The FCA has announced that it has largely completed its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance. It intends to publish the...
Category - Topics
Emma RadmoreFCA charges four individuals over suspected water scam
The FCA has charged four individuals with conspiracy to commit fraud by false representation. Two of the individuals have also been charged with money laundering. The FCA alleges that the individuals ran an unauthorised...
Harry WellsFCA publishes Mortgage Charter uptake data
In June 2023, the FCA introduced new rules to support the Government’s Mortgage Charter’s commitments, including providing for firms to allow customers to make reduced capital payments for up to 6 months, or...
Government sets out third phase of Smarter Regulatory Framework
Following its Smarter Regulatory Framework (SRF) delivery plan, Treasury has published a follow-up paper which sets out the progress made so far and the government’s approach to the next phase of the SRF programme...
Treasury outlines approach to designating CTPs
HM Treasury has published a paper outlining its approach to designating critical third parties (CTPs) to the UK financial services sector. Highlights of the paper include: Treasury generally expects to base its...
PSR speaks on the future
Chris Hemsley, speaking at the Pay360 conference, looked at how far payments innovation has come this century, and spoke of some challenges for the future. He focused on: the important role of a Payment System Operator...
Wolfsberg group updates CTF statement
The Wolfsberg Group has updated its 2002 statement on the Suppression of Financing of Terrorism. The updated statement reflects changes in laws and also public-private cooperation in the fight against terrorist...
FCA writes to CEOs on consumer lending strategy
The FCA has published a “Dear CEO” letter on its strategy for Consumer Lending. The letter focuses on three of the lending portfolios within the market – high-cost lending, mainstream consumer credit...
PRA to revamp Rulebook website
The PRA is to launch a new website for its Rulebook on 10 April. The site url will remain the same, but the new site is intended to be more engaging and user friendly. New features will include easier links to policy...
FCA calls for improvement in Retirement Income Advice
The FCA has published a Thematic Review and written to CEOs of financial advisers, asking them to assess the compliance of their retirement income advice, and take steps to address any shortcomings they find. It...
FCA extends enforcement CP response period
The FCA has extended the consultation period on its consultation on publicising enforcement investigations. The consultation was due to close on 16 April, but will now remain open until 30 April.
FCA updates approach to international firms
The FCA has published an updated version of its approach to international firms. Its guidance applies equally to firms applying for authorisation and those that are already authorised. It does not cover payment and e...
FCA consults on changes to guidance for insolvency practitioners
The FCA is seeking feedback on its proposed amendments to FG21/4 – Guidance for insolvency practitioners (IPs) on how to approach regulated firms. The amendments are to reflect legal, regulatory and economic changes...
FCA publishes Business Plan 2024/2025
The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...
Regulators warn firms on debt collection
The FCA has combined with regulators Ofgem, Ofwat and Ofcom to warn firms about debt collection practices and set out the regulators’ expectations across markets. As many consumers continue to experience cost of...
FSB adds to guidance on operational continuity
The FSB has added a supplementary note to its 2016 guidance on arrangements to support the continuity of critical shared services in the event of resolution. The guidance, which assists supervisory and resolution...
Court decides on investment property loans
The Court of Appeal has found in favour of an unregulated lender, confirming that agreements it entered into with individuals were investment property loans which were exempt from the RAO definition of “regulated...
FCA decides to fine and ban for sham trading
The FCA has published a Decision Notice setting out its decision to fine Nailesh Teraiya £5.95m and ban him, in its latest enforcement case involving “cum ex” payments. Mr Teraiya was formerly the sole...
FCA confirms FIN074 return requirement
The FCA has confirmed that it sends firms the FIN074 return so that it can work out whether the firm needs to pay the Economic Crime Levy – not all firms that receive the return will need to do so. The FCA also...
FCA to review firms’ treatment of vulnerable customers
The FCA has announced a review into how firms are treating and responding to the needs of vulnerable customers. It will look at: firms’ understanding of consumer needs; skills and capability of staff; product and...
FCA Practitioner Panel responds to PIFs capital deduction for redress proposals
The FCA’s 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 supports the...
FCA Practitioner Panel responds to CTP proposals
The FCA Practitioner Panel has responded to the FCA’s proposals to increase the resilience of critical third parties (CTPs) providing key services to the UK financial services sector. Key points in the...
FCA speech: investing in outcomes
Nikhil Rathi, Chief Executive of the FCA, has delivered a speech on the FCA’s broad approach to topics in which investors have recently been expressing significant interest. The speech highlighted the following as...
Transition Finance Market Review calls for evidence
The TFMR has issued a call for evidence, open until 25 April 2024, seeking views to help its future work. The TFMR was launched in January and will report in the summer. It proposes to take a broad view of what...
Treasury publishes payment contract termination changes
Treasury has published the near final version of the amendments to the PSRs that will require payment services providers to give customers at least 90 days’ notice of termination of framework payment services...
AI in financial services: gathering speed
Read our article on the latest reports on use of AI in financial services and the potential benefits of generative AI.
SME Manifesto redoubles efforts in call to action
The All-Party Parliamentary Group on Fair Business Banking has republished its call for action to help it build its SME Manifesto, which wants to target access to finance and dispute resolution. So far, it has started...
FCA speaks on the future of pensions
Nikil Rathi has spoken on pensions freedoms. He noted that, with the increasing flexibility consumers have on accessing their pensions savings, it is ever more important for the individual to be sure they are saving...
FOS limit to increase to £430,000
The FOS maximum compensation limit will increase from 1 April 2024. It will be: £430,000 for claims referred to FOS on or after 1 April 2024 about acts or omissions by firms on or after 1 April 2019; and £195,000 for...
Treasury releases draft laws on payment delays
The Treasury has published the Payment Services (Amendment) Regulations 2024, which will allow payment services providers to delay payment processing where there are reasonable grounds to suspect fraud or dishonesty...
FCA updates financial crime pages
The FCA has updated the page on its website that lists all its financial crime resources to include its most recent publications.
FCA publishes mortgage lending statistics for Q4 2023
The FCA has published mortgage lending statistics for Q4 2023. The data comes from the 340 regulated mortgage lenders and administrators who are required to submit the Mortgage Lending and Administration Return each...
PRA publishes solvent exit planning statement
PRA has published Policy Statement PS5/24 – Solvent exit planning for non-systemic banks and building societies providing feedback to consultation paper (CP) 10/23 – Solvent exit planning for non-systemic banks...
Stephen WilsonLloyd’s report: generative AI and cyber risk
Lloyd’s has published a report on how the growth of generative AI could impact upon cyber risk. Whilst the report recognises the benefits generative AI can bring, it highlights that generative AI tools pose an...
FCA updates position on crypto Exchange Traded Notes
The FCA has stated it will not oppose requests from Recognised Investment Exchanges (RIEs) to create a cryptoasset-backed Exchange Traded Notes (cETNs) UK listed market segment. The cETNs will be available only to...
FATF updates beneficial ownership guidance
FATF has updated its risk based guidance for its Recommendation 25 on Beneficial Ownership and transparency of legal arrangements. The guidance focuses on understanding trusts, and the risks associated with them. It...
Treasury consults on MLR improvements
The Treasury is consulting on how to make the Money Laundering Regulations more effective. The paper follows previous consultations on changes to the MLRs and picks up on comments about how many of the provisions of the...
FCA fines and bans over pension transfer advice and oversight
It’s been a while since the last published notice, but FCA continues to take action against firms and individuals relating to pension transfer advice. It has fined Inspirational Financial Management (in...
BoE speech: proposed UK regime for critical third parties
Gareth Truran, BoE Director of Prudential Policy, has delivered a speech on current proposals for the UK regime for critical third parties (CTPs), at the TechUK summit. Summarising the regulators’ current proposals, Mr...
FCA updates whistleblowing data
FCA has released data showing the number of new whistleblowing reports received, mainly through its online reporting function, in Q3 and Q4 of 2023. Between July and September 2023: There were 280 new whistleblowing...
Treasury Committee publishes Sexism in the City findings
Following its Sexism in the City inquiry into the barriers faced by women in financial services, the Treasury Committee has published a report of its findings. Key findings include: there have been some incremental...
Treasury announces National Payments Vision
Following the publication of the Future of Payments Review, Treasury has accepted the recommendation to publish a National Payments Vision. The Vision will constitute the government’s full response to the Future...
BoE speech: data and analytics strategy refresh
James Benford, BoE Executive Director for Data and Analytics Transformation and Chief Data Officer, has delivered a speech on BoE’s new Bank-wide approach to data and analytics strategy at Tech Show London. The...
FCA updates on skilled persons reports
The latest statistics for skilled persons reports FCA commissioned in Q3 2023/24 show: 24 reports in total 7 related to the retail banking and payments sector, 6 to retail investments, 5 to wholesale markets and 4 to...
Treasury reverses FPO and FCA makes clear statement
FCA has confirmed that it and the industry implemented the changes to the HNWI exemption in the FPO on 31 January, as required by a change in the law which in turn followed detailed consultation and recommendations from...
Budget reverses HNWI update and ups Economic Crime Levy
Among the announcements relevant to regulated financial services in Jeremy Hunt’s budget are: a bizarre U-turn to reinstate the previous eligibility criteria for high net worth and sophisticated investors, when...
FCA updates on Woodford
FCA has updated its website with further updates on the Woodford Equity Income Fund. It has confirmed the redress scheme became fully operational on 5 March and that payments are expected around Easter.
FCA commits to personal guarantee investigation
FCA has committed to conducting an investigation into the use of personal guarantees by lenders as security for loans made to small business customers. FCA is acting in response to a super complaint brought by the...
FCA speaks on “future-fit” workforce
Emily Shepperd of FCA has spoken on what firms need to be doing to make sure they get and keep the right talent which can respond to new events and different methods of working. She looked at the need to unlock talent...
Chancellor announces reforms to pension fund disclosures
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...
FCA 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...
Government 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...
FCA 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...
NAO reports on BoE management of non-financial risks
The National Audit Office has published a report looking at whether the BoE has efficient and effective systems and processes in place to manage non-compliance with legal, ethical and staff policy requirements. The...
FCA updates on crypto stats
FCA has updated its information pages on crypto AML applications to reflect statistics to 1 March 2024. It has now received 340 applications since January 2020, including 26 in the past year and 2 in the past month...
AIF 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 publishes quarterly consultation
The FCA has published its regular quarterly consultation on miscellaneous amendments to its Handbook. The proposed amendments include a new Statement of Policy setting out the FCA’s approach to using the...
New FCA webpage on wind-down plans
The FCA has launched a new webpage which sets out when and how firms should prepare a wind-down plan. A typical wind-down plan should include: Scenarios – a firm should identify all the scenarios that could lead to it...
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...
FIN. TeamSFO 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...
Government responds on net zero recommendations for financial sector
The Government has responded to the Environmental Audit Committee’s recommendations in respect of boosting the role of the financial sector in achieving net zero. It says it won’t introduce quarterly...
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...
Treasury consults on PRA ability to modify rules
Treasury has published a draft statutory instrument using its powers under s138B FSMA. This provision was introduced by FSMA 2023. PRA and FCA have always had power to modify the application of certain rules, but before...
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...
Law Commission calls for evidence on digital assets
The Law Commission has published a call for evidence and is also seeking views on draft legislation on digital assets. It wants better to understand the challenges that digitalisation poses for private international...
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...
PRA confirms result of rule review process
PRA has published its feedback following its consultation on its how it reviews its rules. None of the 13 respondents raised any major concern but made some suggestions for improvement, largely around better engagement...
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...
UK Finance responds on anti-greenwashing guidance
UK Finance has responded to FCA’s consultation on its proposed Anti-Greenwashing Rule. It supports FCA’s overall intent, but suggests several areas where the guidance could be clearer. Particularly, it wants...