Harry WellsThe FCA has published its financial promotions data for Q1 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 2,211...
Category - Topics
Lucy HadrillTreasury publishes basic bank account data
Treasury has published its annual data as received from the nine largest personal current account providers (PCAs) in the UK. Under the Payment Account Regulations 2015, Treasury has designated the PCAs to offer basic...
European Parliament adopts new AML package
The European Parliament has adopted the new AML package, which, among other things, will: limit cash payments to €10,000; create a new EU-wide agency to directly supervise the highest risk businesses; allow those with a...
Emma RadmoreFCA updates complaints data
The FCA has published updated complaints data based on returns from then nearly 300 firms reporting at least 500 complaints within 6 months or 1000 within a year. Key findings from the 2023 H2 data include: Complaints...
ABI acts on motor premium finance
The ABI has announced a new set of Premium Finance Principles, designed to try better to manage the charges on consumers who pay monthly for motor insurance. The ABI says it considered, and discussed with the FCA, a...
FCA consults on Financial Crime Guide updates
The FCA is consulting on several proposed changes to its Financial Crime Guide. It is suggesting change to: the guide generally to add references to crypto assets and the Consumer Duty; the sanctions part to reflect...
PRA writes to CROs on private equity related activities
Following a PRA review of private equity financing businesses, it has now written to bank Chief Risk Officers noting the key conclusions. It specifically notes a recent trend that increases exposure to various non...
FCA notes good and poor practice for credit broking ARs
The FCA has carried out a review of the key harms and drivers of harm caused by ARs and IARs in the credit broking market. Key areas where some principals could improve are; making sure they undertake criminal or credit...
PSR consults on supervisory approach
The PSR is seeking views on its approach to supervision. Last year, it set up a Supervision and Compliance Monitoring division, designed to deter and challenge any poor practices within firms. It plans for the division...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
Lords asks for FCA justification of enforcement proposals
The House of Lords Financial Services Regulation Committee has written to the FCA making several criticisms of its proposals to name firms under investigation. It is particularly critical that the paper explicitly rules...
UK Finance to support VRPs for commercial applications
UK Finance has published a report which sets out recommendations for addressing the key issues and processes needed to develop VRPs for commercial applications and containing a set of model contractual terms.
PSD3 nears final agreement
The European Parliament has voted through proposed changes to the Payment Services Regulation and Directive by a large majority. Key changes include: free verification of identifiers and requirements on PSPs to ensure...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
Debanking complaints spike
The Treasury Committee has published new data that shows a rise of 69% in complaints to the FOS about debanking since 2020/21. In the last year, there were nearly 4,000 complaints. There has also been an increase in the...
FCA updates on BSPS complaint action
The FCA has provided an update on the complaints it has been receiving about what it is doing, or not doing, in relation to the fallout from BSPS transfer advice. Although it has implemented a redress scheme and taken...
BoE speaks on role of private equity
Nathanael Benjamin of the BoE has spoken on the role of the private equity market, focusing on its key role in financing companies but looking also about safe and sustainable growth. Key points from his speech included:...
PRA consults on final Solvency II review steps
The PRA has published a consultation on the final steps it needs to take to implement the conclusions of the Solvency II review and finalise all the PRA materials needed to replace the Solvency II assimilated laws that...
JROC seeks input on design of future entity for open banking
Further to its April 2023 recommendations for the next phase of open banking in the UK, the Joint Regulatory Oversight Committee has published its proposals for the design of the future entity for open banking, which...
BoE outlines CCP stress test for 2024
BoE has set out the key elements of its 2024 supervisory stress test for UK central counterparties. The clearing services of all three UK authorised CCPs (ICE Clear Europe Ltd, LCH Ltd and LME Clear Ltd) will be in...
APPG publishes Economic Crime Manifesto II
The All Party Parliamentary Groups for Anti-Corruption and Responsible Tax and for Fair Business Banking have published a manifesto looking at the scale of corruption and calling for significant greater transparency to...
PSR consults on APP reimbursement compliance and monitoring
The PSR has published a consultation paper seeking views on proposed reporting requirements for PSPs that are in scope of the new reimbursement requirement, so that the PSPs will report data to allow the regulator...
FCA speaks on women in financial services
Sheree Howard (Executive Director of Risk and Compliance Oversight at the FCA) has delivered a speech at the PIMFA Women’s symposium conference on investing in women in financial services, both as employees and...
BBRS publishes quarterly data report
The BBRS has published its quarterly case resolution data as of 31 March 2024. Key highlights include: From a total of 1,037 case registrations, there were 1,006 resolved case outcomes and 31 remain open. Of the...
FCA highlights common failings in asset management applications
The FCA has provided a list of common errors asset managers are making in applications for authorisation. For context, in the year to 1 April 2024, 18% of applications were withdrawn as a result of the FCA’s...
BoE updates on ISO 20022
Following the successful migration of the CHAPS system to the ISO 20022 payments messaging standard in June 2023, BoE has published a policy statement providing further clarity on the mandatory requirements for ISO...
FCA updates on motor finance complaints
Following the announcement of its review into motor finance complaints, the FCA has published a statement on progress made to date. It says that firms have engaged with the FCA constructively but many are struggling to...
FCA publishes PEMC travel insurance signposting review
The FCA has published the findings of its review into how well consumers with medical conditions are being made aware of travel insurance available to them. The FCA introduced rules in 2020 requiring firms to signpost...
FCA publishes Link findings
The FCA has published its findings against Link Fund Solutions, explaining its conclusion that the firm failed to manager the liquidity of the Woodford Equity Income Fund from 31 July 2018 to 3 June 2019 and therefore...
Innovate Finance and City of London publish report on compliance technology
Innovate Finance and the City of London Corporation have published a report calling for the FCA and PRA to introduce a test to help assess they ways in which technology can facilitate regulatory compliance. It says it...
FCA consults on new way to pay for research
The FCA is consulting on a range of ways in which asset managers might choose to pay for investment research. It says that, while firms are generally getting the research they want under the current rule format, the...
FCA finalises guidance for borrowers in financial difficulty
The FCA has finalised its rules and guidance to strengthen protection for consumer credit and mortgage borrowers in financial difficulty. It has decided to bring parts of its current guidance in FG23/2 for mortgage...
Market Watch focuses on instrument reference data
The latest edition of Market Watch looks at completeness and accuracy of instrument reference data. It looks at the most common rejection messages and the number of rejections, and suggests best practice for submitting...
PSR publishes Annual Plan
The PSR has published its Annual Plan and Budget for 2024/25, highlighting the year as a key period for consolidating the delivery of its work to improve payment services for businesses and consumers in the UK. One...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
NCA releases latest SARs report
The latest NCA SARs annual statistical report shows a decrease in the total number of SARs compared to the previous year, which is mainly because of fewer SARs being made by high street banks, although banks still...
FOS publishes plans and budget for next phase
The FOS has published its finalised Plans and Budget for the next phase of its transformation. It expects to receive a greater number of complaints in the coming year, and anticipates 210,000 complaints in its caseload...
FCA gets consent to recover investor funds from Argento Wealth
The High Court has approved a consent order allowing the FCA to proceed with its application for £1.6m investor funds to be returned by Argento Wealth Limited and its sole director, in relation to 2 allegedly unlawful...
FCA and BoE consult on Digital Securities Sandbox
The BoE and FCA are consulting on the Digital Securities Sandbox which will allow participants to use developing technologies to carry out some of the traditional activities of CSDs and trading venues. Instruments such...
Fair Business Banking group publishes call to action
The All Party Parliamentary Group on Fair Business Banking has called for input into its SME manifesto. The document, which wants to address the challenges that face SMEs when dealing with financial institutions, is...
FCA gives guidance on consumer credit income reporting
The FCA has updated its guidance for consumer credit firms to reflect changes to the way firms now need to calculate their proxy measure of annual income. When completing their reports, credit brokers need to include...
ABI publishes guide to supporting autistic customers
The ABI has published a good practice guide to help the insurance and long-term savings industry support autistic customers. It had found several barriers that autistic people face when trying to access the products...
FCA makes minor rule changes
The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...
BoE consults on enforcement changes
The BoE, including the PRA, is consulting on proposed changes to its SOPs and procedures for enforcement, following the additional responsibilities FSMA 2023 has placed on it. The changes relate to enforcement policy...
Wolfsberg Group publishes financial crime audit principles
The Wolfsberg Group has published a set of principles for auditing a financial crime risk management programme under its three factors of: complying with financial crime laws and regulations establishing a reasonable...
HNWI/SCSI Fin Prom limits change again
We’ve written an article explaining the effects of the Budget reversal of the January increase on limits that high net worth and self-certified sophisticated investors need to meet to make use of financial...
PSR calls for evidence on LINK requirements
The PSR has published a call for views on its second annual review of Specific Direction 12, which is aimed at ensuring that LINK keeps a good geographical spread of free-to-use cash machines, and has appropriate and...
FCA publishes findings of insurers’ valuation of vehicles review
The FCA has completed its multi-firm review of firms’ claims handling processes for valuing vehicles which have been stolen or written off (‘total loss’ claims). The findings are split into six key...
FCA consults further on pensions dashboard services
The FCA has published a further consultation ahead of the introduction of operating a pensions dashboard service as a new regulated activity. It has published new guidance that will be in PERG for relevant firms and is...
NCA updates SAR portal
The NCA has updated its website in respect of: overview of the SAR Portal: this includes an overview of the whole process and of the type of questions that the system will ask when a SAR is being submitted; registering...
Fund tokenisation report looks at further token use in MMFs
The second report of the Technology Working Group on fund tokenisation looks at the potential use of tokens as collateral for money market funds, and how tokenised funds can plan a key role in an “on chain”...
FCA updates social media guidance
The FCA has published its updated guidance on social media advertising. The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...
FCA updates on AIFM hosting
The FCA has published information for AIFMs who make use of the hosting model. It reminds firms of its 2023 research which showed potential harm in the model, in terms of: lack of oversight of seconded staff –...
FCA updates on PEMC review
The FCA has announced that it has largely completed its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance. It intends to publish the...
FCA charges four individuals over suspected water scam
The FCA has charged four individuals with conspiracy to commit fraud by false representation. Two of the individuals have also been charged with money laundering. The FCA alleges that the individuals ran an unauthorised...
FCA publishes Mortgage Charter uptake data
In June 2023, the FCA introduced new rules to support the Government’s Mortgage Charter’s commitments, including providing for firms to allow customers to make reduced capital payments for up to 6 months, or...
Government sets out third phase of Smarter Regulatory Framework
Following its Smarter Regulatory Framework (SRF) delivery plan, Treasury has published a follow-up paper which sets out the progress made so far and the government’s approach to the next phase of the SRF programme...
PSR speaks on the future
Chris Hemsley, speaking at the Pay360 conference, looked at how far payments innovation has come this century, and spoke of some challenges for the future. He focused on: the important role of a Payment System Operator...
Wolfsberg group updates CTF statement
The Wolfsberg Group has updated its 2002 statement on the Suppression of Financing of Terrorism. The updated statement reflects changes in laws and also public-private cooperation in the fight against terrorist...
FCA writes to CEOs on consumer lending strategy
The FCA has published a “Dear CEO” letter on its strategy for Consumer Lending. The letter focuses on three of the lending portfolios within the market – high-cost lending, mainstream consumer credit...
FCA calls for improvement in Retirement Income Advice
The FCA has published a Thematic Review and written to CEOs of financial advisers, asking them to assess the compliance of their retirement income advice, and take steps to address any shortcomings they find. It...
FCA extends enforcement CP response period
The FCA has extended the consultation period on its consultation on publicising enforcement investigations. The consultation was due to close on 16 April, but will now remain open until 30 April.
FCA publishes Business Plan 2024/2025
The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...
Court decides on investment property loans
The Court of Appeal has found in favour of an unregulated lender, confirming that agreements it entered into with individuals were investment property loans which were exempt from the RAO definition of “regulated...
FCA decides to fine and ban for sham trading
The FCA has published a Decision Notice setting out its decision to fine Nailesh Teraiya £5.95m and ban him, in its latest enforcement case involving “cum ex” payments. Mr Teraiya was formerly the sole...
FCA confirms FIN074 return requirement
The FCA has confirmed that it sends firms the FIN074 return so that it can work out whether the firm needs to pay the Economic Crime Levy – not all firms that receive the return will need to do so. The FCA also...
FCA to review firms’ treatment of vulnerable customers
The FCA has announced a review into how firms are treating and responding to the needs of vulnerable customers. It will look at: firms’ understanding of consumer needs; skills and capability of staff; product and...
FCA Practitioner Panel responds to PIFs capital deduction for redress proposals
The FCA’s Practitioner Panel has responded to the consultation on proposals to require personal investment firms (PIFs) to set aside capital for potential redress liabilities. The Panel generally supports the...
FCA Practitioner Panel responds to CTP proposals
The FCA Practitioner Panel has responded to the FCA’s proposals to increase the resilience of critical third parties (CTPs) providing key services to the UK financial services sector. Key points in the...
FCA speech: investing in outcomes
Nikhil Rathi, Chief Executive of the FCA, has delivered a speech on the FCA’s broad approach to topics in which investors have recently been expressing significant interest. The speech highlighted the following as...
Treasury publishes payment contract termination changes
Treasury has published the near final version of the amendments to the PSRs that will require payment services providers to give customers at least 90 days’ notice of termination of framework payment services...
AI in financial services: gathering speed
Read our article on the latest reports on use of AI in financial services and the potential benefits of generative AI.
SME Manifesto redoubles efforts in call to action
The All-Party Parliamentary Group on Fair Business Banking has republished its call for action to help it build its SME Manifesto, which wants to target access to finance and dispute resolution. So far, it has started...
FCA speaks on the future of pensions
Nikil Rathi has spoken on pensions freedoms. He noted that, with the increasing flexibility consumers have on accessing their pensions savings, it is ever more important for the individual to be sure they are saving...
FOS limit to increase to £430,000
The FOS maximum compensation limit will increase from 1 April 2024. It will be: £430,000 for claims referred to FOS on or after 1 April 2024 about acts or omissions by firms on or after 1 April 2019; and £195,000 for...
Treasury releases draft laws on payment delays
The Treasury has published the Payment Services (Amendment) Regulations 2024, which will allow payment services providers to delay payment processing where there are reasonable grounds to suspect fraud or dishonesty...
FCA updates financial crime pages
The FCA has updated the page on its website that lists all its financial crime resources to include its most recent publications.
FCA publishes mortgage lending statistics for Q4 2023
The FCA has published mortgage lending statistics for Q4 2023. The data comes from the 340 regulated mortgage lenders and administrators who are required to submit the Mortgage Lending and Administration Return each...
PRA publishes solvent exit planning statement
PRA has published Policy Statement PS5/24 – Solvent exit planning for non-systemic banks and building societies providing feedback to consultation paper (CP) 10/23 – Solvent exit planning for non-systemic banks...
Duncan ScottLloyd’s report: generative AI and cyber risk
Lloyd’s has published a report on how the growth of generative AI could impact upon cyber risk. Whilst the report recognises the benefits generative AI can bring, it highlights that generative AI tools pose an...
FATF updates beneficial ownership guidance
FATF has updated its risk based guidance for its Recommendation 25 on Beneficial Ownership and transparency of legal arrangements. The guidance focuses on understanding trusts, and the risks associated with them. It...
Treasury consults on MLR improvements
The Treasury is consulting on how to make the Money Laundering Regulations more effective. The paper follows previous consultations on changes to the MLRs and picks up on comments about how many of the provisions of the...
FCA fines and bans over pension transfer advice and oversight
It’s been a while since the last published notice, but FCA continues to take action against firms and individuals relating to pension transfer advice. It has fined Inspirational Financial Management (in...
FCA updates whistleblowing data
FCA has released data showing the number of new whistleblowing reports received, mainly through its online reporting function, in Q3 and Q4 of 2023. Between July and September 2023: There were 280 new whistleblowing...
Treasury Committee publishes Sexism in the City findings
Following its Sexism in the City inquiry into the barriers faced by women in financial services, the Treasury Committee has published a report of its findings. Key findings include: there have been some incremental...
Treasury announces National Payments Vision
Following the publication of the Future of Payments Review, Treasury has accepted the recommendation to publish a National Payments Vision. The Vision will constitute the government’s full response to the Future...
BoE speech: data and analytics strategy refresh
James Benford, BoE Executive Director for Data and Analytics Transformation and Chief Data Officer, has delivered a speech on BoE’s new Bank-wide approach to data and analytics strategy at Tech Show London. The...
FCA updates on skilled persons reports
The latest statistics for skilled persons reports FCA commissioned in Q3 2023/24 show: 24 reports in total 7 related to the retail banking and payments sector, 6 to retail investments, 5 to wholesale markets and 4 to...
Treasury reverses FPO and FCA makes clear statement
FCA has confirmed that it and the industry implemented the changes to the HNWI exemption in the FPO on 31 January, as required by a change in the law which in turn followed detailed consultation and recommendations from...
Budget reverses HNWI update and ups Economic Crime Levy
Among the announcements relevant to regulated financial services in Jeremy Hunt’s budget are: a bizarre U-turn to reinstate the previous eligibility criteria for high net worth and sophisticated investors, when...
FCA updates on Woodford
FCA has updated its website with further updates on the Woodford Equity Income Fund. It has confirmed the redress scheme became fully operational on 5 March and that payments are expected around Easter.
FCA commits to personal guarantee investigation
FCA has committed to conducting an investigation into the use of personal guarantees by lenders as security for loans made to small business customers. FCA is acting in response to a super complaint brought by the...
Chancellor announces reforms to pension fund disclosures
The Chancellor has announced reforms to pension funds disclosures in an attempt to increase investment in UK businesses and improve performance for savers. The reforms proposed include that: DC pension funds will be...
FCA Panel supports PIF capital deduction for redress proposals
The FCA’s Smaller Business Practitioner Panel has responded to the consultation on proposals to require personal investment firms (PIFs) to set aside capital for potential redress liabilities. The Panel generally...
Government reviews SAMLA
The FCDO has carried out a preliminary post-legislative assessment of SAMLA 2018. The analysis looks at the background to the legislation and sets out the powers it contains. It is divided into sections, focusing mainly...
FCA warns Annex I firms on AML issues
FCA has written to CEOs of the 1,000 Annex I firms it supervises (firms which do not need FSMA authorisation but which carry on activities subject to the MLRs for which FCA is the appropriate supervisor). It has carried...
FCA issues interim update to Asset Management & Alternatives Supervisory Strategy
FCA has published a Dear CEO letter updating its portfolio letters issued in August 2022 and February 2023 setting out its Asset Management & Alternatives Supervisory Strategy. The letter sets out certain areas of...
AIF Bill has second reading
The Alternative Investment Fund Designation Bill has had its second reading in the House of Lords and has now moved to Committee stage. The main purpose of the Bill is to remove listed investment companies from the...
FCA pauses civil action to pursue criminal investigation
FCA has secured a 12-month pause in its civil case over regulatory breaches against John Dance and WealthTek LLP to allow it to focus its efforts on its investigation into possible criminal offences of fraud and money...
FCA consults on changes to UK EMIR reporting
The FCA is consulting on draft guidance for reporting under the revised UK EMIR Article 9 reporting requirements. This follows the FCA/BoE joint policy statement which confirmed changes to the derivative reporting...
FOS data shows credit card complaints on the rise
The latest FOS products complaints data (covering October – December 2023) shows that complaints about credit cards reached the highest level ever recorded in a 3-month period. 55% of these complaints were about...
ECJ rules on whether funds retained in a payment account constitute e-money
The European Court of Justice has ruled that for the purposes of the Payments Services Directives and the E-money Directive the activity of a payment institution which consists of the receiving of funds from a user of a...
FCA creates new market intelligence pages
FCA has created new pages on its website looking at:
market observations it has received and
STORs it has received
The pages currently contain the figures for 2023.