The latest Companies House business plan includes details of its plans relating to ECCTA compliance over the next year. These include: prioritising removing inaccurate information on registers, including querying and...
Author - Emma Radmore
Emma Radmore
FCA consults on enhancing the National Storage Mechanism
Following the announcement earlier this year that it would be refreshing the National Storage Mechanism (NSM), the FCA is now consulting on proposals to change the requirements for submitting regulated information to...
UK Finance responds on MLRs
The UK Finance response to the Treasury consultation on improving the effectiveness of the MLRs notes that there are some parts of the existing regulations that are unhelpful in that they: drive tick box compliance; or...
FCA consults on workplace pensions value for money
The FCA, DWP and the Pensions Regulator are planning a joint framework that pension providers and adviser could use to see more transparently how schemes are performing. They propose to compare schemes based on public...
FCA updates on operating metrics
The FCA quarterly authorisations metrics for the quarter to June 2024 shows 12 green, 4 amber and 1 red metric. The FCA says 98% of all applications were determined within the statutory deadline and that the red metric...
Asset manager to pay €250m to investors in high risk investments
The FCA has announced that H2O AM LLP is to pay €250m to investors who have been unable to access their funds for 4 years after the firm failed to carry out proper due diligence on certain introduced investments...
Investment Association reports on climate and nature policy
The Investment Association has published its latest “Financing Transition” report, which outlines its approach to climate change and nature-related policy. Key commitments include: supporting credit...
Unauthorised mortgage broker to pay £4m
The FCA has secured an order of £4m in the High Court against two firms under the directorship of one individual, which respectively arranged mortgages and bought properties and rented them back to the sellers. Neither...
FSR Committee restarts and reopens inquiries
The House of Lords has reappointed the Financial Services Regulation Committee which had originally been created in 2024. The reappointed Committee will now continue the inquiries that were ongoing before the election...
FCA refuses application on fit and proper concerns
The FCA has published a decision notice setting out its intention to refuse to authorise an applicant firm Ancean Limited, whose sole director and proposed sole approved person would be an individual who was previously...
New sanctions list search function
The FCDO has launched a new search function which allows users to more easily find information relating to designated persons on the UK sanctions list. The search function does not remove an individual or entity’s...
PSR publishes APP scams performance report
The PSR has published the APP scams performance report for 2023. Highlights from the report show: over 250,000 reports were made in 2023, with scams totalling over £340m; reimbursement rates have increased while fraud...
New FCA webpage on UK UCITS ManCo applications
The FCA has launched a new webpage setting out how firms can apply to become a management company (ManCo) for a UK UCITS. The webpage contains information on permissions, prudential requirements, and application fees...
The challenges facing low-value data breach claims
We have written an article on the case of Farley v Paymaster, which looks at how the courts are increasingly viewing exaggerated data breach claims brought for alleged distress.
IEO makes recommendations on new PRA competitiveness and growth objective
The BoE’s Independent Evaluation Office (IEO) has published its evaluation of the PRA’s approach to its new secondary competitiveness and growth objective (SCGO). The IEO is pleased that the PRA has invested...
Law Commission publishes draft “third category” proposals
The Law Commission has published a supplemental report on digital assets as personal property, and a draft Bill to confirm the existence of a third category of personal property into which certain digital and other...
BoE and PRA publish whistleblowing figures
The BoE and PRA have published their annual report on whistleblowing in the last year (to end March 2024). During that period they received 240 disclosures of which 228 could properly be categorised as protected...
FCA to extend DCA complaint “pause” period
The FCA plans to extend the “pause” to the time firms have to respond to complaints about motor finance involving discretionary commission arrangements., to 4 December 2025. It says it has taken longer than...
FCA reports on secondary objective progress
The FCA has published the required metrics on the success of its secondary international competitiveness and growth objective. It has split the metrics into the themes of: authorisations and operational efficiency:...
NCA and banks launch data sharing project
The NCA has announced a partnership with 7 banks under which the banks will provide the NCA with account data that could suggest criminality. The banks and investigators will analyse the data to help inform both the...
FCA seeks views on insurance regulation
The FCA has published a discussion paper on the regulation of commercial and bespoke insurance business. It is seeking views on whether its current rules for commercial insurance products strike the right balance...
PRA finalises expectations on funded reinsurance
Following its consultation, the PRA has finalised its expectations in respect of insurers entering into or holding funded reinsurance (FundedRe) arrangements as cedants (SS5/24). The PRA has also issued a Dear CEO...
Court clarifies extent of POCA “adequate consideration” defence
The Court of Appeal has overturned a High Court ruling on the ongoing effects of using the “adequate consideration” defence when acquiring the proceeds of crime. The World Uyghur Congress had challenged a...
PRA publishes PS on approach to rule permissions and waivers
The PRA has published the final version of its SoP on its approach to rule permissions and waivers. It received 4 responses to its consultation, but has not made any change to the consultation draft following these...
CMA takes action under Retail Banking Order
The CMA has taken action against 4 banks for breach of the requirements of the Retail Banking Market Investigation Order 2017. HSBC, Lloyds, TSB and AIB failed to make correct data on their products and services...
FCA fines E-money firm £3.5m
The FCA has fined CB Payments Limited, an EMI which is part of the Coinbase Group, £3.5m for repeated breach of a requirement restricting it from offering services to high risk customers. The firm does not itself...
UK Finance says one third of UK adults use mobile contactless payments
UK Finance’s Payment Markets Report for 2023 shows an increase in payments of 5%, with 38% of all payments being contactless, and with one third of UK adults using mobile contactless payments at least once a month...
PSR finalises exemptions and extensions guidance
The PSR has finalised its guidance on how it makes decisions on whether to grant extensions and exemptions to specific directions or requirements. Among the things the PSR will consider when it receives a request are:...
Regulators update on BSPS actions
The FCA, FOS and FSCS have published a report looking at the actions taken and results from the BSPS Redress Scheme exercise, as it comes to an end. Overall: £8.7m has been paid out by firms or the FSCS (significantly...
FCA publishes final rules on protecting access to cash
In December, the FCA used its powers under FSMA 2023 to consult on new rules to require designated banks and building societies to assess gaps in access to cash and act to fill them. The FCA has now published the...
FOS publishes ADR annual activity report
The FOS has published the annual figures for reports it received in the year to 8 July, It notes the figures don’t include complaints brought by businesses but may include some brought by charities and trustees...
Bond administrator enters liquidation
The FCA has announced the liquidation of London Court Limited, a bond administrator and ISA manager. The firm had been restricted from doing any new business since August 2023 after the FCA determined that the firm had...
FCA updates whistleblowing data
The latest whistleblowing data from the FCA, covering the quarter to end June 2024, shows: 253 new reports received (fewer than the corresponding period last year and the last quarter), with nearly half of reports made...
Court considers “reasonable cause to suspect” for sanctions purposes
The High Court has considered what would be “reasonable cause” to suspect in the context of funds or economic resources being owned or controlled by a designated person for the purposes of the financial...
FRC announces Stewardship Code changes
The FRC has announced major revisions to the UK Stewardship Code. It is making 5 immediate changes and has committed to a wider review. The key changes: will remove the “context” reporting expectations...
Government responds on Special Resolution Regime enhancements
The Government has published its response following its consultation on enhancing the Special Resolution Regime and the Bank Resolution (Recapitalisation) Bill has now started its Parliamentary Passage. Respondents were...
FCA consults on updates to PEPs guidance
Following recent changes to the MLRs and its PEP review, the FCA is consulting on changes to its guidance for firms on applying a proportionate and risk-based approach to UK PEPs, their relatives and close associates...
FMLC asks HM Treasury to clarify MLRs 2017
The Financial Markets Law Committee (FMLC) has written to HM Treasury asking it to clarify areas of legal uncertainty relating to the MLRs 2017. The FMLC considers that the continued reference to the EU CRD Annex 1...
Travel insurance complaints at highest level since Covid
The FOS has announced that it received 4,466 complaints about travel insurance in the financial year 2023/24, a 19% increase on the previous year. The only time that figure has been higher in the last 10 years was when...
PRA updates on dynamic insurance stress test
The PRA has published a statement setting out further information on the dynamic general insurance stress test (DyGIST) that it intends to run in 2025. As a reminder, the objectives of DyGIST are to: assess the UK...
FOS publishes annual complaints data for 2023/24
FOS has published the annual complaints data for the 2023/24 financial year. Most notably, complaints about the banking sector are at their highest level in at least a decade. In the last financial year, consumers...
BoE publishes Q2 Credit Conditions and Bank Liabilities Surveys
The BoE has published the results from its quarterly survey of banks and building societies looking at credit conditions in the quarter to the end of May 2024. As usual, the survey covers: secured and unsecured lending...
OFSI updates Human Rights sanctions guidance
OFSI has updated its guidance on the Global Human Rights Sanctions Regulations to include guidance on how designated persons are subject to the director disqualification regime.
PRA publishes Life Insurance Stress Test approach
The PRA has published a set of documents setting out its approach to the 2025 Life Insurance Stress Test. The test will apply to UK life insurers active in the bulk purchase annuity markets and will contain a core...
PRA updates on Solvency UK
Gareth Truran of the PRA has given a speech in light of the updated Matching Adjustment regime for insurers going live on 30 June. He said insurers now have all they need to use the Solvency UK reforms to support their...
FCA quarterly consultation plans criminal background checks
FCA’s most recent quarterly consultation includes proposals on: carrying on criminal background checks on owners and controllers at the authorisation gateway. The FCA currently conducts these checks using a risk...
SME banking 2002 undertaking report
The CMA has published the 2023 audit report into whether 8 UK banks are complying with undertakings they gave in 2002 not to bundle loans and accounts for SMEs. The 8 banks currently subject to the undertakings have...
CBI survey shows continuing sector growth
The CBI’s most recent quarterly survey shows that financial services business volumes continue to grow. Business volumes grew in Q2 2024 and are expected to rise at an even faster rate in the coming quarter. The...
BoE updates on data and analytics strategy
The BoE has provided an update on its data and analytics strategy, aimed at making it easy for everyone at the BoE to work with and analyse data which should lead to many benefits including more effective decision...
PRA publishes final rates for 2024/5
The PRA has published its feedback to the consultation on next year’s rates and the finally set rates. It received only 2 responses to its consultation and the new rules now take effect on 9 July.
PRA updates on skilled persons reports
The PRA commissioned 6 skilled persons reports in Q4 2023/24. 5 related to credit institutions and one to insurers, and all but one related to controls and risk management frameworks.
FCA updates crypto application stats
The FCA has updated its statistics on crypto applications. In the month to 1 July, it received 2 applications, determined none, but one was withdrawn.
DEI in financial services: can regulators shift the dial?
We have written an article for Compliance Monitor on the impact of the Sexism in the City report and the reaction of the financial regulators to it.
FCA makes final fees rules
The FCA has published its final fees and levies for 2024/25. It has made minor changes to the amounts it consulted on. One of the most contentious proposals had been that it would split the costs for its cryptoasset...
TFND updates guidance
The Taskforce on Nature-related Financial Disclosures has announced a significant increase in take up in adopting its standards, and has updated and published new guidance for several sectors. The updates include...
FATF adds 2 countries to high risk list
Outputs from the last FATF plenary meeting to take place under Singapore’s presidency included: adding Monaco and Venezuela to its list of jurisdictions subject to increased monitoring and removing Jamaica and...
New FCA webpage on overseas ARs
The FCA has published a new webpage which sets out expectations for firms with overseas appointed representatives (OARs). In particular, principal firms should consider whether customers dealing with an OAR will receive...
FCA to run Consumer Duty webinar
The FCA is hosting a webinar on 31 July 2024 to mark one year since the implementation of the Consumer Duty. It will focus on: the impact the Duty has had in its first year; examples of good practice and areas for...
BoE publishes scenarios for the 2024 stress test
BoE has published the scenarios that will be used in its 2024 desk-based stress test. The exercise will test the resilience of the banking system (firms that account for c.75% of the sector’s lending to the UK...
FCA publishes product sales data
The FCA has published a breakdown of the product sales data it has collected from firms in the period 1 January 2019 to 31 December 2023. The data covers firms operating in the mortgages, retail investments and...
FPC publishes policy summary
BoE has published the FPC’s latest financial summary and record. Key points to note are: global growth is projected to rise in the medium term, although several risks to that outlook remain; improved transparency...
FCA updates on Consumer Duty board reports
The FCA has updated its Consumer Duty – information for firms webpage to include further detail around annual board reports. From July the FCA will be reviewing a broad sample of firms’ board reports and...
EBA welcomes new EU AML/CTF framework
The EBA has published a statement setting out its AML/CTF priorities for 2024/25. It will focus on: a methodology for selecting financial institutions for direct EU-level AML/CTF supervision; a common risk assessment...
FCA publishes findings from insurance multi-firm Consumer Duty review
The FCA has published the key findings from its review of 20 larger insurance firms’ approaches to outcomes monitoring under the Consumer Duty. These included general insurers, life insurers, intermediaries and...
IAIS consults on achieving fair treatment for diverse consumers
The International Association of Insurance Supervisors (IAIS) is consulting on a draft application paper on how to achieve fair treatment for diverse consumers as part of its DEI work. The paper does not introduce any...
FCA bans individuals for mistreatment of customer funds
The FCA has taken action against 3 individuals who were involved in running SVS Securities Plc, a discretionary fund manager. SVS used a complex business model intended to maximise the flow of customer funds into high...
FCA keeping trading apps under review
The FCA has carried out an online experiment involving over 9,000 consumers, involving a trading platform app that the FCA created. It wanted to test the effect of different digital engagement practices on trading...
Wolfsberg Group responds on MLR review
The Wolfsberg Group has responded to the Treasury consultation on improving the effectiveness of the MLRs. Among the key points in its detailed submission are: that an effective AML/CTF framework includes discontinuing...
FCA delays publication of PEP treatment review
The FCA had been due to publish the findings from its review of the treatment of PEPs by regulated firms at the end of June, as required by FSMA 2023. However, it does not think it appropriate to do so in the run up to...
Individual takes action against Revolut for APP fraud
Mr Larsson brought claims against Revolut, following payments it accepted that resulted from an APP fraud on Mr Larsson. Mr Larsson was a Revolut customer, but the payments in question were made by him from his account...
Court rejects application for JR review of FOS decision
The Court has dismissed an application made by Linear Investments Limited for judicial review of a FOS decision. The FOS had heard that a customer of Linear (Professor W) was an eligible complainant under its rules...
FCA updates on finfluencer trial
Following the FCA’s decision to charge 9 “finfluencers” in relation to promotions of an unauthorised FX trading scheme on social media, it has updated that three individuals have pleaded not guilty...
Labour manifesto proposes Regulatory Innovation Office
Part of Labour’s manifesto proposes a new Regulatory Innovation Office, which will bring together existing functions to help regulators better deal with the development of new technologies, specifically AI. It...
Green Party proposes mutual banks to drive decarbonisation investment
Of relevance to financial institutions in the Green Party manifesto are proposals to create regional mutual banks to drive investment in decarbonisation and local economic sustainability.
FCA bans individual for failing to disclose conviction
The FCA has banned Graham Lilley, formerly an authorised sole trader, from carrying on any regulated activity carried on by any person and has cancelled his permissions. It discovered that Mr Lilley had been convicted...
FCA clarifies open banking expectations relating to run off firms
The FCA has updated its information page on firms in the Contractual Run Off scenario following Brexit. It has clarified that ASPSPs are not obliged to provide CRO firms with access to payment accounts given that CRO...
FOS confirms proactively settled complaints to continue
The FOS has confirmed that the trial of the “proactive settlement” system that allows firms to offer to settle complaints before a full FOS investigation has worked well, and will continue. It has, though...
Conservative manifesto highlights fintechs
The Conservative Manifesto, published on 11 June, contains few surprises for financial regulation. It priorities: building on the various co-operation agreements it has already signed, including with the EU and...
FCA shares latest Mortgage Charter uptake data
The FCA has reported that there are now 49 signatories to the Mortgage Charter, and that the signatories represent about 90% of the mortgage market. The latest data suggests that well over 1m mortgages benefited from...
Regulators publish Wider Implications Framework Annual Report
The 2023/24 Wider Implications Framework Annual Report from the FCA, FOS, FSCS, TPR and MaPS notes that during the period the report covers, the new duty in FSMA 2023 on the FCA, FOS and FSCS to cooperate on issues that...
AFME proposes more clarification in MLRs
The response of the Association for Financial Markets in Europe to the Treasury consultation on improving the effectiveness of the MLRs. AFME draws out as particularly important: the need for greater clarity on what is...
Lib Dem manifesto prioritises financial inclusion
The Liberal Democrat manifesto, published on 10 June, includes several commitments in relation to the financial services sector, such as: expanding the British Business Bank to perform a more central role in the...
City of London Corporation looks at AI and the workforce
The City of London Corporation and KPMG have published a report looking at the expected increases in demand for and productivity resulting from the use of AI in financial and professional services. The report says there...
PRA finalises matching adjustment changes
The PRA has published its feedback on responses it received to its consultation paper on reform of the Solvency II Matching Adjustment, together with new rules, supervisory statements and statements of policy and...
Tenet firms enter administration
The Tenet Group Limited is winding down its operations, which has now resulted in two of its hosting firms entering administration. The firms closed to new business at the end of March, and most of their advisers either...
FCA speaks on investment management
Nikhil Rathi has spoken on the importance of the UK keeping its leading position in global asset management. He discussed current international initiatives such as: liquidity risk management, particularly for open ended...
City Corp and Climate Policy Initative report on progress to net zero
A research report from the City of London Corporation and the Climate Policy Initiative looks at the significant progress financial services firms have made in efforts to address climate change. They say increasing...
Building societies amendment law published
The Building Societies Act 1986 (Amendment) Act 2024, which was voted through in the Parliamentary wash-up process, has been published. It will take effect from 24 July and will: amend the funding limit restrictions to...
Chris Hemsley to leave PSR
Chris Hemsley is standing down as managing director of the PSR from 7 June to take up another position. David Geale will take over as interim managing director, having been director of retail banking at the FCA and...
SMEs reminded to register complaints before BBRS closure
The BBRS has reminded all eligible SMEs who have a banking complaint to be sure they register it before the BBRS closes to new registrations at the end of 2024. Eligible SMEs are those who are above FOS thresholds but...
EU adopts new AML package
The Council of the EU has adopted the new AML package, which will comprise a new Regulation which takes in and updates all AML requirements on the private sector, a new Directive which sets out both how national FIUs...
FCA sustainability disclosure and labelling regime takes effect
The FCA’s new anti-greenwashing rules and guidance took effect on 31 May. Firms must make sure any claim about the sustainability of their products and services is clear, fair and not misleading. They should also...
Pay.UK delighted with Fraud Detection Pilot
Pay.UK’s new fraud detection pilot has shown an average increase in detection of 40%, with over £112m of fraud detected. The pilot was confirmed a year ago and ran for 3 months. Pay.UK says the new overlay service...
UK Finance publishes financial services manifesto
UK Finance has set out what it considers should be the next government’s key financial services priorities. These include: reviewing personal savings allowances; focus on financial education through the schools...
PSR updates card-acquiring services directions
The PSR has updated its 2022 directions relating to card-acquiring services. The original directions were issued to the 14 most significant service providers. After consultation, the PSR has updated the list to be sure...
Alternative Investment Funds Designation Bill dropped
The Alternative Investment Funds Designation Bill, a private members’ Bill looking to remove Listed Investment Companies from the scope of the definition of an AIF, did not survive the Parliamentary wash-up...
Court decides fiduciary duty can be owed even where no negligence
A Court has dismissed a claimant’s claim for damages for negligent financial advice but has upheld a claim for breach of fiduciary duty in respect of commission paid to the adviser. The Claimant, Mr McHale, has...
Committee stops accepting FCA enforcement evidence
The Financial Services Regulation Committee is no longer accepting evidence on the FCA’s enforcement proposals following the prorogation of Parliament on 24 May. Its website says that any committees appointed...
FCA publishes operational resilience tips
The FCA has published its observations on firms’ preparations for complying with its operational resilience rules by 31 March 2025. The rules apply to dual regulated firms as well as RIEs, enhanced scope SMCR...