BIIA European Institutional Monitoring 150SUMMARY

The last two weeks in Brussels have been dominated by the ‘Brexit’ decision with the most notable event as far as the impact on our industry is concerned being the resignation of Commissioner Hill responsible for financial services policy. In his role Lord Hill had adopted a very pragmatic approach to policy development which was a welcome change. It will be interesting to see if the new Commissioner adopts a similar approach.



      During the referendum held in the UK on 23 June 2016, UK citizens supported their country’s exit from the European Union, which is expected to be implemented within the next two years.

As a result of this vote, Lord Jonathan Hill, the British EU Commissioner Responsible for financial services dossiers, resigned as EU Commissioner. Lord Hill’s resignation leaves open the question of who will take over from him the work on such dossiers of key importance to ACCIS as Capital Markets Union and Retail Financial Services. Currently, the responsibility for financial services dossiers has been transferred from Jonathan Hill to Latvian Member of European Commission, Vice President Valdis Dombrovskis. However, it is unclear whether Mr Dombrovskis will retain the responsibility for these dossiers until the end of his mandate, as the UK has indicated that it would request to appoint a new British Commissioner in order to replace Jonathan Hill while the UK remains a Member State of the EU. The candidates for such an appointment are currently unclear, although the name of Mr Jonathan Faull, former Director General of DG FISMA has been rumoured as a potential candidate to be nominated for this role. However, even if and when the new British Commissioner is appointed, it does not mean that he or she will automatically be assigned the same dossiers Jonathan Hill was responsible for. The responsibility of the new Commissioner will be defined by President of the Commission Jean-Claude Juncker, in consultation with the UK Government,


The European Banking Authority (EBA) has issued its annual “Consumer Trends Report 2016”, which provides an overview of the trends observed in 2016, the issues that will or could have an impact on consumers and other market participants and the areas where the EBA may take any action, if needed. From an industry perspective, it is important to note that the Consumer Trend Report 2016 underlines the role of credit registers, stating that: “The majority of the NCAs…indicated that they expect the transposition of the MCD and the national implementation of the EBA Guidelines on creditworthiness assessment to have a significant impact. In addition, in some jurisdictions, credit register databases are being developed, with both positive and negative information to support the assessment. Typically, ‘negative information’ will cover data on late payments and defaults, while ‘positive information’ will refer to information on borrowers that have paid their obligations on time and other descriptive data including loan amounts, interest rates, and loan maturities. ”

Link to the EBA Consumer Trends Report 2016


Neil Munroe is a director of BIIA and a member of the BIIA regulatory committee.  He can be reached at: CRS Insights Ltd – e: – m: +44 (0) 7710 844518, p: +44 (0) 1923 284604