FIN.

Category - Conduct

BoE looks at AI and financial stability

Jonathan Hall of the FPC has spoken on whether increasing use of AI models could have a negative impact on financial stability. He sees two key risks: that deep trading agents could lead to a brittle and highly...

FCA publishes Q1 fin proms data

The 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...

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...

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...

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 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...

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 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...

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...

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...

FCA updates on Consumer Duty implementation

The FCA has published the findings of its review of firms’ Consumer Duty implementation. The findings are split into six key areas and include examples of good practice and areas for improvement. Good practice –...

FCA intervenes in 10,000 ads in 2023

FCA has published its financial promotions data for the last quarter of 2023 and the entire past year. It has: caused over 10,000 promotions to be withdrawn or changed in 2023 (a 17% increase on the previous year);...

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...

PRA fines for deposit protection failings

PRA has fined 2 entities in the HSBC group £57m for long-lasting historic failure properly to implement its Depositor Protection Rules. The failings occurred in HSBC Bank plc (HBEU) between 2015 and 2022, and in HSBC UK...

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 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 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...

FCA reflects on 2023

Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...

UK Finance responds on D&I

UK Finance has published its responses to the PRA and FCA papers on D&I in the financial sector. Key points in its response include: that the regulatory approach in terms of transparency and accountability should...

FCA updates on retained EU laws

FCA has updated its website with details of the current state of play in relation to the repeal and replacement of retained EU laws in the financial services sector. Coming up in 2024 will be many changes and papers...

FCA makes new rules

FCA has published new rules including amendments to: introduce the requirements on Sustainability Labelling and Disclosure (from 28 November 2023) update SYSC from 8 December in respect of changes to the proportionality...

FCA speaks on importance of culture

Sheree Howard, FCA’s Executive Director of Risk and Compliance Oversight spoke about the importance of the execution of a plan being as vital as its ideology and purpose. She said firms must look at whether they...

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...

FCA publishes operating metrics

FCA’s latest authorisations metrics, for the quarter ending September 2023 shows overall improvement in meeting targets. 96.8% of all applications met statutory deadlines, and of the 16 metrics only 2 are red...

FCA speech: next steps for Consumer Duty

Nisha Arora (Director of Cross Cutting Policy and Strategy at the FCA) has delivered a speech on the Consumer Duty and the next steps for firms. The speech highlighted the following examples of good practice identified...

FCA writes to RemCo chairs

FCA has written a “Dear Chair” letter to the chairs of Remuneration Committees of proportionality level one dual regulated firms. The letter: stresses that in times of continuing cost of living pressures...

Regulators confirm removal of bonus cap

PRA and FCA have confirmed the decision to remove the limits on the ratio between fixed and variable remuneration with effect from the end of October 2023 and which will apply to current and future performance years...

FCA updates on skilled persons reports

FCA has published the numbers of skilled persons reports commissioned in the first two quarters of 2023: From April to June it commissioned 11 reports, of which 4 related to retail investments and 3 to wholesale...

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...

PRA publishes Occasional Consultation

PRA’s latest Occasional Consultation consults on: changes to the Depositor Protection Part of the PRA Rulebook to make it easier for the FSCS to make electronic payments to eligible depositors of insolvent deposit...

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...

FS Team wins Compliance Register Awards

We were thrilled to come away from this year’s Compliance Register Platinum Awards with two victories – winning the Best Law Firm – Regulatory Advice, and Best Regulatory Lawyer categories – and...

Where next for Consumer Duty?

Following our last FIN Live, we’ve written an article for Compliance Monitor on next steps for firms in relation to Consumer Duty compliance, and FCA’s expectations.  Read it here!

FCA notifies of changed Form A

As part of FCA’s overall update of authorisation application forms it is now formally launching Form A and has started contacting firms to tell them how they can access it to take part in public testing. It plans...

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...

FCA speaks on financial inclusion

Nikhil Rathi has spoken on how FCA is looking for solutions to tackle financial exclusion, but that it needs help from industry and technology to do so.  He explained that FCA does not have the remit or powers to tackle...

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 updates on insurance market priorities

FCA has published a suite of portfolio letters for the insurance markets, off the back of its value measures data report, but covering its wider supervisory priorities. The letters note the importance of the insurance...

FCA finalises fin prom gateway policy

FCA has published its final policy position on implementing the gateway for firms that wish to approve financial promotions. It has now set out its final approach on: how it will assess applicants at the gateway and the...

FCA consults on MIPRU PII clarifications

FCA’s latest quarterly consultation paper includes a proposal to clarify a potential conflict between the requirements in MIPRU 3.2.1R that require a firm to take out and maintain continuous PII what must include...

FCA publishes Q2 fin proms data

FCA has published its financial promotions data for Q2 2023, which showed that 1507 promotions were amended or withdrawn as a result of FCA intervention. As with the data for Q1, the majority of cases related to retail...

FCA clarifies Advice Guidance Boundary Review

FCA has issued an update on how it and the Treasury will carry out their joint review of the boundary between advice and guidance. Industry feedback has made it clear that consumer needs for advice are diverse, entail...

Consumer Duty takes effect

The Consumer Duty has taken effect for all on-sale products. FCA has reminded consumers of the protections it gives them.
Read our summary of what FCA is expecting from firms.

FCA makes new rules

FCA’s latest Handbook Notice confirms: changes to ICOBS to reduce the impact of financial difficulties by enabling customers to maintain an appropriate level of insurance; amendments to FCA’s Glossary and...

ICO writes to banks on customer information

Following the Nigel Farage account issue, the ICO has reminded banks of their duty of confidentiality. It noted that, while this case is “out of the ordinary” proper processes and procedures must still be...

Government plans online ads crackdown

The Government has published its plans to crack down on harmful online advertising. One of its focuses will be fraudulent celebrity endorsements for scams. It will also be prioritising illegal paid-for advertising...