FCA has fined Equifax Ltd for £11,164,400 for failing to manage and monitor the security of UK consumer data it had outsourced to its US parent, in breach of Principles 3, 6 and 7. In 2017, cyber-hackers caused Equifax...
Author - Emma Radmore
Emma Radmore
EBA finalises remote onboarding guidelines
EBA has published its final guidelines on the steps credit and financial institutions should take to ensure safe and effective remote customer onboarding. The guidelines include: expectations for policies and procedures...
FCA speaks on D&I
Sheldon Mills has spoken to the ABI on driving change in D&I within the FS industry. He noted that the insurance industry is not currently attractive to minority ethnic talent, although is generally a good place to...
FCA creates function to help new firms
FCA has created a new “early and high growth oversight” unit to help newly authorised firms adapt to compliance with FCA Rules. FCA has found that as new firms often grow quickly, any compliance errors can...
HMRC updates MSB guidance
HMRC has published updated guidance for MSBs on understanding risks and taking action. It confirms that MSBs are seen as attractive vehicles for criminals and gives examples of how MSBs have been used for money...
PRA speaks on growth and competitiveness
Sam Woods has spoken at Mansion House on how prudential regulation can contribute to the competitiveness of the UK as a financial centre, and to economic growth. He confirmed PRA’s support for the FSM Bill...
Key Appointed Rep and TPR deadlines
FCA’s latest edition of “regulation round up” summarises recent publications and key deadlines, and also: says it will send the promised s165 request to all principal firms asking for information about...
PSR publishes final card market review terms
The PSR has published the final terms of reference for its reviews into: card scheme and processing fees: PSR has set an ambitious timetable to conclude a review of the levels, structure and types of scheme and...
FCA warns firms about misuse of trading names
FCA has noted an increase in firms misusing trading names. It has updated its website to clarify that: using an unauthorised entity’s name as a trading name will not circumvent the appointed representatives...
Economic Crime and Corporate Transparency Bill starts Committee stage
The Economic Crime and Corporate Transparency Bill has started its Committee stage in Parliament. On 25 October, it heard from a number of witnesses including UK Finance and the BVCA, the NCA and Companies House. The...
Highlights of FSMB debates from 25 October
The 3rd and 4th sittings of the Public Bill Committee debate on the FSM Bill took place on 25 October. After the evidence sessions from witnesses on 19 October, the line-by-line scrutiny of the Bill has now started...
FATF consults on BO guidance
FTAF is consulting on updates to its guidance on Recommendation 24, following the amendments to the Recommendation that it adopted in March. The draft guidance explains the purpose of gathering beneficial ownership...
Further amendments to FSM Bill up for debate
Further amendments to the FSM Bill have been published for debate in the Public Bills Committee. Among the suggested changes and additions are: a power for Treasury to direct a regulator to publish specified metrics, if...
FCA consults on anti-greenwashing rules
FCA is consulting on new rules to tackle greenwashing. Following its commitment in its ESG strategy and business plan, FCA is now addressing the concerns that the increasing exaggerated, misleading or unsubstantiated...
PRA Dear CEO letter on climate related risks
PRA has written to PRA regulated firms with a summary of capabilities PRA expects them to have to manage climate-related financial risks. The letter reminds firms that PRA expected them to have fully embedded their...
Further FSMB revisions released
Parliament has published the latest raft of proposed amendments to the FSM Bill. These include: a change to the very first sub-clause, replacing the revocation of the EU and EU-derived legislation in the schedule so...
“Financial Lives” shows millions of Britons struggling
FCA has published a snapshot of the latest edition of its Financial Lives survey, carried out between February and June 2002. It found: 7.8m people are finding keeping up with bills a heavy burden – around 2.5m...
FCA decides to fine Barclays for disclosure failings
FCA has published decision notices against Barclays plc and Barclays Bank plc, proposing a fine of £50m in relation to failure to disclose certain arrangements with Qatari entities as part of capital raising in 2008...
Call for evidence on Economic Crime Bill
The Public Bill Committee has invited written evidence on the Economic Crime and Corporate Transparency Bill, which is due to start its scrutiny in the Public Bill Committee on 25 October, and to conclude by 24 November...
FCA publishes H1 complaints data
FCA has published the complaints data for H1 2022, which shows: a 1% increase in complaints from the previous period (1.88m complaints) the biggest increase was in the decumulation and pensions group (15%) with a 5%...
PRA fines MS Amlin for governance failings
PRA has fined MS Amlin Underwriting Limited nearly £10m for failings in its governance, controls and risk management. The failings lasted for over 5 years and related to the governance and oversight of underwriting...
Minutes of first FSMB Committee sitting
The Hansard report for the FSMB debate on 19 October has been published. The witnesses giving evidence were, first, Victoria Saporta from the PRA and Sheldon Mills and Sarah Pritchard from the FCA. Victoria Saporta...
Pay.uk reports on account switching progress
Pay.uk has reported on the first 9 years of CASS. Among its key findings are: the PCA markets in 2021 was 21% less concentrated than in 2010, and there has been significant product innovation and improvement...
ML threshold amount to be increased to £1000
A draft statutory instrument has proposed the increase of the “threshold amount” above which banks suspicious of money laundering cannot deal without appropriate consent from the current £250 to £1000. The...
First day of FSMB Committee hearing
As scheduled, the Public Bill Committee scrutinising the FSM Bill had its first day of scheduled evidence sessions on 19 October, and an updated amendment paper was published. The Committee heard in the morning from...
OFSI and OFCA announce enhanced partnership
OFSI and OFAC held a multi-day technical exchange designed to aid collaboration between the agencies in future. In practice, this means that OFAC and OFSI officials will more often exchange best practices and pool...
LMA publishes managing agent Consumer Duty guidance
The LMA has published guidance for managing agents on the implementation of the Consumer Duty. It notes (as FCA did in its insurance-focussed webinar) that the insurance industry should be well prepared for the...
Mark Steward to step down as FCA Enforcement chief
Mark Steward is to step down as FCA’s executive director of enforcement and market oversight after 7 years. He will leave FCA in Spring 2023. In addition to leading many key precedent-setting cases, Mr Steward...
FCA updates on Consumer Investments Strategy
FCA has published an update on its Consumer Investments Strategy, tracking what has happened in the past year. Highlights are that FCA has: prevented 1 in 5 applicants wanting to enter the consumer investments market...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...
PRA writes to credit unions with annual assessment
PRA has written to credit unions setting out its conclusions from its annual assessment of the sector. Key messages, for both large and small credit unions are: that the likelihood of market conditions in the lending...
Government responds on UK/EU FS dialogue
The Government has published its response to the House of Lords’ European Affairs Committee report on the UK-EU relationship in financial services. In the main, it is pleased with the Committee’s findings...
FCA fines Gatehouse Bank for AML failings
FCA has fined Gatehouse Bank £1.5m (after a 30% reduction for early settlement) for significant weaknesses in its AML controls which lasted for 3 years to July 2017. It found the bank generally failed to conduct...
FSMB Committee stage scheduled for 19 October
An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October. After the line by line debate is complete, the Bill will be republished for report...
BoE stress test finds UK CCPs resilient to stresses
BoE has published the results of its first supervisory stress-test of UK central counterparties. The exercise involved all UK CCPs, ICE Clear Europe Limited, LCH Limited and LME Clear Limited. The CCPs showed...
Launch of our re:connect hub
We are excited to launch our new re:connect hub, housing resources to help our clients tackle the challenges of today and tomorrow by making the most of every opportunity by connecting data, finance and people to ensure...
FATF publishes timetable for 4th round evaluations
FATF has published its procedures for the fourth round of mutual evaluations. The procedures include details of the notice periods and the manner in which the evaluations will take place, and the publication of reports...
FPC publishes policy summary
BoE has published the FPC’s financial policy summary and record. Key points to note are: the deterioration in the outlook for growth in the UK and globally since the July Financial Stability Report; the temporary...
LSB speaks on customer outcomes in outsourcing
Emma Lovell, Chief Executive of the LSB, has spoken on the top risks LSB sees in outsourcing and the steps that firms can take to achieve fair outcomes for customers. She focused on: due diligence and oversight: she...
FSB consults on regulation of crypto assets and markets
The Financial Stability Board has published a consultative report including some high level recommendations aimed at promoting consistent and comprehensive treatment of crypto-asset activities and markets. The 9...
FCA finalises branch closure guidance
FCA has published new, updated guidance for banks, setting additional expectations on them when they are considering closing branches or ATMs. FCA has seen some good practices develop since it originally published...
TI says LLPs abused “on industrial scale” for financial crime
A Transparency International report claims that 14% of all LLPs ever incorporated (21,000) show money laundering red flags. Its report comes as the Economic Crime and Corporate Transparency Bill nears its parliamentary...
FCA updates on authorisations metrics
FCA has updated its operating metrics for authorisations. It notes the reasons why it was not meeting its metrics in 2021/22, which included that an increased scrutiny at gateway level meant that the number of firms it...
FCA fines and bans for market abuse reporting failures
FCA has fined Sigma Broking Limited and has banned and fined its former directors. The firm failed to make reports, or accurate reports, on 56,000 CfDs over a period of just over 18 months to August 2016, and also...
FCA portfolio letter to high-cost lenders
FCA has published its portfolio supervision letter in relation to high-cost lending products. The letter sets out the risks FCA believes high-cost firms pose to their customers and the markets in which they operate and...
FCA updates Whistleblowing data
FCA has published data on whistleblowing reports received between April and June 2022. It received 243 new reports containing 474 allegations, mainly through its online reporting form, but a sizeable number by email or...
FIN team thrilled with ranking and awards!
The FIN team are delighted to have both retained the Legal 500 rankings for the core team services and to have won two awards at the recent Compliance Register Platinum Awards – for Best Law Firm: Regulatory...
FCA publishes review of BI insurance claims handling
FCA has published a review of how insurers have been handling claims under business interruption insurance policies. It has welcomed insurers making quick interim payments and proactively communicating with...
Market Watch focuses on transaction reporting
The latest edition of Market Watch looks at how many firms have accessed FCA’s Market Data Processor Entity Portal over the past 4 years – and there has been a gradual increase. There has however been a...
FCA consults on creating baseline financial resilience return
FCA is consulting on a proposed replacement for the Financial Resilience Survey. It plans to create a new return for solo-regulated firms, which it hopes will both reduce the burden of ad hoc surveys and increase the...
New Russian sanctions in place from 30 September
In response to the illegal annexation of 4 Ukrainian regions, the Government has imposed sweeping new sanctions the effect of which is to deny Russia access to key services including IT consultancy, architectural...
FCA revamps Digital Sandbox page
FCA has updated its support page on its website relating to the Digital Sandbox to explain more clearly what it offers and how to apply (although it is currently closed for applications)
FCA publishes new information for newly authorised firms
FCA has set up a new page on its website designed to help newly authorised firms in various sectors understand where to find relevant information, rules and guidance. The sector specific information is designed for...
FCA makes new rules
FCA has published Handbook Notice 102, confirming new rules: implementing the Consumer Duty (as decided in its July Board meeting) implementing the changes to appointment and supervision of Appointed Representatives...
PSR sets out APP scam protection proposals
PSR is consulting on how to increase consumer support for APP scams. Following the initiatives it has taken to date, the new measures will: require reimbursement in all but exceptional cases; improve and make...
FCA warns insurers about cover during cost of living crisis
FCA has written to the CEOs of insurers and brokers following concerns that customers may look to cut back on the insurance they hold as the cost of living crisis continues. FCA wants to be sure that customers are...
Ombudsman News and new FOS UCIS pages
The latest edition of Ombudsman News highlights the recent complaints data we’ve previously reported on, and gives guidance on complaints relating to UCIS. FOS is seeing increasing complaints about advice to...
BoE speaks on technical innovation from crypto to real
Sir Jon Cunliffe has spoken on innovation, and specifically the risks and opportunities of crypto-assets, in post trade services. He noted the importance of bringing crypto-assets and activities within regulation...
OFSI fines for sanctions breach
OFSI has published details of a monetary penalty imposed on Hong Kong International Wine and Spirits Competition Ltd. The fine, of £30,000 related to 3 payments and 78 wine bottles the company had received from a...
Government updates on Growth Plan and FS proposals
The Government’s update on its growth plan, published on 26 September, heralds an October date for the Chancellor to set out plans for regulatory reforms to the financial services sector, to keep it competitive.
Court dismisses JR application on FOS decision
The High Court has refused a renewed application by Charles Street Securities Europe LLP for permission to apply for judicial review of a FOS decision made in February 2021. The dispute focused on whether Mr R, a client...
FCA speaks on role of regulation in growth
Sarah Pritchard, Executive Director at FCA, has spoken on the regulator’s role in encouraging growth. Key points in her wide-ranging speech included: FCA’s commitment to showing speed and agility, providing...
BoE publishes 2022 Stress Test scenario
The BoE has published the scenario it will be stress-testing banks against now it is returning to the pre-pandemic annual stress-test framework. The test will focus on deep simultaneous recessions in UK and global...
Government Growth Plan heralds role of financial services
The Government’s new Growth Plan announced on 23 February highlights the importance of the financial services sector and, specifically: a plan to scrap bankers’ bonus caps; the need to scrap much of Solvency...
PRA consults on depositor protection
PRA is proposing a number of changes to its rules, supervisory statements and statements of policy to: delete the Dormant Account Scheme part of the PRA Rulebook; amend the Depositor Protection Part of the PRA Rulebook;...
FCA updates on insurance pricing
FCA has updated its website on general insurance pricing practices, to include information on application of PROD to products distributed through distributors based outside the UK and intended for non-UK customers. FCA...
FCA publishes insurance broker wind-down plan study
FCA has published the results of its review of how well general insurance brokers assess the adequacy of their liquidity for orderly wind-down. During early 2022, it conducted a review of 10 insurance brokers, mainly...
FCA confirms SMCR Covid guidance no longer current
FCA has updated its website in relation to the SMCR to confirm that its Covid-related guidance on workplace arrangements and work-related travel and its expectations on firms is no longer current.
“Brexit Freedoms Bill” starts Parliamentary journey
The Government has published the Retained EU Law (Revocation and Reform) Bill 2022, which it is referring to as as the “Brexit Freedoms Bill“. The plan is to amend, repeal or replace all EU legislation by...
Economic Crime and Corporate Transparency Bill heralds Companies House reform
The Economic Crime and Corporate Transparency Bill has started its parliamentary passage. The Bill aims to crack down on money laundering and other crimes, primarily through: the long-promised Companies House reforms...
FOS publishes H1 complaints data
FOS has published its regular half-yearly update on complaints data relating to individual businesses. 212 businesses feature, with an average uphold rate of 37% (the same as the previous period). FOS has also reported...
FCA consults on trading venue perimeter
FCA is consulting on clarifications to the regulatory perimeter for trading venues and related services. The consultation is part of the wholesale markets review and reflects concerns expressed as part of the feedback...
FCA suggests changes to multi-occupancy building insurance market
Following a request from the then Secretary of State for Levelling-up, Housing and Communities in January, FCA (working with the CMA) has published its recommendations and potential remedies to give leaseholders better...
FCA updates on Link Fund Solutions investigation
FCA has confirmed it has now issued Link Fund Solutions Ltd with a draft Warning Notice following its investigation into the circumstances leading up to the suspension of the Woodford Equity income Fund. The firm has 14...
BIS calls for swift Basel III implementation
The Basel Committee has reiterated its expectation that all aspects of the Basel Framework should be implemented as consistently and fast as possible. More than 66% of jurisdictions plan to implement all or most of the...
FCA imposes conditions on CiC
On 12 September, FCA announced that it has imposed conditions on a proposed change in control. Dye & Durham is looking to take over the Link Group, which involves the acquisition of 7 FCA-authorised firms. One of...
FSM Bill progresses through Parliament
The Financial Services and Markets Bill had its second reading in Parliament on 7 September. There appears to be broad support for the Bill, and many MPs focussed on the importance of access to cash. On 8 September...
Treasury Committee publishes responses to “future of regulation”
The Treasury Committee has published responses from the Government, PRA and FCA on its report on the future of financial services regulation. Among the key observations are that: all regulators agree the importance of...
FCA speaks on “force multiplier effect”
Sarah Pritchard, Executive Director of Markets at the FCA has recently given a speech on how the “force multiplier effect” is key to fighting financial crime. She said the role of those in the first line of...
Government approach to crypto
The House of Commons library has released a research briefing setting out the Government’s regulatory approach to crypto-assets and currencies in advance of a Westminster Hall debate on 7 September. The report...
OFSI publishes annual frozen asset request form
OFSI has published the annual frozen assets reporting notice, template and accompanying guidance notes. All persons who hold or control funds or economic resources belonging to a designated person should complete the...
Innovate Finance publishes FSM Bill briefing
Innovate Finance has called out the aspects of the FSM Bill that are of particular relevance to the UK FinTech sector. It calls out the Bill’s proposals on: stablecoin regulation and the FMI sandbox(es) –...
Treasury says no need for specific “have regard” to financial inclusion
Richard Fuller has written on behalf of HM Treasury to the Treasury Committee in relation to the proposal that FCA be given a “have regards” in relation to financial inclusion. The effect of this, as part...
PRA writes to Treasury Committee on “strong and simple”
Sam Woods has written to Mel Stride answering the Treasury Committee’s follow up questions about the Strong and Simple framework. The letter explains that PRA received 19 responses to its consultation and says: in...
DRCF ToR published
The CMA has published the terms of reference for the Digital Regulation Cooperation Forum, which was established by the CMA, ICO and Ofcom in June 2020, with FCA joining in April 2021. The forum’s objectives...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation. It proposes changes to: the schemes regime under s272, and consequential changes to COLL, the Glossary, DEPP and EG. The changes specifically relate to what FCA...
FCA updates attestations stats
FCA has published details of the number of attestations it has received in the first quarter of 2022/3. It has received only 4, all in respect of retail business, and none from dedicated supervision firms. Over the...
FCA updates skilled persons data
FCA has published the figures for its skilled persons reviews during Q1 2022/23. 9 reports were commissioned, of which 4 related to retail banking and payments. 2 reports related to governance and individual...
OFSI updates sanctions guidance
OFSI has published a blog on who needs to make reports to it in relation to financial sanctions issues and how, and also also updated its general guidance on financial sanctions to give greater guidance on reporting.
FCA publishes robo-advice repayment decision paper
FCA has published an occasional paper that looks at the results from a robo-advice experiment which asked customers to make borrower repayment decisions. It drew several interesting conclusions, including that: the...
No further action against HBOS senior managers
PRA and FCA have finished their investigations into certain former senior managers at HBOS in relation to its 2008 failure. The regulators started the investigations in 2016 following the Green report on the scope of...
Wolfsberg Group publishes transaction monitoring RFI guidance
The Wolfsberg Group has published a guidance paper looking at requests for information as used in AML transaction monitoring. RFIs are used when correspondents or other PSPs are looking to understand transactions that...
FCA sets up ESG advisory committee
FCA is setting up a new advisory committee to its board to help on ESG issues, and is looking for a small number of external experts to join it. It is looking for interested parties who have in depth knowledge of ESG...
FCA responds to Premier FX complaints
FCA has upheld or partially upheld 5 out of the 31 complaints it received from people who lost money when money remitter Premier FX collapsed. The issues relate to events which happened some time ago, and in relation to...
FCA to send AR requests in December
FCA has confirmed it will be sending principal firms that have appointed representatives a s165 information request in December. The request (which FCA had previously said it would issue later this year) will seek...
FCA fines for failure to have trade surveillance requirements
FCA has imposed a fine of over £12.5m on Citigroup Global Markets Limited, for failing to comply with MAR trade surveillance requirements. MAR introduced a requirement from 2016 to monitor orders and trades to detect...
FCA warns again on misleading BNPL ads
FCA has written to BNPL providers and to the British Retail Consortium, warning them that even while some BNPL agreements remain currently unregulated, this does not mean that the financial promotion rules don’t...
UK Finance publishes UK payment market report
UK Finance has published a report on trends in UK payment markets in 2021 and forecasts up to 2031. Unsurprisingly, the report looks at the effects of the pandemic on payments that fell and then recovered, and at the...
Complaints Commissioner upholds complaint against Supervision Hub
The Complaints Commissioner has upheld a complaint about an individual’s dealings with FCA’s Supervision Hub. The complainant had emailed the hub and had no response, so had called. The call with an...
FCA to consult on SMCR enhanced scope coverage
FCA is to consult shortly on changes to clarify the scope of firms that fall within the scope of Enhanced Scope SMCR firms. When it renamed and moved the definition of “Significant IFPRU firm” as part of...