NCA has issued an alert warning financial and other businesses that Russia is trying to procure UK sanctioned goods through intermediary countries, but using complex supply chains and routes. The UK, with the US, EU and...
Author - Emma Radmore
Emma Radmore
FCA confirms no action against Blackmore fin prom approvers
FCA has published a copy of its letter to the Treasury Select Committee confirming that it will not be taking action against either of the two firms that approved promotions for the collapsed Blackmore Bond plc’s...
PSR publishes cycle 2 APP fraud reporting guidance
PSR has published its finalised reporting guidance for firms required to provide it with APP scam data, the second batch of which will cover the calendar year 2023. This cycle will be a 12 month report, rather than the...
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...
IRSG highlights importance of transparent beneficial ownership
The International Regulatory Strategy group has published a report which makes 7 recommendations around how a globally transparent and effective beneficial ownership regime can be achieved. The recommendations focus on...
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...
Regulators consult on critical third party supervision
BoE, PRA and FCA are consulting on how to oversee the resilience of critical third party service providers, where those providers service UK regulated firms and FMIs. The debates leading up to the introduction of the...
Financial Stability report shows same challenges remain
The December 2023 Financial Stability Report shows little change from the previous version. Conditions remain challenging and households and businesses continue to face higher borrowing costs. However, the banking...
PRA and FCA confirm remuneration changes for small firms
PRA and FCA have published feedback on their consultations on enhancing proportionality in respect of the remuneration rules in respect of dual-regulated and small firms. While the regulators needed to feed back...
PSR speaks on preparing for APP scam reimbursement
Chris Hemsley has spoken of the preparatory work that both sending and receiving PSPs should be doing ahead of the mandatory reimbursement requirement for APP frauds coming into effect next year. The new rules will mean...
Treasury updates AML list of high-risk countries
Treasury has made the second set of amendments this year to its list of high-risk countries for AML/CTF purposes. The updated schedule was made on 4 December and took effect on 5 December. The changes mean that...
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 updates on CD expectations for fractional share sales
Treasury has recently announced that fractional share contracts should be eligible as ISA investments – which will mean a change to the longstanding HMRC position. FCA has taken the opportunity to remind firms...
FCA consults on reforming commodity derivatives regulation
FCA is consulting on proposed changes to: position limits and exemptions; position management controls; reporting; and the ancillary activities test in relation to commodity derivatives. FSMA 2023 has given FCA...
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...
FCA proposes capital retention requirements for personal investment firms
FCA is consulting on a new requirement that would mean personal investment firms subject to IPRU(INV) 13 would need to calculate potential redress liabilities towards customers and hold capital against them. It remains...
FCA confirms sustainability disclosure and labelling regime
FCA has confirmed new rules that should give investors greater confidence in sustainability-related claims about investments. The package consists of: an anti-greenwashing rule, effective from 31 May 2024 that will...
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...
UK Finance reports on impact of AI in financial services
UK Finance has published a report that looks at the uses of AI in the financial sector. The report covers: how and where AI is being deployed; where there is promise for the future; how to make more of opportunities;...
Autumn Statement: financial regulatory issues
The Government’s Autumn Statement covered several new and ongoing actions relevant to the financial services sector, including: legislation to replace retained EU, mainly in the markets space (securitisations...
BBRS to continue into 2024
BBRS and its participating banks have agreed the service will continue into 2024 – with no new set date for scheme closure.
Government publishes PRIIPs replacement legislation
The Government has published draft legislation that will replace the PRIIPs Regulation and create a new UK retail disclosure framework for “consumer composite investments” (CCIs). The initiative is part of...
Treasury feeds back on Digital Securities Sandbox
Treasury has published the outcome to the consultation on a digital securities sandbox. The sandbox will be operated by BoE and FCA and is intended to help facilitate the use of digital asset technology in UK financial...
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...
FCA calls for improvement in fund manager ESG principles
FCA has carried out a review as a follow up to its Dear Chair letter of July 2021 to authorised fund managers. It found that most firms have tried to comply with FCA’s expectations on design, delivery and...
FCA updates on secondary credit broker expectations
FCA has a new page on its website for secondary credit brokers, on which it sets out what it expects from applicants, including the difference between limited permission and full permission firms. The page links to...
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...
SAR reporter booklet highlights recent cases
The November edition of NCA’s SARs Reporter Booklet summarises the outcome of several DAMLs which led to further enforcement action for fraud, money laundering and in raising safeguarding concerns about a...
FCA secures conviction of mortgage fraud broker
Larry Barreto, who had already pleaded guilty to 2 offences of arranging and advising on regulated mortgages without FCA authorisation, has been found guilty of 11 charges of fraud by false representation. For a period...
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...
Tribunal makes limited costs order but criticises FCA and the law
The Upper Tribunal has published its judgment on the application for costs orders from Thomas Seiler and Louise Whitestone in relation to the Decision Notices issued by FCA as part of the action it took against JBI, and...
Supreme Court confirms postponement of limitation period for deliberate concealment of PPI commission payment
The Supreme Court judgment in Canada Square Operations Ltd v Potter supported the decisions of the County Court, High Court and Court of Appeal to hold that s32 Limitation Act 1980 applied to postpone the start of the...
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...
FCA updates guidance on consumer investment firm applications
FCA has created a new page on its website aimed at consumer investment firms applying for authorisation. The page: explains what FCA means by a consumer investment firm; explains the threshold conditions and process for...
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...
FCA portfolio letter to wealth managers and stockbrokers
FCA has published its Dear CEO letter to wealth management and stockbroker firms setting out its supervisory priorities and expectations for the sector. The letter focuses on financial crime prevention and Consumer Duty...
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 calls for better treatment of fraud victims
FCA has carried out a review of firms’ fraud controls and complaints handling, and is disappointed with the way some firms support fraud victims. While it did find some examples of good practice, it found many...
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...
PSR releases first APP scam performance figures
PSR has released figures showing how the largest 14 banking groups performed during 2022 in tackling APP scams and reimbursing victims. The data covers 95% of payments made via Faster Payments. PSR had collected data...
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 joins global digital innovation project
FCA has joined regulators from Singapore, Japan and Switzerland in “Project Guardian“, which will expose fund and asset tokenisation use cases and DeFi. Sarah Pritchard said the UK’s asset management...
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...
FCA takes action on BNPL terms as product use grows
FCA has taken action using its powers under the CRA against potentially unfair terms in unregulated BNPL contracts issued by PayPal and QVC. It said it is particularly important to make sure consumers have the right...
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 confirms next steps in crypto regulation
Treasury has published its response to its consultation and call for evidence on the future regulatory regime for crypto assets. Broadly, it will proceed with the proposals it consulted on, and will: develop a...
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...
FCA to run Consumer Duty webinar
FCA will run a webinar on 6 December on the next steps in its supervision of firms’ compliance with the Consumer Duty.
Treasury responds on Edinburgh Reforms progress
Treasury has responded to a request from the Treasury Committee for an update on delivering the Edinburgh Reforms. It notes: reform of the ring-fencing regime: this is in progress with draft legislation being published...
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...
Lords gives way on FTP… and Bill gets Royal Assent
The saga of the debate on scope of the proposed new failure to prevent fraud offence. The Commons (Kevin Hollinrake, Under-Secretary of State for Business and Trade) urged both houses not to “risk the safe...
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...
Wolfsberg Group updates payment transparency standards
The Wolfsberg Group has replaced its Payment Transparency Standards originally drafted in 2017 with a new set of standards designed to reflect the operational and financial crime risks posed by innovation in payment...
Parliament launches inquiry into regulator independence and accountability
The Industry and Regulators Committee has published a call for evidence seeing views on the work of the UK regulators, looking at their relationship with Government and how they are held to account. The inquiry covers...
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...
JMLSG finalises discrepancy reporting changes
JMLSG has published the final version of its changes to Chapter 5 of Part 1 in relation to discrepancy reporting, and has submitted them to Treasury for approval.
FCA restricts Modulr from onboarding new agents
FCA has published a restriction on Modulr, an authorised EMI, preventing it from onboarding any new agent or distributor without FCA’s consent. Existing agents and distributors may continue to distribute and...
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...
ABI urges insurers not to get left behind on DEI
ABI has published an update on progress against its three priorities of Attract, Grow and Advance set out in its DEI blueprint published this time last year. It has seen an increase in firms that now collect data on...
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...
Judicial review on ATM rate provision dismissed
PSR is pleased that the High Court has dismissed an application by NoteMachine for judicial review of PSR’s decision not to intervene in a dispute concerning concerns NoteMachine had over the fees it received for...
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 stops firm from approving crypto promotions
On 10 October, FCA imposed restrictions on rebuildingsociety.com Ltd to stop it from approving crypto financial promotions. The firm, which is authorised to operate an electronic system in relation to lending, was also...
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...
ASA hands technical crypto claims over to FCA
ASA has confirmed that it will no longer regulate “technical” claims in ads in non-broadcast media for cryptoassets. It notes, though that FCA has taken over regulation only of ads for qualifying (ie...
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...
Diversity and Inclusion are regulatory concerns
See our detailed analysis on the background to and proposals in PRA and FCA’s current consultations on D&I in the financial marketplace.
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...
LSB joins UK Regulators’ Network
LSB has joined the existing network of UK regulators which, from the financial services side, already includes FCA and PSR.
PRA to run dynamic insurance stress test in 2025
PRA has announced a change in approach for its 2025 insurance stress tests. The objectives of the exercise will, as ever, be to assess solvency, liquidity and risk management against specific adverse scenarios, but in...
GFIN Greenwashing TechSprint winners announced
FCA, as host of the first Global Financial Innovation Network Greenwashing TechSprint, has announced the firms presenting the best potential solutions for tackling the problem of greenwashing in financial services. ...