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...
Category - Conduct
Laura WilesFCA 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...
FIN. TeamFSM 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...
Emma RadmoreFCA 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...
FCA 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...
FCA 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...
FCA speaks on D&I
Sheldon Mills has spoken to the ABI on driving change in D&I within the FS industry. He noted that the insurance industry is not currently attractive to minority ethnic talent, although is generally a good place to...
Emma RadmoreFCA speaks on “rolling regulation forwards”
Nikhil Rathi spoke to UK Finance on three key developments which he said will drive regulation forwards: the Consumer Duty: he discussed FCA’s reasons for introducing the Duty, and how FCA would be looking to...
Financial Services Culture Board reveals 2022 employee survey results
The FSCB survey shows that, over the seven years since it started, firms have shown steady improvement overall in scores related to leadership, taking responsibility and speaking up and being open to challenge. ...
FCA updates ARs page
FCA has updated its website page on Appointed Representatives, to reflect the changes coming in on 8 December. Among other things, the page reminds firms of: the s165 information request that principals will receive...
Principals to respond to AR requests by 28 February 2023
Following confirmation that it will be sending principal firms that have ARs a s165 information request in December, the FCA has updated its webpage to let firms know that they should expect to receive this via Connect...
FOS publishes latest complaints data
The latest quarterly complaints data from FOS reveals: 38,470 new complaints from July – September 2022 (Q2), an increase of 3,000 on Q1; nearly 6,000 complaints about current accounts (up by 500) nearly 3,400...
Court finds mortgage adviser had no duty to investigate underlying investment
The High Court has ruled on a case brought by investment fraud victims in a clarification of mortgage advisers’ duties. The judgment in Taylor & Anor v Legal and General Partnership Services Ltd [2022] EWHC...
Further FSMB revisions released
Parliament has published the latest raft of proposed amendments to the FSM Bill. These include: a change to the very first sub-clause, replacing the revocation of the EU and EU-derived legislation in the schedule so...
FCA publishes H1 complaints data
FCA has published the complaints data for H1 2022, which shows: a 1% increase in complaints from the previous period (1.88m complaints) the biggest increase was in the decumulation and pensions group (15%) with a 5%...
PRA fines MS Amlin for governance failings
PRA has fined MS Amlin Underwriting Limited nearly £10m for failings in its governance, controls and risk management. The failings lasted for over 5 years and related to the governance and oversight of underwriting...
First day of FSMB Committee hearing
As scheduled, the Public Bill Committee scrutinising the FSM Bill had its first day of scheduled evidence sessions on 19 October, and an updated amendment paper was published. The Committee heard in the morning from...
ASA finds HSBC sustainability-focused adverts misleading
The UK advertising watchdog, the ASA, held that HSBC misled consumers with two advertising posters, which were displayed in the run up to COP26, focused upon sustainability commitments. The posters made claims about the...
Ashley BorthwickLMA publishes managing agent Consumer Duty guidance
The LMA has published guidance for managing agents on the implementation of the Consumer Duty. It notes (as FCA did in its insurance-focussed webinar) that the insurance industry should be well prepared for the...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...
FSMB Committee stage scheduled for 19 October
An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October. After the line by line debate is complete, the Bill will be republished for report...
FCA finalises branch closure guidance
FCA has published new, updated guidance for banks, setting additional expectations on them when they are considering closing branches or ATMs. FCA has seen some good practices develop since it originally published...
BoE consults on AI discussion paper
The BoE is consulting on its discussion paper about how artificial intelligence (AI) may affect financial regulation. The discussion paper looks at how the current regulatory framework applies to AI; it considers how...
FCA launches new webpage on Consumer Duty
The FCA has published a new webpage containing information on the Consumer Duty. The webpage, which will be kept up to date, currently contains guidance for firms on: implementation plans and the FCA’s...
Market Watch focuses on transaction reporting
The latest edition of Market Watch looks at how many firms have accessed FCA’s Market Data Processor Entity Portal over the past 4 years – and there has been a gradual increase. There has however been a...
FCA consults on creating baseline financial resilience return
FCA is consulting on a proposed replacement for the Financial Resilience Survey. It plans to create a new return for solo-regulated firms, which it hopes will both reduce the burden of ad hoc surveys and increase the...
FCA speech: Consumer Duty
Sheldon Mills (Executive Director, Consumers and Competition at the FCA) has delivered a speech on what firms and customers can expect from the Consumer Duty. Mr Mills stressed that, whilst the Duty is not yet in force...
Consumer Duty: FCA update and events
The FCA has published a new webpage on Consumer Duty, which outs out the timeline and key milestones for implementation and contains links to register for FCA webinars and email updates. You can also register to attend...
FCA speaks on role of regulation in growth
Sarah Pritchard, Executive Director at FCA, has spoken on the regulator’s role in encouraging growth. Key points in her wide-ranging speech included: FCA’s commitment to showing speed and agility, providing...
FCA confirms SMCR Covid guidance no longer current
FCA has updated its website in relation to the SMCR to confirm that its Covid-related guidance on workplace arrangements and work-related travel and its expectations on firms is no longer current.
PRA’s future approach to policy
On 8 September 2022, PRA published its intended future approach to policy in a new discussion paper (the ‘paper’) which is summarised on the Bank of England’s website. The paper is based on the FSM...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation. It proposes changes to: the schemes regime under s272, and consequential changes to COLL, the Glossary, DEPP and EG. The changes specifically relate to what FCA...
FCA updates attestations stats
FCA has published details of the number of attestations it has received in the first quarter of 2022/3. It has received only 4, all in respect of retail business, and none from dedicated supervision firms. Over the...
PSR to regulate Sterling Fnality Payment System
HM Treasury has designated Sterling Fnality Payment System as a regulated payment system from 31 August 2022. Accordingly, PSR has confirmed that Sterling Fnality Payment System will be subject to PSR regulation from 31...
Harshil PatelThe future of Open Banking and the Joint Regulatory Oversight Committee
FCA, PSR, CMA and HM Treasury have published a joint statement on the future of open banking, announcing the creation of a joint regulatory oversight committee. The committee, co-chaired by the FCA’s Executive Director...
Consumer Duty: building an implementation plan
UK Finance has outlined four key elements firms should be focussing on when building their Consumer Duty implementation plans. These are: definition of the target end state as an input to the gap assessment – to define...
No further action against HBOS senior managers
PRA and FCA have finished their investigations into certain former senior managers at HBOS in relation to its 2008 failure. The regulators started the investigations in 2016 following the Green report on the scope of...
FCA to send AR requests in December
FCA has confirmed it will be sending principal firms that have appointed representatives a s165 information request in December. The request (which FCA had previously said it would issue later this year) will seek...
FCA to consult on SMCR enhanced scope coverage
FCA is to consult shortly on changes to clarify the scope of firms that fall within the scope of Enhanced Scope SMCR firms. When it renamed and moved the definition of “Significant IFPRU firm” as part of...
Clarity for lenders dealing with borrowers in distress
The Supreme Court has refused the Appellant’s application for permission to appeal against the Court of Appeal’s decision in Morley (t/a Morley Estates) (Appellant) v The Royal Bank of Scotland Plc...
PRA removes deposit taking permission from Sonali Bank
PRA has varied Sonali Bank’s permission so that it no longer has permission to accept deposits. The decision, published in a second supervisory notice, states that the firm is failing to meet the threshold...
FCA publishes “alternatives” supervisory letter
FCA has published its supervisory strategy letter for “alternatives” – that is firms that are predominantly active in the alternative investment sector. Although the letter, as usual, is addressed to...
Read our article on the new Consumer Duty
Following up on our headline post, we have written an article giving more detail on the Consumer Duty and highlighting some of the key changes since the FCA’s second consultation paper. The implementation deadline...
FCA confirms new AR rules
FCA has confirmed its new rules to make principal firms more responsible for their ARs. The package of rules, which will take effect from 8 December, will: require principals to notify FCA of future AR appointments 30...
FCA publishes 2022 “Dear Remco Chair” letter
FCA has updated its materials on SYSC 19D to include its “Dear Remuneration Chair” letter for 2022, which sets out its expectations as the Remuneration Committees determine the year’s remuneration...
EIOPA consults on governance arrangements in third countries
EIOPA has launched a public consultation relating to a draft supervisory statement on the use of governance arrangements in third countries. EIOPA’s aim with the supervisory statement is to enhance the supervision and...
Climate-related disclosures improve but could still be better
FRC and FCA have published two reports which found that premium listed companies have made significant steps forward in the quality of climate-related information provided in their financial reports, but further...
FCA says applicants must prove ability to comply with Consumer Duty
FCA has updated its website in relation to applications for authorisation in light of its publication of the final rules on the Consumer Duty. It now says that it expects all applicants for authorisation or VOPs to be...
Employee fairly dismissed for failing to disclose that he had been made bankrupt
We have commented on the recent Employment Appeal Tribunal (EAT) decision in Pubbi v Your-Move.co.uk [2022] EAT 96 in which an employee was dismissed for failing to disclose that he had been made redundant, following up...
Need more detail on the Financial Services and Markets Bill?
We’ve produced a detailed summary of the key aspects of the Financial Services and Markets Bill, following up on our headline post. While the Bill won’t be having its second reading until September, keep an...
FCA publishes final rules on Consumer Duty
Following two consultations on its proposals, the FCA has confirmed its plans for a new Consumer Duty which will require firms to put their customers’ needs first. The FCA has a parliamentary mandate, via the...
CMA finds that six high street banks broke CMA banking rules
Six high street banks have broken rules imposed by the CMA under the Retail Banking Market Investigation Order 2017. Banks and building societies are required to follow strict rules when it comes to informing customers...
BoE and FCA accept transformation programme recommendations
BoE and FCA are leading a joint transformation programme with industry to transform data collection from the UK financial sector. They have published an initial set of recommendations from the programme and the response...
UK Government publishes proposals for a new AI rulebook
The UK Government has published its plans to regulate the use of AI which aim to to develop consistent rules that promote innovation. The approach is based on six core principles that regulators must apply, with...
New Financial Services and Markets Bill in Parliament
The Government has introduced the Financial Services and Markets Bill into Parliament. The Bill was introduced on 20 July and had its first reading, but no date was set for the second reading. In his first Mansion House...
FCA publishes Annual Report
FCA has published its Annual Report and supporting papers. It highlighted: how nearly 600,000 people are paying less in interest and charges on credit card debt following rule changes; how further rule changes have...
FCA’s CEO speaks on how the UK will regulate for the future
Nikhil Rathi, Chief Executive of the FCA, gave a speech on how it intends to regulate financial services for the future. A different regulator? He stressed that the FCA was: redesigning its operational platform to...
FSB reports on climate change roadmap
FSB has published its first annual progress report in the roadmap for addressing financial risks from climate change. FSB reported that good progress had been made against all four blocks of the roadmap: Firm-level...
PRA finds evidence that banks are reluctant to use their capital buffers
Victoria Saporta, Executive Director of Prudential Policy, gave a speech discussing banks’ reluctance to use their capital buffers. PRA requires UK banks to hold capital ‘buffers’, but the PRA has found evidence...
FCA responds to Treasury Committee on responsibilities regarding financial sanctions
FCA has written to the Treasury Committee to respond to questions regarding its financial sanctions responsibilities. FCA confirmed that its role was to ensure that regulated firms have appropriate systems and controls...
High Court finds that Robert Tchenguiz was correctly classified as an elective professional client and that there was no breach of COBS rules
Background Investor Robert Tchenguiz (T) had opened a spread betting account with CMC Spreadbet plc (CMC), and CMC had elected to treat T as a ‘professional client’. T’s classification as an elective...
FSB writes to G20 Finance Ministers and Central Bank Governors
FSB has written to the G20 Finance Ministers and Central Bank Governors highlighting that lower growth, rising inflation and tighter global financial conditions may crystallise pre-existing vulnerabilities in the global...
FCA publishes findings of SME collections and recoveries review
The FCA has set out the findings of its review on how retail banks treat SME customers who are in collections and recoveries. The FCA reviewed 11 retail banks which provide SME lending services, including BBLS, and...
FCA issues guidance on its approach to compromises
FCA has seen an increase in the number of regulated firms proposing compromises to deal with significant liabilities to consumers, in particular redress liabilities. FCA has issued guidance to clarify how it will...