Financial Services Regulation Monthly Update - May 2017

This month in summary

Financial services regulation

FCA to conduct strategic review of banking business models

On 11 May 2017, the FCA announced that it will be conducting a review of the business models used in the retail banking sector to get a sense of how recent changes in this area have impacted on competition and conduct.

Phase 1 of the review will focus on understanding the existing retail banking business models and the markets they serve, from a supply side perspective. Specific areas of focus include:

• profitability across different areas of retail banking;
• understanding profit distribution around the various participants in the market;
• considering how revenues and costs may be linked across business areas;