The Treasury Committee has published a response from the Treasury on its report on sexual harassment and bullying in the financial services industry. The Sexism in the City report found that a significant culture of...
Category - Topics
Harry WellsEnforcement proposals challenges – a recap
The FCA has responded to a variety of criticism from industry and parliament over the last month after consulting on its new approach to enforcement investigations. The House of Lords Financial Services Regulation...
Market Watch focuses on surveillance
The latest edition of Market Watch looks at the effectiveness of surveillance arrangements, systems and controls. The FCA looks at the impact of failures when firms’ systems do not work as intended and the length...
Emma RadmoreFCA publishes hire purchase agreement undertaking
The FCA has published a notice of undertaking under the Consumer Rights Act in relation to vehicle hire purchase contracts issued by Mercedes-Benz Financial Services (UK) Limited. The FCA had been concerned that an...
FOS updates on car finance complaints
FOS has around 20,000 open complaints on car finance commission. It has explained on its website that: it published its first representative decisions in January 2024; also in January, the FCA announced its review of...
Treasury Committee publishes enforcement proposal correspondence
The Treasury Committee has published a further set of correspondence with the FCA on the FCA proposals to publicise enforcement investigations, and the Financial Services Regulation Committee formally announced its...
UK and Singapore strengthen FinTech and sustainable finance cooperation
The 9th dialogue of the UK-Singapore financial dialogue focussed on: commitment to scale financing in support of the net zero agenda, including transition planning and disclosure and rating standards; fintech and...
Parliament to look at regulatory international competitiveness
The Financial Services Regulation Committee is starting an inquiry into the PRA and FCA’s secondary international competitiveness and growth objective. Among the issues it wants to explore are: the balance between...
SME banking report finds “unfair” treatment of small businesses
The Treasury Committee’s report on SME finance has heavily criticised the “unfair” debanking of many legitimate businesses. It firmly believes that any small business doing legitimate work should have...
PSR consults on CHAPS APP scam reimbursement
The PSR is consulting on a proposed direction to require banks and payment firms participating in CHAPS to reimburse customers who have been the victim of APP scams. The direction will support the BoE’s...
PSR consults on cycle 2 APP scam publication guidance
The PSR is consulting on its draft guidance for PSPs for publishing APP scams data for cycle 2 (the calendar year 2023). The requirement to publish the data comes under Specific Direction 18 and applies to 14 PSP groups...
LSB publishes findings on access for deaf customers
LSB has published its research on accessibility for deaf customers in banking and credit. The report highlights that progress has been made in almost all of the seven key deaf accessibility services drawn out in its...
A bank “retrieval duty”?
See our article on the recent CCP Graduate School Ltd v Nat West case, where the court looked at the issue of receiving banks’ liability.
FCA fines and bans individual for incorrect info on client cash
FCA has fined James Lewis, former CEO of Shard Capital Partners, £120,300 and has banned him for providing false information once to auditors and once to a client about the amounts of cash balances the firm held. The...
BoE looks at AI and financial stability
Jonathan Hall of the FPC has spoken on whether increasing use of AI models could have a negative impact on financial stability. He sees two key risks: that deep trading agents could lead to a brittle and highly...
AML supervision review looks forward to change
Treasury has published its 2022-23 review of AML supervision. The report contains the normal review of what each supervisor has done, but mainly looks forward to the upcoming changes to both the supervisory structure...
OFSI updates enforcement guidance
OFSI has updated its guidance on Enforcement and Monetary penalties. The main update is to say that OFSI will now always apply the most recent iteration of its guidance to cases it is looking at. It has also taken the...
FS Regulation Committee seeks further enforcement proposal reassurance
The House of Lords Financial Services Regulation Committee has written to Nikhil Rathi in response to the FCA’s letter to the Committee which in turn responded to the Committee’s concerns about the...
PSR consults on extension and exemption process
The PSR is consulting on how it plans to make decisions on exemptions or extensions to its directions and requirements. In principle these will be appropriate in only limited circumstances. When it receives a request...
Treasury and FCA publish overseas funds roadmap
HM Treasury and the FCA have published a timeline and roadmap for implementation of the new Overseas Funds Regime. The document explains how the OFR is now going to open up to EEA UCITS, and sets out what their...
FOS publishes half-yearly complaints data
FOS’ latest half-yearly complaints data shows a rise of 20% in complaints during H2 2023, with the rise driven mainly by banking and credit complaints. Within that sector, current accounts and credit cards...
OFSI publishes FAQs
OFSI has published its first set of FAQs on financial sanctions. It hopes they will be accessible and helpful to businesses. It will release new FAQs on an “as-needed” basis and does not plan generally to...
FCA and Gambling Commission update MoU
The FCA has published its updated MoU with the Gambling Commission. Among other things, the MoU sets out that the Gambling Commission regulated commercial gambling apart from spread betting.
JMLSG consults on wholesale market guidance update
The JMLSG is consulting on changes to chapter 18 in Part II of its guidance, for wholesale markets. The changes generally update references, and: clarify that as market abuse is a predicate offence, settlement of...
Industry calls for intervention on FCA enforcement proposals
16 financial services trade associations, including UK Finance, the ABI, TheCityUK and PIFMA, have written to the Chancellor asking him to intervene over the FCA’s proposals to publicise enforcement investigations...
PRA updates on insurance regulatory returns
The PRA has updated its guidance on regulatory returns it requires from insurers. The page confirms that all reports should be submitted electronically, and provides links to the insurance taxonomy and a filing manual.
FCA finalises consumer credit sales data rules
The FCA has finalised its new rules that incorporated 3 new Product Sales Data returns into SUP. The enhanced requirements should help the FCA to get better market insights and to intervene more quickly if it sees risks...
FCA updates Form A
The FCA has made some changes to Form A which it hopes will improve the application experience. Among other things, the new look form: removes duplication of employment history by simply requiring 10 years of employment...
FCA responds on enforcement proposal criticism
The FCA has responded to the House of Lords’ Financial Services Regulation Committee’s letter that criticised the FCA’s proposal to name firms it was to investigate and asked for justification of its...
Basel Committee publishes revised Core Principles for effective banking supervision
The Basel Committee on Banking Supervision (BCBS) has finalised its revised Core Principles for effective banking supervision, which were endorsed by banking supervisors and central bankers representing more than 90...
FCA publishes Q1 fin proms data
The FCA has published its financial promotions data for Q1 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 2,211...
Government responds further on progress of Edinburgh reforms
The Government has published a second formal response to its December 2023 report on the progress of the Edinburgh reforms. This response is more detailed than the Government’s initial response and includes an...
Treasury publishes basic bank account data
Treasury has published its annual data as received from the nine largest personal current account providers (PCAs) in the UK. Under the Payment Account Regulations 2015, Treasury has designated the PCAs to offer basic...
PRA speaks on developments in bulk purchase annuities sector
Lisa Leaman (Head of Division, London Markets at the PRA) has delivered a speech on developments in the bulk purchase annuities (BPA) sector. Highlights include: Solvency II reforms to the matching adjustment (MA) –...
European Parliament adopts new AML package
The European Parliament has adopted the new AML package, which, among other things, will: limit cash payments to €10,000; create a new EU-wide agency to directly supervise the highest risk businesses; allow those with a...
FCA updates complaints data
The FCA has published updated complaints data based on returns from then nearly 300 firms reporting at least 500 complaints within 6 months or 1000 within a year. Key findings from the 2023 H2 data include: Complaints...
ABI acts on motor premium finance
The ABI has announced a new set of Premium Finance Principles, designed to try better to manage the charges on consumers who pay monthly for motor insurance. The ABI says it considered, and discussed with the FCA, a...
FCA consults on Financial Crime Guide updates
The FCA is consulting on several proposed changes to its Financial Crime Guide. It is suggesting change to: the guide generally to add references to crypto assets and the Consumer Duty; the sanctions part to reflect...
PRA writes to CROs on private equity related activities
Following a PRA review of private equity financing businesses, it has now written to bank Chief Risk Officers noting the key conclusions. It specifically notes a recent trend that increases exposure to various non...
FCA notes good and poor practice for credit broking ARs
The FCA has carried out a review of the key harms and drivers of harm caused by ARs and IARs in the credit broking market. Key areas where some principals could improve are; making sure they undertake criminal or credit...
PSR consults on supervisory approach
The PSR is seeking views on its approach to supervision. Last year, it set up a Supervision and Compliance Monitoring division, designed to deter and challenge any poor practices within firms. It plans for the division...
FCA publishes anti-greenwashing guidance and consults on extending SDR
The FCA has finalised its anti-greenwashing guidance and launched a consultation on extending the Sustainability Disclosure Requirements (SDR) and investment label regime to include portfolio management. The anti...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
Lords asks for FCA justification of enforcement proposals
The House of Lords Financial Services Regulation Committee has written to the FCA making several criticisms of its proposals to name firms under investigation. It is particularly critical that the paper explicitly rules...
UK Finance to support VRPs for commercial applications
UK Finance has published a report which sets out recommendations for addressing the key issues and processes needed to develop VRPs for commercial applications and containing a set of model contractual terms.
PSD3 nears final agreement
The European Parliament has voted through proposed changes to the Payment Services Regulation and Directive by a large majority. Key changes include: free verification of identifiers and requirements on PSPs to ensure...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
Debanking complaints spike
The Treasury Committee has published new data that shows a rise of 69% in complaints to the FOS about debanking since 2020/21. In the last year, there were nearly 4,000 complaints. There has also been an increase in the...
FCA updates on BSPS complaint action
The FCA has provided an update on the complaints it has been receiving about what it is doing, or not doing, in relation to the fallout from BSPS transfer advice. Although it has implemented a redress scheme and taken...
BoE speaks on role of private equity
Nathanael Benjamin of the BoE has spoken on the role of the private equity market, focusing on its key role in financing companies but looking also about safe and sustainable growth. Key points from his speech included:...
PRA consults on final Solvency II review steps
The PRA has published a consultation on the final steps it needs to take to implement the conclusions of the Solvency II review and finalise all the PRA materials needed to replace the Solvency II assimilated laws that...
FCA publishes feedback on impact of Big Tech data asymmetry
The FCA has published its analysis of feedback received from its Call for Input (CFI) in November 2023 regarding potential competition impacts form data asymmetries between Big Tech and financial services firms. Nikhil...
FCA updates approach to AI
The FCA has published an update on its approach to AI following the Government’s publication of its pro-innovation strategy on AI in February. The update covers the FCA’s work so far and explains how it is...
JROC seeks input on design of future entity for open banking
Further to its April 2023 recommendations for the next phase of open banking in the UK, the Joint Regulatory Oversight Committee has published its proposals for the design of the future entity for open banking, which...
BoE outlines CCP stress test for 2024
BoE has set out the key elements of its 2024 supervisory stress test for UK central counterparties. The clearing services of all three UK authorised CCPs (ICE Clear Europe Ltd, LCH Ltd and LME Clear Ltd) will be in...
APPG publishes Economic Crime Manifesto II
The All Party Parliamentary Groups for Anti-Corruption and Responsible Tax and for Fair Business Banking have published a manifesto looking at the scale of corruption and calling for significant greater transparency to...
PSR consults on APP reimbursement compliance and monitoring
The PSR has published a consultation paper seeking views on proposed reporting requirements for PSPs that are in scope of the new reimbursement requirement, so that the PSPs will report data to allow the regulator...
NGFS publishes Transition Plan Package
The Network for Greening the Financial System has published its Transition Plan Package. It has published three detailed reports on: considerations for emerging markets and developing economies in tailoring transition...
FCA speaks on women in financial services
Sheree Howard (Executive Director of Risk and Compliance Oversight at the FCA) has delivered a speech at the PIMFA Women’s symposium conference on investing in women in financial services, both as employees and...
BBRS publishes quarterly data report
The BBRS has published its quarterly case resolution data as of 31 March 2024. Key highlights include: From a total of 1,037 case registrations, there were 1,006 resolved case outcomes and 31 remain open. Of the...
BoE speech: innovation and safety in payment systems
Sarah Breeden, BoE Deputy Governor of Financial Stability, has delivered a speech on how the BoE intends to support innovation and technological advances in payments services whilst ensuring the safety of the sector...
FCA highlights common failings in asset management applications
The FCA has provided a list of common errors asset managers are making in applications for authorisation. For context, in the year to 1 April 2024, 18% of applications were withdrawn as a result of the FCA’s...
BoE updates on ISO 20022
Following the successful migration of the CHAPS system to the ISO 20022 payments messaging standard in June 2023, BoE has published a policy statement providing further clarity on the mandatory requirements for ISO...
FCA updates on motor finance complaints
Following the announcement of its review into motor finance complaints, the FCA has published a statement on progress made to date. It says that firms have engaged with the FCA constructively but many are struggling to...
FCA publishes PEMC travel insurance signposting review
The FCA has published the findings of its review into how well consumers with medical conditions are being made aware of travel insurance available to them. The FCA introduced rules in 2020 requiring firms to signpost...
FCA publishes Link findings
The FCA has published its findings against Link Fund Solutions, explaining its conclusion that the firm failed to manager the liquidity of the Woodford Equity Income Fund from 31 July 2018 to 3 June 2019 and therefore...
PRA consults on fees
PRA is consulting on its fees and levies for 2024/25. Key elements of the proposals are: funding an overall increase in the budgeted cost for ongoing regulatory activities of 7%; dealing with an increase of 11% in the...
PRA publishes Business Plan 2024-5
The PRA has published its 2024/25 Business Plan. The plan focuses on: maintaining and building on the safety and soundness of the banking and insurance sectors and ensuring continuing resilience; being at the forefront...
FCA publishes cost of living report
The FCA has published its Financial Lives report on the increased cost of living for adults across the UK. The report is based on findings from the FCA’s recontact survey conducted with 3,450 individuals from...
Innovate Finance and City of London publish report on compliance technology
Innovate Finance and the City of London Corporation have published a report calling for the FCA and PRA to introduce a test to help assess they ways in which technology can facilitate regulatory compliance. It says it...
FCA consults on new way to pay for research
The FCA is consulting on a range of ways in which asset managers might choose to pay for investment research. It says that, while firms are generally getting the research they want under the current rule format, the...
FCA finalises guidance for borrowers in financial difficulty
The FCA has finalised its rules and guidance to strengthen protection for consumer credit and mortgage borrowers in financial difficulty. It has decided to bring parts of its current guidance in FG23/2 for mortgage...
Transition Plan Taskforce updates plan resources
The TPT has published its final set of transition plans. The resources make use of the international best practice framework for plans and include: sector-specific guidance for entities such as asset managers and banks;...
Market Watch focuses on instrument reference data
The latest edition of Market Watch looks at completeness and accuracy of instrument reference data. It looks at the most common rejection messages and the number of rejections, and suggests best practice for submitting...
FCA consults on fees
The FCA has published its consultation on fees and levies for 2024/25. After the general fee freeze last year, key proposals for the next year include: increasing minimum and flat rate fees in line with the 8.75%...
PSR publishes Annual Plan
The PSR has published its Annual Plan and Budget for 2024/25, highlighting the year as a key period for consolidating the delivery of its work to improve payment services for businesses and consumers in the UK. One...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
NCA releases latest SARs report
The latest NCA SARs annual statistical report shows a decrease in the total number of SARs compared to the previous year, which is mainly because of fewer SARs being made by high street banks, although banks still...
FCA publishes financial resilience survey results
The FCA has published the results of its October 2023 Financial Resilience Survey. The survey had been issued 11 times in the October 2023 form but has now been replaced with a new format. The FCA has released the data...
FOS publishes plans and budget for next phase
The FOS has published its finalised Plans and Budget for the next phase of its transformation. It expects to receive a greater number of complaints in the coming year, and anticipates 210,000 complaints in its caseload...
FCA gets consent to recover investor funds from Argento Wealth
The High Court has approved a consent order allowing the FCA to proceed with its application for £1.6m investor funds to be returned by Argento Wealth Limited and its sole director, in relation to 2 allegedly unlawful...
FCA and BoE consult on Digital Securities Sandbox
The BoE and FCA are consulting on the Digital Securities Sandbox which will allow participants to use developing technologies to carry out some of the traditional activities of CSDs and trading venues. Instruments such...
FCA updates on Attestations
The FCA has updated its website page on attestations. The page explains the situations in which the FCA will normally ask for attestations, and is updated quarterly with the numbers of attestations. For the quarter to...
Fair Business Banking group publishes call to action
The All Party Parliamentary Group on Fair Business Banking has called for input into its SME manifesto. The document, which wants to address the challenges that face SMEs when dealing with financial institutions, is...
FCA gives guidance on consumer credit income reporting
The FCA has updated its guidance for consumer credit firms to reflect changes to the way firms now need to calculate their proxy measure of annual income. When completing their reports, credit brokers need to include...
ABI publishes guide to supporting autistic customers
The ABI has published a good practice guide to help the insurance and long-term savings industry support autistic customers. It had found several barriers that autistic people face when trying to access the products...
FCA makes minor rule changes
The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...
Regulators respond on data collection transformation
The BoE and FCA have published an update on their joint transformation programme aimed at improving the data collection process for regulators and firms. They published their original transformation plan in 2021 and...
Regulators update on payment systems MoU
The signatory regulators to a joint-authority Memorandum of Understanding on co-operation in relation to payment systems in the UK have carried out their 8th annual review of how well the MoU is working. The BoE, FCA...
BoE consults on enforcement changes
The BoE, including the PRA, is consulting on proposed changes to its SOPs and procedures for enforcement, following the additional responsibilities FSMA 2023 has placed on it. The changes relate to enforcement policy...
Wolfsberg Group publishes financial crime audit principles
The Wolfsberg Group has published a set of principles for auditing a financial crime risk management programme under its three factors of: complying with financial crime laws and regulations establishing a reasonable...
HNWI/SCSI Fin Prom limits change again
We’ve written an article explaining the effects of the Budget reversal of the January increase on limits that high net worth and self-certified sophisticated investors need to meet to make use of financial...
PSR calls for evidence on LINK requirements
The PSR has published a call for views on its second annual review of Specific Direction 12, which is aimed at ensuring that LINK keeps a good geographical spread of free-to-use cash machines, and has appropriate and...
FCA publishes findings of insurers’ valuation of vehicles review
The FCA has completed its multi-firm review of firms’ claims handling processes for valuing vehicles which have been stolen or written off (‘total loss’ claims). The findings are split into six key...
FPC March update
The BoE has published: the FPC’s financial policy summary and record for March: this concludes that conditions remain challenging and asset prices are stretched with the risk of a sharp correction in a broad range...
FCA consults further on pensions dashboard services
The FCA has published a further consultation ahead of the introduction of operating a pensions dashboard service as a new regulated activity. It has published new guidance that will be in PERG for relevant firms and is...
NCA updates SAR portal
The NCA has updated its website in respect of: overview of the SAR Portal: this includes an overview of the whole process and of the type of questions that the system will ask when a SAR is being submitted; registering...
Fund tokenisation report looks at further token use in MMFs
The second report of the Technology Working Group on fund tokenisation looks at the potential use of tokens as collateral for money market funds, and how tokenised funds can plan a key role in an “on chain”...
FCA updates social media guidance
The FCA has published its updated guidance on social media advertising. The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...
FCA updates on AIFM hosting
The FCA has published information for AIFMs who make use of the hosting model. It reminds firms of its 2023 research which showed potential harm in the model, in terms of: lack of oversight of seconded staff –...