The PRA has published Dear CEO letters to international banks and designated investment firms, and UK deposit takers, setting out its supervision priorities for 2025. The need for robust governance, risk management and...
Author - Laura Wiles
Laura Wiles
PRA suggests “concierge” service for inbound firms to improve competitiveness
In response to a letter of 24 December 2024, the PRA has written to the Prime Minister, Chancellor and Secretary of State, setting out its ongoing work and plans to advance competitiveness and growth. The PRA sees its...
Chancellor to host industry forums on Financial Services Growth and Competitiveness Strategy
To inform the design of the inaugural Financial Services Growth and Competitiveness Strategy, the Chancellor is set to host a series of Industry Forums to seek views on the best way to deliver long-term in the sector...
LSB finds consumers lack awareness of BNPL costs
The Lending Standards Board (LSB) has published new research which concludes that consumers do not understand the true costs of Buy-Now, Pay-Later (BNPL) products. Data showed that: Only 52% of BNPL users were aware of...
FCA writes to Government on supporting growth
In response to a letter of 24 December 2024, the FCA has written to the Prime Minister, Chancellor and Secretary of State, setting out its ongoing work and plans to support growth. Digital innovation The FCA outlined...
PRA delays Basel 3.1 implementation
The PRA, in consultation with HM Treasury, has decided to postpone the implementation of the Basel 3.1 framework by one year to 1 January 2027. The delay will allow more time for clarity on how the framework will be...
FSB considers relevance of climate transition plans for financial stability
The Financial Stability Board (FSB) has published a report on the relevance of climate transition plans for financial stability. The FSB found that in providing forward looking information, climate transition plans can...
OFSI and OFAC sign MoU
HMT has published a MoU between the Office of Financial Sanctions Implementation (OFSI) and the United States Office of Foreign Assets Control (OFAC), to facilitate the exchange of information between the organisations...
BoE updates on digital pound
The BoE has published a report setting out the work it has done in the last year on the digital pound and the evolving payments landscape. The regulator has been working with HMT to explore the possibility of a digital...
FCA sets out expectations on redress liabilities and “polluter behaviours”
The FCA is increasingly seeing firms attempt to avoid potential or actual liabilities whilst still benefitting from the assets of the business, which it calls “polluting behaviour”. It has published new...
PRA outlines insurance supervision priorities for 2025
The PRA has published a Dear CEO letter to PRA-regulated insurance firms, setting out its supervision priorities for 2025. The key priorities reflect the ongoing developments in the context for life and general...
Regulators consult on FSCS management expenses levy limit 2025/26
The FCA and PRA are consulting on proposals for the Management Expenses Levy Limit (MELL) for the FSCS in 2025/26. The regulators propose the MELL for 2025/26 will be £108.6m, consisting of: the FSCS management expenses...
FCA fines Arian Financial for failings relating to cum-ex trading
The FCA has fined Arian Financial LLP £288,962.53 for financial crime systems and controls failures. The firm’s failure to implement adequate measure put it at risk of being used to support fraudulent trading and...
FCA sets out strategy for credit reference agencies and service providers
The FCA has published a portfolio letter to credit reference agencies (CRAs) and credit information service providers (CISPs) setting out its strategy for the next two years. The priorities will focus on: Embedding of...
HM Treasury confirms continuation of pension fund clearing exemption
Following a call for evidence in November 2023 on the exemption pension funds currently have from the obligation to clear certain derivates contracts at a central counterparty, HM Treasury has published responses from...
FCA objects to Change in Control due to notification failures
The FCA has issued a final notice objecting to the proposed acquisition of Olampicaran Limited by Mr Ahmed, who had failed to notify and seek approval from the FCA. Olampicaran was a small payments firm providing money...
Lords Committee writes to FCA on motor finance commission cases
The House of Lords Financial Services Regulation Committee has written to the FCA asking it to clarify certain elements of its position on the motor finance commission cases, as set out in a letter dated 13 November...
Regulators review MoU on payments systems
The BoE, FCA, PRA, PSR have reviewed their MoU on payments systems in the UK, as they are required to do on an annual basis. The regulators noted that over the past year they have taken steps to improve the sharing of...
FCA executes search warrants in relation to unauthorised businesses
The FCA, in conjunction with the West Midlands Police, the Eastern Region Special Operations Unit and Police Scotland, has executed search warrants in two investigations involving unauthorised debt and claims management...
FCA issues Supervisory Notice to Hydrogard Legal Services
The FCA has published a First Supervisory Notice against Hydrogard Legal Services Limited, a firm with claims management permissions, requiring it to immediate cease carrying on all regulated activities other than with...
FCA sets out updates to the National Storage Mechanism
Following a consultation, the FCA has set out its enhancements to the National Storage Mechanism (NSM). The changes will introduce more comprehensive metadata requirements to improve functionality, making it easier for...
FCA publishes latest Handbook Notice
The FCA has published its latest Handbook Notice, which confirms the following updates: Introduction of criminal background checks on owners and controllers at the authorisation gateway. The change is in line with a...
Regulators publish cyber findings for 2024
The BoE, PRA and FCA have published their latest annual CBEST thematic report. The report assesses the cyber resilience of key financial institutions through security testing performed in ‘live’ corporate...
FMSB publishes final client onboarding standard
The Financial Markets Standards Board (FMSB) has published its final Standard for Client Onboarding: Documentation and Processes. The Standard has been drafted to allow onboarding firms to continue to fully apply the...
PRA sets out policy on solvent exit planning for insurers
Following a consultation, the PRA has published a policy statement on solvent exit planning for insurers. The PRA had proposed new rules and expectations that firms must prepare for a solvent exit as part of their...
PRA postpones launch of dynamic insurance stress test
The PRA has announced that it is postponing the launch of the dynamic general insurance stress test (DyGIST) until May 2026. The delay is intended to reduce the burden on general insurers in 2025 as they prepare to...
FCA sets out findings on young investors’ decision-making
The FCA has found that two thirds of young investors take less than 24 hours to make an investment decision. Their latest research surveyed 2,000 UK investors aged 18 – 40, who had purchased a viral trend and...
FCA successfully appeals Upper Tribunal decision
The Court of Appeal has allowed the FCA’s appeal against an Upper Tribunal decision which asked the regulator to reconsider a proposed ban against an individual and directed that a fine should not be imposed. In...
FCA consults on PISCES platform framework
The FCA is consulting on the proposed framework for its Private Intermittent Securities and Capital Exchange System (PISCES). PISCES will be a new type of trading platform, enabling intermittent trading of private...
LSB review highlights importance of SME protections
The LSB’s review of registered firms’ application of its Standards of Lending Practice for business customers has found 102 areas where action has been required to bring firms into compliance with the...
PRA publishes authorisations performance report for Q3 2024
The PRA has published its report on its authorisations performance during Q3 2024/25, During the relevant period from 1 September to 30 November 2024, the PRA achieved 100% compliance with its service standards across...
FCA fines and bans a director and financial adviser for pension transfer advice
The FCA has banned and fined a director and financial adviser in relation to pension transfer advice failings. Richard Fenech was the sole director of Financial Solutions Midhurst Limited (FSML), responsible for...
BoE speaks on future of RTGS service
Victoria Cleland, Executive Director of Payments at the BoE, has given a speech on the Future Roadmap for BoE’s Real Time Gross Settlement (RTGS) service, at FinTech Connect. The BoE published a discussion paper...
BBRS Contemporary Scheme closes to new registrations
The BBRS’ Contemporary Scheme has closed to new registrations, as planned, at midnight on 13 December 2024. The BBRS will remain open to resolve complaints for customers that registered before the deadline. The...
FOS receives over 4,800 new cases from businesses
The FOS has received more than 4,800 new cases from small businesses this financial year. The most recent data covers the period from April – November 2024, and demonstrates that fraud and scams remain the most...
FCA seeks comments on cryptoasset market abuse and admission and disclosure regimes
The FCA is seeking comments on its approach to cryptoasset Admissions and Disclosures, and the Market Abuse Regime for cryptoassets (MARC). In November 2024, the government confirmed it will proceed with legislation to...
FCA publishes discussion paper on pensions regulation
The FCA has published a discussion paper on adapting requirements in the pensions sector. The FCA noted that these is a programme of policy changes underway to this area of the market, but wants the paper to stimulate...
FCA consults on reforms to advice guidance boundary for pensions
As part of its Advice Guidance Boundary Review, the FCA is consulting on targeted support reforms for pensions. The FCA identified a gap in the market between regulated, holistic advice to individuals at one end, and...
FCA conducts literature review on bias in supervised machine learning
The FCA has published a literature review on bias in supervised machine learning. It is the first of a series of planned research notes on bias in AI. The research note found: The main potential source of bias was data...
Supreme Court grants permission to appeal in motor finance cases
The Supreme Court has granted Close Brothers and FirstRand Bank permission to appeal in the cases of Johnson v FirstRand Bank t/a Motonovo Finance, Wrench v FirstRand and Hopcraft v Close Brothers. The cases all relate...
FCA sets out areas for improvement in complaints and root cause analysis
Following a review into 40 firms across a range of sectors, the FCA has set out guidance on good practice and areas for improvement for firms’ approaches to complaints and root cause analysis. The FCA identified...
FCA sets out good practice for Consumer Duty board reports
Following a review into 180 firms’ approaches to completing the first annual Consumer Duty board report, the FCA has set out guidance on good practice and areas for improvement. The FCA noted that the best reports...
FOS consults on 2025/26 plans and budget
The FOS is consulting on its proposed plans and budget for 2025/26. The FOS noted that due to the uncertainty around motor finance commission cases, and the wider regulatory review of the redress framework, its plans...
FOS publishes Independent Assessor’s annual report for 2023/24
The FOS has published the Independent Assessor’s report for the financial year 2023/24. During this period, the FOS resolved 192,077 cases, with 1.8% of those customers lodging complaints about the service. Of the...
FCA publishes mortgage lending statistics for Q3 2024
The FCA has published mortgage lending statistics for Q3 2024. The data comes from firms carrying out mortgage lending and mortgage administration, who are required to submit the Mortgage Lending and Administration...
BoE speaks on FX market lessons and settlement risk
Philippe Lintern, head of BoE’s foreign exchange division, has delivered a speech on lessons learnt from the history of the FX market, at FX Markets Europe. Lintern began by describing the success story of the...
IRSG publishes response to competitiveness and growth objectives inquiry
The International Regulatory Strategy Group (IRSG) has published its response to the House of Lords Financial Services Regulatory Committee’s inquiry into the FCA and PRA’s secondary international...
FCA updates Financial Crime Guide
Following a consultation, the FCA has made changes to its Financial Crime Guide. The changes cover the following areas: The FCA conducted extensive assessments of firms’ sanctions systems and controls following...
BoE sets out approach to stress testing the banking system
The BoE has set out its approach to stress testing the UK banking system from 2025 onwards, which will sit within its broader framework for assessing financial stability and the soundness of individual banks. The BoE...
BoE publishes system-wide stress test results
The BoE launched its first system-wide exploratory exercise of how a range of firms behave in stressed market conditions mid-2023, it has now published a final report on how the UK financial system would respond to a...
Financial Stability Report shows continued global risk and uncertainty
The BoE has published the Financial Policy Committee’s Financial Stability Report for November 2024. The report shows that uncertainty remains high due to risks associated with geopolitical tensions, global...
FCA consults on fees and levies for 2025/26
The FCA is consulting on proposals for changes to its policy on how it raises regulatory fees and levies. Proposed changes to the FEES Manual of the Handbook include: increasing the registration fee for Small Payment...
FCA fines former Wizz Air executive for closed period trades and disclosure failures
The FCA has fined the former chief supply chain officer at Wizz Air Holdings plc £123,500 for trading company shares when he was not permitted to, and failing to disclose those trades. Between April 2019 and November...
FCA speaks on future strategy
Emily Shepperd, FCA chief operating officer, has delivered a speech on the regulator’s incoming strategy, at the TheCityUK National Conference in Birmingham. The FCA’s new 5 year strategy is set to focus on...
FCA updates on crypto regulation approach
The FCA has updated on its approach to crypto regulation in the UK, including an indicative roadmap of key dates and a series of focused consultations. Recent research from the FCA found that approximately 1/3 of people...
FCA publishes research on crypto ownership
The latest FCA research on consumer attitudes and behaviours toward cryptoassets, 12% of UK adults now own crypto, up from 10% in previous findings. Other key findings included: Awareness of crypto rose from 91 to 93%...
FCA fines Macquarie Bank £13m for fictitious trades control failings
The FCA has fined Macquarie Bank Limited – London Branch £13m for serious control failures that allowed an employee to record over 400 fictitious trades. From June 2020 to February 2022, Travis Klein – based...
FCA launches research competition to drive economic growth
The FCA has launched its first competition to fund research projects on growth, competitiveness and regulation in UK financial services. The competition comes after a recent FCA literature review which found significant...
PSR publishes stakeholder submissions on card schemes and processing fees
The PSR has published the stakeholder submissions to its 2023 working paper on changes to card schemes and processing fees. Earlier this year, the PSR published its provisional findings on competition in the card...
FCA updates whistleblowing data
The latest whistleblowing data from the FCA, covering the quarter ending September 2024 shows: 322 new reports received (up from 253 in Q2 and 280 in the corresponding period last year), with nearly half of reports...
FOS confirms decision to introduce CMC fees
The FOS has published a letter, dated 8 October 2024, from its Chair, Baroness Manzoor CBE, to FCA Chair, Ashley Alder, confirming its board’s decision to introduce a fee for certain claims management companies...
FCA updates payments and e-money Approach Document on “reasonable grounds” for delaying payment
Following a consultation, the FCA has updated its payment services and e-money Approach Document to support amendments to the PSRs made in the Payment Services (Amendment) Regulations 2024. The provisions came into...
BoE and FCA report on AI in financial services
The BoE and FCA have published a report on their third survey of AI and machine learning in UK financial services. Use and adoption The regulators found that 75% of firms already use AI, with a further 10% planning to...
BoE publishes approach to FMI supervision and consultation on Fundamental Rules
The BoE has launched a consultation on proposals to create a set of Fundamental Rules for UK Financial Market Infrastructures (FMIs). It has also published its approach to FMI supervision in practice. In publishing...
FCA fines Metro Bank £16m for financial crime control failings
The FCA has fined Metro Bank PLC £16,675,200 for failures relating to the systems and controls it had in place to monitor transactions for money laundering risks. The period concerned spanned from June 2016 to December...
FCA sets out final rules on pensions dashboard services
Following two consultations, the FCA has published its policy statement setting out the regulatory framework for pensions dashboard service (PDS) firms. In addition to the standards the FCA expects of all regulated...
FATF publishes money laundering national risk assessment guidance
The FATF has published guidance on money laundering national risk assessments (NRAs). The guidance aims to support countries in conducting an NRA focussed on evaluating money laundering vulnerabilities. Key sections...
FCA convicts individuals for £1.5m investment fraud
The FCA has secured convictions against two individuals in relation to a £1.5m investment fraud. Between February 2017 and June 2019, Raymondip Bedi and Patrick Mavanga defrauded at least 65 investors by cold calling...
FCA begins criminal proceedings against individuals and firms for unauthorised business
The FCA has begun criminal proceedings against Anthony Hay, Laura Hay, Tim Stewart, Premier Finance GB Ltd and Proserv GBR Limited, for allegedly engaging in authorised business. The individuals are jointly charged in...
FCA partially reopens commercial and bespoke insurance consultation
Following its consultation on the regulation of commercial and bespoke insurance business, which closed on 16 September, the FCA has partially reopened questions in the discussion paper to gather more feedback. The...
FCA publishes SDR and investment labels disclosure examples
The FCA has published examples across a section of investment labels to demonstrate how firms might meet disclosure requirements under the Sustainability Disclosure Requirements (SDR) and investment labels regime, which...
FCA publishes lessons for operational resilience post-CrowdStrike
The FCA has published its observations and key lessons from how firms responded to the July 2024 CrowdStrike outage, and their preparedness to respond to future incidents. The FCA noted that it has seen a continuing...
FCA publishes culture and non-financial misconduct survey findings
The FCA has published a report setting out key findings from its February 2024 survey on culture and non-financial misconduct. The survey was issued to 1,028 regulated wholesale firms, and enquired about recorded...
FCA publishes Q3 fin proms data
The FCA has published its financial promotions data for Q3 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 10,593...
FCA speaks on vulnerability in the wealth management sector
Graeme Reynolds, director of competition at the FCA, delivered a speech on competition and vulnerability at the Personal Investment Management & Financial Advice Association’s (PIMFA) Wealth Vulnerability...
FCA and Practitioner Panel publish 2023/24 survey findings
The FCA and the Practitioner Panel have published a report setting out the findings of their 2023/24 joint survey of regulated firms. The majority of responding firms had a positive view of the FCA’s performance...
FCA targets illegal finfluencers
The FCA is interviewing 20 “finfluencers” under caution in a targeted action against social media account holders which may be promoting financial services products illegally. It has also issued 38 alerts...
PRA speaks on competing for growth
Sam Woods, Deputy Governor for Prudential Regulation and CEO of the PRA, delivered a speech on competing for growth at the Annual City Banquet. The speech focussed on the secondary competitiveness and growth objective...
BoE consults on 2024/25 supervisory fees for financial market infrastructure
The BoE has published a consultation paper setting out proposals for its supervisory fees for financial market infrastructure for 2024/25. Key proposals include: Spreading the charging for one-off costs related to...
FATF updates grey list criteria
The FATF has updated the criteria for its “grey list“, which sets out jurisdictions under increased monitoring who are working with the FATF to address with agreed timeframes the strategic deficiencies in...
PRA consults on large exposures framework
The PRA has published a consultation on the prudential framework for large exposures, which – alongside risk-weighted capital requirements – aims to protect firms from large losses resulting from the sudden...
FCA speaks on growth and enforcement proposals
Nikhil Rathi, FCA Chief Executive, delivered a speech on growth at the Annual City Banquet. His speech highlighted the FCA’s literature review on links between financial regulation and growth and that it will...
G7 Cyber Expert Group publishes guidance on combatting quantum computing risks in the financial sector
The G7 Cyber Expert Group (CEG) has published a statement highlighting potential cybersecurity risks arising from developments in quantum computing, and how these may be addressed by the financial sector. The CEG...
HMT publishes Banking Liaison Panel Terms of Reference
HMT has published the Banking Liaison Panel Terms of Reference, which include reference to: The Panel’s remit, including its broad purpose and the specific functions set out under section 10(2) of the Banking Act...
HMT adds draft recapitalisation chapter to Banking Act: special resolution regime code
HMT has added a new chapter to the Banking Act 2009: special resolution regime code of practice. The new chapter provides draft details of the recapitalisation payment mechanism introduced in the Bank Resolution...
BoE consults on amending MREL approach
The BoE is consulting on restating, where appropriate and with modifications, of UK Capital Requirements Regulation total loss-absorbing capacity (TLAC) provisions to the minimum requirement for own funds and eligible...
PSR publishes policy statements confirming APP scams reimbursement limit
Following its recent announcement confirming that it is reducing the maximum level that PSPs will have to reimburse APP scam victims to £85,000 per claim, the PSR has published two policy statements setting out details...
Court of Appeal confirms acceptance of PPI commission redress validly compromised claims
The claimants brought separate claims against Skipton Building Society and Santander Cards UK Limited, alleging that their respective relationships under credit agreements held with each firm were unfair on the basis...
FCA succeeds in BlueCrest redress scheme appeal
Following an Upper Tribunal decision in June 2023 which upheld an application by BlueCrest Capital Management (UK) LLP to summarily strike out a redress requirement imposed by the FCA for its purported breaches of...
FCA fines Starling Bank £29m for financial crime control failings
The FCA has fined Starling Bank Limited approximately £29m for financial crime failings related to its financial sanctions screening process, and for repeatedly breaching a requirement not to open accounts for high-risk...
FCA confirms forbearance in relation to investment trust disclosure requirements
Following the Treasury’s announcement that it would be excluding certain investment trusts from the PRIIPs Regulation and other EU-assimilated law, the FCA has confirmed it will be applying new regulatory...
Regulators publish joint statement on the end of LIBOR
The FCA, BoE and the Working Group on Sterling Risk-Free Reference Rates have issued a joint press release on the end of LIBOR. On 30 September 2024, the remaining synthetic LIBOR settings were published for the final...
FCA and BoE publish digital securities sandbox policy statement
Following a joint consultation on creating a Digital Securities Sandbox (DSS), the FCA and BoE have published a policy statement setting out their approach to safely adopting new technologies in the operation of...
UK Finance respond to FSB recommendations on cross-border payments services
UK Finance has responded to two consultations from the FSB, relating to the regulation and supervision of cross-border payment services providers (PSPs) and aligning cross-border payments and data frameworks. In the...
UK Finance and LSB respond on proposed reduction to APP reimbursement cap
UK Finance and the LSB have responded to the PSR’s urgent consultation on lowering the maximum level of reimbursement for Faster Payments APP scams to £85,000, a significant reduction from the previously agreed...
FCA Practitioner Panel responds to call for information on digital wallets
The FCA Practitioner Panel has published its response to the PSR and FCA’s call for information on the benefits and risks of digital wallets. The Panel noted some “clear and compelling” benefits of...
LSB to develop code on access to finance for ethnic minority-led business
The LSB is developing a first-of-its-kind code to break down barriers to finance for ethnic minority-led businesses (EMB). As the LSB’s 2023 report highlighted, ethnic minority entrepreneurs contribute an...
Government updates on UK Sustainability Reporting Standards
The Department for Business and Trade has updated on the Government’s framework creating UK Sustainability Reporting Standards (SRS). In 2023, the International Sustainability Standards Board published standards...
Treasury announces reforms to retail disclosure requirements
The Government and the FCA have announced plans to replace EU-inherited retail disclosure rules with a framework tailored to UK markets and firms. HMT previously consulted on replacing the PRIIPs Regulation with a new...
Court rejects COBS contravention claim against spread betting firm
The High Court rejected the arguments of a defendant who alleged that a claimant spread betting firm had contravened COBS by reclassifying him from a retail client to an elective professional client (EPC), meaning he no...