Companies House has confirmed that: from 25 February, it will be able to expedite striking off companies where the registrar concludes the company has been formed for a false basis and will be able to carry out checks...
Category - Topics
Emma RadmoreMotor finance commissions and lender liability: the story so far
Amid reports that now HM Treasury is seeking to intervene in the Supreme Court case, read our article summarising what’s happened so far…..
PRA outlines supervision priorities for international banks and deposit takers in 2025
The PRA has published Dear CEO letters to international banks and designated investment firms, and UK deposit takers, setting out its supervision priorities for 2025. The need for robust governance, risk management and...
Laura WilesJanuary employment update
This month, we have a few interesting cases and a couple of other snippets from the employment world. CASES UPDATE Alexis v Westminster Drug Project [2024] EAT 188 The Employment Appeal Tribunal (EAT) had to decide...
Karen Plumbley-JonesFCA publishes summary grounds of intervention in motor finance appeal
The FCA has published summary grounds of intervention in support of its application to intervene in the appeals relating to motor dealer-broker commissions. The FCA wants to intervene in writing and for up to an hour...
FCA highlights simplification as means of supporting growth
The FCA’s letter in response to the Prime Minister setting out how the FCA wants to collaborate with the Government to encourage growth highlights the work the FCA has already done in the wholesale markets to...
2025 survival guide: 10 things to be aware of
We’ve put together a quick guide to 10 key things for financial institutions to keep an eye on in 2025, across all areas of business.
PRA suggests “concierge” service for inbound firms to improve competitiveness
In response to a letter of 24 December 2024, the PRA has written to the Prime Minister, Chancellor and Secretary of State, setting out its ongoing work and plans to advance competitiveness and growth. The PRA sees its...
FCA Chief Executive responds to House of Lords motor finance commission questions
In a letter dated 17 January 2025, Nikhil Rathi (Chief Executive of the FCA) responded in detail to questions raised by the Rt. Hon Lord Forsyth of Drumlean in his capacity as Chair of the Financial Services Regulation...
Stephen WilsonChancellor to host industry forums on Financial Services Growth and Competitiveness Strategy
To inform the design of the inaugural Financial Services Growth and Competitiveness Strategy, the Chancellor is set to host a series of Industry Forums to seek views on the best way to deliver long-term in the sector...
LSB finds consumers lack awareness of BNPL costs
The Lending Standards Board (LSB) has published new research which concludes that consumers do not understand the true costs of Buy-Now, Pay-Later (BNPL) products. Data showed that: Only 52% of BNPL users were aware of...
FCA writes to Government on supporting growth
In response to a letter of 24 December 2024, the FCA has written to the Prime Minister, Chancellor and Secretary of State, setting out its ongoing work and plans to support growth. Digital innovation The FCA outlined...
PRA delays Basel 3.1 implementation
The PRA, in consultation with HM Treasury, has decided to postpone the implementation of the Basel 3.1 framework by one year to 1 January 2027. The delay will allow more time for clarity on how the framework will be...
Reminder: new DBS check requirement for controllers
We reported in December on the upcoming changes to FCA’s processes to require would be controllers of authorised or registered firms to have DBS checks, conducted within the 6 months before the application...
AIC writes to FCA about Saba investment trust action
The Association of Investment Companies has written to the FCA to express concerns about US activist investor Saba Capital Management’s requisition of general meetings at 7 investment trusts. The AIC is concerned...
Michael LewisPSR publishes new strategy
The PSR has published its strategy for the next 2 years. It is now mid-way through a 5 year strategy, and has made strong progress in delivering positive change. It now needs to: complete work already underway...
PRA speaks on stress testing and launches LIST 2025
The PRA has launched its life insurance stress test for 2025. The exercise will: assess sector and firm resilience to severe but plausible adverse scenarios; strengthen market understanding and discipline; and improve...
Opportunities and risks for Scottish financial institutions
We wrote a piece for the Scotsman on the risks and opportunities the new GB Energy HQ in Aberdeen presents for financial institutions in Scotland – not least in the demand for financing for renewable energy...
Chris McLauchlanASA upholds complaint against investment training programme
The ASA has upheld a complaint against Zimran Ltd t/a Prosperi Academy. Prosperi Academy is an app offering financial investment training courses. The ad showed an individual’s bank account balance increasing in...
Government responds on governance of AI
The Government response to recommendations of a commons committee on governance of AI agrees that AI-specific legislation is needed and that it will consult on legislation that will apply to the still small number of...
Government updates on UK-China financial services cooperation
Following the latest meeting between the Chancellor and the Chinese Vice Premier, the Government has confirmed its agreement with China to improve cooperation and capital market connectivity between the countries. Many...
OFSI and OFAC sign sanctions MoU
OFSI and OFAC have entered into a MoU (signed in October 2024) to help exchange of information and cooperation between the two bodies in administering and enforcing financial sanctions. The MoU sets out the desire for...
FSB considers relevance of climate transition plans for financial stability
The Financial Stability Board (FSB) has published a report on the relevance of climate transition plans for financial stability. The FSB found that in providing forward looking information, climate transition plans can...
Ring fencing changes regulations made
Changes to the ring-fencing regime will take effect in February and will implement changes to improve how the regime works. The changes both resolve unintended consequences of the current law, provide greater...
OFSI and OFAC sign MoU
HMT has published a MoU between the Office of Financial Sanctions Implementation (OFSI) and the United States Office of Foreign Assets Control (OFAC), to facilitate the exchange of information between the organisations...
Designated Activities enforcement Regs take effect
The Regulations amending FSMA to give the FCA necessary supervision and enforcement powers in respect of the new Designated Activities have been made and take effect on 14 January. The new powers apply in respect of the...
BoE updates on digital pound
The BoE has published a report setting out the work it has done in the last year on the digital pound and the evolving payments landscape. The regulator has been working with HMT to explore the possibility of a digital...
FCA sets out expectations on redress liabilities and “polluter behaviours”
The FCA is increasingly seeing firms attempt to avoid potential or actual liabilities whilst still benefitting from the assets of the business, which it calls “polluting behaviour”. It has published new...
PRA outlines insurance supervision priorities for 2025
The PRA has published a Dear CEO letter to PRA-regulated insurance firms, setting out its supervision priorities for 2025. The key priorities reflect the ongoing developments in the context for life and general...
Regulators consult on FSCS management expenses levy limit 2025/26
The FCA and PRA are consulting on proposals for the Management Expenses Levy Limit (MELL) for the FSCS in 2025/26. The regulators propose the MELL for 2025/26 will be £108.6m, consisting of: the FSCS management expenses...
FCA fines Arian Financial for failings relating to cum-ex trading
The FCA has fined Arian Financial LLP £288,962.53 for financial crime systems and controls failures. The firm’s failure to implement adequate measure put it at risk of being used to support fraudulent trading and...
FCA sets out strategy for credit reference agencies and service providers
The FCA has published a portfolio letter to credit reference agencies (CRAs) and credit information service providers (CISPs) setting out its strategy for the next two years. The priorities will focus on: Embedding of...
HM Treasury confirms continuation of pension fund clearing exemption
Following a call for evidence in November 2023 on the exemption pension funds currently have from the obligation to clear certain derivates contracts at a central counterparty, HM Treasury has published responses from...
FCA objects to Change in Control due to notification failures
The FCA has issued a final notice objecting to the proposed acquisition of Olampicaran Limited by Mr Ahmed, who had failed to notify and seek approval from the FCA. Olampicaran was a small payments firm providing money...
FCA looks at bias in natural language processing
The FCA has published a research note that looks at bias in the specific context of word embeddings. Word embeddings are used by many natural language processing applications and as an alternative to large language...
Treasury Committee asks whether LISA still fit for purpose
The Treasury Committee is asking for evidence on whether the LISA is still an appropriate financial product. The product was introduced in 2016, and has as its main benefit enabling under 40s to contribute up to £4,000...
1 crypto registration approved last month
The FCA has updated its statistics on applications by crypto firms for registration under the MLRs. The latest stats show that 1 firm succeeded in becoming registered last month, while 2 applications were withdrawn...
UK designates extreme right wing group under sanctions legislation
The Government has designated “Blood and Honour” (and any aliases it uses) under the sanctions regime, imposing a full asset freeze on it with effect from 8 January. It says it has reasonable grounds to...
Motor finance appeals listed for April 2025
The Supreme Court hearings on the Hopcraft, Wrench and Johnson motor finance cases have been listed for 1-3 April 2025, although it is possible this may change.
FCA hints at P2P sector review
The FCA’s response to the Complaints Commissioner report in relation to a complaint about a P2P firm suggests it may be considering a more detailed review of the sector. The complainant had alleged that the FCA...
Court refuses JR application on mis-advised SIPP investment
The High Court has refused an application for judicial review of the FSCS’s refusal to reconsider a compensation determination in respect of three investors who lost money after transferring funds from their...
Lords Committee writes to FCA on motor finance commission cases
The House of Lords Financial Services Regulation Committee has written to the FCA asking it to clarify certain elements of its position on the motor finance commission cases, as set out in a letter dated 13 November...
Regulators review MoU on payments systems
The BoE, FCA, PRA, PSR have reviewed their MoU on payments systems in the UK, as they are required to do on an annual basis. The regulators noted that over the past year they have taken steps to improve the sharing of...
FCA executes search warrants in relation to unauthorised businesses
The FCA, in conjunction with the West Midlands Police, the Eastern Region Special Operations Unit and Police Scotland, has executed search warrants in two investigations involving unauthorised debt and claims management...
FCA issues Supervisory Notice to Hydrogard Legal Services
The FCA has published a First Supervisory Notice against Hydrogard Legal Services Limited, a firm with claims management permissions, requiring it to immediate cease carrying on all regulated activities other than with...
FCA sets out updates to the National Storage Mechanism
Following a consultation, the FCA has set out its enhancements to the National Storage Mechanism (NSM). The changes will introduce more comprehensive metadata requirements to improve functionality, making it easier for...
FCA publishes latest Handbook Notice
The FCA has published its latest Handbook Notice, which confirms the following updates: Introduction of criminal background checks on owners and controllers at the authorisation gateway. The change is in line with a...
Regulators publish cyber findings for 2024
The BoE, PRA and FCA have published their latest annual CBEST thematic report. The report assesses the cyber resilience of key financial institutions through security testing performed in ‘live’ corporate...
FMSB publishes final client onboarding standard
The Financial Markets Standards Board (FMSB) has published its final Standard for Client Onboarding: Documentation and Processes. The Standard has been drafted to allow onboarding firms to continue to fully apply the...
FCA asks Collateral investors to come forward for an apology
The FCA has apologised to people who invested in peer-to-peer firm Collateral, whose directors fraudulently changed the firm’s details on the FCA’s interim permission register to make it look like it had...
FCA and BoE update MoU
The BoE and FCA have updated their Memorandum of Understanding, which they use to co-ordinate and co-operate in carrying out supervision of FMIs.
FCA consults on CCI framework
The FCA is consulting on how it plans to build the new UK regulatory framework for Consumer Composite Investments, brought in to replace the EU PRIIPs concept. As we’ve previously reported, legislation creates a...
FCA charges former WealthTek partner
The FCA has brought criminal charges against John Dance, the principal partner at WealthTek LLP, in relation to 9 criminal offences, including multiple counts of fraud and money laundering. WealthTek, then known as...
FCA confirms pause on non-DCA complaints
The FCA has confirmed new temporary rules for handling motor finance non-DCA commission complaints, that broadly mirror those already in place for DCA commission related complaints. Firms will not have to provide a...
Green Finance Institute sets new taxonomy
The Green Finance Institute’s Land, Nature and Adapted Systems Advisory Group has published advice with a taxonomy for mobilising adaptation and resilience investment in the UK. Its report says that in the absence...
ShareAction writes to banks on sustainable finance
ShareAction has written to the CEOs of the 20 largest banks in Europe, urging them to set targets based in science to show how they are funding sectors that are crucial to net-zero transition. The charity has previously...
FOS updates on motor finance complaints
The FOS has updated its website to reflect the High Court judgment on DCAs that went in FOS’ favour. It says it is carefully considering what the judgment means for other similar cases in its current workload. The...
ASA rules on Lloyds ads green claims
The ASA has published its ruling in relation to 4 challenges brought in relation to a poster and three paid-for LinkedIn posts from Lloyds. It upheld 1 of the challenges only: in relation to the poster, this showed a...
PRA sets out policy on solvent exit planning for insurers
Following a consultation, the PRA has published a policy statement on solvent exit planning for insurers. The PRA had proposed new rules and expectations that firms must prepare for a solvent exit as part of their...
PRA postpones launch of dynamic insurance stress test
The PRA has announced that it is postponing the launch of the dynamic general insurance stress test (DyGIST) until May 2026. The delay is intended to reduce the burden on general insurers in 2025 as they prepare to...
FCA sets out findings on young investors’ decision-making
The FCA has found that two thirds of young investors take less than 24 hours to make an investment decision. Their latest research surveyed 2,000 UK investors aged 18 – 40, who had purchased a viral trend and...
Employment guidance update December 2024
There’s been some new guidance and other interesting papers on employment-related themes over the past month. Acas guidance on sexual harassment – Acas has updated its guidance on sexual harassment to reflect the...
Charlotte BloomfieldEmployment legislation update December 2024
The Employment Rights Bill is the key legislative development to keep an eye on in the employment space, and you can follow developments on our new timeline, but it’s not the only development of interest in the...
Dan FawcettHigh Court backs FOS on DCA complaint
The High Court has dismissed all 3 grounds of appeal brought by a lender under a discretionary commission arrangement (DCA) for motor finance, following a FOS decision to uphold a customer complaint. The grounds of...
FCA successfully appeals Upper Tribunal decision
The Court of Appeal has allowed the FCA’s appeal against an Upper Tribunal decision which asked the regulator to reconsider a proposed ban against an individual and directed that a fine should not be imposed. In...
Employment cases update – December 2024
We are pleased to introduce into FIN a series of monthly updates from our employment team. This post looks at a few interesting cases. De Bank Haycocks v ADP RPO UK Ltd [2024] EWCA Civ 1291 The Court of Appeal had to...
Jon HalesFCA consults on PISCES platform framework
The FCA is consulting on the proposed framework for its Private Intermittent Securities and Capital Exchange System (PISCES). PISCES will be a new type of trading platform, enabling intermittent trading of private...
LSB review highlights importance of SME protections
The LSB’s review of registered firms’ application of its Standards of Lending Practice for business customers has found 102 areas where action has been required to bring firms into compliance with the...
PRA publishes authorisations performance report for Q3 2024
The PRA has published its report on its authorisations performance during Q3 2024/25, During the relevant period from 1 September to 30 November 2024, the PRA achieved 100% compliance with its service standards across...
FCA fines and bans a director and financial adviser for pension transfer advice
The FCA has banned and fined a director and financial adviser in relation to pension transfer advice failings. Richard Fenech was the sole director of Financial Solutions Midhurst Limited (FSML), responsible for...
BoE speaks on future of RTGS service
Victoria Cleland, Executive Director of Payments at the BoE, has given a speech on the Future Roadmap for BoE’s Real Time Gross Settlement (RTGS) service, at FinTech Connect. The BoE published a discussion paper...
BBRS Contemporary Scheme closes to new registrations
The BBRS’ Contemporary Scheme has closed to new registrations, as planned, at midnight on 13 December 2024. The BBRS will remain open to resolve complaints for customers that registered before the deadline. The...
FOS receives over 4,800 new cases from businesses
The FOS has received more than 4,800 new cases from small businesses this financial year. The most recent data covers the period from April – November 2024, and demonstrates that fraud and scams remain the most...
FCA seeks comments on cryptoasset market abuse and admission and disclosure regimes
The FCA is seeking comments on its approach to cryptoasset Admissions and Disclosures, and the Market Abuse Regime for cryptoassets (MARC). In November 2024, the government confirmed it will proceed with legislation to...
FCA publishes markets supervision letters
The FCA has published a further series of portfolio supervision letters. They are addressed to: data reporting services providers; custody and fund services providers; contracts for differences providers; trading...
FOS updates on reports involving Consumer Duty
The FOS has published information on how the Consumer Duty relates to the complaints it looks at. It notes that the CD is not relevant to all complaints but may be a relevant consideration in complaints about things...
Regulators consult on operational incident and third party reporting
The FCA has published a consultation paper on proposals to require firms to report operational incidents and their material third party arrangements. The requirements will apply to authorised firms and PSPs as well as...
FCA publishes discussion paper on pensions regulation
The FCA has published a discussion paper on adapting requirements in the pensions sector. The FCA noted that these is a programme of policy changes underway to this area of the market, but wants the paper to stimulate...
FCA consults on reforms to advice guidance boundary for pensions
As part of its Advice Guidance Boundary Review, the FCA is consulting on targeted support reforms for pensions. The FCA identified a gap in the market between regulated, holistic advice to individuals at one end, and...
FCA conducts literature review on bias in supervised machine learning
The FCA has published a literature review on bias in supervised machine learning. It is the first of a series of planned research notes on bias in AI. The research note found: The main potential source of bias was data...
Supreme Court grants permission to appeal in motor finance cases
The Supreme Court has granted Close Brothers and FirstRand Bank permission to appeal in the cases of Johnson v FirstRand Bank t/a Motonovo Finance, Wrench v FirstRand and Hopcraft v Close Brothers. The cases all relate...
FCA sets out areas for improvement in complaints and root cause analysis
Following a review into 40 firms across a range of sectors, the FCA has set out guidance on good practice and areas for improvement for firms’ approaches to complaints and root cause analysis. The FCA identified...
FCA sets out good practice for Consumer Duty board reports
Following a review into 180 firms’ approaches to completing the first annual Consumer Duty board report, the FCA has set out guidance on good practice and areas for improvement. The FCA noted that the best reports...
FOS consults on 2025/26 plans and budget
The FOS is consulting on its proposed plans and budget for 2025/26. The FOS noted that due to the uncertainty around motor finance commission cases, and the wider regulatory review of the redress framework, its plans...
FOS publishes Independent Assessor’s annual report for 2023/24
The FOS has published the Independent Assessor’s report for the financial year 2023/24. During this period, the FOS resolved 192,077 cases, with 1.8% of those customers lodging complaints about the service. Of the...
FCA publishes mortgage lending statistics for Q3 2024
The FCA has published mortgage lending statistics for Q3 2024. The data comes from firms carrying out mortgage lending and mortgage administration, who are required to submit the Mortgage Lending and Administration...
Treasury kickstarts financial inclusion strategy
Several large financial institutions including Lloyds Banking Group, Aviva and Experian as well as consumer bodies are forming a new committee which will feed in to the Government’s development of next...
FCA updates on business loan guarantee super-complaint
The FCA has collected data from lender firms as a follow up to the super-complaint from the Federation of Small Businesses about the use of personal guarantees for business loans to SMEs. The complaint had noted that...
FCA highlights Consumer Duty focus areas
The FCA has set out its priorities under the Consumer Duty for the rest of 2024 and 2025. These are: embedding the Duty and raising standards: within this priority, the FCA wants to understand how firms are improving...
FCA updates perimeter report
The FCA has updated its Perimeter Report. The report highlights the FCA’s remit and powers, including the new Designated Activities Regime, and then lists the key areas of harm linked to the perimeter and some key...
FCA speaks on sustainable investment products
Sacha Sadan, the FCA’s director of sustainable finance, has spoken on the impact of the sustainable investment product regime. He noted that the FCA’s Financial Lives survey had shown that 81% of adults...
FCA quarterly consultation includes PEMC limit increase
The FCA’s latest quarterly consultation includes proposals to: clarify some consumer credit product PSD reporting; increase the current £100 medical condition premium trigger that means firms must signpost...
ABI finds diversity improvements
The ABI has found the insurance and long-term savings industry is making progress towards better diversity, but that further development is hindered by a reduction in apprenticeship offerings across the sector.
Lords Committee publishes FCA enforcement position letter
The House of Lords Financial Services Regulation Committee has published a letter from Nikhil Rathi answering some questions the Committee has asked following the FCA’s appearance before them. The letter mainly...
FCA looks to appoint bond consolidated tape provider
The FCA is starting a tender process to appoint a bond consolidated tape provider. It will publish all tender documents by the end of January, and invite bidders to ask questions before it issues the final tender...
Treasury makes Singapore equivalence decision
The Markets in Financial Instruments (Equivalence) (Singapore) Regulations 2024 take effect on 31 December 2024 and designates a list of 18 Singaporean trading venues as equivalent to the UK in terms of regulatory...
FCA writes to Supreme Court on motor finance
The FCA has written to the Supreme Court supporting the application of the lenders in the Hopcraft, Wrench and Johnson motor finance commission cases for expedition of the court’s decision on the application to...
BoE speaks on FX market lessons and settlement risk
Philippe Lintern, head of BoE’s foreign exchange division, has delivered a speech on lessons learnt from the history of the FX market, at FX Markets Europe. Lintern began by describing the success story of the...
FCA updates derivatives trading obligation
The FCA has updated its direction relating to the Derivatives Trading Obligation (DTO) with effect from the end of 2024. The DTO came from MiFID, and the FCA is now modifying the UK’s DTO from the transitional...
IRSG publishes response to competitiveness and growth objectives inquiry
The International Regulatory Strategy Group (IRSG) has published its response to the House of Lords Financial Services Regulatory Committee’s inquiry into the FCA and PRA’s secondary international...