Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations. He noted the desire to give the EU/UK negotiations “every chance of succeeding”. He noted he had rescheduled many other meetings...
Category - Conduct
Emma RadmoreFCA makes new rules
FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...
FCA updates on Covid-19 delayed activities
FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...
FCA comments on planned amendments to the Benchmarks Regulation
The FCA has issued a statement welcoming the Government’s intention to bring forward legislation to amend the Benchmarks Regulation (“BMR“) to give the FCA enhanced powers. The FCA says these could...
Emma RadmoreChancellor updates on FS laws and Brexit
Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...
FCA ready with Gabriel replacement
FCA has announced that its new platform, which replaces Gabriel, is called RegData, and that it is preparing to move all firms across to it. It will move firms over in groups, depending on the nature of their reporting...
EBA updates risk taker RTS
EBA has published its final draft RTS on the criteria to define material risk takers for CRD purposes. It has published the revised standards to define and harmonise the criteria across the EU. An individual member of...
Randell speaks on supporting the recovery
Charles Randell has spoken to a virtual roundtable of bank chairs on how the financial services industry can work to support recovery from the Covid-19 pandemic. He noted the great efforts that banks and other market...
Government responds on FS post-Brexit inquiry
The Government has published its response (dated 27 May) to the EU financial affairs sub-committee on financial services after Brexit. The letter, from John Glen: confirms that EU negotiations continue to be a priority...
FCA finalises financial resource assessment guidance
FCA has published its finalised guidance explaining how it assesses what is “adequate financial resources“. The draft guidance was published for consultation around a year ago, and FCA has largely...
EIOPA consults on digitalisation and the value chain
EIOPA is consulting on how the continued evolution of technology is affecting business models and bringing beneficial innovation and a new set of risks that need to be taken into account. Firms are increasingly relying...
FCA looks at conduct, culture and Covid-19
FCA has looked at how the measures taken to adapt to working in the times of Covid-19 have affected conduct and culture. It notes that, for those that can work at home, there may be no return to the office for some...
FCA publishes Covid-19 guidance for SMEs
FCA has added to its suite of guidance on Covid-19 issues with a pages setting out help available to SMEs. The guidance explains what BBLS and CBILS do, and explains the guidance FCA has given to banks and insurers on...
ESMA opines on compliance function
ESMA has given new guidance on the MiFID 2 compliance function, replacing 2012 guidance. The new version aims to provide more clarity and more convergence in implementation and supervision of the requirements of MiFID...
EVENT: Retail Banking Mixer Webinar
Our next r=Retail Banking Mixer will be held by webinar on 18th June at 10am. We are delighted to be joined by Rosemary Ford and Amber Andrade from Deloitte this time. The webinar continues the focus on COVID-19. Our...
FCA speaks on current concerns and crisis response
Megan Butler has spoken to PIFMA on FCA’s response to Covid-19 and its expectations for the rest of the year, with a focus on its actions and expectations in respect of wealth managers. Generally, she thought the...
FOS updates on priorities
FOS has published its three strategic priorities for the next 5 years: enhancing its service preventing complaints and unfairness arising and building an organisation with the capabilities it needs for the future It...
FCA finalises SMCR rules for benchmark administrators
FCA has published its final rules on extending the SMCR to employees at benchmark administrators. The rules, bespoke to firms that undertake no other regulated activities, take effect from 7 December. UK-based...
PRA confirms stance on e-signatures
PRA has confirmed its position on acceptability of electronic signatures when firms are submitting forms and other regulatory documents. It confirms this is permissible, in the absence of any legal provisions to the...
IOSCO consults on outsourcing principles
IOSCO has published a consultation paper on updating its guidance on the principles of outsourcing. It delayed publishing the consultation because of Covid-19 but now feels it is right to publish it, not least because...
FCA updates on CPD and Covid-19
FCA has previously said that is expects firm to be able to show that individuals are competent to carry out their work during the pandemic. It notes that effective and consistent CPD is a part of this, but that it is...
PRA updates on “prudent person” principle
PRA has updated its policy documents following its consultation on the Prudent Person principle under Solvency 2. PRA received only 7 responses to its consultation, but have made some clarificatory changes following...
FCA makes new rules
At FCA’s May Board Meeting it made 3 new sets of rules: the Covid-19 Premium Finance Instrument, which took effect from 18 May and introduced the new requirements on payment deferrals and other measures for...
Regulator Covid-19 update 22 May
After a relatively quiet week, on 22 May: FCA announced further support for customers struggling to pay mortgages due to Covid-19. It is consulting on what options firms will need to provide to customers reaching the...
Government publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
FCA clarifies paper issues during Covid-19
FCA has set out its expectations on how firms should deal with post and paper-based processes during the pandemic. It says it recognises firms will be finding it hard to process post and comply with paper-based...
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
FCA speaks on response to Covid-19 and Brexit
Nausicaa Delfas has spoken on FCA’s national and international response to Covid-19 and Brexit. On Covid-19, she noted: FCA’s priority to keep markets open and orderly, help firms continue to operate...
Regulator Covid-19 update 6 May: SMCR, financial crime systems and other updates
On 6 May: FCA published a modification by consent and a direction to enable all solo-regulated firms to arrange for an unapproved senior manager to cover SMFs in an emergency, from the normal 12 weeks to 36 weeks, as...
Regulator Covid-19 update 1 May
On 1 May, FCA: announced proposals for a Court declaration on business interruption claims proposed guidance for insurers on assessing whether products still offer value and appropriate action to take where they do not...
PRA agrees time-limited SMF approval
PRA has agreed that an individual currently approved to the Chair role at four insurance entities within the Bank of Scotland/Lloyds Bank group (and an approved NED of the two banks pre-SMCR) may take on the SMF10 role...
Regulator Covid-19 update 22 April
On 22 April FCA published a new webpage on PII cover for financial advisers. It recognises that firms may be concerned about their ability to renew their PII during the Covid-19 crisis, which may impact on their...
Regulator Covid-19 update 21 April
FCA has updated its information page for firms, in respect of professional qualification exams. It notes that while professional exams are being cancelled, firms must still ensure employees have the skills, knowledge...
PRA updates on skilled persons reports
PRA has published details of the skilled persons reports it commissioned in Q3 2019/20. There were 8 in total, of which 3 related to technology and information management in banks, and 2 to controls and risk management...
Regulator Covid-19 update 17 April
In addition to FCA’s consultation on further measures to help consumers who have motor finance or high cost credit products, covering motor finance, rent-to-own, BNPL and pawnbroking and HCSTC, it has also updated...
Dear CEO Letter: SME Lending
The FCA published a Dear CEO Letter today setting out its expectations of Banks who lend to SMEs. Whilst SME lending sits mostly outside the FCA’s scope, the FCA has called out that any activity undertaken by a...
FCA updates on SMCR Covid-19 expectations
FCA has published further guidance for solo-regulated firms on its expectations in relation to the SMCR and Covid-19. The guidance mirrors the guidance issued by PRA and FCA for dual-regulated firms but additionally...
Regulator Covid-19 Update 6 April
On 6 April, the regulators further update their Covid-19 measures: FCA updated its expectations on solo-regulated firms in respect of the SMCR; FCA published a summary of queries it has received on client assets...
Regulator Covid-19 update 3 April
On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...
Regulators clarify SMCR obligations during Covid-19
PRA and FCA set out their expectations on dual-regulated firms under the SMCR. The regulators say they recognise firms will have to keep their governance arrangements under review, and intend to be flexible. It notes...
Regulator Covid-19 update 1 April
Further updates from the regulators, in addition to FCA’s Dear CEO letter to retail investment firms, include: PRA welcoming the agreement by the boards of large UK banks to suspend dividends and buybacks on...
Regulator Covid-19 update 30 March
The regulators were quite quiet on 30 March with the key update being FCA’s statement on work-related travel and the responsibilities of senior managers – in relation to which it has stressed its support for...
Regulators publish 2020/2021 MELL
PRA has published a feedback statement and final rules on the FSCS Management Expenses Levy Limit (MELL) for 2020/2021. In CP 1/20, the PRA and FCA consulted on a proposed MELL of £83.2 million for 2020/21, which...
FIN. TeamRegulator Covid-19 Update 27 March including key worker update
On 27 March: FCA restated its expectation that firms have in place tested contingency plans to deal with major events and that the plans have been tested. In ensuring this, FCA and the BoE will actively monitor firms’...
FCA Covid-19 response to date
FCA is constantly updating its website on its response to Covid-19. We have also written an article summarising this advice at at the morning of 26 March. The FIN team will keep updating items as appropriate within...
FCA delays Directory publication
FCA had been due to publish the initial directory of certified and assessed persons on its Register at the end of March, but is now delaying it for at least a month. Dual-regulated firms had had to submit their data for...
Regulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Covid-19 regulator update 24 March
Late on 23 and on 24 March: PRA announced amendments to regulatory reporting for insurers in response to EIOPA’s recommendations. There will be between 2-8 weeks’ delay for most aspects of harmonised...
Regulator Covid-19 update for 20 March, including on key worker categorisation
On 20 March: BoE and PRA announced supervisory and prudential prudential policy measures to address the challenges of Covid-19: including: cancellation of the annual stress test for 2020 pausing until further notice the...
EIOPA takes Covid-19 action
EIOPA has set out its expectations on insurers as they try to manage the risks Covid-19 presents. Its key messages are: the importance of business continuity. It says regulators can help by being flexible on supervisory...
PIFMA concerned about Open Finance
PIFMA has responded to FCA’s call for input on open finance. While it applauds FCA’s stance on encouraging innovation, and feels the financial services sector has lagged behind other sectors in adopting...
Treasury Committee responds on IT failure and economic crime reports
The Treasury Committee has commented on the responses from Government and regulators on: its October report on failures in the IT industry. The report had concluded, among other things, that: regulators need to improve...
Treasury publishes outcome of regulatory framework review
Treasury has published the outcome of the consultation on the financial services future regulatory framework. The Government’s view is that the institutional architecture for regulation remains appropriate and is...
The Treasury Committees approves Bailey, but says it will keep an eye on the FCA
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England. Whilst it is satisfied that Mr Bailey has the professional competence and personal...
FCA speaks on vulnerable customers
Nisha Arora has spoken on FCA’s approach to ensuring firms treat vulnerable customers fairly. She stressed the need to move away from a tick-box approach to having policies to deal with vulnerability to showing...
FCA drives forward culture changes
FCA has published a Discussion Paper on how to drive purposeful cultures. The paper comprises a number of essays looking at how a good purposeful culture should lead to better outcomes for consumers, markets and...
FCA makes Covid-19 statement
Regulators are working to ensure firms are responding effectively to the consequences of the Covid-19 outbreak. FCA expects all firms to have contingency plans in place to deal with major events, and says it is working...
PRA writes to chairs on board diversity
PRA has written to the chairs of dual regulated firms reinforcing the importance it places on diversity within boards for improving decision making and providing effective challenge. It reminds firms it expects them to...
FCA publishes life insurance outsourcing review
FCA has published the findings from its review into outsourcing in the life insurance sector. The review stemmed from FCA’s awareness that the sector relies heavily on outsourcing and third party providers, and...
FCA writes to CEOs on end of LIBOR
FCA has written a Dear CEO letter to asset management firms on preparing for the end of LIBOR. It expects firms to take all reasonable steps to ensure the end of LIBOR does not lead to markets being disrupted or...
Mental Health: Practical Guide
The Money and Mental Health Policy Institute and the Money Advice Trust have jointly created a practical guide to understanding and evidencing customers’ mental health problems. The guide is aimed primarily at...
FCA speech on penalties, remediation and General Principles
On 12 February, Mark Steward, Executive Director of Enforcement and Market Oversight made a speech at an event on Investigations and Enforcement: A Guide to Managing Regulatory Action. Key takeaways from the speech...
FCA appoints Interim Executive Director of Strategy and Competition
The FCA has appointed Sheldon Mills as the Interim Executive Director of Strategy and Competition. Sheldon will begin the role on 16 March 2020 and replaces Christopher Woolard as he steps into the role of Interim Chief...
FCA writes to credit brokers
The FCA wrote to credit brokers on 13 February 2020 identifying the key drivers of harm within the credit broking portfolio. These include:- failure to understand regulatory requirements; poor oversight of staff and...
New appointments to the FCA Board
HM Treasury has confirmed the appointments of Jeannette Lichner and Bernadette Conroy to the FCA Board. The new NEDs will each serve three-year terms beginning on 1 April and 1 August 2020 respectively.
PRA issues bans following failure of Enterprise the Business Credit Union Ltd (EBCU)
The PRA has banned two former EBCU directors from the financial services industry for their part in the failure of the company, which held £7m in savings for its 1,900 members. EBCU entered into administration in 2015...
FCA writes strategy letter to platforms
FCA’s latest portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...
ESMA takes action on suitability
ESMA is launching a common supervisory action with national authorities on the application of the MiFID 2 suitability rules. It feels it needs to gauge how intermediaries have been applying the requirement and help in...
FCA updates on skilled persons figures
FCA has published its latest figures on the numbers of skilled persons reports it has commissioned. During Q3 of 2019/2020 it commissioned 10 – of which 5 related to wholesale financial markets, 2 each to retail...
FCA writes strategy letter to platforms
FCA’s latest portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...
Christopher Woolard new FCA Interim Chief
Christopher Woolard has been appointed as Interim Chief Executive of the FCA once Andrew Bailey leaves to become Governor of the BoE.
FCA updates on asset management supervisory strategies
FCA has: written a Dear CEO letter about its asset management supervision strategy. The letter outlines FCA’s view of the key causes of harm asset managers can post to their customers or the markets in which they...
EBA updates its guidelines on fraud reporting under PSD2
The European Banking Authority (EBA) has published amendments to its 2018 guidelines on fraud reporting under the revised Payment Services Directive (PSD2). The amendments: introduce two new data fields for reporting...
EBA finds “identified staff” RTS working well
EBA has conducted a peer review of how national regulators have applied its RTS on the criteria for identifying staff whose professional activities have a material impact on an institution’s risk profile. The...
Duty of Care Bill progresses in Lords
The Financial Services (Duty of Care) Bill, the Private Members’ Bill to require FCA to make rules requiring authorised firms to owe a duty of care to consumers in their regulated activities, and originally...
Up next from FCA
FCA plans a number of important publications during Q1 2020 including: consultation on exit fees in investment platforms and comparable firms potential policy statement on general insurance value reporting measures and...
FCA writes to boards on personal and commercial line harm
FCA has written to the Boards of Directors of insurers setting out its views on the key risks of harm that personal and commercial lines insurers can post to their customers and the markets. It is telling firms about...
FCA writes to insurance CEOs on non-financial misconduct
FCA has written to the CEOs of wholesale general insurance firms reminding them of the importance of high standards of culture and conduct throughout their business. It expects CEOs to identify what drives behaviour...
PRA increases scrutiny of Lloyd’s of London over whistleblowing issues
The PRA has announced that they have temporarily increased their supervision of Lloyd’s of London in relation to their whistleblowing processes. This results from the notification to the PRA by the Society of...
EVENT: Retail Banking Mixer
Bringing together professionals in the insurance, banking and other financial services sectors, we will be hosting the first of our quarterly RETAIL BANKING MIXERS at our Edinburgh office on 9th January from 4pm –...
Extension of the Senior Managers and Certification Regime comes into force
The FCA has extended the Senior Managers and Certification Regime (SM&CR) to solo-regulated firms, including senior managers and certification staff in those firms. The SM&CR already applies to the banking and...
Investment firm legislation in OJEU
The Directive and Regulation making changes to existing laws on prudential requirements for, and supervision of, investment firms, have been published in the Official Journal. The legislation makes several significant...
Risk management guidance published by professional bodies association
The Risk Coalition, a UK association comprising not-for profit professional bodies and membership organisations and focusing on raising the standards of risk management, has published a guidance document for board risk...
The FCA publishes feedback on its ‘Duty of Care’ Discussion Paper
The FCA has published its Feedback Statement on its ‘A duty of care and potential alternative approaches’ Discussion Paper which summarises the feedback from respondents and sets out how the FCA plans to deal with the...
FCA alerts investment firms to new management body form
FCA has alerted firms to a new form that MiFID investment firms and optional exempt firms will need to use when submitting information to it in relation to non-SMF directors. The form will apply from 9 December and is...
FCA publishes IDD general good table
FCA has published on its website the IDD “general good” rules that apply to incoming firms. The table refers to the existing guidance in SUP 13A Annex 1, and notes that many parts of FCA’s rules apply...
FCA consults on SMCR for benchmark administrators
FCA is consulting on the practicalities of applying the SMCR to benchmark administrators – to whom the SMR will apply from 7 December 2020 (a year after the wider roll-out). The key proposals are that: all...
SMCR: They think it’s all over?…
We’ve written an article reviewing what solo-regulated firms should already have done to be ready for SMCR, but why they cannot take too much of a break.
Responsible Lending Changes Implementation Group meeting
Further to their last meeting, the FCA reported today that the responsible lending changes implementation group had met again on 25 October. This meeting which was held in advance of publication of the policy statement ...
Financial Inclusion
On Tuesday night, we hosted our first ever Talking Money event in partnership with the Scotsman newspaper in our Edinburgh office. The event focused on the topic of tackling financial exclusion in Scotland. The...
FCA publishes GI distribution chain guidance
FCA has published its finalised guidance for general insurance product manufacturers and distributors on the distribution chain. The guidance follows the findings from FCA’s thematic review in 2017 and 2018, and...
Bills not to progress due to election
Parliament has updated its webpages in respect of the Goods Mortgages Bill, the Pension Schemes Bill and the Financial Services Duty of Care Bill. The 2017-2019 Parliamentary Session was dissolved on 6 November ahead...
Up next from FCA
FCA’s latest Policy Development Update promises a number of publications before the end of the year, including: feedback on the Investment Platforms Market Study remedies; consultation on policy proposals for next...
PRA to use s166 for regulatory returns
PRA has written a Dear CEO letter to banks on the reliability of regulatory returns. The letter highlights the recommendations of the review into the Co-Op bank – specifically that PRA should consider introducing...
FCA makes new rules
FCA’s latest Handbook Notice summarises various instruments made at the end of September and October: the Overdrafts (Information and Tools) Instrument 2019 takes effect on various dates to 6 April 2020, and...
Duty of Care Bill starts Parliamentary passage
A Private Members’ Bill started in the House of Lords by Lord Sharkey has had its first reading. The Bill, the Financial Services Duty of Care Bill, proposes amending FSMA to require FCA to make rules requiring...
SMCR conversion notification – FCA webpage provides explanation
The FCA has published a new webpage setting out specific guidance for the solo-regulated firms that have to complete Form K as part of their preparation for the start of SMCR. The deadline for submission of Form K is...
FCA imposes £15.4m file for Principles breaches
The FCA has announced that it fined an interdealer broker, Tullett Prebon, £15.4 million, due to ‘serious’ breaches of: Principle 2, by virtue of failing to conduct their business with due skill, care and...
ESMA consults on MAR review
ESMA is consulting on its required review of MAR. Its paper looks at many issues including: whether to include spot FX within MAR; differing concepts of inside information and delayed disclosure of it; whether the...
Reminder: EBA Outsourcing Guidelines are in Force
We previously reported that the EBA had published its revision to the European Banking Supervisors’ 2006 Guidelines on outsourcing arrangements. The revised guidelines set out a framework for outsourcing by banks...