On 1 January 2018 the EU Benchmark Regulation (BMR) took full effect. Following the UK’s withdrawal from the EU and the end of the transition period, the BMR has been brought into UK law (UK BMR). Under the UK BMR, FCA...
Author - Harshil Patel
Harshil Patel
FCA launches consultation on ‘synthetic’ US dollar LIBOR
In June 2022, FCA’s consultation CP22/11 sought information on US dollar LIBOR exposures. Having considered these in its latest consultation, FCA considers that there is a case for: requiring publication of the 1...
PRA’s observations post-administration of the Arena Holdings Group of companies
Following the administration of Arena Holdings Group of companies, the PRA asked banks to provide details of lessons learnt from that event. The PRA has conducted a cross-firm review of banks’ lessons learnt and...
LMA launches Charter to support improvement in market culture
The Lloyds Market Association has launched its Charter which was unanimously approved by the LMA Board in July 2022. The Charter is aligned with the LMA’s five values – inclusive, trusted, passionate, bold and...
FCA confirms cessation of 1 and 6 month synthetic sterling LIBOR at end-March 2023
FCA required IBA to continue its publication of 1-, 3- and 6-month sterling and yen LIBOR settings for an additional year after end-2021. Following FCA’s consultation earlier this year, the majority of respondents...
PSR to regulate Sterling Fnality Payment System
HM Treasury has designated Sterling Fnality Payment System as a regulated payment system from 31 August 2022. Accordingly, PSR has confirmed that Sterling Fnality Payment System will be subject to PSR regulation from 31...
The future of Open Banking and the Joint Regulatory Oversight Committee
FCA, PSR, CMA and HM Treasury have published a joint statement on the future of open banking, announcing the creation of a joint regulatory oversight committee. The committee, co-chaired by the FCA’s Executive Director...
Clarity for lenders dealing with borrowers in distress
The Supreme Court has refused the Appellant’s application for permission to appeal against the Court of Appeal’s decision in Morley (t/a Morley Estates) (Appellant) v The Royal Bank of Scotland Plc...
Court refuses permission to appeal on CCA default notice
The Supreme Court has refused the Appellant debtor’s application for permission to appeal the Court of Appeal’s decision in Goodinson (Appellant) v PRA Group (UK) Ltd (Respondent) [2021] EWCA Civ 957...
Read our article on the new Consumer Duty
Following up on our headline post, we have written an article giving more detail on the Consumer Duty and highlighting some of the key changes since the FCA’s second consultation paper. The implementation deadline...
EIOPA consults on governance arrangements in third countries
EIOPA has launched a public consultation relating to a draft supervisory statement on the use of governance arrangements in third countries. EIOPA’s aim with the supervisory statement is to enhance the supervision and...
Climate-related disclosures improve but could still be better
FRC and FCA have published two reports which found that premium listed companies have made significant steps forward in the quality of climate-related information provided in their financial reports, but further...
CMA finds that six high street banks broke CMA banking rules
Six high street banks have broken rules imposed by the CMA under the Retail Banking Market Investigation Order 2017. Banks and building societies are required to follow strict rules when it comes to informing customers...
BoE and FCA accept transformation programme recommendations
BoE and FCA are leading a joint transformation programme with industry to transform data collection from the UK financial sector. They have published an initial set of recommendations from the programme and the response...
UK Government publishes proposals for a new AI rulebook
The UK Government has published its plans to regulate the use of AI which aim to to develop consistent rules that promote innovation. The approach is based on six core principles that regulators must apply, with...
PRA consults on unvested pay, MRTs and public appointments
PRA has launched a consultation on its proposed expectations in respect of changes to the instruments or claims that comprise unvested, deferred sums awarded to Material Risk Takers (MRTs) as part of their variable pay...
FCA’s CEO speaks on how the UK will regulate for the future
Nikhil Rathi, Chief Executive of the FCA, gave a speech on how it intends to regulate financial services for the future. A different regulator? He stressed that the FCA was: redesigning its operational platform to...
FSB reports on climate change roadmap
FSB has published its first annual progress report in the roadmap for addressing financial risks from climate change. FSB reported that good progress had been made against all four blocks of the roadmap: Firm-level...
PRA finds evidence that banks are reluctant to use their capital buffers
Victoria Saporta, Executive Director of Prudential Policy, gave a speech discussing banks’ reluctance to use their capital buffers. PRA requires UK banks to hold capital ‘buffers’, but the PRA has found evidence...
FCA responds to Treasury Committee on responsibilities regarding financial sanctions
FCA has written to the Treasury Committee to respond to questions regarding its financial sanctions responsibilities. FCA confirmed that its role was to ensure that regulated firms have appropriate systems and controls...
High Court finds that Robert Tchenguiz was correctly classified as an elective professional client and that there was no breach of COBS rules
Background Investor Robert Tchenguiz (T) had opened a spread betting account with CMC Spreadbet plc (CMC), and CMC had elected to treat T as a ‘professional client’. T’s classification as an elective...
FSB writes to G20 Finance Ministers and Central Bank Governors
FSB has written to the G20 Finance Ministers and Central Bank Governors highlighting that lower growth, rising inflation and tighter global financial conditions may crystallise pre-existing vulnerabilities in the global...
BoE provides update on risks from climate change
Anil Kashyap, a member of BoE’s Financial Policy Committee, has delivered a speech about the BoE’s work to ensure UK banks and insurers understand the risks from climate change. He discussed the following...
FSB sets out ways to improve the adoption of LEI for cross-border payments
The FSB has published a report exploring options to improve the adoption of the Legal Entity Identifier (LEI), in particular for use in cross-border payments. The report explores the benefits that could accrue from the...
ECB finds that banks must sharpen their focus on climate risk
The European Central Bank (ECB) has published the results of its 2022 climate risk stress test, which show that banks are not yet sufficiently incorporating climate risk into their stress-testing frameworks and internal...
EIOPA welcomes EU Commission’s proposal for an Insurance Recovery and Resolution Directive
EIOPA has published a staff paper in which it has welcomed the EU Commission’s proposal for an Insurance Recovery and Resolution Directive (IRRD). The IRRD is a comprehensive framework taking into account the...
FCA urges consumers struggling with rising prices to seek help
The FCA is urging consumers to get help as soon as possible if they are in financial difficulty because of the rising cost of living. The FCA, in collaboration with MoneyHelper, has published the following top tips for...
BoE issues Financial Stability Report for July 2022
The BoE’s Financial Policy Committee (FPC) seeks to ensure that the UK financial system is prepared for and resilient to the wide range of risks it could face. The BoE has published the summary and record of the...
FCA issues guidance on its approach to compromises
FCA has seen an increase in the number of regulated firms proposing compromises to deal with significant liabilities to consumers, in particular redress liabilities. FCA has issued guidance to clarify how it will...
High Court determines that the restructuring of a corporate loan to an individual was not unfair
In Bank of Beirut (UK) Ltd v Moukarzel [2021] EWHC 3777 (Comm), the High Court considered the Bank of Beirut (UK) Ltd’s (Bank’s) application for summary judgment in respect of a counterclaim brought against...
FCA consults on winding down ‘synthetic’ sterling LIBOR
FCA is consulting on winding down the 1, 3 and 6- month synthetic sterling LIBOR settings. As a reminder, FCA, the BoE, other international regulators and industry working groups in the LIBOR currency jurisdictions...
FCA plans to consult on sustainability disclosure requirements in autumn 2022
In response to growing consumer demand, firms are providing an increasingly diverse range of products that target various sustainability objectives, themes or characteristics. FCA acknowledges that there is also a risk...
Call for evidence on PRA’s ‘Strong and Simple Framework’
PRA’s Framework seeks to mitigate the ‘complexity problem’ that can arise when the same prudential requirements, including to control risks and hold adequate capital, are applied to all firms regardless of their size...
PRA consults on model risk management principles for banks
PRA has issued a consultation which proposes that all firms adopt five proposed principles to establish an effective model risk management (MRM) framework. The five proposed principles are: Model identification and...
Eurogroup issues statement on the future of the Banking Union
Since its creation in 2014, the Banking Union has made significant progress on an EU single rulebook, concerning the establishment of a new European architecture for supervision and resolution, and on reducing risks. In...
Upper Tribunal confirms compensation and validation possible for credit breaches
In its recent decision, the Upper Tribunal drew a distinction between the compensation regime available to consumers under section 28(2) of FSMA and the enforceability of a regulated credit agreement under section 28(3)...
FCA tells lenders to support customers with the cost of living
FCA has written to over 3,500 lenders to remind them of the standards they should meet as consumers across the country are affected by the rising cost of living. Firms are expected to understand the changing pressures...
FCA consults on strengthening access to banking
FCA has warned that some banks and building societies are not currently doing enough to properly understand the impact of branch closures, ATM conversions or service reductions and to keep their customers informed of...
BoE publishes first resolvability assessment of major UK banks
In its first resolvability assessment of 2022, the BoE has found that, if a major UK bank were to fail today, customers would be able to access their accounts and business services as normal. The BoE found that...
OFSI updates sanctions enforcement guidance
OFSI has updated its guidance on sanctions enforcement and monetary penalties, which will take effect from 15 June 2022. The changes reflect the amendments to enforcement powers created in the Economic Crime...
FOS announces new Chief Executive and Chief Ombudsman
FOS has appointed Abby Thomas to the role of Chief Executive and Chief Ombudsman. She joins from Virgin Media O2 and was trained as a strategy consultant before working for a number of telecoms companies.
Treasury to introduce service provider “critical third party” regime
Treasury has been working with BoE, PRA, FCA and other stakeholders to develop a proposal to protect against the failure of key service providers. Over recent years, firms have become increasingly reliant on key service...
FCA to act to prevent CMC phoenixing
New rules being introduced by the FCA will prohibit CMCs from carrying out regulated claims management activity in certain circumstances on claims or potential claims to the FSCS, where the CMCs have relevant...
Privy Council declines to extend the Quincecare duty to protect beneficial owners of funds
The Privy Council has handed down its decision in Royal Bank of Scotland International LLP (Bank) v JP SPC 4 and another [2022] UKPC 18, in which it confirmed that as a matter of law, banks do not owe a duty of care...
FCA publishes regulatory initiatives grid
The Financial Services Regulatory Initiatives Forum (FSRIF) has published its most recent biannual regulatory initiatives grid. The grid is designed to enable the financial services industry and other stakeholders to...
FOS secures up to £22 million in redress for consumers
FOS has published the results of a temporary outcomes code initiative launched in November 2021 As a result of the work done by the FOS, more than 90 businesses has resulted in 6,877 offers being made to customers and...
FCA fines and bans firms and individuals over pensions advice
FCA has issued final notices to two firms in relation to their pension advice business and misleading the FCA. The fact pattern for both firms was similar, involving their use of a Pension Review and Advice Process...
FCA refuses to authorise compliance firm to operate investment network
The FCA has refused to authorise Alexander Jon Compliance Consulting Limited (AJCC) to provide regulatory hosting services. AJCC applied to take responsibility for appointed representatives (ARs) carrying out regulated...
EU reaches deal on DORA
The EU Commission, EU Council and EU Parliament have reached agreement on the Commission’s proposal for a Digital Operational Resilience Act (DORA). The new rules aim to harmonise and strengthen digital...
ESAs call for improvements to PRIIPs KID
The ESAs have issued a joint supervisory statement regarding the ‘What is this product?’ section of the KID for PRIIPs. It aims to improve the quality of descriptions provided by PRIIPs manufacturers and thereby...
FCA issues update on multi-occupancy buildings insurance
FCA has written to Michael Gove MP, Secretary of State for the Department for Levelling Up, Housing and Communities, to provide an update on the FCA’s review of the annual price increases for multi-occupancy...
FCA bans 5 directors for causing losses to pension customers
The FCA has banned five directors of financial advice firms from working in financial services, after they caused significant losses to pension customers. The bans, and fines of over £1m, follow findings by the Upper...
PRA issues policy statement on trading activity wind-down
Following the four responses received to its consultation paper, the PRA has published its final policy on trading activity wind down. The policy statement is relevant to all PRA-authorised UK banks, their qualifying...
FCA hires trio of senior individuals
As part of its transformation programme, FCA announced that: Mel Gunewardena will take up a senior advisor role at the FCA; Graeme Reynolds has been appointed director of competition; and Simon Walls has been appointed...
PRA sets out proposals for a definition of a ‘Simpler-regime Firm’
PRA has issued a consultation paper to define a ‘Simpler-regime Firm‘, as a first step towards designing a strong and simple framework. A Simpler-regime Firm would be subject to a simpler, but robust, set of...
ESMA issues recommendations to improve investor protection
ESMA published its final report to enable investors to get the key information required to make well-informed investment decisions both quickly and easily, whilst also protecting them from aggressive marketing...
FSB issues consultation on supervisory and regulatory approaches to climate-related risks
FSB has launched a consultation on supervisory and regulatory approaches to monitor, manage and mitigate risks arising from climate change. FSB recommendations include: supervisory and regulatory reporting and...
FCA publishes H1 2022 complaints data
FCA has published its H1 2022 complaints data. In 2021 H2, financial services firms received 1.84m complaints, 10% lower than in 2021 H1 (2.04m). This is the lowest level recorded since 2016 H2. The insurance and pure...
FCA issues consultation on protecting investors in authorised funds affected by the invasion of Ukraine
FCA is consulting on rules which will allow Authorised Fund Managers to create separate unit classes (side pockets) for retail investment funds affected by the invasion of Ukraine. The Russian invasion of Ukraine has...
FCA launches Early and High Growth Oversight initiative
Following a successful pilot, FCA are expanding their Early and High Growth Oversight initiative, to provide targeted support for 300 newly authorised firms by the end of 2023. FCA will provide enhanced supervision for...
Head of Insurance Policy at PRA gives speech on the future of international insurance
Alan Sheppard, the head of Insurance Policy at the PRA, discussed how the PRA can foster the role of the UK as an international centre for insurance and reinsurance business. His speech focused on: the importance of...
PRA consults on fees and levies for 2022/23
PRA has issued a consultation paper setting out proposals for its fees for 2022/23. The proposals include: the fee rates to meet the PRA’s 2022/23 AFR; fees applicable to firms in the temporary regimes; changes to the...
FCA opens annual consultation on its regulatory fees and levies for 2022/23
FCA has published its 2022/23 Business Plan, setting out its priorities for the coming year and how it plans to achieve its objectives. The fees consultation explains how FCA proposes to recover the costs of carrying...
PRA issues discussion paper on supporting liquid asset usability
PRA has today issued a discussion paper on supporting liquid asset usability. In response to the global financial crisis 2007/2008, banks were required to have a large enough stock of HQLA to meet their payment...
FCA seeks input on use of synthetic data to support financial services innovation
FCA wants to better understand different market participants’ views on the extent to which synthetic data can expand data access and data sharing opportunities in the market. FCA is evaluating the maturity of...
PSR publishes its annual plan and budget for 2022/23
PSR has published its 2022/23 annual plan and budget. PSR stated that the payments landscape is evolving and there are issues that need to be addressed. These include the prevalence of APP fraud, risks to effective...
FCA provides market insights on its Innovation Hub
FCA’s Innovation Hub has been helping firms to develop innovative products and services since it was launched in 2014. FCA has recently provided an insight update on the data which it has gathered on the...
FCA consults on update to electronic reporting under DTR
FCA currently allows issuers to use, among other taxonomies, the UK Single Electronic Format (UKSEF) 2022 taxonomy from the Financial Reporting Council (FRC) to mark up their annual financial statements within the...
CMA makes recommendations for the future oversight of Open Banking
The CMA launched a public consultation on the future oversight of Open Banking in March 2021, and has now published the responses to that consultation. CMA’s recommendations are that the future entity should: have...
FCA publishes operational resilience insights for insurance firms
On 29 March 2021, the FCA, together with the BoE and PRA, published a shared policy statement on requirements to strengthen operational resilience in the financial services sector. The rules and guidance will come into...
EBA finds AML and CFT supervision of banks is improving
EBA published the findings from its assessment of competent authorities’ approaches to AML and CFT supervision of banks. Since the EBA started its reviews in 2019 and strengthened its AML/CFT guidance, national...
EIOPA publishes Insurance Stress Test recommendations
In 2021, EIOPA carried out a European-wide stress test in accordance with Article 21(2)(b) of Regulation (EU) No 1094/2010 of 24 November 2010 of the European Parliament and of the Council (EIOPA Regulation). EIOPA has...
Bank of England renews its commitment to the FX Global Code
The Bank of England has renewed the Statement of Commitment to the FX Global Code, based on the revised Code dated July 2021. The Code sets out principles of good practice in the foreign exchange market and by signing...
Government launches consultation on online advertising
The government has launched its Online Advertising Programme consultation which will review the regulatory framework of paid-for online advertising in a bid to improve transparency and accountability and tackle harmful...
Government outlines priorities for the digital regulatory landscape
Following the publication of the Plan for Digital Regulation last summer, the government has written to the Digital Regulation Cooperation Forum (DRCF) setting out its priorities for the digital regulatory landscape and...