Latest FSRR posts Join us on LinkedIn PwC UK YouTube channel Subscribe to our RSS feed Join us on Facebook Follow PwC on Twitter

Our blog explores the latest issues in financial services risk and regulation.

19 October 2018

A CASS Reflection

As the second year under the FRC CASS (client money and assets) standard draws to a close, it’s an ideal time to reflect, revitalise and prepare for the year ahead. Working with over 70 CASS firms in the banking sector, we’ve collated our experiences from the last 12 months to provide insights into the trends/themes we’ve observed in CASS.

12 October 2018

The regulator has been telling us the same thing for years, so why does it feel different this time?

By Andy Moore This is not the first time the PRA has written to general insurers, highlighting its concerns about the pressure on reserving and its expectations. The first one I remember was a letter to CEOs in November 2014 – and they have been annual since. Lloyd’s have kept...

10 October 2018

IFRS 17: What is the impact on people?

By Alex Bertolotti People management is hard to get right first time, and as such should be prioritised. What’s more, lessons learned from prior regulatory driven transformation programs could be crucial in your success. So far, in my series of IFRS 17 blogs, I have focused heavily on the technical...

08 October 2018

Consumer credit - what new rules on incentives and remuneration mean for firms

As the summer draws to a close so too has the time for consumer credit firms to prepare for new Financial Conduct Authority (FCA)  staff incentive rules published in March. The new rules came into force on 1 October. While firms will have prepared in different ways for the deadline, they should all be aware of the FCA’s underlying messages: that it expects firms to become more customer-centric and also to focus and understand the potential “harms” that customers could be exposed to.

03 October 2018

RegTech: What is the role of the regulator?

I was recently invited to chair a panel at the Global Innovation Institute (GI2) conference in Paris to discuss RegTech policy with a number of regulators. Our discussion revolved around our understanding of what RegTech is, what the role of the regulator is today and what it will be in the coming years. Here, I have outlined some of the key themes from the discussion.

27 September 2018

Next generation outsourcing in the future of the life insurance and pension sectors: Building the platform for competitive transformation

Across the life and pensions market, businesses are asking “how can we ensure that our operations are fit for the future?” 

19 September 2018

Intermediate Parent Undertaking: time to prepare

It’s approaching two years since the European Commission (EC) published its CRR II/ CRD V proposals. The pace of negotiations has been slow. But since the spring, negotiations have stepped up and political pressure to get an agreement by the end of 2018 is building up. This means that impacted firms should ramp up their planning for one of the most controversial aspects of the proposals: the requirement for large non-EU banking groups with two or more entities in the EU to establish an ‘Intermediate EU Parent Undertaking’ (IPU).

17 September 2018

RegTech and Policy - How to keep pace with innovation?

Technology is undoubtedly changing the way financial services organisations operate with aging functions being removed or automated to drive efficiency and cost reduction. At the same time new delivery channels are emerging that allow companies to interact with each other and their customers in ways not imagined at the turn of the century. With an unprecedented pace of change, how do businesses and policymakers keep pace with innovation?

14 September 2018

Brexit: The Temporary Permissions Regime- what does it mean for firms?

As the Brexit negotiations continue to progress slowly, financial services firms are putting contingency plans into effect for a no deal Brexit in March 2019. Recent weeks have also seen more activity from the UK Government to prepare for the possibility of no deal with the EU-27. As part of this the Government has started to publish a series of draft statutory instruments (SIs) which would provide the UK with a workable financial services regulatory framework in March 2019 should the UK and EU-27 not be able to reach an agreement.

12 September 2018

With profits under the spotlight: Steering through the FCA thematic review under the wider future of the life insurance and pension sector.

In the recent UK Life & Pensions: A roadmap to succeed in a fast-changing sector report PwC explores the transformational trends reshaping the UK life and pensions sector and sets out a practical roadmap to help tackle the challenges ahead. The Financial Conduct Authority’s (FCA) fair treatment of with-profits customer review highlights many of these pressing issues.

31 August 2018

Brexit - What could improved equivalence look like?

By Andrew Gray and Conor MacManus The UK Government has now confirmed that, rather than pursue a model of mutual recognition to allow market access for financial services firms post-Brexit, it will seek improvements to the EU’s existing equivalence model. At this stage we don’t know whether the EU-27 will...

21 August 2018

Investment firms: the perfect regulatory storm?

By Hortense Huez and Mete Feridun The landscape for investment firms is changing fast through a number of concurrent reforms including the FCA’s extension of the Senior Managers and Certification Regime (SMCR), its increased focus on the quality of prudential regulatory returns, and the EU’s overhaul of the prudential regulations...

20 August 2018

Brexit: regulatory developments: August 2018

By Andrew Gray and Conor MacManus Brexit: regulatory developments Brexit is fundamentally affecting both UK and EU-27 financial services businesses from a regulatory and supervisory perspective. Anticipating a different relationship between the UK and EU-27 post-Brexit, regulators and other policy makers are expecting significant changes to their rules and processes....

02 August 2018

Cash savings: is the FCA finally showing its competition teeth?

ince the FCA gained enhanced competition powers in April 2015, many in the industry have been waiting for the FCA to make a more radical competition intervention. Until now, it’s largely relied on demand-side remedies, such as improving disclosure and encouraging switching, to help consumers get a better deal. But that could be about to change

31 July 2018

IFRS 17: Global Webcast – Where are we 1 year on?

On the 27 June, three expert panel members and I took to the airwaves as part of PwC’s Global IFRS 17 Webcast, to discuss how IFRS 17 is developing one year on from the official announcement. In this blog, I will briefly summarise the keys points that were discussed.

24 July 2018

Vulnerable customers: why resilience still matters

Back in November last year, the FCA proposed a new approach to vulnerable customers. In its Approach to Consumers consultation document, it introduced the concept of ‘low resilience’ (low capacity to absorb financial shocks) and consulted on a new definition of vulnerable customers based on the concepts of resilience and capability rather than specifically customer circumstances.

20 July 2018

No model, no model risk

By Yousef Ghazi-Tabatabai As large banks extend model governance to cover a wider range of business areas, counterintuitive & counterproductive incentives can be created. The problem arises where pure expert judgement processes could be used as alternatives to models. In some business areas, notably Treasury, important metrics are often determined...

19 July 2018

Transforming the resilience of the financial sector

By Simon Chard & Conor MacManus Operational challenges are nothing new for financial institutions, but with a number of recent high profile examples of operational difficulties impacting customers, operational resilience is now at the top of the agenda for regulators. As is often the case, regulators in the UK are...

18 July 2018

InsurTech Trend Report: Beyond the boundaries of insurance

By Victoria Newton Download the full report here We’re now in our third year of working with Startupbootcamp InsurTech, and we’re seeing InsurTech mature and become an increasingly important part of the insurance industry. Last year we predicted increased collaboration between insurers and startups, with boundaries continuing to blur as...

13 July 2018

Is CSM starting to move centre stage for investors?

We have seen interest and focus on IFRS 17 by the investor and analyst community increase over the past year, with some publishing their own research and educational papers on its impact.