The Joint Money Laundering Steering Group (“JMLSG“) has received HM Treasury ministerial approval for its guidance material published in June/July this year. This includes the new Sector 22 Cryptoasset...
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FIN. Team
UK Finance data shows consumers paid down credit card bills during lockdown
New data released by UK Finance reveals that outstanding balances on credit cards contracted by 12.6 per cent in the year to May, as cardholders used the lockdown to pay down bills. May also saw credit card spending by...
European Commission publishes Brexit Readiness Checklist for companies
The European Commission (“the Commission“) has published a ‘Brexit Readiness Checklist’ which aims to help EU companies doing business in the UK and/or UK companies doing business in the EU to...
PRA and FCA’s joint Climate Financial Risk Forum meets for the fourth time
The Bank of England has confirmed that the FCA and PRA hosted the fourth meeting of the Climate Financial Risk Forum (“CFRF“) in July 2020. The Forum discussed how to publicise and promote use of the CFRF...
Covid-19: EBA updates its work programme for 2020
The EBA has published its updated annual work programme for 2020 to reflect all the changes to its activities in light of Covid-19. The EBA says the updated work programme aims to alleviate the burden on banks and to...
Wolfsberg Group publishes SOW and SOF FAQs
The Wolfsberg Group has published FAQs on how Financial Institutions can identify, mitigate and manage money laundering risks by undertaking Source of Wealth and Source of Funds checks on relevant customers, when...
BoE updates webpage on ISO 20022
The Bank of England (“BoE”) has updated its webpage on ISO 20022, the emerging global standard for payments messaging. The update confirms that BoE will go-live with ISO 20022 in April 2022 as currently...
EBA publishes CRR ‘quick fix’ Guidelines and draft ITS
For context, the Capital Requirements Regulation (“CRR“) ‘quick fix’ is part of a series of measures taken by European institutions to mitigate the impact of Covid-19 on institutions across EU Member States...
FCA consults on open-ended fund improvements
FCA is consulting on reducing the potential for investor harm from the liquidity mismatch in open-ended property funds. Investor harm is caused by the fact that investors can redeem frequently, often daily, yet the...
FCA sets out its views on Employer Salary Advance Schemes
The FCA has published a statement setting out its view of the risks and benefits of Employer Salary Advance Schemes (“ESAS“) and what employers and employees should consider when using them. ESAS are...
Insurance Europe issues consultation response on EU plan for AML policy
Insurance Europe has published its response to a consultation by the European Commission (“the Commission“) on its action plan for a comprehensive EU policy on preventing money laundering (“ML“)...
FCA Guidance on Vulnerable Customers
The FCA has set out new best practice guidance for firms to do more to protect vulnerable customers, and ensure they are receiving positive outcomes. The first phase of the FCA consultation in July 2019 found that some...
Commission seeks views on sustainable finance – obligation for certain companies to publish non-financial information
The European Commission (“the Commission“) is asking for feedback on its new EU taxonomy initiative. By way of background, the EU has created a classification system (or ‘taxonomy’) for environmentally...
FCA publishes Insight on Coronavirus and intergenerational difference
FCA has published an Insight article on Coronavirus and intergenerational difference – the emerging picture. The article recognises that early data is beginning to reveal the pandemic’s effects on our...
FCA Guide: Prepare Your Firm for Brexit
The Brexit transition period is currently operating until 31 December 2020. The FCA have produced a list of key considerations to help firms consider how they will be impacted by this and what action they may need to...
FCA to Ban Motor Finance Discretionary Commission Models
The FCA has announced that it will introduce a ban on discretionary commission models following a consultation in October 2019. As background, some car retailers and motor finance brokers receive commission which is...
HMT Payments Landscape Review – Call for Evidence
In light of recent developments in technology, HMT announced in June 2019 that it was leading a Payments Landscape Review. The first stage of this review, released today, is a Call for Evidence paper which sets out the...
FCA issues statement on mortgage prisoners and consults on proposals to support consumers
FCA has published a statement on mortgage prisoners which presents further analysis the FCA has done, since the data it published back in January, on borrowers with inactive firms, including mortgage prisoners. The main...
JMLSG publishes new Guidance on pooled client accounts and cryptoasset exchange providers
The Joint Money Laundering Steering Group (“JMLSG“) has today published two new pieces of Guidance. The Board approved text includes a new annex within Part I: Annex 5-V on Pooled Client Accounts, and a new...
Covid-19: FCA defers commencement date for rules on access to travel insurance
On 27 July, the FCA published the Covid-19: Deferral of Commencement (Access to Insurance) Instrument 2020, which came into force the same day. The instrument amends the Insurance: Conduct of Business Sourcebook...
PRA issues statement on dividend payments and share buybacks beyond 2020
The PRA has issued a statement confirming that it will undertake its assessment of firms’ distribution plans beyond the end of 2020, in Q4 2020. By way of background, in its statement on 31 March, the PRA...
ECB takes steps to ensure pan-European reach for instant payments
On 24 July, the European Central Bank (“ECB“) announced that it has taken significant steps to support the full deployment of instant payments across the euro area which, it says, can be ensured by the end...
UK Supreme Court decision narrows scope of the “reflective loss” principle
On 15 July, the Supreme Court handed down judgment in the landmark case of Sevilleja v Marex Financial Ltd [2020] UKSC 31. The eagerly anticipated decision brings clarity to the “reflective loss” principle...
EBA Consults on RTS for Indirect Subscription of MREL Instruments
Today, the EBA launched a public consultation on its draft RTS. The RTS is aimed at specifying the methods to avoid hampering the smooth implementation of the resolution strategy, where instruments indirectly subscribed...
PRA publishes Policy Statement on Asset Encumbrance
On 27 July, the Prudential Regulation Authority (“PRA“) published its Policy Statement (“PS“) providing feedback to responses received in relation to Consultation Paper (“CP“) 24/19...
IAIS consults on the impact of Covid-19
The International Association of Insurance Supervisors (“IAIS“) is seeking feedback from stakeholders on the implications of Covid-19 on the insurance sector, supervisors and the future work of the IAIS. The...
FCA Launches New Register to Protect Consumers
Today, the FCA has launched its updated Financial Services Register. The FCA claim the redesign of the Register aims to help consumers protect themselves from harm and will provide a better experience for the...
EBA consults on technical standards on reporting of MREL decisions
The European Banking Authority (“EBA“) has launched a public consultation on its draft Implementing Technical Standards (“ITS“) specifying uniform reporting templates, instructions and...
FCA proposes to extend its updated guidance for insurance and premium finance firms
On 24 July, the Financial Conduct Authority (“FCA“) announced its proposal to extend a series of temporary measures to help customers who hold insurance and premium finance products and who may be in...
EU Council adopts new rules for crowdfunding platforms
The Council of the European Union (“the Council“) has announced that it has adopted new rules to improve the way that crowdfunding platforms operate across the EU. The new framework is part of the capital...
GDPR update: CJEU invalidates EU-US Privacy Shield Framework
We have written an update on the Court of Justice of the European Union’s highly anticipated decision in the Schrems II case.
Court rules “No DSS” unlawful under the Equality Act
York County Court has ruled that so called “no DSS” policies – which put in place a ban on renting property to people who are on housing benefit – are discriminatory and unlawful under the...
Complaints Commissioner publishes Annual Report
The Financial Regulators Complaints Commissioner (“FRCC“) has published its Annual Report (“the Report“) covering the period from 1 April 2019 – 31 March 2020. In the Report, the...
EBA backs Renewed Sustainable Finance Strategy
The European Banking Authority (“EBA“) has published a letter it sent to the European Commission (“the Commission“) on 15 July, in which it says the European Supervisory Authorities...
LSB launches review of the CRM Code for APP scams
The Lending Standards Board (“LSB“) has published a consultation document to launch a full review of the effectiveness of the Contingent Reimbursement Model Code (“CRM Code“) and its impact on...
Enhancing Cross-border Payments – A Global Roadmap
Building on the FSB’s report published in April this year, the Committee on Payments and Market Infrastructures released its Stage 2 report. This report aims to identify the building blocks with which a roadmap...
FCA takes action against unauthorised mortgage and SRB agreements
The Financial Conduct Authority (“FCA“) has issued a statement confirming that it has commenced proceedings in the High Court against London Property Investments (U.K) Limited (“LPI“), NPI...
COJ Rulings on Unfair Contract Terms in Consumer Credit Agreements
The following are summaries of two recent Court of Justice of the European Union judgements. Both concern interpretation of the unfair contract terms provisions found in Council Directive 93/13/EEC as concern terms of...
ESMA issues second report on sanctions under MiFID 2
The European Securities and Markets Authority (“ESMA“) has published its second report on sanctions and measures imposed under MiFID 2, which provides an overview of the applicable legal framework and the...
PRA consults on updating SM&CR Forms
The Prudential Regulatory Authority (“PRA“) has issued a consultation paper (“CP“) setting out its proposals to make minor amendments to the PRA Rulebook, the Notifications Form and the Senior...
Mortgage prisoners: FCA call for for mortgage intermediaries willing to help
Further to the FCA’s recent change to the rules around mortgage prisoners, they are now looking for mortgage intermediaries to sign up to become part of the new journey these customers can go through. The FCA see...
FCA speaks on investment management role in recovery
Christopher Woolard has spoken to the IA on the role investment managers could play in the post-Covid recovery. He said he is very proud of what FCA has managed to achieve during the crisis to provide the regulatory...
BBRS publishes report on live pilot key learnings to date
The Business Banking Resolution Service (“BBRS“) has published a report capturing a panel discussion among four key individuals working on the development of its service, which is currently in a ‘Live...
Basel Committee updates on Regulatory Framework Adoption
BIS has recently published a report from its Basel Committee. It provides an update to the October 2019 report on the adoption of Basel Standards across each BCBS member jurisdiction as of May 2020. The Committee note...
FCA will not apply EIOPA cloud outsourcing guidelines
FCA has notified EIOPA that the EIOPA Guidelines on outsourcing to cloud service providers for insurance and reinsurance undertakings are not applicable to regulated activities within the UK’s jurisdiction, as they will...
CMA orders insurance provider to fix PPI breaches
The Competition Markets Authority (“CMA“) has taken action against Cardif Pinnacle, and has written to Nationwide and Lloyds, after they failed to provide accurate annual Payment Protection Insurance...
PRA release statement on the approach to the application of the Matching Adjustment during Covid-19
The PRA has released a statement (7 July 2020) to insurers on the application of the matching adjustment (MA) during Covid-19. The PRA considers that the MA has functioned as intended thus far throughout the Covid-19...
Payday Lending Market Investigation Order 2015: CMA secures loan write-off from payday lender
The CMA have written to Shelby Finance Limited regarding breaches of Part 4 of the Payday Lending Market Investigation Order 2015 (the “Order”). Shelby Finance breached the Order by failing to send out...
Covid 19 – FCA confirms additional support for consumer credit customers
The FCA has today (1st July 2020) confirmed the new guidance for firms on how they treat consumer credit customers who are still experiencing financial difficulties due to Covid-19. The new guidance comes in to force on...
European Commission consults on consumer credit agreements
The European Commission is consulting, as part of its review of EU consumer policy, on the Consumer Credit Directive. It wants to review the Directive in light of the recent evaluation which highlighted a number of...
PSR confirms widespread implementation of Confirmation of Payee
The PSR have confirmed that from today (1 July 2020), there is now widespread coverage of Confirmation of Payee (CoP). This is the fraud prevention tool which allows people to check the name of who they want to pay...
FCA and PSR publish update on access to cash
The FCA and PSR have today published more information on their joint work to map access to cash and how this will shape their future work in this area. This is a follow up to their joint statement which was published on...
FCA publish statement on Wirecard
On 29th June the FCA provided written consent to allow Wirecard to resume issuing e-money and providing payment services on 29th June. The restriction on activities lifted today (30 June). This means that Wirecard can...
European Commission report on impact of Interchange Fee Regulation
On 29 June 2020, the European Commission published a report on the impact of interchange fees for card-based payment transactions which entered into force in June 2015 (the Interchange Fee Regulation (IFR)). The IFR...
CJEU considers the application of the Distance Marketing Directive
In KH v Sparkasse Südholstein the European Court of Justice (“CJEU“) considered the application of Article 2(a) of the Distance Marketing Directive (2002/65/EC) (“DMD“) to agreements concluded at...
EP issues draft report on further development of the CMU
On 19 June, the European Parliament (“EP“) published a draft report on the further development of the Capital Markets Union (“CMU“), improving access to capital market finance, in particular by...
Covid-19: EP eases rules to encourage lending to companies and households
Members of the European Parliament (“MEPs“) have approved more flexibility in EU banks’ prudential rulebook to focus on lending to the Covid-19-stricken economy. Aiming to strike a balance between a robust...
EIOPA publishes findings of the Regular Supervisory Report
On 18 June, the European Insurance and Occupational Pensions Authority (“EIOPA“) published the findings of its peer review of the Regular Supervisory Report (“RSR“). The review examined how and...
BoE and PRA publish 2020 Annual Reports
On 18 June, the Bank of England (“BoE”) published its Annual Report and Accounts and its Asset Purchase Facility Fund Limited Annual Report for the period between March 2019 – February 2020. It also...
FCA updates mortgages Covid-19 page
FCA has updated its website on its finalised guidance for firms on mortgages and Covid-19. The updates are minor, making a few clarifications only, mainly to confirm that firms that could not provide personalised...
Identity of lenders in peer-to-peer lending platform protected by Chancery Appeals Court
In Andrew Milne v Open Access Finance Ltd [2020] EWHC 1420 (Ch) the Court rejected an appeal against the making of a representative order under CPR r. 19.6 but allowed the appeal challenging the identity of that...
Access to Cash: FCA and PSR publish their approach
Access to cash is a shared priority between HM Treasury, the Bank of England, the FCA and the PSR. On 16th June, the PSR and FCA published a joint statement on their approach to Access to Cash. Covid-19 The Statement...
PSR publishes updated Powers and Procedures Guidance
The Payment Systems Regulator (“PSR“) has published its revised Powers and Procedures Guidance (“PPG“) and a revised version of its Interchange Fee Regulation Guidance (“IFR“) which...
Commission reports on AIFMD impact
The European Commission has published the report required by the AIFMD on the effects the Directive has had on the alternative investment funds industry. Its review covered 13 Member States, selected to give a broad...
Pay.UK heralds COP launch
Pay.UK has heralded the introduction of Confirmation of Payee and has reminded users of the importance of using “first name surname” rather than a nickname on payment details. Its data shows that 34% of...
Covid-19 – BoE sends Dear CEO letter on distribution of profits
On 4 June, the Bank of England (“BoE“) published a Dear CEO letter that it had sent to all regulated UK Financial Market Infrastructures and Specified Providers (“FMIs”) setting out its expectations on the...
EBA issues Opinion on obstacles to the provision of TPPs under the PSD2
The European Banking Authority (“EBA“) has published an Opinion on obstacles to the provision of third party provider services (“TPPs”) under the Regulatory Technical Standards...
FCA issues update on branch access for essential services
FCA has issued an update to its previous statement of 25 March, setting out its expectations of firms as they reinstate services in line with government guidance. The update also gives advice for consumers who may need...
New BBRS consults public and stakeholders ahead of launch
On 4 June, key questions on the framing of a new service set up to resolve banking disputes for SME customers were published for consultation. The Business Banking Resolution Service (“BBRS“) is seeking...
BoE speech – Covid-19, financial markets and the BoE’s operations
On 4 June, Andrew Hauser, Executive Director – Markets at BoE, made a speech on Covid-19, financial markets and the Bank of England’s balance sheet operations. In his speech, Mr Hauser outlines the unprecedented...
Covid-19 – PRA writes to CEOs on IFRS 9 and capital requirements
On 26 March the PRA, wrote to CEOs of UK banks and building societies providing guidance on the application of the definition of default in the CRR in light of Covid-19, and the expected credit loss accounting...
PSR speaks on key payments issues and Covid-19
On 3 June, the Payment Systems Regulator’s (“PSR“) Head of Policy, Genevieve Marjoribanks, delivered a speech at PSR’s Payment Systems Innovation and Regulation Summit. She acknowledged the challenges...
Covid-19: EBA issues guidelines on data gaps and reporting
The European Banking Authority (“EBA“) has published its Guidelines on reporting and disclosure of exposures subject to measures applied in response to the Covid-19 crisis. EBA says the Guidelines follow the...
Covid 19 – FCA confirms additional support measures for mortgage customers
Following its proposal published on 22nd May, the FCA has today (2nd June 2020) confirmed its new guidance for firms on how to deal with mortgage customers who are struggling financially as a result of Covid-19. The...
Pay.UK launches rules and standards for Request to Pay
Pay.UK has launched its Request to Pay framework comprising the message standards, rules and terms and conditions for developing Request to Pay services. Organisations can use it to create the first Request to Pay...
Covid 19 – FCA publishes proposed updated guidance for mortgages
On 22nd May, the FCA outlined its proposed additional guidance (following the original guidance on 20 March) for mortgage lenders, mortgage administrators, home purchase providers and home purchase administrators, in...
ASA rules on ad for “pre-approved” credit
The ASA has just announced that it has taken action against Clear Score Technology Ltd for breach of the BCAP Code. We have summarised the ASA ruling here.
FMLC responds on Overseas Funds Regime
FMLC has published its response to Treasury’s consultation on a new Overseas Funds Regime. It notes: the uncertainty around the timing of the start of the new regime – and whether the new regime will overlap...
SCA E-Commerce deadline extended
The FCA have today extended the deadline for firms to implement their e-commerce Secure Customer Authentication (SCA) by 6 months from 14 March 2021 to 14 September 2021. This is to minimise potential disruption to...
CMA writes to Metro Bank on breaches of the Retail Banking Order
The CMA has written to Metro Bank’s CEO after the bank broke an Order requiring it to send customers text alerts before charging them for going into an unarranged overdraft, giving them time to act and...
Update on PSR Call for Input (CP20/2) on Payments Architecture
The PSR published an update today confirming that it will now be closing its call for input into competition and innovation in the UK’s new payments architecture on Monday 1 May 2020 at 5pm. Responses should be emailed...
Covid-19: FCA sets out its expectations for wet-ink signatures
The FCA issued a statement today setting out its expectations of firms when dealing with the need for ‘wet-ink’ signatures in light of Covid-19 restrictions. Agreements The FCA’s rules do not...
Covid-19: Draft temporary guidance on rent-to-own, buy-now pay-later and pawnbroking agreements
The FCA published draft guidance for regulated firms that enter into rent-to-own (“RTO“), buy-now pay-later (“BNPL“) (as defined in the FCA Handbook), or pawnbroking agreements today. The...
Covid-19: Draft temporary guidance on HCSTC
Today, the FCA published draft guidance for regulated firms that enter into high-cost short-term credit (“HCSTC“) loans, including payday loans. The guidance also applies to firms that have acquired such...
G20 finance ministers and central bank governors agree action plan
On 15 April, G20 finance ministers and central bank governors held a virtual meeting to discuss the details of a coordinated fiscal, monetary and regulatory response to the Covid-19 pandemic. G20 Finance Ministers...
FCA publishes complaints figures for H2 2019
The FCA has today published the complaints figures for regulated firms for the second half of 2019. The data showed an increase in complaints from 4.29m in the first half of 2019 to 6.02m in the second half of 2019. In...
FOS publishes help on avoiding scams and fraud
The Financial Ombudsman Service (“FOS“) recognises that the type of complaint it sees is constantly evolving, as fraudsters develop new methods or seek to exploit events, such as the current impact of Covid...
EU Council adopts sustainable finance taxonomy
The Council of the EU (“the Council“) has adopted a regulation setting out an EU-wide classification system which will enable businesses and investors to identify economic activities which are considered...
EC publishes draft Sustainable Finance regulations
On 8 April, the European Commission (“EC“) published the following three draft delegated regulations: Sustainable finance – minimum standards for climate benchmarks This initiative sets out minimum standards...
FCA updates guidance for pensions firms
The FCA has published an update for financial services firms operating in the pensions market. This represents an attempt to allow both the FCA and those firms to reprioritise resources towards preventing and reducing...
FCA publishes update on Strong Customer Authentication
In 2019, new rules on how banks or payment services providers verify customers’ identities or validate payment instructions were introduced to further enhance the security of payments and limit fraud. These...
Digital finance and retail payments: European Commission launches two targeted consultations
On 3 April 2020, the European Commission (EC) launched consultations in two areas: digital finance and retail payments. The EC recognises that the coronavirus pandemic has shown that consumers and businesses are...
ESMA publishes fund performance fee guidance
ESMA has published guidance on performance fees in investment funds, applicable to UCITS and AIFs that are open-ended (but not EuVECAs). The guidelines are designed to harmonise the way fund managers charge performance...
Emergency consultation by the FCA
The FCA has proposed a range of targeted temporary measures designed to quickly support users of certain consumer credit products who are facing a financial impact due to coronavirus. The package is intended to...
In-action is a breach of duty and amounts to concealment for Limitation defences
In Canada Square Operations Ltd v Mrs Beverley Potter [2020] EWHC 672 (QB) , the High Court heard an appeal by the creditor against the decision of Mr Recorder Rosen QC. In the decision it was found that the creditor...
PSR publishes Annual Plan and Budget for 2020/2021
The Payment Systems Regulator (PSR) has published its annual plan and budget, which sets out its key aims and activities for the year 2020/21 alongside its expected costs. The PSR acknowledges that, due to the impacts...
Regulator Covid-19 update 31 March
Payment Services and SCA Today, the FCA has published an updated version of its webpage on strong customer authentication (SCA) under the Payment Services Regulations 2017 (PSRs 2017). Protecting customers –...
Regulators publish 2020/2021 MELL
PRA has published a feedback statement and final rules on the FSCS Management Expenses Levy Limit (MELL) for 2020/2021. In CP 1/20, the PRA and FCA consulted on a proposed MELL of £83.2 million for 2020/21, which...
Annual increase to FOS award limit confirmed
The FOS award limit is the maximum amount FOS can require a firm to pay when it upholds complaints. This limit is adjusted each year in line with inflation. From 1 April 2020, the new award limit will be: £355,000 for...
PSR release Confirmation of Payee update in light of Covid-19
On 20 March, the PSR released an update on Confirmation of Payee (CoP) in light of Covid-19. The PSR have considered their regulatory approach and all things considered have advised the directed banks that if they are...