The Bank of England, the PRA and FCA have published a joint discussion paper on its approach to improve operational resilience in the financial sector. The regulators envisage that boards and senior managers can achieve...
Category - Investments
FIN. TeamBoE sets out next steps for prudential regulation of banks: present and future
Vicky Saporta, Executive Director for Prudential Policy at the Bank of England delivered a keynote speech on 4 July at The Westminster Business Forum. The speech focused on the impact of Basel III, which was finalised...
Changes in terminology. PRA updates its Supervisory Statements
The PRA updated a number of its Supervisory Statements (SSs) on 4 July 2018 to reflect changes in terminology, following the publication of policy statement 15/18 “Strengthening individual accountability in...
Insurance Europe’s SII conference
On 26 June, insurers, policymakers and regulators attended Insurance Europe’s Solvency II Conference. The theme of the conference, which was held in Brussels, was ” Two years on and two reviews”...
FCA makes new rules
FCA has made new rules. The changes affect several parts of the Handbook, including: miscellaneous minor and clarificatory changes, including a change to the application chapter of SYSC to clarify that certain rules in...
Emma RadmoreHMT, Bank of England and FCA set out approach to onshoring financial services legislation
The Treasury, the Bank of England and the FCA have published information about how financial services legislation will be on-shored under the EU (Withdrawal) Act, in particular to ensure the (hopefully unlikely)...
Emma RadmoreMansion House 2018: Speech by the Chancellor of the Exchequer
HM Treasury has published a speech by Philip Hammond, Chancellor of the Exchequer, which was delivered at the annual Mansion House dinner. In his speech, Mr Hammond focused on Brexit and financial services. He said that...
Mansion House 2018: BoE Governor gives speech – ‘New Economy, New Finance, New Bank’
Mark Carney, Governor of the BoE, delivered a speech at the annual Mansion House dinner on how the UK financial system can continue to serve the UK and the world, in the face of major structural changes. In his speech...
Law Commission opens consultation on expanded definition of ‘insurable interest’
The Law Commission and the Scottish Law Commission have published an updated bill that proposes an expansion to the concept of insurable interest for life-related insurance. By using the term ‘life-related...
ESMA confirms end of LEI grace period
ESMA has issued a statement confirming that the six month grace period granted to those required by MiFIR to have a Legal Entity Identifier (LEI), will end on 2 July 2017. ESMA will now work with national competent...
PRA publishes Policy Statement and Supervisory Statement on Algorithmic Trading
The PRA has issued PS12/18 and SS5/18, which sets out the PRA’s expectations of a firm’s risk management and governance of algorithmic trading. The SS applies to all algorithmic trading activities of a...
New Chair of the Court of the Bank of England appointed
HM Treasury and the Bank of England have announced that Bradley Fried has been appointed as Chair of the Court of the Bank of England, with effect from 1 July 2018. He will replace Sir Anthony Habgood who has been Chair...
Up next from FCA
FCA’s latest Policy Development Update heralds a policy statement on fees and levies rates in July. Otherwise its timetable is quiet, with a policy statement on the MMF Regulation due at some point together with...
FOS Annual Review published
The FOS has published its Annual Review for 2017/2018. Many of the complaints statistics highlight products that are the subject of ongoing regulatory scrutiny and activity: the FOS notes significant increases in...
BoE publishes FEMR update
BoE, FCA and Treasury have published the progress report on the Fair and Effective Markets Review. It says significant progress has been made towards the recommendations. Key conclusions are that: the work on extending...
HM Treasury: Cryptoassets Taskforce meets for the first time
The first meeting of the UK’s new Cryptoassets Taskforce took place on 21 May 2018. The Taskforce was first announced in April by the Chancellor of the Exchequer as part of the Government’s Fintech Sector Strategy...
FCA consults on consumer contract variations
FCA is consulting on guidance for firms setting out what factors under the Consumer Rights Act they should take into account when they are drafting and reviewing variation terms. The draft guidance sets out a list of...
Financial Guidance and Claims Act gets Royal Assent
The Financial Guidance and Claims Act has received Royal Assent. The Act: establishes a single financial guidance body, and sets out its objectives, functions and funding details. It also sets out requirements on...
FCA retires retail advice guidance
FCA has confirmed that it will “retire” with immediate effect FG12/15: RDR: independent and restricted advice, and FG14/1: Supervising retail investment advice: inducements and conflicts of interest. It...
ESMA sets up central register portal
ESMA has created a new portal for checking the authorisation status of investment firms, trading venues and DRSPs authorised under MiFID 2, UCITS management companies and AIFMs and also funds managed or marketed in the...
Up next from FCA
FCA’s latest Policy Development Update promises over the next couple of months the overdue feedback on fees and levies policy proposals with consultation on rates proposals. No dates are set for any other key...
FCA 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 publishes new FSCS funding rules
Following its consultation in 2017, the FCA has now published its final rules on reformed FSCS funding. These rules will take effect from April 2019. Additionally the FCA has opened a consultation on draft rules...
EU updates on retail product distribution
The European Commission has reported that consumers still face some obstacles when trying to compare investment funds, life insurance or personal pensions. The report finds that recent EU measures, such as MiFID 2 and...
Claims Management regulations published for consultation
As part of the proposed process of transferring the regulation of Claims Management Companies to the FCA, HM Treasury is consulting on draft regulations that will form part of a final statutory instrument creating a...
UK and US announce working group creation
HM Treasury and the US Treasury Department have announced the formation of a Financial Regulatory Working Group, to formalise engagement on bilateral regulatory cooperation. The group is scheduled to meet twice a year
FCA creates new basic advice page
FCA has created a new page on its website explaining the basic advice regime under MiFID 2 and the IDD. It explains it needed to update its guidance to firms to explain the impact of these pieces of legislation. In...
BEIS publishes Green Paper on modernising consumer markets
The Department for Business, Energy and Industrial Strategy is consulting on proposals which, among other issues, seek to to improve the consumer experience in regulated markets for utilities, telecommunications and...
ESAs report on key risks for H2 2017
The Joint Committee of the European Supervisory Authorities has published its report for the second half of 2017. This report highlights the following potential sources of instability: repricing of risk premia...
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 updates on Capital Alternatives
FCA has reported that the defendants in its case against Capital Alternatives have been ordered to pay compensation and that it has obtained new undertakings from or injunctions against some of the defendants to protect...
FCA publishes policy statement on pension transfers advice
The FCA has published a Policy Statement on pension transfers advice (PS18/6). This follows the FCA’s June 2017 consultation, which looked at improving the quality of pension transfer advice. The policy statement...
Complaints Commissioner concerned about information sharing between FOS and FCA
In a recent report the Complaints Commissioner expressed concern about the absence of published information about how and in what circumstances information about live ombudsman cases may be shared between the FOS and...
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...
Joint call for input on regulating the pensions and retirement income sector published
The Pensions Regulator and FCA have published a Joint Call for Input on their strategic approach for regulating the pensions and retirement income sector. The strategic approach will set out how the FCA and Pensions...
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...
European Commission publishes plans to accelerate delivery of Capital Markets Union
The Commission has published a new package of proposals that it wishes to see adopted by mid-2019. The proposals will ‘put in place all building blocks of the Capital Markets Union’, and comprise:...
FCA surveys firms passporting into UK
As part of its preparation for Brexit, the Government announced in December 2017 that it would, if necessary, introduce legislation to enable a ‘temporary permission’ scheme for EEA firms and funds which...
ABI publishes framework for the management of ‘gone-away’ customers in the life and pensions market
The Association of British Insurers (ABI) has produced a framework designed to help firms operating in the life and long-term savings market to better identify, trace, verify and manage those customers with whom they...
BoE speech on the future of money
The Bank of England (BoE) has published a speech by Mark Carney, BoE Governor, in which he considers the future of money. In particular, Mark Carney looks at how the developments in money and payments technologies could...
FCA makes new rules
FCA’s latest Handbook Notice confirms changes to: FEES to ensure the life and pensions intermediation class can still benefit from support from the retail pool SUP to align the Financial Crime Annual Return to the...
FCA finalises perimeter guidance on personal recommendations
FCA has published a policy statement setting out its feedback on what is a “personal recommendation” in relation to retail investments, as part of its work on the FAMR. The new guidance, which will be in...
PRA updates on IDD and occasional consultation
PRA has published an update on responses to certain parts of its CP18/17 Occasional consultation. The update explains how PRA prepared to bring into force rulebook changes relating to the implementation of the Benchmark...
CMA updates on investment consultants investigation
The CMA has published an update of its progress on its market investigation into investment consultants and fiduciary managers. Since it started its reference last September, it has, among other things, visited three...
BoE publishes annual report on FMI supervision
The Bank of England has published a report on its supervision of financial market infrastructures (FMI). The report measures performance against its 2017 annual report, as well as looking ahead. The report: Defines FMIs...
TIA launches asset management accelerator
The Investment Association has announced its new FinTech accelerator for the asset management industry, to be called Velocity. It will launch later this year and will take two cohorts per year of between 4-8 firms, and...
FCA writes to CEOs on prudential returns
FCA has published a “Dear CEO” letter setting out its comments on the quality of prudential returns. It is concerned that a significant number of firms are submitting returns that contain inaccurate or...
FCA reminds firms on pensions transfer advice
FCA has published a letter from Megan Butler reminding firms of FCA’s expectations when they are advising on pension transfers. The letter contains details of key publications from FCA on the topic.
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...
Commission updates Brexit pages
The European Commission has updated its website to provide information on how Brexit will affect banking and finance rules. Separate pages address: markets in financial instruments banking and payment services post...
Court dismisses appeal against spread-bet losses
The Court of Appeal has dismissed an appeal by a customer of a spread-betting company (IG Index), who claimed IG Index’s failure to close out in accordance with its terms of business caused him to incur greater...
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...
FCA review of Board Effectiveness
The FCA has published a report of the independent review into the effectiveness of its Board. The review was undertaken by Independent Audit Limited. The review involved interviews with Board members, a review of...
FCA publishes views on PRIIPs performance scenario concerns
FCA has published a statement following concerns raised about the performance scenarios in the PRIIPs KID. Some firms have noted that occasionally this information may appear to optimistic and risk misleading consumers...
EIOPA translates official IBIPs Guidelines
The European Insurance and Occupational Pensions Authority (EIOPA) has published official translations of guidelines under the IDD relating to insurance-based investment products (IBIPs) which incorporate a structure...
FCA consults on widening FOS access for small businesses
FCA has opened a consultation on plans to provide more small businesses with access to FOS. The changes proposed would allow FOS complaints redress to approximately 16,000 SMEs, charities and trusts, by changing the...
FCA publishes policy statement on client money and unbreakable deposits
FCA has published a policy statement in response to feedback received from a consultation on depositing client money in unbreakable deposits. The consultation responded to difficulties faced by investment firms in...
FSCS PUBLISHES PLAN AND BUDGET FOR 2018/2019
The Financial Services Compensation Scheme (FSCS) has published its Plan and Budget for 2018/2019. The Plan and Budget outlines the FSCS’s expected management costs and initial levy forecasts financial services...
The PRA postpones the introduction of its reporting proposals set out Pillar 2 liquidity consultation paper
The PRA has updates its webpage relating to its consultation paper on Pillar 2 liquidity (CP13/17). In its consultation paper, the PRA set out its proposals on a cash flow mismatch risk framework and other...
ECA’S REPORT ON THE OPERATIONAL EFFICIENCY OF THE ECB’S CRISIS MANAGEMENT FOR BANKS
On 16 January 2018, the European Court of Auditors (ECA) published a report on the operational efficiency of the European Central Bank’s (ECB) crisis management for banks. The report states that although the ECB...
IFRS 9 transitional arrangements – EBA Final Guidelines and the PRA’s “Dear CFO” letter
The EBA’s final Guidelines on disclosure requirements of IFRS 9 Following its consultation in July 2017, the European Banking Authority (EBA) has today published its final Guidelines on disclosure requirements of...
Up next from FCA
FCA’s latest Policy Development Update promises, among other things: policy statement on regulatory fees and levies by the end of March; the delayed policy statement on further implementation of the FAMR;...
FCA sends ‘Dear CEO’ letter following CFD market review
Following its review of the contracts for difference (CFD) market, the FCA has written to the CEOs of providers and distributors of CFDs to highlight specific concerns. The letter warns that there are areas of serious...
FCA updates Enforcement Guide as PRIIPs Regulation comes into force
The FCA has published a legislative instrument that amends its Enforcement Guide to reflect the implementation of the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs Regulation). The changes...
AFME publishes post trade DDQ
AFME has published a revised post-trade due diligence questionnaire to help global custodians. The new version harmonises and simplifies the DD process and now includes 20 additional questions to the original 2016...
ESMA uploads MiFID 2 lists
ESMA has published several lists of documents and information relating to MiFID 2. It has published: a public register of derivative contracts subject to the MiFIR trading obligation a list of trading venues...
FCA fines and bans former RBS trader, Neil Danziger
The FCA has fined former Royal Bank of Scotland (RBS) interest rate derivatives trader, Neil Danziger, £250,000 and has prohibited him from performing any function in relation to any regulated financial activity. The...
Charles Randell becomes new FCA and PSR chair
Charles Randell CBE has been appointed the new chair of FCA and the PSR with effect from 1 April.
FCA consultation paper on aligning FSCS levy time period
The FCA has published a consultation paper on aligning the Financial Services Compensation Scheme (FSCS) levy time period (CP18/1). The FCA recently made changes to the FSCS funding arrangements as part of a broader...
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...
MiFID 2 implementation day
MiFID 2 implementation date has finally arrived. We have written an article to remind firms of the key changes and action points. FCA has also published a series of updates covering: transitional arrangements for...
Commission publishes Swiss exchange MiFID 2 equivalence
The Commission has ruled the Swiss Exchange AG and BX Swiss AG as equivalent to regulated markets under MiFID 2.
Increase in limit on Building Societies’ maximum currency transaction size
Treasury has published the Building Societies (Restricted Transactions) (Amendment to the Limit on the Trade in Currencies) Order 2017. This Order increases the limit set out in section 9A of the Building Societies Act...
ESMA consults on draft Securitisation Regulation technical standards
The European Securities and Markets Authority has published three consultation papers on draft technical standards implementing the Securitisation Regulation that is expected to be published by the end of this year. The...
Treasury, FCA and EIOPA issue statements regarding continuity of activities and services after Brexit
Along with the PRA’s publication of consultation papers on its intended approach to supervision of third country firms, the Treasury, FCA and ESMA have recently issued statements providing an update on provision...
FCA updates AIFMD transparency reporting information
FCA has published updated guidance on reporting Annex IV transparency information under the Alternative Investment Fund Managers Directive (AIFMD). The document details: Transparency reporting requirements (pursuant to...
PRA publishes consultation papers on approach to supervision of third country firms after Brexit
The PRA has issued two consultation papers on its approach to branch authorisation and supervision, addressed to international banks and to international insurers. Both consultations close on 27 February 2018. The Bank...
ILPA issues Model Subscription Agreement
In December, the Institutional Limited Partners Association (ILPA) issued the first in a series of model documents to be produced through its Limited Partnership Agreement (LPA) Simplification Initiative. The Model...
Payment Services Regulator requires change to Direct Debit rules regarding switching Facilities Management providers
The Payment Services Regulator (PSR) has published its decision to require the operator of the Bacs payment system, of which the Direct Debit scheme is a part, to change its rules to help clients switch Facilities...
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...
FCA writes to CEOs on PFOF
FCA has written a Dear CEO letter, expressing its concerns on the continued practice of “payment for order flow”. Despite FCA having criticised the practice in the past, it is aware that many brokers are...
ESMA clarifies application of MAR to trading in closed periods in updated MAR Questions and Answers
The European Securities and Markets Authority has published 2 new questions relating to the prohibition on dealings by persons discharging managerial responsibilities during a closed period in its updated MAR Questions...
Suzanne GadoFCA highlights transaction reporting and MAR issues
The latest edition of Market Watch looks at: a reminder that an investment firm’s transaction report must reflect the transaction from its own perspective, reporting its immediate counterparty or client (whether...
EIOPA publishes Opinion on monetary incentives and remuneration between asset managers and insurers
EIOPA has published an Opinion, addressed to national competent authorities (NCAs), which focuses on consumer protection issues related to monetary incentives and remuneration between providers of asset management...
PRA PUBLISHES policy statement on Pillar 2A requirements and disclosure
The PRA has today published a policy statement on Pillar 2A requirements and disclosure (PS30/17), which provides feedback to the responses to the consultation paper ‘Pillar 2A requirements and disclosure’ (CP12/17)...
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 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...
Final text of ‘Basel IV’ published
The Basel Committee has endorsed the final set of reforms to Basel III (referred to by some as Basel IV). These reforms will mainly affect the affect the methodologies used by banks in calculating risk weighted assets. ...
PRA publishes final Policy Statement and Supervisory Statement regarding insurance special purpose vehicles
Following the publication of the Risk Transfer Regulations 2017 earlier this week, the PRA has now published the updated versions of Policy Statement (PS 26/17) and Supervisory Statement (SS 8/17) on the authorisation...
Risk Transformation Regulations 2017 published
The government has published the Risk Transformation Regulations 2017 (Regulations), which come into force on 8 December 2017, following publication of the draft text by HM Treasury in July. The Regulations enable the...
FCA speaks on global capital market regulation and AMLTech
Megan Butler has spoken on the fundamental importance of co-ordination between national regulators, particularly in dealing with financial crime and cyber-threats. She looked at the particular benefits and risks that...
Regulation of crypto-currencies under negotiation
The UK government has published the answer to a written question asked of HM Treasury that reveals that they are in the process of negotiating amendments to the 4th Anti-Money Laundering Directive to bring virtual...
IFRS 9 transitional Regulation published
There has been concern about the anticipated regulatory capital impact when International Financial Reporting Standard 9 is implemented from January 2018, resulting from some firms seeing a significant increase in...
Treasury makes PRIIPs Regulations
Treasury has made the PRIIPs Regulations 2017, which will come into force on 1 January 2018. The Regulations: designate FCA as the competent authority for the PRIIPs Regulation gives FCA powers where a person has...
FCA speaks on financial advice
Megan Butler has spoken on assessing the value of financial advice. She spoke of the growing importance of financial advice as increasing numbers of people need help making “sense” of their choices. Recent...
IAIS consults on draft Issues Paper on Index Based Insurances
The International Association of Insurance Supervisors has opened a consultation on a draft paper setting out issues on Index-based Insurances. Index Based Insurances involve contracts where a claim is defined with...
FCA succeeds in investment scheme prosecution
Two individuals have been found guilty of various offences relating to carrying on regulated activities without authorisation, false and misleading impressions and being a company director contrary to the Theft Act, in...
Up next from FCA
FCA’s latest Policy Development Update promises the following publications before the end of 2017: Policy Statement on formalisation of the debt concession for smaller credit unions Policy Statement on market...