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...
Author - FIN. Team
FIN. Team
AI governance impact analysis evidence published
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...
FCA publishes BI insurance test case insurance claims data
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...
FCA publishes Notice of Undertaking by Policy Excess Insure Limited T/A Nova Direct
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...
PRA speaks on UK insurance sector risks
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...
FCA requires improvements on ESG benchmarks
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...
FCA calls for input on SME access to FOS
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...
FCA priorities for payments firms
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...
Pro-innovation Regulation of Technologies
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 publishes Countering Ransomware Financing report
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...
BoE updates webpage on ISO 20022
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...
FSM Bill Committee day 8
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...
BoE consults on the non-performing exposures capital deduction
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...
FCA publishes its Perimeter Report 2023
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 publishes international standards on combating money laundering and the financing of terrorism & proliferation
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...
FCA publishes FGF’s multi-firm review
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...
FCA releases guidance for firms supporting mortgage borrowers with rising cost of living
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...
BoE reveals 20% higher chance of insurance firms collapsing due to Solvency II reforms
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...
Economic Secretary speaks at ABI’s Annual Conference
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...
PRA speaks on ‘Fundamental Spreads’ – next steps for Solvency II reforms
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...
FCA publishes Consumer Duty programme of engagement
FCA has published a press release on its programme of engagement for the Consumer Duty, as its second batch of portfolio letters were sent on 21 February 2023. FCA’s programme of engagement sets out expectations...
LMA launches CUO Committee for market-wide strategic initiatives
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...
BoE publishes policy on outsourcing and third party risk management for FMIs
BoE has published its outsourcing and third party risk management policy for Financial Market Infrastructures (FMIs). The policy is set out across the following policy statements and documents: Policy Statement Code of...
PRA consults on dealing with insurers in financial difficulty
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...
LMA updates on ESG Insights for Insurers
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...
Parliament to debate crypto regulation
A debate on the regulation of cryptocurrencies is set to take place on Wednesday 25 January, led by Dr Lisa Cameron. The House of Commons has published the debate pack which sets out the issues and topics which will be...
PSR discusses barriers to digital payments
On 29 November 2022, PSR held a roundtable discussion about the barriers to digital payments for people who primarily rely on cash. The discussion focused on: the reasons people continue to rely on cash, such as control...
BoE publishes response to remit for PRC – Jan 2023
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...
PRA publishes results of Insurance Stress Test 2022
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...
FCA releases consultation paper on insurance guidance for the support of customers in financial difficulty (CP23/1)
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...
EBA publishes peer review of PSD authorisation processes
EBA has published a peer review on authorisation of payment and e-money institutions under the Payment Services Directive (PSD2). It covers a three year period from 1 January 2019 – 31 December 2021. This falls...
BoE (PRA) publishes Dear CEO Letters – 2023 Priorities for Insurance supervision, International Banks active in the UK, and UK Deposit Takers Supervision
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...
Industry alliance forms to lead UK’s future in digital currencies
Five associations have formed an alliance called the UK Forum for Digital Currencies (UK FDC). Its members include the City of London Corporation, Digital Pound Foundation, the Payments Association, the CityUK and UK...
FCA Publishes Portfolio Strategy Letter for CMCs
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...
BoE releases annual report on supervision of FMIs
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...
Regulators consult on removing bonus cap limits
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...
ECB publishes report on climate stress testing
The ECB has published the results of its 2022 climate stress test, which has helped banks to develop climate risk-related stress testing capabilities. The report highlights both physical and transition risks which...
FCA announces ESG Advisory Committee to its Board
FCA has announced a new advisory committee to its Board which will focus on supporting FCA with its ESG-related responsibilities. This is intended to align with the UK’s commitment to achieving a net zero economy...
BoE publishes letter responding to Financial Policy Committee’s remit
Andrew Bailey has written to Jeremy Hunt, with the Financial Policy Committee’s response to HM Treasury’s ‘Remit and Recommendations for the Financial Policy Committee’. The letter welcomes the...
UK regulators consult on DRCF workplan 2023-24
The Digital Regulation Cooperation Forum (DRCF) – made up of the FCA, CMA, ICO and Ofcom – is calling for input on its workplan for 2023-24. The consultation invites stakeholders to share their views on...
European Council agrees strengthened AML rules
The European Council has agreed its position on both an AML regulation and a new directive (AMLD6). These regulations aim to improve risk mitigation, detect criminal activity and ensure the EU’s financial system...
Memorandum of Understanding between UK and Banco de Portugal
FCA has published a Memorandum of Understanding (MoU) which has been made between the PRA and FCA and Banco de Portugal for the purposes of supervisory cooperation. This is the latest in a series of MoUs made by the UK...
EIOPA publishes discussion paper on assessing insurers’ sustainability
EIOPA has published a Discussion Paper (DP) on assessing the prudential treatment of insurers’ sustainable assets and activities. Given that insurance underwriting and investment activities can be profoundly...
BBRS report highlights complaints themes
BBRS has published its Case Insights report which highlights themes and issues arising from customer complaint data to end-July. The BBRS service was launched in February 2021, and by the end of July 2022, it had...
FCA speaks on culture in financial services
Emily Shepperd, Chief Operating Officer and Executive Director of Authorisations at FCA, gave a speech at City and Financial Global’s 8th Annual Culture and Conduct Forum. The speech highlighted that FCA believes...
PRA finalises changes following depositor protection consultation
PRA has published its Policy Statement CP9/22, which gives feedback on the response to the Depositor Protection Consultation Paper (CP). CP9/22 also contains PRA’s final rules. PRA proposed to delete the Dormant Account...
FCA consults on credit information improvements
FCA has set out its initial findings from a credit information market study in an interim report and discussion paper and its annexes. The study was launched because of concerns about the quality of credit information...
Court finds mortgage adviser had no duty to investigate underlying investment
The High Court has ruled on a case brought by investment fraud victims in a clarification of mortgage advisers’ duties. The judgment in Taylor & Anor v Legal and General Partnership Services Ltd [2022] EWHC...
LSB reports on access and disability recommendations for firms
LSB has published its report on inclusion in business banking and credit. The report provides insights for banks and lenders to help ensure their offerings are inclusive and accessible for disabled customers and those...
FCA allows Amigo to re-start lending in pilot
FCA has published a letter sent to Amigo Loans which approves its request to start lending again on a pilot basis. In 2020, following a large number of customer complaints, Amigo paused new lending and announced that it...
High Court declines to extend debtor-creditor-supplier arrangements
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...
BoE publishes data transformation programme update
The BoE has published an update on its data collection transformation programme. The programme is a joint venture with FCA and aims to transform data collection within the UK financial sector. Phase two of the programme...
BoE consults on AI discussion paper
The BoE is consulting on its discussion paper about how artificial intelligence (AI) may affect financial regulation. The discussion paper looks at how the current regulatory framework applies to AI; it considers how...
PRA’s future approach to policy
On 8 September 2022, PRA published its intended future approach to policy in a new discussion paper (the ‘paper’) which is summarised on the Bank of England’s website. The paper is based on the FSM...
FOS publishes latest complaints data
FOS has published its latest quarterly data on complaints in relation to financial products. The data covers the period of April to June 2022, and can be accessed in full as a spreadsheet. Over the period, the average...
Employee fairly dismissed for failing to disclose that he had been made bankrupt
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...
Tribunal decides dismissal for bankruptcy is fair
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...
EU reaches agreement on crypto measures
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...
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...
Permission to apply for judicial review of 16 FOS decisions refused
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...
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...
APP Fraud and the extent of the Banks Duty – to be determined at trial
In the case of Philipp v Barclays Bank UK plc [2022] EWCA Civ 318, the Court of Appeal has allowed the appeal from Mrs Philipp against the decision of the High Court in 2021 to give judgment to Barclays Bank UK plc on...
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...