The Chancellor has announced reforms to pension funds disclosures in an attempt to increase investment in UK businesses and improve performance for savers. The reforms proposed include that: DC pension funds will be...
Category - Topics
Harry WellsFCA Panel supports PIF capital deduction for redress proposals
The FCA’s Smaller Business Practitioner Panel has responded to the consultation on proposals to require personal investment firms (PIFs) to set aside capital for potential redress liabilities. The Panel generally...
Lucy HadrillGovernment reviews SAMLA
The FCDO has carried out a preliminary post-legislative assessment of SAMLA 2018. The analysis looks at the background to the legislation and sets out the powers it contains. It is divided into sections, focusing mainly...
Emma RadmoreFCA warns Annex I firms on AML issues
FCA has written to CEOs of the 1,000 Annex I firms it supervises (firms which do not need FSMA authorisation but which carry on activities subject to the MLRs for which FCA is the appropriate supervisor). It has carried...
FCA issues interim update to Asset Management & Alternatives Supervisory Strategy
FCA has published a Dear CEO letter updating its portfolio letters issued in August 2022 and February 2023 setting out its Asset Management & Alternatives Supervisory Strategy. The letter sets out certain areas of...
Duncan ScottAIF Bill has second reading
The Alternative Investment Fund Designation Bill has had its second reading in the House of Lords and has now moved to Committee stage. The main purpose of the Bill is to remove listed investment companies from the...
FCA pauses civil action to pursue criminal investigation
FCA has secured a 12-month pause in its civil case over regulatory breaches against John Dance and WealthTek LLP to allow it to focus its efforts on its investigation into possible criminal offences of fraud and money...
FCA consults on changes to UK EMIR reporting
The FCA is consulting on draft guidance for reporting under the revised UK EMIR Article 9 reporting requirements. This follows the FCA/BoE joint policy statement which confirmed changes to the derivative reporting...
FOS data shows credit card complaints on the rise
The latest FOS products complaints data (covering October – December 2023) shows that complaints about credit cards reached the highest level ever recorded in a 3-month period. 55% of these complaints were about...
ECJ rules on whether funds retained in a payment account constitute e-money
The European Court of Justice has ruled that for the purposes of the Payments Services Directives and the E-money Directive the activity of a payment institution which consists of the receiving of funds from a user of a...
FCA creates new market intelligence pages
FCA has created new pages on its website looking at:
market observations it has received and
STORs it has received
The pages currently contain the figures for 2023.
FCA reminds on LIBOR and comments on its objectives
FCA has reminded firms that the 3 month synthetic sterling LIBOR ceases permanently on 28 March and also that USD synthetic LIBOR is expected to end at the end of September. Separately, it has published a report as...
PRA publishes final Solvency II review reporting rules
PRA has published its final reporting and disclosure policy following its various consultations on the Solvency II review. It has also published near-final rules which will: amend the External Audit, Fees and Reporting...
FCA says wholesale data market needs improvement
FCA has published the results of its wholesale data market study. The study looked at competition in the markets for credit ratings data, benchmarks and market data vendor services. FCA has found instances in all 3...
CMA launches Home Credit Market Order review
CMA has formally launched a consultation on part of the Home Credit Market Investigation Order 2007. The review relates to the operation, information and management of a cash loan price comparison website. The website...
FATF consults on payments transparency recommendations
The Financial Action Taskforce (FATF) has published a consultation, and explanatory memorandum, on proposed changes to its recommendation 16 (the Recommendation) and the associated interpretive note and glossary terms. ...
PSR speaks on progress in fraud reimbursement
Chris Hemsley has spoken at the Fraud Leaders’ summit. He looked at how the APP fraud reimbursement rules are critical to address the increasing number of frauds that take place through payments that use the FPS...
FMSB publishes onboarding standard
The Financial Markets Standards Board has published a draft standard which would apply to firms onboarding clients or reviewing client files for UK AML and KYC compliance. The standard would apply to FMSB members in all...
Treasury Committee publishes SME de-banking report
The Treasury Committee has published a report based on data from 8 of the largest banks that shows that banks have closed 2.7% of small business accounts during the past year. The banks also gave reasons for the...
PRA publishes policy statement on Solvency II reform
Following its consultation in June 2023 (CP12/23), the PRA has published its policy statement on Solvency II reform (PS2/24). As a reminder, the main areas of reform proposed in the consultation were: simplifications...
The IA reviews pay guidelines
The Investment Association (IA) has written to FTSE 2350 companies’ Remuneration Committee Chairs. IA outlines how investors will engage with investee companies on executive pay in the 2024 AGM season. Investors...
Vida FatemiSFO speaks on faster case resolution
Nick Ephgrave, SFO Director, has spoken on SFO’s history and his plans for the future. He wants to solve cases more quickly, and spoke of a number of tactics he plans to use. These include a more rigorous and...
OFSI updates guidance
OFSI has updated its guidance on financial sanctions and licensing to include detail on licensing principles and framework in the general guidance section of its main guidance, and to move its travel guidance to a...
FCA consults on new approach to enforcement investigations
The FCA is consulting on improving pace and transparency around enforcement cases. Key proposals in relation to investigations into firms are: publicly announcing that the FCA has opened an enforcement investigation...
ABI publishes guide on using AI responsibly
The ABI has published a guide on the responsible use of AI which sets out how firms in the insurance sector can put the Government’s five principles of AI into practice. As a reminder, these are accountability...
High risk third country list update
Treasury has updated its website to reflect the list of high risk third countries for MLR purposes. The list now comes directly from FATF. Following FATF’s plenary meeting on 23 February, it has removed Barbados...
FCA issues supervisory notice under PSRs
FCA has published a First Supervisory Notice against an API (EPayPro), setting out its decision to very the firm’s authorisation so as to restrict it from charging a “compliance” or any other fee that...
FCA updates on interest-only mortgage work
FCA is working with an Industry Working Group of 12 mortgage lenders and administrators on a review of FCA’s current guidance on interest-only mortgages. There were under 1 million interest-only and part-and-part...
FLA launches accreditation service
FLA’s new Broker Accreditation (Asset Finance) Service will help brokers show they are compliant with FLA’s Business Finance Code and their regulatory obligations. It also says the accreditation, which...
Government defends Edinburgh Reform progress
The Government has responded to criticism from the Treasury Committee on how the Edinburgh Reforms are progressing. Following the Government’s report in December (a year after it announced the reforms) that it had...
Fair Business Banking Group reports on de-banking
The All Party Parliamentary Group on Fair Business Banking has reported on de-banking. The report looked at why banks have been refusing or withdrawing banking facilities giving reasons that customers felt were at best...
FCA speaks to EU on global cooperation
Ashley Alder, FCA Chair, has spoken at the UK Mission to the EU on the importance of regulatory cooperation and open markets, and the relationship the UK now hopes to build with the EU under the 2023 MoU. He said that...
FCA updates on Consumer Duty implementation
The FCA has published the findings of its review of firms’ Consumer Duty implementation. The findings are split into six key areas and include examples of good practice and areas for improvement. Good practice –...
FCA secures fraud conviction
Guy Flintham has pleased guilty to fraud in relation to an investment scheme he operated. FCA brought the prosecution, for fraud by false representation and for carrying on regulated activities without authorisation by...
Pensions dashboard operation becomes regulated
“Operating a pensions dashboard service” which connects to the MAPS dashboards will become a regulated activity under the RAO with effect from 11 March. For these purposes, any pension in respect of which...
Illegal money lender jailed for failing to pay confiscation order
FCA has issued a press release highlighting the nearly 8 year prison sentence handed down to Dharam Prakash Gopee by the City of London Magistrates’ Court for wilfully refusing to adhere to a confiscation order...
BoE publishes policy statement on CCP discretionary payments
Following its consultation, BoE has published a policy statement (SoP) setting out its final approach to the power to temporarily restrict or prohibit discretionary payments by CCPs to ensure continuity of critical...
Government requests AI update from regulators
Following its response to the Government’s AI White Paper consultation, the Department for Science, Innovation and Technology has asked the FCA and BoE to publish information outlining their strategic approach to...
Former analyst guilty of insider dealing and fraud
Following a 12-week trial brought by the FCA, Mr Mohammed Zina has been sentenced to 22 months’ imprisonment for insider dealing and fraud. Through his analyst role at Goldman Sachs International , Mr Zina came...
FCA publishes CMC review on unregulated claims activity
FCA has carried out a multi-firm review looking at whether CMCs have been using their FCA-authorised status to legitimise unregulated services. It has found that some firms in the sample actually carried out very little...
OFSI publishes ransomware guidance
OFSI has published financial sanctions guidance for ransomware. The guidance explains that the government uses the financial sanctions regime to target the ransomware threat actors who cause the highest harm to the UK...
FCA asks advice firms for information on ongoing charges and Consumer Duty
FCA has asked 20 large financial advisory firms for information on whether, and if so how, they have assessed their delivery of ongoing services against the Consumer Duty. The survey follows on from a letter FCA sent to...
Market Watch focuses on organised crime
The latest edition of FCA’s Market Watch looks at actions firms can take to mitigate the risks of being used by Organised Crime Groups. It says suspicious trading by members of OCGs forms a large proportion of the...
FCA intervenes in 10,000 ads in 2023
FCA has published its financial promotions data for the last quarter of 2023 and the entire past year. It has: caused over 10,000 promotions to be withdrawn or changed in 2023 (a 17% increase on the previous year);...
LSB publishes lending standards consultation responses
The Lending Standards Board (LSB) has published its response to the views received on its consultation on a review of the Standards of Lending Practice (the Standards) for business customers. The review itself was...
OFSI updates guidance
2024 will see OFSI move to digital guidance which it says will enhance accessibility and user experience. It will not be making fundamental content changes as it starts to make the changes. As a start, it has updated...
FCA Panels respond on FOS 2024 Plans and Budget
FCA Practitioner Panel and FCA Smaller Business Practitioner Panel have responded to FOS 2024/25 Plans and Budget and the consultation on charging professional representatives. The Practitioner Panel: supports the £100...
FCA improves service metrics
FCA’s latest set of authorisations metrics, covering the quarter to December 2023, shows 9 green metrics, 6 amber and no red. It determined 97.8% of applications overall within the statutory deadlines. No areas...
FCA fines and bans individual over LCF fin proms
FCA has fined Floris Huisamen, former director of LCF, £31,800 and banned him. Mr Huisamen had signed off financial promotions that gave a misleadingly positive impression of the minibonds LCF marketed. He had been...
Pay.uk responds on VRP expansion
Pay.uk has responded to PSR’s proposal to expand variable recurring payments. In principle, it supports a multilateral agreement as the best way to deal with expansion, and says it has the appropriate expertise to...
Home Office responds on SARs regime review
The Home Office has published its response to the 2019 Law Commission report and recommendations on the SARs regime. The report had made 19 recommendations, of which the Home Office accepts 13. The uncontended...
HMRC updates MSB guidance
HMRC has updated its AML guidance for money service businesses. The guidance is dated May 2023 and has just been approved by Treasury.
Tribunal backs FCA on EMI
The Upper Tribunal has agreed not to suspend the restrictions FCA placed on EMI Nvayo Limited last year. The wide restrictions stop the firm carrying on EMR business or disposing of assets. FCA welcomed the decision...
Firms pause sales of GAP insurance
At FCA’s request, multiple insurance firms have agreed to pause sales of GAP insurance. These firms account for 80% of the GAP market. FCA is concerned that GAP insurance is failing to provide fair value to...
BoE discussion papers on RTGS
BoE has released two discussion papers on RTGS (Real-Time Gross Settlement) service operating hours and access policies. BoE aims for these papers to be the basis for further research and dialogue with the private...
FCA updates on reducing and preventing financial crime
FCA is now half way through its 3 year strategy on reducing and preventing financial crime, and has summarised its work over the last 18 months. It notes that: when it set its strategy, there was no national plan (the...
FCA welcomes call for input on ‘Big Tech’ competition issues
FCA has issued a letter welcoming the Competition Division’s call for input on the potential competition impacts from data asymmetry between Big Tech and firms in financial services. In particular, FCA notes that...
FCA Practitioner Panel responds to access to cash proposals
The Practitioner Panel has responded to the FCA’s access to cash proposals (CP23/29). The Practitioner Panel believes that: the approach is responsive to changes in need which may derive not only from shifts in...
UK Finance responds on stablecoins
UK Finance has responded to the FCA and BoE discussion papers on regulating stablecoins. It is generally supportive of the broad proposal to build upon the existing regulatory/legislative regime for stablecoins used for...
BoE extends stablecoin consultation deadline
The BoE is keen to receive a wide range of feedback in response to its discussion paper on regulating stablecoins. It has therefore extended the consultation period which will now close at 10am on 12 February 2024. As a...
FCA publishes blockchain research
FCA has published a research note entitled ‘Review of Maximal Extractable value (MEV) and Blockchain Oracles’ in collaboration with Futuresight Business Intelligence Ltd, the Financial Industry Regulatory...
FCA issues insurers mandatory survey on non-financial misconduct
The FCA has issued a notice requiring regulated Lloyd’s Managing Agents, London Market Insurers (including P&I Clubs), and Lloyd’s and London Market Insurance Intermediaries (and Managing General Agents)...
FIN. TeamFCA speech: the UK listing regime
Clare Cole, Director of Market Oversight at FCA, has delivered a speech about developments since the UK Listing Review and the next steps for reform. Highlights include: In December, FCA set out detailed proposals for...
Government publishes response to AI Regulation White Paper
The Government has published the response to its AI Regulation White Paper consultation. Whilst the Government acknowledges that legislative action will eventually be needed to tackle the challenges of AI, the response...
HMRC publishes details of live FTP tax evasion offences under investigation
HMRC has published details of the number of live corporate criminal offences (CCO) for the failure to prevent tax evasion under investigation as at 1 January 2024. HMRC has 35 potential cases underway, including: 11...
New FCA webpage on sustainability disclosure and labelling regime
Following the publication of its policy statement in November 2023, the FCA has launched a new webpage on the sustainability disclosure and labelling regime. The webpage sets out the steps firms should take in...
Changes to FPO exemptions
Changes to the exemptions for “business angel” investors took effect on 31 January. Read our article on the changes for promotions to HNWIs and SCSIs.
Court refuses judicial review of debt packager rules
The Administrative Court refused permission for a judicial review claim of FCA’s decision to ban referral fees for debt packagers. The rules took effect last year. FCA made them to remove a strong incentive for...
ABI says motor premiums still rising
ABI’s Motor Insurance Tracker shows the average price paid for motor insurance has continued to rise. The cost to insurers to pay claims is main cause of these rises. The Tracker shows that between 1 October and...
PRA consults on approach to rule permissions
PRA has proposed a new Statement of Policy setting out its approach to the granting of rule permissions under s.138BA of FSMA – a new power for PRA to enable firms not to apply certain rules, or to apply them in a...
Treasury creates “designated activities” regime for public offers
The Public Offers and Admissions to Trading Regulations 2024, which Treasury made on 29 January, replace the assimilated EU Prospectus Regulation and create UK regime to replace the former EU regime. In doing so, it...
FCA appeal against Tribunal decision allowed
Following the Upper Tribunal’s decision last year in relation to FCA’s decision to fine and ban Markos Markou, when the Tribunal concluded FCA’s decisions were unreasonable, FCA announced its intention...
EEA states “equivalent” for overseas funds
Baroness Vere of Norbiton, Treasury Lords Minister, has announced that the Government has decided that all EEA states have been assessed as “equivalent” for the purposes of the UK’s Overseas Funds...
FCA reports on “flying” and “printing”
FCA has reported on the practices of ‘flying’ and ‘printing’ in Market Watch 76. It has described these practices (which it originally raised in Market Watch 57) as: ‘Flying’ is...
BoE updates enforcement approach
BoE has published its final policy and feedback to its consultation on its approach to enforcement. We covered the consultation here. The changes (including changes from the original consultation that BoE has made in...
PRA fines for deposit protection failings
PRA has fined 2 entities in the HSBC group £57m for long-lasting historic failure properly to implement its Depositor Protection Rules. The failings occurred in HSBC Bank plc (HBEU) between 2015 and 2022, and in HSBC UK...
CPI 2023 shows poor performance from top countries
Transparency International’s Corruption Perception Index for 2023 makes for worrying reading – particularly in relation to countries which score best. TI notes that only Ireland and the Seychelles have...
FCA confirms rule updates
FCA’s latest Handbook Notice confirms rule changes its Board agreed in December, and the new motor finance complaints rules, as well as two changes agreed on 25 January. The two latest changes: update SUP 12.4...
BoE speaks on core payments infrastructure and policies
Victoria Cleland, Executive Director for banking, payments and innovation, spoke about how BoE is enhancing its core payments infrastructure and policies using technological innovation. The focus was on wholesale...
PRA reviews ring-fencing rules
PRA has published a report setting out conclusions to its review of its ring-fencing rules. PRA looked at the intents of the ring-fencing regime, its statutory objectives, the legal ring-fencing requirements and...
PSR heralds priorities for 2024
Chris Helmsley has looked ahead to a busy year ahead for payments. He spoke on: implementation of the mandatory APP reimbursement rules which will be a real step-change in the way the industry approaches fraud...
FCA publishes guidance on motor finance complaints
FCA has published a new page on its website giving guidance to firms on what it expects of them, if they are affected by the DCA review. The guidance covers: keeping customers informed: responding in line with existing...
FOS gives guidance on motor finance complaints
Following its consultation on its plan and budget for 2024/25 (which closes on 30 January), FOS has reiterated its expectation that complaints to it will increase in the next financial year. It has identified a number...
BoE responds on PRC remit
BoE Governor Andrew Bailey has written to the Chancellor, updating last year’s response to the letter setting out the Chancellor’s recommendations to the Prudential Regulation Committee (PRC). The letter...
FCA speaks on consumer tech
Chief Executive of FCA, Nikhil Rathi, has spoken on how consumer-facing technology helps to keep consumer markets “honest”. The key highlights from his speech were: FCA must use and adapt existing regulatory...
PRA consults on solvent exit planning for insurers
The PRA has issued a Consultation Paper (CP2/24) outlining proposals for PRA-regulated insurers to prepare for an orderly ‘solvent exit’ as part of their business-as-usual activities. The PRA aims to enhance...
FCA takes criminal proceedings for unauthorised activities
FCA has started criminal proceedings against an individual who persuaded over 200 investors to invest £19m in an investment scheme. It alleges that Guy Flintham made several fraudulent claims about the scheme and...
ML High Risk countries re-defined
From 22 January, a change to the MLRs means that Treasury will no longer periodically update Schedule 3ZA to the MLRs. The definition of “High risk third country” is now a country named on the FATF lists of...
Corporate Transparency and Companies House – 2024 changes
We’ve written this article on the changes to the role of Companies House in improving corporate transparency under the EECTA from March.
Suzanne GadoTheCityUK shows strength of UK financial services sector
TheCityUK’s annual report on the UK’s position as an international financial centre says that exports relative to imports of financial and related professional services shows how competitive UK industry is...
BSA hopeful of update to 1986 Act
The Building Societies Association welcomed the upcoming 2nd reading of the Building Societies Act 1986 (Amendment) Bill which will take place on 19 January. The Bill aims to put building societies on a level playing...
EU Council and Parliament progress AML proposals
The EU Council and Parliament have reached agreement on the new EU AML package which will, among other things: extend the concept of “obliged entity” to cover most of the crypto sector and also (from 2029)...
CMA consults on change to home credit market order
CMA is inviting comments on a potential review of part of the Home Credit Market Investigation Order 2007. The Order followed a market investigation that showed there was a lack of competition in home credit. The...
FCA Practitioner Panel responds to D&I proposals
The FCA Practitioner Panel has responded to CP23/20, the consultation paper on diversity and inclusion in the financial sector. Key points in the response include: Mandating that firms collect data across all...
FCA sets expectations on crowdfunders
In two portfolio letters, FCA has set out its expectations for Loan-based Peer-to-Peer (P2P) Lending platforms and Investment-based crowdfunding platforms. It supervises both types of platform in the Consumer...
PSR consults on changes to card-acquiring market remedy lists
PSR plans to update the list of “directed legal entities” for the purposes of the supply of card0-acquiring services and the method for updating it in the future. PSR says several providers have told it...
PRA writes to international banks on 2024 priorities
In a ‘Dear CEO’ letter, PRA has updated international banks and designated investment firms on its 2024 priorities. As with the other letters published today, the general themes will complement firm-specific...
PRA writes to insurers on supervisory priorities
Charlotte Gerken and Shoid Khan of PRA have written to insurers on PRA’s 2024 supervisory priorities. As with banks, the letter complements firm-specific communications from PRA following its periodic summary...
PRA consults on FSCS MELL 2024/25
PRA is consulting on the FSCS MELL for 2024/25. Under FSMA, PRA and FCA must set a limit for the total management expenses that the FSCS can levy on financial services firms. The MELL is the maximum amount that the FSCS...
PRA writes to deposit takers on 2024 priorities
David Bailey and Laura Wicks of PRA have written to UK deposit takers about supervisory priorities for 2024. The Dear CEO letter stresses that this sets out the regulator’s thematic priorities, and complements its...