Viewpoint: Separating Fact from Fiction: Consumers Union Campus Banking Report
The NBPCA responds to the CU report on student cards.
Regulation
FCA issues considerations on the procurement of off-the-shelf technology solutions
The Financial Conduct Authority has recently issued a series of “considerations” for firms that are thinking about using third-party technology banking solutions. The considerations do not seek to tell firms how to structure their IT procurements but rather provide a useful framework for firms to demonstrate that their IT services are effective, resilient and secure.
Dark pools, market manipulation and benchmark rigging top risks warns report
Regulators in the US and Europe are stepping up investigations into dark pool activity, market abuse and manipulation of financial benchmarks following a spate of damaging incidents in recent months. Tougher regulatory oversight could have a significant impact on all three areas, according to a new report by financial services technology provider SunGard.
EY seeks start-up to solve data privacy challenges
EY is inviting start-up tech companies to compete in a competition looking for solutions to the problems posed by “right to be forgotten” regulations.
Moral hazard: the ghost of bail-outs past
The bailout of Espirito Santo Bank brings back unwelcome memories of the events of the last financial crisis and raises the spectre of moral hazard returning to the financial services industry both in the UK and abroad. But how far have we really come since those dark days of 2008 and the collapse of Lehman Brothers and how far do we still have to go? A quick look at recent events gives us a good indication.
Faisal Bank gets to grips with Islamic risks
As demand for Islamic banking services continues to rise, Faisal Islamic Bank of Egypt has overhauled its risk management to better handle the unique needs of ethical banking.
CFPB Finalizes Remittance Transfer Rule; Extends Temporary Exception (Aug. 26, 2014)
The CFPB has finalized its remittance transfer rule requiring remittance transfer providers to disclose certain third-party fees and any exchange rates applicable to the transfer.
Domestic Routing Mandate Could Hinder CNP Transactions in India (Aug. 26, 2014)
India’s central bank now requires all card-not-present transactions for purchases within the country to be routed through a bank in India, with funds settled only in Indian currency.
NACS Merchants Challenge Fixed Cost Component, Relent on Network Routing (Aug. 25, 2014)
The merchant groups embroiled in a long-running legal battle over debit interchange fees have petitioned the U.S. Supreme Court to review the case on the grounds that the Federal Reserve improperly took into account certain costs incurred by card issuers when calculating debit interchange fee limits. However, the retailers have not challenged a separate rule governing the number of unaffiliated debit card networks that must be available for debit and prepaid card transactions, which is good news for card issuers because it gives much longed-for certainty around a challenging issue.
CBA Takes Umbrage with CFPB’s ‘Vague Allegations’ (Aug. 25, 2014)
The Consumer Bankers Association is taking umbrage over what it says are vague allegations by the CFPB’s private education loan ombudsman regarding agreements colleges and universities have with financial institutions to provide financial products to students.
More Time to Comment on N.Y.’s Bitlicense Proposal (Aug. 25, 2014)
In the wake of a flood of interest in a regulatory framework for digital currency companies proposed by New York State’s Department of Financial Services, the DFS has doubled the length of the comment period to 90 days.
Trading automation, regulations, and systemic risk
The financial services industry has always pursued technical supremacy. But after years of financial crisis and attempted reforms to improve the transparency and understanding of risk exposure in financial services, we seem as much in the dark as ever …
Standard Chartered NY forced to suspend clearing following AML concerns
Standard Chartered Bank’s New York business has been ordered to suspend US dollar clearing services to retail clients of the bank in Hong Kong, following an investigation by the New York State Department which determined its transaction monitoring system does not meet anti-money laundering requirements.
Merchants Petition Supreme Court in Debit Interchange Case (Aug. 20, 2014)
A group of merchant associations this week petitioned the U.S. Supreme Court to review a March decision by the U.S. Court of Appeals for the District of Columbia.
Deutsche Bank steals RBS’ Marcar, ramps up US presence
Deutsche Bank has poached Scott Marcar, previously at RBS, to head up its IT infrastructure as the bank prepares to ramp up competition against its rivals.
FX industry calls for greater accountability on IBOR benchmarks
ACI, the foreign exchange industry body, has called for the adoption of a new Model Code for sell-side and buy-side firms on financial benchmarks, to harmonise codes of conduct and prevent a recurrence of the Libor and other recent rate fixing scandals.
More Lawmakers Try to Influence DOE on Campus Card Rules (Aug. 13, 2014)
Letter writing among U.S. lawmakers has been fast and furious lately as they try to influence how the U.S. Department of Education handles new rules governing universities’ and colleges’ arrangements with financial service providers that deliver financial aid dollars.
Capital markets big data ‘still at an early stage’ says Thomson Reuters
Most capital markets firms are still not using big data and even those that do often lack a concerted strategy, according to a new report commissioned by Thomson Reuters.
Ready for the ‘summer of 39’ aftermath?
This summer, regulatory pressure on financial services firms has ratcheted up to unprecedented levels. Many may have breathed a sigh of relief as Dodd-Frank rule-making slowed … but the respite was only fleeting. Since July, the industry has been bombarded with 39 new consultation papers in the EU and UK alone
FinCEN Urges Culture of Compliance among FIs, Issues Advisory (Aug. 12, 2014)
FinCEN is urging financial institutions to foster a culture of compliance with Bank Secrecy Act/Anti-Money Laundering (BSA/AML) rules and has issued an advisory explaining how basic principles can strengthen compliance within organizations.
CFPB Soliciting Complaints about Digital Currency (Aug. 12, 2014)
It isn’t just complaints about prepaid card products that the CFPB is trawling for.
USPS Loses Nearly $2B in Q2, Could Banking Services Stop the Bleeding? (Aug. 12, 2014)
The U.S. Postal Service (USPS) on Aug. 11 posted a net loss of $2 billion for the quarter ended June 30, 2014, compared with a net loss of $740 million for the same period a year ago, increasing pressure on the beleaguered organization to find new sources of revenue.
Don’t drown in over-regulation
It should be no shock that the risk for banks of being caught-out for non-compliant activity has soared in recent years in the wake of the global financial crisis of 2008. Banks are being monitored more closely now than ever before and it’s been difficult to escape without scrutiny or a heavy reputational impact.
EMIR trade reporting deadline takes effect – but where are the standards?
New European rules that require banks, brokers and clients to report their daily market positions and collateral values to trade repositories came into effect yesterday. But European regulator ESMA made no clarification about models, leaving the question of how to report up to the market. That could cause problems, market participants have warned.
CFPB Eyes the Big Ten (Aug. 11, 2014)
The CFPB is focusing on universities in the Big Ten Conference to see if these schools, some of the largest in the U.S., have appropriately disclosed their agreements with financial institutions regarding the financial products they offer their students. “Making these agreements available for all financial products shows schools’ and companies’ commitment to transparency, helping […]
Meta Out from Under Consent Order (Aug. 8, 2014)
MetaBank has been released from its Consent Order by the Office of the Comptroller of the Currency (OCC), according to an announcement by the bank’s parent company, Meta Financial Group.
FTC: Apps Must Provide More Consumer Info before Download (Aug. 7, 2014)
Many mobile apps used for shopping don’t provide consumers with enough information before they download them to their smartphones, according to the FTC.
New Payroll Law in Illinois Effective Jan. 1, 2015 (Aug. 7, 2014)
Paybefore typically confines discussions about state legislative and regulatory activity to the State Tracker section of Pay Gov. But after we published Pay Gov yesterday, Illinois passed a law that explicitly allows payroll cards in the state, subject to certain conditions.
SEPA Standards Take Effect in Europe (Aug. 7, 2014)
Cross-border payments in the Eurozone have reached a milestone, with Aug. 1 marking the migration deadline for all credit and direct debit transfers to comply with Single Euro Payments Area (SEPA) requirements.
UK looks to cryptocurrencies and FinTech to boost economy
The UK Government is to examine the potential of digital currencies as positive force in the wider economy and as a means of encouraging innovation in financial services.
CFPB: Small-Dollar Overdrafts Are Big Problems for Some (Aug. 5, 2014)
Debit card-initiated overdrafts are leading to disproportionate charges for cardholders, with fees often larger than the overdraft amount, according to a new report by the CFPB.
Best execution failures: there’s blame on both sides
A Financial Conduct Authority investigation that found banks and brokers are failing to provide best execution highlights the need for more responsibility and education among their buy-side customers.
Merchants Cautioned on New POS Malware Threat (Aug. 4, 2014)
Federal officials are warning retailers about a new form of malware that hackers could use to access POS systems and steal consumer data.
MiFID II: hearing, skirmishing and planning for battle
The reason Europe calls it a regulatory ‘hearing’ is that it is an opportunity to hear views from both regulators and the market. Of course, that’s just part of the experience as many other senses are triggered when 400 people are locked in a basement for 2 days, deprived of connectivity, food and caffeine …
US, EU regulators examine ‘time traveller’ trades from space
Regulators in Europe and the US are struggling to get to grips with trades that appear to be travelling back in time. Led by the UK’s National Physical Laboratory, new efforts are underway to synchronise time, with the help of atomic clocks.
Intraday liquidity reporting poses challenge for banks says Swift
New intraday liquidity reporting tools set out by the Basel Committee on Banking Supervision could pose a serious challenge for banks, according to a new white paper by Swift.
FDIC Revises Guidance on Operation Choke Point (July 29, 2014)
The FDIC has clarified its previous guidance related to the DOJ’s Operation Choke Point, which encourages financial institutions to scrutinize payment processor clients that process payments for certain types of businesses.
McDonald’s Employees Sue Franchisee over Payroll Card (July 29, 2014)
Employees and former employees of 16 McDonald’s restaurants across Pennsylvania have filed a class action lawsuit against the restaurants’ owners for violating the law when they allegedly failed to provide a method of receiving wages other than on a payroll card.
Dark pools are unfairly damaging exchanges warns report
Trading rules in the US are giving dark pools an unfair advantage over exchanges and could be damaging liquidity, according to a new report by the Capital Markets Cooperative Research Centre.
Fed: Government Prepaid Payments Topped $142 billion in 2013 (July 28, 2014)
Government-funded prepaid cards continue to grow steadily, with agencies at the U.S. federal, state and local levels using prepaid to disburse benefit funds, tax refunds and other payments.
