Laura WilesThe FCA Practitioner Panel has published its response to the PSR and FCA’s call for information on the benefits and risks of digital wallets. The Panel noted some “clear and compelling” benefits of...
Category - Fintech & Innovation
Katie SimmondsDigital Assets Bill gets first reading and Government responds to Law Commission recommendations
The Property (Digital Assets etc) Bill had its first reading in the House of Lords on 11 September. The Bill provides that digital assets can be considered to be personal property, and may therefore be given the same...
Emma RadmoreLaw Commission publishes draft “third category” proposals
The Law Commission has published a supplemental report on digital assets as personal property, and a draft Bill to confirm the existence of a third category of personal property into which certain digital and other...
Bank of England outlines approach to innovation in money and payments
The Bank of England (BoE) has issued a discussion paper inviting views on its approach to innovation in money and payments. In the paper, the BoE notes that to date it has: enhanced its capability to supply wholesale...
Duncan ScottFCA reports on secondary objective progress
The FCA has published the required metrics on the success of its secondary international competitiveness and growth objective. It has split the metrics into the themes of: authorisations and operational efficiency:...
PSR and FCA call for information on big tech and digital wallets
The PSR and FCA are seeking information and evidence on the benefits and risks posed by digital wallets to people and businesses. In particular, the regulators want to gather information on: the different benefits that...
Harry WellsFCA keeping trading apps under review
The FCA has carried out an online experiment involving over 9,000 consumers, involving a trading platform app that the FCA created. It wanted to test the effect of different digital engagement practices on trading...
Labour manifesto proposes Regulatory Innovation Office
Part of Labour’s manifesto proposes a new Regulatory Innovation Office, which will bring together existing functions to help regulators better deal with the development of new technologies, specifically AI. It...
Conservative manifesto highlights fintechs
The Conservative Manifesto, published on 11 June, contains few surprises for financial regulation. It priorities: building on the various co-operation agreements it has already signed, including with the EU and...
City of London Corporation looks at AI and the workforce
The City of London Corporation and KPMG have published a report looking at the expected increases in demand for and productivity resulting from the use of AI in financial and professional services. The report says there...
FCA speaks on investment management
Nikhil Rathi has spoken on the importance of the UK keeping its leading position in global asset management. He discussed current international initiatives such as: liquidity risk management, particularly for open ended...
July 4 Election: effect on current Bills?
A general election has been called for 4 July 2024. Parliament (including the House of Lords) will be dissolved on 30 May 2024. We are now therefore in the ‘wash-up’ period which will last for only 2 days...
BoE speech: balancing the opportunities and risks of AI
Randall Kroszner, BoE external member of the Financial Policy Committee, has delivered a speech on balancing the productivity opportunities of financial technology and AI against the potential risks. Speaking at the...
BoE publishes digital pound proof of concept
The BoE is currently conducting experiments and proofs of concept as part of the design phase towards a possible digital pound. It has looked at the technical feasibility of using existing POS hardware to initiate...
UK and Singapore strengthen FinTech and sustainable finance cooperation
The 9th dialogue of the UK-Singapore financial dialogue focussed on: commitment to scale financing in support of the net zero agenda, including transition planning and disclosure and rating standards; fintech and...
BoE looks at AI and financial stability
Jonathan Hall of the FPC has spoken on whether increasing use of AI models could have a negative impact on financial stability. He sees two key risks: that deep trading agents could lead to a brittle and highly...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
Innovate Finance and City of London publish report on compliance technology
Innovate Finance and the City of London Corporation have published a report calling for the FCA and PRA to introduce a test to help assess they ways in which technology can facilitate regulatory compliance. It says it...
FCA updates perimeter report
The 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...
FCA and BoE consult on Digital Securities Sandbox
The BoE and FCA are consulting on the Digital Securities Sandbox which will allow participants to use developing technologies to carry out some of the traditional activities of CSDs and trading venues. Instruments such...
Fund tokenisation report looks at further token use in MMFs
The second report of the Technology Working Group on fund tokenisation looks at the potential use of tokens as collateral for money market funds, and how tokenised funds can plan a key role in an “on chain”...
FCA updates social media guidance
The FCA has published its updated guidance on social media advertising. The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...
FCA publishes Business Plan 2024/2025
The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...
AI in financial services: gathering speed
Read our article on the latest reports on use of AI in financial services and the potential benefits of generative AI.
Lloyd’s report: generative AI and cyber risk
Lloyd’s has published a report on how the growth of generative AI could impact upon cyber risk. Whilst the report recognises the benefits generative AI can bring, it highlights that generative AI tools pose an...
Lucy HadrillBoE speech: data and analytics strategy refresh
James Benford, BoE Executive Director for Data and Analytics Transformation and Chief Data Officer, has delivered a speech on BoE’s new Bank-wide approach to data and analytics strategy at Tech Show London. The...
FATF consults on payments transparency recommendations
The Financial Action Taskforce (FATF) has published a consultation, and explanatory memorandum, on proposed changes to its recommendation 16 (the Recommendation) and the associated interpretive note and glossary terms. ...
ABI publishes guide on using AI responsibly
The ABI has published a guide on the responsible use of AI which sets out how firms in the insurance sector can put the Government’s five principles of AI into practice. As a reminder, these are accountability...
Government defends Edinburgh Reform progress
The Government has responded to criticism from the Treasury Committee on how the Edinburgh Reforms are progressing. Following the Government’s report in December (a year after it announced the reforms) that it had...
Government requests AI update from regulators
Following its response to the Government’s AI White Paper consultation, the Department for Science, Innovation and Technology has asked the FCA and BoE to publish information outlining their strategic approach to...
FCA welcomes call for input on ‘Big Tech’ competition issues
FCA has issued a letter welcoming the Competition Division’s call for input on the potential competition impacts from data asymmetry between Big Tech and firms in financial services. In particular, FCA notes that...
UK Finance responds on stablecoins
UK Finance has responded to the FCA and BoE discussion papers on regulating stablecoins. It is generally supportive of the broad proposal to build upon the existing regulatory/legislative regime for stablecoins used for...
Vida FatemiBoE extends stablecoin consultation deadline
The BoE is keen to receive a wide range of feedback in response to its discussion paper on regulating stablecoins. It has therefore extended the consultation period which will now close at 10am on 12 February 2024. As a...
FCA publishes blockchain research
FCA has published a research note entitled ‘Review of Maximal Extractable value (MEV) and Blockchain Oracles’ in collaboration with Futuresight Business Intelligence Ltd, the Financial Industry Regulatory...
Government publishes response to AI Regulation White Paper
The Government has published the response to its AI Regulation White Paper consultation. Whilst the Government acknowledges that legislative action will eventually be needed to tackle the challenges of AI, the response...
BoE speaks on core payments infrastructure and policies
Victoria Cleland, Executive Director for banking, payments and innovation, spoke about how BoE is enhancing its core payments infrastructure and policies using technological innovation. The focus was on wholesale...
TheCityUK shows strength of UK financial services sector
TheCityUK’s annual report on the UK’s position as an international financial centre says that exports relative to imports of financial and related professional services shows how competitive UK industry is...
FCA reflects on 2023
Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...
IAIS updates on AI work
IAIS has issued an update on its work on the adoption of AI and machine learning in the insurance sector. It has reviewed guidance from 12 international supervisors and organisations. Among its conclusions are that the...
TWG publishes report on fund tokenisation
The Technology Working Group (TWG), which is the City Minister’s forum for examining the impact of technology on the UK’s investment and asset management sectors, has published its first report. TWG worked...
UK and Japan discuss cooperation
The 2nd Financial Regulatory Forum (FRF) and the 5th Financial Dialogue (FD) between Japan and the UK was held on 27 November 2023 and a joint statement summarised the key discussion points. Overall, both countries hope...
UK Finance reports on impact of AI in financial services
UK Finance has published a report that looks at the uses of AI in the financial sector. The report covers: how and where AI is being deployed; where there is promise for the future; how to make more of opportunities;...
Autumn Statement: financial regulatory issues
The Government’s Autumn Statement covered several new and ongoing actions relevant to the financial services sector, including: legislation to replace retained EU, mainly in the markets space (securitisations...
FCA and BoE publish proposals for regulating stablecoins
FCA and BoE have requested feedback on their proposals for regulating stablecoins in the context of the regulators looking to harness the potential benefits stablecoin could provide to UK consumers and retailers...
FCA publishes crypto marketing guidance
FCA has published guidance it hopes will support firms complying with the new rules on crypto promotions. It is aimed both at registered crypto firms making promotions and at authorised forms who are communicating or...
FCA joins global digital innovation project
FCA has joined regulators from Singapore, Japan and Switzerland in “Project Guardian“, which will expose fund and asset tokenisation use cases and DeFi. Sarah Pritchard said the UK’s asset management...
Treasury confirms next steps in crypto regulation
Treasury has published its response to its consultation and call for evidence on the future regulatory regime for crypto assets. Broadly, it will proceed with the proposals it consulted on, and will: develop a...
Regulators feed back on AI
PRA and FCA have published a feedback statement following their and BoE’s discussion paper on AI and machine learning. The paper asked for views on the role supervisors should play in supporting the safe and...
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...
JROC welcomes OBL data collection frameworks
The Joint Regulatory Oversight Committee has welcomed the publication of two data collection frameworks by Open Banking Limited, one on levelling up availability and performance and the other on mitigating the risks of...
FCA stops firm from approving crypto promotions
On 10 October, FCA imposed restrictions on rebuildingsociety.com Ltd to stop it from approving crypto financial promotions. The firm, which is authorised to operate an electronic system in relation to lending, was also...
FCA speaks on AI risks and opportunities
Jessica Rusu, FCA Chief Data, Information and Intelligence Officer, has spoken at the City and Financial Global AI Regulation Summit on the risks and opportunities presented by artificial intelligence (“AI“)...
FCA issues first alerts under new crypto marketing regime
FCA has issued 146 alerts about financial promotions in the first 24 hours of the new crypto marketing regime. These alerts contain the names of companies which may be illegally communicating cryptoasset promotions. The...
FCA speaks on financial inclusion
Nikhil Rathi has spoken on how FCA is looking for solutions to tackle financial exclusion, but that it needs help from industry and technology to do so. He explained that FCA does not have the remit or powers to tackle...
UK Finance respond to ban on cold calling
UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...
FCA and CoLC launch APP scam project tool
FCA and the City of London Corporation have launched the promised APP synthetic dataset which is designed to develop products and services to minimise fraud. The dataset will allow analysis of rare patterns of behaviour...
FCA speaks on international collaboration
Ashley Alder has spoken on the importance of collaboration in international financial services. He touched on the UK-EU MoU and current IOSCO initiatives. He spoke of global initiatives such as climate and...
FCA reminds firms of incoming crypto rules
FCA has set out its expectations in advance of the rules on advertising of crypto products coming into force on 8 October. The rules are specifically designed to make marketing clearer and more accurate and to ban...
Consumer Panel publishes review on personal data use
The Financial Services Consumer Panel has published a paper looking at whether firms’ use of personal data is leading to bias and detriment for consumers with protected characteristics. It concludes that most...
Government consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
Financial Lives conclusions make uncomfortable reading
FCA has published the results of its latest Financial Lives survey, which it says serve to highlight the importance of the Consumer Duty. During the year to May 2022: less than half of UK adults had confidence in the UK...
FCA to launch Digital Sandbox permanently
Following successful pilots, FCA’s Digital Sandbox will be made permanently available on 1 August 2023. Until now, the platform has only been available on a temporary basis to institutions participating in FCA...
Government rejects Treasury Committee’s suggestion to regulate retail crypto trading as gambling
The Treasury Committee has published the Government’s response to its report on Regulating Crypto. The report had concluded that consumer trading in unbacked cryptocurrencies more closely resembles gambling than a...
FSB publishes global regulatory framework for crypto-asset activities
FSB has published its finalised regulatory framework for the supervision of crypto-asset activities to promote the comprehensiveness and international consistency of regulatory and supervisory approaches globally. FSB...
FSB updates roadmap for addressing climate-related financial risks
In July 2021, FSB published a comprehensive roadmap to address climate-related financial risks. It has now delivered a progress report on the roadmap as required by the G20. Physical risks and a disorderly transition to...
FCA speaks on regulatory approach to Big Tech and AI
Nikhil Rathi, Chief Executive at FCA, has delivered a speech at The Economist on FCA’s emerging regulatory approach to Big Tech and AI. It notes that with the “right guardrails in place”, AI can offer...
Treasury consults on first financial market infrastructure sandbox
Treasury is consulting on the first financial market infrastructure sandbox delivered under the powers granted to it as part of FSMA 2023. The Digital Securities Sandbox (DSS) will enable digital securities to be tested...
LSB publishes SME green finance report
LSB has published a report highlighting challenges in the SME green finance market and exploring how banks and lenders can support their customers to become more sustainable. The report concludes that while demand for...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
FCA speaks on innovation in financial services
Sheldon Mills, Executive Director of Consumers and Competition at FCA, has delivered a speech at the CityUK Annual Conference on how innovation and regulation in financial services can drive the UK’s economic...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
Read our deep dive into dark patterns guide
We have published our deep dive into dark patterns, covering: an introduction to what dark patterns are and how they work; a guide to navigation of the regulation of dark patterns in the UK, EU and US; and examples of...
Lords passes FSM Bill
The FSM Bill has had its third reading in the Lords, and has been passed and returned to the Commons as amended in the Lords. The Commons now needs to consider the Lords’ amendments, and, if all is agreed, the...
FSM Bill: Lords Report stage day 3
Day 3 of the debate on the FSM Bill at Lords Report stage included: a debate on forest risk commodities, which was approved on a vote; a proposal for a number of amendments relating to liability of PSPs for fraudulent...
Should you have a chief AI officer?
Read our article about what is a Chief AI officer, and whether you should have one.
Legal considerations for tech outsourcing: LexisNexis Webinar
LexisNexis subscribers can listen to a webinar presented by WBD’s Alastair Mitton, with Tom Porter of Natura&Co, on trends and challenges in tech outsourcing.
Treasury concludes FSF review
Treasury has formally concluded the FSF review, following the publication of its December policy statement. FCA has updated its website to reflect what it will be doing to help deliver on the changes, including how it...
FSMB: Lords report stage scheduled for 6 June
The report stage in the Lords for the FSM Bill will start on 6 June. There is no set length of time for it to last, although further sittings have already been scheduled for 8 and 13 June.
Treasury Committee calls for crypto trading regulation
A report from the Treasury Committee calls for consumer trading in unbacked crypto to be regulated as gambling. The Committee says these currencies have no intrinsic value and serve no useful social purpose, yet they...
Parliament debates FPO amendments
The House of Lords has been debating the draft statutory instrument amending the FPO to bring promotions of crypto assets within scope. The proposal, which includes extending appropriate exemptions to crypto-promotions...
FSSC Publishes Report: Reskilling Everywhere All At Once, Skills for the future of financial services 2023
The Financial Services Skills Commission (FSSC) has published its report on reskilling for the future of the financial services industry. The report suggests UK businesses prioritise and implement reskilling programs to...
FIN. TeamFCA speaks on regulation and Fintech
Emily Shepperd spoke at City Week on how the FCA, and regulation generally, can help firms innovate and embrace Fintech. She spoke of challenges to the traditional banking model and what banks had done to address them...
Treasury Committee publishes exchange of letters with FCA
The Treasury Committee has published its request to FCA to provide it with information on key elements of its regulation following Nikhil Rathi’s appearance before it in early March, and FCA’s response. The...
PSR speech: Innovate Finance Global Summit
Aidene Walsh, Chair of PSR, has delivered a speech at the Innovate Finance Global Summit on innovation from a regulatory perspective and promoting development in payment systems. The speech referred to recent headlines...
FCA to lead GFIN Greenwashing TechSprint
FCA is inviting all UK firms interested in participating in the GFIN’s first ever greenwashing TechSprint to apply for it. FCA is leading the initiative involving 13 regulators and 80 international organisations...
FCA and ASA partner with Love Islander to educate fin-fluencers
FCA and ASA have teamed up with former Love Island contestant Sharon Gaffka to help educate fin-fluencers about the risks of promoting financial products. The regulators have previously issued warnings to fin-fluencers...
AI governance impact analysis evidence published
On 29 March 2023, the government published its AI white paper setting out its regulatory approach to AI in the UK. Simultaneously: the Department for Science, Innovation and Technology (DSIT) and the Office for...
Government publishes AI white paper
The Government has published a white paper setting out a new approach to regulating AI in such a way as to build public trust in new technologies. The paper proposes 5 principles to guide the use of AI in the UK and...
Draft FPO amendments
Draft amendments to the FPO have been published, which would: create a new exemption for crypto exchange and wallet providers who are registered with FCA for AML purposes but not authorised under FSMA, which will allow...
FSM Bill 9th Grand Committee session
The 9th Lords Grand Committee session on the FSM Bill took place on 21 March. Topics debated were: the proposal to limit the powers of PRA to prevent a matching adjustment being applied to a portfolio of high risk or...
Pro-innovation Regulation of Technologies
HM Treasury has published the report presented by Sir Patrick Vallance, the Government Chief Scientific Adviser, on Pro-innovation Regulation of Technologies Review: Digital Technologies. The report highlights the...
Andrew Griffith speaks on Edinburgh Reforms progress
Economic Secretary to the Treasury, Andrew Griffith, has spoken on the progress of various elements of the Edinburgh reforms including giving his update on the FSM Bill. He focussed on the new duty on PRA and FCA to...
House of Lords updates on FSM Bill
Ahead of the seventh day of debate on the FSM Bill in the Grand Committee, the House of Lords has published: a new list of amendments; a letter promised by Baroness Penn to all members on matters raised at the second...
Regulators update Regulatory Initiatives Grid
The Financial Services Regulatory Initiatives Forum has published the sixth edition of the Regulatory Initiatives Grid. The edition was due last November, but has been held back to allow the regulators to consider how...
FSB outlines priorities for the year
The Financial Stability Board has written to G20 Finance Ministers and Central Bank Governors outlining its priorities for the year. At the G20 meeting on 24-25 February, it plans to present papers on: non bank...
FCA feeds back on synthetic data
FCA has issued its feedback statement following its call for input on synthetic data. The call for input looked to probe how best to access quality data to help develop new products and services while protecting...
BoE speaks on digital pound
Sir Jon Cunliffe has spoken on the digital pound, as the BoE and Treasury launched their consultation. He noted that, while no firm decision can be taken on implementing the digital pound, the taskforce is now moving to...
Treasury and BoE consult on digital pound
Treasury and BoE are consulting on the potential creation of a digital pound, which would be issued by the BoE. It would be interchangeable with cash and could be used for in-store and online payments. No formal...
FCA reminds crypto firms of upcoming fin prom rules
FCA has reminded all crypto firms of the Government’s intention to bring all promotions to UK customers by cryptoasset firms within the scope of the financial promotions regime. Once the changes take effect, any...
Treasury consults on crypto regulation
Treasury has published its long-awaited consultation on its plans to regulate cryptoasset activities in the UK. The consultation, which also includes a call for evidence and is accompanied by Treasury’s response...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
FCA speaks on “better foundations” in AI
Jessica Rusu, speaking at the Alan Turing institute, has addressed the critical considerations for the best use of AI in financial services. She said that: AI regulation in financial services needs to be built on a...