The report considers payday loans and commercial debt management companies, highlights shortcomings and areas of concern with regards to this industry and makes recommendations for future Government action. With regard to the regulation of consumer debt, the report urges the Government to outline a timetable and methodology for how and when a decision will be made on whether the power to transfer consumer credit from OFT to FCA is to be exercised within six months; that it should introduce higher licensing fees for higher-risk credit businesses; introduce a fast track procedure to suspend credit licences and give the regulator the power to ban “harmful” products. With regard to payday loans, it is suggested that the Government act to: limit the rolling over of payday loans and the switching between payday loans and the subsequent rolling over of loans; ensure payday providers record all of their transactions on a database and make clear that unless payday loan companies demonstrate a commitment to moving away from the continuous payment authority as the method for receiving payments, the new regulator will be asked to address this as a priority. In addition, the Government should provide the Committee with an update on the development of the industry codes of practice by the end of 2012. Recommendations on debt management, include the recommendation that up-front fees be phased out and regulate to ensure that companies publish the cost of their debt advice and outcomes. The report also criticises the Money Advice Service for its unclear business remit and over the CEO’s remuneration (“at a time of pay restraint we do not believe that the head of a comparatively small organisation should receive a salary £100,000 in excess of the Prime Minister. We look to the Government to raise this with the FSA as a priority”). (7/03/12) Business, Innovation and Skills Committee publishes report on debt management - News from Parliament - UK Parliament (NB: over 200 pages long

Further to Market Watch 40, which included the final guidance for reporting transactions in derivatives conducted through clearing platforms of derivatives markets (ISIN and Aii), FSA has now published this note confirming that, from 31 March 2012, firms must report transactions in flex derivatives contracts conducted through Eurex OTC by using the respective Aii code issued for those contracts.

Kinetic partners are to join forces with UnaVista London Stock Exchange Groups transaction reporting service in reaction to the latest FSA guidelines which place added importance of reporting transaction data.

In this working paper, BIS estimates the amount of collateral that CCPs should demand to clear safely all interest rate swap and credit default swap positions of the major derivatives dealers. The results suggest that major dealers already have sufficient unencumbered assets to meet initial margin requirements, but that some of them may need to increase their cash holdings to meet variation margin calls. The report also found that default funds worth only a small fraction of dealers' equity appear sufficient to protect CCPs against almost all possible losses that could arise from the default of one or more dealers and that concentrating clearing of OTC derivatives in a single CCP could economise on collateral requirements without undermining the robustness of central clearing.

ESMA has published the second part of its final advice on possible delegated acts for the Prospectus Directive. ESMA proposes how to use a prospectus in a retail cascade and provides input on how to review the provisions of the Prospectus Regulation concerning tax information, indices, auditor’s report on profit forecasts and estimates and audited historical financial information.

In response to an MP’s question as to whether OFT will retain responsibility for the Consumer Codes Approval Scheme, Norman Lamb responded that the “Government plan to publish their response to the consultation on the reform of consumer 15 institutions, including the future of the Consumer Code Approvals Scheme, in March this year”.

EPC has published guidance material for business, consumers/direct debit for consumers, IT providers and the public sector.

ESMA has now published the responses to the above papers, which are available to download inpidually via the following links.

This consultation paper looks at the role played by price reporting agencies in the functioning of oil markets, their methods of operation and governance and potential options for future oversight. It considers the governance of the agencies (including consideration of their ownership)’ their board and executive management structures, how they manage conflicts of interest, their complaints handling procedures, and their systems and controls; and the impact agencies’ current functions have on price transparency in the physical oil and oil derivative markets. Responses are required by 30 March 2012. (1/03/12)

The report outlines recommendations that authorities should follow in establishing a mandatory clearing regime for standardised OTC derivatives in support of the G20’s Leaders Commitments to improve transparency, mitigate systemic risk and protect against market abuse in these markets. These are in relation to: determination of whether a mandatory clearing obligation should apply to a product or set of products; consideration of potential exemptions to the mandatory clearing obligation; establishment of appropriate communication among authorities and with the public; consideration of relevant cross-border issues in the application of a mandatory clearing obligation; and monitoring and reviewing the overall process and application of the mandatory clearing obligation.