Following two consultations on its proposals, the FCA has confirmed its plans for a new Consumer Duty which will require firms to put their customers’ needs first. The FCA has a parliamentary mandate, via the...
Author - Emma Radmore
Emma Radmore
PRA and FSCS update MoU
The PRA and FSCS have published an updated Memorandum of Understanding which replaces the existing version implemented in 2019. The MoU outlines the framework agreed by the PRA and FSCS on how they will work together in...
FCA updates on Credit Information Market Study
Following a pause during the Covid-19 pandemic, the FCA restarted its work on the Credit Information Market Study in July 2021. The FCA has now provided an update on the timeline for the publication of its interim...
ECB speaks on using tech to tackle financial crime
Elizabeth McCaul, Member of the Supervisory Board of the ECB, has delivered a speech on how technology (particularly AI) can be used in the fight against financial crime. Ms McCaul discussed the relationship between...
Treasury Committee launches inquiry into cryptoassets
The Treasury Committee has launched a new inquiry into cryptoassets. The inquiry will cover the opportunities and risks that cryptoassets may bring to consumers, businesses and the government. It will also examine the...
BoE speech: lessons from the “crypto winter”
Sir Jon Cunliffe, BoE Deputy Governor – Financial Stability, has delivered a speech in which he set out what he thinks are the lessons from the recent instability and losses in crypto markets (also known as the...
PRA consults on approach to authorising and supervising insurance SPVs
The PRA is consulting on proposed changes to its approach to authorising and supervising insurance SPVs. The proposed changes include: changing the legal opinion expectation for non-English law governed contracts; and...
FCA publishes findings of SME collections and recoveries review
The FCA has set out the findings of its review on how retail banks treat SME customers who are in collections and recoveries. The FCA reviewed 11 retail banks which provide SME lending services, including BBLS, and...
FSB updates on international regulation and supervision of crypto activities
The FSB has published a statement on international regulation and supervision of cryptoassets activities. Highlights include: the FSB will continue to facilitate cross-border and cross-sectoral cooperation amongst...
ESMA consults on the DLT Pilot Regime
Following its call for evidence earlier this year, ESMA is consulting on draft guidelines on standard forms, formats and templates to apply for permission to operate a DLT market infrastructure. The proposed draft...
EIOPA consults on differential pricing practices in non-life insurance business
EIOPA is consulting a draft supervisory statement (SS) on differential pricing practices in non-life insurance lines of business. Differential pricing practices are those pricing techniques where consumers with a...
Upper Tribunal finds failings with crypto trader’s AML compliance
The Upper Tribunal (Tax and Chancery Chamber) has published its decision in Vladimir Consulting Ltd (VCL) v Financial Conduct Authority, in which it has analysed whether VCL’s approach to business was compliant...
PRA speaks on matching adjustment reforms under Solvency II
Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO, has delivered a speech on the reforms to the regulation of insurance providers. Mr Woods considered the industry reaction to the PRA’s discussion...
Treasury appoints new FCA Chair
Following its recruitment campaign, HM Treasury has announced the appointment of Ashley Alder as the new FCA Chair for a 5 year term. Mr Alder is currently Chief Executive Officer of the Securities and Futures...
PRA makes final rules on definition of insurance holding company
Following its consultation last autumn, the PRA has published a policy statement which sets out its approach to interpreting and applying the definition of “insurance holding company” for the purposes of the...
Draft Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022 published
Treasury has published a draft version of the Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022, which make a variety of amendments to allow retained EU legislation to operate effectively after...
FCA publishes rules to protect investors in authorised funds following the invasion of Ukraine
Following its consultation earlier this year, the FCA has published final rules and guidance to allow authorised fund managers to create side pockets for retail investment funds affected by the Russian invasion of...
FCA board discusses Consumer Duty
The FCA has published the minutes of a board meeting held on 26 May 2022 at which, amongst other items, the board discussed the new Consumer Duty. Highlights include: feedback from external stakeholders on the proposed...
FCA appoints 6 new directors
The FCA has appointed six new directors to a mixture of existing and newly created senior roles: Director of Consumer Finance – Roma Pearson will take up her position in July and will be responsible for the supervision...
PRA sets fees and levies for 2022/23
Following its consultation in the spring, the PRA has published a policy statement to confirm the final regulated fees and levies rates for 2022/23. The rates meet the PRA’s annual funding requirement for the...
PSR updates on card-acquiring market review
Following its initial consultation, the PSR has now published its provisional decision in relation to remedies for the card-acquiring market review. The PSR has launched a second consultation on proposals for three...
FOS publishes annual complaints data for 2021/22
FOS has published its annual complaints data for April 2021 – March 2022. Highlights include: FOS received 165,263 new complaints which is a decrease on the previous year (279,146). Of these, there were 5,369 PPI...
FCA publishes regulated fees and levies for 2022/23
The FCA has published its final periodic regulatory fees and levies for 2022/23 including feedback on CP22/07. The FCA will invoice fee-payers from July 2022 onwards for their 2022/23 periodic fees and levies.
Update: the future of UK financial services regulation
The Treasury Committee has published a report outlining its plans to launch a new Sub-Committee to scrutinise regulatory proposals for financial services. The Sub-Committee will be chaired by the Rt. Hon. Mel Stride MP...
FCA seeks retrial in insider dealing case
Following the Court’s decision to discharge the jury after they were unable to reach a verdict following an 8-week trial, the FCA has announced that it will pursue a retrial of Stuart Bayes and Jonathan Swann for...
EU Council agrees position on proposed changes to Solvency II
The Council of the EU has agreed its position on the proposed amendments to the Solvency II Directive. The agreed position: should ensure a balanced review of the SII prudential framework in terms of capital...
PRA speech: competition, productive investment and Solvency II Review
Charlotte Gerken, PRA Executive Director – Insurance, has delivered a speech on the goals of competitiveness and productive investment and their role in the Solvency II Review. Highlights include: investment flexibility...
Law Commission sets out proposals for corporate criminal liability reform
Following a request by the government to carry out a review of the law on corporate criminal liability, the Law Commission has now published ten options for reforming how companies are convicted of criminal offences...
FCA publishes quarterly consultation
The FCA’s latest quarterly consultation covers: a minor amendment to DEPP to reflect changes to the FCA’s decision-making processes implemented on 26 November 2021; amendments to the Compensation rules relating to...
Solvency II review updates
The PRA has launched the 2022 data collection exercise for the Solvency II review, primarily in support of the matching adjustment (MA) and fundamental spread (FS) calibration reforms. The exercise will cover three main...
FCA proposes further reforms to the listing regime
FCA has published the feedback to its discussion paper on proposed reforms to improve the effectiveness of UK primary markets and the listing regime. In a second discussion paper, published alongside this feedback, the...
PSR sets out proposals for further participation in CoP
In continuation of its delivery of Confirmation of Payee (CoP), the PSR is consulting on proposals to require a further c.400 PSPs to offer CoP to their customers (both as payers and payees). The PSR is proposing that...
Update: Measuring value for money in DC pension schemes
The FCA and the Pensions Regulator (TPR) have published the feedback they have received following their joint discussion paper on developing a framework for measuring value for money (VFM) in defined contribution (DC)...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
FOS launches webpage on vehicle breakdown cover
FOS has published a new webpage which sets out information for firms on handling and resolving complaints about vehicle breakdown cover. The webpage explains the types of complaint FOS sees, provides a summary of how...
PSR takes action against banks for non-compliance with the IFR
PSR has taken action against NatWest, RBS, Ulster Bank and Coutts for failing to comply with the Interchange Fee Regulation. The banks incorrectly treated a number of cards as being ‘commercial’ when they should have...
FCA highlights the risks of investing in crypto
The FCA has issued a statement following some recent social media posts regarding cryptoassets and NFTs. Whilst it cannot comment on individual products, it has warned consumers that there are no consumer protections...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
Government sets out approach to APP scam reimbursements
HM Treasury has published a policy paper outlining how the government and PSR intend to improve the reimbursement of APP scam victims. The government intends to legislate in the Financial Services and Markets Bill to...
FMSB is changing its name
FMSB has announced that it is changing its name from the FICC Markets Standards Board to the Financial Markets Standards Board. It will continue to use “FMSB”. FMSB says the change will help support...
FCA launches new IFPR webpage
The FCA has launched a new webpage which sets out how to submit MIFIDPRU applications and notifications. It also includes information for IFPR firms about MIF returns.
FCA warns firms to stop using misleading credit ads
The FCA has written to c.28,000 consumer credit firms warning them not to use terms such as ‘no credit check loans’, ‘loan guaranteed’, ‘pre-approved’ or ‘no credit...
FCA publishes investment platforms market study findings
As part of its Investment Platforms Market Study in 2019, the FCA said it would keep the role of platforms in helping consumers understand their investment costs under review. The FCA has now published a new webpage...
Treasury consults on reforms to Solvency II
HM Treasury has published its consultation on post-Brexit reforms to the Solvency II regime which it hopes will unlock investment, increase market access for new insurers and offer greater consumer choice. The reforms...
Government sets out approach to protecting wholesale cash infrastructure
HM Treasury has published its policy statement on protecting UK wholesale cash infrastructure. The government intends to create an oversight regime which will: give the BoE oversight over, and the ability to regulate...
PRA poses alternative approach to bank capital requirements
PRA CEO, Sam Woods, delivered a speech at City Week 2022 in which he set out “a radical, alternative approach” to bank capital requirements. The proposed approach would involve: a single capital buffer...
Funeral plans update: RAO amendments made
The FSMA (Regulated Activities) (Amendment) Order 2022 has been published, together with an explanatory memorandum. It makes several amendments to FSMA and secondary legislation, primarily the RAO, in preparation for...
PRA updates on Gibraltar passporting
The PRA has confirmed that the transitional passporting rules will continue for firms operating between the UK and Gibraltar until 31 December 2022. These transitional arrangements can be further extended until the...
FOS publishes complaints data from H2 2021
Between 1 July and 31 December 2021, FOS received a total of c.73,200 complaints of which 37% were upheld.
FOS has also published its latest half-yearly data on the number of complaints received about CMCs.
Regulators provide update on joint transformation programme
BoE and FCA are working to transform data collection from the UK financial sector through the joint transformation programme that has been set up with industry. The regulators have provided an update on the...
PRA updates on capital arbitrage transactions approach
The PRA has issued a statement acknowledging that some PRA-regulated firms have conducted (or may be considering doing so) deficit reduction transactions with their defined benefit pension schemes that are structured to...
Chancellor outlines climate change recommendations for the regulators
Rishi Sunak has written to the FCA and the BoE setting out recommendations in relation to the government’s commitment to achieve net zero by 2050 to supplement those outlined in his letters of March 2021. The...
Lords Committee writes to Treasury on commercial insurance and reinsurance regulation
Lord Hollick, Chair of the Industry and Regulators Committee, has written to John Glen following Mr Glen giving evidence to the Committee’s inquiry into commercial insurance and reinsurance regulation. Amongst...
UK gearing up to be a global cryptoasset technology hub
Alongside Treasury’s decision to regulate stablecoins, the government has announced wider plans to make the UK a global hub for cryptoasset technology and investment. In a speech delivered at the Innovate Finance...
FSCP backs FCA’s plans to strengthen fin prom rules for high risk investments
The Financial Services Consumer Panel (FSCP) has published its response to the FCA’s consultation on how to improve its financial promotion rules for high risk investments, which closed on 23 March. The FSCP...
MEPs vote on draft crypto legislation
MEPs from ECON and the Committee on Civil Liberties have voted to adopt their position on draft crypto legislation which forms part of the EU’s wider package of measures aimed at strengthening AML/CFT rules in the...
Ombudsman News looks at storm damage
The latest edition of Ombudsman News from FOS covers not only its plan and budget for 2022/23 (which FIN has covered separately) but also guidance for consumers about storm damage complaints. The guidance contains...
FOS outlines strategic plans for 2022/23
FOS has published its plans and budget for 2022/23. In the coming year, FOS: expects to receive 177,000 complaints and resolve 220,500 complaints; will continue to ensure it is equipped to respond to complexity and...
FCA confirms changes to PRIIPs regulation
Following its consultation in 2021, the FCA has confirmed it is making changes to the PRIIPs regulation to: clarify the scope of the PRIIPs regulation for corporate bonds, making it clearer that certain common features...
ESMA extends recognition decisions for UK CCPs
ESMA has announced that it has decided to extend the application of the recognition decisions under Article 25 of EMIR for three CCPs established in the UK. As such, the recognition and tiering decisions in relation to...
ASA cracks down on misleading crypto ads
ASA has issued an Enforcement Notice to over 50 firms which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated...
BoE to consult on Basel 3.1 at end of 2022
BoE has confirmed that it is continuing to develop proposals to implement Basel 3.1, following the two PRA policy statements of 2021. It notes that the timing of implementation was dependent on a number of factors, not...
Treasury and FCA discuss regulatory perimeter
The government has published a summary of the 15 December 2021 meeting between John Glen and Nikhil Rathi in which they discussed FCA’s Perimeter Report (published 21 October 2021). The meeting focussed the topics...
FOS award limits increased
FCA has confirmed the increase to the FOS award limits. From 1 April 2022, these will change to: £375,000 for complaints referred to FOS on or after 1 April 2022 about acts or omissions by firms on or after 1 April...
Government introduces Online Safety Bill to parliament
The government has agreed to make changes to the Online Safety Bill and has now introduced the Bill into the Commons. The government has also responded to the Joint Committee on draft Online Safety Bill’s report...
Final Report on UK Payments Regulation Review
UK Finance has published its final report on the regulation of UK payments. The UK enjoys a robust and successful regulatory and supervisory regime for payment services and payment systems. However, the degree of...
HM Treasury publishes ringfencing Review
In 2020, the Treasury appointed an independent panel to: review the operation of the legislation related to ring-fencing; and review banks’ proprietary trading activities following a statutory report from the PRA...
European Commission adopts RTS on disclosure of firms’ investment policy under the IFR
Following the EBA’s publication of draft RTS last year, the European Commission has now adopted a Delegated Regulation containing RTS on the disclosure of firms’ investment policy under the IFR. Article 52...
CAT determines the ‘domicile date’
CAT has published its Judgment giving further guidance on the ‘domicile date’, which is the date specified in a CPO. The domicile date operates to determine the persons who fall within the class definition...
Fraud Act Committee launches call for evidence
The House of Lords Committee on the Fraud Act 2006 and Digital Fraud has launched a call for evidence on what measures should be taken to tackle the increase in fraud cases. In particular, the Committee would like to...
LSB sets its agenda for 2022
The latest LSBulletin outlines some of the LSB’s key areas of focus for 2022, including: Contingent Reimbursement Model Code (CRM Code) for APP scams – the LSB will be conducting follow up work from its previous...
Treasury publishes response to Wholesale Markets Review consultation
HM Treasury has published the response to the Wholesale Markets Review consultation, setting out the feedback received and outlining how the government plans to take forward the various proposals. A full breakdown of...
Treasury makes further changes following introduction of IFPR
HM Treasury has published The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2022. This draft...
FCA makes new rules
The FCA’s latest Handbook Notice confirms changes to: apply the rules set out in the Funeral Planning Conduct of Business (FPCOB) sourcebook to funeral plan providers selling their own plans directly to customers...
FCA launches webpage on branch and ATM closures
The FCA has published a new webpage on bank branch and ATM closures or conversions. The webpage sets out examples of good and poor practice that the FCA has seen when supervising firms planning branch or ATM closures...
FCA responds to APPG letter before claim
The FCA has responded to a letter before claim under the pre-action protocol for judicial review from the All Party Parliamentary Group on Fair Business Banking (APPG). APPG’s letter before claim refers to the...
Treasury sets out bold reforms to Solvency II
Economic Secretary to the Treasury, John Glen MP, has delivered a speech to the Association of British Insurers Annual Dinner which set out bold reforms to Solvency II. The proposed reforms include: a substantial...
Commission consults on improving retail investing in the EU
The European Commission has launched a targeted consultation on a new approach to retail investments in the EU. The consultation builds on the 2021 consultation on the Commission’s retail investment strategy for...
Article: a new arena for asset financing?
Following the administration of Arena Television in November 2021, our colleagues Graham Jeffries and Nicola Walker have written an article looking at the likely impact for lessees and borrowers who are seeking to...
UK Finance publishes response on Consumer Duty
UK Finance has published its response to the FCA’s second consultation on proposals for a new Consumer Duty. UK Finance welcomes the changes FCA has made since its first consultation (in particular dropping the...
FCA updates on funeral plans
The FCA has published a statement on assessing authorisation applications from funeral plan providers. The assessment process is to ensure that: firms sell products which offer fair value, meet consumer needs and are...
Final report: London Capital & Finance
The Complaints Commissioner has published its final report on the FCA’s oversight of London Capital & Finance plc (LCF). The report splits the complaints about FCA’s regulation of LCF into three...
Regulators due to give evidence on future of financial services
Sheldon Mills (Executive Director, Consumers and Competition at FCA) and Vicky Saporta (Executive Director, Prudential Policy Directorate at PRA) are due to give oral evidence at the Future of Financial Services Inquiry...
ESMA Sustainable Finance Roadmap 2022-2024
ESMA has published a roadmap setting out three priorities for its sustainable finance work in 2022-24: Tackling greenwashing and promoting transparency; Building NCAs’ and ESMA’s capacities in the sustainable finance...
FCA consults on new rules for pensions providers
FCA is consulting on new rules requiring FCA regulated pension providers to connect and supply information about personal and stakeholder pensions to pensions dashboards. Pensions dashboards are secure digital...
FCA orders firm to remove influencer ads
FCA has published a second supervisory notice to confirm that it is not rescinding the directions imposed on Freetrade Limited in its first supervisory notice dated 14 December 2021. Freetrade must therefore immediately...
FSMA 2000 (Exemption) (Amendment) Order 2022 published
The Order amends the list of persons in Part IV of the Schedule to the FSMA 2000 (Exemption) Order 2001 to include Norges Bank, the Norwegian central bank. The amendment means that Norges Bank will be exempt from the...
Treasury launches search for new FCA Chair
Treasury has launched the recruitment campaign to appoint the next FCA Chair, replacing Charles Randell who is stepping down in spring 2022. Richard Lloyd, FCA’s Senior Independent Director, will be interim Chair...
ESMA briefing: the use of tied agents under MiFID II
ESMA has published a supervisory briefing setting out: the supervisory expectations when firms appoint tied agents; and the supervisory expectations on firms using tied agents in their ongoing activities. The briefing...
CMA writes to Monzo on RBO breach
The CMA has written to Monzo about its breach of the Retail Banking Market Investigation Order 2017. Monzo breached the Order when it failed to disclose its Monthly Maximum Charge in its Fee Information document between...
EIOPA consults on retail investor protection
EIOPA is consulting on retail investor protection in relation to the sale of insurance-based investment products (IBIPs). The proposals cover five different areas: Enhancing consumer engagement with disclosures...
Onerous or essential: expectations on banks to tackle APP fraud
In this article, Stephen Dilley and Rasmita Roy Chowdury look at the history and case law on duties of banks and APP frauds.
FCA consults on fin prom rules for high risk investments
The FCA is consulting on strengthening its financial promotion rules for high risk investments including cryptoassets, and for authorised firms which approve and communicate financial promotions. The proposals, which...
FCA publishes new MIFIDPRU webpage
FCA has published a new webpage on how the MIFIDPRU Remuneration Code (SYSC 19G) applies to MIFIDPRU Investment firms. The webpage gives an overview of the Code and provides information on proportionality, performance...
PRA sets out supervisory priorities for 2022
The PRA has sent Dear CEO letters to PRA-regulated international banks, insurance firms and UK deposit-takers setting out its supervisory priorities for 2022. For banks, the PRA’s priorities relate to: Financial...
FCA provides update on the Woodford investigation
The Treasury Committee has published correspondence with the FCA in relation the FCA’s investigation into the collapse of the LF Woodford Equity Income Fund. In its update letter, the FCA advises that all key...
FCA outlines new authorisation fee structure
The FCA has set out the new structure for authorisation application fees which takes effect on 24 January 2022. The current charges are being condensed into 10 simple pricing categories and the following additional...
UK Finance responds on BNPL consultation
UK Finance has published its response to HM Treasury’s consultation on the regulation of BNPL products. The response shows that there is a consensus amongst UK Finance members: that BNPL products should be brought...
Insurance Europe responds to ESMA call for evidence
Insurance Europe has published its response to ESMA’s call for evidence on aspects of retail investor protection. Key points in the response include: insurance-based investment products (IBIPs) account for c.90%...
FCA updates TPR information for payment firms
The FCA has updated its webpage on cancelling temporary permissions to include information for payment services and e-money firms in the TPR or the supervised run-off (SRO) regime. FCA has also published new forms for...