Mon - Fri 09:00 - 18.00
Central Court 25 Southampton Buildings London WC2A 1AL
Tel: +44 020 7936 3637
DX 458 London Chancery Lane
Chambers provides an out of hours service. If you call Chambers main number you will be diverted to the clerk on call who will be able to deal with your enquiry.
In a clear sign that regulators want to open up competition in the UK banking industry to new banks, the Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA) have launched a new initiative to support them through process. The new Bank Start-Up Unit announced in January 2016 is intended to follow through on the Government’s desire to reduce barriers to entry for prospective banks and to increase choice for consumers. Applicants who seek to fill a gap in the market whether in terms of products and services offered or in terms of the market sectors they target will be able to take full advantage of this new initiative.
Single Point of Contact
In essence, the new unit creates a single point of contact from where applicants can access the advice and guidance they require to start a new bank and from where they will continue to receive on-going support once they are authorised. More particularly, new banks will benefit from access to: supervisors at both the PRA and the FCA via a helpline; regular capital and liquidity reviews, if appropriate; and relevant training for staff.
It is envisaged that the new unit will help applicants at the pre-application stage to determine exactly which regulated activities they are most likely to carry out and which they are not. By discussing their initial business plans with the new unit, it is hoped that applicant firms will use any feedback to save time and to ensure that they increase their chances of submitting a successful application.
To ensure that applicants engage fully with the New Bank Start-Up Unit, the PRA advises applicants to consider five essential components of any authorisation application:
• Business plan – What products will the new bank offer and who will they offer them to? Will the applicant have physical branches or not? How will the new bank make money?
• Senior management, the board and governance – Who will run the new bank and how will they do it?
• Financial resources – How will the new bank be funded?
• IT strategy – What systems will the new bank need and who will operate them?
• Outsourcing – What will the new bank do in-house and what will it outsource?
One key area the New Bank Start Up Unit may be able to support new banks is with regard to capital requirements. New or smaller “challenger” banks tend to use the PRA’s standard approach to calculating the amount of capital they must hold to make certain loans (such as mortgages and credit cards). Compared to the advanced approach used by larger more established banks under which they are able to set aside less capital, the larger amounts capital required by smaller banks often puts them at a competitive disadvantage. One reason why new banks are required to adopt the standard approach is due to the lack of sufficient lending data. Recent reports, however, suggest that this may be about to change.
It is understood that the PRA is currently considering an intermediate position between the standard and advanced approaches which may not require the same large overheads and will spell out how new banks can transition from the standard to the advanced approach to calculating the amount of capital they need to set aside. Should an intermediate position be created that allows new banks to take a less onerous approach to capital adequacy calculations, the new unit will no doubt become an important point of call for new banks.
Authorisation with Restriction
Aside from the matter of capital adequacy, it is anticipated that new banks will be able to access more guidance relating to the suitability, experience and skills of applicants for key roles, often a significant issue for new and smaller market entrants. Financial stability, consumer detriment and risks to market integrity also remain a high priority for the regulators and it is thought that the PRA’s “mobilisation process” whereby new market entrants can be authorised to carry out limited activities with certain restrictions in place (known as Authorisation with Restriction or “AWR”) until it has received a certain level of investment or has built the appropriate IT systems may be one of the approaches considered as part of the New Bank Start-Up Unit engagement process.
The unit will also be able to give guidance to international banks who may be considering a UK branch or a subsidiary. There are many factors for them to consider before they decide to operate in the UK and the regulatory approach will largely depend on the nature and size of the foreign bank’s operations. Early engagement with the PRA is therefore highly recommended.
Interested applicants who would like more information about the New Bank Start-Up Unit are welcome to get in touch directly with Alkan Shenyuz.
Information on the PRA’s New Bank Start-Up Unit can be found here:
China’s development as one of the leading nations in the world is unquestionable: domestically and internationally its might is... more
Following the seismic shift in the relationship between the UK and the EU post 11 pm on 31 December 2020 (Brexit day), the... more
Upon our departure from the EU, the UK extradition landscape has changed – although not as much as one might think. George... more
Yasin Patel investigates the effects of Brexit upon Kolpak Professionals in the UK and particularly in cricket and rugby. He... more
Clients convicted of rape, sexual assault, grooming or other sexual offences? Subjected to Sexual Offenders Prevention Orders?... more
Imagine the letter from the Police, the SFO or HMRC: “We would like to discuss your company’s loan that was secured from the... more
So how do we resolve the age old problem of racism in the game? Is there actually a problem? Has the problem been caused by... more
Caster Semenya’s Appeal to Switzerland’s Federal Supreme Court from her unsuccessful case at CAS was rejected last week.... more
Sports Stars and Unpaid Wages – Yasin Patel looks at the World of Professional Cricket and the growing problem of what can... more
On 2 July 2020 the National Crime Agency confirmed that it had dismantled “entire organised crime groups” through Operation... more
It is not just in the worlds of finance and commerce where the effects of the global Corona Virus pandemic are currently being... more
In January 2019, Yasin Patel and Amy Hazlewood wrote an Article on Unexplained Wealth Orders (UWO’s). This Article provides an... more
Following on from Yasin Patel and Amy Hazlewood’s article on Fraud under the furlough scheme, this article takes a closer... more
Church Court Chambers proudly presents our first Webinar, “Jury Really Want To Hurt Me?” – The Culture Club of Trial by... more
“In this short article Gregory Wedge of Chambers Crime and Regulatory Group analyses the recent Court of Appeal authority... more
Notwithstanding the seriousness of the coronavirus (COVID-19) pandemic and a global effort to fight the same, some individuals... more
Yasin Patel and Amy Hazlewood look at the potential criminal offences arising from the furlough scheme and what multi-national... more
Many businesses are wondering whether the Covid-19 Pandemic will allow a reduction or, alternatively, end their existing... more
In light of the unprecedented measures that the UK government has put in place to address the Coronavirus pandemic, George... more
Kerim Fuad QC, Head of Chambers, and Colin Witcher of Chambers Crime and Regulatory Group suggest three recent authorities to be... more
The “ Magnitsky Act” is a trailblazing piece of legislation enacted by the United States. Lesley Manley looks at developments... more
Cannabis, good drug or bad? The topic of debate internationally for decades by governments, medical professionals, recreational... more
Islam Khan discusses a recent Court Of Appeal case in an immigration matter shifting the test on proportionality on Human Rights... more
Islam Khan explores what the “BANGER” extension establishes and how it affects the current “Surinder... more
For even the most dyed in the wool Conservative voter, Conservative Central Headquarters’ decision to rename their twitter... more
Does your neighbour regularly park across your driveway? Have a dog that howls or barks incessantly? Have children that make... more
This weekend the Rugby World Cup Final between England and South Africa will be watched by billions around the globe. Inside... more
……“the consequences of the infringement of the procedural rules about contempt proceedings may be just as serious... more
R (on the application of Miller) (Appellant) v The Prime Minister (Respondent) Cherry and others (Respondents) v Advocate General... more
Over the past week, Lewis Power QC has been representing the Church Court International Law Team across the pond. Mr. Power QC... more
Lincoln’s Inn Barrister Still Missing Despite the Promises of Foreign Adviser Gowher Rizvi to Assist after Al Jazeera Head to... more
Yasin Patel and Amy Hazlewood look at one of the most important pieces of legislation passed in recent years. One that is looking... more
As October 31st 2019 draws nearer, Britain’s exit from the European Union and its exact terms become all the more important. ... more
The Corporate Manslaughter and Homicide Act 2007 (the Act), was designed to create a statutory offence, facilitating the... more
Yasin Patel and Amy Hazlewood look at the area of drill music and the law. This article is split into two parts: the first part... more
Yasin Patel looks at the question of “racism in football”. In this two part series, the first article outlines the arguments... more
In this article, written by Yasin Patel and Amy Hazlewood, we look at the areas of drugs, and in particular ‘county lines’... more
The British government and its agencies powers of investigation will increase significantly with a new piece of legislation.... more
Since the downfall of ISIS and the liberation of many Syrian people, women and children (and whole families) have been fleeing to... more
Tax Avoidance and Tax Evasion. What is the difference? One is illegal and one is smart tax planning. But which is which? Local... more
Yasin Patel and Amy Hazlewood explore the problems surrounding drones, from their use in humanitarian activities to drugs being... more
Yasin Patel looks at the growing area of ‘Image Rights’ and why it makes sense for a sports star to protect their ‘image... more
The case of Zamira Hajiyeva and the Unexplained Wealth Order “UWO” restrictions imposed upon her have brought to... more
New Law Journal publishes article by George Hepburne Scott regarding the recent ground breaking High Court case regarding prison... more
New Law Journal publishes an article by George Hepburne Scott regarding changes to the judiciary in Poland. George Hepburne Scott... more
‘Suck my d**k, you n****r, you n***o’ Offended by the title. And so you should be, but what are you going to do about it?... more
Please follow link below to read George Hepburne Scotts article on extradition published in the New Law Journal.... more
The Situation before the Human Rights Act In the traditional doctrine of statutory interpretation, the courts looked at the... more
The new Prime Minister Theresa May has announced a review of the Modern Slavery Act 2015; it is clear that corporate compliance... more
The Court of Appeal in the case of Griffiths 1 QB 589, made an apposite observation concerning a growing trend towards indicting... more
On 23 June 2016 over 33 million people voted in the EU referendum. Since that date there has been widespread anger from those who... more
Alkan Shenyuz is a barrister with Church Court Chambers specialising in international commercial law and in this article for... more
Leading legal publisher Westlaw has published Michael Polak’s article on INTERPOL notices. INTERPOL notices can severely... more
Alkan Shenyuz, a barrister and specialist in banking and financial services looks at the new EU Payment Services Directive and... more
In a clear sign that regulators want to open up competition in the UK banking industry to new banks, the Prudential Regulatory... more
In R (on the application of DC and The Secretary of State for Justice EWHC 33 (Admin) the High Court considered the law of... more
Whilst it would be naïve to suggest that ‘marriages of convenience’ do not occur, the Home Office seem to me to be using... more
Anthony assisted partners in Peters & Peters LLP in providing an expert summary of the laws and regulations which have been... more
Looted antiquities from Syria – what collectors need to know Alkan Shenyuz, barrister with Church Court Chambers discusses what... more
Modern Slavery Act 2015 The introduction of this consolidating act is to be welcomed. As with all recent changes to criminal... more
Alkan Shenyuz, a barrister with Church Court Chambers in London and a specialist in international law, summarises the key legal... more
The Government’s announcement in June that it is to bring forward legislation in Parliament to ratify the Hague Convention on... more
An interesting and insightful article from Lesley Manley of Church Court Chambers on mental impaired clients. It is often helpful... more
Guy Williamson is a former police officer and former ABA Super Heavyweight Champion turned barrister. Called to the Bar in 2002... more