The FCA has published summary grounds of intervention in support of its application to intervene in the appeals relating to motor dealer-broker commissions. The FCA wants to intervene in writing and for up to an hour...
Author - Emma Radmore
Emma Radmore
FCA highlights simplification as means of supporting growth
The FCA’s letter in response to the Prime Minister setting out how the FCA wants to collaborate with the Government to encourage growth highlights the work the FCA has already done in the wholesale markets to...
Reminder: new DBS check requirement for controllers
We reported in December on the upcoming changes to FCA’s processes to require would be controllers of authorised or registered firms to have DBS checks, conducted within the 6 months before the application...
PSR publishes new strategy
The PSR has published its strategy for the next 2 years. It is now mid-way through a 5 year strategy, and has made strong progress in delivering positive change. It now needs to: complete work already underway...
PRA speaks on stress testing and launches LIST 2025
The PRA has launched its life insurance stress test for 2025. The exercise will: assess sector and firm resilience to severe but plausible adverse scenarios; strengthen market understanding and discipline; and improve...
ASA upholds complaint against investment training programme
The ASA has upheld a complaint against Zimran Ltd t/a Prosperi Academy. Prosperi Academy is an app offering financial investment training courses. The ad showed an individual’s bank account balance increasing in...
Government responds on governance of AI
The Government response to recommendations of a commons committee on governance of AI agrees that AI-specific legislation is needed and that it will consult on legislation that will apply to the still small number of...
Government updates on UK-China financial services cooperation
Following the latest meeting between the Chancellor and the Chinese Vice Premier, the Government has confirmed its agreement with China to improve cooperation and capital market connectivity between the countries. Many...
OFSI and OFAC sign sanctions MoU
OFSI and OFAC have entered into a MoU (signed in October 2024) to help exchange of information and cooperation between the two bodies in administering and enforcing financial sanctions. The MoU sets out the desire for...
Ring fencing changes regulations made
Changes to the ring-fencing regime will take effect in February and will implement changes to improve how the regime works. The changes both resolve unintended consequences of the current law, provide greater...
Designated Activities enforcement Regs take effect
The Regulations amending FSMA to give the FCA necessary supervision and enforcement powers in respect of the new Designated Activities have been made and take effect on 14 January. The new powers apply in respect of the...
FCA looks at bias in natural language processing
The FCA has published a research note that looks at bias in the specific context of word embeddings. Word embeddings are used by many natural language processing applications and as an alternative to large language...
Treasury Committee asks whether LISA still fit for purpose
The Treasury Committee is asking for evidence on whether the LISA is still an appropriate financial product. The product was introduced in 2016, and has as its main benefit enabling under 40s to contribute up to £4,000...
1 crypto registration approved last month
The FCA has updated its statistics on applications by crypto firms for registration under the MLRs. The latest stats show that 1 firm succeeded in becoming registered last month, while 2 applications were withdrawn...
UK designates extreme right wing group under sanctions legislation
The Government has designated “Blood and Honour” (and any aliases it uses) under the sanctions regime, imposing a full asset freeze on it with effect from 8 January. It says it has reasonable grounds to...
Motor finance appeals listed for April 2025
The Supreme Court hearings on the Hopcraft, Wrench and Johnson motor finance cases have been listed for 1-3 April 2025, although it is possible this may change.
FCA hints at P2P sector review
The FCA’s response to the Complaints Commissioner report in relation to a complaint about a P2P firm suggests it may be considering a more detailed review of the sector. The complainant had alleged that the FCA...
Court refuses JR application on mis-advised SIPP investment
The High Court has refused an application for judicial review of the FSCS’s refusal to reconsider a compensation determination in respect of three investors who lost money after transferring funds from their...
FCA asks Collateral investors to come forward for an apology
The FCA has apologised to people who invested in peer-to-peer firm Collateral, whose directors fraudulently changed the firm’s details on the FCA’s interim permission register to make it look like it had...
FCA and BoE update MoU
The BoE and FCA have updated their Memorandum of Understanding, which they use to co-ordinate and co-operate in carrying out supervision of FMIs.
FCA consults on CCI framework
The FCA is consulting on how it plans to build the new UK regulatory framework for Consumer Composite Investments, brought in to replace the EU PRIIPs concept. As we’ve previously reported, legislation creates a...
FCA charges former WealthTek partner
The FCA has brought criminal charges against John Dance, the principal partner at WealthTek LLP, in relation to 9 criminal offences, including multiple counts of fraud and money laundering. WealthTek, then known as...
FCA confirms pause on non-DCA complaints
The FCA has confirmed new temporary rules for handling motor finance non-DCA commission complaints, that broadly mirror those already in place for DCA commission related complaints. Firms will not have to provide a...
Green Finance Institute sets new taxonomy
The Green Finance Institute’s Land, Nature and Adapted Systems Advisory Group has published advice with a taxonomy for mobilising adaptation and resilience investment in the UK. Its report says that in the absence...
ShareAction writes to banks on sustainable finance
ShareAction has written to the CEOs of the 20 largest banks in Europe, urging them to set targets based in science to show how they are funding sectors that are crucial to net-zero transition. The charity has previously...
FOS updates on motor finance complaints
The FOS has updated its website to reflect the High Court judgment on DCAs that went in FOS’ favour. It says it is carefully considering what the judgment means for other similar cases in its current workload. The...
ASA rules on Lloyds ads green claims
The ASA has published its ruling in relation to 4 challenges brought in relation to a poster and three paid-for LinkedIn posts from Lloyds. It upheld 1 of the challenges only: in relation to the poster, this showed a...
FCA publishes markets supervision letters
The FCA has published a further series of portfolio supervision letters. They are addressed to: data reporting services providers; custody and fund services providers; contracts for differences providers; trading...
FOS updates on reports involving Consumer Duty
The FOS has published information on how the Consumer Duty relates to the complaints it looks at. It notes that the CD is not relevant to all complaints but may be a relevant consideration in complaints about things...
Regulators consult on operational incident and third party reporting
The FCA has published a consultation paper on proposals to require firms to report operational incidents and their material third party arrangements. The requirements will apply to authorised firms and PSPs as well as...
Treasury kickstarts financial inclusion strategy
Several large financial institutions including Lloyds Banking Group, Aviva and Experian as well as consumer bodies are forming a new committee which will feed in to the Government’s development of next...
FCA updates on business loan guarantee super-complaint
The FCA has collected data from lender firms as a follow up to the super-complaint from the Federation of Small Businesses about the use of personal guarantees for business loans to SMEs. The complaint had noted that...
FCA highlights Consumer Duty focus areas
The FCA has set out its priorities under the Consumer Duty for the rest of 2024 and 2025. These are: embedding the Duty and raising standards: within this priority, the FCA wants to understand how firms are improving...
FCA updates perimeter report
The FCA has updated its Perimeter Report. The report highlights the FCA’s remit and powers, including the new Designated Activities Regime, and then lists the key areas of harm linked to the perimeter and some key...
FCA speaks on sustainable investment products
Sacha Sadan, the FCA’s director of sustainable finance, has spoken on the impact of the sustainable investment product regime. He noted that the FCA’s Financial Lives survey had shown that 81% of adults...
FCA quarterly consultation includes PEMC limit increase
The FCA’s latest quarterly consultation includes proposals to: clarify some consumer credit product PSD reporting; increase the current £100 medical condition premium trigger that means firms must signpost...
ABI finds diversity improvements
The ABI has found the insurance and long-term savings industry is making progress towards better diversity, but that further development is hindered by a reduction in apprenticeship offerings across the sector.
Lords Committee publishes FCA enforcement position letter
The House of Lords Financial Services Regulation Committee has published a letter from Nikhil Rathi answering some questions the Committee has asked following the FCA’s appearance before them. The letter mainly...
CMA writes to Monzo on Retail Banking Order breaches
The CMA has found Monzo in breach of several parts of the RBO. Specifically, the bank did not: accurately publish the results of the required service quality surveys; publish information on the “monthly maximum...
FCA fines and bans another pensions adviser
The FCA has fined Philip Pryke nearly £1.4m and banned him for failings as a director, compliance officer and adviser at C&I, in relation to defined benefit pension scheme transfer advice during a 4 year period...
FCA scales back enforcement proposals – but still wants to go ahead
The FCA has published a second consultation paper on its proposals for increasing transparency in its enforcement process. It has gone ahead with the consultation partly to help the ongoing parliamentary scrutiny of its...
FOS notes huge increase in complaints
The latest figures from the FOS show complaints have increased by over 50%, with record increases in complaints about frauds and scams, current accounts and credit cards. The FOS also noted in particular an increasing...
FCA consults on MiFID Org Reg transfer to Handbook
The FCA is consulting on how it plans to transfer the firm-facing requirements of the MiFID Org Reg into its Handbook. It doesn’t intend to change the policy behind the Regulation, but some of the provisions will...
Parliamentary group reports on FCA shortcomings
The All Party Parliamentary Group on Investment Fraud and Fairer Financial Services has published its report following its call for evidence about the FCA. The report does not make happy reading for the FCA. The report...
Regulators consult on bonus restriction reform
The PRA and FCA are consulting on reducing the restrictions surrounding bonuses of senior bankers. As noted in the Mansion House speech, the current UK practice makes it an outlier and may be damaging competition and...
Government updates on digital asset regulation
Tulip Siddiq, Economic Secretary, speaking at the Tokenisation Summit, outlined the government’s approach to DLT and its potential to revolutionise traditional markets. She noted that the Digital Securities...
PRIIPs disclosure change confirmed
The Regulations that take investment trusts outside the scope of the current PRIIPs disclosure requirement (current until the PRIIPs regime is repealed in favour of the new Consumer Composite Investment regime) have...
FCA says life insurers could do better on bereavement handling
The FCA has completed a multi-firm review of how life insurers handle bereaved customers. On the whole, it found they provide good service, but says they can improve on the time they take to settle claims – while...
FCA finalises 2022 decision notices on Barclays
The FCA has published the final notices against Barclays plc and Barclays Bank plc in relation to the bank’s failure to disclose certain arrangements with Qatari entities in 2008. The FCA had decided to impose a...
Tribunal disagrees with FCA on fine amount
The FCA had found Arian Financial LLP had breached Principles 2 and 3 in respect of failings in its financial crime prevention systems and controls in relation to business introduced by the now infamous “Solo...
FCA charges failed credit union directors with fraud
The FCA has brought charges against 3 former directors of the Dial-A-Cab Credit Union, now in administration. It alleges that committed the offence of fraud by abuse of position by transferring funds out of the credit...
FCA consults on wider extension to motor finance commission complaints handling
The FCA is consulting as promised on extending the time firms have to respond to motor finance complaints involving non-discretionary commissions. The FCA notes that firms are likely to receive high levels of complaints...
Treasury updates money laundering advisory
HM Treasury has updated its money laundering advisory notice in relation to high risk third countries. The update follows the FATF meeting on 25 October and reflects the list agreed (and which took effect) then.
FCA updates market cleanliness measures
The FCA has revised its methodology for its market cleanliness statistic, to make it more accurate. Going forwards it will be able to detect abnormal price movements that happen on the same day as an announcement, use a...
Committee publishes FCA enforcement interview evidence
The House of Lords Financial Services Regulation Committee has published the oral evidence from its session on 13 November in which it interviewed Ashley Alder and Nikhil Rathi about the FCA’s enforcement...
FSCS Outlook shows higher than forecast levy for 2025/6
The latest edition of the FSCS’s Outlook shows that its levy for the current year is unchanged, and it expects to pay similar amounts in compensation in 2025/6 as in the current year (that is, £367m). However, it...
FCA bans director after GBH conviction
The FCA has banned Ari Harris, the sole director of Reeds Motors Ltd, after he was convicted of inflicting grievous bodily harm without intent and deliberately failed to notify the FCA. He had been convicted in 2020 and...
Tribunal agrees with FCA decisions to ban but queries disgorgement calculation
The Upper Tribunal has backed the FCA’s decision to fine and ban Toni Fox-Bryant and David Price after discovering failings in their firm (CFP Management Limited) in relation to pension transfer business. The FCA...
FCA fines and bans individuals for reckless breach of requirements
The FCA has fined and banned two former partners of MedDen Financial Services LLP for recklessly withdrawing funds from their firm’s bank account for their own purposes the day after the FCA had imposed an asset...
Regulators receive “remit” letters
Following the Mansion House speech, HM Treasury has published several letters to regulators, setting out requests and clarifying their remit: to the FCA and PSR on payments regulation; to the BoE for the Prudential...
FCA reacts to Mansion House speech
The FCA has reacted to several announcements from the Mansion House speech. It has reiterated that it is committed to supporting growth and says it has fully embraced its secondary international competitiveness and...
FCA and FOS seek views on modernising the Redress System
The FCA and the FOS have released a Call for Input that seeks to modernise the current redress framework, which the regulators say works well for individual customer complaints but does not deal so well with cases where...
Treasury consults on Green Taxonomy
HM Treasury is consulting on the value case for a UK Green Taxonomy as part of the UK’s wider sustainable finance framework. The government wants to support investment into activities aligned with sustainability...
Government publishes National Payments Vision
The National Payments Vision sets out the government’s ambitions for the UK payments sector. The government is keen to build on the UK’s position as a global leader in payments and is looking to strengthen...
Treasury consults on captive insurance approach
HM Treasury is consulting on a possible new approach to captive insurance companies. The market for captive insurance is fast-growing and despite the UK’s world-leading insurance sector, few captives are...
FCA updates on Advice Guidance Boundary review
Following the Mansion House speech, the FCA has updated on the next steps in its Advice Guidance Boundary Review. It is going to focus first on pensions, and will consult in December on high-level proposals for targeted...
A new regulatory regime for ESG ratings providers
HM Treasury has published the outcome of its consultation on the new regulatory regime for ESG ratings providers and the draft legislation that will create it. The regime will be created through the RAO, and the...
Mansion House speech heralds 5 priority growth areas
The Chancellor’s first Mansion House speech stressed the importance of the financial services industry to the UK and highlighted 5 priority growth opportunities on which the Government will focus its strategy:...
PRA consults on ISPV framework reform
The PRA is consulting on changes to the regulatory framework for Insurance Special Purpose Vehicles. It plans to create a new accelerated pathway for applications and to make it easier for a wider range of current...
PRA publishes final Solvency II review papers
The PRA has finalised and published the final pieces of its rules and policy materials that will replace the Solvency II assimilated law with the new “Solvency UK” regime. The PRA is working to replace all...
Gibraltar transitional regime extended to 2025
The government has extended the transitional regime under which Gibraltar firms can operate in the UK. The transitional period was supposed to expire at the end of 2024, but the government has not yet made the rules for...
FCA holds call with market analysts on motor commission cases
The FCA held a call with market analysts just before it published its consultation on its proposal to expand the pause on dealing with complaints about commissions in the motor finance sector. Key points included: the...
Latest FCA operating metrics show no “red”
The FCA authorisations operating metrics for July to September 2024 show that 12 metrics are green, 4 are amber and none are red. The FCA determined 98.5% of applications across the board within the statutory deadline...
BoE and PRA update enforcement procedures
The BoE has updated its and the PRA’s statements of policy and procedures around enforcement in the light of the new powers given to the regulators under FSMA 2023. The new policies and procedures will be relevant...
FCA portfolio supervision letter to CRAs
The FCA has written a Dear CEO portfolio supervision letter to the credit rating agency sector. Its strategy continues to be driven by: addressing the inherent conflicts of interest with in the CRA business model; heavy...
FCA to consult on time extension for non-discretionary motor finance commission complaints
Following the Court of Appeal’s decision to allow appeals to the Supreme Court in relation to three cases of non-disclosure of non-discretionary commission for motor finance (we covered this in FIN here), the FCA...
Critical third party rules finalised – but no designations yet
The BoE, PRA and FCA have finalised the package of measures that will set: the approach that HM Treasury will take to designating entities as being critical to the UK financial sector, following advice from the...
Treasury publishes draft Designated Activities supervision regulations
The Treasury has published draft Regulations to give the FCA supervisory and enforcement powers over certain activities which are to become Designated Activities for the purposes of FSMA following the changes introduced...
FCA improves enforcement disclosure processes
The FCA has completed its review of its disclosure processes in enforcement cases following a recommendation from the Upper Tribunal. The FCA is required to disclose all documents it relies on to build its case and any...
Insurance broker fined and banned for misuse of insurer funds
The FCA has fined the sole manager of Inspire Insurance Services Ltd over £1.1m and banned him from the financial services industry. Leigh Mackey had sole management control of the construction sector insurance broker...
PSR writes to tech firms on fraud enabler data
The PSR has written to online, social media and tech firms, telling them of its upcoming report on firms which are most commonly reported as enabling contact between fraudsters and victims. The letter to the relevant...
FCA speaks on transition finance
Emily Shepperd, speaking at the UK Sustainable Investment and Finance Association Leadership Summit, spoke of the role the financial services sector can play in helping to plug the net zero gap. She spoke of the...
Failure to prevent fraud offence to take effect next September
The provisions of the Economic Crime and Corporate Transparency Act 2023 relating to the new offence of failure to prevent fraud that will apply to large companies will take effect from 1 September 2025. Off the back of...
OFSI updates sanctions FAQs
OFSI has updated its FAQs on financial sanctions. The main newly featured question addresses whether overseas subsidiaries of UK entities are expected to comply with UK sanctions – the answer being that the...
FCA updates crypto registration stats
The FCA’s monthly update of its statistics on applications for registration under the MLRs for cryptoasset firms shows that in the past month it has received 1 application, rejected 1, and 1 has been withdrawn. ...
Lords Committee publishes enforcement proposal views
The House of Lords Financial Services Regulation Committee, which took over from its predecessor in gathering evidence on the FCA’s controversial enforcement proposals has published several pieces of written...
FCA portfolio letter for SIPP operators
The latest in the current series of FCA portfolio supervision letters is aimed at the CEOs of SIPP operators. The FCA has recently completed its 2024 SIPP data request and will be using the information from it in its...
Treasury Committee calls for evidence on protecting cash
The Treasury Committee has opened a call for evidence to help it decide whether to legislate to require businesses to accept physical cash. It is asking for views generally, but particularly on issues such as: are there...
BoE speaks on AI and financial stability
Sarah Breedon spoke at a conference on the opportunities and challenges of emerging technologies in the financial ecosytem. She delved into the novel features of Generative AI and what it might mean for financial...
CoP takes wider effect
From 31 October, the expanded roll out of Confirmation of Payee now means that 99% of all transactions made through Faster Payments and CHAPs are within scope, as the PSR’s SD17 took effect. The initial grouping...
FCA welcomes Project Guardian tokenisation report
The FCA has welcomed the report on tokenisation in the asset management sector, published by “Project Guardian”, an international collaboration of industry and regulators led by the MAS. The report sets out...
Transition Plan Taskforce publishes final report
The Transition Plan Taskforce has finished its work and published its final report, which identifies key opportunities and challenges for global adoption of transition plans. Dame Amanda Blanc and Tulip Siddiq, Co...
Regulators confirm change in control assessment guideline update
The PRA and FCA have confirmed updates to their guidance on the prudential assessment of acquisitions and changes in control of regulated firms. The joint PRA/FCA supervisory statement, and the FCA’s Finalised...
PRA feeds back on CRR changes
The PRA has published feedback to its consultation on changes to certain parts of its rulebook in respect of: Disclosure and reporting in respect of various CRR requirements; changes to the Policyholder Protection Part...
FCA updates statement on motor finance judgment
The FCA has updated its website to make more prominently the comments made by Nikhil Rathi on the current state of the complaints pause in relation to DCAs and the possibility that it could now be expanded to other...
FCA bans more advisers over pension transfer advice
The FCA has banned two more individuals for pension advice transfer failings in respect of transferring out of defined benefit pension schemes, including the BSPS. It has also banned Steven Hodgson and Paul Adams from...
Alison Potter to become FCA and PSR decision-making chair
The FCA and PSR Boards have appointed Alison Potter as chair of the FCA Regulatory Decisions Committee and the PSR Enforcement Decisions Committee. She takes over from Tim Parkes with effect from 1 November.
Treasury publishes SME reviews as part of Budget
As part of the 2024 Budget, HM Treasury has published post-implementation reviews of the Small and Medium Sized Business (Finance Platform) Regulations 2015. These Regulations introduced a Bank Referral Scheme to...
FCA speaks on private market growth.. and motor finance
Nikhil Rathi, speaking at the Investment Association, spoke of the growth of private markets and the FCA’s support for initiatives that get companies the best options for financing. In an interesting segue, he...
TNFD publishes guidance on nature transition planning
The Taskforce on Nature-related Financial Disclosures has published a discussion paper containing draft guidance on nature transition planning for corporates and financial institutions when developing a transition plan...