The FCA has updated its webpage on digital regulatory reporting (DRR) by publishing – a video which explains the concept of DRR and outlines the work carried out by the DRR pilot group; a report which sets out an...
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FIN. Team
BCBS Statement on crypto-assets
The Basel Committee on Banking Supervision has published a statement on crypto-assets. The Committee acknowledges that while the crypto-asset market remains small relative to that of the global financial system, and...
ESMA speaks on fund priorities
Steven Maijoor has spoken on ESMA’s priorities in fund regulation. He focused on how consumer investments progress over time, and the role of costs, looking at ESMA’s costs and performance report on retail...
FCA introduces rent-to-own price cap
FCA confirmed today that it would be introducing a price cap in the rent-to-own (RTO) market. The regulator said that it wanted to “bring down prices on RTO agreements where the overall costs to consumers are...
APP Scam Steering Group announces voluntary code to combat fraud
The Authorised Push Payment (APP) Scams Steering Group announced that it has agreed a voluntary Code of good practice. The Code aims to better protect customers and reduce the occurrence of APP fraud. It sets out the...
UK CSD to be recognised by ESMA in the event of a no-deal Brexit
ESMA has announced that in the event of a no-deal Brexit, the Central Securities Depository (CSD) established in the UK, Euroclear UK and Ireland Ltd, will be recognised as a a third country CSD to provide its services...
FCA SETS OUT DETAILS ON POST BREXIT REGULATION OF CRAs
The FCA has updated its webpage on credit rating agencies (CRAs) in order to reflect the transitional provisions under the Credit Rating Agencies (Amendment etc) (EU Exit) Regulations 2019 (SI 2019/266) (CRA...
Court rules that Brexit is not frustrating event for a lease
The High Court has ruled that a European agency cannot terminate the lease of their premises at Canary Wharf on the basis of Brexit being a ‘frustrating event’. Our article provides more detail on this case...
FCA gives NPPR guidance
FCA has provided some further guidance to help firms filling in the NPPR forms.
Ireland and Luxembourg allay Brexit funds concerns
Ireland and Luxembourg have both made announcements designed to give comfort to their funds that use UK based portfolio managers: The Deputy Governor of the Bank of Ireland said in a speech that it was making good...
FCA ‘Dear CEO’ letter on misleading financial promotions
The FCA has published a ‘Dear CEO’ letter in which it provides clarity about the communication and approval of financial promotions by regulated and unregulated businesses. The FCA has published the letter...
Brexit and Immigration Law seminar series
One of the most fundamental ways in which Brexit is likely to affect many businesses, is the impact on immigration law. This is particularly the case for the financial services and insurance sectors, which have long...
UK and US sign Bilateral Agreement on insurance and reinsurance matters
The UK and the US signed the Bilateral Agreement between the United States and the United Kingdom on Prudential Measures regarding Insurance and Reinsurance on 18 December, although the announcement was made today by...
FCA EVALUATION ON REDUCING BARRIERS TO ENTRY INTO THE UK BANKING SECTOR
The FCA has published an evaluation paper on reducing barriers to entry into the UK banking sector. In its paper, the FCA evaluates the impact that the 2013 reforms to the authorisations process and a shift in approach...
Policy Statement on final RTS secure customer authentication
In September 2018, the FCA consulted on new or amended rules, directions and guidance to implement the Regulatory Technical Standards for strong customer authentication and common and secure open standards of...
FCA publishes finalised guidance on fairness of variation terms in FS contracts
The FCA has today published finalised guidance (FG18/7) setting out what it believes firms should consider under the Consumer Rights Act 2015 when varying a term in their consumer contracts. The guidance includes a list...
CMA announces reforms to loyalty penalty
After investigating a “super-complaint” raised by Citizens Advice that companies were penalising existing customers by charging them higher prices than new customers, the CMA has today published its 8...
FCA final rules and guidance for CMCs
Following a consultation earlier this year, the FCA has published a policy statement setting out the new rules and fees that will apply to claims management companies (CMCs) from April 2019. From 1 April 2019, the FCA...
FCA consults on patient capital and permitted links
Following the Patient Capital Review on regulatory barriers to investment in illiquid “patient capital” assets FCA is consulting on: changes to the COBS 21.3 permitted links rules to enable retail investors...
BEIS confirms AML safeguards for partnerships
BEIS has published its response to its consultation on the reform of Limited Partnership law. It has confirmed new measures, applicable to all limited partnerships in the UK (and, for Scottish Limited Partnerships, in...
EC Review of the Distance Marketing Directive
The European Commission has launched a review of the Distance Marketing Directive (DMD) to assess whether it is relevant, effective, efficient, and in line with other EU legislation. The review follows an announcement...
CMA Consults on Annual Plan 2019/2020
The Competition and Markets Authority (CMA) is consulting on its proposed Annual Plan, which sets out its plans and priorities for 2019 to 2020. Subject to the outcome of the Brexit negotiations, the CMA plans to give...
MEPs vote on fund marketing changes
MEPs in ECON have voted through the proposals for changes to the rules on cross-border investment fund distribution. As part of the vote, they stipulated that marketing communications should be clearly identified as...
FCA publishes new IDD webpage
The FCA has today published a new webpage on requirements in its Handbook that apply to firms distributing insurance. The FCA says that although it expects firms will have already adapted their processes to take account...
FMLC comments on funds onshoring measures
FMLC has noted a number of legal uncertainties in the various draft onshoring legislation relating to investment funds and their managers. In relation to the drafts for AIFMs and Collective Investment Schemes, FMLC has...
Consultation on Pensions Dashboard
The Department of Work and Pensions (DWP) is consulting on proposals to create an industry-led system of multiple dashboards which will allow millions of people to access their pension facts and figures from most...
FCA delays Credit Information Market Study
FCA announced today that it will be delaying the launch of its Credit Information Market Study Terms of Reference until June 2019. The delay is a result of the FCA having to prioritise the market study on general...
DExEU publishes draft political declaration
On 22 November 2018, DExEU published the Draft Political Declaration setting out the framework for the future relationship between the United Kingdom and the European Union (“Draft Declaration“). The Draft...
Treasury announces more details on its approach to onshoring financial services legislation
On 22 November 2018, Treasury announced it was developing a draft SI for MAR. It proposes that the SI will address: the scope of the regulation; transaction reporting; notification requirements; transfer of functions;...
Working Group publishes pack on LIBOR transition
The Working Group on Sterling Risk-Free Reference Rates (Working Group) has published a communication pack entitled ‘Preparing for 2022: what you need to know about LIBOR transition’. The pack is designed to...
FSB announces appointment of new FSB Chair and Vice Chair
The Plenary of the Financial Stability Board (FSB) has announced the appointment of Randal K. Quarles (Governor and Vice Chairman for Supervision at the US Federal Reserve) as its new Chair and Klaas Knot (President of...
PSR Consultation on requiring confirmation of payee service
The Payment Systems Regulator (PSR) is consulting on its proposal to make general directions requiring payment service providers (PSPs) to implement a Confirmation of Payee (CoP) service. The consultation paper seeks...
Germany amends its FS legislation to enable UK firms to continue BAU
On 20 November 2018, Germany’s Federal Ministry of Finance announced that it had prepared draft legislation to provide continuity of business for UK insurers and banks. The draft legislation referred to as...
FCA consults on proposed price cap on the rent-to-own market and confirms final rules on extended warranties
The FCA has published a consultation paper (CP18/35) setting out its proposals to introduce a price cap on rent-to-own (RTO) firms, summarising the feedback to the consultation carried out in May 2018 on high-cost...
Treasury publishes draft Brexit Insurance Distribution and Distance Marketing laws
In readiness for the UK’s departure from the European Union, Treasury has published further draft statutory instruments including: Financial Services (Distance Marketing) (Amendment) (EU Exit) Regulations 2019:...
EIOPA’s chairman opens their 8th Annual Conference
EIOPA Chairman, Gabriel Bernardino, opened their 8th Annual Conference today in Frankfurt with his speech on insurance and pensions: securing the future, which is also the theme of this year’s conference. His...
FCA Speech on key issues identified by the Cryptoassets Taskforce
The FCA has published a speech by Christopher Woolard, Executive Director of Strategy and Competition at the FCA, delivered at the Regulation of Cryptocurrencies event on 20 November 2018. The speech highlights the key...
FCA outlines temporary permissions for funds
FCA has outlined how its temporary permissions Brexit regime will work for inbound EEA firms and funds. FCA carried out a survey earlier in the year for affected firms and funds, and urges relevant firms to complete it...
FCA publishes PPI complaints deadline progress report
On 24 October, the FCA published a report on the progress of its consumer communications campaign and supervisory work regarding the 29 August 2019 deadline for PPI complaints. The report looks at: The PPI campaign so...
EBA 2019 WORK PROGRAMME
The European Banking Authority (EBA) has published its work programme, setting out its main objectives, priorities and deliverables for 2019. The EBA’s 5 strategic areas for 2019 include to: lead the Basel III...
FSB holds its plenary meeting
The Financial Stability Board (FSB) has published a press release following its plenary meeting in Ottawa, in which it reviewed the financial vulnerabilities and deliverables for the G20 Summit. Points of interest...
PSR SPECIFIC DIRECTION TO OPERATOR OF THE LINK ATM SYSTEM
The Payment Systems Regulator (PSR) has published a Specific Direction (Specific Direction 8) given to Link Scheme Holdings Ltd, the operator of the LINK ATM system. The direction relates to the adoption of appropriate...
FCA evaluates bringing additional benchmarks into the regulatory and supervisory regime
FCA has today published Evaluation Paper 18/2 on the impact of bringing additional benchmarks into the regulatory and supervisory regime. The paper is the second of a new series of FCA evaluations on its past...
UK retail payments authority re-named and re-branded
The New Payment System Operator (NPSO) has today announced its new name and brand: Pay.UK The new name and identity is aimed at helping the payments authority to better promote its core purpose, which is to transform...
PRA publishes extension of SM&CR to insurers policy statement
On 18 October 2018, the PRA published responses to its consultation paper (CP) 18/18 ‘Strengthening accountability: implementing the extension of the SM&CR to insurers’. The policy statement (PS) 26/18...
FCA Feedback Statement on Digital Regulatory Reporting
The FCA has published a feedback statement on digital regulatory reporting. This follows the FCA’s call for input on smarter regulatory reporting in February 2018. The FCA found that most respondents agreed that...
FCA WRITES TO FIRMS ON AFFORDABILITY OF HCSTC LOANS
The FCA has published a ‘Dear CEO’ letter setting out the issues surrounding the increase in complaints about unaffordable lending (including complaints about a ‘chain’ of loans over an extended...
FCA publishes DP on climate change and green finance
Climate change is thought to have a significant impact on the UK’s financial services market and has led the FCA to publish its Discussion Paper on climate change and green finance (DP18/8). In its DP, the FCA...
FCA and SFC sign MoU on UK-Hong Kong Mutual Recognition of Funds
The FCA and Securities and Futures Commission (SFC) have signed a Memorandum of Understanding (MoU) on Mutual Recognition of Funds, which will allow eligible Hong Kong public funds and UK retail funds to be distributed...
FCA sets out its expectations on debt packager firms providing debt advice and counselling services
The FCA has published a ‘Dear CEO’ letter to debt packager firms, setting out its expectations on the provision of debt advice and counselling services. The FCA is concerned about the poor standards it has...
ESMA updates AIFMD FAQ
ESMA has updated its AIFMD FAQs to include questions on how notification requirements apply to AIFMs managing umbrella AIFs on a cross-border basis.
LMA’s Brexit Bulletin
The LMA’s recent bulletin, which was published on 2 October 2018, provided the Lloyd’s community and its members with: (i) new model clauses for EEA and non-EEA risks placed with Lloyd’s Brussels;...
ILPA updates members on activities
ILPA‘s (the Institutional Limited Partners Association) latest member update includes items on: a comment letter in response to SEC’s proposed Interpretation on the standard of conduct for investment...
FCA thematic review on credit broking remuneration models
The FCA has published its thematic review on the impact of credit broking remuneration models at the point of sale. The thematic review covered a wide variety of credit brokers offering loans or finance provided by a...
FCA consults on applying SM&CR to CMCs
The FCA has opened a consultation that sets out how it will apply the Senior Managers and Certification Regime (SM&CR) to Claims Management Companies (CMCs), following taking over regulation of them from 1 April...
Dear CEO letter to firms on preparations for transition from LIBOR
The FCA and PRA have published a joint ‘Dear CEO’ letter sent to major banks and insurers supervised in the UK regarding the preparations and actions they have taken to manage the transition from the London...
Ringleader sentenced in the FCA’s largest fraud prosecution
Michael Nascimento, the controlling mind of a £2.8m investment fraud was sentenced to 11 years’ imprisonment in the Southwark Crown Court. Between July 2010 and April 2014, members of the public were cold-called...
European Parliament resolution on the relationships between the EU and third countries concerning financial services regulation and supervision
The European Parliament has voted in plenary to adopt a resolution on regulatory and supervisory relationships between EU and third countries. In addition, it published a provisional edition of the resolution. In...
ESAs publish autumn report on risks and vulnerabilities in the EU financial system
The Joint Committee of the European Supervisory Authorities (ESAs) published its latest report on the risks and vulnerabilities in the EU financial system (JC 2018 34). The autumn report highlights the following risks...
FCA publishes final notices on client money
The FCA has published final notices in respect of One Call Insurance Services Limited and its majority shareholder John Radford for breaches in relation to client money and assets in the general insurance and protection...
Firms’ permissions cancelled for failure to be open and co-operative with the FCA
The FCA has cancelled the Part 4A permissions of two firms, Causeway Group Limited and Prime Render Solutions Limited . The cancellation of the permissions is due to both firms failing to satisfy the suitability...
Treasury publishes CRR Brexit regulations
The latest draft Regulations anticipating Brexit relate to capital resources requirements. The draft Capital Requirements (Amendment)(EU Exit) Regulations 2018 are intended to make sure the CRR can continue to operate...
FOS update on publication of complaints data
The Financial Ombudsman Service (FOS) has published a statement, following its October 2016 Consultation Paper and December 2016 Feedback Statement on complaints data publication. The Feedback Statement included...
ECB publishes the latest version of its Supervision Letter
The European Central Bank (ECB) has published the latest edition of its Supervision Letter. The August edition includes a recording of an interview with Ed Sibley, Deputy Governor of the Central Bank of Ireland and ECB...
FCA complaints handling review findings
The FCA has published its findings of the review of how Non-deposit Taking Mortgage Lenders (NDTMLs) and Mortgage Third-Party Administrators (MTPAs) handle complaints. In particular the review looked at how NDTMLs and...
Standard setters consult on incentives for OTC derivatives clearing
The FSB, Basel Committee, the CPMI and IOSCO have published a joint consultation on incentives to centrally clear OTC derivatives. The organisations want to look at how the post-crisis measures have worked and whether...
FCA Dear CEO Letter on cross border arrangements
The FCA has published a Dear CEO letter on cross border booking arrangements. In its letter, the FCA acknowledges that, in order to deal with the UK’s withdrawal from the EU, firms have put in place contingency...
EIOPA joins the Sustainable Insurance Forum
The European Insurance and Occupational Pensions Authority (EIOPA) has announced that it has become a member of the Sustainable Insurance Forum (SIF). The SIF is a network of insurance supervisors and regulators from...
FCA announces GFIN creation
FCA has announced the creation of the Global Financial Innovation Network (GFIN), in collaboration with 11 other regulators and organisations. This builds on FCA’s plans for a global regulatory sandbox and will...
ESMA response to EIOPA on AIFMD
ESMA has responded to some queries EIOPA raised with it on the definition of AIF and leverage in the AIFMD. EIOPA had asked: whether AIFs that use certain borrowing arrangements and derivative instruments under the...
ECB publishes draft regulation on money market statistics
The ECB has published a draft Regulation amending the Money Market Statistical Reporting (MMSR) Regulation. Since July 2016, the ECB has used the MMSR Regulation to collect data on the euro money market. In addition...
Tribunal rules on Validation Order on credit agreements brokered by unauthorised firm
The Tribunal has handed down its decision in the case of Plexedes Chickombe and 44 others v the FCA and Clydesdale Financial Services Limited trading as Barclays Partner Finance (Clydesdale) as interested party. The...
FCA consults on general standards and communication rules for payment services and e-money
The FCA has published a consultation paper on rules and guidance to improve conduct and communication in the payment services and e-money sectors. Currently, payment service providers and e-money issuers are subject to...
PSR reports on contactless mobile payments
The Payment Systems Regulator has published a report on contactless mobile payments (CMPs). It sees this as a growth area as people become more comfortable with using it, more contactless pay-points are available and...
FCA confirms no action will be taken against RBS for treatment of SME customers
The FCA has published an update on its investigation into RBS’s treatment of small and medium-sized enterprise (SME) customers transferred to its Global Restructuring Group (GRG). The FCA commissioned...
Mortgage Lenders agree on common standards to help longstanding borrowers
UK Finance has announced that together with the Building Societies Association and the Intermediary Mortgage Lenders Association, it has agreed common standards to help existing mortgage borrowers on a lender’s...
FCA’S FINAL RULES ON ASSESSING CREDITWORTHINESS IN CONSUMER CREDIT
The FCA has published a policy statement setting out its final rules and guidance on assessing creditworthiness in consumer credit. The policy statement summarises and responds to the feedback the FCA received to the...
PRA consults on CRR definition of default
The PRA has today published its consultation paper (CP) 17/18 on the definition of default. The CP follows the European Banking Authority’s (EBA) Opinion on the implementation of the regulatory review of internal...
FCA plans changes for loan-based crowdfunding
FCA is consulting on rule changes for loan-based crowdfunding platforms, following its post-implementation review. It has noted the market has developed, and models have become increasingly complex, since FCA’s...
PRA changes SII reporting format
On 26 July, the PRA published its policy statement (PS) 21/8 ‘Solvency II: Changes to reporting format’. The PS is a result of the PRA’s consultation paper (CP) 11/18, in which it proposed to change...
FCA seeks feedback on price discrimination in the cash savings market
The FCA has published a discussion paper on price discrimination in the cash savings market. The FCA is concerned that longstanding customers receive lower interest rates on easy access cash savings accounts products...
PSR MARKET REVIEW INTO THE SUPPLY OF CARD-ACQUIRING SERVICES
The PSR has published its draft terms of reference setting out the proposed approach to the market review into the supply of card-acquiring services that it intends to carry out. The review follows concerns that the...
ESMA updates funds FAQs
ESMA has updated its FAQs on the UCITS Directive and the AIFMD. New questions include those addressing when UCITS invest in UCITS with different investment policies and supervision of branches of UCITS management...
PRA consults on regulatory reporting
The PRA has published an occasional consultation paper on regulatory reporting. The consultation paper sets out proposed changes to the following reporting requirements: discontinuance of Prudent Valuation Return PV001;...
MOU ON THE REGULATION OF PAYMENT SYSTEMS
On 20 July 2018, the Bank Of England (BoE), the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA) and Payment Systems Regulator (PSR) published their Memorandum of Understanding in relation to...
EBA GUIDELINES ON FRAUD REPORTING UNDER PSD2
The European Banking Authority (EBA) has published its final report on the fraud reporting guidelines under PSD2 (Guidelines). The Guidelines have been published following the consultation which took place in August...
The FCA’s discussion paper on the introduction of a duty of care
Alongside the Approach to Consumers document, which was published on 17 July 2018, the FCA has published a discussion paper (DP18/5) on the introduction of a duty of care for financial services firms. In response to the...
The FCA’s Approach to Consumers
Following its consultation in November 2017, the FCA has today published its Approach to Consumers document which aims to address the concerns raised in the feedback to the consultation. The consultation took place...
Treasury publishes Brexit consumer credit changes
Treasury has published a draft statutory instrument setting out changes to consumer credit legislation consequent on Brexit. The draft has not yet been laid before the relevant parliamentary committees for...
FCA publishes interim report on investment platforms
FCA has published the interim findings of its market study on competition in the investment platform market. It has concluded that competition is working well for most consumers, but has identified a few areas that need...
FSB statement on reforming interest rate benchmarks
The Financial Stability Board (FSB) has published a statement on reforms to interbank offered rates (IBORs) and the development of overnight risk-free rates (RFRs) and term rates. Points of interest include: to...
EIOPA publishes Q&As on application of IDD
The first set of Questions and Answers (Q&As) on the application of the Insurance Distribution Directive (IDD) were published today by the European Insurance and Occupational Pensions Authority (EIOPA). Answers...
Andrew Bailey speaks on the transition from LIBOR
The FCA has published a speech by Andrew Bailey, Chief Executive of the FCA, on transitioning from LIBOR to alternative interest rate benchmarks. Although important steps have been taken towards transition, Andrew...
Banking (Cash Machine Charges and Financial Inclusion) Bill 2017-19
Parliament has announced that the second reading of the Banking (Cash Machine Charges and Financial Inclusion) Bill 2017-19 is scheduled to take place on Friday 23 November 2018. The Bill contains provisions which...
FCA publishes new version of its Approach Document on payment services and e-money
The FCA has published a revised version of its Approach Document on payment services and electronic money. The updated document includes new guidance on operational and security risks under PSD2; which can be found in...
European Parliament looks into use of cryptocurrencies and blockchain by criminals for illegal activities
A paper prepared by Policy Department A at the request of the European Parliament’s Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance delves into the increasing use of cryptocurrencies by...
PRA publishes Policy Statement on changes in insurance reporting requirements
On 6 July, the PRA provided feedback to responses to its Consultation Paper (CP) 2/18 “Changes in insurance reporting requirements” in Policy Statement (PS)16/18. CP2/18, published in January 2018, set out...
Discussion Paper on building the financial sector’s operational resilience
The Bank of England, the PRA and FCA have published a joint discussion paper on its approach to improve operational resilience in the financial sector. The regulators envisage that boards and senior managers can achieve...
BoE sets out next steps for prudential regulation of banks: present and future
Vicky Saporta, Executive Director for Prudential Policy at the Bank of England delivered a keynote speech on 4 July at The Westminster Business Forum. The speech focused on the impact of Basel III, which was finalised...
Changes in terminology. PRA updates its Supervisory Statements
The PRA updated a number of its Supervisory Statements (SSs) on 4 July 2018 to reflect changes in terminology, following the publication of policy statement 15/18 “Strengthening individual accountability in...