The PSR has published its policy statement confirming the requirements for the mandatory APP scams reimbursement policy which takes effect on 7 October 2024. The PSR consulted in April on proposed reporting requirements...
Category - Topics
Harry WellsFOS publishes annual complaints data for 2023/24
FOS has published the annual complaints data for the 2023/24 financial year. Most notably, complaints about the banking sector are at their highest level in at least a decade. In the last financial year, consumers...
Emma RadmoreBoE publishes Q2 Credit Conditions and Bank Liabilities Surveys
The BoE has published the results from its quarterly survey of banks and building societies looking at credit conditions in the quarter to the end of May 2024. As usual, the survey covers: secured and unsecured lending...
OFSI updates Human Rights sanctions guidance
OFSI has updated its guidance on the Global Human Rights Sanctions Regulations to include guidance on how designated persons are subject to the director disqualification regime.
PRA publishes Life Insurance Stress Test approach
The PRA has published a set of documents setting out its approach to the 2025 Life Insurance Stress Test. The test will apply to UK life insurers active in the bulk purchase annuity markets and will contain a core...
PRA updates on Solvency UK
Gareth Truran of the PRA has given a speech in light of the updated Matching Adjustment regime for insurers going live on 30 June. He said insurers now have all they need to use the Solvency UK reforms to support their...
FCA quarterly consultation plans criminal background checks
FCA’s most recent quarterly consultation includes proposals on: carrying on criminal background checks on owners and controllers at the authorisation gateway. The FCA currently conducts these checks using a risk...
SME banking 2002 undertaking report
The CMA has published the 2023 audit report into whether 8 UK banks are complying with undertakings they gave in 2002 not to bundle loans and accounts for SMEs. The 8 banks currently subject to the undertakings have...
CBI survey shows continuing sector growth
The CBI’s most recent quarterly survey shows that financial services business volumes continue to grow. Business volumes grew in Q2 2024 and are expected to rise at an even faster rate in the coming quarter. The...
BoE updates on data and analytics strategy
The BoE has provided an update on its data and analytics strategy, aimed at making it easy for everyone at the BoE to work with and analyse data which should lead to many benefits including more effective decision...
PRA publishes final rates for 2024/5
The PRA has published its feedback to the consultation on next year’s rates and the finally set rates. It received only 2 responses to its consultation and the new rules now take effect on 9 July.
PRA updates on skilled persons reports
The PRA commissioned 6 skilled persons reports in Q4 2023/24. 5 related to credit institutions and one to insurers, and all but one related to controls and risk management frameworks.
FCA updates crypto application stats
The FCA has updated its statistics on crypto applications. In the month to 1 July, it received 2 applications, determined none, but one was withdrawn.
DEI in financial services: can regulators shift the dial?
We have written an article for Compliance Monitor on the impact of the Sexism in the City report and the reaction of the financial regulators to it.
FCA makes final fees rules
The FCA has published its final fees and levies for 2024/25. It has made minor changes to the amounts it consulted on. One of the most contentious proposals had been that it would split the costs for its cryptoasset...
FCA updates sustainability and disclosure labelling regime webpage
The FCA has updated its sustainability and disclosure labelling regime webpage to include information on notifications when using an investment label. The update also includes details of applications to make associated...
TFND updates guidance
The Taskforce on Nature-related Financial Disclosures has announced a significant increase in take up in adopting its standards, and has updated and published new guidance for several sectors. The updates include...
FATF adds 2 countries to high risk list
Outputs from the last FATF plenary meeting to take place under Singapore’s presidency included: adding Monaco and Venezuela to its list of jurisdictions subject to increased monitoring and removing Jamaica and...
New FCA webpage on overseas ARs
The FCA has published a new webpage which sets out expectations for firms with overseas appointed representatives (OARs). In particular, principal firms should consider whether customers dealing with an OAR will receive...
FCA to run Consumer Duty webinar
The FCA is hosting a webinar on 31 July 2024 to mark one year since the implementation of the Consumer Duty. It will focus on: the impact the Duty has had in its first year; examples of good practice and areas for...
BoE publishes scenarios for the 2024 stress test
BoE has published the scenarios that will be used in its 2024 desk-based stress test. The exercise will test the resilience of the banking system (firms that account for c.75% of the sector’s lending to the UK...
FCA publishes product sales data
The FCA has published a breakdown of the product sales data it has collected from firms in the period 1 January 2019 to 31 December 2023. The data covers firms operating in the mortgages, retail investments and...
FPC publishes policy summary
BoE has published the FPC’s latest financial summary and record. Key points to note are: global growth is projected to rise in the medium term, although several risks to that outlook remain; improved transparency...
FCA updates on Consumer Duty board reports
The FCA has updated its Consumer Duty – information for firms webpage to include further detail around annual board reports. From July the FCA will be reviewing a broad sample of firms’ board reports and...
EBA welcomes new EU AML/CTF framework
The EBA has published a statement setting out its AML/CTF priorities for 2024/25. It will focus on: a methodology for selecting financial institutions for direct EU-level AML/CTF supervision; a common risk assessment...
FCA publishes findings from insurance multi-firm Consumer Duty review
The FCA has published the key findings from its review of 20 larger insurance firms’ approaches to outcomes monitoring under the Consumer Duty. These included general insurers, life insurers, intermediaries and...
IAIS consults on achieving fair treatment for diverse consumers
The International Association of Insurance Supervisors (IAIS) is consulting on a draft application paper on how to achieve fair treatment for diverse consumers as part of its DEI work. The paper does not introduce any...
FCA bans individuals for mistreatment of customer funds
The FCA has taken action against 3 individuals who were involved in running SVS Securities Plc, a discretionary fund manager. SVS used a complex business model intended to maximise the flow of customer funds into high...
Complaints Commissioner criticises FCA’s response to MLRs complaint
The Complaints Commissioner has criticised the FCA for refusing to review a complaint made about its legal obligations under the MLRs. The complainant had written to the FCA asserting that the regulator had been grossly...
FCA keeping trading apps under review
The FCA has carried out an online experiment involving over 9,000 consumers, involving a trading platform app that the FCA created. It wanted to test the effect of different digital engagement practices on trading...
Wolfsberg Group responds on MLR review
The Wolfsberg Group has responded to the Treasury consultation on improving the effectiveness of the MLRs. Among the key points in its detailed submission are: that an effective AML/CTF framework includes discontinuing...
FCA delays publication of PEP treatment review
The FCA had been due to publish the findings from its review of the treatment of PEPs by regulated firms at the end of June, as required by FSMA 2023. However, it does not think it appropriate to do so in the run up to...
Individual takes action against Revolut for APP fraud
Mr Larsson brought claims against Revolut, following payments it accepted that resulted from an APP fraud on Mr Larsson. Mr Larsson was a Revolut customer, but the payments in question were made by him from his account...
Court rejects application for JR review of FOS decision
The Court has dismissed an application made by Linear Investments Limited for judicial review of a FOS decision. The FOS had heard that a customer of Linear (Professor W) was an eligible complainant under its rules...
FCA updates on finfluencer trial
Following the FCA’s decision to charge 9 “finfluencers” in relation to promotions of an unauthorised FX trading scheme on social media, it has updated that three individuals have pleaded not guilty...
Labour manifesto proposes Regulatory Innovation Office
Part of Labour’s manifesto proposes a new Regulatory Innovation Office, which will bring together existing functions to help regulators better deal with the development of new technologies, specifically AI. It...
Green Party proposes mutual banks to drive decarbonisation investment
Of relevance to financial institutions in the Green Party manifesto are proposals to create regional mutual banks to drive investment in decarbonisation and local economic sustainability.
FCA bans individual for failing to disclose conviction
The FCA has banned Graham Lilley, formerly an authorised sole trader, from carrying on any regulated activity carried on by any person and has cancelled his permissions. It discovered that Mr Lilley had been convicted...
FCA clarifies open banking expectations relating to run off firms
The FCA has updated its information page on firms in the Contractual Run Off scenario following Brexit. It has clarified that ASPSPs are not obliged to provide CRO firms with access to payment accounts given that CRO...
FOS confirms proactively settled complaints to continue
The FOS has confirmed that the trial of the “proactive settlement” system that allows firms to offer to settle complaints before a full FOS investigation has worked well, and will continue. It has, though...
Conservative manifesto highlights fintechs
The Conservative Manifesto, published on 11 June, contains few surprises for financial regulation. It priorities: building on the various co-operation agreements it has already signed, including with the EU and...
FCA shares latest Mortgage Charter uptake data
The FCA has reported that there are now 49 signatories to the Mortgage Charter, and that the signatories represent about 90% of the mortgage market. The latest data suggests that well over 1m mortgages benefited from...
Regulators publish Wider Implications Framework Annual Report
The 2023/24 Wider Implications Framework Annual Report from the FCA, FOS, FSCS, TPR and MaPS notes that during the period the report covers, the new duty in FSMA 2023 on the FCA, FOS and FSCS to cooperate on issues that...
AFME proposes more clarification in MLRs
The response of the Association for Financial Markets in Europe to the Treasury consultation on improving the effectiveness of the MLRs. AFME draws out as particularly important: the need for greater clarity on what is...
Lib Dem manifesto prioritises financial inclusion
The Liberal Democrat manifesto, published on 10 June, includes several commitments in relation to the financial services sector, such as: expanding the British Business Bank to perform a more central role in the...
City of London Corporation looks at AI and the workforce
The City of London Corporation and KPMG have published a report looking at the expected increases in demand for and productivity resulting from the use of AI in financial and professional services. The report says there...
PRA finalises matching adjustment changes
The PRA has published its feedback on responses it received to its consultation paper on reform of the Solvency II Matching Adjustment, together with new rules, supervisory statements and statements of policy and...
Tenet firms enter administration
The Tenet Group Limited is winding down its operations, which has now resulted in two of its hosting firms entering administration. The firms closed to new business at the end of March, and most of their advisers either...
FCA speaks on investment management
Nikhil Rathi has spoken on the importance of the UK keeping its leading position in global asset management. He discussed current international initiatives such as: liquidity risk management, particularly for open ended...
City Corp and Climate Policy Initative report on progress to net zero
A research report from the City of London Corporation and the Climate Policy Initiative looks at the significant progress financial services firms have made in efforts to address climate change. They say increasing...
Building societies amendment law published
The Building Societies Act 1986 (Amendment) Act 2024, which was voted through in the Parliamentary wash-up process, has been published. It will take effect from 24 July and will: amend the funding limit restrictions to...
Chris Hemsley to leave PSR
Chris Hemsley is standing down as managing director of the PSR from 7 June to take up another position. David Geale will take over as interim managing director, having been director of retail banking at the FCA and...
SMEs reminded to register complaints before BBRS closure
The BBRS has reminded all eligible SMEs who have a banking complaint to be sure they register it before the BBRS closes to new registrations at the end of 2024. Eligible SMEs are those who are above FOS thresholds but...
EU adopts new AML package
The Council of the EU has adopted the new AML package, which will comprise a new Regulation which takes in and updates all AML requirements on the private sector, a new Directive which sets out both how national FIUs...
FCA sustainability disclosure and labelling regime takes effect
The FCA’s new anti-greenwashing rules and guidance took effect on 31 May. Firms must make sure any claim about the sustainability of their products and services is clear, fair and not misleading. They should also...
Pay.UK delighted with Fraud Detection Pilot
Pay.UK’s new fraud detection pilot has shown an average increase in detection of 40%, with over £112m of fraud detected. The pilot was confirmed a year ago and ran for 3 months. Pay.UK says the new overlay service...
UK Finance publishes financial services manifesto
UK Finance has set out what it considers should be the next government’s key financial services priorities. These include: reviewing personal savings allowances; focus on financial education through the schools...
PSR updates card-acquiring services directions
The PSR has updated its 2022 directions relating to card-acquiring services. The original directions were issued to the 14 most significant service providers. After consultation, the PSR has updated the list to be sure...
Alternative Investment Funds Designation Bill dropped
The Alternative Investment Funds Designation Bill, a private members’ Bill looking to remove Listed Investment Companies from the scope of the definition of an AIF, did not survive the Parliamentary wash-up...
Court decides fiduciary duty can be owed even where no negligence
A Court has dismissed a claimant’s claim for damages for negligent financial advice but has upheld a claim for breach of fiduciary duty in respect of commission paid to the adviser. The Claimant, Mr McHale, has...
Committee stops accepting FCA enforcement evidence
The Financial Services Regulation Committee is no longer accepting evidence on the FCA’s enforcement proposals following the prorogation of Parliament on 24 May. Its website says that any committees appointed...
FCA publishes operational resilience tips
The FCA has published its observations on firms’ preparations for complying with its operational resilience rules by 31 March 2025. The rules apply to dual regulated firms as well as RIEs, enhanced scope SMCR...
Building Societies Amendment Act gets Royal Assent
The Building Societies Act 1986 (Amendment) Act 2024 got through the Parliamentary wash-up process and got Royal Assent on 24 May. The Act has now been published at the date of this post, but is designed to allow...
Treasury publishes Access to Cash Designations
HM Treasury has published all its decisions on designating current account providers under the FSMA requirements to provide cash access services. There are 16 recipients of the designation notices – comprising 13...
Treasury Committee writes to FCA on enforcement proposals
The Treasury Sub-Committee on Financial Services Regulations has written to the FCA on its enforcement proposals prior to the dissolution of the Committee before the general election. The letter outlines the...
FCA bans pensions advisers
The FCA has published Decision Notices against two individuals for acting without integrity in relation to pensions business. The FCA has banned Stephen Burdett and James Goodchild from working in regulated financial...
FCA updates Consumer Duty webpage
The FCA has updated its Consumer Duty – information for firms webpage to include guidance on identifying vulnerable customers. For example, firms should: set up systems and processes that enable customers to...
PSR writes to FPS participants on APP reimbursement
The PSR has written to Faster Payments System participants to set out areas of focus for implementing the mandatory APP scams reimbursement policy. In order to ensure effective and timely implementation by 7 October...
FCA allows firms to restart GAP insurance sales
Following the pause in GAP insurance sales implemented earlier this year, the FCA has permitted several firms to recommence their sales of GAP. The firms permitted to resume sales of GAP insurance have materially...
FCA updates on plans for asset management sector
Ashley Alder, FCA Chair, has a delivered a speech on the FCA’s agenda for the UK asset management sector. Key highlights include that FCA: wants to ensure that feedback from all stakeholders, including from their...
FOS consults on CMC fees
Following the publication of Treasury’s draft legislation, FOS has announced a consultation on proposals to charge Claims Management Companies and other professional representatives up to £250 to lodge a case. The...
PRA updates on insurance branch supervision
The PRA has provided feedback on the responses received to its consultation on the PRA’s approach to the authorisation and supervision of insurance branches. 10 responses were received, which generally supported...
BoE responds on requirements on FMIs consultation
BoE has provided feedback following responses received during its consultation on its proposed approach to statutory notice decisions for use of its requirements powers. BoE has been given new powers under FSMA 2023 to...
FCA fines for poor customer treatment
The FCA has fined 3 entities within the HSBC group £6.2m for failures in treatment of customers in financial difficulty. For a period of around 15 months, ending in October 2018, it found the bank had not properly...
July 4 Election: effect on current Bills?
A general election has been called for 4 July 2024. Parliament (including the House of Lords) will be dissolved on 30 May 2024. We are now therefore in the ‘wash-up’ period which will last for only 2 days...
Financial Services Consumer Panel responds to Open Banking proposals
The Financial Services Consumer Panel has responded to the Joint Regulatory Oversight Committee’s (JROC) proposals for the design of the Future Entity of UK Open Banking (the Future Entity). The Panel recognised a...
FCA heralds sustainable investment labelling
The FCA has confirmed that investment funds that meet criteria for environmental or social goals will be labelled, so investors can more clearly see what they are investing in. From 31 July 2024, four labels will be...
FCA and PRA fine £60m for failures in trading systems and controls
The FCA and the PRA have imposed fines totalling over £60m on Citigroup Global Markets Limited (CGML) for failures in its trading systems and controls between April 2018 and May 2022. The FCA, which fined CGML...
UK Finance annual fraud report 2024
UK Finance has published its annual fraud report for 2024 which sets out the amount of payment fraud and scams UK Finance members reported in 2023. Highlights include: criminals stole £1.17 billion through unauthorised...
PSR updates on preventing APP fraud
Chris Hemsley has written to Dame Harriett Baldwin MP (Chair of the House of Commons Treasury Committee) on the PSR’s progress on implementing measures to better protect consumers from APP scams. From 7 October...
Treasury speech: reform of capital markets
Bim Afolami, Economic Secretary to the Treasury, has delivered a speech on reforms to reinforce the UK’s capital markets. The speech highlighted that the Government is committed to building on the strong...
BoE speech: balancing the opportunities and risks of AI
Randall Kroszner, BoE external member of the Financial Policy Committee, has delivered a speech on balancing the productivity opportunities of financial technology and AI against the potential risks. Speaking at the...
PSR provisional finding on card schemes raises concerns
The PSR has published its provisional findings on competition in the cards schemes sector. It is concerned that the supply of scheme and processing activities is not working well and that there is no effective...
Treasury legislates for CMCs to pay FOS fees
Treasury has published a draft Statutory Instrument setting the legal framework for the FOS to charge fees to authorised CMCs and to legal professionals carrying out claims management activities.
Treasury lays draft Solvency II reform regulations
Treasury has laid before Parliament a draft Statutory Instrument that will make a number of technical changes to existing legislation to implement certain post-Brexit Solvency II reforms and ensure prudential regulation...
Court of Appeal dismisses JR application over SIPP challenge
The Court of Appeal has dismissed an application from Options UK Personal Pensions LLP for judicial review of a FOS decision in respect of investments made into an execution only SIPP. The FOS had held that the firm...
Fair Business Banking SME Manifesto calls for reform
The All Party Parliamentary Group on Fair Business Banking has launched its SME Manifesto. The manifesto sets out the strategy for the next government to transform the regulatory landscape for SMEs so that they get the...
FCA publishes credit information market remedy package
The FCA has published its final report for the Credit Information Market study. It has proposed a package of remedies to address the weaknesses its review found in the sector. The remedies focus on: improving data...
Sanctions changes take effect
Two sets of amendments to the sanctions regime have been published, one of which took effect on 16 May and the other taking effect from 5 June. They make changes to several sets of regulations in respect of various...
FCA speaks on key role of insurance brokers
Emily Shepperd has spoken on the key role insurance brokers have to play in the financial ecosystem. She focussed on the recent significant growth in brokered markets, and how future regulation might affect the industry...
FCA updates on implementing Consumer Duty for closed products
The FCA has written to firms in the following sectors on implementing the Consumer Duty for closed products and services by 31 July 2024: Asset management; Consumer finance; Consumer investments; Life insurance; Retail...
BoE publishes digital pound proof of concept
The BoE is currently conducting experiments and proofs of concept as part of the design phase towards a possible digital pound. It has looked at the technical feasibility of using existing POS hardware to initiate...
BBRS publishes 2023 report
The BBRS has published its annual report for 2023. The report acknowledges that the service has dealt with far fewer complaints than originally anticipated, but is pleased with the work it has done, and the feedback...
UK Finance calls for help for abuse survivors
UK Finance has published a report looking at the problems that victim-survivors of economic and financial abuse face when they try to regain financial independence. The report notes the 2021 Financial Abuse Code, which...
FCA charges 8 finfluencers with making unlawful promotions
The FCA has brought charges against 7 “finfluencers” and two other individuals in relation to an unauthorised FX trading scheme. It alleges that Emmanuel Nwanze and another used Instagram to provide advice...
FCA updates crypto registration stats
The FCA has updated its table on success rates of applications for registration under the MLRs for cryptoasset business. As at 1 May 2024, it had received 345 applications in total with 1 in the last month. During the...
Treasury updates CFTC equivalence determinations
The Treasury has updated its equivalence determination in respect of CFTC regulated contract markets and swap execution facilities with effect from 4 June.
Overseas Funds equivalence determination made
The FSMA 2000 (Overseas Funds Regime)(Equivalence)(EEA) Regulations will take effect on 16 July. The Regulations set out the Treasury’s approval of each EEA state in relation to any EEA authorised UCITS that is a...
NAO reports on pensions dashboard delay
The National Audit Office has published a report that looks at why the pensions dashboard programme introduction suffered delays. One key cause it identified is shortage of digital skills. The final connection deadline...
FCA writes to Committee on investment trust disclosure
The FCA has written to the Financial Services Regulation Committee explaining its thoughts on the need for reforms to the disclosure regime. It explains why the FCA has taken the stance it has, including why it does not...