FCA has updated its webpage on reporting of general insurance value measures to clarify which firm is responsible for reporting in various scenarios. The requirements are all set out in SUP 16.27.8 but FCA has set out a...
Author - Emma Radmore
Emma Radmore
EU to amend high risk third countries list
The European Commission has published a draft Regulation to amend the MLD list of high risk third countries. It proposes to: add to the list: Burkina Faso, Cayman Islands, Haiti, Jordan, Mali, Morocco, the Phillippines...
FCA still concerned about wholesale data
FCA is to continue to investigate the markets for benchmarks, indices, credit ratings and trading data after responses to its call for input highlighted concerns that there is limited competition in the markets and that...
MLR changes change dates and criteria for registrable trusts
Changes to the MLRs: change time limits for the registration of trusts, so that trustees now have until 1 September 2022 to register (extended from the original 10 March to give trustees a year after the TRS enabled...
FCA takes criminal proceedings against directors of unauthorised firm
FCA has commenced criminal proceedings against brothers who were directors of Collateral (UK) Limited, and who: dishonestly represented to investors that the firm was authorised as a P2P lender, knowing it was not;...
FCA to redo financial resilience survey
Firms should look out for a new version of the FCA Covid financial resilience survey. It has already run the survey 5 times and will now start a 6th review. Completion of the survey is mandatory, and FCA will be...
FCA updates information on Complaints Commissioner reports
FCA has updated its website to provide links to Complaints Commissioner’s reports where the Commissioner has upheld complaints against the FCA, and has added 6 new reports dated 4 January 2022. The reports...
EBA publishes derisking opinion
EBA has published its opinion on the scale and impact of derisking and the steps regulators should take to tackle “unwarranted” derisking. Although EBA feels its guidance ought to help avert the practice, it...
ESMA asks for support on reverse solicitation report
ESMA has written to the EU on reverse solicitation. The Commission had asked ESMA for its input on a report the Commission is to deliver on cross-border distribution of collective investment undertakings. ESMA has been...
ESMA publishes appropriateness and execution only report
ESMA has published its final report on its guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements that apply for non-advised sales. ESMA’s work had shown a need for...
FCA confirms end-2021 LIBOR changes
FCA has reminded firms that publication of 24 LIBOR settings has ended – that is, all euro and Swiss Franc, all overnight/spot next, 1-week, 2-month and 12-month sterling and Japanese yen and 1-week and 2-month US...
EU reaches political agreement on DLT Regulation
The Council of the EU and European Parliament have reached a final compromise on a Regulation on a pilot regime for market infrastructures based on DLT. The regime: sets out the conditions for acquiring permission to...
JMLSG consults on syndicated lending changes
JMLSG is consulting on a proposed change to the Syndicated Lending chapter within part 2 of its guidance, to include a new paragraph on the risk-based measures that may be appropriate for each lender in a syndicate when...
FCA reminds firms and consumers of insurance renewal rule change
FCA has reminded firms and consumers of the new requirements taking effect from 1 January that will prevent insurers from quoting customers a higher price for renewing home or motor insurance than they would charge a...
FCA updates on PRIIPs
FCA has confirmed its intention to amend the UK PRIIPs RTS and handbook guidance to reflect the new end date legislated for in the Financial Services Act 2021 that allows UCITS providers to choose to supply either a...
FCA extends 10% depreciation notification waiver
FCA has extended the temporary measures it put in place in March 2020 that mean it will not take action against firms who breach the requirement to issue 10% depreciation notices to retail investors under COBS so long...
HMRC reports on MLR non-compliance
HMRC has published its regular report on business that have failed to comply with the MLRs. Among the failings and fines are: a fine on BNY Mellon Corporate Trustee Services Limited for failing to apply for registration...
JMLSG updates guidance
JMLSG has confirmed the changes it proposed to chapter 5.7 of part 1 of its guidance on monitoring customer activity and published one further clarificatory guideline. It has now submitted the updated wording to...
PRA fines Standard Chartered for governance and transparency failings
PRA has fined Standard Chartered Bank £46.55m for: failings in its regulatory reporting governance and controls: PRA had imposed a temporary additional liquidity expectation on the bank in late 2017. Over a 14 month...
Government updates on anti-corruption strategy
The Government has highlighted the action taken in the third year of the UK’s current 5 year anti-corruption strategy. During 2020, key initiatives included: reducing the insider threat in high-risk domestic...
FCA updates on rule changes
FCA’s latest Handbook Notice confirms, among other things: changes to SUP to clarify what FCA expects to see reported on form FIN-A changes to LIBOR rules (previously reported in FIN) and changes to the value...
EU updates on PRIIPs
The Council of the EU ha published details of the extension of the transitional arrangement that allows UCITS to choose whether to use the KID or the KIDD. The transitional arrangement was due to end in July 2022, but...
FCA fines HSBC for AML transaction monitoring failings
FCA has fined HSBC £63.9m for failings in its AML transaction monitoring process between March 2010 to March 2018. FCA found that the bank did not: until 2014, consider whether the scenarios used to identify ML/TF...
CLLS considers Fin Prom onshoring
The City of London Law Society has published a letter written to the Treasury in July expressing concerns about how the “onshoring” of the Financial Promotion Order post-Brexit has affected the exemptions...
FCA fines for conflicts and gift & entertainment breaches
FCA has fined GAM International Management Limited £9.1m and Timothy Hayward £230,037 for issues relating to conflicts of interest and gifts and hospitality. Both the firm and Mr Haywood agreed all issues and qualified...
Ombudsman News looks at BI “at the premises” complaints
The latest edition of Ombudsman News from FOS looks not only at its plan and consultation (which FIN has covered separately) but also at complaints it has looked at relating to “at the premises” cover in...
Treasury Committee updates on Nat West correspondence
Following the sentencing in the Nat West MLR prosecution, the Treasury Committee has published further correspondence between it and the FCA. The FCA has now responded to the Committee’s previous correspondence...
Treasury consults on amending Fin Prom exemptions
20 years since the FPO was made, and more than 15 since it was amended to facilitate exemptions from the financial promotion restriction for high net worth and sophisticated individual investors, Treasury is consulting...
BoE publishes Financial Stability Report
The December 2021 Financial Stability Report concludes: recovery from the pandemic continues, and uncertainty also continues, but UK banks’ capital and liquidity positions remain strong; the FPC is keeping an eye...
Structure of sanctions lists to change
OFSI and the FCDO have announced that the structure and format of the UK sanctions list will change in February 2022. The changes will include: alias strength for UN listings standardised data wherever possible new...
FSB considers “safe remittance corridors”
FSB has published a World Bank/IMF report which proposes a draft methodology for and framework for assessing remittance corridors which could be considered “safe”, in an effort to improve cross-border...
NatWest fined £264.8m for AML failings
The long awaited sentencing following the conviction of NatWest on three offences of failing to comply with the MLRs resulted in the announcement of a fine on the bank of £264,772,619.95. The bank admitted to breaching...
FCA issues final LIBOR publications for end-2021
FCA has reminded firms of the remaining actions they need to take as the end of the year approaches and, with it, the cessation of calculation of most LIBOR rates. From 1 January 2022, 24 of the 35 LIBOR settings will...
EBA publishes draft guidelines on remote onboarding
EBA is consulting on draft guidelines for the use of remote customer onboarding solutions under MLD4. It aims to set common EU standards on developing and implementing sound, risk-sensitive initial CDD policies and...
UK Finance updates Financial Abuse Code
UK Finance has published an updated version of its Financial Abuse Code of Practice. The Code is a voluntary one, updated to reflect the industry’s understanding of victim-survivor needs. It is designed to align...
Treasury Committee asks for information on FOS action plan
The Treasury Committee has written to FOS, asking for further information on how it intends to get on top of its current case backlog, and how it proposes to address its funding issues. Mel Stride welcomed the...
FCA considers FSCS operation review
FCA has published a discussion paper on the purpose, scope and funding of the compensation framework. It notes that the FSCS levy has increased over the last 10 years, by nearly £500m to an expected £717m for 2021/22...
Commons Committee seeks clarity on UK/EU AML divergence
The House of Commons (European Scrutiny Committee) has written a letter on the implications for the UK of the proposed changes to EU AML rules. The Committee wants to understand better what the UK’s general...
ICO fines over pensions cold-calling
ICO has fined EB Associates Group (EBAG) £140,000 for instigating two IARs to make over 100,000 unsolicited direct marketing calls to consumers about occupational or personal pension schemes where the customers had not...
PSR consults on CoP: ending dual running
The PSR is consulting on the wider implementation of Confirmation of Payee, following its adoption by the UK’s largest banking groups. It has published a draft direction to ensure migration to the Phase 2...
FOS publishes plan for change
FOS has published an action plan to deliver a better service to customers. The plan aims, among other things: to bring more effective and efficient resolution of cases – part of this involves teams which are...
European Council and Parliament agree crypto-transfer mandate
The Council of the EU has agreed on a mandate to negotiate with the Parliament on a proposal to update existing rules on information accompanying transfers of funds so that they will include certain crypto assets within...
EU fines banks for FX spot cartel
The European Commission has fined UBS, Barclays, RBS, HSBC and Credit Suisse a total of €344m for their participation in a foreign exchange spot cartel. The first 4 banks settled (with UBS receiving full immunity for...
FCA publishes consumer warning on firm
FCA has published a consumer warning on Grosvenor Associates Limited. It says it has removed the firm’s permissions, so it is no longer authorised to carry out any regulated activities and investments with it may...
FCA makes pensions “stronger nudge” rules
FCA has made final rules that will require firms to give customers a “stronger nudge” towards Pension Wise when they decide to access their savings. The rules will take effect from 1 June 2022 and will...
FCA finalises UK MiFID changes
FCA has finalised its proposals on changes to the research rules and removal of the best execution reporting in RTS 27 and 28 in relation to UK MiFID. FCA remains of the view that the changes were necessary to ensure...
FCA publishes mortgage prisoner review
FCA has laid its mortgage prisoner review before Parliament. The review sets out data that will help the Government consider whether any practical and proportionate solutions could help these borrowers. FCA’s data...
FCA confirms changes to decision-making process
FCA has confirmed the changes to its decision-making process that will allow more decisions to be taken by senior managers rather than by the RDC. Senior managers will be able to make decisions under “executive...
PRA consults on operational resilience and continuity in resolution
PRA is consulting on operational resilience and operational continuity in resolution. The proposals on resilience cover UK banks, building societies, PRA designated investment firms, financial and mixed financial...
FOS sees rise in “authorised” scam complaints
FOS has seen a 30% increase in complaints about “authorised” scams in the second quarter of the financial year compared to the same period last year. half of the nearly 4,500 complaints were about...
FCA updates on KPIs
FCA has published its KPIs for the first quarter of 2021. Workload in all areas has gradually increased, but service standards have generally remained constant, as has the pattern of firms and percentage of withdrawals...
ESMA reports on MAR sanctions
ESMA has published a report on the sanctions imposed by various member states under MAR during 2020. Over the year, €17.5m in fines were imposed for over 500 breaches. The number of administrative actions was...
UK Finance makes Open Banking recommendations
UK Finance has published a report setting out its recommendations for the future strategy of open banking. Open banking payments have increased exponentially over the past 3 years and there are now over 2.5m each month...
Government publishes AML supervision report
The Government has published its AML and CTF supervision report for 2019-2020. The report notes the system has been strengthened significantly over recent years. The FATF report on the UK in 2018 had noted significant...
FCA publishes GI pricing attestation forms
FCA has published examples of the forms it will require from general insurance firms making their first, and then their subsequent attestations on compliance with the pricing rules. The first attestation can be sent in...
PSR announces next steps to stop APP fraud
The PSR has set out its latest plans to force the financial sector and others involved in the digital ecosystem to prevent APP fraud. It is consulting on plans to: require the UK’s largest banking groups to...
Commons Library publishes “Black Friday promotions” paper
The House of Commons Library has published a research briefing on the promotion and regulation of financial products on Black Friday. A debate has been scheduled for 23 November and has been initiated by Stella Creasey...
Dormant Assets Bill under inspection
The Dormant Assets Bill is making its way through the House of Lords, where members have voted on two changes to the Bill at report stage. It will now has its third reading on the Lords before moving to the Commons. The...
PRA publishes CRR mapping table
PRA has published a document showing which CRR provisions that Treasury has revoked since Brexit where PRA has made its own rules on the revoked matters.
FCA confirms more LIBOR rules
FCA has confirmed its new rules for: legacy use of synthetic LIBOR rates; and no new use of USD LIBOR. It will allow temporary use of synthetic sterling and yen LIBOR rates in all legacy LIBOR contracts other than...
FSCS confirms levies
The latest edition of FSCS’ “outlook” newsletter sets out its latest forecast for the current year, which is lower than previously forecast but still £17m higher than last year’s levy. It means...
FCA levies further fine for cum-ex trading controls
FCA has fined Sunrise Brokers LLP £600,000 for poor AML systems and controls in relation to cum-ex trading, dividend arbitrage and withholding tax reclaim schemes. It found the firm did not properly identify and...
Treasury extends Gibraltar transitional passporting rules
Treasury has made the Financial Services (Gibraltar)(Amendment)(EU Exit) Regulations 2021. The Regulations extend the current passporting arrangements that allow Gibraltar-authorised firms to do business in the UK. The...
FOS publishes Ombudsman News
The latest edition of Ombudsman News focuses on the recently published annual report and the feedback statement on outcomes reporting already covered in FIN.
FCA refuses SMF29 application
FCA has published its final notice refusing the application of an individual to perform the SMF 29 function for Servicesport Finance Limited. The individual in question was a solicitor who had failed to disclose SRA...
Treasury consults on future regulatory framework
Treasury is consulting on proposals for reform to the financial services regulatory framework, following the Chancellor’s announcement in his July Mansion House speech. The consultation builds on the October 2020...
LMA updates guidance on pricing and product reviews
The LMA has issued guidance on FCA’s new Pricing Practices rules and associated Product Reviews. The guidance includes a template with notes and examples on how intermediaries should exchange required information...
Treasury and FCA publish LCF compensation rules
Treasury and FCA have published the Scheme rules and consequent FCA rules on compensation arrangements for bondholders with outstanding investment in LCF which has not already been compensated by the FSCS. The scheme...
FCA publishes cum/ex financial crime warning notice
FCA has published an anonymised warning notice it has issued to a firm in relation to financial crime failings in some of its cum/ex trading. The notice relates to activities during 2015, and FCA found that, for...
PRA and FCA “no comment” on Staley investigation
PRA and FCA have published a joint statement in relation to the Jes Staley investigation. The regulators do not comment on ongoing investigations and so will do no more than confirm the firm’s announcement...
Treasury updates AML advisory
Treasury has updated its AML advisory on high risk jurisdictions for money laundering and terrorist financing, following the FATF meeting last week The list continues to require firms to apply counter measures and EDD...
ESMA makes statement on investment recommendations on social media
ESMA has made a statement on investment recommendations on social media. Following a rise in these types of promotion, and concerns that retail investors do not understand the risks involved in following these...
FATF updates virtual asset guidance
FATF has updated its 2019 guidance on a risk based approach for virtual assets and virtual asset service providers. The updates focus on: definitions of key terms; clarification of application of FATF standards to...
FCA publishes updated complaints data
FCA has published its six-monthly set of data on complaints that firms receive. Its latest findings include: a 7% decrease in complaints from H2 2016, with the 2.04m complaints being the lowest level since late 2016;...
SARs reporter engagement survey open to 1 November
The UKFIU and Home Office reporter engagement survey for SARs reporters is open until 1 November, for those involved in financial crime prevention to have their say.
Treasury updates on Economic Crime levy
Treasury has published a policy paper on the introduction of the economic crime levy, which will be introduced in the 1 April 2022 – 31 March 2023 levy year and payable in the following financial year. It had...
Government publishes first proliferation financing NRA
Treasury has produced the first comprehensive National Risk Assessment of proliferation financing, setting out the key risks and vulnerabilities the UK faces. The assessment explains the UK’s role and stance in...
FATF looks at unintended consequences of standards
FATF has published a high level synopsis of its stocktake in its project to look at the unintended consequences of incorrect implementation of its standards. It will now move on to identifying and considering potential...
FCA responds on NatWest
FCA has responded to the enquiry from the Treasury Committee on its actions in relation to its prosecution of NatWest for money laundering. The response says it would be inappropriate to respond in detail while...
FCA finalises LTAF rules
FCA has published its final rules for Long Term Asset Funds. An LTAF will be an open-ended authorised fund intended for investment by sophisticated investors and pension funds – in particular DC schemes whose...
FCA adds new question to GI pricing FAQs
FCA has added an additional question to its Q&As on its general insurance pricing practices rules. The new question relates to whether certain benefits such as events tickets, rare products or products of benefit...
FCA makes new rules
In addition to the new IFPR rules covered in a separate post, FCA has made: changes to COBS, effective from 4 October, on assessing value for money in workplace pension schemes; and the role of IGCs in challenging...
Fraud taskforce adds new charters
The Government website hosting all information about the Joint Fraud Taskforce has added the charters for accountancy, retail banking and telecommunications. The retail banking charter quantifies the key risks (APP...
PSR responds on COP call for views
PSR issued its call for views on the wider implementation of Confirmation of Payee in May 2021. It has now set out the findings from its call for views and its plans and expectation on industry for the next step. It...
NAO updates on BSPS
The National Audit Office has set a timescale for reporting in Spring 2022 on its investigation into the activities FCA has undertaken to regulate financial advice in relation to the restructure of the British Steel...
Treasury consults on BNPL
Treasury has published the long-awaited consultation on buy-now pay-later regulation, following the announcement on 2 February that the Government would implement the Woolard Review recommendation to bring interest free...
Treasury Committee seeks further information on NatWest action
The Treasury Committee has written to FCA asking for further information on FCA’s prosecution of NatWest for money laundering. It asks why it took 5 years to reach conclusion, and seeks to understand the...
FCA fines Credit Suisse £147m for financial crime DD failings
FCA has fined Credit Suisse (Credit Suisse International, Credit Suisse Securities (Europe) Ltd and Credit Suisse AG) £147,190,276 and agreed with it that it will forgive $200m of debt owed by the Republic of Mozambique...
FSB wants better convergence in cyber incident reporting
FSB has examined approaches to cyber incident reporting and found fragmentation across sectors and jurisdictions in terms of what should be reported for a cyber incident, how impact and severity is measured, reporting...
FCA writes to more DB customers about compensation
FCA has written to a further tranche of customers who received DB pension transfer advice to tell them they may be entitled to compensation, following findings of past business reviews. It has updated its list of firms...
ICAEW responds on AML consultations
ICAEW has published its response to the Treasury’s call for evidence on the UK AML/CFT supervisory regime and on targeted amendments to the MLRs. In its response on the MLR amendments, key observations include:...
Charles Randell to step down as FCA and PSR Chair
Charles Randell has told the Chancellor that he is to step down as Chair of FCA and the PSR from Spring 2022. He will not be moving to any other position, but feels the time is right for a change. Mr Randell was...
FCA portfolio letter to Lloyd’s participants
The latest portfolio supervision letter from FCA is addressed to Lloyd’s and London market insurers and others. The letter follows on from the November 2020 version and, generally, commends the market for its...
FOS blogs on distress and inconvenience payments
FOS has published a blog of its thoughts on how it assesses awards for distress and inconvenience. Its guidance has not fundamentally changed, but has been refreshed after firms said more clarity would help them. FOS...
BoE looks at financial stability risks of crypto
Jon Cunliffe has spoken of the potential risks to financial stability of crypto assets such as bitcoin and stablecoins. Crypto assets have grown by 200% in 2021 alone. Mr Cunliffe feels that they have the potential to...
CMA to take no action against Lloyds for Retail Banking Order breach
CMA has confirmed it will not be taking any further action against Lloyds Bank following the bank’s failure to display required information in relation to SME loans on one page of its website, which potentially...
FCA looks at next steps in consumer credit regulation
Nisha Arora has spoken on FCA’s priorities in regulating consumer credit. She noted that FCA has significantly improved outcomes for consumers using credit since FCA took over its regulation, but that there is...
SFO gets more Petrofac bribery convictions
SFO has confirmed Petrofac’s conviction for seven separate counts of failure to prevent bribery between 2011 and 2017. The convictions relate to failure to prevent former senior group executives from using agents...
FCA publishes REP-CRIM data analysis
FCA has published its analysis of firm’s financial crime reports from 2017-2020. Over the period, it received over 5,500 reports from over 2,300 different firms. Among FCA’s key observations were: 111,000...
Nat West pleads guilty to MLR offences
Nat West has entered guilty pleas to criminal charges brought by FCA that it had failed to comply with certain requirements under the MLR 2007 between various dates from November 2012 to June 2016. The failings related...