The FCA has issued a notice requiring regulated Lloyd’s Managing Agents, London Market Insurers (including P&I Clubs), and Lloyd’s and London Market Insurance Intermediaries (and Managing General Agents)...
The PRA has issued a Consultation Paper (CP2/24) outlining proposals for PRA-regulated insurers to prepare for an orderly ‘solvent exit’ as part of their business-as-usual activities. The PRA aims to enhance...
Following UK Finance’s response, several further responses to the PRA and FCA consultation papers (CP 23/20 and PRA’s CP 18/23) share insights into diversity and inclusion in the financial services sector...
The recent research conducted by the Association of British Insurers (ABI) in collaboration with Thinks Insight and Strategy’s Behavioural Team underscores the substantial impact of personalised guidance on...
On 11 December 2023, the PRA published a Letter to general insurers’ chief risk officers (CROs) outlining the findings of its 2023 thematic review of expected underwriting profit allowed for in firms’...
The PRA has published its Solvency II Review Considerations for year-end 2023. The statement outlines the upcoming changes to HM Treasury (HMT) and the Prudential Regulation Authority’s (PRA)’s Solvency II...
On 8 December 2023, statutory instruments for the UK Solvency II regime were published. The Insurance and Reinsurance Undertakings (Prudential Requirements) (Risk Margin) Regulations 2023 (SI 2023/1346) and the The...
HM Treasury has published its Policy Note (6 December 2023) incorporating a near-final version of the statutory instrument (SI) to replace the Money Market Funds Regulation and create a new framework for Money Market...
The FCA has published its consultation paper (CP23/28) setting out its proposals to enhance the resilience of Money Market Funds (MMFs) based in the UK. It has been developed in collaboration with the Treasury and the...
The BoE has published its Policy statement: The Strong and Simple Framework: Scope Criteria, Liquidity and Disclosure Requirements (PS15/23) (5 December 2023) incorporating feedback from consultations regarding...
FCA has published its regular quarterly consultation (CP23/25: Quarterly Consultation Paper No. 42) on proposed miscellaneous amendments to its Handbook. FCA is proposing to consult on making: amendments to the TC...
On 1 December 2023,FCA published a Memorandum of Understanding (MoU) (dated 21 November 2023) between it and OFSI. The MoU sets out the collaboration and information exchange between FCA and OFSI. It replaces the...
In the case of Smith and another (Appellants) v Royal Bank of Scotland (Respondent) [2023] UKSC 34, the Supreme Court has ruled that the claims made by claimants seeking orders under the Consumer Credit Act 1974 were...
HM Treasury has published its response to the feedback received from its January 2023 consultation paper titled “Introducing an Insurer Resolution Regime”. The consultation sought feedback on proposals to...
The FCA has published its Annual Report and Accounts 2022/23. The Report sets out the FCA’s progress and key achievements during the first year of implementing their three year strategy. The report highlights what...
The FCA has updated its perimeter report setting out the scope of what it does and does not regulate. The report describes specific issues the FCA perceives around its regulatory perimeter, and the action it is taking...
As we reported in last week’s edition of FIN in Philipp v Barclays Bank UK PLC [2023] UK SC25, the Supreme Court allowed the Barclays appeal against the Court of Appeal decision that had, in essence, widened the...
The Financial Reporting Council (FRC), acting as The Secretariat to the UK Sustainability Disclosure TAC, has issued a call for evidence seeking input to support the potential endorsement of the International Financial...
The PRA has released its statement to insurance firms inviting them to recalculate the Transitional Measure on Technical Provisions (TMTP). In accordance with Supervisory Statement (SS) 6/16 ‘Maintenance of the...
The International Association of Insurance Supervisors (IAIS) has published its Global Insurance Market Report: Mid Year Update, which provides a mid-year preview of its 2023 Global Monitoring Exercise (GME) results...
The FCA has published its new webpage on its fee rate movement for 2023/24. The new webpage contains a table which explains the changes in fee rates since last year. The FCA notes that its AFR has increased in 2023/24...
The FCA has published its focused post-implementation review on investment pathways. The review focuses on rationale and take-up, value, communications and asset allocation for investment pathways, and how these could...
The FCA has published a new webpage containing information for principal firms on how to report Appointed Representatives data. The webpage, which will be kept up to date, contains information for firms on: why the FCA...
The FCA has published a new webpage containing information for principal firms operating as regulatory hosts. Such firms usually carry out minimal or no regulated activity. Rather, it oversees the use of its permissions...
The PRA has published its follow up letter to Chief Actuaries of general insurance firms and Lloyd’s Managing Agents regulated by the PRA. The letter provides insights from the PRA’s thematic review of...
The PRA has published a Letter from Charlotte Gerken, Executive Director, Insurance Supervision, to Chief Risk Officers (CROs) of life insurance firms sharing insights and feedback on the PRA’s preliminary thematic...
The FCA has published its data on geographical access to cash coverage in the UK for Q1 2022 and Q2 2022. The FCA and Payment Systems Regulator (PSR) gather and update data on access to cash on a quarterly basis. The...
The FSCS has published its latest Outlook update, which includes its revised compensation and levy forecasts for 2023/2024. The update confirms the FSCS has revised its levy forecast for 2023/24 to £270m. While this is...
The FCA is consulting on its proposed changes to the remuneration rules for dual-regulated firms. The consultation (CP23/11) aims to ensure that remuneration rules for smaller, less complex firms that fall under dual...
The Financial Services Skills Commission (FSSC) has published its report on reskilling for the future of the financial services industry. The report suggests UK businesses prioritise and implement reskilling programs to...
Sarah Breeden, BoE Executive Director of Financial Stability, Strategy and Risk, has delivered a speech emphasizing the role governments, businesses, finance and central banks play in the transition towards climate...
On 29 March 2023, the government published its AI white paper setting out its regulatory approach to AI in the UK. Simultaneously: the Department for Science, Innovation and Technology (DSIT) and the Office for...
The FCA has published its latest insurer claims data (as of 6 March 2023) from all affected insurers on the progress of their non-damage business interruption (BI) insurance claims. The FCA has been collecting data on...
Policy Excess Insure Limited trading as Nova Direct (PEI) has given an undertaking, under the Consumer Rights Act 2015 (the CRA), making changes in relation to three terms in its insurer broker contract (for the sale of...
Shoib Khan, the PRA’s director for insurance supervision, has given a speech on the current risks facing the UK insurance sector. He highlighted that insurers should examine beyond the structure of their models...
The FCA has published its letter to administrators outlining where improvements are needed in ESG benchmarks. The FCA had previously highlighted the risk of poor disclosures for ESG benchmarks within its September 2022...
The FCA has launched a call for input to ascertain whether the thresholds for SMEs to be able to refer complaints to the FOS remain appropriate. The FCA’s policy objective is to provide access to the Ombudsman...
The FCA has published a portfolio letter setting out its priorities for payments firms. The FCA raised concerns that many payments firms do not have sufficiently robust controls, and it considers this an increased risk...
HM Treasury has published the report presented by Sir Patrick Vallance, the Government Chief Scientific Adviser, on Pro-innovation Regulation of Technologies Review: Digital Technologies. The report highlights the...
FATF has published its report on countering ransomware financing, which analyses the methods criminals use to carry out ransomware attacks and how payments are made and laundered. It reveals that criminals predominantly...
The BoE has updated its webpage delivering information on ISO 20022: the new messaging standard for CHAPS and RTGS. It outlines its migration and policy approach timelines, and stakeholder requirements. On 19 June 2023...
On 13 March 2023, the House of Lords Grand Committee continued its line by line examination of the FSM Bill, which took place during the eighth day of committee stage. The amendments that were discussed covered clauses...
The BoE (PRA) has published its consultation paper (CP6/23) on the non-performing exposures capital deduction. The PRA is proposing to remove the Common Equity Tier 1 (CET1) deduction in the PRA Rulebook, which relates...
The FCA has published its latest annual Perimeter Report. It highlights some of the challenges faced within the current financial services regulatory perimeter and signposts desired future action the FCA would like to...
FATF has published its international standards on combating money laundering and the financing of terrorism & proliferation. The recommendations contain a comprehensive and consistent framework of measures for...
The FCA has published its findings and expectations of FCA solo-regulated fast-growing firms to identify, assess and manage the risks arising from their activities. In particular, this multi-firm review of 25 FCA solo...
The FCA has provided its finalised guidance (FG 23/2) for firms seeking to assist their existing customers facing higher mortgage payments and interest rates due to the rising cost of living. The guidance clarifies the...
The BoE has published a letter to the Treasury Committee revealing that Government proposals to overhaul Solvency II rules to reduce how much capital life insurers must hold to protect themselves against bankruptcy...
Andrew Griffith MP, the Economic Secretary to the Treasury, has delivered his keynote speech at the Association of British Insurers’ Annual Conference highlighting government action which aims to promote growth...
Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO, has delivered his speech ‘Fundamental Spreads’, highlighting the next steps for reforming the Solvency II insurance regulations in the UK. Mr...
The Lloyd’s Market Association (LMA) has announced its launch of the Chief Underwriting Officers’ (CUO) Committee. The committee will portray managing agents’ perspectives on Lloyd’s strategic initiatives...
The PRA has published its consultation paper (CP3/23) and appendices seeking consultation on its proposed rules and policy changes introduced by the Financial Service and Markets Bill 2022-23 (FSM Bill) to the Financial...
The Lloyd’s Market Association (LMA) has highlighted the importance of ESG data for insurers and the role it will play in underwriting approaches to sustainability strategy. Links to these insights and the report...
The BoE has published its response to the remit for the Prudential Regulation Committee (19 January 2023) in its letter from Andrew Bailey, Governor, to Jeremy Hunt, Chancellor. The letter responds to the...
The PRA has published its Insurance Stress Test 2022 (IST 2022) feedback (23 January 2023). The letter sets out the results of the IST 2022 which was launched in May 2022, findings on sector resilience, and provides...
The FCA has released its consultation paper on insurance guidance for the support of customers in financial difficulty (CP23/1). The FCA views that the number of customers in financial difficulty has increased in recent...
On 10 January 2023, the BoE (PRA) published the following Dear CEO letters outlining its key supervisory priorities for insurers, international banks active in the UK, and UK Deposit Takers in 2023: Insurance...
The FCA has published its Portfolio Letter outlining its Portfolio Strategy for Claims Management Companies (CMCs). The FCA sets out its updated view of harm and key risks that CMCs pose to their customers, its...
The BoE has published its 2022 annual report on its supervision of financial market infrastructure firms (FMIs). FMIs provide services, such as payments, and networks that facilitate financial transactions. The...
The FCA and PRA have released their consultation paper (PRA CP 15/22 | FCA CP22/28) on their joint proposed rule changes to remove the existing limits on the ratio between fixed and variable components of total...
The High Court has ruled in favour of NatWest in its judgment of 10 October 2022 in the case of Steiner v National Westminster Bank plc [2022] EWHC 2519 (KB). Mr and Ms Steiner had paid for a timeshare agreement with Mr...
We have commented on the recent Employment Appeal Tribunal (EAT) decision in Pubbi v Your-Move.co.uk [2022] EAT 96 in which an employee was dismissed for failing to disclose that he had been made redundant, following up...
A recent Employment Appeal Tribunal decision considered whether Your-Move (YM), an Estate Agent, had unfairly dismissed a consultant (Mr Pubbi – the Claimant) for failing to disclose that he had been made bankrupt. The...
The EU has reached agreement on critical elements of crypto-asset regulation. The European Parliament and the European Council have reached a provisional deal new legislation aiming to ensure that crypto transfers can...
The FCA hosted its first policy-focused CryptoSprint events in May and June 2022. The objective of the events was to seek industry views around the current market and the design of an appropriate regulatory regime...
The Russian Elites, Proxies, and Oligarchs (REPO) Task Force has released a joint statement outlining how they have been able to isolate sanctioned Russians by freezing, seizure, forfeiture and/or disposal of assets...
The FCA summarised feedback received to its discussion chapter (in CP21/18) on environmental, social and governance (ESG) integration in UK capital markets and has set out the potential next steps. The FCA received 50...
The Prudential Regulation Authority (PRA) has sent firms a letter setting out its approach to the “Fundamental Review of the Trading Book” (FRTB), on which it will consult in Q4-2022 as part of its review of...
Following the latest judgment in the matter of Merricks v Mastercard, the CAT has now given a ruling on costs. The ruling concerns: The costs between 19 August 2021 and 9 March 2022 – Mastercard submitted that the...
On 27 June 2022, the FCA published a portfolio letter setting out its supervisory strategy for mainstream consumer credit lenders (MCCLs). In the letter, the FCA outlined the key risks of harm for MCCL firms, their...
Today, the Payment Systems Regulator (PSR) published its plans on how it proposes to carry out two market reviews focusing on card fees with a focus on Mastercard and Visa. One review looks at scheme and processing...
Tackling market abuse is one of the FCA’s strategic priorities. Given recent press reports about the FCA’s approach, the FCA outlined the work it does to tackle insider trading and manipulation and to warn...
On 14 June 2022, the FOS published a discussion paper on possible changes to its future funding model.. This follows the FOS’s commitment in their action plan to change and improve the organisation to deliver a...
The FCA has published its most recent portfolio strategy letters for: Personal and Commercial Lines Insurance Intermediaries; and Lloyd’s and London Market Insurance Intermediaries (and Managing General Agents). Some...
The FCA has published the final notice issued to TFS Loans Ltd (in administration), a provider of guarantor loans. The FCA has fined TFS £811,900 for breaches of Principles 3 and 6 and CONC. It is now required to...
The Ministry of Justice has published a memorandum on the Fraud Act 2006 which provides an updated post-legislative assessment of the Act for submission to the House of Lords Select Committee in light of rising digital...
On 7 June 2022, the FCA and the Pensions Regulator published a feedback statement (FS) to their May 2021 joint call for input on the behaviour of consumers at key points in the pension saving journey. The aim was to...
The Lloyds Market Association (LMA) has published advice received from Counsel on coverage following the recent introduction of sanctions against Russia. The questions covered included whether insurance cover can be...
On 31 May 2021, ESMA published a supervisory briefing setting out guidance on the integration of sustainability risks in the area of asset management. The guidance is aimed at national competent authorities (NCAs) to...
On 27 May 2022, the CMA published the final report of an independent review of the “lessons learned” review of the Open Banking remedy, which is part of the package of remedies introduced following the...
Duncan Mackinnon, BoE Executive Director for Supervisory Risk Specialists, has delivered a speech on operational resilience. Mr Mackinnon considered the PRA’s expectations of firms in their implementation of the...
On 24 May 2022, in a speech delivered at the Association of British Credit Unions annual conference, John Glen, Economic Secretary to HM Treasury, announced reforms to the legislative framework for credit unions. In the...
The European Securities and Markets Authority (ESMA) has published its Final Report on the review of the MiFID II framework on best execution reports by investment firms. MiFID II requires execution venues and...
The BoE has published the results of the Climate Biennial Exploratory Scenario (CBES). The key findings included: Projections of climate losses are uncertain. UK banks and insurers have made progress but still need to...
On 20th May 2022, the European Securities and Markets Authority (ESMA) has updated the Questions and Answers on the European crowdfunding service providers for business Regulation. The changes specifically address...
On 17 May 2022, the FCA published Market Watch 69, its newsletter on market conduct and transaction reporting issues. The newsletter focuses on firms’ arrangements for market abuse surveillance, drawing on the...
On 13 May 2022, the FCA published a consultation paper on expanding the dormant assets scheme (the Scheme). The Scheme allows banks and building societies to pay dormant monies to an authorised reclaim fund which then...
Following its request for feedback last year, the European Commission has adopted reforms of the current EU rules concerning financial services contracts concluded at a distance. The proposal aims to simplify and...
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
Nikhil Rathi, CEO at the FCA, spoke on learning from the last 30 years to face the next 30 years at the Chartered Institute for Securities & Investment (CISI) 30th anniversary dinner. Highlights include: the world...
On 3 May 2022, the Lending Standards Board (LSB) published its Business Plan and Budget for 2022/23. in the plan, the LSB sets out its strategic priorities and provides further information on the activities it intends...
On 26 April 2022, the FCA published a speech given by Nikhil Rathi, FCA Chief Executive, on the FCA’s view of critical issues in financial regulation. Mr Rathi sets out the challenges and opportunities confronting...
On 21 April 2022, the Council of the EU has published a note to commence trilogues with a three-column table summarising and comparing the European Commission’s proposals, the European Parliament and Council’s...
Following a joint consultation with the Bank of England and the PRA which ended on 12 October 2020, the FCA has advised they are still in the process of updating their Complaints Scheme which promises to be more user...
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2022/23. The PRA’s strategy will be delivered through the following strategic goals: Retain and build on the strength of the banking and...
In the case of Portal Financial Services LLP v Financial Ombudsman Service Limited [2022] EWHC 710 (Admin) the court has, on appeal, refused Portal permission to apply for Judicial Review of 16 decisions of FOS. The...
The European Commission (EC) has adopted a decision declaring that a number of US exchanges supervised by the US Securities Exchange Commission (SEC) are equivalent to EU regulated markets. Derivatives traded on such US...
The London Metal Exchange (LME) suspended nickel trading on 8 March 2022, having concluded that a disorderly market had arisen due to challenging commodity market conditions following the events in Ukraine. Nickel...
On 24 March 2022, Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), delivered her keynote speech to the participants of the ICI Investment Management Conference 2022. In her...
The PRA has issued a Policy Statement (PS) including feedback to responses to Consultation Paper (CP) ‘Financial Services Compensation Scheme – Management Expenses Levy Limit 2022/23’. The PS is relevant to all...