FCA has published a set of Dear CEO letters it has sent to several sectors on preparation for the Consumer Duty. It has so far written to: asset management, custody and fund services and alternatives; consumer...
Author - Emma Radmore
Emma Radmore
Treasury publishes collection of G7 cyber docs
Treasury has published a set of papers from the G7 Cyber Expert Group, looking at various cyber security issues in the finance sector. The group has been active since 2016, but Treasury is now publishing a collection...
FCA steps up on fin prom actions
The latest figures FCA has published on its actions relating to financial promotions shows a huge increase in the numbers of ads it required firms to amend or remove in 2022 over the previous year. It required action...
Round up of FSMB in Lords’ Grand Committee
The FSMB has now completed 3 of its scheduled 6 sessions in the Lords’ Grand Committee. Many Lords have spoken on amendments, including several from Baroness Bowles, but so far none have been voted through. The...
FCA to ban debt packager referral fees
FCA has confirmed its plan to ban debt packager firms from getting referral fees from debt solution providers. It has issued a further short consultation to enable it to get more evidence which will then allow it to...
FSMB Lords Committee third day
The Lords Grand Committee had its third day of discussion on the FSM Bill on 1 February. The session covered: a group of amendments designed to test how the regulators apply their competitiveness and growth objectives...
FCA and Practitioner Panel send out survey
The FCA and Practitioner Panel 2022/23 survey is now being sent to a sample of regulated firms. The survey will go to all fixed portfolio firms and a sample of 13,000 flexible portfolio firms, and will see view on how...
CMA announces new OBIE Chair
Marion King has been appointed as the new Chair and Trustee of the Open Banking Implementation Entity with effect from 1 February 2023. The outgoing chair, Charlotte Crosswell, published her summary report on the end of...
NCA updates SAR guidance for new Portal
NCA has published a suite of documents comprising documents giving guidance on the new SAR Portal, together with FAQs on its use and new guidance for firms within the regulated sector on submitting SARs.
FCA confirms Aidene Walsh as PSR chair
FCA has confirmed that Aidene Walsh, who has been interim Chair of the PSR since April 2022 will now take the appointment for a three year term. As PSR chair, she will also sit on the FCA Board.
Treasury feeds back on cryptoasset promotions
Treasury has published its response to consultation on cryptoasset promotions. In summary, and in line with the decision to regulate crypto-related activities, the Government will bring promotions of cryptoassets within...
Treasury consults on crypto regulation
Treasury has published its long-awaited consultation on its plans to regulate cryptoasset activities in the UK. The consultation, which also includes a call for evidence and is accompanied by Treasury’s response...
FCA places restrictions on 2 advisory firms
FCA has imposed restrictions on Nexus Independent Financial Advisers Limited and Nexus Investment Managers Limited that prevent the firms from carrying out any regulated activities and restrict access to their assets. ...
UK criticised in CPI 2022
The 2022 Corruption Perceptions Index has been published. There is little significant change, with Scandinavian countries taking 4 of the top 6 spots, and most of the top 20 being European countries. The UK is in...
EBA clarifies SCA application to digital wallets
EBA has published some additions to its Q&As on PSD2, which clarify its stance on the application of the PSD2 SCA requirements in relation to cards held in digital wallets. The questions confirm that the addition of...
Regulators publish CBEST 2022 conclusions
BoE, PRA and FCA have written to firms with the results of the 2022 CBEST stress test. In a letter to the SMF holders with responsibility for cyber, the letter aims to: inform firms of perceived weaknesses; enable...
PRA consults on SMCR form changes
PRA is consulting on removing certain SMCR forms from its rulebook and also increasing the period for which employment history is required. It says that by moving the forms, it means it will not need to consult...
Levelling Up Secretary calls for urgent multi-occupation insurance action
Michael Gove has written to FCA in response to its review on multi-occupation building insurance. He calls on both Treasury and FCA to take urgent action to improve both the cost and availability of insurance for multi...
FSMB second day of Lords’ Committee hearing
The second day of debate in the Lords’ Grand Committee consisted of a lively debate on several proposed amendments, none of which have been taken forward. Topics debated were: creating offences for abuse of...
Economic Crime and Corporate Transparency Bill goes to Lords
The Economic Crime and Corporate Transparency Bill has now completed its passage in the Commons and moved to the Lords, where it had its first reading on 30 January and is due to have its second reading on 8 February.
Court holds “debtor” must be contractual party
The Court of Appeal has held that an individual cannot bring a claim under s75 CCA unless they were party to the relevant credit agreement, as otherwise they cannot be a “debtor” for those purposes. In ...
Regulators consult on value for money
FCA, the DWP and the Pensions Regulator are seeking views on proposals to require trustees and managers of DC occupational pension schemes, and the providers and IGCs of workplace personal pension schemes to disclose...
Sub-Committee publishes regulatory correspondence
The Treasury Sub-Committee on financial services regulations has published correspondence it has had with regulators on: sustainable investments: FCA has informed it that it thinks one third of funds that currently...
First session of Grand Committee on FSMB
In the first session of the Grand Committee sitting on the FSM Bill, Clause 1-23 of the Bill were approved (some with amendments), and a number of Government amendments were also agreed. There was lengthy discussion on...
FCA makes BSPS extended asset retention rules
FCA has confirmed its new rules that extend the asset retention requirement for firms who advised British Steel pension scheme members on transferring out. The new rules, effective from 31 January (when the current...
Failure to prevent fraud offence debated in Economic Crime Bill
A clause has been introduced for debate in the Economic Crime Bill, which is now on its third reading in Parliament, to create an offence of “failure to prevent fraud, false accounting or money laundering”...
FCA concerned about misleading BSPS redress offers
FCA has become aware that some firms are making unsolicited offers of redress to former BSPS members who have not made complaints. FCA feels this may be a deliberate attempt to exclude former members from the redress...
TheCityUK reports on more efficient authorisations
TheCityUK has published a report recommending actions that would improve the speed, efficiency and effectiveness of the PRA and FCA authorisation process. The increasing delays in the process are costing firms money and...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
FCA warns consumers on pre-paid probate plans
FCA has issued a consumer warning on pre-paid probate plans. It has seen increased marketing of these plans, which are not regulated products. Many of them are marketed by pre-paid funeral plan firms that FCA did not...
FCA feeds back on crypto applications
FCA has published its feedback on good and poor quality applications made by crypto firms under the MLRs. FCA has seen and refused so many bad quality applications it has now provided guidance to firms on what they have...
Culture Board winding up
The Financial Services Culture Board is to wind up. The Board is a not-for-profit voluntary membership body and has decided it cannot be confident it will have the income to take it to the end of 2023 and has therefore...
FCA concerned about consumer harm from coordinating money transfer firms
FCA has used its competition powers to issue a statement of objections alleging that three money transfer businesses coordinated with each other to fix prices for customers in Glasgow transferring money to Pakistan. It...
FCA publishes multi-firm review of Consumer Duty preparation
FCA has published the conclusions from a multi-firm review it carried out to gauge firms’ preparations for the implementation of the Consumer Duty. It asked a range of larger retail firms within its fixed...
FCA updates on how to complain
FCA has updated its information page on how to complain about the regulators. The new information notes that complainants need not wait for one complaint to be concluded before starting another but stresses that the...
FCA updates on MFA
FCA has updated its resources on the introduction of MFA for use of Connect, Reg Data, Fees Portal, the SIS and ESS. New guidance looks at how firms and their compliance consultants will need to be set up so that...
FCA updates application pages for mortgage intermediaries
FCA has updated its information pages and application forms for mortgage intermediaries.
FCA updates Consumer Duty resources
FCA has updated its information summary page on the Consumer Duty to include more detail on its expectations on firms applying now for authorisation. It expects firms to provide it with all policies, processes, MI and...
NCA publishes SARs report 2020-22
NCA has published its SARs annual report, which covers a 2 year period since it did not publish one in 2021. Key statistics are: a record over 900,000 SARs received and processed in the last financial year – 21%...
FCA speaks on “better foundations” in AI
Jessica Rusu, speaking at the Alan Turing institute, has addressed the critical considerations for the best use of AI in financial services. She said that: AI regulation in financial services needs to be built on a...
Economic Crime and Transparency Bill at Report stage
The Economic Crime and Corporate Transparency Bill has completed the Committee stage in the Commons and moves to the Report stage on 24 January. Sittings are scheduled for both 24 and 25 January.
Committee stage of FSMB in Lords starts 25 January
The Committee stage in the Lords will debate the FSM Bill starting on 25 January. 5 sittings have been scheduled, for 25 and 30 January, and 1, 6 and 9 February Further amendments have been tabled for discussion...
FCA starts thematic review of retirement income advice
FCA is undertaking some discovery work looking at how financial advisers are delivering advice on retirement income, with a view to assessing the quality of the outcomes consumers are getting. FCA says that since 2015...
FCA British Steel redress scheme challenged
FCA says a legal challenge has been launched to its decision to set up a redress scheme for former BSPS members. It says it will vigorously defend its scheme, which is is confident is appropriate. It says firms should...
Treasury calls for evidence on PSRs
Treasury is required to review the PSRs 2017 and is launching its review alongside a Call for Evidence on the evolution of UK payments regulation. Key points to note are: the consultation in 2022 on payments regulation...
Complaints Commissioner publishes protocols
The Complaints Commissioner has published the protocols for its relationship with the BoE and FCA. The protocols set out the contact areas within the institutions, the procedure on first receipt of a complaint, and...
Further FSMB amendments for Lords Grand Committee
Further amendments, and an updated running list of amendments, to the FSM Bill to be discussed in the Lords Grand Committee have been published. Among the latest additions are changes which would: remove short selling...
BBRS calls for SMEs to register old complaints
The Business Banking Resolution Service‘s “historical scheme” will close to new registrations on 14 February 2023. The scheme covers complaints first registered between 1 December 2001 and 31 March...
Treasury Committee publishes FCA information request
The Treasury Committee has published a letter sent to Nikhil Rathi on 1 December, asking for details on: total vacancies FCA has in specific areas, by grade, job and which ones require data or technology skills; how FCA...
FCA releases Consumer Duty podcast
FCA has released an “insider FCA” podcast on the Consumer Duty, looking at understanding the products and services outcome.
FCA follows restrictions on high-cost lender
FCA has published a First Supervisory Notice in respect of Micro-E C.I.C, trading as Kariba. The firm, a high costs lender, appears to have misused money from loans and does not seem to have sufficient assets to cover...
FSMB: Further Lords amends for debate
Further amendments to the FSM Bill have been published for debate in the Lords Committee. They relate mainly to: FCA powers beyond designated activities, aimed at giving it appropriate powers to take action against...
Lords publishes FSMB amendments for Committee
The House of Lords has published a set of amendments to the FSMB for discussion in the Grand Committee, which is now scheduled to sit on 25 and 30 January and 1 February. The amendments include several amendments that...
FCA updates whistleblowing figures
FCA has published its quarterly data for Q3 2022 on reports from whistleblowers. Between July-September 2022 it received 291 reports containing 734 allegations, mainly through its online reporting function, but with...
FCA extends confirmed guidance on motor ads
FCA has extended its confirmation of the Radiocentre industry guidance on ensuring financial promotions for motors brands on radio are clear, fair and not misleading and compliant with CONC. The guidance is now...
Regulators consult on MELL
PRA and FCA are consulting on the FSCS Management Expenses Levy Limit for 2023/24. The proposed level is £109.8m, slightly lower than the current year. It would apply from 1 April 2023. Consultation closes on 9...
FCA feeds back on OPBAS rulebook update
FCA has published the feedback it received on its consultation on updating the OPBAS Rulebook, and the revised rules, which took effect from 10 January 2023. FCA wanted to include a new chapter outlining OPBAS’...
FCA Portfolio letter- wholesale brokers
FCA has written a portfolio letter to the wholesale broking sector. The letter notes that although generally brokers do not aim to take market risk in their core activities, there have been significant periods of...
FCA updates on Skilled Persons reports
FCA has published the figures for its Skilled Persons reports commissioned in the period from July to October 2022. 11 were commissioned in total, with 4 in the retail investments area, none for general insurance and...
FSMB completes second reading in Lords
The FSMB had its second reading in the Lords on 10 January. Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...
Market Watch looks at DRSP service
Edition 72 of FCA’s Market Watch looks at the quality of service that Data Reporting Services Providers give. Given the importance of DSRPs to the functioning of wholesale markets and promoting transparency and...
FCA fines Al Rayan Bank for AML failings
FCA has fined Al Rayan Bank PLC £4m for failing to have in place proper AML controls over 2.5 years to the end of November 2017. The bank is a subsidiary of a Qatar-based Islamic bank, and provides Sharia compliant...
Stanford v HSBC – further analysis of the Quincecare duty
We reported on this judgment before Christmas. Now read our more detailed analysis of the judgment and its effects.
FCA fines Guaranty Trust Bank again for AML failings
FCA has fined Guaranty Trust Bank (UK) Ltd, the UK subsidiary of Guaranty Trust Nigeria Bank Limited, over £7.5m for AML systems and controls weaknesses spanning a period of nearly 5 years to July 2019. It had...
FCA imposes restrictions on investment firm
FCA has published a first supervisory notice to Pello Capital Limited imposing various requirements on it with immediate effect (from the date of its publication on 15 November), as a result of concerns about the...
High Court refuses JR application on FOS decision
The High Court has refused a renewed application for permission to apply for a judicial review of a FOS decision brought by Options UK Personal Pensions LLP (previously Carey Pensions UK LLP). FOS made a decision after...
Supreme Court judgment in Stanford/HSBC case looks at recoverable losses
The Supreme Court has held that, where HSBC actioned instructions that may have been part of a fraud, but which resulted in creditors being repaid, then regardless of whether it had a Quincecare duty and, if it did, had...
FCA removes temporary permissions for missing landing slots
FCA has started using its powers to remove temporary permissions from firms in the TPR who missed their landing slots. Lyonnaise de Banque missed its allocated slot, which gave it until 31 March 2022 to apply. FCA has...
Onerous or essential: banks’ duties and APP fraud
Read our article by Stephen Dilley and Rasmita Roy Chowdury, looking at the history and case law relating to banks’ duties and APP fraud reimbursement.
Ombudsman News looks at financial difficulties relating to mortgage debt
The latest edition of Ombudsman News highlights new guidance published by the FOS which explains its approach to complaints about financial difficulties in relation to mortgage debt. The guidance is outlined in two new...
Barclays granted permission to appeal to Supreme Court in APP fraud case
Barclays Bank UK plc has been granted permission to appeal to the Supreme Court in the case of Philipp v Barclays Bank UK plc [2022] EWCA Civ 318. As a reminder, Mrs Philipp issued a claim against Barclays Bank seeking...
Consumer Duty events
The FCA has announced it will be hosting a series of live and local events on the Consumer Duty across the UK between February and June 2023. The paid for events are aimed at retail investment and mortgage firms, and...
FCA updates Consumer Duty information page
FCA has updated its general information page for firms on the Consumer Duty. The page sets out brief guidance on: FCA’s expectations for outcome monitoring: FCA notes that without appropriate monitoring of...
FOS consults on plans and budget
FOS is consulting on its plan and budget for 2023/24. As part of the consultation, it asks: what volumes and trends it should be expecting in the areas of banking and credit, insurance, investments and pensions and...
FCA makes new rules
FCA’s latest Handbook Update confirms the following new rules: the Non-Workplace Pensions Instrument, which takes effect from 1 December 2023 and puts in place changes designed to help non-workplace pension savers...
Regulators update on Open Banking
Treasury, the CMA, FCA and PSR have issued a joint statement updating on their work on Open Banking. The Joint Regulatory Oversight Committee created in March is currently focussing on making recommendations for the...
Treasury Committee approves FCA chair
The Treasury Committee has approved the appointment of Ashley Alder as Chair of the FCA. It discussed his views on relevant topics and competence for the role, and noted that, moving as he is from a jurisdiction of...
Government publishes debt repayment plan response
The Government has published its response to its consultation on Statutory Debt Repayment plans. It had consulted on a proposal for debt advisers to devise repayment plans lasting up to 10 years, which would provide...
UK Finance publishes crypto regulation report
UK Finance has published a report it has produced with KPMG looking at how the UK regulatory framework can address unbacked cryptoassets. The report gives an overview of the current UK regulatory landscape and looks at...
Andrew Griffith updates on Green Taxonomy
Andrew Griffith has confirmed a statement by Baroness Penn confirming that the Government will not make secondary legislation under the Taxonomy Regulations this year, and will update further on its plans as part of its...
FCA to require MFA for Connect
FCA has announced it is to require multi-factor authentication for access to all its online resources like Connect, Reg Data and the Fees Portal, with effect from 20 January 2023. Users will need to enter a one time...
FCA to compel extra year of LIBOR publishing
FCA has published a decision notice issued to ICE Benchmark Administration Limited ordering it to continue to publish 3 month sterling LIBOR for another year. The final version was originally due to be published on 30...
BoE consults on wholesale cash distribution
The Bank of England is consulting on how it will use the new powers it expects to get under the FSMB to ensure effective, resilient and sustainable distribution of wholesale cash. The current wholesale distribution...
The Edinburgh reforms – and more
See our article, summarising various FIN posts over the past week on the state of play of the FSM Bill and the Edinburgh reforms.
FCA writes to life insurers on cost of living help
FCA has written a Dear CEO letter to the life insurance sector setting out its expectations on firms during the cost of living crisis. It reminds firms: to give protection insurance customers appropriate information at...
PSR consults on fees
The PSR is consulting on whether its regulatory fee structure, which has been in place since 2018/19 is still appropriate. It plans to retain the current regime, but change the way in which fees are allocated, with a...
FCA feeds back on compensation plans
FCA has published its feedback statement following its call for input into the protection the FSCS provides. The common message from respondents was that firms need to improve their conduct so that there are not so...
Latest Market Watch focuses on insider lists
FCA’s Market Watch Issue 71 concentrates on changes to advisory firms’ insider lists since the guidance FCA gave in edition 60, when it criticised firms for having unnecessarily large numbers of insiders. It...
FCA seeks views on retail disclosures
Following on from the Treasury consultation on PRIIPs information requirements, FCA is now seeking views on when and in what format information should be delivered to consumers in a way that ensures what is provided is...
UK to seek enhanced FTA with South Korea
The Government has started preparations to negotiate an enhanced free trade agreement with South Korea. It has published a Call for Input asking for views which will help it shape the negotiations, and asks for views by...
FCA publishes D&I review
FCA has published a report following its multi firm review of how firms are designing and embedding D&I strategies. Its review covered 12 fixed portfolio firms across multiple sectors, and consisted of it asking for...
FCA fines Metro Bank for Listing Rule breaches
FCA has fined Metro Bank over £10m and has also decided to fine its former CEO and CFO £223,100 and £134,600 for being knowing concerned in the bank’s breach of the Listing Rules, which involved publishing...
Treasury puts in place Haiti sanctions
The Haiti (Sanctions) Regulations 2022 will take effect from 28 December, following a UN Security Council Resolution. OFSI has published guidance to accompany the Regulations which will, among other things, include on...
Treasury makes recommendations to PRA and FCA
Treasury has published its correspondence setting out recommendations for PRA and FCA, which coincide with the announcement of the Edinburgh reforms. Treasury is required, at least once each Parliament, to set out...
FCA fines Santander for AML failings
FCA has fined Santander UK plc £107.7m for serious and persistent gaps in its AML controls that related to its business banking customers. It found that over a period of nearly 5 years from the end of 2012, the banks...
FSM Bill for Lords published
The new version of the Financial Services and Markets Bill, following the end of the Commons Stage, has been published, as the version read in the Lords on 8 December.
Treasury consults on PAR information requirements
Treasury is consulting on the customer information requirements in the Payment Accounts Regulations. It is reviewing the requirements in the Schedules to the Regulations, in the expectation that many of them are too...
Treasury consults on PRIIPs and UK Retail Disclosure
Treasury is consulting on plans to revoke the PRIIPs Regulation and replace it with a more suitable alternative. The PRIIPS Regulation has not been popular, with key criticisms being that it requires misleading...
Treasury responds on ring-fencing changes
Treasury has published the Government response on the recommendations of the Independent Panel on ring-fencing and proprietary trading. The report had made several recommendations to reduce the rigidity of the regime...
Treasury consults on CCA reform
Treasury is consulting on reform of the Consumer Credit Act. This is the first consultation following its announcement in June that it would undertake reform, and seeks views on the strategic direction of the reform...