The Investment Association (IA) has written to FTSE 2350 companies’ Remuneration Committee Chairs. IA outlines how investors will engage with investee companies on executive pay in the 2024 AGM season. Investors...
Author - Vida Fatemi
Vida Fatemi
BoE publishes policy statement on CCP discretionary payments
Following its consultation, BoE has published a policy statement (SoP) setting out its final approach to the power to temporarily restrict or prohibit discretionary payments by CCPs to ensure continuity of critical...
FCA Panels respond on FOS 2024 Plans and Budget
FCA Practitioner Panel and FCA Smaller Business Practitioner Panel have responded to FOS 2024/25 Plans and Budget and the consultation on charging professional representatives. The Practitioner Panel: supports the £100...
Firms pause sales of GAP insurance
At FCA’s request, multiple insurance firms have agreed to pause sales of GAP insurance. These firms account for 80% of the GAP market. FCA is concerned that GAP insurance is failing to provide fair value to...
BoE discussion papers on RTGS
BoE has released two discussion papers on RTGS (Real-Time Gross Settlement) service operating hours and access policies. BoE aims for these papers to be the basis for further research and dialogue with the private...
FCA Practitioner Panel responds to access to cash proposals
The Practitioner Panel has responded to the FCA’s access to cash proposals (CP23/29). The Practitioner Panel believes that: the approach is responsive to changes in need which may derive not only from shifts in...
UK Finance responds on stablecoins
UK Finance has responded to the FCA and BoE discussion papers on regulating stablecoins. It is generally supportive of the broad proposal to build upon the existing regulatory/legislative regime for stablecoins used for...
FCA speech: the UK listing regime
Clare Cole, Director of Market Oversight at FCA, has delivered a speech about developments since the UK Listing Review and the next steps for reform. Highlights include: In December, FCA set out detailed proposals for...
Government publishes response to AI Regulation White Paper
The Government has published the response to its AI Regulation White Paper consultation. Whilst the Government acknowledges that legislative action will eventually be needed to tackle the challenges of AI, the response...
FCA and Practitioner Panel launch joint survey for 2024
FCA and Practitioner Panel will send a survey to a sample of regulated firms to get feedback on how well FCA is regulating the industry. The survey will go to all fixed firms and to an increased sample of 25,000...
ABI says motor premiums still rising
ABI’s Motor Insurance Tracker shows the average price paid for motor insurance has continued to rise. The cost to insurers to pay claims is main cause of these rises. The Tracker shows that between 1 October and...
PRA consults on approach to rule permissions
PRA has proposed a new Statement of Policy setting out its approach to the granting of rule permissions under s.138BA of FSMA – a new power for PRA to enable firms not to apply certain rules, or to apply them in a...
FCA reports on “flying” and “printing”
FCA has reported on the practices of ‘flying’ and ‘printing’ in Market Watch 76. It has described these practices (which it originally raised in Market Watch 57) as: ‘Flying’ is...
BoE updates enforcement approach
BoE has published its final policy and feedback to its consultation on its approach to enforcement. We covered the consultation here. The changes (including changes from the original consultation that BoE has made in...
BoE speaks on core payments infrastructure and policies
Victoria Cleland, Executive Director for banking, payments and innovation, spoke about how BoE is enhancing its core payments infrastructure and policies using technological innovation. The focus was on wholesale...
PRA reviews ring-fencing rules
PRA has published a report setting out conclusions to its review of its ring-fencing rules. PRA looked at the intents of the ring-fencing regime, its statutory objectives, the legal ring-fencing requirements and...
BoE responds on PRC remit
BoE Governor Andrew Bailey has written to the Chancellor, updating last year’s response to the letter setting out the Chancellor’s recommendations to the Prudential Regulation Committee (PRC). The letter...
FCA speaks on consumer tech
Chief Executive of FCA, Nikhil Rathi, has spoken on how consumer-facing technology helps to keep consumer markets “honest”. The key highlights from his speech were: FCA must use and adapt existing regulatory...
FCA Practitioner Panel responds to D&I proposals
The FCA Practitioner Panel has responded to CP23/20, the consultation paper on diversity and inclusion in the financial sector. Key points in the response include: Mandating that firms collect data across all...
FCA establishes industry-led working group for financial advisers
As part of a package of measures to support the UK’s position as a world-leading, competitive centre for asset management and sustainable investment, the new industry-led working group for financial advisers is...
FCA sets expectations on crowdfunders
In two portfolio letters, FCA has set out its expectations for Loan-based Peer-to-Peer (P2P) Lending platforms and Investment-based crowdfunding platforms. It supervises both types of platform in the Consumer...
PRA writes to international banks on 2024 priorities
In a ‘Dear CEO’ letter, PRA has updated international banks and designated investment firms on its 2024 priorities. As with the other letters published today, the general themes will complement firm-specific...
PRA consults on FSCS MELL 2024/25
PRA is consulting on the FSCS MELL for 2024/25. Under FSMA, PRA and FCA must set a limit for the total management expenses that the FSCS can levy on financial services firms. The MELL is the maximum amount that the FSCS...
EIOPA consults on greenwashing limitation guidance
EIOPA has published a consultation on its draft Opinion on sustainability claims and greenwashing. The aim of the Opinion is to achieve more effective and enhanced supervision of sustainability claims across Europe and...
FCA publishes mortgage lending statistics for Q3 2023
FCA has published a webpage on mortgage lending statistics for Q3 2023. The data was collected by FCA from around 340 regulated mortgage lenders and administrators who are required to submit the Mortgage Lending and...
Basel Committee consults on targeted adjustments to standard on IRRBB
The Basel Committee has published a consultation on targeted adjustments to its 2016 standard on interest rate risk in the banking book (IRRBB). Under the IRRBB standard, banks are required to calculate measures of...
FCA demands action on retained interest on customers’ cash balances
FCA has written a ‘Dear CEO’ letter to investment platforms and SIPP operators setting out its concerns on the way they deal with any interest earned on customers’ cash balances. After surveying 42...
PRA publishes near-final policy statement on Basel 3.1 standards implementation
The PRA has published a near-final policy statement which provides feedback to responses to various chapters in CP 16/22. In CP 16/22, PRA set out proposals to implement the parts of the Basel 3.1 standards that remain...
FCA publishes regulatory initiatives grid
The FCA has published the Financial Services and Regulatory Initiatives Forum’s latest biannual Regulatory Initiatives Grid. This will allow the financial services industry and other stakeholders to understand and...
FCA fines three money transfer firms for breaking competition law
The FCA has fined three money transfer firms for breaching competition law. Dollar East (International Travel & Money Transfer) Ltd, Hafiz Bros Travel & Money Transfer Limited, and LCC Trans-Sending Limited...
FCA speaks on importance of culture and conduct
Emily Shepperd, FCA COO and Executive Director of Authorisations stressed that firms must consider how their own cultures can drive better outcomes. Key highlights of the speech include: How the Consumer Duty has raised...
BoE publishes fees regime for financial market infrastructure supervision
BoE has responded to consultation on Fees regime for financial market infrastructure supervision 2023/24, fee rates for the 2023/24 fee year and statement of policy. In its original consultation, the Bank put forward...
TWG publishes report on fund tokenisation
The Technology Working Group (TWG), which is the City Minister’s forum for examining the impact of technology on the UK’s investment and asset management sectors, has published its first report. TWG worked...
PRA and FCA consult on reformatted control change guidance
PRA has published a consultation paper containing proposals on how it and FCA plan to replace the EU guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector...
UK and Japan discuss cooperation
The 2nd Financial Regulatory Forum (FRF) and the 5th Financial Dialogue (FD) between Japan and the UK was held on 27 November 2023 and a joint statement summarised the key discussion points. Overall, both countries hope...
FCA publishes final report on IFPR implementation observations
FCA has published the final report on its review into firms’ progress in implementing the ICARA process and reporting requirements under the IFPR. The IFPR was introduced to streamline and simplify the prudential...
FSB publishes 2023 G-SIB list
FSB has published the 2023 list of globally systemically important banks (G-SIBs) using end-2022 data and applying the assessment methodology designed by the Basel Committee on Banking Supervision (BCBS). Compared to...
Basel Committee publishes discussion paper on digital fraud
The Basel Committee on Banking Supervision has issued a discussion paper on digital fraud and banking. The paper is a high-level assessment of the supervisory and financial stability implications of digital fraud for...
PRA writes to CFOs on Deposit Aggregators
PRA has written a letter to CFOs setting out the steps firms should consider taking to mitigate risks relating to deposit aggregators that firms may have relationships with. This follows a ‘Dear CEO’ letter...
PRA makes statement on recalculation of TMTP
The Solvency II Regulations 2015 allow firms to apply to the PRA for permission to undertake a recalculation of the deduction applied pursuant to the transitional measure on technical provisions (TMTP) every 24 months...
PRA writes to deposit takers on innovation and stablecoins
PRA has written a Dear CEO letter to provide clarity on the ways in which it expects deposit-takers to address risks that arise from issuing multiple forms of digital money, while welcoming the benefits that could come...
FCA and BoE publish proposals for regulating stablecoins
FCA and BoE have requested feedback on their proposals for regulating stablecoins in the context of the regulators looking to harness the potential benefits stablecoin could provide to UK consumers and retailers...
IAIS publishes report on NatCat protection gaps
IAIS has published a report on the role of insurance supervisors in addressing natural catastrophe (NatCat) protection gaps. NatCat events have become more frequent and intense due to climate change, which IAIS says may...
Government responds on failure of Digital Settlement Asset firms
Following its consultation on the failure of Digital Settlement Asset firms, the government has now published the consultation outcomes. In the consultation, the government sought responses to its approach on managing...
Government confirms plans for fiat-backed stablecoins
The government has provided an update on its plans for bringing fiat-backed stablecoins into the UK’s regulatory perimeter for financial services. This follows the January 2021 consultation on the UK regulatory...
FCA launches new crypto registration webpage
FCA has launched a new webpage for cryptoasset businesses applying for registration under the MLRs. The new webpage sets out FAQs on how to prepare for registration, associated individuals and what happens once an...
FCA publishes sample business plan
FCA has published guidance on a sample business plan for firms putting together an RBP. It says that following it should help firms to ensure they are ready, willing and organised to be authorised by FCA. The guidance...
FOS releases half-yearly complaints data
FOS has published data showing the number and outcome of the complaints it has handled about financial businesses for the period of January to June 2023. The key take-aways are: FOS received a total of 93,114...
EU-UK Financial Regulatory Forum release joint statement
The first meeting of the EU-UK Forum took place on 19 October. It was attended by the UK and EU regulators and the ESAs. The shared objectives of the parties included the preservation of financial stability, market...
FCA confirms no changes needed on SME access to FOS
On 1 April 2019, rules extending access to the FOS for more SMEs came into force. The rules allowed SMEs to access the FOS if they have a turnover of less than £6.5 million and fewer than 50 employees, or a balance...
FCA speaks on objectives
Nikhil Rathi has spoken about how to achieve the objective of international competitiveness and growth over the medium to long term. Rathi highlighted 5 key ingredients for achieving this: An operationally effective...
Basel Committee consults on crypto exposure disclosure
In December 2022, Basel Committee published its final prudential standard on the treatment of cryptoasset exposures. Following on from this, a consultation on the disclosure of banks’ cryptoasset exposures has...
PSR publishes revised penalty statement
PSR has published its revised penalty statement. The statement aims to clarify the penalties that are imposed and what to expect if PSR identifies non-compliance. PSR places ever-increasing requirements on an...
FCA publishes quarterly whistleblowing data
FCA has published the latest data on new whistleblowing reports received between April and June 2023. In this period: There were 300 new whistleblowing reports which is an increase compared to the same period in 2022...
TPT Disclosure Framework published
The TPT Disclosure Framework, published by the Transition Plan Taskforce, contains guidance and recommendations to help companies make disclosures that are high quality, consistent and comparable. The aim of this is to...
FCA issues first alerts under new crypto marketing regime
FCA has issued 146 alerts about financial promotions in the first 24 hours of the new crypto marketing regime. These alerts contain the names of companies which may be illegally communicating cryptoasset promotions. The...
PRA consults on insurance branch supervision
PRA has published a consultation paper, setting out its proposals to consolidate and formalise existing PRA policy on overseas insurers that write business in the UK through the establishment of a third-country branch...
Debt packager referral fee ban implementation period ends
In June 2023, FCA published its policy statement and final rules on debt packager referral fee bans, which took effect from 2 June 2023 for new debt packager firms and their newly appointed ARs, but which existing debt...
UK-US Financial Regulatory Working Group meets
US Treasury and HM Treasury published a joint statement from the eighth Financial Regulatory Working Group meeting held on 6 September. Topics covered in the meeting included broad discussions on: Economic and financial...
PRA reviews Written Auditor Reporting policy
PRA has evaluated the Written Auditor Reporting policy to assess how it is delivering against its original objectives and how to refine its approach to the policy to make it a more efficient and effective supervisory...
FCA publishes platform portfolio letter
FCA has written a letter to firms that it identifies as providing a platform service, setting out the key harms in the sector, expectations of these firms and a summary of the work FCA intends to do. This follows the...
PRA consults on reforms to Matching Adjustment
PRA is consulting on reforms to the Matching Adjustment (MA) as part of a package of measures on Solvency II. The proposals covers reforms to MA regulation relating to greater investment flexibility and revised...
FCA portfolio letter to Corporate Finance firms
FCA has written to all corporate finance firms (“CFFs”) outlining the harms to consumers and markets that it believes are most likely to arise from the business models of the CFFs and the strategy to address...
PRA proposes RFB policy updates
PRA has proposed rule and policy updates in respect of the establishment and maintenance of third-country branches and subsidiaries within RFB sub-consolidation groups. HM Treasury is consulting on legislative changes...
Treasury publishes ring fencing response
In response to the recommendation from a panel of independent experts led by Sir Keith Skeoch on the longer-term future of the ring-fencing regime, the government issued in March 2023 a Call for Evidence on aligning the...
FCA publishes AR supervision data
Following the introduction of rules and guidance on how to improve how principal firms oversee their ARs in December 2022, principals must now give the FCA more information about their ARs. This information is used by...
UK Finance respond to ban on cold calling
UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...
FCA publishes review of high-risk investment compliance
FCA has released its findings of its review on how firms offering restricted mass markets investments (RMMIs) have complied with new rules on the customer journey. This follows the 2022 policy statement on strengthening...
Regulators consult on boosting D&I in financial services
In consultation papers published by the FCA and PRA today, proposals have been set out to boost diversity and inclusion in financial services firms. The aim of these proposals is to support healthy work cultures, reduce...
FCA calls on insurers to take action as it publishes latest fair value data
In 2021, FCA introduced rules requiring insurers to ensure their products provide fair value, which included submitting regular Value Measures Data to FCA. The aim of publishing this data was to create incentives for...