The Serious Fraud Office (SFO) has charged Barclays Bank Plc (Barclays) with unlawful financial assistance contrary to s151(1) and (3) of the Companies Act 1985. This relates to the financial assistance Barclays gave to...
Author - FIN. Team
FIN. Team
The standards of lending practice for personal customers review
The Lending Standards Boards (LSB) has announced that it intends to review the Standards of Lending Practice for personal customers (Standards). The LSB is seeking input from registered firms, industry bodies, consumer...
Illegal money lender imprisoned
An illegal money lender has been sentenced to imprisonment of 3.5 years for offences under FSMA and the CCA. In addition to bringing the successful prosecution against Dharam Gopee, FCA also successfully obtained a...
ESMA publishes 2018 Risk Assessment Work Programme
ESMA has published its Risk Assessment Work Programme for 2018, in which it establishes priorities for assessing securities market risks. ESMA will complement ongoing market monitoring through its semi-annual Report on...
Commission launches AIFMD survey
The European Commission is carrying out a survey on how the AIFMD has worked in practice and how it has met its objectives. Anyone can respond to the online survey.
FCA and ICO update on GDPR
An update from FCA and the ICO confirms FCA’s view that firms can comply with both the GDPR and its rules. The update notes that GDPR is a board level responsibility, and firms must produce evidence to show what...
ESMA updates MiFID 2 FAQ
ESMA has updated its Q&As on transparency and market structure issues under MiFID 2. The latest additions cover pre-trade transparency waivers.
PRA publishes policy statement on strengthening individual accountability in insurance
PRA has published a policy statement on strengthening individual accountability in insurance: optimisations to the SIMR. The policy statement follows on from an ealier consultation (CP8/17) and includes: feedback on the...
ESMA UPDATES Q&As
The European Securities and Markets Authority (ESMA) has issued updates of its Q&As on: the implementation of the European Markets Infrastructure Regulation (EMIR). The purpose of the document is to promote common...
FCA speech – The future of the city
On 5 February 2018, Andrew Bailey, FCA Chief Executive, delivered a speech, the Future of the City, which focuses on the transition to Brexit and the future of the UK regulatory regime. Key highlights include: the FCA...
PRA consults on changes relating to IDD commencement date
The PRA has published a consultation paper on amending the effective date of its rules implementing the IDD, in response to proposals from the European Commission to push IDD implementation back from 23 February 2018 to...
Treasury delays transposition of IDD until the application date is confirmed
The European Parliament and European Council are considering the proposal to delay the application date of IDD until 1 October 2018. The Treasury has updated its webpage to explain that it will delay making the...
FCA review of Board Effectiveness
The FCA has published a report of the independent review into the effectiveness of its Board. The review was undertaken by Independent Audit Limited. The review involved interviews with Board members, a review of...
FCA updates on high-cost credit sector
Following a Feedback Statement in which FCA identified key areas of concern in the high-cost credit sector, it has published an update on the work undertaken since the July 2017 publication. This presents an emerging...
FCA sends “Dear CEO” letter on APP fraud
FCA has published a “Dear CEO” letter emphasising the work required to combat authorised push payment (APP) fraud. This follows the Which? super-complaint in September 2017, and the Payment Systems...
EIOPA revises work programme for 2018
The European Insurance and Occupational Pensions Authority (EIOPA) has published a revised version of its 2018 work programme, which was first published in September 2017. The revised version incorporates resources...
FCA’s thematic review on the fair treatment of existing interest-only mortgage customers
The FCA has published a thematic review (TR18/1) on the fair treatment of existing interest-only mortgage customers. The FCA has been examining the fair treatment of customers with interest-only mortgages and has been...
European Commission publishes report on implementation and impact of EMD2
The European Commission has published a report on the implementation and impact of the second Electronic Money Directive (EMD2). The report focuses on the application of prudential requirements for electronic money...
FCA fines online broker £1,049,412 for poor market abuse controls and failure to report suspicious client transactions
The FCA has fined online broker, Interactive Brokers (UK) Limited (IBUK), £1,049,412 for failings in its post-trade systems and controls for identifying and reporting potential market abuse between 6 February 2014 and...
FCA publishes views on PRIIPs performance scenario concerns
FCA has published a statement following concerns raised about the performance scenarios in the PRIIPs KID. Some firms have noted that occasionally this information may appear to optimistic and risk misleading consumers...
GDPR compliance: the final countdown
We have written an article on the final countdown to GDPR compliance.
FCA consults on widening FOS access for small businesses
FCA has opened a consultation on plans to provide more small businesses with access to FOS. The changes proposed would allow FOS complaints redress to approximately 16,000 SMEs, charities and trusts, by changing the...
The new Office for Professional Body Anti-Money Laundering Supervision established
The new regulator for anti-money laundering, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), was launched on 18 January 2018 thereby strengthening the UK’s anti-money laundering (AML)...
ESMA updates transparency calculations for MiFID II/MiFIR
The European Securities and Markets Authority (ESMA) has published an extended version of MiFID II/MiFIR transitional transparency calculations (TTC) for equity and bond instruments. ESMA has added the applicable TTC...
FSCS PUBLISHES PLAN AND BUDGET FOR 2018/2019
The Financial Services Compensation Scheme (FSCS) has published its Plan and Budget for 2018/2019. The Plan and Budget outlines the FSCS’s expected management costs and initial levy forecasts financial services...
The PRA postpones the introduction of its reporting proposals set out Pillar 2 liquidity consultation paper
The PRA has updates its webpage relating to its consultation paper on Pillar 2 liquidity (CP13/17). In its consultation paper, the PRA set out its proposals on a cash flow mismatch risk framework and other...
The PRA’s “Dear Chair” letter on consumer credit
On 17 January 2018, the PRA published a “Dear Chair letter” following a review on consumer credit lending (covering credit cards, personal loans and motor finance) and the publication of its statement on...
Joint Committee of ESA’s final guidelines under revised Wire Transfer Regulation
The Joint Committee of the European Supervisory Authorities (ESA) has published its final guidelines under the Wire Transfer Regulation (Regulation (EU) 2015/847) in each of the official languages of the EU. The...
ECA’S REPORT ON THE OPERATIONAL EFFICIENCY OF THE ECB’S CRISIS MANAGEMENT FOR BANKS
On 16 January 2018, the European Court of Auditors (ECA) published a report on the operational efficiency of the European Central Bank’s (ECB) crisis management for banks. The report states that although the ECB...
Responses to the Treasury Committee’s report on Solvency II
The House of Commons Treasury Committee has published HM Treasury’s response and the PRA’s interim response to its report on the Solvency II Directive and its impact on the UK insurance industry. HM Treasury...
IFRS 9 transitional arrangements – EBA Final Guidelines and the PRA’s “Dear CFO” letter
The EBA’s final Guidelines on disclosure requirements of IFRS 9 Following its consultation in July 2017, the European Banking Authority (EBA) has today published its final Guidelines on disclosure requirements of...
ICO fines 4 firms for nuisance calls and spam texts
The ICO has fined four firms a total of £600,000: Barrington Claims Limited had made over 15 million automated calls about PPI; Newday Limited used other firms to send 44.7 million spam emails to promote its financial...
PRA proposes changes to insurers’ reporting requirements
As part of its review into the implementation of Solvency 2, PRA has published a consultation paper on changes to insurance reporting requirements. The changes are designed to reduce the burden for Solvency 2 firms and...
AFME publishes post trade DDQ
AFME has published a revised post-trade due diligence questionnaire to help global custodians. The new version harmonises and simplifies the DD process and now includes 20 additional questions to the original 2016...
PRA consults on MREL reporting
PRA is consulting on changes to its Supervisory Statement 9/13 to reflect its expectations for reporting in the minimum requirement for own funds and eligible liabilities. It seeks comments by 9 April.
FCA INSIGHT ARTICLE: Who is driving consumer credit growth?
The FCA has published an Insight article that considers who is driving consumer credit growth. Although regulators have relied upon aggregate data from larger lenders to monitor which lenders are driving credit growth...
FCA fines and bans former RBS trader, Neil Danziger
The FCA has fined former Royal Bank of Scotland (RBS) interest rate derivatives trader, Neil Danziger, £250,000 and has prohibited him from performing any function in relation to any regulated financial activity. The...
Charles Randell becomes new FCA and PSR chair
Charles Randell CBE has been appointed the new chair of FCA and the PSR with effect from 1 April.
FCA consultation paper on aligning FSCS levy time period
The FCA has published a consultation paper on aligning the Financial Services Compensation Scheme (FSCS) levy time period (CP18/1). The FCA recently made changes to the FSCS funding arrangements as part of a broader...
Memorandum of Understanding between the FRC and FCA
The Financial Reporting Council (FRC) and Financial Conduct Authority (FCA) have published a Memorandum of Understanding (MOU) setting out: the respective statutory regulatory responsibilities of the FRC and FCA; the...
FCA updates AIFMD transparency reporting information
FCA has published updated guidance on reporting Annex IV transparency information under the Alternative Investment Fund Managers Directive (AIFMD). The document details: Transparency reporting requirements (pursuant to...
ILPA issues Model Subscription Agreement
In December, the Institutional Limited Partners Association (ILPA) issued the first in a series of model documents to be produced through its Limited Partnership Agreement (LPA) Simplification Initiative. The Model...
Opinion of the EBA on the transition from PSD1 to PSD2
The European Blanking authority (EBA) has published an opinion (EBA/Op/2017/16) on the transition from the Payment Services Directive (2007/64/EC) (PSD) to the revised Directive on payment services in the internal...
EBA Discussion Paper – Implementation in the European Union of the revised market risk and counterparty credit risk frameworks
The European Banking Association (EBA) has published a discussion paper (EBA/DP/2017/04) on the EU implementation of the revised market risk and counterparty credit risk frameworks. The discussion paper focuses on the...
FCA statement on the EBA Guidelines on Operational and Security Risks under PSD2
In response to the European Banking Authority (EBA) Guidelines on Operational and Security Risks under PSD2, published on 12 December 2017, the FCA published a statement on its website reminding payment service...
ESMA UPDATES ITS Q&As RELATING TO MIFID II
The European Securities and Markets Authority (ESMA) has today published updated versions on its Questions and Answers (Q&As) relating to topics under the MiFID II Directive (2014/65/EU) and the Markets in Financial...
Agreement on the EU proposals to prevent money laundering and terrorism financing reached
The European Parliament and the Council has announced they have reached a political agreement on the EU Commission’s proposal to further strengthen EU rules on anti-money laundering and counter terrorist financing...
FCA updates on persistent debt
FCA has updated its consultation paper on its proposals for rules to help customers in persistent credit card debt. The revised proposals follow feedback on its April consultation. Respondents were in favour of...
Commission adopts MiFID 2 trading equivalence decisions
The Commission has recognised a number of trading venues in the US, Australia and Hong Kong as equivalent for the purposes of the MiFID 2/ MiFIR share trading obligation. This follows publication in the OJEU of the...
FCA writes to CEOs on PFOF
FCA has written a Dear CEO letter, expressing its concerns on the continued practice of “payment for order flow”. Despite FCA having criticised the practice in the past, it is aware that many brokers are...
EBA publishes PSD2 security measures guidelines
EBA has published its final guidelines on security measures for operational and security risks of payment services required by PSD2. The guidelines require PSPs to have in place: an effective operational and security...
FCA highlights transaction reporting and MAR issues
The latest edition of Market Watch looks at: a reminder that an investment firm’s transaction report must reflect the transaction from its own perspective, reporting its immediate counterparty or client (whether...
EIOPA publishes editable IPID template
EIOPA and the European Commission have developed an editable version of the IPID template. Under the IDD, the IPID is required to be provided for non-life insurance products to enable the customer to make a more...
PRA consults on internal models under Solvency 2
As part of its review into Solvency 2, PRA has published a consultation paper which proposes updated expectations of firms in respect of: the model change process set out in Supervisory Statement (SS) 12/16 ‘Solvency...
EIOPA publishes Opinion on monetary incentives and remuneration between asset managers and insurers
EIOPA has published an Opinion, addressed to national competent authorities (NCAs), which focuses on consumer protection issues related to monetary incentives and remuneration between providers of asset management...
PRA PUBLISHES policy statement on Pillar 2A requirements and disclosure
The PRA has today published a policy statement on Pillar 2A requirements and disclosure (PS30/17), which provides feedback to the responses to the consultation paper ‘Pillar 2A requirements and disclosure’ (CP12/17)...
Home Secretary announces new national economic crime centre to tackle high level fraud and money laundering
The Home Secretary Amber Rudd has announced plans to tackle economic crime to the assist in preventing fraud, money laundering and corruption. The measures include a new national economic crime centre within the...
FCA finalises account comparison rules
FCA has published its final rules to require personal and business current account providers to publish information that will help comparison of services from different providers. The rules, which will create a new...
FCA CLOSES CONSULTATION ON persistent debt and earlier intervention remedies
The FCA has updated its webpage on its consultation on persistent debt and earlier intervention remedies (CP17/10). Now that the consultation has closed, the FCA stated on its website that they are consulting on...
IAIS consults on an activities-based approach to systemic risk
The International Association of Insurance Supervisors (IAIS) has published an interim public consultation paper on an activities-based approach to systemic risk in the insurance sector. While the consultation paper...
PRA publishes feedback on general insurance stress test 2017
PRA has sent a letter to firms that were involved in the 2017 general insurance stress test and explained that its main findings were: the UK general insurance sector as a whole and individual firms are resilient to...
Lloyd’s reacts to Brexit developments
Reacting to the news that the UK and EU are planning to move to the next phase of Brexit talks, Lloyds has released a press release stating that it is pleased that the Brexit talks can now enter the second phase...
ECB Transcript of the public hearing on the addendum to the ECB Guidance on non-performing loans
The European Central Bank (ECB) has published a transcript of the public hearing on the addendum to the ECB Guidance on non-performing loans, held on 30 November 2017 at the ECB’s main building premises in...
ECB approves major projects in the field of large-value payments and collateral management
The European Central Bank (ECB) has announced the approval of the consolidation of the Eurosystem’s real-gross settlement system TARGET2 and the securities settlement system platform TARGET2-Securities (T2S), as...
EBA’s speech on fintech and cloud in banking
The European Banking Authority (EBA) has published Slavka Eley’s, Head of Supervisory Convergence Unit at the EBA, speech given at the EBF Cloud banking Conference. Slavka Eley’s speech covered three aspects...
FCA roundtables on high-cost credit
The FCA has issued a paper summarising the issues and ideas raised by participants in the FCA roundtables, held in September and October. The roundtables covered discussions on (i) alternatives to high-cost credit and...
LMA publishes London Market Core Uses Information Notice in light of GDPR
The Lloyd’s Market Association (LMA), along with the International Underwriting Association of London, the London & International Insurance Brokers’ Association and the British Insurance Brokers’...
Government to use rental payment data to improve credit scores
Treasury has announced it is to offer financial support for the development of an application to allow those who rent properties to record and share their rent payment data, with a view to this helping them to improve...
US MiFIR equivalence decision in OJEU
The decision to consider the legal and supervisory framework of the USA applicable to designated contract markets and swap execution facilities as equivalent to MiFIR standards under MiFIR has been published in the...
Treasury updates AML advisory
On 5 December 2017, HM Treasury published an Advisory Notice on money laundering and terrorist financing controls in higher risk jurisdictions. The Advisory Note follows the Financial Action Task Force (FATF) statements...
CMA consults on its 2018/19 annual plan
The Competition and Markets Authority (CMA) is consulting on its draft annual plan, which sets out its plans and priorities over the next year. Interested parties have the opportunity to provide views and comments on...
BEIS gives payment surcharge guidance
BEIS has published guidance on the Consumer Rights (Payment Surcharges) Regulations 2012. New rules come into force on 13 January 2018 as a result of PSD2 that ban surcharges on a wide range of transactions, while...
FCA speaks on financial advice
Megan Butler has spoken on assessing the value of financial advice. She spoke of the growing importance of financial advice as increasing numbers of people need help making “sense” of their choices. Recent...
EIOPA speaks on insurance and pensions
The Chairman of the European Insurance and Occupational Pensions Authority (EIOPA), Gabriel Bernardino, delivered a speech at EIOPA’s 7th annual conference on Insurance and Pensions Reloaded: A Game Changer. The...
Treasury Committee seeks LINK assurance
Nicky Morgan, chair of the Treasury Committee, has written to the Chairman of LINK seeking assurances on the continuity of provision of cash machines. There is a proposal to reduce the fee card issuers pay to ATM...
Financial Stability Report, November 2017
The Bank of England (BoE) has published its financial stability report, issue number 42. The report sets out the Financial Policy Committee’s (FPC), a sub-committee of the BoE’s Court of Directors, views of...
IAIS extends the deadline for comments on various insurance core principles
The International Association of Insurance Supervisors has extended the deadline for submitting comments on various insurance core principles (ICPs) and the ComFrame material integrated with ICPs to: 15 January 2018 in...
FSB will not be updating list of global systemically important insurers for 2017
The Financial Stability Board (FSB), in consultation with the International Association of Insurance Supervisors and national authorities has published a statement which explains it has decided not to publish a new list...
EBA repeals its Guidelines on retail deposits subject to different outflows for the purpose of liquidity reporting
On the 27 November 2017, the European Banking Authority (EBA) announced that it has decided to formally repeal its guidelines on retail deposits subject to different outflows for the purposes of liquidity reporting...
Credit Unions Act 1979 (Locality Common Bond Conditions) Order 2017
The Credit Unions Act 1979 (Locality Common Bond Conditions) Order 2017 (SI 2017/1144) has been published, along with an explanatory memorandum. The Order makes a change to section 1B(3)(a) of the Credit Unions Act...
Commission adopts PSD2 authentication RTS
The European Commission has finally adopted the RTS under PSD2 on strong customer authentication (SCA) and common and secure open standards of communication. The key purpose of the RTS is to create stringent security...
Law Commission finalises Goods Mortgages Bill
The Law Commission has published its final report on the Goods Mortgages Bill. This marks the end of a project that started in 2014, aimed at addressing the problems the outdated Bills of Sale Acts cause for borrowers...
Government to tax non-residents on UK commercial property disposals
The Chancellor announced in his Budget statement that he intends to bring gains made by non-UK residents from the disposal of UK commercial property within the UK tax net. Our briefing looks at the details of the...
FCA publishes a statement on LIBOR panels
The FCA has confirmed that all 20 of the panel banks for LIBOR (the London Interbank Rate) have agreed to support the LIBOR benchmark, ensuring the sustainability of the rate until 2021. The confirmation follows Andrew...
Initial coin offerings: regulation and the risks
We’ve written a briefing on recent regulatory warnings about ICOs, and how they may fall within the UK’s regulatory perimeter.
FCA speaks on regulatory priorities for retail banking
At the Westminster Business Forum on retail banking and payments, Karina McTeague, Director of Retail Banking Supervision, delivered a speech on the regulatory priorities in the retail banking sector. She explained...
Autumn Budget 2017: Key points for the financial services sector
Philip Hammond, Chancellor of the Exchequer, has delivered the Autumn Budget 2017. Key points for the financial services sector include: Asset management – the Government will publish a new long-term strategy to...
FCA fines former BAML trader for market abuse
FCA has fined Paul Walter, a bond trader formerly with Bank of America Merrill Lynch International, £60,090 for market abuse. It found Mr Walter created a false and misleading impression about the supply and demand in...
ABI publishes guide to help firms identify and support vulnerable customers in the long term savings market
ABI has published a guide to help firms operating in the long term savings market better understand, identify and support customers who may be vulnerable, to ensure all customers are supported through the whole customer...
OECD updates guidelines on insurer governance
The Organisation for Economic Co-operation and Development (OECD) has published revised guidelines on insurer governance. The guidelines are non-binding and serve as a reference point for insurers, governmental...
Legislative proposals to set the application date of IDD at 1 October 2018
Following the European Parliament’s call to postpone the application of the IDD to 1 October 2018, ECON has written to the European Commission asking it to take the Committee’s suggestion into account. ECON...
ENISA publishes recommendations on cyber insurance
The European Union Agency for Network and Information Security (ENISA) has published a report on the commonality of risk assessment language in cyber insurance. ENISA comments on the growth of the cyber insurance market...
David Davis’ speech on the financial services sector post Brexit
On 14 November 2017, David Davis, Secretary of State for Exiting the European Union, gave a speech on the post-Brexit relationship between the UK and the EU relating to the financial services sector. In his speech, Mr...
FCA advises providers of AIS and PIS to apply for authorisation under PSD2
On 14 November 2017, the FCA sent an email to businesses, including firms providing account information services (AIS) or payment initiation services (PIS) advising them to apply for authorisation or registration, under...
FCA speech on effective compliance with the Market Abuse Regulation
On 14 November 2017, the FCA published a speech delivered by Julia Hoggett, Director of Market Oversight at the FCA, at the ‘Recent Developments in the Market Abuse Regime’ conference. The speech focused on effective...
FCA warns consumers on risks of cryptocurrency CFDs
Following ESMA’s recent warnings to consumers and firms on the dangers of participation in initial coin offerings (ICOs), FCA has continued the regulatory focus on cryptocurrencies by issuing a consumer warning...
ESMA warns investors and firms on dangers of ICOs
ESMA has become the latest body to denounce initial coin offerings (ICOs), issuing statements directed at investors and firms highlighting the distinct risks involved. Echoing FCA’s previous warnings , ESMA has...
ICO launches new advice service to help small organisations with GDPR preparations
The Information Commissioner’s Office (ICO) has launched an advice line in order to help small organisations prepare for compliance with the EU General Data Protection Regulation (GDPR), which is due to come into...
Bank of England publishes a summary of the responses to its white paper on SONIA
The Bank of England (BoE) has published a summary of the responses it has received to its white paper (published in June 2017) on sterling risk-free reference rates (RFRs). The white paper set out the working...
FCA publishes MiFID 2 guide and updates IFPRU
At FCA’s latest board meeting, it made a new guide, the MiFID 2 Guide (to be known as M2G). The Guide takes the form of regulatory guidance under FSMA. FCA had consulted on the guide, which comprises two sections...