Treasury has published a Policy Paper setting out how it intends to deal with retained EU law in the financial regulatory sector. The Policy Paper says that the FSMA model, with the operationally dependent regulators...
Author - Emma Radmore
Emma Radmore
FCA updates SMF and related pages
FCA has updated several parts of its website relating to its approval process for senior manager and other individual applications. The updated pages include: details on the approved persons process generally; how to...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
PSR updates on APP scam data
The PSR has published an update on its plan to publish data on how banks and building societies are responding to APP scams. PSR will require the 14 largest PSPs in the UK to provide 6 monthly data on APP scam...
FCA fines brokers for market abuse detection failings
FCA has fined 3 firms within the BGC and GFI group a total of £4,775,200 for failure properly to implement the MAR trade surveillance requirements, which meant there was an increased risk that the firms would not detect...
Tribunal backs FCA on crypto-refusal decision
The Upper Tribunal has published its decision made in September on an application by Moneybrain Limited. Moneybrain had created a type of cryptocurrency called BiPS tokens and had applied to FCA to be registered as a...
FSM Bill – Lords dates announced
The FSM Bill as amended after its passage through the Commons has now had its first (routine) reading in the Lords. The Lords’ second reading has been set for 10 January 2023.
FSM Bill report stage
As scheduled, the FSM Bill had its report stage on 7 December and, eventually, at nearly 7pm, the Third Reading of the Bill took place and was agreed to. The Bill now moves to the Lords. While we still await the new...
New AR rules take effect
The FCA’s reforms to the appointed representative regime have come into force and the FCA has published a new webpage setting out information on the s165 requests it will be sending to principal firms. As a...
FCA consults on mortgage support guidance
The FCA is consulting on draft guidance explaining how firms can support their mortgage customers impacted by the cost-of-living crisis, including varying a contract for forbearance purposes. The draft guidance will...
PSR updates on CoP progress
The PSR has written to the Chair of the Treasury Select Committee to update her on the progress of CoP Phase 2 implementation. As a reminder, the aim of Phase 2 is to extend CoP to include PSPs who do not use the widely...
FCA and Pensions Regulator update on joint strategy
The FCA and The Pensions Regulator have provided an update on their 2018 joint regulatory strategy for the pensions and retirement income sector. The statement explains the regulators’ progress since 2018 and...
FCA bans bond traders for market manipulation
The FCA has published Decision Notices banning Diego Urra, Jorge Lopez Gonzalez and Poojan Sheth from performing any functions in relation to regulated activity. The FCA considers that the traders placed large...
FSB holds Basel plenary
The FSB Plenary met in Basel to review vulnerabilities in the global financial system and to discuss policy work in several areas including crypto. The Plenary also agreed its work programme for 2023. Financial...
JMLSG publishes revisions to Guidance
JMLSG has published amendments to several parts of its guidance, and has submitted the updated versions to Treasury for approval. The revisions update: Chapter 5 of Part 1 (5.5.11) to update provisions on high-risk...
FCA consults on fin proms gateway
Following Treasury’s 2020 consultation, the FCA has launched its own consultation on the introduction of a gateway for firms who wish to approve financial promotions on behalf of unauthorised persons. The paper...
Dear CEO letter outlines strategy for financial advisers
The FCA has published a portfolio letter which sets out its supervisory strategy for financial advisers and intermediaries. The letter confirms that financial advisers are a key priority for the FCA and outlines the...
FCA updates on debt packager proposals
Following its November 2021 consultation on plans to ban debt packagers from receiving referral fees from debt solution providers, the FCA has provided an update on its proposals. The FCA will set out its proposed next...
FSMB amendment paper published
In advance of the FSM Bill starting its report stage on 7 December, the House of Commons has published an updated version of the amendment paper which lists all amendments tabled to the Bill together with any withdrawn...
SCA amendments to apply from 25 July 2023
Commission Delegated Regulation (EU) 2022/2360, which amends the regulatory technical standards (RTS) for strong customer authentication under PSD2, has been published in the OJEU. As a reminder, the amendments to the...
EU provisionally agrees new Consumer Credit Directive
The European Parliament and Council have reached provisional agreement on updating EU rules on consumer credit. The new rules will cover credit agreements of up to €100,000. Key provisions will: require a...
FCA publishes GI pricing review attestation results
FCA has published its findings from its multi-firm review of 18 insurers and 48 intermediaries that assessed how firms satisfied themselves that they do not apply a loyalty penalty to motor and home insurance customers...
FCA quarterly consultation clarifies Consumer Duty application
FCA’s Quarterly Consultation proposes minor changes to various parts of its rules, including providing clarification on the Consumer Duty. The paper proposes: amendment to TC to include The London Institute of...
FCA warns insurers against undervaluation
FCA has warned insurance firms that they must take care not to undervalue items, specifically but not only cars, when settling insurance claims. It has become aware that claims staff are often offering a lower price...
Treasury and regulators correspond on operational effectiveness
Treasury has published exchanges of letters between Andrew Griffith and the FCA and PRA, in which he asked for an update on what the regulators had done to improve operational effectiveness. The responses focussed...
FCA fines adviser for unsuitable BSPS advice
FCA has fined Pembrokeshire Mortgage Centre Limited £2,354,331 for giving unsuitable advice to consumers to transfer out of the BSPS and other DB pension schemes. FCA found the firm, which is in liquidation, had advised...
FSM Bill report stage on 7 December
The FSM Bill is to have its report stage and third reading in Parliament on 7 December, after receiving the Bill with amendments from the Public Bills Committee. It is possible for Parliament to make amendments at...
FCA and LSB publish MoU
FCA and LSB have published their MoU which sets out their intentions to cooperate in carrying out their respective functions under the Banking Conduct Regime and Consumer Credit Regime and the various LSB Standards and...
PSR fines for interchange fee breach
The PSR has fined Barclays £8.4m for failing to provide retailers with full information about the costs of its card services. The Interchange Fee Regulation requires banks to provide retailers with transaction...
FCA still concerned about CFD firms
FCA has written to the CEOs of firms that offer CFDs reminding them about the potential for substantial losses to be suffered by those who invest in them. FCA says around 80% of customers lose money when investing in...
FCA consults on pension dashboards and makes rules on non-workplace pensions
FCA has published proposals to enable pension dashboard operators to offer additional services that will improve engagement with pensions, provided they meet required standards. The additional services could include...
FCA consults on simplified advice regime
FCA is consulting on a proposed simplified advice regime, which will allow firms more easily to give consumers advice about certain mainstream investments within stocks and shares ISAs. It proposes, as part of its...
FCA fines JBI for breaches of Principle
FCA has fined Julius Baer International £18,022,500 for breaches of Principles 1, 3 and 11 at various times between 2007 and 2014. It has also decided to ban 3 individuals – all of whom have taken their case to...
FOS updates webpage on BSPS complaints
Following the publication of the FCA’s final BSPS redress scheme rules, FOS has published a press release and has updated its webpage on complaints relating to financial advice received in respect of transferring...
FCA consults on fees and levies for 2023/24
The FCA is consulting on proposals for changes to its policy on how it raises regulatory fees and levies. The consultation paper covers: the fees for principal firms of ARs; options for redefining fees calculations for...
FCA bans individual
The FCA has banned Carlo Palombo from performing any regulated activity. Mr Palombo was convicted of conspiracy to defraud in respect of fixing EURIBOR whilst an employee of Barclays and was sentenced to 4 years’...
FCA publishes BSPS redress rules
FCA has published its final rules setting out how the redress scheme for former members of the BSPS who were given unsuitable advice on transferring out will operate. There have been no significant changes following...
FCA publishes GI value measures data
FCA has published its first set of value measures data for a range of general insurance products, for H2 2021. It highlights: claims costs as a proportion of premium ranging from just over 5% for GAP insurance sold as...
FSMB: Government U-turn on intervention power
The Treasury Committee has published correspondence that now confirm the government will not proceed with its controversial intervention power that it had intended to introduce into the FSM Bill. The power would have...
ABI publishes strategy to improve diversity in insurance sector
The Association of British Insurers (ABI) has published an ambitious Blueprint which sets out a multi-year strategy to improve diversity, equality and inclusion (DEI) across the insurance industry. The Blueprint splits...
FOS publishes Independent Assessor’s report
The Independent Assessor’s annual report on FOS notes that, during the financial year 2021/22, FOS resolved nearly 220,000 cases. Only 1.9% of those customers complained about the service to FOS and only 0.3%...
BoE speaks on digital currencies
Sir Jon Cunliffe has spoken on recent crypto market developments. He started with an overview of the failure of FTX and looking at how regulation could impact on activities such as those FTX carried out. He noted that...
FCA worried about trading app design
FCA is concerned that certain stock trading apps include game-like elements which risk prompting consumers to take actions beyond their risk appetite and not in their interests. It has highlighted practices which...
FCA publicly censures former Sonali Bank CEO
FCA has at last issued its final notice which publicly censures Mohammed Ataur Rahman Prodhan, former CEO of Sonali Bank UK. FCA had already taken regulatory action against both the bank and its MLRO in relation to AML...
Regulators respond to MP on HBOS investigation queries
Sam Woods (PRA) and Nikhil Rathi (FCA) have written to Kevin Hollinrake MP on behalf of the APPG on Fair Business Banking. The regulators have responded to Mr Hollinrake’s questions following the closure of...
FCA speaks on “rolling regulation forwards”
Nikhil Rathi spoke to UK Finance on three key developments which he said will drive regulation forwards: the Consumer Duty: he discussed FCA’s reasons for introducing the Duty, and how FCA would be looking to...
New FSMB Amendments published
The House of Commons has published an amendment paper for the FSM Bill, tabling two new additional clauses. The new clauses relate to stewardship reporting requirements for OPS and for large institutional investors...
Law Commission consults on DAOs
The Law Commission has published a call for evidence, seeking information about how decentralised autonomous organisations (DAOs) should be characterised and how the laws of England and Wales might accommodate them in...
FOS feeds back on future funding
FOS has published feedback following its discussion paper on its future funding. Following comments, it will not take forward some of the options on which it sought views, such as charging professional representatives...
Financial Services Culture Board reveals 2022 employee survey results
The FSCB survey shows that, over the seven years since it started, firms have shown steady improvement overall in scores related to leadership, taking responsibility and speaking up and being open to challenge. ...
FCA gets judgment against unauthorised mortgage broker
FCA has obtained a judgment against a company, its parent, their director and his father. It found they arranged high-interest, unaffordable bridging loans for vulnerable consumers who were about to be evicted from...
LSB and PSR sign MoU
The LSB and PSR have signed and published a memorandum of understanding. setting out how the bodies will co-operate and communicate. The accompanying press release note who LSB champions the CRM Code and wants to work...
FCA reacts to FTX failure
FCA has noted that UK customers of FTX may be alarmed following its provisional liquidation in the Bahamas and filing for bankruptcy in the US. It had previously warned customers that FTX is not regulated in the UK and...
Lords Committee disappointed with UK fraud response
The House of Lords Fraud Act 2006 and Digital Fraud Committee has published a report called “fighting fraud: breaking the chain”, which expresses its disappointment at how the UK is reacting to the...
Treasury updates AML advisory
Treasury has updated its money laundering advisory notice on high risk third countries. The following list has also been substituted for the current list in Schedule 3ZA of the MLRs: Albania Barbados Burkina Faso...
FCA bans director
FCA has banned Ashkan Zahedian, former sole director of an authorised consumer credit firm, following his conviction for serious, violent offences that took place while he was an approved person. FCA said the offences...
FCA updates ARs page
FCA has updated its website page on Appointed Representatives, to reflect the changes coming in on 8 December. Among other things, the page reminds firms of: the s165 information request that principals will receive...
CMA acts for further breaches of Retail Banking Order
CMA has published updates of its actions against Nationwide, Danske Bank and NatWest for breaches of the Retail Banking Order. It found that: Nationwide had published inaccurate information through its Open Data APIs on...
FCA places requirements on firm that gave misleading information
FCA has issued two supervisory notices against Samweb (UK) Limited, a claims management company, following concerns that its communications could mislead customers. FCA was concerned the firm had: breached various...
EU agrees plan to implement Basel III reforms
The Council has reached an agreed position on the implementation of the Basel III reforms designed to boost the resilience of banks operating within the EU and strengthen their supervision and risk management. The...
CMA writes to Barclays on PPI breaches
The CMA has written a public letter to Barclays because the bank failed to send reminders to up to 1,306 customers about their payment protection insurance (PPI) policies. This meant a breach of Article 4 of the Payment...
FCA updates on DB pension redress calculations
The FCA has received information that a number of firms are not calculating defined benefit pension redress correctly. The information which suggests that these firms are not considering ongoing fund costs and/or fully...
Principals to respond to AR requests by 28 February 2023
Following confirmation that it will be sending principal firms that have ARs a s165 information request in December, the FCA has updated its webpage to let firms know that they should expect to receive this via Connect...
Commission publishes amendments to Crowdfunding Regulation
The European Commission has published amendments and supplemental legislation to the Regulation on European crowdfunding service providers for business ((EU) 2020/1503) (Crowdfunding Regulation) in the Official Journal...
FCA updates on mortgage switching
Following its update earlier this year, the FCA has published a technical note on switching in the mortgage market which includes more in-depth analysis. Key findings include: since the mortgage market study (MMS) (H2...
TPT launches ‘gold standard’ for climate transition plans
The Transition Plan Taskforce (TPT) has published its Disclosure Framework and accompanying Implementation Guidance. The Framework makes recommendations for companies and financial institutions to develop gold-standard...
PRA consults on Solvency II reporting requirements
The PRA has published a consultation paper setting out its plans to streamline various Solvency II reporting and disclosure requirements for insurers. To achieve this, PRA intends to revoke retained EU Technical...
FSMB: Economic Secretary writes to Treasury on DAR
Andrew Griffith has written to Dame Angela Eagle to follow up on questions she raised regarding the delegated powers in the FSM Bill. In particular, Dame Angela raised the provisions in Clause 8 (the Designated...
Final day of FSMB debate published
In the morning and afternoon of the final day of the Public Bills Committee debate on the FSM Bill, the remaining tabled new clauses were discussed: that the Chair of the PSR should be a member of the FCA board: this...
FCA and BoE agree MoU with Bank of Greece
FCA has published a Memorandum of Understanding (MoU) between the Bank of Greece (BoG) and the BoE and FCA which aims to formalise supervisory cooperation and information sharing arrangements in the wake of Brexit...
FSM Bill completes Commons committee stage
The FSM Bill has completed the committee stage in the House of Commons and Parliament has published a revised version of the Bill. Of the amendments tabled in the committee stage, the following have been added to the...
FCA publishes financial promotions data
FCA has published data covering the period of 1 July to 30 September 2022 assessing its action against authorised firms for breaching financial promotion rules and referrals, as well as its investigations into...
Borrowers in financial difficulty post-pandemic
FCA’s Borrowers in Financial Difficulty (BiFD) project was launched in March 2021 to monitor how firms support borrowers and intervene where necessary, particularly in relation to the financial effects of the...
FSMB amendment paper published
The House of Commons has published an updated version of the FSM Bill amendment paper which lists all amendments tabled to the Bill together with any withdrawn amendments. The tabled amendments include: Government...
LSB reports on progress of CRM code in tackling APP scams
The LSB has published a review of the progress that has been made by signatories to the Contingent Reimbursement Model Code (CRM Code) in tackling APP scams. The LSB concluded that the firms which have signed up to the...
FSMB: Committee debates access to cash and more
On 1 November, the Public Bills Committee debated further clauses of the FSM Bill in the morning and afternoon sessions. They discussed: Clause 46 and Schedule 7 on the PSR: Andrew Griffith explained that these clauses...
CMA updates case timetable of FS sector investigation
CMA’s case timetable for its investigation into anti-competitive practices in the financial services sector now notes that the investigation will continue into Spring 2023, when there will be a further update.
FOS publishes latest complaints data
The latest quarterly complaints data from FOS reveals: 38,470 new complaints from July – September 2022 (Q2), an increase of 3,000 on Q1; nearly 6,000 complaints about current accounts (up by 500) nearly 3,400...
FCA asks consumer credit firms for credit data
FCA is asking several consumer credit firms to provide it with data on their credit activities, to enable it to monitor and assess the impact of the rising cost of living. It is not making a formal information request...
Public Interest Intervention Power FSMB amendment delayed
Andrew Griffith has written to Dame Angela Eagle saying that, despite his repeated statements that the Government planned to publish its proposed public interest intervention power amendment soon, it will now not be...
FOS blog looks at holiday insurance complaints
FOS has published a blog looking at complaints involving holiday cancellations because of positive or delayed Covid test results. It has suggested some tactics insurers might apply which may prevent complaints. These...
BBRS publishes reports on customer satisfaction and complaints
The Business Banking Resolution Service (BBRS) has published its Customer Satisfaction Report, reporting customer journey feedback for the 2 months to late August. 72% of customers said they were able to complete the...
Andrew Griffith letters on FSMB
The House of Commons has published a letter from Andrew Griffith on the FSM Bill dated 10 October to Tulip Siddiq and Abena Oppong-Asare. The letter followed the second reading of the Bill and addresses: the...
FCA publishes final rules on pensions dashboards
Following its consultation earlier in the year, the FCA has published its final rules and guidance (PS22/12) requiring pension providers to provide and enable information about personal and stakeholder pensions to...
FCA prosecutes individuals for investment fraud
Following FCA application, there will be a trial of 4 defendants in February 2023 for alleged investment fraud. FCA alleges the 4 individuals were involved with a London-based company called Bespoke Markets Group...
OFSI updates Russian sanctions guidance
The FCDO, OFSI and the ECJU have updated its guidance on the scope of the sanctions against Russia and when a licence might be available. The update caters for the most recent regulations (Amendment number 15), which...
Economic Crime and Corporate Transparency Bill continues Committee stage
The Economic Crime and Corporate Transparency Bill has had its 3rd, 4th and 5th sittings in the Public Bill Committee. It heard evidence from several regulators, industry organisations, financial institutions and...
FCA makes new rules
FCA’s latest Handbook Notice confirms changes to SUP 16 to reflect requirements on firms subject to IPRU(INV) 5. The changes take effect from 31 December and mainly amend form FSA035 for affected firms.
FSMB debate discusses crypto, net zero and regulatory independence
The debate on the FSM Bill resumed on 27 October. The Committee discussed, in the morning and afternoon sessions: Clause 21: the proposals for regulating stablecoins. The main question came from Tulip Siddiq who queried...
Wolfsberg Correspondent Banking Principles updated
The Wolfsberg Group has published its finalised updated financial crime principles for correspondent banking. The update from the 2014 version: looks at the differences between correspondent relationships and...
FCA seeks views on competition impacts of Big Tech
The FCA has published a discussion paper on the potential competition impacts that may arise from Big Tech firms’ entry and expansion into retail financial services sectors. It is seeking views on the emerging...
Government responds on access to cash in Scotland
The Government has responded to the Scottish Affairs Committee’s report on access to cash in Scotland, published in July. It notes, of course, that since the report, the FSMB, with its proposals for protecting...
FCA launches new webpage on Consumer Duty
The FCA has published a new webpage containing information on the Consumer Duty. The webpage, which will be kept up to date, currently contains guidance for firms on: implementation plans and the FCA’s...
FCA speech: Consumer Duty
Sheldon Mills (Executive Director, Consumers and Competition at the FCA) has delivered a speech on what firms and customers can expect from the Consumer Duty. Mr Mills stressed that, whilst the Duty is not yet in force...
Consumer Duty: FCA update and events
The FCA has published a new webpage on Consumer Duty, which outs out the timeline and key milestones for implementation and contains links to register for FCA webinars and email updates. You can also register to attend...
PRA updates rules on capital definition
PRA has published a policy statement updating its capital rules. Under the new rules and supervisory statement: PRA is replacing the UK Technical Standards for own funds requirements and replicated it in its Rulebook to...
PRA sets out changes for credit unions
The PRA is consulting on proposed amendments to the regulatory regime for credit unions, including: changes to the Credit Union Part of the PRA Rulebook – these include extending the range of products available for...
CMA issues directions to NatWest for bundling breaches
The CMA has issued directions to NatWest following the bank’s breach of undertakings which prohibited it from requiring SME customers which held certain bank loans to also hold business current accounts (BCAs)...
Consumer Duty: building an implementation plan
UK Finance has outlined four key elements firms should be focussing on when building their Consumer Duty implementation plans. These are: definition of the target end state as an input to the gap assessment – to define...
FCA consults on widening access to the LTAF
The FCA has outlined proposals to market the Long Term Asset Fund (LTAF) to a wider group of retail investors and pension schemes, whilst also introducing enhanced investor protections. Highlights include plans to:...