The FCA has fined Kristo Käärmann, CEO of Wise plc and SMF1 and SMF3 of Wise Assets UK, after he failed to consider the significance of tax issues and did not notify the FCA of them. Mr Käärmann had been fined over...
Category - Topics
Emma RadmoreFCA publishes retail banking portfolio letters
The FCA has published its latest portfolio supervision letters for retail banks and building societies. It has set 6 unsurprising priorities: Consumer Duty: looking at institutions to fully embed the Duty to deliver...
How will the new Data (Use and Access) Bill impact DSARs?
🤖 The Bill reinstates the limitation on the restriction of automated decision-making to only those decisions based partly or wholly on special category personal data. The financial services sector has been an early...
Katie SimmondsFCA publishes mortgage portfolio supervision letters
The FCA has published Dear CEO letters to lifetime mortgage providers and non-bank mortgage lenders and third party mortgage administration firms. The key themes are: how changes in the market are driving many...
Court of Appeal allows consumer appeals in motor finance cases
The Court of Appeal has allowed the appeals from consumers in three cases relating to motor finance. It heard the cases of Johnson v FirstRand Bank t/a Motonovo Finance, Wrench v FirstRand and Hopcraft v Close Brothers...
FCA publishes culture and non-financial misconduct survey findings
The FCA has published a report setting out key findings from its February 2024 survey on culture and non-financial misconduct. The survey was issued to 1,028 regulated wholesale firms, and enquired about recorded...
Laura WilesFCA publishes Q3 fin proms data
The FCA has published its financial promotions data for Q3 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 10,593...
FCA speaks on vulnerability in the wealth management sector
Graeme Reynolds, director of competition at the FCA, delivered a speech on competition and vulnerability at the Personal Investment Management & Financial Advice Association’s (PIMFA) Wealth Vulnerability...
FOS warns on lack of understanding of s75
The FOS has said that failing to understand the rules around claims under s75 CCA can affect consumers’ chances of getting their money back. Its guidance debunks several myths: that s75 only helps if the purchase...
Latest complaints figures show huge rise
The FOS has published the complaints figures for the first half of 2024. The figures show a rise of over 40% compared to the same period last year, with over 130,000 complaints being received. The increases, and year on...
PRA updates on LACDT permission
The PRA has not yet published its feedback on its proposals for a permission in respect of recognising an increase in deferred tax assets by firms in their calculation of the loss-absorbing capacity of deferred taxes...
FCA and Practitioner Panel publish 2023/24 survey findings
The FCA and the Practitioner Panel have published a report setting out the findings of their 2023/24 joint survey of regulated firms. The majority of responding firms had a positive view of the FCA’s performance...
FCA finds non-bank lenders could do better on financial resilience
The FCA has published the results of a multi-firm review of consumer credit and non-bank lenders in which it looked to assess their approach to financial resilience. It chose firms with a wide range of business models...
FCA restricts ISA Manager business over platform failings
The FCA has placed restrictions on Business Agent Limited in respect of failings related to its “Nextcrowd” platform. As a result the form can no longer act as an ISA manager. The FCA’s concerns...
FCA targets illegal finfluencers
The FCA is interviewing 20 “finfluencers” under caution in a targeted action against social media account holders which may be promoting financial services products illegally. It has also issued 38 alerts...
PRA speaks on competing for growth
Sam Woods, Deputy Governor for Prudential Regulation and CEO of the PRA, delivered a speech on competing for growth at the Annual City Banquet. The speech focussed on the secondary competitiveness and growth objective...
PSR seeks industry views on card-acquiring remedies
The PSR is asking businesses for their thoughts on how the remedies put in place to make it easier to compare prices on card-acquiring services and to switch providers are working. It is seeking views on: how easy...
OFSI updates guidance
OFSI has updated its guidance on counter-terrorism sanctions. The guidance reflects recent updates to secondary legislation made under SAMLA (most recently the June update in relation to the director disqualification...
FCA speaks on crypto-registration approach
The FCA has spoken about its approach to registration of crypto-asset firms, countering accusations that it is being too tough at the registration gateway and as a result stifling innovation. The FCA’s stance is...
FCA fines finance company over fair treatment
The FCA has fined Volkswagen Financial Services (UK) Limited over £5m in a package that also involves the firm in paying £21.5m redress to customers who may have suffered harm over the firm’s failure to treat...
Complaints Commissioner criticises FCA over status disclosure complaint
The Complaints Commissioner has published its final report relating to a complaint about how the FCA handled an issue relating to status disclosure. The complainant contacted the FCA to complain about a lack of clarity...
BoE consults on 2024/25 supervisory fees for financial market infrastructure
The BoE has published a consultation paper setting out proposals for its supervisory fees for financial market infrastructure for 2024/25. Key proposals include: Spreading the charging for one-off costs related to...
FATF updates grey list criteria
The FATF has updated the criteria for its “grey list“, which sets out jurisdictions under increased monitoring who are working with the FATF to address with agreed timeframes the strategic deficiencies in...
PRA consults on large exposures framework
The PRA has published a consultation on the prudential framework for large exposures, which – alongside risk-weighted capital requirements – aims to protect firms from large losses resulting from the sudden...
FCA speaks on growth and enforcement proposals
Nikhil Rathi, FCA Chief Executive, delivered a speech on growth at the Annual City Banquet. His speech highlighted the FCA’s literature review on links between financial regulation and growth and that it will...
FCA welcomes TFMR report
The FCA has welcomed the report and recommendations from the Transition Finance Market Review. The review looks at the opportunities that transition finance presents for the UK and the hugely important role of private...
Treasury consults on BNPL
Treasury has published the long-awaited consultation on BNPL. The Government has decided largely to follow the policy decision that the previous Government seemed on the cusp of making – that is that all...
G7 Cyber Expert Group publishes guidance on combatting quantum computing risks in the financial sector
The G7 Cyber Expert Group (CEG) has published a statement highlighting potential cybersecurity risks arising from developments in quantum computing, and how these may be addressed by the financial sector. The CEG...
FCA celebrates 10 years of innovation
Jessica Ruso has spoken at the FCA Innovation 10th anniversary event, looking back at the FCA’s innovative initiatives over the past 10 years and forward to the future. The event marks 10 years of the regulatory...
HMT publishes Banking Liaison Panel Terms of Reference
HMT has published the Banking Liaison Panel Terms of Reference, which include reference to: The Panel’s remit, including its broad purpose and the specific functions set out under section 10(2) of the Banking Act...
HMT adds draft recapitalisation chapter to Banking Act: special resolution regime code
HMT has added a new chapter to the Banking Act 2009: special resolution regime code of practice. The new chapter provides draft details of the recapitalisation payment mechanism introduced in the Bank Resolution...
UK-Switzerland financial dialogue discusses AI
The first formal meeting of the UK-Switzerland Financial Dialogue since the conclusion of the Berne Agreement took place on 15 October. Among the topics discussed were: domestic implementation of the Berne agreement...
Government and FCA launch motor insurance and premium finance task forces
The Government has launched a task force to identify actions that may stabilise or reduce motor finance premiums. The FCA will help with the study and will look at the causes of increased costs and will examine claims...
PRA consults on CRR assimilated law
The PRA has published a consultation on how it plans to restate the relevant provisions from the assimilated CRR into the PRA Rulebook and other policy material. The changes would involve the creating of two new parts...
FCA updates regulatory initiatives grid
The FCA has published an interim update on its Regulatory Initiatives Grid. It had postponed the scheduled 8th edition because of the election and says that the replanning required as a result means that there...
BoE consults on amending MREL approach
The BoE is consulting on restating, where appropriate and with modifications, of UK Capital Requirements Regulation total loss-absorbing capacity (TLAC) provisions to the minimum requirement for own funds and eligible...
Treasury publishes draft PRIIPs replacement regulations
The draft Consumer Composite Investments (Designated Activities) Regulations 2024 have been published. The Regulations will repeal all assimilated law relating to PRIIPs and create a UK regime of “consumer...
Operational Resilience
See our article, for Compliance Monitor, on getting ready for the new operational resilience requirements.
FCA updates Climate Financial Risk Forum pages
The FCA has updated its CFRF information on its website with details of the October 2024 guides. The new guides relate to: nature-related risk – a handbook for financial institutions; short term scenarios; and...
FCA speaks on supervisory strategy
Nick Hulme, head of the FCA’s advisers, wealth and pensions, consumer investments department, has spoken on the FCA’s tweaked supervisory focus. He said the FCA continues to focus on good client outcomes and...
FCA publishes TechSprint information
The FCA has published videos and supporting information from:
its Market Abuse techsprint and
its Financial Inclusion techsprint
Payment Delay Regulations to take effect on 30 October
Treasury has made the Payment Services (Amendment) Regulations 2024. They will take effect on 30 October and amend regulation 86 of the PSRs that requires PSPs to execute payment transactions within set timeframes. The...
Market Watch focuses on SYSC 6 and UBOs
The latest edition of Market Watch looks at how firms can ensure compliance with SYSC 6.1.1R when dealing for overseas clients who operate aggregated accounts that provide no visibility of the UBOs. Firms will often...
FCA publishes payments Consumer Duty multi-firm review
The FCA has published the results of its multi-firm review into how 23 payments firms have implemented the Consumer Duty. It carried out its survey in January, and included firms from across the payments portfolio. It...
FCA updates on crypto applications
During the month to 1 October 2024, the FCA received 4 new applications from firms seeking to register as crypto firms under the MLRs, making a total of 364 since January 2020. It registered one firm during the period...
FCA updates website on consumer credit reporting
The FCA has updated its website on reporting requirements for consumer credit firms to take account of the upcoming changes to Product Sales Data reporting that will take effect from October 2025 and April 2026 for...
Treasury publishes draft PRIIPs disclosure amendment Regulations
Treasury has published a draft Statutory Instrument that will take investment trusts that are UK listed outside the scope of PRIIPs disclosure requirements. Once the Regulation is made, Treasury wants it to take effect...
UNEFI publishes responsible banking blueprint
The UN Environment programme finance initiative (UNEFI) has published a responsible banking blueprint, setting out a roadmap for action. It looks at: strategy internal processes and policies portfolio composition and...
PRA consults on changes to resolution assessment reporting
The PRA is proposing to carry out, together with the BoE, the third assessment of firms’ resolvability in 2026-27. It is consulting on a proposal to require relevant firms to submit their next reports to the PRA...
FCA speaks on “predictable volatility”
Nikhil Rathi has spoken on the volatility of capital markets and on how one small “blip” can have a significant ripple effect. He noted how things that used only to happen rarely now happen more frequently...
FCA sets clear expectations on APP fraud reimbursement
The FCA has wasted no time. On the day the new reimbursement requirement for APP frauds using FPS or CHAPS took effect (7 October), it has written two Dear CEO letters, one to banks and building societies and one to...
Regulators herald APP scam reimbursement requirement
The PSR and other regulators have welcomed the effective date of the APP scam reimbursement requirement, applicable to payments made over FPS and CHAPS between UK bank accounts. The PSR stressed that: over 99% of claims...
FCA sets out financial adviser expectations
The FCA’s latest portfolio supervision letter to financial advisers and investment intermediaries sets out where it sees the most potential harms that the sector could generate and its expectations on firms...
BCAP consults on Code amendment for unregulated investments
The Broadcast Committee of Advertising Practice is consulting on an amendment to its Code in respect of how it restricts advertising for certain products. There is already in place a rule that restricts ads for certain...
ECCTA guidance on AML information sharing
The Department for Business and Trade has published guidance on the information sharing measures under the ECCTA 2023 for use by AML regulated firms. The guidance aims to help firms ensure that when they share...
Government finalises payment delay regulations
The final draft of the Payment Services (Amendment) Regulations 2024 confirms that PSPs can delay the execution of certain payment orders where the PSP establishes reasonable grounds to suspect the order has been made...
PSR publishes policy statements confirming APP scams reimbursement limit
Following its recent announcement confirming that it is reducing the maximum level that PSPs will have to reimburse APP scam victims to £85,000 per claim, the PSR has published two policy statements setting out details...
Court of Appeal confirms acceptance of PPI commission redress validly compromised claims
The claimants brought separate claims against Skipton Building Society and Santander Cards UK Limited, alleging that their respective relationships under credit agreements held with each firm were unfair on the basis...
FCA succeeds in BlueCrest redress scheme appeal
Following an Upper Tribunal decision in June 2023 which upheld an application by BlueCrest Capital Management (UK) LLP to summarily strike out a redress requirement imposed by the FCA for its purported breaches of...
FCA fines Starling Bank £29m for financial crime control failings
The FCA has fined Starling Bank Limited approximately £29m for financial crime failings related to its financial sanctions screening process, and for repeatedly breaching a requirement not to open accounts for high-risk...
Autumn budget to be held on 30 October
The Government has announced that an Autumn Budget will be held on 30 October. The last budget, in spring, was of course under the previous government. Although the Budget is usually an annual event, on a change of...
FCA confirms forbearance in relation to investment trust disclosure requirements
Following the Treasury’s announcement that it would be excluding certain investment trusts from the PRIIPs Regulation and other EU-assimilated law, the FCA has confirmed it will be applying new regulatory...
Regulators publish joint statement on the end of LIBOR
The FCA, BoE and the Working Group on Sterling Risk-Free Reference Rates have issued a joint press release on the end of LIBOR. On 30 September 2024, the remaining synthetic LIBOR settings were published for the final...
FCA and BoE publish digital securities sandbox policy statement
Following a joint consultation on creating a Digital Securities Sandbox (DSS), the FCA and BoE have published a policy statement setting out their approach to safely adopting new technologies in the operation of...
UK Finance respond to FSB recommendations on cross-border payments services
UK Finance has responded to two consultations from the FSB, relating to the regulation and supervision of cross-border payment services providers (PSPs) and aligning cross-border payments and data frameworks. In the...
PRA speaks on insurance supervisory approach
Shoib Khan has spoken on the PRA’s secondary competitive and growth objective. The main theme of the speech was how the PRA is taking a differentiated supervisory approach for different market segments, which is...
PRA to contact firms about current waivers
In November, the PRA will be contacting insurers who have waivers or modifications under its current rules to let them know whether they will need to request consent to vary the wording of their existing directions so...
PSR confirms £85,000 reimbursement limit
The PSR has confirmed that the maximum reimbursement limit for APP scam victims will be £85,000 from 7 October. The BoE has followed suit in relation to CHAPS payments.
FCA consults on payments safeguarding reform
The FCA is consulting on radical changes to the safeguarding rules for payment and e-money firms, to bring the requirements within a CASS style regime and in the interim while this transition takes place strengthen the...
PSR updates powers and procedures guidance
The PSR has published an updated version of guidance that explains its role and ways of working and how it exercises its regulatory powers.
OPBAS calls for MLR supervision improvement
OPBAS says while most of the Professional Body Supervisors are complying with money laundering regulation, they are not consistently and effectively supervising their regulated communities. It says none of them are...
PSR confirms APP scam or civil dispute guidance
The PSR has confirmed its final guidance to help firms distinguish whether claims they receive from customers who have lost money are APP scams or more likely to be civil disputes. The guidance is aimed at helping firms...
FCA speaks on evolving rules
Sarah Pritchard has spoken of the need for the FCA to adapt its rules as regulation changes – with particular reference to adopting a less prescriptive and more outcomes-focussed approach in the light of the...
FCA speaks on enforcement approach
Therese Chambers has spoken on the FCA’s evolving approach to enforcement. She noted the key drivers of: intervening earlier, acting faster and with more focus and taking a targeted, outcomes based approach She...
FCA confirms motor finance complaint handling pause extension
The FCA has confirmed that the pause to the deadline for motor finance firms to provide a final response to customer complaints about discretionary commission arrangements will now last until 4 December 2025. As...
UK Finance publishes UK Payment Markets review
The 2024 UK Payments Markets report shows: the continued popularity of debit cards and contactless; 85% of people use contactless as their regular payments method; one third of adults now use mobile wallets regularly...
PRA plans December introduction of Solvency II review rules
PRA plans to publish its final form rules following the Solvency II review by the middle of November and for them to take effect on 31 December.
FCA senior independent director review finds whistleblowing policy breaches
A review by the FCA board’s senior independent director into allegations that the identity of two former employees who complained that their identity was not kept confidential after whistleblowing reports has...
FOS calls for better approach to debt management
Abby Thomas, chief Ombudsman at the FOS, says the FOS is seeing increasing complaints about unaffordable lending. She said many customers are finding it hard to communicate with businesses when they are becoming over...
UK Finance and LSB respond on proposed reduction to APP reimbursement cap
UK Finance and the LSB have responded to the PSR’s urgent consultation on lowering the maximum level of reimbursement for Faster Payments APP scams to £85,000, a significant reduction from the previously agreed...
FCA Practitioner Panel responds to call for information on digital wallets
The 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...
LSB to develop code on access to finance for ethnic minority-led business
The LSB is developing a first-of-its-kind code to break down barriers to finance for ethnic minority-led businesses (EMB). As the LSB’s 2023 report highlighted, ethnic minority entrepreneurs contribute an...
Government updates on UK Sustainability Reporting Standards
The Department for Business and Trade has updated on the Government’s framework creating UK Sustainability Reporting Standards (SRS). In 2023, the International Sustainability Standards Board published standards...
Treasury announces reforms to retail disclosure requirements
The Government and the FCA have announced plans to replace EU-inherited retail disclosure rules with a framework tailored to UK markets and firms. HMT previously consulted on replacing the PRIIPs Regulation with a new...
What developments are we seeing globally in the AI space?
🚀 The UK’s pro-innovation approach The UK’s Communications and Digital Lords Select Committee has launched an inquiry into AI and creative tech, aimed at scaling businesses. This aligns with the UK’s...
Court rejects COBS contravention claim against spread betting firm
The High Court rejected the arguments of a defendant who alleged that a claimant spread betting firm had contravened COBS by reclassifying him from a retail client to an elective professional client (EPC), meaning he no...
LSB updates business lending code to provide stronger SME protections on personal guarantees
The LSB has updated its Standards of Lending Practice for business customers to strengthen provisions for SMEs using personal guarantees. The standards provide the only lending protections available to many SMEs, given...
FCA pleased with impact of access to cash rules
The FCA is pleased at the effect of its rules protecting access to cash. It says that as a result of an assessment LINK has carried out: 15 communities will get a banking hub, when they had not previously been assessed...
FCA reports on cash savings progress and price and value outcomes
The FCA has published its latest analysis of fair value in the cash savings markets. Key highlights are: average interest on easy access savings accounts rose from 1.66% last July to 2.11% in June 2024; while firms were...
FCA speaks on fraud prevention
Andrea Bowe of the FCA has spoken on what the FCA is doing to help reduce financial crime and its key role in the implementation of the Government’s Economic Crime Plan. She spoke of the equal importance of...
Digital 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...
PRA consults on CRR requirements, Pillar 2A and capital buffers
The PRA is seeking views on three related consultations concerning: the restatement of CRR requirements in the PRA Rulebook; streamlining the Pillar 2A capital framework and capital communications process; and updates...
PRA consults on simplified capital regime for SDDTs
As set out in CP 5/22, PRA’s ‘strong and simple’ initiative seeks to simplify the prudential framework for small, domestic-focused banks and building societies, while maintaining their resilience. The...
PRA publishes near-final policy statement on remainder of Basel 3.1 standards implementation
After publishing a near-final policy statement on various chapters in its consultation on the implementation of the Basel 3.1 standards late in 2023, PRA has published a second near-final policy statement in response to...
FCA publishes guidance on its approach to recognition under the Overseas Funds Regime
Following its policy statement containing final rules and guidance for implementing the Overseas Funds Regime (OFR), the FCA has published a document setting out its approach to recognition of funds under the OFR. As...
FCA consults on new consumer credit regulatory return
The FCA is seeking views on its proposal to issue a new regulatory reporting return for consumer credit firms carrying on any one or more of the regulated activities of credit broking, providing credit information...
UK/US financial regulatory working group meets
The latest meeting of the UK-US Financial Regulatory Working Group took place in Washington, D.C and discussed co-operation in matters including digital finance and operational resilience, sustainable finance and...
FCA urges innovative approach to pensions chats
The FCA has published research showing that it is hard to get people to engage with their pensions through email alone, even with careful thought about email headings and behavioural messaging. A trial attempting to...
PRA publishes findings of internal audit review
The PRA asked the internal audit function of a selection of non-systemic UK deposit takers to review their Credit Risk Management Framework. 33 firms participated and results showed the most common finding was yellow...
PRA to review leverage ratio thresholds
The PRA is looking at the leverage ratio requirement thresholds and is offering firms a modification by consent in certain circumstances while it finishes its review. Firms can apply for the modification if they...