Vida FatemiIn 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...
Category - Conduct
Emma RadmoreFCA 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...
Consumer Panel publishes review on personal data use
The Financial Services Consumer Panel has published a paper looking at whether firms’ use of personal data is leading to bias and detriment for consumers with protected characteristics. It concludes that most...
Treasury makes fin prom approval permission exemptions
The FSMA (Exemptions from Financial Promotion General Requirement) Regulations 2023 take effect from 27 September, and permit authorised firms to approve promotions of unauthorised firms without holding the newly...
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...
Ombudsman News highlights current hot topics
The latest edition of FOS’ Ombudsman News highlights: the Consumer Duty: now the Duty is in force, FOS will be speaking to firms to assess the complaints firms are receiving; FOS’ updated guidance for firms...
FCA asks banks for account closure information
FCA has followed up its announcement of its upcoming investigation of account closures with a request to the largest banks, building societies and payment firms to provide it, by 25 August, with information on: the...
FCA publishes authorisations metrics Q1 2023/24
FCA has published its authorisations metrics for the quarter ended June 2023. FCA currently has: 2 red categories, relating to authorisations of EMIs and PIs 6 amber categories, relating to SMCR and AR related approved...
Laura WilesFCA publishes letter on freedom of expression and provision of banking services
FCA has published a letter to HM Treasury on freedom of expression and the provision of banking services, in response to increased public concern about payment accounts being closed without fair justification. The...
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...
Government consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
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...
PRA confirms changes to Credit Union regulation
PRA has confirmed changes to the Credit Unions part of its Rulebook and a new supervisory statement. The changes follow consultation and relate to: allowing credit unions greater flexibility when investing surplus...
Financial Lives conclusions make uncomfortable reading
FCA has published the results of its latest Financial Lives survey, which it says serve to highlight the importance of the Consumer Duty. During the year to May 2022: less than half of UK adults had confidence in the UK...
PRA fines Credit Suisse record £87m for risk management and governance failures
PRA has imposed a record fine of £87m on Credit Suisse for serious risk management and governance failures between 1 January 2020 and 31 March 2021 in connection with its exposures to Archegos Capital Management. This...
PRA consults on proportionality in Pillar 3 remuneration disclosures
PRA is consulting on proposals to enhance proportionality of Pillar 3 remuneration disclosure requirements, by reducing the number of disclosures required for many smaller banks and building societies. This consultation...
Banks and FCA respond to Treasury on further savings rates queries
Early in July, the Treasury Committee progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. The banks and FCA...
Treasury Committee launches inquiry into barriers faced by women in finance
The Treasury Committee has launched an inquiry into the barriers faced by women in financial services – Sexism in the City. The Committee asks for evidence on the follow topics: Progress made in removing the...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
FCA responds on Odey supervision
The Treasury Committee has published FCA’s response to its enquiry on the supervision of Odey Asset Management, following the media allegations of highly inappropriate behaviour by Cripin Odey (which he has...
Ombudsman News updates FOS initiatives
The latest edition of Ombudsman News highlights: what FOS is doing to prepare for the Consumer Duty; the annual complaints data from 2022/3; its items on hybrid scams and escape of water in unoccupied properties...
Treasury Committee probes further on savings rates
The Treasury Committee has further progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. In...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
FCA updates on Consumer Duty – one month to go!
FCA is pleased with the preparations many firms have made for the Consumer Duty, and has highlighted 10 questions it thinks firms could be usefully asking themselves. The key questions include: whether a firm is...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
Tribunal overturns FCA redress scheme imposed on Bluecrest Capital Management
The Upper Tribunal (Tax and Chancery Chamber) (the “Tribunal“) has upheld an application by Bluecrest Capital Management (UK) LLP (“Bluecrest“), an investment manager, to summarily strike out a...
Duncan ScottPRA publishes authorisations performance report
PRA’s report on its authorisations performance during Q1 2023/24 shows delays in applications for new authorisations – although these are based only 5 cases during the period, PRA achieved its standard in 4...
Commons reconsiders FSM Bill
On 26 June the House of Commons considered the version of the FSM Bill returned to it from the House of Lords. It published its views on aspects of the Bill where it disagrees with Lords changes. While there was...
FCA speaks on cultural evolution
Emily Shepperd of FCA spoke on how culture needs to change to meet expectations. She focussed on how generational changes can fundamentally change culture. She said it is now critical to find a common path, for leaders...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
Lords passes FSM Bill
The FSM Bill has had its third reading in the Lords, and has been passed and returned to the Commons as amended in the Lords. The Commons now needs to consider the Lords’ amendments, and, if all is agreed, the...
FSM Bill: Lords Report stage day 3
Day 3 of the debate on the FSM Bill at Lords Report stage included: a debate on forest risk commodities, which was approved on a vote; a proposal for a number of amendments relating to liability of PSPs for fraudulent...
FSMB Lords Report stage day 2
Day 2 of the Report stage for the FSM Bill took place on 8 June. In the first session, the Lords debated clauses including those on: reporting requirements under the competitiveness and growth objective, a Government...
‘Scale challenger’ banks respond to Treasury Committee on savings rates
The Treasury Committee last month expanded its campaign for banks to increase savings rates offered to loyal customers, questioning why easy access savings rates are much lower than the current BoE base rate. The...
FCA takes action on redress for borrowers
FCA has updated on its work with nearly 100 lenders on how they treat borrowers in financial difficulties. It identified a number of failings, including failure to tailor support to the circumstances of relevant...
FCA publishes authorisations metrics Q4 2022/23
FCA has published its authorisations metrics for the quarter ended March 2023. The metrics show that FCA is continuing to make progress towards meeting its targets, and that it has improved on the significant delays...
FCA takes further action on BSPS advice and offers
FCA has taken action against a third firm that had made unsolicited offers to clients who had been BSPS members. David Stock & Co offered £50 to clients who had not yet complained. FCA has imposed requirements on...
FSMB: Lords report stage scheduled for 6 June
The report stage in the Lords for the FSM Bill will start on 6 June. There is no set length of time for it to last, although further sittings have already been scheduled for 8 and 13 June.
BoE publishes policy statement on model risk management principles for banks
The Prudential Regulation Authority (PRA) has published a policy statement on its model risk management principles for banks (the Principles) following an earlier consultation paper (CP6/22) on the same subject. The PRA...
FCA warns on approaching Consumer Duty
Sheldon Mills has reminded firms there are fewer than 90 days before the start of the Consumer Duty. He said firms that don’t meet the Duty’s requirements and who most put consumers at risk can expect swift...
PRA publishes policy statement on SMCR form changes
Following its January 2023 consultation, PRA has published a policy statement setting out changes to the SMCR forms in its Rulebook. In particular, PRA will: Amend the Senior Managers Regime – Applications and...
FCA publishes Q1 fin proms data
The Financial Promotions data from Q1 2023 shows that 2235 promotions were amended or withdrawn as a result of FCA intervention. Nearly half of these were identified by FCA’s own proactive monitoring and almost...
LSB publishes its 2023/24 Business Plan and Budget
The Lending Standards Board (LSB) has published its Business Plan and Budget for 2023/24. Its focus areas this year will include financial resilience and digital journeys, and its ongoing work on the prevention of APP...
FCA speaks on credit markets
Roma Pearson of FCA spoke on the importance of a well functioning credit market and the need for firms to understand the impact on consumers of changing pressures and to offer appropriate support. She noted that good...
FOS updates on wider implications framework
FOS has updated its website on how it works with other organisations to assess issues that can have a wider impact across the financial services industry. The members are FOS, FCA, FSCS, The Pensions Regulator and MaPS...
FCA updates Consumer Duty letters with CFD provider letter
FCA has published its portfolio letter to CFD providers on preparing for the Consumer Duty. As with the other letters, it reminds firms of the implementation timeline and key elements of the duty, with details of the...
FCA and ASA partner with Love Islander to educate fin-fluencers
FCA and ASA have teamed up with former Love Island contestant Sharon Gaffka to help educate fin-fluencers about the risks of promoting financial products. The regulators have previously issued warnings to fin-fluencers...
PRA publishes 2023/24 FSCS management expenses levy limit
PRA has published a policy statement which contains its final policy following its consultation on the FSCS Management Expenses Levy Limit (MELL) 2023/24. The consultation proposed a MELL of £109.8 million for 2023/24...
PRA censures Wyelands Bank for governance failings
PRA has censured Wyelands Bank Plc for wide-ranging and significant failings in its governance, controls and risk management procedures over a period from the end of 2016 to mid 2020. The failings related to: large...
FCA publishes MoU on Immigration Act support
FCA has published a MoU with Synectics Solutions Limited, which replaces a 2014 MoU with CIFAS and addresses how the two organisations will work together in relation to the provision of information in relation to the...
Government publishes paper on whistleblowing framework review
Government has published a policy paper on its review of the whistleblowing framework terms of reference. The review will examine the effectiveness of the framework in meeting its original objectives under the Public...
PRA publishes policy statement on depositor protection rules changes
PRA has published a policy statement providing feedback on responses to its consultation on depositor protection. It also contains PRA’s final rules concerning the relevant amendments to the Depositor Protection...
FCA makes new rules
FCA’s latest Handbook Notice confirms: changes to the FSCS MELL effective from 1 April; amendments to Consumer Duty rules: these changes result from questions FCA has received. The key clarifications confirm how...
Treasury and regulators consult on SMCR
Treasury has published a call for evidence and PRA and FCA have published a discussion paper on the effectiveness of the SMCR. The papers, which result from the announcement of the Edinburgh Reform package, seek views...
FSM Bill 9th Grand Committee session
The 9th Lords Grand Committee session on the FSM Bill took place on 21 March. Topics debated were: the proposal to limit the powers of PRA to prevent a matching adjustment being applied to a portfolio of high risk or...
Banks respond to Treasury Committee on savings rates
The Treasury Committee had written to Barclays, HSBC, Lloyds and NatWest as part of its inquiry into retail banks, asking them about savings rates. As a result of the responses it has now written to the FCA. The...
FCA speaks on simplified advice and advice/guidance distinction
Therese Chambers, director of Consumer Investments at FCA, has spoken on the progress FCA has made in the past 10 years on getting a well working consumer investment market. While noting the successes of the RDR, she...
LSB publishes Customer Vulnerability report
The LSB has published a report reviewing customer vulnerability in the banking and lending sector. Overall, the LSB concluded that it was clear that firms are committed to meeting the requirements set out in the...
FCA issues Supervisory Notice to Roark Holdings Ltd
FCA has issued a Supervisory Notice to Roark Holdings Ltd varying the firm’s authorisation under the PSRs 2017 by imposing restrictions on its business due to the firm’s failure to inform the FCA of a major...
FCA publishes its Perimeter Report 2023
The FCA has published its latest annual Perimeter Report. It highlights some of the challenges faced within the current financial services regulatory perimeter and signposts desired future action the FCA would like to...
Jasmine ZacherFSM Bill Committee day 7
On the seventh day of debate in the Lords’ Grand Committee, the Committee: continued its debate on climate issues – including on PRA risk weightings and solvency capital requirements, and a ban on regulated...
FCA continues Consumer Duty preparation support
FCA has published a further set of portfolio “Dear CEO” letters aimed at helping firms to prepare for the final push towards Consumer Duty implementation. Its latest series of letters cover: motor finance...
Regulators update Regulatory Initiatives Grid
The Financial Services Regulatory Initiatives Forum has published the sixth edition of the Regulatory Initiatives Grid. The edition was due last November, but has been held back to allow the regulators to consider how...
FCA publishes Consumer Duty programme of engagement
FCA has published a press release on its programme of engagement for the Consumer Duty, as its second batch of portfolio letters were sent on 21 February 2023. FCA’s programme of engagement sets out expectations...
Nicola RadfordFCA publishes more Consumer Duty letters
FCA has published three more letters in its series of letters to firms on preparation for the Consumer Duty. The latest set relate to: debt advice firms; debt purchasers, debt collectors and debt administrators; and...
FCA re-recognises LSB business lending code
FCA has renewed its recognition of LSB’s Standards of Lending Practice for business customers as from 6 February. The recognition expires on 10 February 2026. The standards address lending to SMEs with a turnover...
PRA updates Remuneration SS
PRA has updated its SS2/17 on Remuneration following its policy statement. The changes took effect from 10 February, and add a new section covering PRA’s expectations that in principle, unvested, deferred claims...
FSMB 4th session in Grand Committee
The 4th sitting of the Grand Committee on the FSM Bill took place on 6 February. The Committee discussed: financial inclusion, both as a general principle and in terms of the reality of retail investors being excluded...
Edinburgh Reforms inquiry hears evidence
The Parliamentary Committee on the Edinburgh Reforms is currently accepting evidence, and held a formal session on 1 February at which Sir John Vickers and Sir Keith Skeoch gave evidence on ring-fencing. The evidence is...
FCA publishes Consumer Duty sector letters
FCA has published a set of Dear CEO letters it has sent to several sectors on preparation for the Consumer Duty. It has so far written to: asset management, custody and fund services and alternatives; consumer...
FCA steps up on fin prom actions
The latest figures FCA has published on its actions relating to financial promotions shows a huge increase in the numbers of ads it required firms to amend or remove in 2022 over the previous year. It required action...
Treasury consults on crypto regulation
Treasury has published its long-awaited consultation on its plans to regulate cryptoasset activities in the UK. The consultation, which also includes a call for evidence and is accompanied by Treasury’s response...
PRA consults on SMCR form changes
PRA is consulting on removing certain SMCR forms from its rulebook and also increasing the period for which employment history is required. It says that by moving the forms, it means it will not need to consult...
FSMB second day of Lords’ Committee hearing
The second day of debate in the Lords’ Grand Committee consisted of a lively debate on several proposed amendments, none of which have been taken forward. Topics debated were: creating offences for abuse of...
Sub-Committee publishes regulatory correspondence
The Treasury Sub-Committee on financial services regulations has published correspondence it has had with regulators on: sustainable investments: FCA has informed it that it thinks one third of funds that currently...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
FCA publishes multi-firm review of Consumer Duty preparation
FCA has published the conclusions from a multi-firm review it carried out to gauge firms’ preparations for the implementation of the Consumer Duty. It asked a range of larger retail firms within its fixed...
FCA updates Consumer Duty resources
FCA has updated its information summary page on the Consumer Duty to include more detail on its expectations on firms applying now for authorisation. It expects firms to provide it with all policies, processes, MI and...
Further FSMB amendments for Lords Grand Committee
Further amendments, and an updated running list of amendments, to the FSM Bill to be discussed in the Lords Grand Committee have been published. Among the latest additions are changes which would: remove short selling...
Treasury Committee publishes FCA information request
The Treasury Committee has published a letter sent to Nikhil Rathi on 1 December, asking for details on: total vacancies FCA has in specific areas, by grade, job and which ones require data or technology skills; how FCA...
FCA releases Consumer Duty podcast
FCA has released an “insider FCA” podcast on the Consumer Duty, looking at understanding the products and services outcome.
Lords publishes FSMB amendments for Committee
The House of Lords has published a set of amendments to the FSMB for discussion in the Grand Committee, which is now scheduled to sit on 25 and 30 January and 1 February. The amendments include several amendments that...
FCA updates whistleblowing figures
FCA has published its quarterly data for Q3 2022 on reports from whistleblowers. Between July-September 2022 it received 291 reports containing 734 allegations, mainly through its online reporting function, but with...
FCA Portfolio letter- wholesale brokers
FCA has written a portfolio letter to the wholesale broking sector. The letter notes that although generally brokers do not aim to take market risk in their core activities, there have been significant periods of...
FCA updates on Skilled Persons reports
FCA has published the figures for its Skilled Persons reports commissioned in the period from July to October 2022. 11 were commissioned in total, with 4 in the retail investments area, none for general insurance and...
FSMB completes second reading in Lords
The FSMB had its second reading in the Lords on 10 January. Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...
FCA updates Consumer Duty information page
FCA has updated its general information page for firms on the Consumer Duty. The page sets out brief guidance on: FCA’s expectations for outcome monitoring: FCA notes that without appropriate monitoring of...
FCA makes new rules
FCA’s latest Handbook Update confirms the following new rules: the Non-Workplace Pensions Instrument, which takes effect from 1 December 2023 and puts in place changes designed to help non-workplace pension savers...
The Edinburgh reforms – and more
See our article, summarising various FIN posts over the past week on the state of play of the FSM Bill and the Edinburgh reforms.
FCA publishes D&I review
FCA has published a report following its multi firm review of how firms are designing and embedding D&I strategies. Its review covered 12 fixed portfolio firms across multiple sectors, and consisted of it asking for...
FCA fines Metro Bank for Listing Rule breaches
FCA has fined Metro Bank over £10m and has also decided to fine its former CEO and CFO £223,100 and £134,600 for being knowing concerned in the bank’s breach of the Listing Rules, which involved publishing...
Treasury publishes FS law Brexit strategy
Treasury has published a Policy Paper setting out how it intends to deal with retained EU law in the financial regulatory sector. The Policy Paper says that the FSMA model, with the operationally dependent regulators...
FCA updates SMF and related pages
FCA has updated several parts of its website relating to its approval process for senior manager and other individual applications. The updated pages include: details on the approved persons process generally; how to...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
FCA fines brokers for market abuse detection failings
FCA has fined 3 firms within the BGC and GFI group a total of £4,775,200 for failure properly to implement the MAR trade surveillance requirements, which meant there was an increased risk that the firms would not detect...
New AR rules take effect
The FCA’s reforms to the appointed representative regime have come into force and the FCA has published a new webpage setting out information on the s165 requests it will be sending to principal firms. As a...
Lucy HadrillFCA quarterly consultation clarifies Consumer Duty application
FCA’s Quarterly Consultation proposes minor changes to various parts of its rules, including providing clarification on the Consumer Duty. The paper proposes: amendment to TC to include The London Institute of...
FSM Bill report stage on 7 December
The FSM Bill is to have its report stage and third reading in Parliament on 7 December, after receiving the Bill with amendments from the Public Bills Committee. It is possible for Parliament to make amendments at...
FCA speaks on culture in financial services
Emily Shepperd, Chief Operating Officer and Executive Director of Authorisations at FCA, gave a speech at City and Financial Global’s 8th Annual Culture and Conduct Forum. The speech highlighted that FCA believes...