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...
Author - FIN. Team
FIN. Team
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 updates on Green FinTech Challenge 2021
FCA has accepted 10 firms into its Green FinTech Challenge 2021 which aims to enable the FCA to take a more active role in driving innovation in products and services that will aid the transition to a net-zero economy...
FCA publishes Consumer investments data review
The FCA has published its third Consumer investments data review. The review provides an overview of FCA’s work to protect consumers from investment harm between April and September 2021. This follows FCA’s...
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...
FCA discontinues action against individual for failure to comply with statutory Notice
The FCA has issued a notice of discontinuance in relation to the prosecution of Craig Whyte. Mr Whyte had previously been charged with an offence of failing to comply with the a statutory Notice issued under Section 49...
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...
BBRS publishes Post-Implementation Review
The Business Banking Resolution Service (BBRS) has published the first part of its Post-Implementation Review (PIR). The aim of this review was to assess how well the BBRS has delivered the recommendations contained in...
UK and New Zealand sign Free Trade Agreement
Having reached an agreement in principle in October 2021, the UK has signed a trade deal with New Zealand which will remove trade barriers on a range of UK goods and services. Chapter 11 of the agreement enables UK...
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...
EBA publishes final Guidelines on limited network exclusion
The European Banking Authority (EBA) has published its final Guidelines on the limited network exclusion under the Payment Service Directive (PSD2). The Guidelines clarify how competent authorities should assess whether...
FOS publishes latest quarterly complaints data
The Financial Ombudsman Service (FOS) has published its latest quarterly data on complaints in relation to financial products. This data covers the period October to December 2021, and is available in full as a...
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...
FSCB publishes report on inclusion survey
The Financial Services Culture Board (FSCB) and Financial Services Skills Commission (FSSC) have published a report on their survey of inclusivity in the financial services sector. The report contains data from the...
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...
EBA updates methodology for assessing equivalence
The Capital Requirements Regulation (CRR) provides that certain risk exposures to entities located in third countries can be treated, for risk-weighting purposes, as exposures in EU Member States, provided that the...
EBA publishes report on responses to 2020 Luanda Leaks
The EBA has published its report on its assessment of competent authorities’ responses to the 2020 Luanda Leaks. The Luanda Leaks involved the International Consortium of Investigative Journalists (ICIJ)...
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...
LSB publishes thought piece on supporting customers
The Lending Standards Board (LSB) has published a thought piece looking at the UK’s cost of living crisis and how firms can support customers in pre-arrears and financial difficulty. The thought piece identifies...
FSB reports on financial stability risks in cryptoasset markets
The FSB has published a report assessing the risks to financial stability from cryptoassets. The report examines the developments and associated vulnerabilities relating to cryptoasset markets which it considers could...
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...
ECON publishes draft legislation on transfer of funds and cryptoassets
The European Parliament (ECON) has published draft legislation on the proposal for a regulation on information accompanying transfers of funds and certain cryptoassets. The draft sets out the suggested amendments to the...
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...
BoE, FCA, PRA and PSR conduct review of MoU for UK payment systems
The Bank of England, FCA, PRA and PSR are required, by the Financial Services (Banking Reform Act) 2013 to conduct an annual review of their Memorandum of Understanding (MoU) setting out the framework for their...
CMA writes to Barclays and Tesco Bank on Retail Banking Order breaches
The CMA has written letters to Barclays and Tesco Bank regarding their breaches of the Retail Banking Market Investigation Order 2017. Barclays’ breach relates to its failure to update a Service Quality Indicator...
PSR publishes response to CoP consultation
The PSR has published PS22/1 Confirmation of Payee: response to consultation CP21/11 ending dual running. The document assesses the implementation of Phase 1 thus far, and introduces Specific Direction 11 which will...
FCA clarifies next steps in LIBOR transition
The FCA has published a new webpage entitled ‘finalising LIBOR transition – achievements in sterling markets and what remains to be done‘. The FCA identifies that the final publication of sterling...
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...
PRA consults on definition of capital
The PRA has published a Consultation Paper which proposes updates to PRA SS 7/13 ‘Definition of capital (CRR firms). The proposed rules are set out in full in Appendix 3. This suggestion is part of the broader...
Hewlett Packard/Autonomy v Lynch – Claimants win on liability
The civil side of the long running dispute between Hewlett-Packard and Michael Lynch (Hewlett-Packard and othrs v Michael Richard Lynch and othrs) over the acquisition of Lynch’s business, Autonomy Corporation...
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...
Government to bring forward Brexit Freedoms Bill
The Prime Minister has pledged to bring forward the ‘Brexit Freedoms’ Bill, which aims to end the current status of EU law, enabling it to be amended or removed more easily. This announcement is accompanied...
Government Committee launches inquiry on retained EU law
The European Scrutiny Committee has launched an inquiry into the future of retained EU law. This follows the Government’s announcement in September 2021 that it would conduct two reviews into the new category of...
EBA launches AML/CFT database
The EBA has launched ‘EuReCA’, the EU’s central database for anti-money laundering and counter-terrorism financing. The EBA will use the database to coordinate efforts by competent authorities 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...
FCA publishes guidance on competency and capability
The FCA has added a webpage to its website explaining the competency and capability requirements of heads of compliance and MLROs as SMF holders under the SMCR regime. The FCA notes that firms should carefully consider...
BIS updates on 2022 work programme
BIS has announced that its Innovation Hub will launch new projects in 2022, including those relating to: central bank digital currencies (CBDCs); next generation payments systems; and Decentralised Finance (DeFi). The...
PSR consults on card-acquiring services review
The PSR has published a consultation on remedies for its card-acquiring market review. This follows its report in November 2021 which identified the following three features of concern in relation to how the market...
Regulators publish Wider Implications Framework
FOS, FCA, FSCS, TPR and MaPS (the Members) have jointly published a formal agreement for collaboration on matters of common interest: the Wider Implications Framework. The Framework establishes a structure to enable...
FCA proposes guidance for firms seeking to limit their liabilities
The FCA has identified an increase in firms developing proposals, such as Schemes of Arrangements, to deal with significant liabilities to consumers. This is particularly so in relation to redress liabilities. In...
Quincecare Duty – Supreme Court Appeal
The Court of Appeal decision in Stanford International Bank Ltd (in liquidation) v HSBC plc [2021] EWCA Civ 535 comes before the Supreme Court this week as SIB appeal the decision to strike out the loss claim it...
FCA updates on borrowers in financial difficulty
The FCA launched the borrowers in financial difficulty (BiFD) project in March 2021, with the aim of ensuring firms continue to support borrowers facing financial difficulties. The project covers a range of retail...
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...
EBA confirms Covid-19 related reporting and disclosure requirements will continue
In response to the ongoing Covid-19 pandemic, the EBA has confirmed that the Guidelines on the reporting and disclosure of exposures subject to measures applied in response to Covid-19, which were first adopted on 2...
PSR publishes new strategy
The PSR has published its new strategy which sets out its priorities and desired outcomes within the payments sector over the next 5 years. This follows the PSR’s consultation last year, for which it has now...
FCA and PRA consult on FSCS management expenses levy limit
The FCA and PRA are jointly consulting on the management expenses levy limit for the Financial Services Compensation Scheme (FSCS). This limit represents the total management expenses that the FSCS can levy on financial...
FCA to register first UK securitisation repositories
From 17 January 2022, public securitisations within the scope of the UK Securitisations Regulation must be reported to a Securitisations Repository (SR) that is registered and supervised by the FCA. The FCA has...
PSR publishes report on interbank payment systems
The PSR has published its latest annual access and governance report. This most recent report describes data and developments in access to interbank payment systems across both 2019 and 2020 due to the 2019 report...
EIOPA publishes report on application of the IDD
EIOPA has published its first report on the application of the Insurance Distribution Directive. The IDD requires EIOPA to produce such a report every 2 years, but EIOPA postponed the delivery of this report from 23...
ESMA publishes guidelines on delayed disclosure under MAR
ESMA has published its final report into the review of the Market Abuse Regulation (MAR) guidelines on delayed disclosure. This follows its consultation on review of the MAR guidelines on delay in the disclosure of...
ESMA publishes call for evidence on DLT pilot regime
ESMA has published a call for evidence on distributed ledger technology (DLT). This forms part of the Regulation on a pilot regime for market infrastructures based on DLT. It is seeking input from stakeholders on the...
All-Party Parliamentary Group on Blockchain publishes 2022/23 programme
The All-Party Parliamentary Group (AAPG) on Blockchain has published its 2022/23 work programme entitled ‘ensuring industry and society benefit from the full potential of blockchain‘. The AAPG’s three...
ECB comments on European Parliament’s Banking Union Annual Report
The European Central Bank (ECB) Banking Supervision has published its comments on the input provided by the European Parliament as part of its “Resolution on Banking Union – Annual Report 2022”. The...
JMLSG comments on guidance on digital identities
The Joint Money Laundering Steering Group (JMLSG) has published an update on its website relating to the recent interest in digital identities and their use as part of AML/CFT procedures. It notes that it continues to...
ASA upholds complaints about promotion of unregulated cryptoassets
The Advertising Standards Authority (ASA) has upheld two separate complaints relating to the promotion of unregulated cryptoassets. The first related to a Facebook post and website for Arsenal Football Club PLC. ASA...
FCA prosecutes individual for failure to comply with Statutory Notice
In the first prosecution of its kind, the FCA has brought an action against a Mr Craig Whyte for failure to comply with a Statutory Notice issued under section 49 Regulation of Investigatory Powers Act 2000. Mr Whyte...
FCA fines BlueCrest Capital for conflicts of interest failings
The FCA has published a Decision Notice against BlueCrest Capital Management (UK) LLP (BlueCrest), setting out its decision to impose a £40,806,700 fine on the hedge fund. The FCA considers that BlueCrest failed to...
EBA publishes cover note for draft RTS on AML/CFT database
The EBA has published a cover note for its submission of the draft regulatory technical standards (RTS) under Article 9a(1) and (3) of Regulation (EU) No 1093/2010, setting up an AML/CFT central database. The database...
EESC publishes opinion on Commission’s Sustainable Finance Package
The European Economic and Social Committee (EESC) has published its opinion on the European Commission’s Sustainable Finance Package. The package consists of: the Communication from the Commission to the European...
EIOPA reports on IDD sanctions
EIOPA has published its second annual report on administrative sanctions and other measures imposed by national competent authorities during 2020 under the Insurance Distribution Directive (IDD). The authorities...
PRA fines Metro Bank following regulatory reporting failure
The PRA has fined Metro Bank plc a total of £5,376,000 following the Bank’s failure to act with due skill, care and diligence in relation to the regulatory reporting of its capital position, as well as for...
EPC issues SEPA reminder
The European Payments Council (EPC) has published a press release reminding Single European Payments Area (SEPA) payment scheme participants to comply with the EU Revised Wire Transfer Regulation (2015/847)...
FCA writes dear CEO letter to BSPS advisers
The FCA has published a dear CEO letter addressed to firms who advised British Steel Pension Scheme (BSPS) members between 1 March 2017 and 31 March 2018. The letter identifies the high levels of unsuitable pension...
UK-US Financial Regulatory Working group holds fifth meeting
The fifth meeting of the UK-US Financial Regulatory Working group was held on 15 December 2021 and focussed on the following 7 themes: international and bilateral cooperation; sustainable finance; crypto-assets and...
UK and Australia sign historic trade deal
The UK and Australia have signed a trade deal which sets new global standards in digital services and creates new work and travel opportunities for residents of both nations. The deal, which was agreed in principle in...
PSR extends ATM Direction
The PSR has extended Specific Direction 8, which requires LINK to do all it can to fulfil its commitment to maintain the broad geographic spread of free-to-use ATMs. Specific Direction 8, as varied by Specific Direction...
EIOPA publishes results of Insurance Stress Test
EIOPA has published the results of its 2021 Insurance Stress Test in which it assessed the industry’s resilience to a prolonged COVID-19 scenario in a “lower for longer” interest rate environment. To...
PSR updates Specific Directions on Pay.UK
The PSR has published its decision on varying Specific Directions 2 and 3 on Pay.UK. This follows the PSR’s consultation earlier this year in which it consulted on proposed changes to Specific Directions 2 and 3...
BoE publishes inventory of senior manager responsibilities
The Bank of England (BoE) has published an inventory of senior manager responsibilities. This publication follows feedback on the BoE’s ‘Evaluation of the Senior Managers and Certification Regime...
FOS consults on strategic plans and budget for 2022/23
The Financial Ombudsman Service (FOS) has published its annual consultation on its proposed plans and budget for the upcoming financial year (2022/23). The consultation includes information relating to: The volume of...
PRA publishes guidance on changes to reporting requirements
The PRA has published a statement explaining how the changes it has made to a number of banking regulatory reporting requirements are being implemented in the CRR reporting modules. The PRA has incorporated the entirety...
FCA writes to Treasury Committee following Swift Review
The FCA recently published an independent “lessons learned” review (the Swift Review). The FCA has now written a letter to the Treasury Committee, noting that it accepts almost all of the Reviewer’s...
FCA publishes review of supervisory intervention on IRHPs
The FCA has published an independent “lessons learned” review (the Swift Review), which it commissioned John Swift QC to produce, into the supervisory intervention on interest rate hedging products. The...
Court finds no breach of COBS Rules by spread betting firm
The High Court has ruled on an application for, amongst other things, damages for alleged breaches of the COBS 2.1 (Client’s Best Interests) and COBS 11.2.1 (Best Execution). The Claimant had opened an Account...
FCA and PRA publish dear CEO letter to global equity finance businesses
The PRA and FCA have jointly published a Dear CEO letter regarding the supervisory exercise which they undertook following the default of Archegos Capital Management. The default resulted in over $10 billion of reported...
UK agrees digital trade deal with Singapore
The UK has secured an agreement in principle on a Digital Economy Agreement (DEA) with Singapore. The agreement is the first digitally-focussed trade agreement signed by a European nation and was agreed after only six...
FCA publishes update on Independent Review implementation
The FCA has published a report providing an update on the implementation of recommendations from two Independent Reviews, these being: the Independent Investigation into the Financial Conduct Authority’s...
FCA announces changes to its executive committee
The FCA has appointed Stephen Braviner Roman as both General Counsel and a member of its Executive Committee. He is expected to join the FCA in February 2022 from the Government Legal Department where he currently holds...
FCA and Practitioner Panel publish joint survey findings
The FCA and the Practitioner Panel have published a report setting out the findings of their joint survey of FCA regulated firms. The survey itself enabled firms across the financial services sector to express their...
FCA publishes quarterly consultation paper
The FCA has published its 34th quarterly consultation paper. The proposed changes to the FCA handbook include: Amending the Enforcement Guide to reflect the EU Exit Passport Regulations by providing information about...
FCA consults on improving AR regime
The FCA has published a consultation paper on improving the appointed representatives (AR) regime. It wants to combat the harm that it is currently seeing across all sectors where firms have ARs, which results from...
BoE speaks on Solvency II reform
Andrew Bailey, Governor of the Bank of England, today gave a speech on the opportunity to reform Solvency II post-Brexit. He focused on what he identified to be the key foundations of public policy in prudential...
FCA publishes policy statement on new CMC charging rules
The FCA has published its policy statement on restricting CMC charges for non-PPI financial products and services claims. This follows the FCA’s corresponding consultation which ran from 21 January to 21 April...
FCA publishes Frensham Wealth Limited supervisory notice
The FCA has published a supervisory notice addressed to Frensham Wealth Limited. The notice removes all regulatory activities from the firm’s Part 4A permissions with immediate effect. This follows the FCA’s...
FCA recognises revised FX Global Code and Global Precious Metals Code
The FCA confirmed today under its code recognition process that it is recognising: the updated FX Global Code (FX Code); and the Global Precious Metals Code (PM Code). FCA has updated its ‘Recognising industry...
European Commissioner speaks at EPIF annual conference
Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, recently gave a speech at the European Payment Institutions Federation (EPIF) Annual Conference. She...
Basel Committee consults on principles for climate-related financial risks
The Basel Committee on Banking Supervision is consulting on principles for the effective management and supervision of climate-related financial risks. The consultation, which follows a series of analytical reports...
CMA letter to Danske Bank on breach of SME Banking Undertakings
The CMA has written to Danske Bank regarding the Bank’s second breach of the SME Banking Undertakings 2002. Relationship Managers at Danske Bank required up to 205 SMEs to open a business current account (BCA) to...
FCA, BoE and FMSB sign MOU
The FCA, Bank of England, and Fixed Income, Currencies and Commodities Market Standards Board (FMSB) have signed a joint Memorandum of Understanding. The Memorandum sets out a framework for the continuation of...