Emma RadmoreThe FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
Category - SMCR & Governance
FIN. TeamUK Finance responds on D&I
UK Finance has published its responses to the PRA and FCA papers on D&I in the financial sector. Key points in its response include: that the regulatory approach in terms of transparency and accountability should...
FCA updates guidance on consumer investment firm applications
FCA has created a new page on its website aimed at consumer investment firms applying for authorisation. The page: explains what FCA means by a consumer investment firm; explains the threshold conditions and process for...
Treasury responds on Edinburgh Reforms progress
Treasury has responded to a request from the Treasury Committee for an update on delivering the Edinburgh Reforms. It notes: reform of the ring-fencing regime: this is in progress with draft legislation being published...
ABI urges insurers not to get left behind on DEI
ABI has published an update on progress against its three priorities of Attract, Grow and Advance set out in its DEI blueprint published this time last year. It has seen an increase in firms that now collect data on...
PRA publishes Occasional Consultation
PRA’s latest Occasional Consultation consults on: changes to the Depositor Protection Part of the PRA Rulebook to make it easier for the FSCS to make electronic payments to eligible depositors of insolvent deposit...
FCA notifies of changed Form A
As part of FCA’s overall update of authorisation application forms it is now formally launching Form A and has started contacting firms to tell them how they can access it to take part in public testing. It plans...
PRA to run dynamic insurance stress test in 2025
PRA has announced a change in approach for its 2025 insurance stress tests. The objectives of the exercise will, as ever, be to assess solvency, liquidity and risk management against specific adverse scenarios, but in...
FCA updates on insurance market priorities
FCA has published a suite of portfolio letters for the insurance markets, off the back of its value measures data report, but covering its wider supervisory priorities. The letters note the importance of the insurance...
FCA consults on MIPRU PII clarifications
FCA’s latest quarterly consultation paper includes a proposal to clarify a potential conflict between the requirements in MIPRU 3.2.1R that require a firm to take out and maintain continuous PII what must include...
FCA publishes authorisations metrics Q1 2023/24
FCA has published its authorisations metrics for the quarter ended June 2023. FCA currently has: 2 red categories, relating to authorisations of EMIs and PIs 6 amber categories, relating to SMCR and AR related approved...
Laura WilesPRA fines Credit Suisse record £87m for risk management and governance failures
PRA has imposed a record fine of £87m on Credit Suisse for serious risk management and governance failures between 1 January 2020 and 31 March 2021 in connection with its exposures to Archegos Capital Management. This...
PRA publishes authorisations performance report
PRA’s report on its authorisations performance during Q1 2023/24 shows delays in applications for new authorisations – although these are based only 5 cases during the period, PRA achieved its standard in 4...
FCA speaks on cultural evolution
Emily Shepperd of FCA spoke on how culture needs to change to meet expectations. She focussed on how generational changes can fundamentally change culture. She said it is now critical to find a common path, for leaders...
BoE publishes policy statement on model risk management principles for banks
The Prudential Regulation Authority (PRA) has published a policy statement on its model risk management principles for banks (the Principles) following an earlier consultation paper (CP6/22) on the same subject. The PRA...
Duncan ScottPRA publishes policy statement on SMCR form changes
Following its January 2023 consultation, PRA has published a policy statement setting out changes to the SMCR forms in its Rulebook. In particular, PRA will: Amend the Senior Managers Regime – Applications and...
Treasury and regulators consult on SMCR
Treasury has published a call for evidence and PRA and FCA have published a discussion paper on the effectiveness of the SMCR. The papers, which result from the announcement of the Edinburgh Reform package, seek views...
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...
FCA continues Consumer Duty preparation support
FCA has published a further set of portfolio “Dear CEO” letters aimed at helping firms to prepare for the final push towards Consumer Duty implementation. Its latest series of letters cover: motor finance...
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...
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...
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...
“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 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 RadmorePRA 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...
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...
Lucy HadrillFCA 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 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.
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 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...
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...
Ben DuxburyFCA publishes thematic review on wind-down planning
FCA has published its thematic review looking at wind-down planning across different business models, with a focus on liquidity needs during wind-down, intra-group dependencies and wind-down triggers. It has reiterated...
FCA fines asset manager and former investment director
FCA has fined GAM International Management Limited £9m, and its former Investment Director and Business Unit Head Timothy Haywood £230,000 following failure to conduct business with due care and attention, and failure...
Regulators remind firms of crypto risks
PRA and FCA have written to firms reminding them of their obligations when interacting with or exposed to crypto-assets and related services. FCA reminds firms that crypto can offer benefits but also increased risk to...
Treasury and FCA discuss regulatory perimeter
The government has published a summary of the 15 December 2021 meeting between John Glen and Nikhil Rathi in which they discussed FCA’s Perimeter Report (published 21 October 2021). The meeting focussed the topics...
UK Finance publishes response on Consumer Duty
UK Finance has published its response to the FCA’s second consultation on proposals for a new Consumer Duty. UK Finance welcomes the changes FCA has made since its first consultation (in particular dropping the...
FCA publishes guidance on competency and capability
The FCA has added a webpage to its website explaining the competency and capability requirements of heads of compliance and MLROs as SMF holders under the SMCR regime. The FCA notes that firms should carefully consider...
Emma BondFCA updates on skilled persons reviews
FCA has published the figures for the skilled persons reviews commissioned in October – December 2021. There were 12 in total, of which 4 were on retail banking and payments firms and 3 on investment management...
BoE publishes inventory of senior manager responsibilities
The Bank of England (BoE) has published an inventory of senior manager responsibilities. This publication follows feedback on the BoE’s ‘Evaluation of the Senior Managers and Certification Regime...
FCA and PRA publish dear CEO letter to global equity finance businesses
The PRA and FCA have jointly published a Dear CEO letter regarding the supervisory exercise which they undertook following the default of Archegos Capital Management. The default resulted in over $10 billion of reported...
FCA publishes second consultation on Consumer Duty
Following its initial consultation in Q2 this year (CP21/13), the FCA has set out the responses it received and has published a second consultation on its plans for a new Consumer Duty (CP21/36). The FCA received 235...
Treasury plans updates to Building Societies Act
Treasury is consulting on a set of amendments to modernise the Building Societies Act 1986. The key changes will update the funding model and corporate governance requirements of societies. The Government realises that...
FCA publishes Frensham Wealth Limited supervisory notice
The FCA has published a supervisory notice addressed to Frensham Wealth Limited. The notice removes all regulatory activities from the firm’s Part 4A permissions with immediate effect. This follows the FCA’s...
UK Finance looks at operational resilience
In advance of the new operational resilience requirements taking effect on 31 March 2022, UK Finance has highlighted the following key themes of importance to both customers and the FCA: Simplicity – customers expect...
FCA recognises revised FX Global Code and Global Precious Metals Code
The FCA confirmed today under its code recognition process that it is recognising: the updated FX Global Code (FX Code); and the Global Precious Metals Code (PM Code). FCA has updated its ‘Recognising industry...
FCA refuses SMF29 application
FCA has published its final notice refusing the application of an individual to perform the SMF 29 function for Servicesport Finance Limited. The individual in question was a solicitor who had failed to disclose SRA...
FCA issues final notice after conspiracy to defraud conviction
The FCA has published a final notice banning Colin Bermingham from performing any function in relation to any regulated activity carried on by any authorised or exempt person or exempt professional firm. In 2019, Mr...
FCA publishes 2020/21 Perimeter Report
The FCA has published its latest Perimeter Report, in which it calls for greater consumer protection and legislative change to address concerns beyond its remit. Highlights include recommendations that: duties on...
FCA fines adviser for pension transfer advice failings
The FCA has published a final notice banning Omar Hussein, former director at pension switching firm Consumer Wealth Ltd, from working in financial services. Mr Hussein has also been fined £116,000 for providing...
FCA outlines remote working expectations for firms
The FCA has published a new webpage which sets out its expectations for firms working in a remote or hybrid environment so firms can continue to meet their regulatory responsibilities. Firms should be able to prove that...
FCA publishes final notice on fraud
The FCA has published a final notice banning Shaffarat Parvez from performing regulated activities. Whilst a director and an approved person at an authorised firm, Mr Parvez engaged in criminal activity and was...
FCA delivers speech on diversity and inclusion
FCA Executive Director Sheldon Mills delivered a speech highlighting the importance of culture and the FCA’s intention to prioritise D&I. Mr Mills also spoke about the need for meaningful progress in relation...
Government and FCA respond on LCF Report
The Treasury Committee has published responses from the Treasury and the FCA to its report on the FCA’s regulation of London Capital & Finance plc (LCF). Highlights from the government’s response...
FCA calls for funeral plan providers and intermediaries to apply now
FCA has updated its website to tell funeral plan providers and intermediaries what they need to do to ensure they are appropriately authorised by 29 July 2022. It has provided a set of forms that applicants will need...
EBA reports on controller condition peer review
EBA has published its peer review on how regulators assess those acquiring qualifying holdings in banks. Overall, the study found compliance with EBA’s guidelines, leading to significant convergence in practices. ...
FCA consults on D&I on listed company boards
The FCA is consulting on proposals to improve transparency for investors on the diversity of listed company boards and their executive management teams. The proposals include changes to the FCA’s Listing Rules to...
PRA updates on accountability
PRA has updated its web resources on strengthening accountability in banks and insurers. It has highlighted its paper on working together to drive change in diversity and inclusion and on its updates for remuneration...
FCA publishes second set of IFPR rules
FCA has published its second “near final” rules on elements of the new IFPR. These rules cover : own funds requirements firms acting as clearing members and indirect clearing firms basic liquid assets...
Treasury consults on SMCR for Financial Market Infrastructures
HM Treasury is consulting on proposals to create an SMCR for financial market infrastructures (FMIs). The proposed regime would mirror the existing SMCR and would give the BoE new rule-making, supervisory and...
ESAs report on F&P, internal governance and remuneration
EBA and ESMA have reported on: assessment of suitability of members of the management body and key function holders under CRD V and MiFID 2. The guidelines focus on the revisions brought in by the IFR and their affect...
LSB stresses importance of good governance
LSB has stressed the importance of governance as underpinning everything a firm does, and has started a series of publications to help firms. Its latest guidance looks at how to achieve best practice. The guide...
FCA finds “host” fund manager weaknesses
FCA has carried out a review of authorised fund managers that provide hosting services to third party investment managers outside of their corporate group. It concluded that some firms were operating well but others did...
IAIS publishes application papers
IAIS has published application papers on: resolution powers and planning; the paper looks at the objectives and concepts of resolution of insurers, entry into resolution, resolution powers and plans, resolvability...
FCA and PRA make new accountability rules for long term absence
FCA and PRA have confirmed their policy on long term absences. FCA has made new rules on individual accountability, requiring firms to notify it when a Senior Manager or Approved Person at an AR takes more than 12...
Rebranded BSB updates website
The former Banking Standards Board has been rebranded as the Financial Services Culture Board from May 2021. It is now open to all financial services firms operating in the UK
FCA clarifies application of EBA outsourcing guidelines
FCA has updated its webpage on outsourcing and operational resilience to clarify the application of EBA’s guidelines on outsourcing. It has confirmed that it expects relevant firms to continue to comply with them...
FCA speaks on UK regulation and FCA transformation
Nikhil Rathi has spoken on FCA’s vision for regulation of the future. His audience was overseas banks, and he focussed on FCA’s priorities in regulating overseas firms at the same standards as domestic...
FCA speaks on compliance and culture
Mark Steward, FCA’s Executive Director of Enforcement and Market Oversight, has delivered a speech at NYU Law School entitled “Compliance, Culture and Evolving Regulatory Expectations“. In it, he...
FCA issues second IFPR consultation
FCA has published its promised second consultation on the IFPR. The IFPR creates a new regime for solo-regulated MiFID investment firms. The consultation covers: aspects of own funds requirements not previously...
FCA and PRA issue statement on FSB UK remuneration peer review
FCA and PRA have issued a joint statement on the findings from the FSB’s peer assessment of the effectiveness of remuneration reforms in the financial sector. FCA has also updated a webpage to highlight the...
FCA and PRA publish operational resilience materials
FCA and PRA have each published a number of documents addressed to firms across a range of sectors on the subject of operational resilience. FCA and PRA have each issued policy statements (PS21/3 and PS6/21) which...
FCA takes action against non-financial misconduct
The FCA has published a decision notice in respect of Jon Frensham (formerly known as Jonathan James Hunt), an independent financial adviser and sole director at Frensham Wealth Limited. In March 2017, Mr Frensham was...
FCA gives speech on diversity and inclusion
Georgina Philippou, Senior Adviser to FCA on the Public Sector Equality Duty gave a speech at the launch of a report by the Investment Associate and Eversheds entitled “Building Ethnic Diversity and Inclusion in...
Investment Association reports on diversity
The Investment Association has published a report which sets out steps to improve ethnic diversity and inclusion in investment management. The report found that: 75% of firms currently collect, or have begun work...
FCA speaks on importance of diversity and inclusion
Nihil Rathi, speaking at Treasury’s Women in Finance Charter Annual review, stressed that diversity and inclusion are regulatory issues. He noted the breadth of characteristics that “diversity”...
FS industry urged to improve on modern slavery practices
A report published by the Independent Anti-Slavery Commissioner says financial services sector firms have low awareness of the risks of modern slavery within their businesses. It found a general low awareness of the...
PRA updates SMCR forms
PRA has updated its SMCR forms, to reflect: FCA’s relatively recent move and new logo; minor corrections; and a reinstatement of question 3.05 on form L, in respect of notifications of disciplinary actions. The...
FCA reminds firms to check permissions regularly
FCA has reminded firms they should regularly check that they have all the right regulatory permissions for their businesses. Firms need not only to seek a variation of permission to add new activities, but should also...
FCA publishes whistleblowing VREQ
FCA has published the outcome of an application by Tokio Marine Kiln Insurance Limited and Tokio Marine Kiln Syndicates Limited to put in place a Voluntary Requirement in respect of whistleblowing policies and...
Regulators update on Covid-related SMCR expectations
The regulators have reminded firms of their expectations in respect of the SMCR, bearing in mind the challenges Covid-19 has presented: FCA has reminded firms that it still does not require a single senior manager to be...
PRA evaluates SMCR
PRA has published a report that evaluates the SMCR and whether it has met its aims. In principle, it concludes that it has – it has helped ensure that senior individuals in firms take greater responsibility for...
PRA writes Dear CEO letters on supervisory priorities
PRA has written to the CEOs of insurers, deposit takers and international banks on its 2021 supervisory priorities: to insurers, it says it will be engaging with stakeholders as it looks to tailor the regulatory regime...
FCA makes new rules
At FCA’s latest board meeting, it made a number of Brexit-related instruments, including: general amendments, including amendments to BTS to check they operate effectively in UK law; SMCR and approved person...
PRA notes FCA “long-term absence” consultation
PRA has drawn the attention of firms to a joint chapter in FCA’s latest quarterly consultation on clarifying regulatory expectations for temporary long-term absences. The regulators plan to clarify what they...
PRA confirms CRDV statement date
PRA has issued a statement explaining to firms when they can expect further information on the implementation of CRD V. PRA issued two separate consultations, the later of which closed on 17 November. It plans to...
Directory person information starts to go live
Directory persons data for dual-regulated firms is now live on the new Directory. FCA has reminded solo-regulated firms that they must have submitted all data by the end of March 2021, and has also noted the dates...
FCA writes supervision letter to PCWs
FCA has written a portfolio supervision letter to CEOs of price comparison websites. The letter notes the key priority that customers buying products through PCWs should buy products consistent with their demands and...
EBA urges consumers first in POG supervision
EBA has published a report encouraging firms to put consumers’ interests first when they are applying product oversight and governance arrangements. It has found this focus is lacking in many firms. This report...
EBA publishes SREP expectations on TF/ML risks
EBA has published its Opinion in which it sets out how prudential supervisors should consider ML/TF risks as part of the SREP process. The Opinion is another expression of EBA’s exhortation on supervisors to...
FCA confirms SMCR extension dates
FCA has confirmed it has extended the date by which all solo-regulated firms must have fully implemented the Certification Regime and Conduct Rules, to 31 March 2021. This follows Treasury making the statutory...
FCA writes to investment and insurance CEOs on client assets and Covid-19
FCA has written 2 Dear CEO letters to firms that hold client money or custody assets, whether in the context of investment or insurance business, to remind them of their obligations under CASS. The letters stress that...
FCA updates on new COVID-19 issues
FCA has updated firms following the most recent Government announcement on COVID-19 restrictions. It says firms should continue to follow Government advice to work from home, and has updated its statements on...
FCA speaks on culture in investment management sector
Marc Teasdale has spoken on FCA’s work with the asset management sector, and how it is intended more closely to align the sector with its essential purpose – that is, protecting and growing the capital and...
PRA finalises minor rule changes
PRA has published its policy statement on proposals in one of its Occasional Consultations. The changes confirmed will cover: minor updates on liquidity reporting; LIBOR updates for non-Solvency II insurers; other minor...
FCA confirms delay to first F&P assessment
FCA has confirmed that solo-regulated firms will now have until 31 March 2021 to complete their first fitness and propriety assessments on Certified Persons. Treasury has made a statutory instrument to confirm the...
FCA updates on SMCR and reporting
FCA has reminded solo-regulated firms of the new annual reporting requirement that will oblige them to tell FCA whether they have taken disciplinary action against individuals who are not senior managers for Conduct...
ESAs consult on management body suitability guidelines
EBA and ESMA have published a joint consultation on updating their guidelines on assessing the suitability of members of the management body and key function holders in regulated firms. The revised guidelines stress...
PRA consults on CRD V
PRA is consulting on changes to its rules, supervisory statements and statements of policy needed to implement parts of CRD V. This consultation is the first part of PRA’s preparation for implementation, and it...
FCA consults on more time for SMCR
FCA is consulting on extending the implementation deadlines for parts of the SMCR for solo regulated firms. It plans that the 9 December 2020 deadline should be extended to 31 March 2021 for: the Conduct Rules taking...