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...
Category - Fintech & Innovation
Emma RadmorePro-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...
FIN. TeamAndrew 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...
Parliament to debate crypto regulation
A debate on the regulation of cryptocurrencies is set to take place on Wednesday 25 January, led by Dr Lisa Cameron. The House of Commons has published the debate pack which sets out the issues and topics which will be...
Nicola RadfordIndustry alliance forms to lead UK’s future in digital currencies
Five associations have formed an alliance called the UK Forum for Digital Currencies (UK FDC). Its members include the City of London Corporation, Digital Pound Foundation, the Payments Association, the CityUK and UK...
FSMB completes second reading in Lords
The FSMB had its second reading in the Lords on 10 January. Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...
UK Finance publishes crypto regulation report
UK Finance has published a report it has produced with KPMG looking at how the UK regulatory framework can address unbacked cryptoassets. The report gives an overview of the current UK regulatory landscape and looks at...
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.
“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...
FSM Bill – Lords dates announced
The FSM Bill as amended after its passage through the Commons has now had its first (routine) reading in the Lords. The Lords’ second reading has been set for 10 January 2023.
FSM Bill report stage
As scheduled, the FSM Bill had its report stage on 7 December and, eventually, at nearly 7pm, the Third Reading of the Bill took place and was agreed to. The Bill now moves to the Lords. While we still await the new...
UK regulators consult on DRCF workplan 2023-24
The Digital Regulation Cooperation Forum (DRCF) – made up of the FCA, CMA, ICO and Ofcom – is calling for input on its workplan for 2023-24. The consultation invites stakeholders to share their views on...
FSM Bill report stage on 7 December
The FSM Bill is to have its report stage and third reading in Parliament on 7 December, after receiving the Bill with amendments from the Public Bills Committee. It is possible for Parliament to make amendments at...
BoE speaks on digital currencies
Sir Jon Cunliffe has spoken on recent crypto market developments. He started with an overview of the failure of FTX and looking at how regulation could impact on activities such as those FTX carried out. He noted that...
FCA speaks on “rolling regulation forwards”
Nikhil Rathi spoke to UK Finance on three key developments which he said will drive regulation forwards: the Consumer Duty: he discussed FCA’s reasons for introducing the Duty, and how FCA would be looking to...
Law Commission consults on DAOs
The Law Commission has published a call for evidence, seeking information about how decentralised autonomous organisations (DAOs) should be characterised and how the laws of England and Wales might accommodate them in...
FCA reacts to FTX failure
FCA has noted that UK customers of FTX may be alarmed following its provisional liquidation in the Bahamas and filing for bankruptcy in the US. It had previously warned customers that FTX is not regulated in the UK and...
Commission publishes amendments to Crowdfunding Regulation
The European Commission has published amendments and supplemental legislation to the Regulation on European crowdfunding service providers for business ((EU) 2020/1503) (Crowdfunding Regulation) in the Official Journal...
Final day of FSMB debate published
In the morning and afternoon of the final day of the Public Bills Committee debate on the FSM Bill, the remaining tabled new clauses were discussed: that the Chair of the PSR should be a member of the FCA board: this...
Andrew Griffith letters on FSMB
The House of Commons has published a letter from Andrew Griffith on the FSM Bill dated 10 October to Tulip Siddiq and Abena Oppong-Asare. The letter followed the second reading of the Bill and addresses: the...
FSMB debate discusses crypto, net zero and regulatory independence
The debate on the FSM Bill resumed on 27 October. The Committee discussed, in the morning and afternoon sessions: Clause 21: the proposals for regulating stablecoins. The main question came from Tulip Siddiq who queried...
PRA speaks on growth and competitiveness
Sam Woods has spoken at Mansion House on how prudential regulation can contribute to the competitiveness of the UK as a financial centre, and to economic growth. He confirmed PRA’s support for the FSM Bill...
Emma RadmoreHighlights of FSMB debates from 25 October
The 3rd and 4th sittings of the Public Bill Committee debate on the FSM Bill took place on 25 October. After the evidence sessions from witnesses on 19 October, the line-by-line scrutiny of the Bill has now started...
FCA seeks views on competition impacts of Big Tech
The FCA has published a discussion paper on the potential competition impacts that may arise from Big Tech firms’ entry and expansion into retail financial services sectors. It is seeking views on the emerging...
Further FSMB revisions released
Parliament has published the latest raft of proposed amendments to the FSM Bill. These include: a change to the very first sub-clause, replacing the revocation of the EU and EU-derived legislation in the schedule so...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...
FSMB Committee stage scheduled for 19 October
An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October. After the line by line debate is complete, the Bill will be republished for report...
FSB consults on regulation of crypto assets and markets
The Financial Stability Board has published a consultative report including some high level recommendations aimed at promoting consistent and comprehensive treatment of crypto-asset activities and markets. The 9...
BoE consults on AI discussion paper
The BoE is consulting on its discussion paper about how artificial intelligence (AI) may affect financial regulation. The discussion paper looks at how the current regulatory framework applies to AI; it considers how...
FCA revamps Digital Sandbox page
FCA has updated its support page on its website relating to the Digital Sandbox to explain more clearly what it offers and how to apply (although it is currently closed for applications)
BoE speaks on technical innovation from crypto to real
Sir Jon Cunliffe has spoken on innovation, and specifically the risks and opportunities of crypto-assets, in post trade services. He noted the importance of bringing crypto-assets and activities within regulation...
FCA speaks on role of regulation in growth
Sarah Pritchard, Executive Director at FCA, has spoken on the regulator’s role in encouraging growth. Key points in her wide-ranging speech included: FCA’s commitment to showing speed and agility, providing...
Government approach to crypto
The House of Commons library has released a research briefing setting out the Government’s regulatory approach to crypto-assets and currencies in advance of a Westminster Hall debate on 7 September. The report...
Innovate Finance publishes FSM Bill briefing
Innovate Finance has called out the aspects of the FSM Bill that are of particular relevance to the UK FinTech sector. It calls out the Bill’s proposals on: stablecoin regulation and the FMI sandbox(es) –...
DRCF ToR published
The CMA has published the terms of reference for the Digital Regulation Cooperation Forum, which was established by the CMA, ICO and Ofcom in June 2020, with FCA joining in April 2021. The forum’s objectives...
TheCityUK publishes manifesto for next PM
TheCityUK has set out 8 areas where the industry can work with the next Prime Minister, not least: delivering n the FSM Bill as soon as possible and reforming Solvency II creating tax incentives to accelerate financing...
UKJT consults on legal statement for digital securities
The UK Jurisdiction Task force is looking at the way in which English law can support the issue and transfer of equity or debt securities on blockchain and DLT systems. The statement will follow its work over recent...
Law Commission consults on crypto
The Law Commission has published a paper setting out its proposals for reform of the laws relating to digital assets. It has identified many areas of law that need reform in order to recognise and protect the rights of...
PSR publishes response to Digital Payments Initiative report
The Payment Services Regulator (PSR) has published its response to the PSR Panel’s Digital Payments Initiative report. In response to last year’s Access to Cash Working Group’s recommendations, Dr Ruth Wandhöfer...
Duncan ScottNeed more detail on the Financial Services and Markets Bill?
We’ve produced a detailed summary of the key aspects of the Financial Services and Markets Bill, following up on our headline post. While the Bill won’t be having its second reading until September, keep an...
New Financial Services and Markets Bill in Parliament
The Government has introduced the Financial Services and Markets Bill into Parliament. The Bill was introduced on 20 July and had its first reading, but no date was set for the second reading. In his first Mansion House...
FCA publishes Annual Report
FCA has published its Annual Report and supporting papers. It highlighted: how nearly 600,000 people are paying less in interest and charges on credit card debt following rule changes; how further rule changes have...
European Parliament proposes new online credit suitability rules
MEPs have proposed legislation designed to protect consumers online from credit card debt, overdrafts and loans that are unsuitable for their financial situation. The proposed new rules would require that: consumers are...
ECB speaks on using tech to tackle financial crime
Elizabeth McCaul, Member of the Supervisory Board of the ECB, has delivered a speech on how technology (particularly AI) can be used in the fight against financial crime. Ms McCaul discussed the relationship between...
Treasury Committee launches inquiry into cryptoassets
The Treasury Committee has launched a new inquiry into cryptoassets. The inquiry will cover the opportunities and risks that cryptoassets may bring to consumers, businesses and the government. It will also examine the...
FSB updates on international regulation and supervision of crypto activities
The FSB has published a statement on international regulation and supervision of cryptoassets activities. Highlights include: the FSB will continue to facilitate cross-border and cross-sectoral cooperation amongst...
ESMA consults on the DLT Pilot Regime
Following its call for evidence earlier this year, ESMA is consulting on draft guidelines on standard forms, formats and templates to apply for permission to operate a DLT market infrastructure. The proposed draft...
Government commits to Consumer Credit Act reform
The Government has announced its commitment to seeking reform of the rules contained in the Consumer Credit Act 1974 (the CCA) in an effort to modernise them, cut costs for business and ensure the rules are easier for...
Council adopts new rules on EU regulation of consumer credit
The Council has published its agreed position on the revision of the Consumer Credit Directive (Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and...
Post-legislative assessment of the Fraud Act 2006
The Ministry of Justice has published a memorandum on the Fraud Act 2006 which provides an updated post-legislative assessment of the Act for submission to the House of Lords Select Committee in light of rising digital...
Government consults on failure of Digital Settlement Asset firms
The Government is consulting on proposed amendments to the FMI Special Administration Regime to enable the management of a failure of a “systemic digital settlement asset firm” – including stablecoin...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
FCA highlights the risks of investing in crypto
The FCA has issued a statement following some recent social media posts regarding cryptoassets and NFTs. Whilst it cannot comment on individual products, it has warned consumers that there are no consumer protections...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
Queen’s Speech 2022 – FS elements
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
FCA delivers speech on learning from the past
Nikhil Rathi, CEO at the FCA, spoke on learning from the last 30 years to face the next 30 years at the Chartered Institute for Securities & Investment (CISI) 30th anniversary dinner. Highlights include: the world...
FCA talks of a “digital regulator”
Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...
UK gearing up to be a global cryptoasset technology hub
Alongside Treasury’s decision to regulate stablecoins, the government has announced wider plans to make the UK a global hub for cryptoasset technology and investment. In a speech delivered at the Innovate Finance...
Government to regulate stablecoins
Following its consultation last year, Treasury has decided it will regulate stablecoins. It plans to bring activities that issue or facilitate the use of stablecoins that are used as a means of payment within the UK...
FCA seeks input on use of synthetic data to support financial services innovation
FCA wants to better understand different market participants’ views on the extent to which synthetic data can expand data access and data sharing opportunities in the market. FCA is evaluating the maturity of...
Harshil PatelFCA provides market insights on its Innovation Hub
FCA’s Innovation Hub has been helping firms to develop innovative products and services since it was launched in 2014. FCA has recently provided an insight update on the data which it has gathered on the...
CMA publishes Annual Plan for 2022/23
The CMA has published its Annual Plan which explains how it will protect consumers, promote competition and help support the economy in the year ahead. It aims to encourage innovation, productivity, and sustainable...
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...
FCA speaks on credit regulation in tough times
Brian Corr, Interim Director of Retail Lending at FCA delivered a speech on 23 March 2022 to the Credit Summit addressing the impact credit will have on consumers as the economic situation continues to deteriorate and...
EP reports on crypto Regulation proposal
The European Parliament has published its report on the proposal for a Regulation of crypto asset service providers. A key change is to specify that any person providing any relevant services to EU citizens must both...
ASA cracks down on misleading crypto ads
ASA has issued an Enforcement Notice to over 50 firms which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated...
IOSCO consults on retail market conduct
IOSCO has published a consultation report from the Retail Market Conduct Task Force. The report looks at recent retail investor trends and the development of a regulatory toolkit to help regulators consider emerging...
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...
Bank of England responds to Committee report on digital currencies
The Bank of England (the Bank) has thanked the House of Lords Economic Affairs Committee for its report on the Central Bank Digital Currency and in a letter addressed to the House of Lords, the Bank addresses the...
Consumers warned on the risks of crypto-assets
The European Supervisory Authorities (EBA, ESMA and EIOPA – the ESAs) warn consumers that many crypto-assets are “highly risky” and speculative. The ESAs advised that sufficient measures are needed to...
FCA warns on illegal crypto ATMs
FCA has warned operators of crypto ATMs that they must shut down their machines. Any firm operating a crypto ATM in the UK must be registered under the MLRs, but no firm that does operate one has yet been approved by...
Government outlines priorities for the digital regulatory landscape
Following the publication of the Plan for Digital Regulation last summer, the government has written to the Digital Regulation Cooperation Forum (DRCF) setting out its priorities for the digital regulatory landscape and...
FCA updates on Green FinTech Challenge 2021
FCA has accepted 10 firms into its Green FinTech Challenge 2021 which aims to enable the FCA to take a more active role in driving innovation in products and services that will aid the transition to a net-zero economy...
Emma BondASA successfully challenges crypto ads
The ASA challenged an ad for Floki Inu, a cryptocurrency, which was made via a poster displayed on the Tube in November 2021. The poster had a cartoon dog in a Viking helmet with text saying “Missed Doge. Get...
UK and Singapore sign new digital trade deal
Following its agreement in principle, on 25 February 2022, the International Trade Secretary joined her counterpart in Singapore and signed the trade deal- the Digital Economy Agreement (DEA) – that will help...
Kalifa Review – one year on – open letter from FinTech CEOs
One year on from the Kalifa review, the Innovate Finance membership community (FinTech CEOs and founders) have published an open letter expressing their contentment in seeing action taken to implement a majority of the...
Treasury to make rules on misleading crypto ads
Treasury has confirmed that the Government plans to legislate to address misleading cryptoasset promotions. It proposes to do so by brining the promotion of cryptoassets within the scope of financial promotions...
Parliament publishes report on central bank digital currencies
The Economic Affairs Committee has published its report on the potential for the UK to have a central bank digital currency. It has concluded that there’s no convincing case to have one. Although there could be...
ESMA publishes call for evidence on DLT pilot regime
ESMA has published a call for evidence on distributed ledger technology (DLT). This forms part of the Regulation on a pilot regime for market infrastructures based on DLT. It is seeking input from stakeholders on the...
All-Party Parliamentary Group on Blockchain publishes 2022/23 programme
The All-Party Parliamentary Group (AAPG) on Blockchain has published its 2022/23 work programme entitled ‘ensuring industry and society benefit from the full potential of blockchain‘. The AAPG’s three...
EU reaches political agreement on DLT Regulation
The Council of the EU and European Parliament have reached a final compromise on a Regulation on a pilot regime for market infrastructures based on DLT. The regime: sets out the conditions for acquiring permission to...
JMLSG comments on guidance on digital identities
The Joint Money Laundering Steering Group (JMLSG) has published an update on its website relating to the recent interest in digital identities and their use as part of AML/CFT procedures. It notes that it continues to...
UK agrees digital trade deal with Singapore
The UK has secured an agreement in principle on a Digital Economy Agreement (DEA) with Singapore. The agreement is the first digitally-focussed trade agreement signed by a European nation and was agreed after only six...
European Commissioner speaks at EPIF annual conference
Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, recently gave a speech at the European Payment Institutions Federation (EPIF) Annual Conference. She...
Government sets out net zero transition plans
The government has set out its plans for the UK to be the world’s first net zero aligned financial centre and has called for other countries to follow suit. The government has confirmed it will be introducing...
FCA delivers speech on data-led regulation
The FCA’s chief data, information and intelligence officer, Jessica Rusu, has delivered a speech on the FCA’s role as a data-led regulator. The speech explores the FCA’s response to new technologies...
FCA publishes updated complaints data
FCA has published its six-monthly set of data on complaints that firms receive. Its latest findings include: a 7% decrease in complaints from H2 2016, with the 2.04m complaints being the lowest level since late 2016;...
EU Banking Package 2021
The European Commission has today adopted a review of the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) to ensure that EU banks become more resilient to potential future economic...
AFME publishes “Anti-Money Laundering Transaction Monitoring in the Markets sector”
The Association for Financial Markets in Europe (AFME) has published a paper entitled, “Anti-Money Laundering Transaction Monitoring in the Markets sector” in collaboration with Ernst & Young. Recognising the key...
European Commission adopts work programme for 2022
The EU Commission has adopted its 2022 work programme which sets out the next steps in its agenda towards a greener, fairer, more digital and more resilient Europe. The programme contains 42 new policy initiatives...