The FCA is pleased at the effect of its rules protecting access to cash. It says that as a result of an assessment LINK has carried out: 15 communities will get a banking hub, when they had not previously been assessed...
Author - Emma Radmore
Emma Radmore
FCA reports on cash savings progress and price and value outcomes
The FCA has published its latest analysis of fair value in the cash savings markets. Key highlights are: average interest on easy access savings accounts rose from 1.66% last July to 2.11% in June 2024; while firms were...
FCA speaks on fraud prevention
Andrea Bowe of the FCA has spoken on what the FCA is doing to help reduce financial crime and its key role in the implementation of the Government’s Economic Crime Plan. She spoke of the equal importance of...
UK/US financial regulatory working group meets
The latest meeting of the UK-US Financial Regulatory Working Group took place in Washington, D.C and discussed co-operation in matters including digital finance and operational resilience, sustainable finance and...
FCA urges innovative approach to pensions chats
The FCA has published research showing that it is hard to get people to engage with their pensions through email alone, even with careful thought about email headings and behavioural messaging. A trial attempting to...
PRA publishes findings of internal audit review
The PRA asked the internal audit function of a selection of non-systemic UK deposit takers to review their Credit Risk Management Framework. 33 firms participated and results showed the most common finding was yellow...
PRA to review leverage ratio thresholds
The PRA is looking at the leverage ratio requirement thresholds and is offering firms a modification by consent in certain circumstances while it finishes its review. Firms can apply for the modification if they...
FCA brings charges for illegal crypto ATM network
The FCA has charged Olumide Osunkoya with unlawfully running multiple crypto ATMs without registration under the MLRs. The ATMs in question processed £2.6m in crypto transactions during a period of just under 2 years...
FCA allows temporary flexibility against sustainability “name and shame”
The FCA is allowing firms temporary flexibility to comply with its “naming and shaming” rules in respect of sustainability disclosures. The rules take effect from 2 December and firms should be taking all...
CMA says Open Banking Roadmap complete
The CMA has updated its website on Open Banking to confirm that all the “CMA9” banking providers required to complete the Open Banking Roadmap have now completed the implementation phase. AIB and Bank of...
FCA takes action for reckless pension transfer model
The FCA has published decisions against 3 individuals and fined and banned a fourth in relation to a pension transfer advice model that the FCA consider put guaranteed retirement benefits at risk. Its action relates to...
FCA consults on “reasonable grounds” for delaying payments
The FCA is consulting on updating its guidance in its “approach” document for payment services and e-money firms to support proposed amendments to the PSRs that will allow PSPs to delay making payment...
PSR publishes Annual Report
The PSR annual report for 2023/24 unsurprisingly highlights the regulator’s activities in relation to APP fraud and open banking. It notes: publication of the first set of APP fraud statistics; steps to...
FCA bans individual after criminal conviction
The FCA has banned an individual from performing regulated activities after he was convicted of involvement in a criminal conspiracy to commit fraud by false representation. Luke Williams was involved in the activities...
FCA publishes enforcement data
As part of the Annual Report for the 2023/24 year, the FCA has published data on how it has used its enforcement powers during the year. Key data includes: 98% of cases were opened against firms, as opposed to...
FCA updates on whistleblower reports
The FCA has reported on whistleblowing disclosures made to it in the year to 31 March 2024 under the Prescribed Persons Regulations 2017. During the year it received 1,125 new reports (having seen a gradual increase...
PSR confirms CHAPS APP reimbursement direction
Following consultation, the PSR has published a tracked and final version Specific Direction 21 which now applies to all PSPs participating in CHAPS that provide relevant accounts – which are defined as all...
FCA wants improvement in AR supervision
The FCA has reviewed how principals are supervising their Appointed Representatives and has concluded that supervision has improved, but that firms could do more. It saw many principals keeping clear records of how they...
FCA publishes Annual Report
The FCA Annual Report and Accounts shows how the FCA has improved its operating statistics for authorisations over the past year. It now meets its statutory deadlines for determining applications in 98% of cases. Other...
FCA reminds firms of LIBOR deadline
The FCA has reminded firms that the 1-,3- and 6-month synthetic USD LIBOR settings will cease permanently after their final publication on 30 September.
FCA speaks on approach to tackling financial crime
Sarah Pritchard has spoken on the importance of working together and sharing intelligence as a key part of tackling financial crime. She spoke of using a targeted approach to spot outliers and issues. She discussed how...
PSR proposes reduction in APP reimbursement max
The PSR is consulting urgently on a proposal to lower the maximum level of reimbursement for Faster Payments APP scam claims to £85,000. This is a significant reduction, bringing it down from the previously agreed...
FOS highlights record fraud and scam complaints
We previously reported on the last quarter’s record complaints figures to the FOS. It has followed up this data with details of fraud and scam complaints, which are at their highest ever quarterly level. In the...
FCA seeks views on EMIR reporting
The FCA is asking for views on its guidance for UK Trade Repositories on guidance on the changes to the derivative reporting framework under EMIR. Most of the new requirements take effect from 30 September, and the new...
FCA releases latest skilled persons stats
In the quarter to end March 2024, the FCA commissioned 27 skilled persons reports. 10 related to retail investments, 7 to wholesale financial markets and 5 to retail banking and payments. 12 related to controls and risk...
Force majeure and “reasonable endeavours”
Read our article on the recent Supreme Court findings on what “reasonable endeavours” should mean in the context of force majeure clauses.
FOS publishes quarterly data
FOS has published complaints data covering Q1 2024/5 (April – June 2024). Highlights include: over 76,000 new complaints – an increase of 70% from the same period last year; credit cards were the most...
AI in the retail sector
Listen to some of our employment partners talking about the use of AI and its impact on staffing.
FCA to investigate pure protection market
The FCA is concerned that competition is not working well in the pure protection sector and is to start a market study into how pure protection products are sold. These products are mainly sold through intermediaries...
Tribunal backs FCA on Saranac/Kalaris decision
The Upper Tribunal has made its decision on the reference to it by Saranac Partners Limited in respect of the FCA’s decision not to approve its application for Thomas Kalaris to be its CEO and an executive...
CMA writes to banks on Retail Banking Order breaches
The CMA has published details of breaches of the Retail Banking Market Investigation Order by both Barclays and Santander. Santander had failed to keep information published through Open Banking up to date and in some...
FCA publishes GI value measures data
The FCA has published its general insurance value measures data for 2023 – the second full year of reporting. The latest data continues to highlight products that do not appear to be delivering fair value in the...
FCA tells insurers to do better on proving value and customer outcomes
The FCA has published a thematic review that looked at governance and oversight of insurance products. It has found that the industry has made progress in improving how products are designed, managed, reviewed and...
FCA adds sustainability labels to website guidance
The FCA has updated its website page on the sustainability disclosure and labelling regime to include downloadable labels for firms to use.
PSR responds on VRP expansion
The PSR has followed up on its December call for views on how it could support expansion of Variable Recurring Payments to regulated financial and utilities services and to local and central government. Generally, there...
FCA fines auditor for failing to report suspected fraud
The FCA has fined PwC £15m for failing to report suspicions of fraud that arose during its 2016 audit into London Capital & Finance. As PwC had been carrying out the audit, it had been faced with aggression from a...
CMA updates banking satisfaction surveys
The results of the latest banking satisfaction surveys released by the CMA show: Monzo and Starling are the top of both personal and business current account providers; and RBS and the Co-operative Bank scoring badly on...
FCA censures auditor for client asset report failings
The FCA has censured audit firm Macintyre Hudson LLP, which over a 4 year period did not prepare 4 client asset reports relating to 2 firms to the required standard. The reports did not report 25 rule breaches, which...
NCA publishes new SARs reporter booklet
The NCA has published a new version of its SARs Reporter Booklet. The latest version focuses on DAMLs that were refused for further investigation and includes case studies including a request for a DAML to return funds...
Companies House plans ECCTA actions
The latest Companies House business plan includes details of its plans relating to ECCTA compliance over the next year. These include: prioritising removing inaccurate information on registers, including querying and...
UK Finance responds on MLRs
The UK Finance response to the Treasury consultation on improving the effectiveness of the MLRs notes that there are some parts of the existing regulations that are unhelpful in that they: drive tick box compliance; or...
FCA consults on workplace pensions value for money
The FCA, DWP and the Pensions Regulator are planning a joint framework that pension providers and adviser could use to see more transparently how schemes are performing. They propose to compare schemes based on public...
FCA updates on operating metrics
The FCA quarterly authorisations metrics for the quarter to June 2024 shows 12 green, 4 amber and 1 red metric. The FCA says 98% of all applications were determined within the statutory deadline and that the red metric...
Asset manager to pay €250m to investors in high risk investments
The FCA has announced that H2O AM LLP is to pay €250m to investors who have been unable to access their funds for 4 years after the firm failed to carry out proper due diligence on certain introduced investments...
Investment Association reports on climate and nature policy
The Investment Association has published its latest “Financing Transition” report, which outlines its approach to climate change and nature-related policy. Key commitments include: supporting credit...
Unauthorised mortgage broker to pay £4m
The FCA has secured an order of £4m in the High Court against two firms under the directorship of one individual, which respectively arranged mortgages and bought properties and rented them back to the sellers. Neither...
FSR Committee restarts and reopens inquiries
The House of Lords has reappointed the Financial Services Regulation Committee which had originally been created in 2024. The reappointed Committee will now continue the inquiries that were ongoing before the election...
FCA refuses application on fit and proper concerns
The FCA has published a decision notice setting out its intention to refuse to authorise an applicant firm Ancean Limited, whose sole director and proposed sole approved person would be an individual who was previously...
PSR publishes APP scams performance report
The PSR has published the APP scams performance report for 2023. Highlights from the report show: over 250,000 reports were made in 2023, with scams totalling over £340m; reimbursement rates have increased while fraud...
The challenges facing low-value data breach claims
We have written an article on the case of Farley v Paymaster, which looks at how the courts are increasingly viewing exaggerated data breach claims brought for alleged distress.
Law Commission publishes draft “third category” proposals
The Law Commission has published a supplemental report on digital assets as personal property, and a draft Bill to confirm the existence of a third category of personal property into which certain digital and other...
BoE and PRA publish whistleblowing figures
The BoE and PRA have published their annual report on whistleblowing in the last year (to end March 2024). During that period they received 240 disclosures of which 228 could properly be categorised as protected...
FCA to extend DCA complaint “pause” period
The FCA plans to extend the “pause” to the time firms have to respond to complaints about motor finance involving discretionary commission arrangements., to 4 December 2025. It says it has taken longer than...
FCA reports on secondary objective progress
The FCA has published the required metrics on the success of its secondary international competitiveness and growth objective. It has split the metrics into the themes of: authorisations and operational efficiency:...
NCA and banks launch data sharing project
The NCA has announced a partnership with 7 banks under which the banks will provide the NCA with account data that could suggest criminality. The banks and investigators will analyse the data to help inform both the...
FCA seeks views on insurance regulation
The FCA has published a discussion paper on the regulation of commercial and bespoke insurance business. It is seeking views on whether its current rules for commercial insurance products strike the right balance...
Court clarifies extent of POCA “adequate consideration” defence
The Court of Appeal has overturned a High Court ruling on the ongoing effects of using the “adequate consideration” defence when acquiring the proceeds of crime. The World Uyghur Congress had challenged a...
PRA publishes PS on approach to rule permissions and waivers
The PRA has published the final version of its SoP on its approach to rule permissions and waivers. It received 4 responses to its consultation, but has not made any change to the consultation draft following these...
CMA takes action under Retail Banking Order
The CMA has taken action against 4 banks for breach of the requirements of the Retail Banking Market Investigation Order 2017. HSBC, Lloyds, TSB and AIB failed to make correct data on their products and services...
FCA fines E-money firm £3.5m
The FCA has fined CB Payments Limited, an EMI which is part of the Coinbase Group, £3.5m for repeated breach of a requirement restricting it from offering services to high risk customers. The firm does not itself...
UK Finance says one third of UK adults use mobile contactless payments
UK Finance’s Payment Markets Report for 2023 shows an increase in payments of 5%, with 38% of all payments being contactless, and with one third of UK adults using mobile contactless payments at least once a month...
PSR finalises exemptions and extensions guidance
The PSR has finalised its guidance on how it makes decisions on whether to grant extensions and exemptions to specific directions or requirements. Among the things the PSR will consider when it receives a request are:...
Regulators update on BSPS actions
The FCA, FOS and FSCS have published a report looking at the actions taken and results from the BSPS Redress Scheme exercise, as it comes to an end. Overall: £8.7m has been paid out by firms or the FSCS (significantly...
FOS publishes ADR annual activity report
The FOS has published the annual figures for reports it received in the year to 8 July, It notes the figures don’t include complaints brought by businesses but may include some brought by charities and trustees...
Bond administrator enters liquidation
The FCA has announced the liquidation of London Court Limited, a bond administrator and ISA manager. The firm had been restricted from doing any new business since August 2023 after the FCA determined that the firm had...
FCA updates whistleblowing data
The latest whistleblowing data from the FCA, covering the quarter to end June 2024, shows: 253 new reports received (fewer than the corresponding period last year and the last quarter), with nearly half of reports made...
Court considers “reasonable cause to suspect” for sanctions purposes
The High Court has considered what would be “reasonable cause” to suspect in the context of funds or economic resources being owned or controlled by a designated person for the purposes of the financial...
FRC announces Stewardship Code changes
The FRC has announced major revisions to the UK Stewardship Code. It is making 5 immediate changes and has committed to a wider review. The key changes: will remove the “context” reporting expectations...
Government responds on Special Resolution Regime enhancements
The Government has published its response following its consultation on enhancing the Special Resolution Regime and the Bank Resolution (Recapitalisation) Bill has now started its Parliamentary Passage. Respondents were...
BoE publishes Q2 Credit Conditions and Bank Liabilities Surveys
The BoE has published the results from its quarterly survey of banks and building societies looking at credit conditions in the quarter to the end of May 2024. As usual, the survey covers: secured and unsecured lending...
OFSI updates Human Rights sanctions guidance
OFSI has updated its guidance on the Global Human Rights Sanctions Regulations to include guidance on how designated persons are subject to the director disqualification regime.
PRA publishes Life Insurance Stress Test approach
The PRA has published a set of documents setting out its approach to the 2025 Life Insurance Stress Test. The test will apply to UK life insurers active in the bulk purchase annuity markets and will contain a core...
PRA updates on Solvency UK
Gareth Truran of the PRA has given a speech in light of the updated Matching Adjustment regime for insurers going live on 30 June. He said insurers now have all they need to use the Solvency UK reforms to support their...
FCA quarterly consultation plans criminal background checks
FCA’s most recent quarterly consultation includes proposals on: carrying on criminal background checks on owners and controllers at the authorisation gateway. The FCA currently conducts these checks using a risk...
SME banking 2002 undertaking report
The CMA has published the 2023 audit report into whether 8 UK banks are complying with undertakings they gave in 2002 not to bundle loans and accounts for SMEs. The 8 banks currently subject to the undertakings have...
CBI survey shows continuing sector growth
The CBI’s most recent quarterly survey shows that financial services business volumes continue to grow. Business volumes grew in Q2 2024 and are expected to rise at an even faster rate in the coming quarter. The...
BoE updates on data and analytics strategy
The BoE has provided an update on its data and analytics strategy, aimed at making it easy for everyone at the BoE to work with and analyse data which should lead to many benefits including more effective decision...
PRA publishes final rates for 2024/5
The PRA has published its feedback to the consultation on next year’s rates and the finally set rates. It received only 2 responses to its consultation and the new rules now take effect on 9 July.
PRA updates on skilled persons reports
The PRA commissioned 6 skilled persons reports in Q4 2023/24. 5 related to credit institutions and one to insurers, and all but one related to controls and risk management frameworks.
FCA updates crypto application stats
The FCA has updated its statistics on crypto applications. In the month to 1 July, it received 2 applications, determined none, but one was withdrawn.
DEI in financial services: can regulators shift the dial?
We have written an article for Compliance Monitor on the impact of the Sexism in the City report and the reaction of the financial regulators to it.
FCA makes final fees rules
The FCA has published its final fees and levies for 2024/25. It has made minor changes to the amounts it consulted on. One of the most contentious proposals had been that it would split the costs for its cryptoasset...
TFND updates guidance
The Taskforce on Nature-related Financial Disclosures has announced a significant increase in take up in adopting its standards, and has updated and published new guidance for several sectors. The updates include...
FATF adds 2 countries to high risk list
Outputs from the last FATF plenary meeting to take place under Singapore’s presidency included: adding Monaco and Venezuela to its list of jurisdictions subject to increased monitoring and removing Jamaica and...
FCA keeping trading apps under review
The FCA has carried out an online experiment involving over 9,000 consumers, involving a trading platform app that the FCA created. It wanted to test the effect of different digital engagement practices on trading...
Wolfsberg Group responds on MLR review
The Wolfsberg Group has responded to the Treasury consultation on improving the effectiveness of the MLRs. Among the key points in its detailed submission are: that an effective AML/CTF framework includes discontinuing...
FCA delays publication of PEP treatment review
The FCA had been due to publish the findings from its review of the treatment of PEPs by regulated firms at the end of June, as required by FSMA 2023. However, it does not think it appropriate to do so in the run up to...
Individual takes action against Revolut for APP fraud
Mr Larsson brought claims against Revolut, following payments it accepted that resulted from an APP fraud on Mr Larsson. Mr Larsson was a Revolut customer, but the payments in question were made by him from his account...
Court rejects application for JR review of FOS decision
The Court has dismissed an application made by Linear Investments Limited for judicial review of a FOS decision. The FOS had heard that a customer of Linear (Professor W) was an eligible complainant under its rules...
FCA updates on finfluencer trial
Following the FCA’s decision to charge 9 “finfluencers” in relation to promotions of an unauthorised FX trading scheme on social media, it has updated that three individuals have pleaded not guilty...
Labour manifesto proposes Regulatory Innovation Office
Part of Labour’s manifesto proposes a new Regulatory Innovation Office, which will bring together existing functions to help regulators better deal with the development of new technologies, specifically AI. It...
Green Party proposes mutual banks to drive decarbonisation investment
Of relevance to financial institutions in the Green Party manifesto are proposals to create regional mutual banks to drive investment in decarbonisation and local economic sustainability.
FCA bans individual for failing to disclose conviction
The FCA has banned Graham Lilley, formerly an authorised sole trader, from carrying on any regulated activity carried on by any person and has cancelled his permissions. It discovered that Mr Lilley had been convicted...
FCA clarifies open banking expectations relating to run off firms
The FCA has updated its information page on firms in the Contractual Run Off scenario following Brexit. It has clarified that ASPSPs are not obliged to provide CRO firms with access to payment accounts given that CRO...
FOS confirms proactively settled complaints to continue
The FOS has confirmed that the trial of the “proactive settlement” system that allows firms to offer to settle complaints before a full FOS investigation has worked well, and will continue. It has, though...
Conservative manifesto highlights fintechs
The Conservative Manifesto, published on 11 June, contains few surprises for financial regulation. It priorities: building on the various co-operation agreements it has already signed, including with the EU and...
FCA shares latest Mortgage Charter uptake data
The FCA has reported that there are now 49 signatories to the Mortgage Charter, and that the signatories represent about 90% of the mortgage market. The latest data suggests that well over 1m mortgages benefited from...
Regulators publish Wider Implications Framework Annual Report
The 2023/24 Wider Implications Framework Annual Report from the FCA, FOS, FSCS, TPR and MaPS notes that during the period the report covers, the new duty in FSMA 2023 on the FCA, FOS and FSCS to cooperate on issues that...