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...
Author - FIN. Team
FIN. Team
FCA hosts CryptoSprint events
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...
Joint Statement issued by the Russian Elites, Proxies, and Oligarchs Task Force
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...
FCA publishes feedback statement on ESG integration
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...
PRA sends firms letters on trading book fundamental review
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...
Ruling on costs in collective damages action
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...
FCA Portfolio letter for Mainstream Consumer Credit Lenders
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...
PSR sets out the details for its work on card fees
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...
FCA update on market abuse and manipulation
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...
FOS issues discussion paper on future funding model
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...
FCA portfolio strategy letters for insurance intermediaries
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...
FCA fines guarantor lender for Principles and CONC breaches
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...
Post-legislative assessment of the Fraud Act 2006
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...
Pensions consumer journey feedback statement
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...
LMA publishes useful Counsel’s advice on Russian Sanctions
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...
ESMA provides guidance on sustainability risks
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...
CMA publishes report on lessons learned review of Open Banking remedy
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...
BoE speech on building operational resilience
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...
HM Treasury speech on credit unions reform
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...
ESMA publishes final report on investment firm best execution reporting
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...
BoE publishes results of 2021 Biennial Exploratory Scenario
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...
ESMA updates Q&As on crowdfunding
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...
FCA publishes issue 69 of Market Watch
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...
FCA consults on expanding dormant assets scheme
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...
New proposal for distance selling of financial services
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...
Queen’s Speech 2022 – FS elements
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...
FCA delivers speech on learning from the past
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...
LSB publishes its 2022/23 Business Plan
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...
FCA speech on critical issues in financial regulation
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...
EU Council publishes note on proposal for regulation on transfer of funds and cryptoassets
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...
FCA revised Complaints Scheme delayed
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...
PRA publishes Business Plan 2022/23
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...
EU adopts additional equivalence decisions for US exchanges
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...
FCA, Bank of England and PRA joint statement on LME and LME Clear
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...
ESMA addresses asset management industry on sustainable finance and systemic risk
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...
FSCS management expenses levy limit set for 2022/23
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...
FCA updates on operational and cyber resilience following Russian invasion
The FCA has published some pointers that firms should consider regarding operational and cyber resilience following Russia’s invasion of Ukraine. Firms are advised to consider the following: the firm’s ability...
CMA publishes Annual Plan for 2022/23
The CMA has published its Annual Plan which explains how it will protect consumers, promote competition and help support the economy in the year ahead. It aims to encourage innovation, productivity, and sustainable...
Bank of England responds to Committee report on digital currencies
The Bank of England (the Bank) has thanked the House of Lords Economic Affairs Committee for its report on the Central Bank Digital Currency and in a letter addressed to the House of Lords, the Bank addresses the...
Consumers warned on the risks of crypto-assets
The European Supervisory Authorities (EBA, ESMA and EIOPA – the ESAs) warn consumers that many crypto-assets are “highly risky” and speculative. The ESAs advised that sufficient measures are needed to...
FMLC letter to Treasury: Financial Promotions Rules for Cryptoassets
The Financial Markets Law Committee (FMLC) has issued a letter to Treasury following the Treasury’s response to its 2020 Consultation on cryptoasset promotions. The letter highlights that the FMLC has identified...
New rules on cryptocurrencies in the EU
MEPs have agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including cryptocurrencies such as bitcoins. For those issuing and trading crypto-assets, the new...
PRA Occasional Consultation on minor changes
The PRA has issued a Consultation Paper setting out proposals to make minor amendments to UK Technical Standards (UKTS), PRA rules, supervisory statements, Legacy Supervisory Statements, and a Statement of Policy...
Joint Statement from UK Financial Regulatory Authorities: Cryptoassets
On 11 March 2022, OFSI, the FCA and the Bank of England issued a joint statement on sanctions and the cryptoasset sector. The statement comes amid the conflict between Russia and Ukraine to ensure all firms are...
“Market share test” update on commodity derivatives ancillary activities exemption
Article 2(1)(j) of MiFID II exempts firms trading in commodity derivatives, emission allowances and emission allowance derivatives from authorisation as a MiFID investment firm if they fulfil certain criteria. Firms are...
Insurance business transfer scheme permitted
An application under Part VII of FSMA 2000 was made for sanctioning an insurance business transfer scheme which involved the transfer of insurance policyholders from Assured Guaranty (Europe) PLC (in the UK) to Assured...
FCA portfolio letter for Credit Unions
The FCA has published a portfolio letter to Credit Union Boards setting out the usual key risks of harm that are present for Credit Unions, their members and the markets in which they operate. The letter asks firms to...
PSR issues new Specific Direction 12 to LINK
The PSR has given Specific Direction 12 (SD12) to Link Scheme Holdings Ltd (LINK) allowing them to maintain the broad geographic spread of the UK’s free-to-use (FTU) cash machine network. The new Direction follows...
Former Redcentric CFO sentenced to five and a half years imprisonment
Following the guilty verdict back in February of the two former finance chiefs at a London-listed IT firm found to be misleading investors after they falsified the company’s accounts, Tim Coleman has now been sentenced...
FCA launches claims management companies fees cap
FCA has introduced restrictions on claims management companies (CMCs) to prevent excessive charging of fees to consumers owed compensation from financial services firms. The cap on charges is dependent on how much...
Government publishes Prospectus Regime Review Outcome
Following a consultation on the UK Prospectus Regime, the Government has today published the Prospectus Regime Review Outcome. The document sets out important reforms to the UK’s regime for the public issuance of...
FPC publishes consultation to withdraw affordability test
On 28 February 2022, the Financial Policy Committee (FPC) published a consultation to seek the views of interested parties on the proposal to withdraw the affordability test. The consultation, in particular, asks the...
UK and Singapore sign new digital trade deal
Following its agreement in principle, on 25 February 2022, the International Trade Secretary joined her counterpart in Singapore and signed the trade deal- the Digital Economy Agreement (DEA) – that will help...
FOS publishes diversity, inclusion and wellbeing report
Following the Financial Services Culture Board’s report on inclusion, the Financial Ombudsman Service (FOS) has recently published its diversity, inclusion and well being report 2021 which highlights...
Kalifa Review – one year on – open letter from FinTech CEOs
One year on from the Kalifa review, the Innovate Finance membership community (FinTech CEOs and founders) have published an open letter expressing their contentment in seeing action taken to implement a majority of the...
Pay.UK develops new data model
Pay.UK has developed a new tool in collaboration with UK Finance to help prevent Authorised Push Payment (APP) fraud. The new ‘logical data model’ will be a useful foundation for categorising relevant customer data to...
Treasury Committee hears from financial regulators
As part of its inquiry into the Future of Financial Services post-Brexit, the Treasury Committee held a session on Monday 21st February with representatives from the PRA, FCA and the Bank of England. The aim of the...
Tribunal upholds FCA’s Decision Notice
HMCTS (Tribunal) has dismissed two applications made by an applicant against the Financial Conduct Authority (FCA). The FCA had given a Decision Notice to Przemyslaw Soszynski t/a Phenix Consultancy (Applicant) refusing...
ASA publishes guidance on advertising cryptoassets
Advertising and marketing associated with cryptoassets is subject to the UK advertising rules policed by the Advertising Standards Authority. New guidance has been issued to assist businesses with complying with these...
IRSG criticises CRD6
The International Regulatory Strategy Group (IRSG) has published a narrative on the European Commission’s proposal for new rules for third country providers of banking services as part of the EU Capital...
Two former finance chiefs found guilty of misleading investors
Two former finance chiefs at a London-listed IT firm have been found guilty of misleading investors after they falsified the company’s accounts. Timothy Coleman, the former chief financial officer of Redcentric, used...
Bank of England launches second round of climate change stress test exercise
As promised, the Bank of England (Bank) has today launched the second round of the Biennial Exploratory Scenario (BES) exercise on financial risks from climate change. The exercise aims to explore what financial risks...
Call for evidence on the UK-India trade negotiation inquiry
The House of Lords International Agreements Committee (IAC) launched an inquiry into the UK-India trade negotiations. The IAC is considering all aspects of the negotiations, but is particularly interested to hear how an...
ECON publishes draft opinion on consumer credits proposal
On 1 February 2022, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a draft opinion on the European Commission’s legislative proposal for a Directive on consumer credits to...
CMA writes to Tesco Bank acknowledging action taken to end breach
The CMA has written to Tesco Bank acknowledging the steps it has taken to end the breach of the Private Motor Insurance Market Investigation Order 2015 (the Order). Article 3 of the Order requires that any additional...
Prepaid cards market hit by huge fines for cartel conduct
PSR has fined five companies – Mastercard, Allpay, Advanced Payment Solutions, Prepaid Financial Services and Sulion – a total of £33 million after finding them to be in breach of Chapter 1 of the...
FMLC reports on UK bank ring-fencing legislation legal uncertainties
Legislation requiring UK banks to separate the provision of core retail services from other activities within their groups has been in force since 1 January 2019. This so-called “bank ring-fencing regime”...
PSR publishes card-acquiring services report
The PSR has published its final market review into the supply of card-acquiring services. The report concludes that the supply of card-acquiring services does not work well for SME merchants and large merchants with...
EU Banking Package 2021
The European Commission has today adopted a review of the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) to ensure that EU banks become more resilient to potential future economic...
AFME publishes “Anti-Money Laundering Transaction Monitoring in the Markets sector”
The Association for Financial Markets in Europe (AFME) has published a paper entitled, “Anti-Money Laundering Transaction Monitoring in the Markets sector” in collaboration with Ernst & Young. Recognising the key...
EBA publishes final draft RTS on investment policy disclosure
The European Banking Authority (EBA) published today new regulatory technical standards (RTS) on disclosure of investment policy by investment firms. The final draft RTS provides for: specified information that...
Bank of England launches first public CCP supervisory stress test
The Bank of England (BoE) has today launched its first public supervisory stress test (SST) of UK central counterparties (CCPs) to take place over 2021-22 with the clearing services of all in-scope UK CCPs: ICE Clear...
FCA modifies list of derivatives subject to derivatives trading obligation
The Financial Conduct Authority (FCA) has modified the list of derivatives subject to the derivatives trading obligation (DTO) in line with Articles 28 and 32 of UK MiFIR in the newly released PS13/21 in response to the...
ESMA seeks stakeholder input on retail consumer protection
The European Securities and Markets Authority (ESMA) today publishes a call for evidence on a number of retail investor protection topics under MiFID II. ESMA is seeking information from stakeholders on three topics:...
G20 Roadmap for enhancing cross-border payments
The Financial Stability Board (FSB) has published “G20 Roadmap for Enhancing Cross-border Payments – First consolidated progress report“, which summarises the progress made during the first year of the...
PIMFA welcomes guidance on ways to structure relationships between advisers and discretionary investment managers
The Personal Investment Management and Financial Advice Association (PIMFA) welcomes the publication of an industry guide by threesixty services LLP, with input and collaboration from PIMFA and DFM Connect, a group of...
PSR responses to consumer protection in interbank payments
The Payment Systems Regulator (PSR) has published the outcome of its consultation on consumer protections in interbank payments in PS21/2 – “Consumer protection in interbank payments – response to CP21/4“...
PRA consults on trading activity wind-down
The Prudential Regulation Authority’s (PRA) has published the Consultation Paper CP20/21: “Trading activity wind-down“, which sets out the proposed expectations in respect of firms’ engagement in trading...
PRA policy statement on UK leverage ratio framework
The Bank of England has published the Prudential Regulation Authority (PRA) policy statement PS21/21, which contains feedback from the Financial Policy Committee (FPC) and the PRA on responses to the Consultation Paper...
FSB reports on regulation, supervision and oversight of global stablecoin arrangements
The Financial Stability Board (FSB) has published a progress report on the implementation of its high-level recommendations on the regulation, supervision and oversight of “global stablecoin” arrangements...
CMA welcomes new power to tackle competition and consumer law breaches
The Competition and Markets Authority (CMA) welcomes the Government’s proposals in publishing its responses to the two recent consultations: “Reforming competition and consumer policy“ and “A new...
IAIS reports on first quantitative study on climate change impacts on insurers’ investments
The International Association of Insurance Supervisors (IAIS) has published the 2021 special topic edition of its Global Insurance Market Report (GIMAR). As a first global quantitative study, the report “The...
BIS mBridge: a multi CBDC platform for international payments
The mBridge project – a prototype of multiple Central Bank Digital Currencies (mCBDCs) developed by the Bank for International Settlements (BIS) Innovation Hub and the four central banks of Hong Kong, Thailand...
FIA releases principles for cross-border regulation
The Futures Industry Association (FIA) has released a policy paper outlining seven principles to guide the regulation of cross-border activities in the derivatives markets. The paper addresses the threat of market...
ICMA updates on the EU sustainability disclosure regime
In April 2020, the International Capital Market Association (ICMA) published a document summarising the various the new and amended EU legislation on significant sustainability and ESG related disclosure requirements...
EBA to enhance monitoring of digital platform use in EU banking and payments sectors
A Report published by the European Banking Authority (EBA) today on the “platformisation” (use of digital platform-based business models) of the EU banking and payments sector: identifies the rapid growth in...
Update on AIFMD Delegation Rules
The EU has been saying for some time that it wishes to review the rules by which EU AIFMs may delegate investment management to entities outside of the EU. In its August 2020 letter regarding the review of the AIFMD...
FCA updates on property funds and liquidity and consults on LTAFs
FCA has updated on its August 2020 proposals to reduce the potential harm to investors from the liquidity mismatch in property open-ended funds. It had proposed that funds should have notice periods before an...
ABI speech on the insurance industry post Brexit and lessons learned from the pandemic
James Dalton, Director of General Insurance Policy at the ABI, gave a speech to the Westminster Forum on the future of the insurance industry post-Brexit and lessons learned from the COVID-19 pandemic. Starting off on a...
Treasury calls for Input on UK funds regime
Treasury has published a Call for Input on the UK funds regime. It views Brexit and the emergence from the pandemic as an opportunity to improve the funds regime to give a wider range of more efficient investments...
FCA writes to Debt Purchasers, Collectors and Administrators
The FCA has written to Debt Purchasers, Debt Collectors and Debt Administrators outlining: its view of the key risks debt purchase, debt collection and debt administration firms pose to their customers or the markets in...
UK Government announces expansion of the Dormant Assets Scheme
The UK Government has announced the expansion of the Dormant Assets Scheme, which is a major boost as the UK recovers from the coronavirus pandemic. £800 million is set to be made available to communities across the UK...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
Supreme Court dismisses Mastercard’s appeal on collective proceedings
The Supreme Court has dismissed an appeal by Mastercard against a Court of Appeal ruling that annulled the Competition Appeal Tribunal’s (CAT) refusal to grant a collective proceedings order in Mastercard...
BoE Financial Stability Report
The Bank of England published the Financial Stability Report for December. The report sets out the Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or...
EIOPA: Peer Review on the collaboration of the insurance NSAs
EIOPA has published the findings of a peer review on the supervisory practices related to the decision concerning the collaboration amongst supervisory authorities in relation to insurance cross-border activities, data...
PRA consults on designating firms within certain banking UK consolidation groups
The PRA has published a consultation paper setting out its proposed approach to designating entities within certain banking UK consolidation groups as responsible for ensuring that consolidated prudential requirements...
EPC Report on Payment Threats and Fraud Trends
The European Payments Council (EPC) has published its report on payment threats and fraud trend for 2020. The report attempts to create awareness amongst stakeholders involved in the payments domain to allow them to...
FCA and PSR Terms of Reference on Access to Cash
On 16 June, the PSR and FCA set out its plans to work with the industry and develop shared solutions to deliver appropriate and sustainable access to cash that meet consumers’ needs, including responding to changing...
UNEP FI Consultation on Guidance: Reporting on Principles for Responsible Banking
The United Nations (UN) Environment Programme Finance Initiative (UNEP FI) has published a consultation paper on a draft guidance document designed to support signatories of the Principles for Responsible Banking with...