan Smith and Zac Goldsmith were among the other high profile Conservative figures to back a ‘Brexit’ over the weekend. It is now expected that around 150 Conservative MPs will campaign against the renegotiation deal secured by the Prime Minister on Friday evening (Telegraph, p1).

Low interest rates lead savers to keep cash in current accounts

The Daily Mail (p12) reports that low interest rates are leading to savers shunning products such as Isas in favour of keeping their cash in current accounts, according to a survey by Nationwide Building Society. Nearly half of adults now use their current account to boost their savings, compared with just a third who use a cash Isa. Around a quarter of respondents said they were putting money away for holidays. The Daily Express (p44, paper only) reports that the introduction of the new personal savings allowance in April will mean consumers do not have to pay tax on interest up to £1,000.

Latest from the BBA

Michael Lucas, CISSP, Senior Manager at Crowe Horwath LLP, blogs about the importance of not neglecting the basics of cybersecurity.

Register now for the BBA forthcoming webinar on ‘Top Risks for 2016’ which will take place on Thursday 25th February. Click here to register your free place.

Are you ready for the new individual accountability regime? On 7th March 2016, the Senior Managers Regime (SMR) comes into effect. To help you meet the requirements to train staff, NEDs and Senior Managers, the BBA eLearning Academy has developed a number of new eLearning titles on the New Conduct Rules and SMR. Click here to view.

On 15th March, the BBA is running its popular one day workshop on ‘Enhancing Your Sanctions Compliance Programme’. Fully updated to incorporate the recent lifting of sanctions on Iran, this workshop will provide you and your team with a solid knowledge and understanding of sanctions. Click here to register.

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Today’s diary

FCA launch of ageing population and financial services discussion paper

HMT: UK FinTech Week

TTIP: 12th round negotiations commence

Houses return from recess

Stat of the day

45 per cent – the proportion of people using their current account to build up their savings pot, which compares with one in three who use a cash Isa (Source: Nationwide Building Society).

In brief

Thousands of buy-to-let landlords will find it more difficult to obtain a new loan as a result of the EU’s mortgage credit directive, which comes into force next month (Sunday Times, M4, paper only).

Two separate polls from the Institute of Directors and the manufacturers’ trade body EEF have found that six out of ten of their members supporting Britain remaining in the European Union (Telegraph, B1).

UK and European banks have failed to sell any contingent convertible bonds this year amid market volatility, according to data company Dealogic (BBC News).

The FT (£, p20), looks at the challenges that the world’s top investment banks face when it comes to boosting their return on equity.

The Daily Telegraph (B4, paper only) examines the potential impact that negative interest rates could have on customers and the wider economy.

The Times (£, p2) reports that HM Treasury has been criticised for previously putting pressure on the Office for Budget Responsibility to change its economic outlook.

The biggest US banks are set to face a tougher round of stress tests from the Federal Reserve, which could push capital requirements even higher (FT, £, p17).

What the commentators say

Ian King warns that the big four audit firms should be designated as global systemically important financial institutions and be subject to tougher regulation (Times, £, p41). He claims these organisations are too big to fail and pose systemic risk.

Writing in the Mail (p61), Sir John Vickers calls on the Bank of England to strengthen its proposed capital requirements in the banking sector.

Writing in the Telegraph (p18), Boris Johnson explains why he is in favour of Britain leaving the European Union. He states: “This is a once-in-a-lifetime chance to vote for real change in Britain’s relations with Europe…A vote to Remain will be taken in Brussels as a green light for more federalism, and for the erosion of democracy.”

Writing in City AM (p8), the Conservative’s mayoral candidate Zac Goldsmith also outlines why he thinks Britain should leave the European Union.

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