FIN.

Author - Emma Radmore

FSMB publishes onboarding standard

The Financial Markets Standards Board has published a draft standard which would apply to firms onboarding clients or reviewing client files for UK AML and KYC compliance. The standard would apply to FSMB members in all...

SFO speaks on faster case resolution

Nick Ephgrave, SFO Director, has spoken on SFO’s history and his plans for the future.  He wants to solve cases more quickly, and spoke of a number of tactics he plans to use. These include a more rigorous and...

OFSI updates guidance

OFSI has updated its guidance on financial sanctions and licensing to include detail on licensing principles and framework in the general guidance section of its main guidance, and to move its travel guidance to a...

High risk third country list update

Treasury has updated its website to reflect the list of high risk third countries for MLR purposes. The list now comes directly from FATF. Following FATF’s plenary meeting on 23 February, it has removed Barbados...

FCA issues supervisory notice under PSRs

FCA has published a First Supervisory Notice against an API (EPayPro), setting out its decision to very the firm’s authorisation so as to restrict it from charging a “compliance” or any other fee that...

FCA updates on interest-only mortgage work

FCA is working with an Industry Working Group of 12 mortgage lenders and administrators on a review of FCA’s current guidance on interest-only mortgages. There were under 1 million interest-only and part-and-part...

PRA confirms result of rule review process

PRA has published its feedback following its consultation on its how it reviews its rules. None of the 13 respondents raised any major concern but made some suggestions for improvement, largely around better engagement...

FLA launches accreditation service

FLA’s new Broker Accreditation (Asset Finance) Service will help brokers show they are compliant with FLA’s Business Finance Code and their regulatory obligations. It also says the accreditation, which...

Government defends Edinburgh Reform progress

The Government has responded to criticism from the Treasury Committee on how the Edinburgh Reforms are progressing. Following the Government’s report in December (a year after it announced the reforms) that it had...

FCA speaks to EU on global cooperation

Ashley Alder, FCA Chair, has spoken at the UK Mission to the EU on the importance of regulatory cooperation and open markets, and the relationship the UK now hopes to build with the EU under the 2023 MoU. He said that...

FCA secures fraud conviction

Guy Flintham has pleased guilty to fraud in relation to an investment scheme he operated. FCA brought the prosecution, for fraud by false representation and for carrying on regulated activities without authorisation by...

OFSI publishes ransomware guidance

OFSI has published financial sanctions guidance for ransomware. The guidance explains that the government uses the financial sanctions regime to target the ransomware threat actors who cause the highest harm to the UK...

Market Watch focuses on organised crime

The latest edition of FCA’s Market Watch looks at actions firms can take to mitigate the risks of being used by Organised Crime Groups. It says suspicious trading by members of OCGs forms a large proportion of the...

FCA intervenes in 10,000 ads in 2023

FCA has published its financial promotions data for the last quarter of 2023 and the entire past year. It has: caused over 10,000 promotions to be withdrawn or changed in 2023 (a 17% increase on the previous year);...

OFSI updates guidance

2024 will see OFSI move to digital guidance which it says will enhance accessibility and user experience. It will not be making fundamental content changes as it starts to make the changes. As a start, it has updated...

FCA improves service metrics

FCA’s latest set of authorisations metrics, covering the quarter to December 2023, shows 9 green metrics, 6 amber and no red. It determined 97.8% of applications overall within the statutory deadlines. No areas...

Pay.uk responds on VRP expansion

Pay.uk has responded to PSR’s proposal to expand variable recurring payments. In principle, it supports a multilateral agreement as the best way to deal with expansion, and says it has the appropriate expertise to...

Home Office responds on SARs regime review

The Home Office has published its response to the 2019 Law Commission report and recommendations on the SARs regime. The report had made 19 recommendations, of which the Home Office accepts 13. The uncontended...

Tribunal backs FCA on EMI

The Upper Tribunal has agreed not to suspend the restrictions FCA placed on EMI Nvayo Limited last year.  The wide restrictions stop the firm carrying on EMR business or disposing of assets. FCA welcomed the decision...

Changes to FPO exemptions

Changes to the exemptions for “business angel” investors took effect on 31 January.  Read our article on the changes for promotions to HNWIs and SCSIs.

PRA fines for deposit protection failings

PRA has fined 2 entities in the HSBC group £57m for long-lasting historic failure properly to implement its Depositor Protection Rules. The failings occurred in HSBC Bank plc (HBEU) between 2015 and 2022, and in HSBC UK...

FCA confirms rule updates

FCA’s latest Handbook Notice confirms rule changes its Board agreed in December, and the new motor finance complaints rules, as well as two changes agreed on 25 January. The two latest changes: update SUP 12.4...

PSR heralds priorities for 2024

Chris Helmsley has looked ahead to a busy year ahead for payments. He spoke on: implementation of the mandatory APP reimbursement rules which will be a real step-change in the way the industry approaches fraud...

No firm decision on digital pound

The BoE and Treasury response on the consultation paper on the possible introduction of a digital pound say that there has been no final decision on whether the UK will introduce a CBDC. The regulators will continue...

FCA social media guidance running late

FCA had initially planned to publish its guidance how its financial promotion requirements apply to promotions on social media before Christmas, but has updated its website to say it now plans to publish the finalised...

ML High Risk countries re-defined

From 22 January, a change to the MLRs means that Treasury will no longer periodically update Schedule 3ZA to the MLRs.  The definition of “High risk third country” is now a country named on the FATF lists of...

BSA hopeful of update to 1986 Act

The Building Societies Association welcomed the upcoming 2nd reading of the Building Societies Act 1986 (Amendment) Bill which will take place on 19 January.  The Bill aims to put building societies on a level playing...

FSCS updates on budget and expenses

FSCS expects to end the financial year below its approved management expenses budget. It has proposed a slightly increased management expenses budget for 2024/25, of £103.1m and explains that FCA and PRA are consulting...

FCA updates on Rule Review Framework

FCA has published its finalised Rule Review Framework. FSMA 2023 requires FCA to set this framework, which applies to all its Handbook rules, and explains how FCA sets, measures and monitors the outcome of the rules. It...

OFSI updates guidance

OFSI has updated several pieces of guidance.  There are December 2023 versions of: general guidance on financial sanctions; guidance on enforcement and financial penalties; and guidance specific to the Russian sanctions...

FCA reflects on 2023

Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...

UK Finance responds on D&I

UK Finance has published its responses to the PRA and FCA papers on D&I in the financial sector. Key points in its response include: that the regulatory approach in terms of transparency and accountability should...

FCA updates on retained EU laws

FCA has updated its website with details of the current state of play in relation to the repeal and replacement of retained EU laws in the financial services sector. Coming up in 2024 will be many changes and papers...

BoE consults on use of requirements on FMIs

The BoE is consulting on how it plans to use its powers under FSMA 2023 to place requirements on CSDs and CCPs mandating that they take, or don’t take, a particular action. It must use its power proportionately...

Open banking and VRP progress reports

The Joint Regulatory Oversight Committee has updated on progress in open banking. It is pleased with the significant progress made since its April report, and has summarised what has been happening across all its...

BoE publishes FMI supervision report

BoE has published its annual report on its supervision of FMIs. The report looks at what FMIs are, and BoE’s supervisory focuses over the past year. Its priorities for the future will include enhancing both...

Regulators update margin standards

PRA and FCA have confirmed updates to the Binding Technical Standards on margin requirements for non-centrally cleared derivatives. The changes, which take effect from 18 December: extend the temporary exemption from UK...

Treasury makes Digital Sandbox Regulations

Treasury has made Regulations under FSMA 2023 to create the digital securities sandbox under which firms can apply for a place to test developing technology to help FMI activities.  The sandbox is open to UK Recognised...

New Complaints Commissioner for 2024

Rachel Kent has been appointed the new Financial Regulators Complaints Commissioner. This is the first Commissioner appointment made by Treasury, as a result of changes in FSMA 2023.  She starts a 5 year appointment on...

Government revokes more retained EU laws

The fourth Commencement Order of FSMA 2023 brings into force various provisions of the Act, and revokes a long list of retained EU legislation from 1 January 2024. Other provisions that come into force on that date...

FCA makes new rules

FCA has published new rules including amendments to: introduce the requirements on Sustainability Labelling and Disclosure (from 28 November 2023) update SYSC from 8 December in respect of changes to the proportionality...

FCA finalises new rules to replace IDD

FCA has published its policy statement and final rules which will replace the IDD Delegated Regulations with rules and guidance in the FCA Handbook. The Regulations included: the standardised IPID format; product...

BoE updates resolution approach

The BoE has set out the framework it would use to resolve failing banks, building societies and dual-regulated investment firms. It has updated its “Purple Book” which explains all the key features of the...

MLR changes address domestic PEPs

Changes to the MLRs will take effect from 10 January 2024, which meet the requirements of s77 FSMA 2023 and provide that the starting point for EDD assessments where a customer is a domestic PEP or is a family member or...

New Russian sanctions take effect

The Government has introduced a new set of financial and trade sanctions against Russia. Taking effect from 14 December, the package includes broadening the existing sanctions in respect of correspondent banking and...

OFSI publishes Annual Review

OFSI has published its annual review for 2022-23. The review looks at how OFSI has expanded to meet its increased workload and how it has transformed its practices to deliver more effective implementation and...

FCA welcomes ESG ratings code

FCA has welcomed the launch of the ICMA and IRSG voluntary code for ESG ratings and data products providers. It has encouraged all relevant providers to sign up to it. The Code sets principles on: Good Governance...

NAO encourages FCA to manage risks better

The National Audit Office has published a report looking at how FCA deals with its new responsibilities and past regulatory failures.  The report says FCA is making good progress and has made significant changes, but it...

PRA updates on SDDT waivers

PRA has updated its website to include firms for the modifications by consent that Small Domestic Deposit Takers can apply for from 1 January 2024, together with its Directions relating to them.  The modifications are...

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...