In order to tackle the high levels of fraud around UK payments a new Confirmation of Payee (CoP) service is going to be introduced to give customers greater assurance that they are sending their payments to the intended recipient. The service is effectively an ‘account name’ checking service which will reduce payments being misdirected due to errors or fraud.
To the public this may appear to be something fairly simple for the banks to set-up as a check whenever a new payee is created, but as anyone who has worked in a bank knows, there are many situations where the situation is far more complicated than it seems:
There are two capabilities that need to be developed by all banks that provide payment services to their customers:
Fairmort has been looking at these requirements and we see that two of our existing solutions can provide banks with the capability to meet these requirements:
HMRC has finalised the list of AEOI reportable jurisdictions for the tax year of 2018. This means that the lists configured in the latest releases of WILFr AEOI module are now out of date, and will need to be updated, since some jurisdictions have been added, and others removed. Without these changes, the wrong jurisdictions will be included in the 2018 AEOI submission, due in May 2019. Whilst it is possible for WILFr AEOI users to update the jurisdictions within the WILFr AEOI module configuration screens, there will be a lot of updates to make following HMRC’s notification, so Fairmort will be releasing a patch with these changes to all WILFr AEOI users before the May 2019 submission.
Changes since last year's submission:
The following jurisdictions are now reportable for the May 2019 submission:
The following jurisdiction is no longer reportable for the May 2019 Submission:
The following are reportable jurisdictions for the 2019 reporting year, in respect of 2018 reportable accounts:
Andorra, Antigua and Barbuda, Argentina, Aruba, Australia, Austria, Azerbaijan, Barbados, Belgium, Belize, Brazil, Brunei Darussalam, Bulgaria, Canada, Chile, China, Colombia, Cook Islands, Costa Rica, Croatia, Curacao, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Ghana, Gibraltar, Greece, Greenland, Grenada, Guernsey, Hong Kong (China), Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Korea, Latvia, Lebanon, Liechtenstein, Lithuania, Luxembourg, Macao (China), Malaysia, Malta, Mauritius, Mexico, Monaco, Montserrat, Netherlands, New Zealand, Nigeria, Niue, Norway, Pakistan, Panama, Poland, Portugal, Romania, Samoa, San Marino, Saudi Arabia, Seychelles, Singapore, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey, Uruguay, Vanuatu.
Source: https://www.gov.uk/hmrc-internal-manuals/international-exchange-of-information/ieim402340
To ensure our software is compliant with the latest regulations we proactively research regulatory changes monthly. These changes may have an impact on your business. Along with the AEOI update taken from the HMRC website, this edition includes an update on the Continuity of Access waiver and the regularly featured PRA tracker.
The existing CoA waivers expire in December 2019. It is not yet clear whether further waivers will be issued and if so who these will be issued to. The WILFr FSCS solution provides a CoA solution and is being used to provide an automated solution for some banks, however, the solution needs to be customised based on the core banking system being used. If you have any concerns or questions about how Fairmort can assist, then please contact Clive Bowles.
Date | Topic | Ref | Other Ref | Report | Comment | Link to Webpage | |
---|---|---|---|---|---|---|---|
01 March 2019 | EBA | EBA opinion on DGS stemming from withdrawal of the UK from the EU | The European Banking Authority (EBA) published today an Opinion relating to deposit protection issues stemming from the withdrawal of the UK from the EU. In this Opinion, the EBA calls on the Deposit Guarantee Schemes Designated Authorities (DGSDAs) to ensure that depositors in the branches of the UK credit institutions in the EU are adequately protected by the EU deposit guarantee schemes (DGSs), in case of a withdrawal of the UK from the EU with no ratified agreement in place. | Click Here | |||
February 2019 | EBA | Minimum capital requirements for Market Risk | D457 | Basel Committee finalised its revised minimum capital requirements for market risk, which will likely apply to banks and PRA designated investment firms in the UK. The Committee aims to address some of the issues raised by banks since the publication of the first standards in 2016. The new version is good news for banks as it will slightly lower the capital requirement coming out of market risk. The proposals also clarify the scope of exposures that are subject to market risk capital requirements, and set out changes to the internal models approach and the standardised approach. The Basel Committee expects national supervisors to implement the new standards in Pillar 1 capital requirements as of January 2022. | Click Here | ||
28 February 2019 | BOE/PRA | FSCS - near final policy | SS 18/15 | FSCS | An updated version of SS18/15 was published to reflect a no-deal withdrawal from the EU as part of a joint Bank of England and PRA Policy Statement 5/19 ‘The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018’, to deliver the general approach being taken to ensure there is a functioning legal framework when the UK leaves the EU. This SS is near-final and effective from the date of the UK’s withdrawal from the EU. See the Annex for more details. | Click Here | |
28 February 2019 | BOE/PRA | PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after EU withdrawal | SS 2/19PRA103 | PS 5/19 | This supervisory statement (SS) sets out the approach the Prudential Regulation Authority (PRA) expects firms to take when interpreting EU-based references found in reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU. The PRA has not made line-by-line changes to reporting or disclosure requirements, or regulatory transactions forms, as a result of the UK’s withdrawal from the EU, as it would not have been proportionate to do so. Instead, the PRA expects firms to interpret EU references in those templates and instructions in accordance with this SS. | Click Here | |
28 February 2019 | BOE/PRA | Statement of Policy - Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU | This joint Bank of England (Bank) and Prudential Regulation Authority (PRA) Statement of Policy (SoP) sets out the Bank’s and PRA’s approach to EU Guidelines and Recommendations in light of the UK’s withdrawal from the European Union (EU). This SoP is relevant to all PRA-regulated firms, investment firms in scope of the UK resolution regime and all Bank-regulated financial market infrastructure providers (FMIs) operating, or intending to operate, in the UK. | Click Here | |||
28 February 2019 | BOE/PRA | EU Withdrawal Act - near final policy | SS1/19 | This webpage sets out the legal and regulatory framework which would be expected to operate following the UK withdrawal from the EU without an implementation period in place. | Click HereClick Here | ||
01 February 2019 | FCA | Payment Services & Electronic Money PRIN & BCOBS | FCA 2019/05 | FCA Handbook changes. Comes into effect 01/08/2019 | Click Here | ||
10 January 2019 | PRA | Consultation Paper - Eligibility of financial collateral | CP 1/19 | In this Consultation Paper (CP), the Prudential Regulation Authority (PRA) sets out its proposed changes to Supervisory Statement (SS) 17/13 ‘Credit risk mitigation’ to clarify expectations regarding the eligibility of financial collateral as funded credit protection under Part Three, Title II, Chapter 4 (Credit risk mitigation) of the Capital Requirements Regulation (575/2013) (CRR). This CP is relevant to UK banks, building societies and PRA-designated UK investment firms that are subject to the CRR. | Click Here | ||
08 January 2019 | PRA | Policy Statement PS 1/19 | FSA047FSA048PRA110 | Published PS1/19 ‘Liquidity reporting: FSA047, FSA048, and PRA110’ and an updated SS34/15 ‘Guidelines for completing regulatory reports’. See the Reporting of PRA110 section for more information. | Click Here | ||
01 January 2019 | PRA | A number of data items and instructions came into force today | RFBPRA109FSA071FSA076-79FSA081-83REP001 &REP001aFSA082PRA111 | RFB data items and instructions (ring-fencing); and PRA109 Operational continuity data item and instruction. The following data items and instructions were updated to reflect policy effective from today: FSA071, FSA076-79, and FSA081-83 data items; FSA071-83 instructions; REP001 and REP001a; and Guidance on terms used in data items FSA071 to FSA082, and PRA111. The Branch Return form came into force today and is available in the ‘Branch return Form’ section. | Click Here | ||
20 December 2018 | PRA | Consultation paper UK Withdrawal from EU | CP 32/18 | UK withdrawal from the EU: Further changes to 'PRA Rulebook and Binding Technical Standards' and This Consultation Paper (CP) contains two consultations to fix deficiencies arising from the UK’s withdrawal from the EU and make consequential changes: Part 1 sets out the Prudential Regulation Authority’s (PRA) proposals in relation to the PRA Rulebook and Binding Technical Standards (BTS) within the PRA’s remit that will be retained, or ‘onshored’, in UK law. Part 2 sets out proposals by the Bank of England (Bank) acting as resolution authority in relation to two BTS under the Bank Resolution and Recovery Directive (BRRD). 'Resolution Binding Technical Standards' | Click Here | ||
20 December 2018 | PRA | Branch Return Changes | BR | CP 24/18 | PRA published Policy Statement 33/18 ‘Responses to Chapter 2 of CP24/18 ‘Occasional Consultation Paper’, which includes the final rules and Branch Return form to Chapter 2 of Consultation Paper 24/18 ‘Occasional Consultation Paper’. The revised rules and Branch Return form will take effect from Tuesday 1 January 2019. | Click Here | |
20 December 2018 | PRAFCA | ‘Securitisation: The new EU framework and Significant Risk Transfer’, Joint statement PRA & FCA | PS 29/18 | Further to Policy Statement 29/18 ‘Securitisation: The new EU framework and Significant Risk Transfer’, PRA published a joint statement with the Financial Conduct Authority (FCA), ‘Securitisation Regulation: PRA and FCA joint statement on reporting of private securitisations’. This direction is intended to apply to all UK established originators, sponsors and securitisation special purpose entities (SSPEs) from Tuesday 15 January 2019. | Click Here | ||
19 December 2018 | FCA | Policy Statement PS 18/24 | PSD2 | PS18/24: Approach to final Regulatory Technical Standards and EBA guidelines under the revised Payment Services Directive (PSD2) | Click Here | ||
14 December 2018 | PRA | Version 3 of PRA110 Q&As | Published version 3 of the PRA110 Q&As which has been updated to include additional Q&A in existing sections, as well as a new section on contingencies. For more information see the Interim reporting of PRA110 section. | Click Here | |||
13 December 2018 | PRA | Statement of Policy/Policy Statement 32/18 | PS 32/18 | This statement of policy (SoP) sets out the Prudential Regulation Authority’s (PRA) approach to the implementation of the systemic risk buffer (SRB). In line with the Independent Commission on Banking (ICB) recommendations, the UK legislation implementing the SRB requires the Financial Policy Committee (FPC) to establish a framework for an SRB that applies to large building societies and ring-fenced bodies (RFBs). The SRB Regulations require the PRA to apply the framework set out by the FPC on the SRB from 1 January 2019. The FPC published ‘The Financial Policy Committee’s framework for the systemic risk buffer’ (‘FPC framework’) in May 2016. Alongside the FPC framework, this SoP will form the Bank of England’s broader framework for the SRB. The PRA will review this SoP at least every two years. This SoP is relevant to RFBs, within the meaning of section 142A of the Financial Services and Markets Act 2000 (FSMA), and large building societies that hold more than £25 billion in deposits (where one or more of the accountholders is a small business) and shares (excluding deferred shares) – jointly ‘SRB institutions’. | Click Here | ||
13 December 2018 | PRAFCA | Consultancy paper with FCA Changes to mortgage reporting requirements | CP 30/18 | Published a joint Consultation Paper (CP) with the Financial Conduct Authority (FCA), CP30/18 ‘FCA and PRA changes to mortgage reporting requirements’. This CP is relevant to: mortgage lenders; home finance administrators; and entities which own mortgage books but which are not authorised to lend | Click Here | ||
05 December 2018 | PRA | Supervisory Statement updated | FSA 071 to FSA 082PRA110 | SS32/15 ‘Pillar 2 reporting, including instructions for completing data items FSA071 to FSA082, and PRA 111’ | Click Here |
We have recently developed an Experian Commercial CAIS extract component in WILFr. The extract provided by WILFr conforms to the CAIS specification and also allows for an Excel version to be produced. Data used to produce the extract can be amended prior to extract creation through the WILFr Data Entry module, subject to the appropriate access controls and auditing.
Following discussions and clarification from HMRC this patch includes changes to the previously reported flag which references previous submissions to check if the person has previously been reported and if so they automatically become reportable for the current year, with the option to make the person non-reportable. Other improvements include setting all closed accounts to 0 and changes around the IBAN, alongside bug fixes and interface improvements.
The latest BBSI release included changes to the submission file to replicate the HMRC template file and general functionality improvements.