The FCA and ICO have written a joint letter on supporting AI, innovation and growth in the financial services industry. The regulators acknowledge the importance of regulatory certainty around the use of technologies...
Author - Laura Wiles
Laura Wiles
FCA publishes review of firms’ treatment of vulnerable customers
The FCA has published findings from its review of how firms are responding to the needs of customers in vulnerable circumstances. The FCA also sought to assess whether its existing vulnerability guidance remained...
FCA sets out good practice for the consumer support outcome
The FCA has published findings from its review of firms’ approaches to the consumer support outcome of the Consumer Duty. In May 2024, the FCA conducted a qualitative survey of 407 firms across the retail...
FCA publishes quarterly consultation
The FCA has published its regular quarterly consultation on miscellaneous amendments to its Handbook. The proposed amendments include: Re-alignment of the disclosure requirements in BCOBS 4.3.4R(2) for non-ring-fenced...
PSR critiques card scheme and processing services market
The PSR has published the final report in its market review into card scheme and processing fees, concluding that the current market is not working well for card scheme and processing services. Key takeaways from the...
PRA consults on raising leverage ratio threshold for retail deposits
The PRA is consulting on increasing the retail deposits leverage ratio threshold to £70bn. Firms with over £50bn in retail deposits or £10bn of non-UK assets are currently required to meet a minimum leverage ratio...
FCA researches explanations to consumers on AI outputs
As part of its AI research series, the FCA has published a research note exploring the effectiveness of different methods for explaining AI outputs to consumers in the context of determining consumer creditworthiness...
FCA publishes skilled persons data for Q2 / Q3 2024
In the quarter ending September 2024, the FCA commissioned 14 skilled persons reports: 6 reports related to consumer investments, 2 to insurance, 2 to wholesale markets (buy-side) and 4 to wholesale markets (sell-side);...
FCA announces winners of competition on economic growth research
The FCA has announced the winners of its research competition on economic growth. The competition was launched in November 2024, and attracted 43 entries from 41 organisations. Each successful project will be awarded up...
FCA and BoE speak on T+1 implementation
Sasha Mills, BoE Executive Director of Financial Market Infrastructure, and Mark Francis, FCA interim director of wholesale markets sell-side, have delivered speeches on the implementation of T+1 settlement at a UK...
FSB seeks feedback on implementation of global regulatory framework for crypto-asset activities
The FSB is seeking feedback as part of its thematic peer review on the implementation of its global regulatory framework for crypto-asset activities. The FSB has distributed a questionnaire to relevant jurisdictions to...
PRA sets out future approach to policy
The PRA has set out its approach to policy under the FSMA 2023 regulatory framework, which gave the regulatory wider rule making responsibilities and enhanced accountability requirements. The Approach document has now...
Government agrees 2027 implementation for T+1 settlement
The Accelerated Settlement Taskforce (AST) Technical Group has published its final report on T+1, setting out a detailed plan for the UK to move to faster settlement of securities trades. The report recommends –...
FCA fines Mako in cum-ex trading investigations
The FCA has fined Mako Financial Markets Partnership LLP £1,662,700 for financial crime systems and controls failures. The firm had also failed to adequately apply policies and procedures it did have in place. The case...
FCA researches potential mortgage pricing differences by demographic characteristics
As part of its AI research series, the FCA has published a report on the potential for pricing differences by demographic characteristics in the mortgages market. The FCA compared mortgage features like interest rates...
FOS sets out approach to CMC fees
The FOS has published a policy statement setting out its approach to charging professional representatives a fee of £250 if they wish to refer a case to its service. The new arrangements will take effect from 1 April...
FCA 2024 fin proms data shows increased action against misleading adverts
The FCA’s latest financial promotions data shows 19,766 promotions were amended or withdrawn in 2024, almost doubling the 2023 figure of 10,008. In previous reporting, the FCA acknowledged this sharp increase was...
Lords Committee calls for FCA to cease “naming and shaming” enforcement plans
The Financial Services Regulation Committee has published a report – Naming and shaming: how not to regulate – setting out its views on the FCA’s controversial ‘naming and shaming’...
FCA reforms commodity derivatives framework
The FCA has published a policy statement on reforms to the regulatory framework for commodity derivatives. The 2023 consultation covered key pillars of the regime, including position limits and related exemptions...
FCA speaks on culture
Emily Shepperd, FCA chief operating officer, has delivered a speech on culture at the 10th Annual Culture and Conduct in Financial Services Summit. The speech, titled “Culture is contagious” highlights that...
UK Finance sets out principles governing customer vulnerability disclosures in mortgage sector
UK Finance has published a set of principles for information sharing between mortgage intermediary firms and lenders. The FCA has advised that it continues to see vulnerable consumers face challenges when disclosing...
FCA secures £500,000 confiscation order against insider dealer
The FCA has secured a confiscation order of £586,711.01 against Mohammed Zina, a convicted insider dealer. The order amounts to all of Mr Zina’s available assets, and must be paid within 3 months, otherwise he...
HM Treasury launches call for evidence on AI in financial services
The Treasury Committee has launched a new inquiry into the potential impacts of increased use of AI in banking, pensions and other financial services. It is seeking evidence on how financial services can utilise AI...
FCA sets out priorities for payments portfolio firms
The FCA has written a letter setting out its priorities for payments portfolio firms. Since its previous letter in March 2023, the regulator noted that it had seen improvements in governance arrangements, risk...
UK and Japan publish Financial Regulatory Forum Joint Statement
The UK and Japan held the 3rd Financial Regulatory Forum on 20 January 2025 – with two joint sessions held on Transformation of the Global Landscape and Sustainable and Climate Finance. The UK contingent was made...
FCA secures £6m confiscation order against fraudster
The FCA has secured a confiscation order of £5,963,376.15 against Guy Flintham, who is currently serving a 6-year prison sentence after pleading guilty to fraud by false representation in relation to a fraudulent...
FCA publishes Handbook Notice on collective investment schemes sourcebook updates
The FCA has published a Handbook Notice describing changes to COLL as set out in the Collective Investment Schemes Sourcebook (Concentration Limits) Instrument 2025, which came into force 31 January 2025. Following a...
FCA outlines supervision strategy for CMCs
The FCA has written to claims management companies (CMCs) outlining its supervision strategy, including its updated view of the harms and risks that CMCs pose and its expectations for firms in the sector. The FCA...
FCA sets out supervision priorities for mortgage intermediaries
The FCA has written to mortgage intermediaries outlining its supervision priorities for the next 2 years. Its key focus will be on embedding the Consumer Duty. Other priorities include: Quality of advice and unsuitable...
FCA outlines wholesale broker supervision strategy
The FCA has published a Dear CEO letter to wholesale brokers, setting out its new supervision strategy for firms. In the last 2 years, the FCA has engaged with firms on issues including risk management, financial crime...
FCA settles care home investment scheme claim against solicitors
The FCA has settled a claim against solicitors Lupton Fawcett LLP in respect of work undertaken for the Qualia Group by a former member of the firm. The FCA previously brought a successful claim in the High Court...
FSB sets out 2025 priorities
The Financial Stability Board (FSB) has set out its work programme for 2025. Priority areas include: Supporting global cooperation on financial stability Enhancing the resilience of non-bank financial intermediation...
FOS anticipates 37,000 fraud and scams complaints next financial year
The FOS expects fraud and scams to account for 35% – or 37,000 – of incoming banking and loan complaints in the coming financial year. This is an increase on the 33,000 fraud and scams cases it forecast to...
PRA outlines supervision priorities for international banks and deposit takers in 2025
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...
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 gaps in available research.
Applicants are invited to submit research proposals focussing on areas within the FCA’s remit, such as:
Growth and productivity of the UK financial services sector
International competitiveness of the UK financial services sector
Supporting the UK’s economy and considering regulatory impacts
Each winner will be awarded up to �30,000 to fund their research project.
Applications close on 15 December 2024. Winning proposals will be selected by 22 December, and successful applicants will have until 31 March 2o25 to complete their research.
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...