The FCA has published an event summary describing output from a conference it held in March on Transforming Culture. Following the conference, and the publication of its Discussion Paper on Transforming Culture in...
Category - Conduct
Emma RadmoreRegulators fine Barclays CEO for breach of SMR requirements
PRA and FCA have published the first final notice for breach of an Individual Conduct Rule. They have jointly fined James (Jes) Staley £642,430 for breach of Individual Conduct Rule 2 (failure to act with due skill...
Emma RadmoreFCA publishes second 5 Conduct Questions report
The FCA has published its second annual report setting out responses from wholesale banking firms to the FCA’s conduct question set. The FCA notes that the second report indicates progress has been made from the...
FCA and PRA publish business plans
The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an...
FCA publishes package of asset management remedies
FCA has released several documents resulting from its asset management market study. The key documents are: final rules focussing on the duties of fund managers as agents of the fund investors. The changes will require...
FCA sets out supervision and enforcement approach
FCA has published a draft of its approach to enforcement and supervision. The documents follow its publication of its Mission, in which it committed to publishing a series of documents setting out how it carries out its...
Andrew Bailey speaks on transforming culture in financial services
The FCA has published a speech by Andrew Bailey, FCA Chief Executive, on transforming culture in financial services. Mr Bailey highlights the following issues: work on firm culture is an important priority for the FCA;...
FIN. TeamFCA speaks on affordability
Jonathan Davidson has spoken on getting affordability right in consumer credit. He said that as the UK consumer credit sector is growing, so are concerns about excessive debt. FCA does not consider the sector has yet...
BSB publishes annual review
The Banking Standards Board has published its annual review. Its key point is that, last year, it carried out the largest ever survey of behaviours, competence and culture in UK banking. It noted that the scores to its...
FCA outlines approach to authorisation
Sarah Rapson has spoken of FCA’s approach to authorising firms. She focused on FCA’s use of authorisation as a way to prevent harm, and its focus on using it proportionately. As a result, the information it...
FCA looks back on past 5 years
John Griffith-Jones has reflected on FCA’s first 5 years of operation, since it took over from the FSA. He outlined: highlights – specifying FCA’s engagement with pension exit charges, general...
FCA Discussion Paper on transforming culture in financial services
As part of its ongoing work on culture and governance, the FCA has published a discussion paper, comprising a series of essays from academics and industry thought leaders covering: what a ‘good’ culture...
FSB publishes final version of supplementary guidance on sound compensation practices
The Financial Stability Board (FSB) has published the final version of its Supplementary Guidance to the FSB Principles and Standards on Sound Compensation Practices. It consulted upon this guidance in June 2017, as...
FCA updates on product governance
FCA has provided an update on its work on product governance in small and medium sized retail banks. Its recent review looked at 2 year fixed rate savings products and how firms’ product governance frameworks...
FCA Statement on proposals to introduce a public register
The FCA has published a statement announcing that it will consult on proposals to make information available on a wider range of individuals at authorised firms. Under the FCA’s proposals to extend the Senior...
BSB publishes fit and proper guidance
The Banking Standards Board has published some supporting guidance to its principles on fitness and propriety assessments. It focuses on helping firms identify and deal with the risks and issues that may arise when...
FCA updates on service standards
FCA’s new-look update on its service standards shows that it met most of its targets for various regulatory tasks, including authorisations, passport notifications, dealing with queries and customer satisfaction...
FCA explains perimeter to Treasury Committee
Andrew Bailey has written to the Treasury Select Committee setting out a summary of the powers “FCA does not have”. It has been asked many questions in the context of the RBS GRG investigation. The letter...
PRA publishes policy statement on strengthening individual accountability in insurance
PRA has published a policy statement on strengthening individual accountability in insurance: optimisations to the SIMR. The policy statement follows on from an ealier consultation (CP8/17) and includes: feedback on the...
FCA sends “Dear CEO” letter on APP fraud
FCA has published a “Dear CEO” letter emphasising the work required to combat authorised push payment (APP) fraud. This follows the Which? super-complaint in September 2017, and the Payment Systems...
Memorandum of Understanding between the FRC and FCA
The Financial Reporting Council (FRC) and Financial Conduct Authority (FCA) have published a Memorandum of Understanding (MOU) setting out: the respective statutory regulatory responsibilities of the FRC and FCA; the...
Law Commission to address electronic signatures and smart contracts in 13th Programme of Law Reform
The Law Commission has announced the programme of reforms it will be working on over the next 3 years. The projects include: Electronic signatures: there is an absence of explicit case law or legislation confirming...
Regulators update on SMCR
FCA is consulting on how firms and individuals will manage the transition to the extended SMCR. Its key proposal is to grandfather persons from the existing approved persons regime, so that firms can focus on embedding...
FCA sets out future approach to authorisation and competition
FCA has outlined its approach to authorisation and to competition. It notes it is one of the few financial regulators in the world with an objective that includes promoting competition. It wants to understand, in...
FCA feeds back on FAMR
FCA has published a policy statement on its consultation on FAMR and insistent clients. Respondents were generally supportive of FCA’s proposed PERG guidance and also asked for more guidance in some areas. FCA...
FCA makes new rules
At FCA’s Board meeting on & December, it made several new rule instruments, covering (among other things), several changes to take effect from 3 January 2018: minor changes relating to MiFID 2 implementation...
FCA consults on market conduct codes
FCA has published a consultation paper setting out its approach to supervising and enforcing the SMCR, and a wider discussion on extending Principle 5 (standards of market conduct) to the unregulated activities of...
PRA publishes framework for authorisation and supervision of insurance special purpose vehicles
Following a period of consultation, PRA has published a policy statement and supervisory statement that are relevant to all parties who wish to apply to PRA for, or have obtained authorisation as, an insurance special...
Bond Dickinson financial services team ranked in Legal 500
The Bond Dickinson financial services team is delighted to have achieved a Legal 500 ranking. The new directory described the team as providing ‘responsive, practical, commercial and cost-effective’ advice to a wide...
PRA comments on “Geofinance”
Sam Woods, speaking at Mansion House, commented on what he predicts to be an increasingly prevailing dynamic in financial institutions and financial regulation. Geofinance is the impact of geography on how banks...
What does SMCR extension mean for you?
We have written an article summarising the key elements of the proposed SMCR extension.
PRA updates SMR forms
PRA has updated its forms firms must submit under the SMR. From 12 November, firms must use the following new forms:
Long and Short Form As
Form E
Statement of Responsibilities
Third Country Statement of Responsibilities
FCA speaks on asset management regulation
Meghan Butler has spoken on how FCA is clarifying its supervisory approach to asset managers. She looked at FCA’s mission and its recognition of the importance of the asset management industry. She spoke of the...
Failure to prevent facilitation of tax evasion
The new corporate offence under the Criminal Finances Act trips off the tongue! It takes effect from 30 September, and “relevant bodies” must have considered their exposure to it and put in place reasonable...
FCA speaks on SMR extension
Jonathan Davidson has spoken on culture and conduct in the context of FCA’s proposals to extend the SMR. Key points of his speech included: that business models often create commercial incentives for behaviours...
BOE releases consultation on extension of SM&CR to insurers
Today the PRA has published proposals to extend the Senior Managers and Certification Regime (SM&CR) to insurers. These proposals seek to implement a consistent but proportionate regulatory framework to...
FCA releases details of consultations on the extension of SM&CR to all firms
The long-awaited consultations on the extension of the SM&CR have been released: CP17/25 – Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms. Banks are...
FCA makes new rules
At FCA’s July Board meeting it made several new rulebook instruments. Key changes are: to make minor changes to approved persons application forms with effect from 12 September; to set the fees payable to the PSR...
Banking Standards Board consults on certification risks and issues
The Banking Standards Board is consulting on guidance that will help firms identify and deal with risks and issues that arise when they are assessing fitness and propriety under the SMCR. The draft guidance covers:...
FCA publishes annual report
FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s...
Treasury makes MiFID 2 Regulations
Treasury has made the FSMA (Markets in Financial Instruments) Regulations 2017 which make changes to FSMA and other primary and secondary legislation to make the legislative amendments necessary to implement MiFID 2...
PRA consults on SMR/SIMR changes
PRA has published a consultation paper proposing changes to both the SMR and SIMR, but focuses predominantly on the SIMR, introducing what PRA describes as “optimisations”. The proposed changes will apply to...
BoE speaks on operational resilience
Charlotte Gerken has spoken of the BoE’s approach to operational resilience. She focussed on how it is developing its approach in co-operation with firms and other regulators. BoE’s aim is to improve the...
ABI speaks on UK insurance industry
The ABI has spoken on the opportunities regulation can offer for the industry, which are getting wider – for example, willingness of the industry to see the competition regulator becoming involved in their markets...
PRA updates policy statements on accountability regimes
Following feedback received on Consultation Paper 34/16, PRA has published its policy statement on strengthening individual accountability in banking and insurance: amendments and optimisations. The updates in the...
Up next from FCA
FCA’s latest Policy Development Newsletter promises only a policy statement on enhancing COB rules for firms providing CFDs to retail clients following before the end of June. Many other papers are due later in...
FCA updates on duty of responsibility
FCA has published guidance in DEPP on how it will enforce the duty of responsibility. The guidance is already in force, applying from 3 May. It applies to UK banks, building societies, credit unions, PRA-designated...
FCA makes whistleblowing rules for foreign bank branches
FCA has made its final rules on whistleblowing requirements for UK branches of foreign banks. The rules cover UK branches of both EEA and third-country banks and require them to implement whistleblowing rules by 7...
FCA makes CRD IV remuneration guidance
FCA has made its final rules and guidance on remuneration in CRD IV firms, which it has aligned to EBA guidelines. The changes take effect immediately, since the EBA guidelines came into force at the beginning of 2017...
FCA makes conduct rules for NEDs
FCA has made its new rules applying individual conduct rules to NEDs in the banking and insurance sectors. The new rules, which take effect on 3 July, apply the provisions of COCON to “standard” NEDs in the...
PRA makes MiFID 2 rules and opens for notifications
PRA has published its policy statement with relevant supervisory statements and rule changes in relation to MiFID 2 implementation. The changes: introduce new PRA rules to implement the MiFID 2 requirements on the...
PRA makes branch whistleblowing rules
PRA has made policy statements and rules requiring UK branches of non-EEA banks and insurers to tell their staff about the PRA and FCA’s whistleblowing services. Any non-EEA bank that has both a branch and a...
FCA publishes Mission Statement and Business Plan
FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA...
FCA updates on conduct risk priorities
FCA has published a series of new webpages following its annual conduct meetings with the largest firms in the regulated community. It asks the largest wholesale banks the following 5 conduct questions: What proactive...
FCA speaks on the next phase of Project Innovate
On 10 April 2017, Christopher Woolard, the FCA’s Executive Director of Strategy and Competition delivered a speech at the Innovate Finance Global Summit in London. The speech considers the work of the FCA’s...
FCA publishes discussion paper on distributed ledger technology
The FCA has published a discussion paper on distributed ledger technology (DLT). The discussion paper describes DLT and acknowledges blockchain as a type of DLT. The FCA invites a discussion on two sets of issues: What...
HMT issues regulatory innovation plan
The government’s vision is for UK financial services to be the most competitive and innovative in the world, supplementing existing services with greater choice and value for consumers. The innovation plan covers how...
FCA speaks on corporate misconduct and individual accountability
Mark Steward, FCA Director of Enforcement and Market Oversight, has spoken on tackling conduct issues and individual and corporate accountability. He gave examples of where parties to investigations had strongly felt a...
pra publishes march regulatory digest
The March Regulatory Digest has been published by the PRA. Top news covered this month: insurance supervision at the PRA – speech by Sam Woods and report by the Independent Evaluation Office (IEO) consultation on its...
FCA fines former investment banker for sharing confidential information over WhatsApp
The former Jeffries International banker (managing director (CF30)) received a 30% reduction to his penalty, still amounting to a hefty £37,198 fine. On a number of occasions between 24 January 2016 and 16 May 2016, Mr...
PRA Chief Executive Officer delivers speech on insurance supervision
On 20 March 2017, Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA delivered a speech on insurance supervision at the PRA. Mr Woods commented that a precondition to the success...
BoE speaks on ethics and culture in banking
Mark Carney has spoken on the work to improve the culture of the banking industry. He commented that the banking industry has suffered twin crises of solvency and legitimacy. The solvency problems are being addressed by...
FCA speaks on culture
Andrew Bailey has given a speech at the Hong Kong Monetary Authority (HKMA) Annual Conference for Independent Non-Executive Directors in Hong Kong. He spoke about the culture in financial institutions, setting out what...
BSB report shows areas for improvement
The Banking Standards Board’s first annual review has found some good practices across the banking industry, but also several areas that need improvement. Firms generally still need to work on responsiveness...
FCA heralds SMR 1 year on
FCA has noted the anniversary of the SMR taking effect, as the rules on regulatory references now come into force. Firms also had to have issued certificates for all staff who fall within the certification regime, and...
BSB publishes certification guidance
The Banking Standards Board (BSB) has published good practice guidance for banks and building societies putting in place procedures to assess the fitness and propriety of staff under the Certification Regime. This takes...
FCA to consult on SMR extension
FCA is to consult on the extension of the SMR to all authorised firms during the second quarter of 2017.
FCA invites views on website
If you, like us, have views on FCA’s recently revamped website, you have a chance to let FCA know. It has invited views, in an online survey.
PRA fines BTMU firms for failure to be open with it
PRA has fined the Bank of Tokyo-Mitsubishi UFJ Limited £17.95m and MUFJ Securities EMEA plc £8.925m. The fine relates to a failure of the firms to be open and honest with PRA in respect of a US enforcement action, in...
FCA publishes Regulation Round-up
FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim...
FCA speaks on responsibility and priorities
Mark Steward, Director of Enforcement and Market Oversight at FCA, spoke at the Practising Law Institute’s annual seminar on securities regulation in Europe. His speech was headlined as looking at the practical...
AFME responds on whistleblowing
AFME (The Association for Financial Markets in Europe) has published its response to the FCA and PRA consultation papers on whistleblowing in UK branches of overseas banks. The FCA and PRA propose that UK branches of...
FCA’s Future Mission: key themes from feedback
FCA has published initial feedback from the consultation process into its proposed mission statement. Key themes include: a desire for a clearer rationale for FCA decisions, and what FCA chooses to do and not to do;...
ESMA publishes MAR FAQs
ESMA has published an updated questions and answers document on MAR. New questions cover whether transactions should be aggregated for the purpose of the trigger for the notification obligation for PDMRs and their...
Article: FinTech firms navigate regulatory uncertainty
Current laws and regulations weren’t designed with FinTech or InsurTech in mind, so startups must – on top of their business proposition – implement appropriate compliance procedures and grapple with legal uncertainties...
FCA makes it crystal clear that 2016/2017 Remuneration must be directly linked to Effective Risk Management
The FCA will crack down hard on firms which incentivise behaviours that are not in the best interests of consumers, market integrity or fair competition and will look closely at Material Risk Takers, bonus pools and...
PRA consults further on MiFID 2
PRA has published its second consultation paper on changes it needs to make to its rules as a result of MiFID 2. This paper focuses on the changes needed to take account of the requirements in the MiFID 2 Delegated...
PRA consults on cyber insurance underwriting risk
PRA is consulting on a proposed new supervisory statement that sets out how it expects all Solvency 2 firms to prudently manage cyber underwriting risk. PRA carried out thematic work which highlighted a number of risks...
PRA and FCA make regulatory references rules
PRA and FCA have published the final text of the rules applicable to banks, Solvency 2 insurers and PRA-regulated investment firms when they provide regulatory references for key positions. The rules will apply from 7...
PRA and FCA final rules on regulatory references
Following a period of joint consultation, the PRA and FCA have recently published policy statements setting out the final rules on regulatory references. The final rules will come into force on 7 March 2017 and will...
PRA and FCA feed back on accountability
PRA and FCA have published several papers on the SMR, SIMR and accountability standards. FCA’s supervisory review of the SMR highlights its views that firms have, in general, engaged well. It gives detailed...
FCA plans to ban Barclays Wealth director
FCA has published its decision notice proposing a public censure and ban on Andrew Tinney, former COO of Barclays Wealth and Investment Management. FCA found Mr Tinney had taken steps to conceal the content and...