New requirements and thematic issues. Single Customer View. 13 May Harpreet Likhari

Transcription

1 New requirements and thematic issues Single Customer View 13 May 2017 Harpreet Likhari

2 Importance of SCV SCV is a key tool for FSCS to meet its obligation to achieve payout for the majority of depositors within 7 days of default of a deposit taker. 2 Under faster payout: 39 credit unions and 1 small bank. 45,000 customers compensated. 31.5m paid in compensation.

3 What are the changes? Changes impacting SCV structure Standardisation of SCV (and Exclusions View) data fields. Additional contact details. Identifiers for individuals and companies. BRRD marking requirements to support the use of Bank Recovery and Resolution Directive (BRRD) tools. Fields to accommodate information required for continuity of access. Fields to indicate accounts held in foreign branches to support co-operation with the union. 3

4 What are the changes? Other changes Eligibility. Removing opt-out for firms with fewer than 5,000 eligible accounts. Time to produce the SCV file reduced from 72 to 24 hours. Treatment of in-flight transactions. Marking of eligible deposits and accounts on firm s systems for immediate identification. Compensation limit. Temporary high balances (THBs), although this does not impact deposit takers SCV production. 4

5 New SCV file format Depositor details Table A Contact details Table B Account details Table C Aggregate balance details Table D Account title Name Address Account numbers Product No. of account holders Aggregate balance Account status code Date of birth Exclusion reason address Recent transaction marker Country of jurisdiction BRRD marker Personal identifiers Structured deposit marker Account balances Authorised neg. balance Company identifier Phone numbers Exchange rate Transferable amount Compensatable balance

6 SCV vs Exclusions View file All Accounts Eligible Potentially Eligible SCV File Exclusions View File Eligible and fit for straight-through payout Sanctioned Eligible but not for straight-through payout Legally Disputed Legally Dormant Beneficiaries Ineligible

7 SCV Verification SCV BAU Programme - routine review of deposit takers SCVs and SCV production processes began in This is conducted along side other SCV work streams at FSCS, including reviews of watch-listed firms and reviews of small credit unions. The SCV team is also involved in processing SCVs for defaults. Over 300 reviews have been conducted to date through the SCV BAU Programme and Watch list activity alone, covering 188 banks, building societies and large credit unions only). Our ongoing review feeds into our formal stress test programme in to meet EBA guidelines to review SCV capability of deposit takers. We have completed a pilot of our Self-Verification service with a small selection of firms. Feedback received has been positive and has helped us identify a few areas for improvement. Roll out steps are under consideration. The service will help deposit takers identify some of the most common data issues we have found with SCV submission sand we expect an overall improvement in the quality of submissions. 7

8 SCV quality observations from SCV Verification Rating of First Submission Rating based on Recent Submission 2.66% 11.70% 24.47% 48.40% 39.89% 72.87% FSCS would be unable to meet the faster pay-out requirements using this SCV. With some manual manipulation, FSCS could potentially amend the SCV and meet the faster payout requirements. Faster pay-out is possible. 8 Market Sensitive

9 Thematic issues Incorrect balances Duplicated (or non-consolidated) customers Ineligible customers

10 Example: duplicate customers The following example uses the ABCD (format three) file structure. denotes fields omitted for the purposes of simplifying this example. Surname NIN Ms Jessica Orange AB123456A UB4 9LQ Mr John Orange AB987654B UB4 9LQ Mr H Likhari JH123456A MK13 7BB Miss Karen Green HA0 4BN Mr Ben Black DA6 8EH Mr Harpreet Likhari MK13 7BB Postcode Comp. Amount Forename GA123456A Aggregate Balance Title 10 Date of Birth SCVID

11 Example: incorrect balances The following example uses the ABCD (format three) file structure. denotes fields omitted for the purposes of simplifying this example. Surname Account Balance in Sterling Aggregate Balance Title Forename Ms Norman Brown Mr Norman Brown Mr Norman Brown Account Number SCVID Comp. Amount

12 Example: ineligible accounts The following example uses the ABCD (format three) file structure. denotes fields omitted for the purposes of simplifying this example. SCVID 12 Surname Account Balance in Sterling Aggregate Balance Comp. Amount Spa Credit Union Limited Brent County Council

13 SCV resources PRA Rulebook Supervisory Statement SS18/15 SCV Effectiveness, Marking Effectiveness and CoA Report Template FSCS Guide to SCV FSCS Verification Services Web Portal User Guide AVAILABLE ON REQUEST FROM FSCS 13