The Building Societies Act 1986 (Amendment) Act 2024 got through the Parliamentary wash-up process and got Royal Assent on 24 May. The Act has now been published at the date of this post, but is designed to allow...
Author - Emma Radmore
Emma Radmore
Treasury publishes Access to Cash Designations
HM Treasury has published all its decisions on designating current account providers under the FSMA requirements to provide cash access services. There are 16 recipients of the designation notices – comprising 13...
FCA updates Consumer Duty webpage
The FCA has updated its Consumer Duty – information for firms webpage to include guidance on identifying vulnerable customers. For example, firms should: set up systems and processes that enable customers to...
PSR writes to FPS participants on APP reimbursement
The PSR has written to Faster Payments System participants to set out areas of focus for implementing the mandatory APP scams reimbursement policy. In order to ensure effective and timely implementation by 7 October...
FCA allows firms to restart GAP insurance sales
Following the pause in GAP insurance sales implemented earlier this year, the FCA has permitted several firms to recommence their sales of GAP. The firms permitted to resume sales of GAP insurance have materially...
FCA fines for poor customer treatment
The FCA has fined 3 entities within the HSBC group £6.2m for failures in treatment of customers in financial difficulty. For a period of around 15 months, ending in October 2018, it found the bank had not properly...
July 4 Election: effect on current Bills?
A general election has been called for 4 July 2024. Parliament (including the House of Lords) will be dissolved on 30 May 2024. We are now therefore in the ‘wash-up’ period which will last for only 2 days...
UK Finance annual fraud report 2024
UK Finance has published its annual fraud report for 2024 which sets out the amount of payment fraud and scams UK Finance members reported in 2023. Highlights include: criminals stole £1.17 billion through unauthorised...
PSR updates on preventing APP fraud
Chris Hemsley has written to Dame Harriett Baldwin MP (Chair of the House of Commons Treasury Committee) on the PSR’s progress on implementing measures to better protect consumers from APP scams. From 7 October...
PSR provisional finding on card schemes raises concerns
The PSR has published its provisional findings on competition in the cards schemes sector. It is concerned that the supply of scheme and processing activities is not working well and that there is no effective...
Treasury legislates for CMCs to pay FOS fees
Treasury has published a draft Statutory Instrument setting the legal framework for the FOS to charge fees to authorised CMCs and to legal professionals carrying out claims management activities.
Treasury lays draft Solvency II reform regulations
Treasury has laid before Parliament a draft Statutory Instrument that will make a number of technical changes to existing legislation to implement certain post-Brexit Solvency II reforms and ensure prudential regulation...
Court of Appeal dismisses JR application over SIPP challenge
The Court of Appeal has dismissed an application from Options UK Personal Pensions LLP for judicial review of a FOS decision in respect of investments made into an execution only SIPP. The FOS had held that the firm...
Fair Business Banking SME Manifesto calls for reform
The All Party Parliamentary Group on Fair Business Banking has launched its SME Manifesto. The manifesto sets out the strategy for the next government to transform the regulatory landscape for SMEs so that they get the...
FCA publishes credit information market remedy package
The FCA has published its final report for the Credit Information Market study. It has proposed a package of remedies to address the weaknesses its review found in the sector. The remedies focus on: improving data...
Sanctions changes take effect
Two sets of amendments to the sanctions regime have been published, one of which took effect on 16 May and the other taking effect from 5 June. They make changes to several sets of regulations in respect of various...
FCA speaks on key role of insurance brokers
Emily Shepperd has spoken on the key role insurance brokers have to play in the financial ecosystem. She focussed on the recent significant growth in brokered markets, and how future regulation might affect the industry...
FCA updates on implementing Consumer Duty for closed products
The FCA has written to firms in the following sectors on implementing the Consumer Duty for closed products and services by 31 July 2024: Asset management; Consumer finance; Consumer investments; Life insurance; Retail...
BoE publishes digital pound proof of concept
The BoE is currently conducting experiments and proofs of concept as part of the design phase towards a possible digital pound. It has looked at the technical feasibility of using existing POS hardware to initiate...
BBRS publishes 2023 report
The BBRS has published its annual report for 2023. The report acknowledges that the service has dealt with far fewer complaints than originally anticipated, but is pleased with the work it has done, and the feedback...
UK Finance calls for help for abuse survivors
UK Finance has published a report looking at the problems that victim-survivors of economic and financial abuse face when they try to regain financial independence. The report notes the 2021 Financial Abuse Code, which...
FCA charges 8 finfluencers with making unlawful promotions
The FCA has brought charges against 7 “finfluencers” and two other individuals in relation to an unauthorised FX trading scheme. It alleges that Emmanuel Nwanze and another used Instagram to provide advice...
FCA updates crypto registration stats
The FCA has updated its table on success rates of applications for registration under the MLRs for cryptoasset business. As at 1 May 2024, it had received 345 applications in total with 1 in the last month. During the...
Treasury updates CFTC equivalence determinations
The Treasury has updated its equivalence determination in respect of CFTC regulated contract markets and swap execution facilities with effect from 4 June.
Overseas Funds equivalence determination made
The FSMA 2000 (Overseas Funds Regime)(Equivalence)(EEA) Regulations will take effect on 16 July. The Regulations set out the Treasury’s approval of each EEA state in relation to any EEA authorised UCITS that is a...
NAO reports on pensions dashboard delay
The National Audit Office has published a report that looks at why the pensions dashboard programme introduction suffered delays. One key cause it identified is shortage of digital skills. The final connection deadline...
FCA writes to Committee on investment trust disclosure
The FCA has written to the Financial Services Regulation Committee explaining its thoughts on the need for reforms to the disclosure regime. It explains why the FCA has taken the stance it has, including why it does not...
Market Watch focuses on surveillance
The latest edition of Market Watch looks at the effectiveness of surveillance arrangements, systems and controls. The FCA looks at the impact of failures when firms’ systems do not work as intended and the length...
FCA publishes hire purchase agreement undertaking
The FCA has published a notice of undertaking under the Consumer Rights Act in relation to vehicle hire purchase contracts issued by Mercedes-Benz Financial Services (UK) Limited. The FCA had been concerned that an...
FOS updates on car finance complaints
FOS has around 20,000 open complaints on car finance commission. It has explained on its website that: it published its first representative decisions in January 2024; also in January, the FCA announced its review of...
Treasury Committee publishes enforcement proposal correspondence
The Treasury Committee has published a further set of correspondence with the FCA on the FCA proposals to publicise enforcement investigations, and the Financial Services Regulation Committee formally announced its...
UK and Singapore strengthen FinTech and sustainable finance cooperation
The 9th dialogue of the UK-Singapore financial dialogue focussed on: commitment to scale financing in support of the net zero agenda, including transition planning and disclosure and rating standards; fintech and...
Parliament to look at regulatory international competitiveness
The Financial Services Regulation Committee is starting an inquiry into the PRA and FCA’s secondary international competitiveness and growth objective. Among the issues it wants to explore are: the balance between...
SME banking report finds “unfair” treatment of small businesses
The Treasury Committee’s report on SME finance has heavily criticised the “unfair” debanking of many legitimate businesses. It firmly believes that any small business doing legitimate work should have...
PSR consults on CHAPS APP scam reimbursement
The PSR is consulting on a proposed direction to require banks and payment firms participating in CHAPS to reimburse customers who have been the victim of APP scams. The direction will support the BoE’s...
PSR consults on cycle 2 APP scam publication guidance
The PSR is consulting on its draft guidance for PSPs for publishing APP scams data for cycle 2 (the calendar year 2023). The requirement to publish the data comes under Specific Direction 18 and applies to 14 PSP groups...
A bank “retrieval duty”?
See our article on the recent CCP Graduate School Ltd v Nat West case, where the court looked at the issue of receiving banks’ liability.
FCA fines and bans individual for incorrect info on client cash
FCA has fined James Lewis, former CEO of Shard Capital Partners, £120,300 and has banned him for providing false information once to auditors and once to a client about the amounts of cash balances the firm held. The...
BoE looks at AI and financial stability
Jonathan Hall of the FPC has spoken on whether increasing use of AI models could have a negative impact on financial stability. He sees two key risks: that deep trading agents could lead to a brittle and highly...
AML supervision review looks forward to change
Treasury has published its 2022-23 review of AML supervision. The report contains the normal review of what each supervisor has done, but mainly looks forward to the upcoming changes to both the supervisory structure...
OFSI updates enforcement guidance
OFSI has updated its guidance on Enforcement and Monetary penalties. The main update is to say that OFSI will now always apply the most recent iteration of its guidance to cases it is looking at. It has also taken the...
FS Regulation Committee seeks further enforcement proposal reassurance
The House of Lords Financial Services Regulation Committee has written to Nikhil Rathi in response to the FCA’s letter to the Committee which in turn responded to the Committee’s concerns about the...
PSR consults on extension and exemption process
The PSR is consulting on how it plans to make decisions on exemptions or extensions to its directions and requirements. In principle these will be appropriate in only limited circumstances. When it receives a request...
Treasury and FCA publish overseas funds roadmap
HM Treasury and the FCA have published a timeline and roadmap for implementation of the new Overseas Funds Regime. The document explains how the OFR is now going to open up to EEA UCITS, and sets out what their...
FOS publishes half-yearly complaints data
FOS’ latest half-yearly complaints data shows a rise of 20% in complaints during H2 2023, with the rise driven mainly by banking and credit complaints. Within that sector, current accounts and credit cards...
OFSI publishes FAQs
OFSI has published its first set of FAQs on financial sanctions. It hopes they will be accessible and helpful to businesses. It will release new FAQs on an “as-needed” basis and does not plan generally to...
FCA and Gambling Commission update MoU
The FCA has published its updated MoU with the Gambling Commission. Among other things, the MoU sets out that the Gambling Commission regulated commercial gambling apart from spread betting.
JMLSG consults on wholesale market guidance update
The JMLSG is consulting on changes to chapter 18 in Part II of its guidance, for wholesale markets. The changes generally update references, and: clarify that as market abuse is a predicate offence, settlement of...
FCA updates SUP notification form
The FCA has created a new form on its website for use by firms and insolvency practitioners making a Principle 11 notification. The purpose of the form is to get the information the FCA will need to assess how to deal...
Industry calls for intervention on FCA enforcement proposals
16 financial services trade associations, including UK Finance, the ABI, TheCityUK and PIFMA, have written to the Chancellor asking him to intervene over the FCA’s proposals to publicise enforcement investigations...
PRA updates on insurance regulatory returns
The PRA has updated its guidance on regulatory returns it requires from insurers. The page confirms that all reports should be submitted electronically, and provides links to the insurance taxonomy and a filing manual.
FCA finalises consumer credit sales data rules
The FCA has finalised its new rules that incorporated 3 new Product Sales Data returns into SUP. The enhanced requirements should help the FCA to get better market insights and to intervene more quickly if it sees risks...
FCA updates Form A
The FCA has made some changes to Form A which it hopes will improve the application experience. Among other things, the new look form: removes duplication of employment history by simply requiring 10 years of employment...
FCA responds on enforcement proposal criticism
The FCA has responded to the House of Lords’ Financial Services Regulation Committee’s letter that criticised the FCA’s proposal to name firms it was to investigate and asked for justification of its...
Government responds further on progress of Edinburgh reforms
The Government has published a second formal response to its December 2023 report on the progress of the Edinburgh reforms. This response is more detailed than the Government’s initial response and includes an...
PRA speaks on developments in bulk purchase annuities sector
Lisa Leaman (Head of Division, London Markets at the PRA) has delivered a speech on developments in the bulk purchase annuities (BPA) sector. Highlights include: Solvency II reforms to the matching adjustment (MA) –...
European Parliament adopts new AML package
The European Parliament has adopted the new AML package, which, among other things, will: limit cash payments to €10,000; create a new EU-wide agency to directly supervise the highest risk businesses; allow those with a...
ABI acts on motor premium finance
The ABI has announced a new set of Premium Finance Principles, designed to try better to manage the charges on consumers who pay monthly for motor insurance. The ABI says it considered, and discussed with the FCA, a...
FCA consults on Financial Crime Guide updates
The FCA is consulting on several proposed changes to its Financial Crime Guide. It is suggesting change to: the guide generally to add references to crypto assets and the Consumer Duty; the sanctions part to reflect...
PRA writes to CROs on private equity related activities
Following a PRA review of private equity financing businesses, it has now written to bank Chief Risk Officers noting the key conclusions. It specifically notes a recent trend that increases exposure to various non...
FCA notes good and poor practice for credit broking ARs
The FCA has carried out a review of the key harms and drivers of harm caused by ARs and IARs in the credit broking market. Key areas where some principals could improve are; making sure they undertake criminal or credit...
PSR consults on supervisory approach
The PSR is seeking views on its approach to supervision. Last year, it set up a Supervision and Compliance Monitoring division, designed to deter and challenge any poor practices within firms. It plans for the division...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
Lords asks for FCA justification of enforcement proposals
The House of Lords Financial Services Regulation Committee has written to the FCA making several criticisms of its proposals to name firms under investigation. It is particularly critical that the paper explicitly rules...
UK Finance to support VRPs for commercial applications
UK Finance has published a report which sets out recommendations for addressing the key issues and processes needed to develop VRPs for commercial applications and containing a set of model contractual terms.
PSD3 nears final agreement
The European Parliament has voted through proposed changes to the Payment Services Regulation and Directive by a large majority. Key changes include: free verification of identifiers and requirements on PSPs to ensure...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
Debanking complaints spike
The Treasury Committee has published new data that shows a rise of 69% in complaints to the FOS about debanking since 2020/21. In the last year, there were nearly 4,000 complaints. There has also been an increase in the...
FCA updates on BSPS complaint action
The FCA has provided an update on the complaints it has been receiving about what it is doing, or not doing, in relation to the fallout from BSPS transfer advice. Although it has implemented a redress scheme and taken...
BoE speaks on role of private equity
Nathanael Benjamin of the BoE has spoken on the role of the private equity market, focusing on its key role in financing companies but looking also about safe and sustainable growth. Key points from his speech included:...
PRA consults on final Solvency II review steps
The PRA has published a consultation on the final steps it needs to take to implement the conclusions of the Solvency II review and finalise all the PRA materials needed to replace the Solvency II assimilated laws that...
JROC seeks input on design of future entity for open banking
Further to its April 2023 recommendations for the next phase of open banking in the UK, the Joint Regulatory Oversight Committee has published its proposals for the design of the future entity for open banking, which...
BoE outlines CCP stress test for 2024
BoE has set out the key elements of its 2024 supervisory stress test for UK central counterparties. The clearing services of all three UK authorised CCPs (ICE Clear Europe Ltd, LCH Ltd and LME Clear Ltd) will be in...
APPG publishes Economic Crime Manifesto II
The All Party Parliamentary Groups for Anti-Corruption and Responsible Tax and for Fair Business Banking have published a manifesto looking at the scale of corruption and calling for significant greater transparency to...
PSR consults on APP reimbursement compliance and monitoring
The PSR has published a consultation paper seeking views on proposed reporting requirements for PSPs that are in scope of the new reimbursement requirement, so that the PSPs will report data to allow the regulator...
NGFS publishes Transition Plan Package
The Network for Greening the Financial System has published its Transition Plan Package. It has published three detailed reports on: considerations for emerging markets and developing economies in tailoring transition...
FCA speaks on women in financial services
Sheree Howard (Executive Director of Risk and Compliance Oversight at the FCA) has delivered a speech at the PIMFA Women’s symposium conference on investing in women in financial services, both as employees and...
FCA highlights common failings in asset management applications
The FCA has provided a list of common errors asset managers are making in applications for authorisation. For context, in the year to 1 April 2024, 18% of applications were withdrawn as a result of the FCA’s...
FCA updates on motor finance complaints
Following the announcement of its review into motor finance complaints, the FCA has published a statement on progress made to date. It says that firms have engaged with the FCA constructively but many are struggling to...
FCA publishes PEMC travel insurance signposting review
The FCA has published the findings of its review into how well consumers with medical conditions are being made aware of travel insurance available to them. The FCA introduced rules in 2020 requiring firms to signpost...
FCA publishes Link findings
The FCA has published its findings against Link Fund Solutions, explaining its conclusion that the firm failed to manager the liquidity of the Woodford Equity Income Fund from 31 July 2018 to 3 June 2019 and therefore...
PRA consults on fees
PRA is consulting on its fees and levies for 2024/25. Key elements of the proposals are: funding an overall increase in the budgeted cost for ongoing regulatory activities of 7%; dealing with an increase of 11% in the...
PRA publishes Business Plan 2024-5
The PRA has published its 2024/25 Business Plan. The plan focuses on: maintaining and building on the safety and soundness of the banking and insurance sectors and ensuring continuing resilience; being at the forefront...
FCA consults on new way to pay for research
The FCA is consulting on a range of ways in which asset managers might choose to pay for investment research. It says that, while firms are generally getting the research they want under the current rule format, the...
FCA finalises guidance for borrowers in financial difficulty
The FCA has finalised its rules and guidance to strengthen protection for consumer credit and mortgage borrowers in financial difficulty. It has decided to bring parts of its current guidance in FG23/2 for mortgage...
Transition Plan Taskforce updates plan resources
The TPT has published its final set of transition plans. The resources make use of the international best practice framework for plans and include: sector-specific guidance for entities such as asset managers and banks;...
Market Watch focuses on instrument reference data
The latest edition of Market Watch looks at completeness and accuracy of instrument reference data. It looks at the most common rejection messages and the number of rejections, and suggests best practice for submitting...
FCA consults on fees
The FCA has published its consultation on fees and levies for 2024/25. After the general fee freeze last year, key proposals for the next year include: increasing minimum and flat rate fees in line with the 8.75%...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
NCA releases latest SARs report
The latest NCA SARs annual statistical report shows a decrease in the total number of SARs compared to the previous year, which is mainly because of fewer SARs being made by high street banks, although banks still...
FCA publishes financial resilience survey results
The FCA has published the results of its October 2023 Financial Resilience Survey. The survey had been issued 11 times in the October 2023 form but has now been replaced with a new format. The FCA has released the data...
FOS publishes plans and budget for next phase
The FOS has published its finalised Plans and Budget for the next phase of its transformation. It expects to receive a greater number of complaints in the coming year, and anticipates 210,000 complaints in its caseload...
FCA gets consent to recover investor funds from Argento Wealth
The High Court has approved a consent order allowing the FCA to proceed with its application for £1.6m investor funds to be returned by Argento Wealth Limited and its sole director, in relation to 2 allegedly unlawful...
FCA and BoE consult on Digital Securities Sandbox
The BoE and FCA are consulting on the Digital Securities Sandbox which will allow participants to use developing technologies to carry out some of the traditional activities of CSDs and trading venues. Instruments such...
FCA updates on Attestations
The FCA has updated its website page on attestations. The page explains the situations in which the FCA will normally ask for attestations, and is updated quarterly with the numbers of attestations. For the quarter to...
Fair Business Banking group publishes call to action
The All Party Parliamentary Group on Fair Business Banking has called for input into its SME manifesto. The document, which wants to address the challenges that face SMEs when dealing with financial institutions, is...
FCA gives guidance on consumer credit income reporting
The FCA has updated its guidance for consumer credit firms to reflect changes to the way firms now need to calculate their proxy measure of annual income. When completing their reports, credit brokers need to include...
ABI publishes guide to supporting autistic customers
The ABI has published a good practice guide to help the insurance and long-term savings industry support autistic customers. It had found several barriers that autistic people face when trying to access the products...
FCA makes minor rule changes
The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...
Regulators respond on data collection transformation
The BoE and FCA have published an update on their joint transformation programme aimed at improving the data collection process for regulators and firms. They published their original transformation plan in 2021 and...