Economic and Monetary Affairs MEPs have voted in favour of a temporary common EU pilot regime for financial services based on distributed ledger technology (DLT). The project follows a ‘sandbox’ approach...
Author - Lucy Hadrill
Lucy Hadrill
FCA concerned on Provident scheme of arrangement
The FCA has published a second letter of concerns explaining to Provident why it does not support its proposed scheme of arrangement. The FCA’s key concern is that consumers are being offered significantly less...
FPC meets to discuss financial stability
The BoE has published the record of the Financial Policy Committee’s (FPC) meeting held on 30 June 2021. Meeting highlights include: The UK financial system has provided support to households and businesses to...
PRA updates on shareholder distributions by large UK banks
On 10 December 2020, the PRA published a statement on “Capital distributions by large UK banks” in which it set out guardrails for distributions to ordinary shareholders in relation to full-year 2020 results...
FOS: Independent Assessor’s Annual Report 2020-2021
Independent Assessor (IA), Dame Gillian Guy, has published her annual report of FOS for the year 2020-2021. The report looks at complaints received about the FOS and highlights areas for improvement. Key learning points...
G20 Finance Ministers and Central Bank Governors meeting
The G20 Finance Ministers and Central Bank Governors (FMCBGs) have had their third official meeting under the Italian G20 Presidency. Highlights include: The global outlook has improved, mainly thanks to the roll out of...
FCA publishes financial promotions case studies
The FCA has published two video case studies which show examples of good and bad practice when promoting financial services and which set out the FCA’s expectations for promotions to be clear, fair and not...
PRA policy statement on Basel implementation
Following its consultation earlier this year, the PRA has published a policy statement (PS) on its proposed new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK...
UK signs free trade deal with Norway, Iceland and Liechtenstein
The government has announced a new free trade agreement between the UK and Norway, Iceland and Liechtenstein. The deal will boost critical sectors like digital, and professional business services, slash tariffs and...
FCA fines LBGI £90m for misleading renewals communications
The FCA has fined LBGI (Lloyds Bank General Insurance Limited, St Andrew’s Insurance Plc, Lloyds Bank Insurance Services Limited and Halifax General Insurance Services Limited) £90,688,400 for failing to ensure that...
FCA publishes agreements with overseas regulators
The FCA has published a new webpage which sets out the multilateral and bilateral Memoranda of Understanding and other agreements it has signed with overseas regulators. The published list is not exhaustive and some...
FCA consults on updates to guidance on the review of Part VII transfers
The FCA is consulting on proposed updates to its Finalised Guidance, FG18/4: The FCA’s approach to the review of Part VII insurance business transfers, which was initially published in May 2018. The FCA is...
PRA consults on review of Solvency II
The PRA has published a consultation on its proposed changes to Solvency II reporting requirements and expectations. The proposals would result in changes to the following policy material: The onshored version of the...
IRSG report on the UK regulatory regime for overseas firms
The International Regulatory Strategy Group (IRSG) has published a report analysing the UK’s access regimes for overseas firms, looking at the regulatory perimeter, the branching regime, the Overseas Person...
FCA urges consumers to protect pension savings
Following its response to the Work and Pensions Committee’s report on protecting pension savers from pension scams, the FCA is urging consumers to be wary of pension scams and to protect their savings. The FCA...
FSB roadmap for addressing climate-related financial risks
The Financial Stability Board (FSB) has published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their 9-10 July meeting. The letter stresses the need for...
Fund managers fall short on assessing value of funds
The FCA requires authorised fund managers (AFMs) to carry out an Assessment of Value (AoV) at least annually. The AoV should assess whether fund fees are justified by the value provided to fund investors by using a set...
PRA policy statement on IRB approach to UK mortgage risk weights
Following its consultation in October last year, the PRA has published a policy statement on its proposed rules changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. The...
Treasury reports on future framework for regulation of financial services
The Treasury Committee has published its report on the future framework for regulation of financial services. The report considers the future of financial services following the end of the Brexit transition period and...
FCA confirms new rules on regulation of funeral plans
The FCA has confirmed the rules funeral plan providers will have to follow when they come under regulation from 29 July 2022. The rules (currently still in draft form) mean: funeral instalment plan products will always...
PRA consults on designating investment firms
The PRA is proposing minor changes to its policy on designating investment firms. This includes a proposal to increase the base capital resources requirement for PRA-designated investment firms, thereby aligning it with...
EBA publishes standards for supervision of investment firms
The EBA has published final draft regulatory technical standards (RTS) on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms. The draft RTS provide...
FCA to make rules on pension schemes
New regulations made under the Financial Guidance and Claims Act 2018 (Act) mean that certain provisions of the Act relating to requirements to refer individuals to pensions guidance will come into force on 5 July 2021...
Ombudsman News looks at insurance and loan schemes
The latest edition of Ombudsman News features problems and complaints related to wedding insurance and business interruption insurance. The pandemic has driven a sharp increase in wedding and special events insurance...
CMA reports on banks’ compliance with bundling rules
The CMA has published the 2020 annual audit into whether 8 leading UK banks are complying with undertakings they gave not to bundle loans and accounts. During the reporting period covered by the 2020 report the CMA...
FCA publishes first policy statement on IFPR
Following its consultation in December 2020, the FCA has published the first of its policy statements (PS) on the introduction of the UK Investment Firms Prudential Regime (IFPR). In general, the FCA has implemented its...
FCA bans crypto exchange Binance
Binance Markets Limited is not permitted to carry on any regulated activity in the UK without the prior written consent of the FCA. The FCA has also issued a warning about Binance.com, advising consumers to be wary of...
FCA fines CMC for cold calling
The FCA has fined claims management company, Crosfill & Archer Claims Limited, £110,000 for unsolicited telemarketing calls to people who had registered not to receive this type of sales call. In such cases, the...
EBA reports on treatment of third country branches
The EBA has published a report on the treatment of incoming third country branches of credit institutions under the national law of Member States. The report sets out 14 high-level policy recommendations for further...
Treasury publishes outcome of IFPR consultation
HM Treasury has published the outcome of its consultation on the UK’s approach to the implementation of the Investment Firms Prudential Regime (IFPR). The consultation outlined how the government proposed to...
CMA warns banks over transaction history breaches
Banks and buildings societies are required to send customers a history of their current account banking activity (a “transaction history”) within 40 days of a customer or small business closing their current...
EU writes to credit card providers on subscription payments
Recent research has revealed that many EU and UK consumers have ordered cheap products and services online, only to discover that they have been lured into a costly monthly subscription. In most cases the information...
PRA speech: Solvency II and policyholder protection
Anna Sweeney – Executive Director, Insurance at the PRA – delivered a speech on the Solvency II review at the JP Morgan European Insurance Conference. The speech covered the work the PRA will do with HM Treasury to...
Artificial intelligence in financial services
The Alan Turing Institute has published a report which looks at the use of AI and the importance of responsible innovation in the financial services sector. The FCA-commissioned report is split into 4 key sections:...
EBA reports on industry readiness for SCA
The EBA has published a report on data provided by PSPs on their readiness to apply strong customer authentication (SCA) for e-commerce card-based payment transactions. Despite PSPs in some jurisdictions lagging behind...
PSR consults on new 5-year strategy
The Payment Systems Regulator (PSR) has announced plans for a new five-year strategy. The proposals set out an approach that aims to make sure payments and payment systems work well for everyone and that there is fair...
New expert group to help tackle ‘greenwashing’
The Green Technical Advisory Group (GTAG) has been set up to provide independent, non-binding advice to the government on standards for green investment. GTAG will oversee the government’s delivery of a...
EBA consults on the reclassification of investment firms
The Investment Firms Directive ((EU) 2019/2034) (IFD) and the Investment Firms Regulation ((EU) 2019/2033) (IFR) establish a new framework for prudential requirements for investment firms. To aid implementation of the...
Prime Minister speaks with financial services leaders
Boris Johnson hosted a virtual roundtable with financial services leaders alongside the Chancellor Rishi Sunak and the BoE Governor Andrew Bailey. Topics discussed include: boosting home ownership by transforming...
FSB consults on cross-border payments
The FSB is consulting on global targets for addressing the challenges of cross-border payments. The proposed targets set goals for improving cost, speed, transparency and access for cross-border payments in the coming...
PRA publishes policy statements on OCIR policy
In October 2020, BoE and PRA consulted on a package of proposals relating to operational continuity in resolution (OCIR) policy and the May 2020 resolution measures, to ease operational burdens on firms in response to...
EC seeks views on plan to review EU distance marketing rules
The European Commission is seeking feedback on its proposals to review the EU legislation on distance marketing of financial services, following concerns that it is not fit for purpose. The current legislation supports...
Ombudsman News looks at annual complaints data
Following the publication of the FOS complaints data for 2020/21, the latest edition of Ombudsman News looks at key trends FOS has seen in a year impacted by Covid-19. Highlights include: Banking – banks’...
BoE speech: responsible openness in the insurance sector
BoE’s Anna Sweeney (Executive Director, Insurance) delivered a speech at the Association of British Insurers Prudential Regulation Webinar on how the UK will regulate insurance services post-Brexit. The speech...
FCA publishes updated information sheets
The FCA has issued updated consumer credit information sheets in accordance with the CCA 1974. The updates are to provide more targeted and useful help to customers, particularly those with mental wellbeing issues. The...
Report calls on UK to lead on global crypto regulation
TheCityUK’s report calls on UK policymakers to capitalise on the regulatory freedoms afforded by Brexit and to lead the global regulatory approach to cryptoassets. The report sets out five principles for shaping...
FCA responds to Amigo Scheme rejection
The High Court has refused to sanction Amigo’s proposed Scheme of Arrangement. The FCA, having previously objected to the Scheme, has now responded to the ruling. The FCA considers the decision is an important...
UK-US Financial Regulatory Working Group issues joint statement
The Financial Regulatory Working Group has published a joint statement on its meeting on 20 May. The meeting focussed on seven key themes: international and bilateral cooperation; sustainable finance; updates on...
PRA publishes 2021/22 Business Plan
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2021/22. The PRA’s strategy will be delivered through the following strategic goals: Have in place robust prudential standards and...
FCA extends SCA deadline to March 2022
The FCA has extended the deadline for implementing Strong Customer Authentication for e-commerce transactions from 14 September 2021 to 14 March 2022. This further 6-month extension is in response to concerns about...
FCA delivers speech on the rise in online scams
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, spoke at the FCA Investigations & Enforcement Summit on the rise in scams and the threat to a legitimate financial services industry...
FCA launches consultation on CMC phoenixing
The FCA has announced proposals to stop the practice of ‘claims management phoenixing’ by banning claims management companies (CMCs) from managing FSCS claims where they have a relevant connection to the claim. Claims...
FCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...
Banking industry supports access to cash
UK Finance and the UK’s largest retail banks and building societies have announced their commitment to continue to preserve access to cash for consumers and businesses over the long term. The 8 financial...
FCA to issue credit broking permissions survey
FCA is asking regulated firms that hold the credit broking permission to complete a short survey to update the information FCA holds on how they are using this permission. A pilot survey will be sent to 300 firms on 20...
FCA updates supervisory statement on MiFID markets regime
FCA has updated its statement on the operation of the MiFID markets regime post-Brexit to include the latest published non-equity transparency results for the UK. These results cover the 2021 annual bonds threshold...
Pay.UK announces Confirmation of Payee extension
Pay.UK has confirmed that, from July 2021, the reach of the Confirmation of Payee Service (CoP) will be extended with a revised capability and simplified processes. This will allow CoP to be introduced more widely to...
Commons Briefing Paper: Financial Services Act 2021
The House of Commons has published a briefing paper on the newly enacted Financial Services Act. The paper outlines the provisions of the Act and to whom it applies. It also explores some of the key tabled amendments...
FCA publishes latest Regulatory Initiatives Grid
FCA has published the third edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. This edition marks the end of a successful one-year pilot exercise – the FCA has confirmed that...
FOS focuses on economic and domestic abuse complaints
FOS has launched a new webpage on complaints involving economic and domestic abuse. The webpage sets out the types of complaint FOS sees in this area including people saying: I’ve been pressured into guaranteeing...
BoE speech: operational resilience – outcomes in practice
Lyndon Nelson, Deputy CEO & Executive Director, Regulatory Operations and Supervisory Risk Specialists at the BoE, delivered a speech at the UK Finance Operational Resilience Webinar on recent policy on operational...
Law Commission: call for evidence on digital assets
The Law Commission has been asked by the government to make recommendations for reform to ensure that the law is capable of accommodating both cryptoassets and other digital assets in a way which allows the...
CMA publishes policy paper on digital regulatory landscape
The Digital Regulatory Cooperation Forum (DRCF) has submitted its response to the Department of Digital, Culture, Media and Sport on the future of the digital regulatory landscape and how to achieve coherence in...
FCA publishes new buildings insurance webpage
FCA has published a new webpage setting out its expectations of regulated firms when arranging and providing fair value buildings insurance for leasehold apartment buildings. The webpage is not an exhaustive description...
FCA consults on Pension Wise referrals
FCA has proposed new rules to require pension providers to ‘nudge’ consumers to Pension Wise in order to benefit from guidance before they access their pension. Currently, take up of Pension Wise guidance...
Breathing Space scheme takes effect
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 took effect on 4 May 2021. The scheme aims to help millions of people in debt crisis get...
FCA delivers speech on black inclusion
Sheldon Mills – Executive Director, Consumers and Competition at the FCA – gave a speech at the Accelerating Black Inclusion research launch on why black inclusion matters to the FCA. Highlights include: There is a lack...
Business interruption insurance: Covid calculator
FCA has published a calculator to assist policyholders prove the presence of Covid-19 in their policy area on a given date. Policyholders can use the results to help make a claim under their business interruption...
FCA delivers speech on innovation
Nikhil Rathi, CEO at the FCA, spoke at UK FinTech Week on innovation in the service of consumers and the market. Highlights include: success in financial innovation has been enabled by regulatory open-mindedness;...
Financial Services Bill passed by Lords
Following day three of its Report stage, the House of Lords has passed the Financial Services Bill with amendments. The final amendments to be agreed by the Lords include: an amendment that, in certain circumstances...
Treasury announces mini-bond compensation scheme
HM Treasury has set out details of a scheme to compensate bondholders who lost money due to the collapse of London Capital & Finance (LCF). The scheme will provide 80% of LCF bondholders’ initial investment up...
Government to boost UK Fintech and financial services
The Department for International Trade (DIT) has set out a series of measures that will help boost the UK’s Fintech presence in overseas markets. This announcement is in response to the publication of the Kalifa...
Financial Services Bill continues in Lords
The House of Lords has continued its scrutiny of the Financial Services Bill during the report stage. The proposals debated on 14 April include amendments to: remove the prohibition under the Market Abuse Regulation on...
FCA speech: regulating the UK as a global financial centre
Speaking at the City & Financial Global virtual conference, Nausicaa Delfas, the FCA’s Executive Director of International, stressed that the UK’s departure from the EU is an opportunity the FCA intends...
FCA publishes Covid-19 BI claims data
On 22 January 2021, the FCA sent a Dear CEO letter to the insurers affected by the BI insurance test case. The letter set out the FCA’s intention to gather information from all affected insurers regulatory on the...
FS Bill: Further amendments tabled for debate in Lords
Parliament has published a marshalled list of the latest amendments to the Financial Services Bill to be debated in the House of Lords. The proposed amendments include: a requirement for the FCA and PRA to give...
PSR board meets to discuss current and future agenda
The PSR has published the minutes of a board meeting held on 20 January 2021. The board discussed various items on the PSR’s agenda, including: Access to Cash – the PSR is working closely with industry and the FCA...
ESAs publish report on complaints-handling
The Joint Committee of three European Supervisory Authorities (EBA, EIOPA and ESMA) (ESAs) have published a report on the application of their guidelines on complaints-handling. The report assesses how the guidelines...
FCA extends financial crime reporting obligation
Following its consultation in August 2020, the FCA has announced it is increasing the number of firms that need to submit an annual REP-CRIM return from c.2,500 to c.7,000 firms. In summary, the following additional...
UK and US continue to co-ordinate on insurance and reinsurance supervision
On 25 March 2021, UK and US participants held the first Joint Committee meeting under the UK-US Bilateral Agreement on Prudential Measures regarding Insurance and Reinsurance (Agreement). Attendees discussed progress...
CMA writes to Danske Bank on bundling breach
Danske Bank required 305 of its SME customers to open a business current account in order to progress their application for a loan under the Bounce Back Loan Scheme. The CMA has now written to Danske Bank to explain...
FCA takes action against non-financial misconduct
The FCA has published a decision notice in respect of Jon Frensham (formerly known as Jonathan James Hunt), an independent financial adviser and sole director at Frensham Wealth Limited. In March 2017, Mr Frensham was...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
EU Council backs plans for EU-wide payment solutions
In September 2020, the EU Commission launched its strategy for the further development of the retail payments market in the EU. The European Council has now responded by announcing its full support of the overall aims...
Investment Association reports on diversity
The Investment Association has published a report which sets out steps to improve ethnic diversity and inclusion in investment management. The report found that: 75% of firms currently collect, or have begun work...
FCA updates on duty of care
In its Feedback Statement on duty of care and potential alternative approaches, the FCA committed to reviewing how it applies the regulatory framework and how new or revised Principles for Businesses could strengthen...
Treasury seeks clarity on FCA’s regulation of LCF
BoE Governor, Andrew Bailey, gave evidence to the Treasury Committee last month on the FCA’s regulation of London Capital and Finance (LCF). The Committee Chair, Rt Hon. Mel Stride MP, has now written to Mr Bailey...
Covid-19: FCA updates on support for mortgage customers
The FCA is consulting on proposed updates to its “Mortgages and Coronavirus: Tailored Support Guidance.” The guidance is intended to ensure that mortgage customers whose homes may be repossessed are treated...
Budget 2021: Chancellor outlines BoE remit
Rishi Sunak has written to BoE Governor, Andrew Bailey, outlining the remit and recommendations for the Financial Policy Committee (FPC) for 2021. The FPC should: support the government in maintaining the resilience and...
EU and Japan exchange letters on co-operation
The European Insurance and Occupational Pensions Authority (EIOPA) and Japan’s Financial Services Agency (FSA) have agreed to co-operate on insurance regulation and supervision. The exchange of letters aims to...
PSR consults on delivery of New Payments Architecture
PSR has launched a consultation on the delivery and regulation of the New Payments Architecture (NPA) which is set to replace the UK’s current Faster Payments and Bacs retail interbank payment system. PSR says...
UK applies to join CPTPP
The UK government has submitted a formal request to join one of the world’s largest free-trade areas, the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The move would deepen the UK’s...
EBA begins 2021 stress test
Following the postponement of the 2020 exercise due to the pandemic, this year’s EU-wide stress test will provide valuable input for assessing the resilience of the European banking sector. The results might also...
Regulators consult on FSCS levy
PRA and FCA are consulting on proposals for the FSCS Management Expenses Levy Limit for 2021/22. The consultation is supported by the FSCS’s proposed Plan and Budget for 2021/22. The proposed limit for 2021/22 is...
PRA consults on supervision of international banks
The PRA is consulting on proposals regarding its approach to supervising the UK activities of PRA-authorised banks and designated investment firms that are headquartered outside of the UK. This includes those firms...
Pay.UK reports on impact of Covid-19 on bank account switching
Pay.UK has published its report on how the Covid-19 pandemic has affected switching attitudes and behaviours in the UK. The report explains that research commissioned by the Current Account Switch Service (CASS)...
Insolvency Service Guidance: Breathing Space
The Insolvency Service has published its guidance on the Debt Respite Scheme (Breathing Space). The guidance is intended to support creditors in understanding the Breathing Space Regulations and sets out information on:...
FCA makes new executive appointments
Following the creation of the new post of Executive Director, Consumers and Competition, the FCA has announced that Sheldon Mills has been appointed to the role. Siobhán Sheridan has been appointed as Chief People...
PRA issues statement on capital distributions
In July, the PRA announced its intention to undertake an assessment of large UK banks’ distribution plans for 2020. The PRA has now completed that assessment and, noting that economic uncertainty as a result of...
EBA reports on Basel III implementation
The EBA has published a report on the impact of implementing the final Basel III reforms in the EU. The results do not reflect the economic impact of the Covid-19 pandemic as the reference date for this assessment is...