FIN.

Author - Emma Radmore

IAIS updates on AI work

IAIS has issued an update on its work on the adoption of AI and machine learning in the insurance sector. It has reviewed guidance from 12 international supervisors and organisations. Among its conclusions are that the...

FCA consults on access to cash

FCA is using its powers under FSMA 2023 to consult on new rules to require designated banks and building societies to assess gaps in access to cash and act to fill them. FCA says that, currently, over 95% of people in...

PRA consults on step-in risk assessments

PRA is consulting on proposed changes to rules and policy that will require CRR firms and consolidation entities that are not classified as small domestic deposit takers to regularly assess their step-in risk –...

FCA consults on Overseas Funds Regime

FCA is consulting on how the Overseas Funds Regime should operate in practice. The Government has designed the regime to provide a streamlined process to allow funds from jurisdictions assessed as...

OFSI defends licence refusal

The High Court has supported OFSI’s decision to refuse to grant licence requests relating to a Designated Person. Mikhail Fridman had filed the first claim under s38(2) of SAMLA (and also the first challenge to...

Treasury publishes Future of Payments Review

Treasury has published its Future of Payments Review, commissioned from Joe Garner, as part of the Autumn Statement package. The review asked: what are the most important consumer retail payment journeys both today and...

FCA consults on fee policy

FCA is consulting on its policy proposals for the 2024/5 fee year. For application fees, FCA did not increase these fees last year, but now feels it is appropriate to do so as its costs for processing applications are...

FCDO and OFSI clarify “control”

FCDO and OFSI have given guidance on their approach to what “ownership and control” means when a public official is designated.  The guidance confirms that any entity which is owned or controlled by a...

FCA updates AR pages

FCA has updated the page on its website that provides information for principals of ARs. The main purpose of the additions is to remind firms of the need to comply with the Consumer Duty if they have retail customers...

Lenders go into administration

FCA has confirmed that Morses Club Limited, a home collected credit lender, and its subsidiary Shelby Finance Limited (Dot Dot Loans – an online HCST lender) have gone into administration. It provided information...

FCA speaks on importance of culture

Sheree Howard, FCA’s Executive Director of Risk and Compliance Oversight spoke about the importance of the execution of a plan being as vital as its ideology and purpose. She said firms must look at whether they...

PRA consults on funded reinsurance

PRA is consulting on its proposed expectations when life insurers enter into or hold funded reinsurance arrangements as cedants. It feels it needs to set out these expectations to advance its primary objectives by...

ECCTA starts to take effect

The first commencement order under the Economic Crime and Corporate Transparency Act 2023 brings into force on 15 January 2024 several parts of the Act, including the provisions on: the change to POCA to create...

Lords recommends new Regulation Committee

The House of Lords Liaison Committee has recommended that a new financial services regulatory committee be created whose remit will be to look at financial regulation generally and particularly to scrutinise financial...

FCA publishes operating metrics

FCA’s latest authorisations metrics, for the quarter ending September 2023 shows overall improvement in meeting targets. 96.8% of all applications met statutory deadlines, and of the 16 metrics only 2 are red...

NCA issues gold sanctions abuse warning

NCA has warned financial institutions to be aware of deliberate attempts to breach UK sanctions and launder sanctioned gold and hide it in supply chains. Several individuals and entities operating in and supporting...

PSR consults on Direction review mechanism

PSR is consulting on the way in which it reviews its general directions and generally imposed requirements. FSMA 2023 has added new requirements for PSR to keep these under review and publish statements of policy about...

FCA updates on Woodford Scheme

Link Fund Solutions is to convene a meeting of all affected investors on 13 December to vote on whether to approve the proposed settlement fund in relation to the LF Equity Income Fund. FCA has confirmed it believes the...

BoE launches new stress test phase

BoE has published the latest phase of the System Wide Exploratory Scenario, which it first launched in June.  The SWES is intended to help BoE understand the risks to and from non-bank financial institutions, and the...

FSCS updates on levy and forecast

FSCS has published its latest “Outlook” newsletter. FSCS does not expect to request any additional levies from firms during the current financial year and will carry forward any surpluses in any class to...

UK Finance responds on SME lending

UK Finance has responded to the Treasury Select Committee call for evidence on availability of finance for SMEs. Its response notes that 2022 saw the highest SME lending since comparable records began in 2012, on the...

Regulators consult on BoE levy regulations

the BoE and Treasury are consulting on how to implement the new levy based arrangement which will replace the Cash Ratio Deposit scheme. Deposit-taking firms (except credit unions and friendly societies) with eligible...

Treasury publishes draft Brexit amendment SI

Treasury has published a draft statutory instrument, intended to take effect from 1 January 2024 which will use powers under FSMA 2023 to make various changes to primary and secondary legislation to remove or amend...

Treasury to update Fin Prom exemptions

Following its consultation on exemptions in the FPO for promotions to high net worth individuals and sophisticated investors, Treasury has decided to make some updates. It will: increase the financial thresholds needed...

FCA updates on fin prom data

FCA has published data for the quarter ending September 2023 on its actions against breaches of financial promotion rules and referrals and investigations into unauthorised activity. During the period: FCA actions...

PRA consults on FSCS general insurance limit

PRA is consulting on whether there should be an increase in the FSCS limit for general insurance. Currently, eligible policyholders will get either 90% or 100% of a valid claim on a failed insurer paid by the FSCS, with...

FCA publishes crypto marketing guidance

FCA has published guidance it hopes will support firms complying with the new rules on crypto promotions. It is aimed both at registered crypto firms making promotions and at authorised forms who are communicating or...

Market Watch updates on market soundings

The latest edition of Market Watch updates FCA’s views on market soundings, following on from previous editions. FCA says it has recently found cases where recipients of soundings have traded between receiving the...

FCA writes to RemCo chairs

FCA has written a “Dear Chair” letter to the chairs of Remuneration Committees of proportionality level one dual regulated firms. The letter: stresses that in times of continuing cost of living pressures...

FATF holds plenary

FATF has held its latest plenary session. It agreed several reports, including on crowdfunding for terrorist financing, and revisions to Recommendation 8 to clarify measures applying to NPOs. It will also be consulting...

Treasury and FCA hold perimeter meeting

Treasury and FCA have published the record of their July meeting to discuss aspects of the regulatory perimeter. The issues discussed included: discussion of FCA’s plans around expectations on firms carrying out...

Regulators feed back on AI

PRA and FCA have published a feedback statement following their and BoE’s discussion paper on AI and machine learning. The paper asked for views on the role supervisors should play in supporting the safe and...

HCSTC lender goes into administration

FCA has announced the administration of Novaloans Limited, an online only high-cost short-term lender and provided details of its administrators and the entity the administrators have instructed to collect all...

FCA issues further crypto-marketing warnings

FCA has continued to look closely at cryptoasset promotions following the new rules that took effect from 8 October. It has identified 3 common problems in these promotions: promotions that make claims about the safety...

PSR publishes APP fraud data guide

PSR has published guidance for PSPs on the content of the data on APP fraud that PSPs are now required to provide. The guide also looks at the required format for the data and the timescales for its provision.

Regulators confirm removal of bonus cap

PRA and FCA have confirmed the decision to remove the limits on the ratio between fixed and variable remuneration with effect from the end of October 2023 and which will apply to current and future performance years...

FCA updates complaints data

FCA has published updated complaints data based on returns from firms. Snapshots from the 2023 H1 data include: a slight increase in complaints from the previous 6 months (5%); most significant increases in the...

FCA publishes money mule prevention review

FCA has published the findings from its views of the adequacy of PSP systems and controls against money mule activity. As now seems to be standard, it found that some firms are using innovative solutions such as facial...

Lords continue to battle on FTP fraud

The ping pong between the Houses on the scope of the proposed failure to prevent fraud offence continues. In the debate on 18 October, the Government continued to refuse to give way on its belief that it is...

FCA updates on skilled persons reports

FCA has published the numbers of skilled persons reports commissioned in the first two quarters of 2023: From April to June it commissioned 11 reports, of which 4 related to retail investments and 3 to wholesale...

Government updates on Swiss FTA

The Department for Business and Trade has provided an update on negotiations towards an enhanced Free Trade Agreement between the UK and Switzerland. The second round of talks is now complete and a third round is...

JROC welcomes OBL data collection frameworks

The Joint Regulatory Oversight Committee has welcomed the publication of two data collection frameworks by Open Banking Limited, one on levelling up availability and performance and the other on mitigating the risks of...

“Sexism in the City” evidence published

The Parliamentary Committee looking into “Sexism in the City” has published 46 pieces of written evidence it received. The evidence from FCA highlighted: more diverse and inclusive firms can support better...

PRA speaks on bank failures

Sam Woods spoke at Mansion House on prudential regulation and supervision in the particular context of bank failures – looking specifically at SVB and Credit Suisse.  He said that there is much to be done to...

FCA decides to fine and ban Jes Staley

FCA has decided to fine former Barclays CEO Jes Staley £1.8m and ban him from holding any senior management or significant influence function, after finding that, while he was CEO of Barclays, he had recklessly failed...

FPC updates on stability risks

The Financial Policy Committee’s summary of the financial stability risks following its October review notes: that more persistent inflation, higher interest rates and geopolitical tensions continue to make the...

SFO investigates funeral plan provider

SFO has written to authorised firms asking for information to help its criminal investigation into suspected fraud by a pre-paid funeral planner, Safe Hands Plans Limited and its parent company. Nearly 50,000 plan...

PRA publishes Occasional Consultation

PRA’s latest Occasional Consultation consults on: changes to the Depositor Protection Part of the PRA Rulebook to make it easier for the FSCS to make electronic payments to eligible depositors of insolvent deposit...

FCA censures LCF over fin proms

FCA has censured London Capital & Finance for issuing misleading financial promotions about minibonds to retail investors. The promotions made the minibonds look a more attractive investment than they were and...

FCA updates crypto application stats

FCA has updated the statistics on applications for registration by crypto firms, and its feedback on good and poor applications.  As at 1 October, it had received 326 applications since registration began in January...

FS Team wins Compliance Register Awards

We were thrilled to come away from this year’s Compliance Register Platinum Awards with two victories – winning the Best Law Firm – Regulatory Advice, and Best Regulatory Lawyer categories – and...

Where next for Consumer Duty?

Following our last FIN Live, we’ve written an article for Compliance Monitor on next steps for firms in relation to Consumer Duty compliance, and FCA’s expectations.  Read it here!

FCA notifies of changed Form A

As part of FCA’s overall update of authorisation application forms it is now formally launching Form A and has started contacting firms to tell them how they can access it to take part in public testing. It plans...

FCA publishes CRA undertaking

FCA has published an undertaking from Wirex Limited, in respect of unclear terms in the firm’s e-money contract, which FCA obtained using powers under the Consumer Rights Act. FCA was concerned about terms: that...