In the case of R. (on the application of Manchikalapati) v Financial Services Compensation Scheme [2023] EWCA Civ 1006, the Court of Appeal reinstated a refusal by the FSCS to compensate policyholders for an insolvent...
Author - Laura Wiles
Laura Wiles
Estonian bank business transfer scheme permitted
The court has sanctioned a business transfer scheme under section 111 FSMA for Estonian bank AS LHV Pank (LHV) to transfer the deposit-taking, banking and regulated payment services business currently being carried on...
BoE publishes policy statement on wholesale cash distribution supervision
BoE has published a statement of policy and the responses to a consultation on its supervisory approach to market oversight for wholesale cash distribution (WCD) under its new powers under Part 5A FSMA 2023. BoE’s...
Treasury and FCA confirm approach on access to cash rules
Treasury has published a cash access policy statement setting out the Government’s approach to access to cash deposit and withdrawal services for UK current accounts. The aim of the statement is to inform...
FCA sets out expectations for travel rule compliance
FCA has set out its expectations for UK cryptoasset businesses subject to the so-called ‘travel rule’, which will require them to collect, verify and share information about cryptoasset transfers from 1...
FCA publishes interest-only mortgage research
FCA has published a research note analysing its data on the population of regulated interest-only mortgages that existed as at 31 December 2022. The analysis found that: Interest-only mortgages currently make up 9% of...
PSR consults on APP fraud reimbursement limit and consumer standard of caution
PSR has launched two consultations relating to the implementation of its new APP fraud reimbursement requirements, which mean that the vast majority of victims will be reimbursed within 5 days of the fraud being...
FCA invites PEPs to share their experiences with financial services firms
FCA is currently reviewing how financial services firms have applied the PEPs regime and whether changes to its guidance is required. It has now written a letter to PEPs directly inviting them to share their...
FCA publishes authorisations metrics Q1 2023/24
FCA has published its authorisations metrics for the quarter ended June 2023. FCA currently has: 2 red categories, relating to authorisations of EMIs and PIs 6 amber categories, relating to SMCR and AR related approved...
Treasury responds on payments systems regulation
HM Treasury has published a response to its 2022 call for evidence and consultation on payments regulation and the systemic perimeter. The Government confirms it will progress reforms to BoE and PSR’s respective...
FCA publishes letter on freedom of expression and provision of banking services
FCA has published a letter to HM Treasury on freedom of expression and the provision of banking services, in response to increased public concern about payment accounts being closed without fair justification. The...
FCA publishes Q2 fin proms data
FCA has published its financial promotions data for Q2 2023, which showed that 1507 promotions were amended or withdrawn as a result of FCA intervention. As with the data for Q1, the majority of cases related to retail...
Economic Affairs Committee questions BoE Governor on additional responsibilities under FSMA 2023
The Economic Affairs Committee has published a letter to Andrew Bailey, Governor of BoE, on its new responsibilities under FSMA 2023. The Committee’s ongoing inquiry into the operational independence of BoE has...
FCA confirms further temporary transaction reporting measures
FCA is implementing further temporary measures for the reporting of certain fields in MiFIR transaction reports. In January 2022, temporary measures were put in place for the reporting of the short selling indicator...
FSB publishes final reflections on LIBOR transition
FSB has published its thoughts on the final stage of the LIBOR transition, and the importance of markets remaining anchored in robust benchmarks in the post-transition landscape. Choice of reference rates FSB encouraged...
PRA consults on updating UKTS identification of global systemically important institutions
In line with the BCBS framework, PRA is consulting on updates to the UKTS methodology for identifying and setting a capital buffer for global systemically important institutions. The changes to the UKTS would include:...
FCA makes new rules
FCA’s latest Handbook Notice confirms: changes to ICOBS to reduce the impact of financial difficulties by enabling customers to maintain an appropriate level of insurance; amendments to FCA’s Glossary and...
Regulators publish revised Complaints Scheme
Following a joint consultation between FCA, PRA and BoE in July 2020, the regulators have set out final changes to be made to the Complaints Scheme. The revised Complaints Scheme and policy statement was initially due...
PRA consults on rules replacing retained Securitisation Regulation
PRA is consulting on proposed rules to replace retained EU law requirements on PRA-authorised persons contained in provisions of the Securitisation Regulation. Following the enactment of FSMA 2023, Treasury plans that...
FSB publishes statement on continuity of access to FMI services for firms in resolution
Following its October 2022 survey of banks, FMI intermediaries and FMIs about their experiences with its resolution planning framework, FSB has published a statement on continuity of access to FMI services for firms in...
FOS publishes Independent Assessor’s annual report for 2022/23
The Independent Assessor’s report confirms that during the financial year 2022/23, FOS resolved 209,491 cases, with 1.8% of those customers lodging complaints about the service. Complaints reduced by 1.9% since...
PRA fines Credit Suisse record £87m for risk management and governance failures
PRA has imposed a record fine of £87m on Credit Suisse for serious risk management and governance failures between 1 January 2020 and 31 March 2021 in connection with its exposures to Archegos Capital Management. This...
Commons discusses BBRS failings and alternative solutions
In a discussion on the BBRS, the House of Commons has outlined how the service failed to restore trust between SMEs and their lenders, or resolve a meaningful number of complaints. MPs also set out some alternative...
Market Watch considers transaction reporting issues
FCA’s latest edition of Market Watch explores transaction reporting issues, and highlights its concerns with firms not paying sufficient attention to its warnings on the importance of reporting transactions in a...
Government introduces rules on payment account closures and freedom of expression
Following its call for evidence on the PSRs, the Government has set out proposed reforms to enhance requirements relating to contract termination for payment accounts, as per the new powers conferred by FSMA 2023. Under...
BoE speaks on RTGS renewal programme
Victoria Cleland, Executive Director for Banking, Payments and Innovation at BoE, has delivered a speech at the UK Finance Summer Network Event on the benefits of BoE’s multi-year programme to renew the RTGS...
CME publishes annual report on SME banking behavioural undertakings compliance
CMA has published its annual report on compliance with the SME banking behavioural undertakings 2002, covering the period from 1 July 2021 to 30 June 2022. The report analyses how well 8 UK banks have complied with...
FCA to launch Digital Sandbox permanently
Following successful pilots, FCA’s Digital Sandbox will be made permanently available on 1 August 2023. Until now, the platform has only been available on a temporary basis to institutions participating in FCA...
Government rejects Treasury Committee’s suggestion to regulate retail crypto trading as gambling
The Treasury Committee has published the Government’s response to its report on Regulating Crypto. The report had concluded that consumer trading in unbacked cryptocurrencies more closely resembles gambling than a...
FCA publishes letter on establishing CBA Panel
In a letter to the Treasury Committee, FCA has set out its work on establishing the new CBA panel and publishing a statement of policy on its approach to CBA, as required by FSMA 2023. In June, the Committee sent a...
FCA prosecutes individual over unauthorised investment scheme
FCA has started criminal proceedings against Daniel Pugh for one fraud offence and three offences of breaching FSMA. FCA alleges that Mr Pugh defrauded investors out of approximately £1.3m via an unauthorised CIS...
PRA consults on proportionality in Pillar 3 remuneration disclosures
PRA is consulting on proposals to enhance proportionality of Pillar 3 remuneration disclosure requirements, by reducing the number of disclosures required for many smaller banks and building societies. This consultation...
FCA and ICO confirm expectations for communications to savings customers
FCA and ICO have published a joint letter to UK Finance and the Building Societies Association, confirming that savings providers can inform their customers of the best interest rates available to them, even where...
Banks and FCA respond to Treasury on further savings rates queries
Early in July, the Treasury Committee progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. The banks and FCA...
Regulatory Initiatives Forum provides update following FSMA 2023 Royal Assent
The co-chairs of the Financial Services Regulatory Initiatives Forum have published an update following the Royal Assent of FSMA 2023. Given its significance for the financial services regulatory landscape, the Forum...
FSB publishes global regulatory framework for crypto-asset activities
FSB has published its finalised regulatory framework for the supervision of crypto-asset activities to promote the comprehensiveness and international consistency of regulatory and supervisory approaches globally. FSB...
Treasury Committee launches inquiry into barriers faced by women in finance
The Treasury Committee has launched an inquiry into the barriers faced by women in financial services – Sexism in the City. The Committee asks for evidence on the follow topics: Progress made in removing the...
FCA consults on how financial promotions requirements apply to social media
FCA is consulting on guidance on how its financial promotion requirements apply to promotions made on social media. Financial promotion rules are designed to be technology-neutral and apply to all channels used to...
FSB updates roadmap for addressing climate-related financial risks
In July 2021, FSB published a comprehensive roadmap to address climate-related financial risks. It has now delivered a progress report on the roadmap as required by the G20. Physical risks and a disorderly transition to...
FCA fines Bastion Capital London for financial crime control failings
FCA has fined Bastion Capital London Limited (in liquidation) £2,452,700 for serious financial crime control failings in relation to cum-ex trading. The firm had failed to manage the risk of being used to facilitate...
Financial Regulator Complaints Commissioner publishes annual report
The Financial Regulator Complaints Commissioner has published its annual report for 2022/23 reviewing how the UK financial services regulators consider complaints. This year, 421 cases were dealt with by the...
Supreme Court rules in favour of Barclays in APP fraud case
The Supreme Court has handed down its decision in the case of Philipp v Barclays Bank UK PLC [2023] UKSC 25. Barclays had appealed a decision from the Court of Appeal that it owed the customer a contractual duty not to...
Treasury calls for input on future of payments review
Treasury has issued a call for input as part of its Future of Payments Review 2023, which will report on the steps required to deliver world leading retail payments in the UK and boost UK fintech competitiveness. The...
FPC publishes Financial Stability Report
BoE has published the July 2023 Financial Stability Report, setting out FPC’s view on the stability of the UK financial system and what it is doing to remove or reduce any risks to it. FPC notes that the current...
FPC outlines approach to setting countercyclical capital buffer
FPC has published its approach to setting the countercyclical capital buffer (CCyB). Its approach is based on six core principles: Ensuring that the UK banking system is better able to absorb shocks without an...
BoE 2022/23 Stress Test results show resilience in UK banks
BoE has published the results of its 2022/23 stress test of the UK banking system. The test scenario was more severe than the 2007-08 financial crisis and substantially more severe than the current macroeconomic outlook...
FCA speaks on regulatory approach to Big Tech and AI
Nikhil Rathi, Chief Executive at FCA, has delivered a speech at The Economist on FCA’s emerging regulatory approach to Big Tech and AI. It notes that with the “right guardrails in place”, AI can offer...
BIS publishes report on crypto ecosystem and risks
BIS has published a report outlining the key elements of the crypto ecosystem and their structural flaws. The report was submitted to the G20 Finance Minister and Central Bank Governors. The three key takeaways are:...
Treasury publishes CCA reform plans
Treasury has published the outcome of its consultation on reforming the Consumer Credit Act 1974 (CCA). The Government’s intention is that reform will facilitate innovation in the credit sector and increase...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
Treasury publishes new PARs customer information requirements
Treasury has published the outcome of its consultation on customer information requirements in the Payment Accounts Regulations (PARs) 2015. It confirms the government’s intention to revoke Part 2 and Schedules 1...
Treasury consults on first financial market infrastructure sandbox
Treasury is consulting on the first financial market infrastructure sandbox delivered under the powers granted to it as part of FSMA 2023. The Digital Securities Sandbox (DSS) will enable digital securities to be tested...
Treasury revokes PRIIPs and outlines new UK retail disclosure regime
Treasury has published the outcome of its consultation on revoking the PRIIPs Regulation and introducing a more suitable alternative. The PRIIPs Regulation had been widely criticised due to the misleading information it...
Treasury publishes investment research review
In March 2023, Treasury launched its investment research review to consider levels of financial services investment research in the UK, and its contribution to UK capital markets competitiveness. The review was part of...
LSB publishes SME green finance report
LSB has published a report highlighting challenges in the SME green finance market and exploring how banks and lenders can support their customers to become more sustainable. The report concludes that while demand for...
PSR consults on APP fraud reimbursement directions
Following its June policy statement on its new APP fraud reimbursement requirement, PSR is consulting on two draft instruments set to implement the rules. The first specific requirement looks at the rule changes needed...
FSB holds Frankfurt plenary
The FSB Plenary met in Frankfurt to discuss preliminary lessons learned from the recent banking sector turmoil and the outlook for global financial stability. The Plenary also agreed its deliverables to the July G20...
BoE and FCA deliver on Transforming Data Collection phase one commitments
BoE and FCA have published an update on their joint Transforming Data Collection (TDC) programme, concerning: Delivery of their phase one recommendations; Progress of the phase two use cases; The Data Standards Review;...
BCBS consults on core principles for banking supervision
BCBS is consulting on revisions to its Core principles for effective banking supervision (Core Principles). In its April 2022 review, BCBS sought to reflect supervisory and regulatory developments, structural changes in...
FCA publishes findings from liquidity management frameworks review
FCA has published findings from its multi-firm review of liquidity management frameworks. It sought to understand what improvements have been made since its November 2019 letter to AFMs detailing good practice in...
FCA warns cryptoasset firms of financial promotion regime expansion
FCA has published a letter to cryptoasset firms marketing to UK consumers on complying with the expanded financial promotions regime set to apply from 8 October 2023. The letter comes after the FSM Bill received Royal...
FCA sets fees and levies for 2023/24
FCA has published its regulatory fee and levy rates for 2023/24. The regulator is freezing minimum fees, flat rate fees and application fees in an effort to encourage competition and support firms facing inflationary...
FCA highlights good and poor practice in general insurance market for customers in financial difficulty
FCA has published examples of good and poor practice arising out of its review of how the general insurance market supports customers in financial difficulty and handles claims. For customers whose policies had been...
Call for evidence on Treasury’s SME finance review
The Treasury Committee has issued a call for evidence as part of its inquiry into the financing of SMEs. On industry issues, the Committee asks: What are the key challenges SMEs face when seeking finance? Through which...
Treasury Committee probes further on savings rates
The Treasury Committee has further progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. In...
US dollar LIBOR panel ends
The US dollar LIBOR panel has ended, meaning that the overnight and 12-month US dollar LIBOR settings have permanently ceased. All new use of synthetic US dollar LIBOR is now prohibited under the Benchmarks Regulation...
FCA publishes insurance guidance on supporting customers in financial difficulty
Following its January consultation, FCA has published finalised insurance guidance on supporting customers in financial difficulty. In November 2020, FCA published guidance for insurance and premium finance firms to...
PRA publishes second policy statement on depositor protection rules
Following its September 2022 consultation, PRA has published a second policy statement on updates to its depositor protection (DP) rules. The first policy statement, published 31 March 2023, concerned changes to the so...
PSR outlines changes to card scheme and processing fees
PSR has published a third working paper on its market review of card schemes and processing fees. It previously published papers on competitive constraints and approach to profitability analysis. The latest paper...
FCA implements Mortgage Charter rules
FCA has published a policy statement setting out changes to the MCOB sourcebook to support the implementation of the Government’s Mortgage Charter. The rule changes take effect immediately from 30 June, and enable...
PRA consults on rule review
PRA is consulting on its proposed approach to reviewing its Rulebook, as required by the FSM Act. Rule review is a well-established part of PRA’s existing approach to policy making, and consists of four key steps...
Government consults on AML supervision reform
Treasury is consulting on reform to the AML and CTF supervisory system, in line with commitments in the Economic Crime Plan 2023-6. Treasury’s 2022 review of the UK’s AML/CTF regime identified that there had...
PRA sets fees and levies for 2023/24
Following its April consultation, PRA has published a policy statement confirming the fees and levies payable for the 2023/24 fee year. Respondents welcomed the reduction year-on-year to the Annual Funding Requirement...
PRA consults on adapting Solvency II to UK market
PRA is consulting on its review of Solvency II to adapt the framework to the UK insurance market. The significant reforms proposed build on the Government’s response to its own Solvency II review consultation, and...
Regulators call on firms to support customers amid cost of living crisis
FCA, Ofgem, Ofcom and Ofwat have published a joint Dear CEO letter calling on firms to support customers struggling with the increased cost of living and keep prices fair. The letter notes FCA’s Financial Lives...
FCA outlines concerns with sustainability-linked loans market
FCA has published a letter to heads of ESG and sustainable finance, setting out its review of the sustainability-linked loans (SLL) market. Interest rates in SLLs are linked to meeting certain agreed sustainability...
FCA widens access to LTAF
FCA has published its final rules on giving a wider group of retail investors and defined contribution pension schemes access to Long Term Asset Funds (LTAF). The rules recategorise a unit in an LTAF from a Non-Mass...
Government and regulators agree consumer support action plan
Chancellor Jeremy Hunt has chaired a roundtable with CEOs from CMA, FCA, Ofcom, Ofgem and Ofwat as part of the Government’s plan to halve inflation this year and return to the 2% target. Treasury expects that the...
FCA speaks on innovation in financial services
Sheldon Mills, Executive Director of Consumers and Competition at FCA, has delivered a speech at the CityUK Annual Conference on how innovation and regulation in financial services can drive the UK’s economic...
Government agrees support measures for mortgage holders
The Government has met with the UK’s principal mortgage lenders and FCA to agree a new mortgage charter providing support for residential mortgage holders. Recent market indicators show that mortgage arrears and...
FCA and SFO publish MoU on enforcement co-operation
FCA and SFO have published their MoU setting out their intentions to cooperate in relation to new investigations, intelligence developments, investigations and prosecutions. The ‘Principles of Co-operation’...
LSB reviews business lending code
LSB is consulting on its review of the Standards of Lending Practice for business customers. The consultation contains questions relating to: The impact of economic and regulatory developments Protections for customers...
BoE speech: building blocks of resilience
Sarah Breeden, BoE Executive Director of Financial Stability, Strategy and Risk, has delivered a speech on resilience within Liability Driven Investment (LDI) funds at Westminster Business Forum policy conference. The...
‘Scale challenger’ banks respond to Treasury Committee on savings rates
The Treasury Committee last month expanded its campaign for banks to increase savings rates offered to loyal customers, questioning why easy access savings rates are much lower than the current BoE base rate. The...
FMSB reviews “3 Lines” risk management model
FMSB has published its Spotlight Review and Risk Register on the “3 Lines” Model. Previously known as the “3 Lines of Defence”, the model envisages the 1st line of risk management frameworks...
FCA publishes crypto promotion final rules
FCA has published a policy statement on financial promotion rules for cryptoassets following its January 2022 consultation. The consultation proposed to clarify cryptoassets as “Restricted Mass Market...
Financial Lives 2023 snapshot shows impact of rising cost of living
FCA has published a snapshot of its most recent Financial Lives survey, which it carried out in January 2023. It found: 1.4m more adults missed payments on domestic bills or credit commitments in 3 or more of the...
FCA publishes portfolio letter for SIPP operators
FCA has published a portfolio letter to SIPP operators which sets out its view of the key harms in the SIPP operator portfolio, its expectation as to how firms should mitigate these harms, and how its expectations in...
FCA publishes latest Financial Lives survey
FCA is inviting participants in its 2022 Financial Lives survey to take part in the new follow-up survey, which looks to understand what has changed in financial services for people in the UK over the last year. The...
Treasury calls for proposals on growth and competitiveness metrics
Treasury has published a call for proposals on which metrics FCA and PRA should publish in relation to the secondary growth and competitiveness objectives introduced under the FSM Bill. The consultation notes that the...
PRA publishes policy statement on SMCR form changes
Following its January 2023 consultation, PRA has published a policy statement setting out changes to the SMCR forms in its Rulebook. In particular, PRA will: Amend the Senior Managers Regime – Applications and...
BoE consults on approach to enforcement
BoE has published a consultation paper on its approach to enforcement. In particular, it proposes making a number of amendments to existing documents, creating a consolidated set of statements of policy entitled...
FCA publishes report on 2022 whistleblowing survey
FCA has published a report setting out the findings from its whistleblowing qualitative assessment survey 2022, which engaged with a small sample of recent whistleblowers who disclosed concerns about wrongdoing to the...
BoE speech: challenges and opportunities for the mutual sector
David Bailey, BoE Executive Director for UK Deposit Takers Supervision, has delivered a speech including many references to Eurovision entries but substantively on credit risk at The Building Societies Association...
PRA publishes its 2023/24 Business Plan
The PRA Business Plan sets out PRA’s strategy, workplan, and budget for 2023/24. It will be delivered through the following strategic goals: Maintain and build on the safety and soundness of the banking and insurance...
PSR to change regulatory fees structure
Following its December 2022 consultation on whether its fee structure remains appropriate, PSR has published a policy statement setting out changes for 2023/24 onwards. The existing structure has been in place since...
PRA speech: moderation in the Bulk Purchase Annuity market
Charlotte Gerken, PRA Executive Director – Insurance, has delivered a speech on trends in the Bulk Purchase Annuity (BPA) market at the 20th Annual Conference on Bulk Annuities. The speech noted that pension...
LSB publishes its 2023/24 Business Plan and Budget
The Lending Standards Board (LSB) has published its Business Plan and Budget for 2023/24. Its focus areas this year will include financial resilience and digital journeys, and its ongoing work on the prevention of APP...
PSR speech: Innovate Finance Global Summit
Aidene Walsh, Chair of PSR, has delivered a speech at the Innovate Finance Global Summit on innovation from a regulatory perspective and promoting development in payment systems. The speech referred to recent headlines...
BoE updates on improvements to depositor outcomes
Following its December 2021 policy statement on the approach to setting a minimum requirement for own funds and eligible liabilities (MREL), BoE considered whether recent innovations in technology in the banking system...