FCA has published its latest Handbook Notice with new rules. Most of the changes are minor, and update terminology and cross-references. FCA is also making changes to: SYSC and SUP, including adding a new Annex to SUP...
Category - Conduct
Emma RadmoreFCA updates SMCR resources
FCA has updated its checklists for firms preparing for the SMCR. It has added some text about the submission of Form K. It has also added a section for sole traders to its guidance on conversion from the Approved...
FCA publishes Directory entry form
FCA has published forms and guidance for firms that need to submit data for the new Directory of certain individuals working for financial services firms. The guidance explains what FCA considers to be “customer...
FCA speaks on skimmers and scammers
Charles Randell has spoken on FCA’s commitment to the Economic Crime Plan and the importance of embedding fraud prevention in the development of new savings and investment policies. He encompassed within...
PRA writes to banks on AML risks
PRA has written a Dear CEO letter bringing banks’ attention to EBA’s opinion on the ML/TF risks in prudential supervision, and confirm it will continue to consider these concerns as part of its prudential...
BSB publishes regulatory references good practice guide
The Banking Standards Board has published its guidance on good practice for regulatory references. The guidance is based on the three key principles of proportionality, fairness and consistency. While the guidance was...
FCA updates on Remuneration Code expectations
FCA has written its annual letter to RemCo chairs of Level 1 firms. The letter sets out what FCA has found on accountability, ex-post risk adjustments and diversity and inclusion. The letter: notes the responsibilities...
ECB calls for step up in Brexit preparation
ECB is concerned that banks have not progressed as far with their Brexit planning as they had originally indicated they would. ECB notes that it considers the risks of a no-deal Brexit to the overall euro area financial...
Emma RadmoreFCA publishes SMCR stocktake report
FCA has published the findings of its review on how the SMCR has been embedded in the banking sector. It hopes banks and solo-regulated firms will find the conclusions of use and interest, although it notes the review...
FRC fines KPMG and individual over CASS reports
The Financial Reporting Council has fined KPMG Audit plc £3.5m (including a 30% reduction for it admitting the misconduct) and one of its (now) partners £52,500, reprimanded them, and imposed a requirement on the firm...
Market Watch focuses on insider dealing risks
The latest edition of FCA’s Market Watch focuses on FCA’s concerns on access to inside information, following the conviction of a former compliance officer for sharing information. FCA noted that Fabiana...
New FCA webpages on SMCR extension to FCA solo-regulated firms
The FCA has published two webpages with information for regarding the extension of the SMCR to solo-regulated firms. The first page published on 26 July includes a guide for firms, details of how the SMCR applies, a...
FCA publishes SMCR final rules
FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...
FCA consults on vulnerable customer guidance
FCA has published a guidance consultation on what it considers the Principles require of firms in terms of fair treatment of vulnerable customers. It thinks firms have made big improvements generally, but now wants to...
Lending Standards Board confirms threshold increase for small businesses
The Lending Standards Board (LSB) has announced that from the Standards of Lending Practice for business customers are to apply to businesses with a turnover of up to £25 million, from the previous £6.5 million...
MiFID II compliance function consultation published
ESMA is consulting on draft guidelines regarding the compliance function under MiFID. The proposals build on the existing 2012 guidelines by, among other aspects, addressing the changes MiFID II made to the compliance...
ESMA warns CFD providers on undesirable practices
ESMA is still concerned about firms that market, distribute or sell CFDs to retail clients. It has now published a warning to them, saying it is particularly worried about: encouraging retail clients to ask to opt up to...
FCA updates on SMCR final rules
FCA has still not made its final rules on the SMCR. It cannot do so until Treasury has published the necessary commencement order. FCA says it has been working with Treasury on this, and has agreed with it a later...
FCA publishes annual report
FCA’s Annual Report and Accounts for 2018/19 lists its highlights from the past year, and appends several reports from specific business focuses. FCA notes that alongside deciding over 4,000 applications for...
Irish regulator fines bank for CRD IV failings
The Irish Central Bank has imposed a €5.9 million fine on Wells Fargo Bank International Unlimited Company for breaches of regulatory reporting and governance requirements under CRD IV, as implemented in Ireland. The...
EBA reports on POG guidance implementation
EBA has reported on how industry has implemented its Product Oversight and Governance arrangements guidelines. It found a mix of good and bad practices. Some of its criticisms were that: often the manufacturer’s...
FCA updates SMCR page
FCA has reminded solo-regulated firms that if they want to opt up to the Enhanced firm category, they must submit their Form K (which all Core and Enhanced firms must submit anyway) together with their Form O, by 24...
FCA confirms market code recognition
FCA has confirmed it is recognising the FX Global Code and the UK Money Markets Code. These are the first codes to be recognised under its new scheme. While FCA will not supervise firms or individuals directly against...
Bank fined £45.5 million for failure to share suspicions of fraud with FCA
The FCA has announced that Bank of Scotland has been fined £45,500,000 (reduced by 30% from what would have been a £65 million fine) for its failures to be open and cooperative with the regulator and thereby breaching...
CMA updates on loyalty penalty work
CMA has updated on its work on the loyalty penalty. It says key decisions are due shortly and that two enforcement cases are underway. It says it expects regulators to take strong action where they find problems and...
FCA consults on financial resources
FCA is consulting on the approach it takes to assessing adequate financial resources – and what it means by the term. The paper has been prompted by the levels of compensation FSCS has paid out relating to firms...
FCA consults on Gibraltar and SMCR Handbook changes
FCA’s latest quarterly consultation: proposes changes that will essentially apply the current rules for Gibraltar firms past October in the event of a hard Brexit. The status quo on rule application and fees will...
FCA tells CMCs what it expects
FCA has written a Dear CEO letter to CMCs who have temporary permissions telling them how it expects them to behave then making financial promotions or acting for their customers. There has been an increase in cases...
FCA Publish Final Rules on Loan-based and Investment-based Crowdfunding Platforms
On 4th June 2019, the FCA published its feedback to CP18/20 and its final rules on loan-based and investment-based crowdfunding platforms in Policy Statement PS19/14. The changes largely match the proposals within the...
Employer can rely on Tribunal view in F&P assessment
An article in our Employment Briefing highlights the case of Radia v Jefferies International Limited. Jefferies had relied on findings from the Employment Tribunal that an individual’s evidence in respect of a...
PRA and FCA impose £1.89m fine for outsourcing failures
The PRA and FCA have imposed a joint fine on Raphaels Bank following an investigation in to the cause and consequence of an IT incident in December 2015. The incident occurred by a failure of services provided by a sub...
FCA publishes asset management competition breach case study
FCA has published its decisions against 3 asset management firms that breached competition law. FIN reported on the breaches in February. The decisions are accompanied by a case study, which explains what the firms...
Fund umbrella providers come under fire
FCA has published the results of its review into how firms in the investment management sector that have Appointed Representatives comply with their regulatory obligations as principals. There are over 1000 ARs in the...
ECJ judgment means TUPE may apply on transfer of clients’ investments
In Dodič v Banka Koper and another C-194/18, the European Court of Justice (ECJ) had to decide whether the Acquired Rights Directive (ARD) applied where a stock market intermediary stopped providing services and gave...
BoE speaks on “stylish regulation”
Sam Woods has spoken on how UK financial regulation might look post-Brexit. He looked at the 6 principles of an effective regulatory framework and how the SMCR model of legislation can deliver them. robust prudential...
Inside FCA Podcast: Andrew Bailey on the Business Plan and future of regulation
On 14th May 2019, the FCA published a podcast interview with Andrew Bailey on the FCA’s Business Plan and future of regulation. Key topics can be summarised as follows:- Brexit – Brexit has affected the...
Treasury committee report on access to financial services
On 13 May 2019, the Treasury Committee published its 29th report on consumers’ access to financial services. The report urges financial services providers, the Government, and financial regulators to ensure...
FCA publishes undertaking on unfair contract term
On 9th May, the FCA published an undertaking by James Brearley & Sons Limited in relation to a term in their Services Terms and Conditions which allowed them to terminate their contract with their customers without...
FCA objects to Complaints Commissioner decision on inaccurate register entry
The Complaints Commissioner has told FCA to pay compensation to a consumer who lost money after investing with what they believed to the be UK operation of an Austrian firm but was in fact fraudsters who had cloned the...
FCA starts intergenerational finance debate
FCA has published a discussion paper on intergenerational differences, looking at the changing needs of financial services consumers depending on their age. It feels the time is right to reassess pre-conceptions about...
FCA calls for input on FAMR and RDR
FCA has called for feedback on its planned approach to reviewing the RDR and FAMR. The purpose of the review is to find out whether the two initiatives have succeeded in their objectives, focussing on what consumers...
FCA confirms miscellaneous new rules
FCA’s latest Handbook Notice confirms the following rule changes: to COBS 22 in relation to introducing a ban on selling, marketing and distributing binary options to retail customers, which already took effect...
Andrew Bailey looks at the future of financial conduct regulation
On 23rd April, Andrew Bailey, Chief Executive of the FCA, released a statement on the future of financial conduct regulation. He used a four lens approach when looking at conduct regulation. These can be summarised as:...
FIN. TeamFCA publishes enforcement and supervision ‘Approach’ documents
Following consultations in March 2018, the FCA has published its ‘Approach to Supervision‘ and ‘Approach to Enforcement‘ papers. The Supervision paper describes the FCA’s role in promoting...
FCA publishes PFOF findings
FCA has published an update to its Market Watch item on payment for order flow. It has now carried out a review of 15 firms, to check how they monitor compliance with FCA requirements around conflicts, inducements and...
FCA prioritises culture, customers and crime prevention
FCA’s Business Plan for 2019/2020 holds few surprises. It highlights 4 ongoing cross-sector priorities and three additional longer-term priorities. FCA will focus on: culture and governance, not least in SMCR...
FCA publish feedback statement on duty of care
On 23rd April, the FCA published Feedback Statement FS19/2 on its summary of responses and next steps in relation to a duty of care and potential alternative approaches. The statement will be followed up by a further...
Wholesale brokers ignore Dear CEO letter at their peril
FCA has written a Dear CEO letter to wholesale brokers setting out its thoughts on the key harms the sector poses. The letter explains that MiFID 2 and MAR have significantly raised expectations on market participants...
Complaint levels fall
FCA’s data for complaints against regulated firms for H2 2018 show that complaints decreased by 5%, with PPI complaints falling by 8% – although PPI still accounted for 40% of all complaints. In part this...
Policy and Supervisory Statements on climate change financial risks published
The PRA has published PS11/19 and SS3/19 on ‘Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change’. These statements are intended to steer firms towards...
PSR ADOPTS SMR PRINCIPLES
As a wholly owned subsidiary of the FCA, the Payment Systems Regulator (PSR) has announced that it is adopting and applying the same core principles of the Senior Managers Regime as the FCA. A formal description of the...
FCA makes new rules
FCA’s latest handbook notice outlines all the rules adopted by FCA in its February and March Board meetings, including some not reported on in other FIN items. It includes a fill its of all the Brexit instruments...
FCA finalises CMC SMCR rules
FCA has published its policy statement and final rules explaining how it will apply the SMCR to CMCs. In the main, it has confirmed the rules it proposed, with a few adjustments following consultation. The key elements...
FCA publishes final no-deal Brexit rules
Perhaps in anticipation of what would follow later in the day, FCA published its final instruments and guidance that would apply in the event of a no-deal, no-implementation period Brexit, on the morning of 29 March...
HM TREASURY PUBLISHES FINDINGS ON FSA SUPERVISION OF CO-OP BANK PLC
HM Treasury has published the findings of an independent review into the prudential supervision of the Co-Operative Bank between 2008 – 2013. The findings of the report were balanced, but did identify possible...
Will SMCR hold up pension transfers?
Pension scheme members wishing to transfer their benefits from a defined benefit (DB) to a defined contribution (DC) pension arrangement have to take financial advice and trustees of DB schemes are required to check...
Gavin EllisonFOS letter to Treasury Committee on reasonable adjustments under the Equality Act
On 26th March 2019, the House of Commons Treasury Committee published a letter from Caroline Wayman (FOS Chief Ombudsman and Chief Executive) to Nicky Morgan (Committee Chair) setting out the requirements to make...
FCA looks at life beyond Brexit
In a speech on Brexit delivered by Nausicaa Delfas, Executive Director of International, the FCA reminded firms that the deadline for notifications under the temporary permissions regime is 28 March 2019. Firms that...
Europe reaches political agreement on reforms to EU supervision
The European Parliament and Member States have reached agreement on core elements of the reform of European supervision of financial markets, including strengthening the supervisory framework in the area of anti-money...
EBA agrees form of MoU between European and UK supervisors
As part of the no-deal Brexit preparations, the Board of Supervisors of the EBA have confirmed that a template MoU has been agreed with the FCA and PRA. If there is a no-deal Brexit, this template will be used as the...
FCA imposes £27.6 million fine for transaction reporting failures
The FCA has fined UBS AG for transaction reporting failures during the period November 2007 to May 2017. The FCA reported that a total of 135.8 million errors in reporting were made during this period. It queried...
FCA finalises guidance on SoRs and responsibilities maps
FCA has published its finalised guidance to help firms prepare their statements of responsibility and responsibilities maps under the SMCR. The guidance addresses the rules as they apply to each category of SMCR firm...
FCA makes Directory rules
FCA has made its final rules on its “Directory“. The new public register will enable searches on all directors and senior managers, certification staff and other individuals who require qualifications to...
BoE and FCA update on Brexit approach
BoE and FCA have updated their respective websites with coordinated information on their approach to a hard Brexit. BoE has published a series of materials setting out its updated plans to its supervisory approach to a...
Paper published on supervision of insurers’ corporate guidance
The International Association of Insurance Supervisors has published an Application Paper on Proactive Supervision of Corporate Governance. The paper sets out principles and practices to support supervisors in their...
FCA announces London and Edinburgh Brexit briefings
FCA has announced briefings in the second week of March in both London and Edinburgh to help regulated firms prepare for Brexit. Firms can register to attend or view the live webcast.
Sign up to our repeat SMCR workshop
We are delighted to be hosting a re-run of our sell-out half day workshop on the SMCR for solo-regulated firms. This Compliance Register seminar, at which Emma Radmore, Roseyna Jahangir and Michelle Chance will speak...
FCA posts video for SMCR help
FCA has arranged for a video to be made by firms that have already implemented the SMCR, sharing their experiences of adopting it. Contributors share the stories from Virgin Monday, HSBC, State Street and JP Morgan.
ESMA briefs on non-EU branches
ESMA has published a supervisory briefing aimed at helping supervisors dealing with non-EU branches of EU firms. It highlights how the supervisors should ensure that the non-EU branch can comply with the requirements of...
ESMA creates Brexit page
ESMA has created a new web-page on Brexit, setting out how it is preparing for it. Its latest agreement is a MoU with BoE for recognition of CCPs and the Central Securities Depository. It aims to recognise all UK CCPs...
BSB consults on regulatory references good practice
The Banking Standards Board is consulting on draft good practice guidance on regulatory references. The guidance will be all the more important later this year when the SMCR extends the regulatory references...
SMCR optimisation consultation
As the FCA prepares for the extension of SMCR to most solo-regulated firms next December, it is consulting on a few areas regarding the existing regime for banks and large insurers previously identified as wanting...
Brexit and Immigration Law seminar series
One of the most fundamental ways in which Brexit is likely to affect many businesses, is the impact on immigration law. This is particularly the case for the financial services and insurance sectors, which have long...
EIOPA publishes Opinion on supervision of cross-border non-life insurance
EIOPA has published an Opinion on the supervision of cross-border non-life insurance where the risk is of a long term nature. In the Opinion, EIOPA notes that this type of insurance is often more uncertain than the...
FCA updates on diversity
In a speech by Christopher Woolard, FCA has called on firms to increase their efforts to integrate diversity and inclusion principles in their business frameworks. While things are moving in the right direction, Mr...
Bank of England and PRA consult on resolvability measures
The BoE and the PRA have published consultation papers on resolvability and resolution assessments for certain firms. PRA CP31/18 sets out proposed rules that would require relevant firms to report to the PRA on their...
New Corporate Governance Principles published
The Financial Reporting Council has published the final version of new Corporate Governance Principles for large private companies.
We have published an article that summarises and discusses these Principles.
Suzanne GadoFCA updates on preparing for Brexit
FCA has added a page to its website updating firms on what they could and should be doing to prepare for Brexit. The page is for use by UK and EEA firms and takes them through each various practicality they should...
FCA updates SMCR forms
FCA has updated its website to show the forms that now apply to insurers, who have become subject to the SMCR from 10 December.
Treasury announces more details on its approach to onshoring financial services legislation
On 22 November 2018, Treasury announced it was developing a draft SI for MAR. It proposes that the SI will address: the scope of the regulation; transaction reporting; notification requirements; transfer of functions;...
FCA consults further on Brexit approach
FCA has published additional proposals on how it will deal with a hard Brexit. The consultation focuses on: more changes to the Temporary Permissions regime; reflecting the new Credit Rating Agency and Trade Repository...
FCA reviews whistleblowing arrangements
FCA has published its review of how firms implement FCA whistleblowing rules. Its review covered a range of wholesale and retail banks. It found several areas of both good and poor practice to comment on, and now urges...
PRA confirms SMCR insurance extension rules
PRA has published a policy statement to its second consultation on extending the SMCR to insurers. Following FCA’s finalisation of its rules on the extension, PRA now confirms it had no responses to its...
PRA updates approach documents
PRA has updated its “approach” documents in relation to banking and insurance supervision. Key changes to the previous versions include: an update on the changes to supervisory approach following...
PRA publishes extension of SM&CR to insurers policy statement
On 18 October 2018, the PRA published responses to its consultation paper (CP) 18/18 ‘Strengthening accountability: implementing the extension of the SM&CR to insurers’. The policy statement (PS) 26/18...
FCA consults on Statements of Responsibilities and Responsibilities Map guidance
The FCA has published a consultation on proposed guidance to help solo-regulated firms draft their Statements of Responsibilities (SoR) and (for enhanced firms) Responsibilities Maps, in preparation for the SMCR...
FCA makes new rules
FCA has made three new rules instruments at its September board meetings: the Individual Accountability (Dual-Regulated Firms) Instrument 2018: this instrument makes significant changes to SYSC as well as to COCON...
Second consultation on extending SM&CR to insurers
The PRA has published the second part of its consultation on the extension of SM&CR to insurers. These proposed amendment to its rules consist of ‘technical consequential changes’ and ‘minor...
Treasury makes SMCR extension Regulations
Treasury has made the Regulations extending the SMCR to insurers. The Regulations bring into force certain provisions of the Bank of England and Financial Services Act 2016 from 13 September to enable the making of the...
Extension of SM&CR to insurers: PRA consults on implementation
The PRA is consulting on proposed changes to its Rulebook, to provide for: a technical correction to the Solvency II firms: Insurance General Application Part; and consequential changes and minor administrative...
FCA updated guidance for firms outsourcing IT
The FCA has updated FG 16/5, ‘Guidance for firms outsourcing to the ‘cloud’ and other third party IT services’. This update takes account of the publication of the European Banking...
FCA publishes intervention approach documents
On a new page on its website, ‘Measuring our impact before we intervene‘, the FCA has published a group of documents that aim to provide an indication of how the FCA assesses the likely impact of its...
FCA publishes Annual Report
FCA has published its Annual Report and Accounts for 2017/18. The report includes details of: FCA’s work preparing for Brexit; key regulatory changes such as MiFID 2 and PSD 2; work on SMCR extension; thematic...
FCA and PSR Chair discusses potential future algocracy
Charles Randell, the recently appointed Chair of the FCA and the PSR, has delivered a speech, in which he discussed the increasing dominance of algorithms in our day to day lives, and noted some of the consequent issues...
Changes in terminology. PRA updates its Supervisory Statements
The PRA updated a number of its Supervisory Statements (SSs) on 4 July 2018 to reflect changes in terminology, following the publication of policy statement 15/18 “Strengthening individual accountability in...
PRA publishes policy statement on extension of the SM&CR to insurers
On 4 July 2018, the PRA published policy statement (PS)15/18 in response to Consultation Paper (CP) 14/17 ‘Strengthening individual accountability in insurance: extension of the Senior Managers and Certification...
FCA feeds back on SMCR extension
FCA has published a suite of papers feeding back on the SMCR extension, and has proposed the creation of a new directory of individuals working in financial services to enable their status and history to be checked. The...
Treasury Committee calls for abolition of “alpha male” culture in finance
The Treasury Committee has published its report following its Women in Finance inquiry, which sought to identify the barriers to women entering and progressing in the financial services industry. It also examined the...
Book now: SMCR seminar
We are delighted to speak at and host a half day seminar on 2 October with the Compliance Register on the extension to the SMCR. For details and to book, please contact the Compliance Register.
Treasury Committee engages with FCA over TSB IT migration
Nicky Morgan and Andrew Bailey have exchanged letters of the problems customers faced following TSB’s IT migration. The Treasury Committee had asked about the work FCA had done in advance of the planned migration...