Financial Services Regulation and Compliance - General Cross Sectoral Oct 2020
CBI publishes issue 6 of its AML bulletin
The CBI has published its latest AML bulletin. This issue focuses on transaction monitoring and sets out the CBI's findings following supervisory engagements across multiple credit and financial institutions. The bulletin also highlights the CBI's expectations with regard to the application of transaction monitoring controls.
Speech – Gerry Cross: supervision has become significantly more intrusive and impactful over recent years
Speaking at A&L Goodbody's Corporate Crime and Regulation Summit on 14 October 2020, the CBI's Director of Financial Regulation Policy & Risk and Investment Banking Supervision, Gerry Cross, gave insight into the CBI's approach to supervision.
Cross noted that the CBI's supervisory approach focused on the following three areas:
- A risk based approach: the CBI's allocation of resources and intensity of supervision is based on a combination of impact and probability.
- Outcome focused supervision: the CBI aims to ensure that financial firms and markets operate in a way that achieves resilience, ensures that firms within it are trustworthy and that markets are orderly and delivering effective price formation.
- Ever more effective supervision: the CBI seeks to continuously improve and supervise firms more effectively.
Cross also noted that the issues of resilience and customer fairness arising out of COVID-19 are significant features of the CBI's ongoing supervisory strategy.
CBI announces additions to the list of pre-approval control functions
Further to a notice of intention issued in February 2020, the CBI is introducing three new pre-approval controlled functions (PCFs).
The three new PCFs are:
- Chief Information Officer (under the ‘General’ category)
- Head of Material Business Line (under the ‘Banking’ category)
- Head of Market Risk (under the ‘Banking’ category).
The CBI has also announced that it is splitting PCF-39 into six PCF separate roles aligned to specific managerial functions. By 16 November 2020, RFSPs are required (among other things) to submit a list of the individuals performing each of the PCF-39A, PCF-39B, PCF-39C, PCF-39D, PCF-39E and PCF-39F roles.
ECB intensifies its work on a digital euro
The ECB has published a report on the possible issuance of a digital euro, an electronic form of central bank money accessible to all citizens and firms. In a press release, the ECB noted that the digital currency would complement cash by allowing users to make daily payments in a fast, easy, secure way. The ECB noted that it will engage widely and in detail with citizens, academia, the financial sector and public authorities on the potential issuance.
Joint Committee of Supervisory Authorities publishes work programme for 2021
The Joint Committee of European Supervisory Authorities, consisting of ESMA, the EBA and EIOPA, has published its work programme for 2021.
The work programme outlines the key areas of focus for the Joint Committee in 2021 including:
- monitoring the impact of Brexit
- consumer protection
- sustainable finance
- financial innovation
For more information on these topics please contact any member of A&L Goodbody's Financial Regulation team.
Date published: 9 November 2020