This report considers the work of CPSS which provides an overview of innovative retail payment over the past decade and identifies a number of factors that could serve as drivers for retail payment innovations or as barriers to them. The analysis was also used to suggest some pointers as to what can be expected over the next five years. It also considers issues for central banks concerning their various responsibilities and tasks as catalysts, overseers and/or operators of payment systems.

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This PS summarises responses to CP11/29 and publishes made rules (authorised by FSA’s board in May 2012), noting that, whilst some of the original proposals have been amended, FSA does not consider these to be significant. All deposit takers are expected to be compliant with the rules by 31 August 2012 with the exception of Northern Ireland credit unions who are expected to comply with these rules at the same time as they become subject to other FSA disclosure rules.

This consultation describes certain internal controls and procedures that credit rating agencies use to promote the integrity of the credit rating process and address conflicts of interest, with a view to promoting a better understanding of these practices. Responses are required by 9 July 2012. (25/05/12)

Text of the above has been published. In this speech, Verena Ross considers the EU regulatory framework and the role of ESMA, priorities and challenges for 2012 and beyond and the need for international convergence and cooperation. She notes that ESMA intends to publish a consultation paper on EMIR in June and hold a public hearing in July “to take the work forward – at that point actually consulting on our proposals for the legal text of the standards”.

In this paper, FMLC sets out a number of issues indicative of legal uncertainties posed by the current drafts of MiFID II and MiFIR. It particularly cites the failure of both drafts to clarify adequately the treatment of third country firms. It also notes that the current draft of MiFID II regulates algorithmic trading to a greater extent than indicated in the Recitals and gives rise to uncertainty concerning the treatment of structured deposits, while the current draft of MiFIR includes a very wide definition of Organised Trading Facility, which may be difficult to apply in practice, and provides a framework for the introduction of product intervention rules that is likely to generate a degree of uncertainty in financial markets.

In this joint PS, HMT and FSA summarise the responses received and the policy decisions made in relation to CP11/28. HMT is to make and lay before Parliament the SI to make the changes to FSMA. A draft of the Prospectus Regulations 2012 appears in Appendix 1 of this document. FSA will make the rules set out in Appendix 2 to come into effect on 1 July 2012, contingent on HMT making its SI and any consequential changes that may be needed to FSA rules.

Further to a June 2011 consultation on draft guidance for credit brokers and credit intermediaries and publication of the final guidance in November 2011, this document summarises responses to the consultation, which, OFT suggests. provides an insight into OFT's thinking in producing the guidance and should be viewed as a “companion” to the guidance document..

Text of this speech given at the Westminster Business Forum, follows. Topics: the macro-economic backdrop as it affects retail banks; resolution plans; ringfencing; competition in the retail banking sector. He concludes: “the pricing of banking to consumers varies too much depending on the services they use. I also worry that the banks may not properly understand the costs of products and services they supply. And I worry also that this unclear picture may have encouraged the misselling of products that is now causing so much trouble. In short, I think that the reform of retail banking in this country cannot move ahead unless we tackle the issue of free in-credit banking, and have a much better sense of what we are paying for and how we are paying”.

BIS has published this press release, which notes that the four trade associations representing over 90T of the payday and short-term loan industry, have agreed to add to their Codes of Practice by 25 July 2012 to deliver better consumer protections. Commitments made by the industry on payday loans include: a good practice customer charter explaining how the loan works and the costs involved; a commitment to inform customers three days before money is withdrawn; increased transparency about loan repayment so that consumers can make informed decisions and are not surprised by hidden payments; more help for customers in financial difficulty by freezing charges and interest; robust credit and affordability assessments to ensure loans are suitable for the customer’s situation; and effective compliance monitoring by the trade associations to root out poor practice in the industry. It is noted that BIS anticipates that the outcome of OFT’s report will also require the industry to deliver further measures to address consumer detriment identified in this market. The Government is also considering giving OFT new powers to suspend credit licences with immediate effect and will provide an update on this shortly.