FCA has published its policy statement and final rules which will replace the IDD Delegated Regulations with rules and guidance in the FCA Handbook. The Regulations included: the standardised IPID format; product...
Category - Topics
Emma RadmoreBoE updates resolution approach
The BoE has set out the framework it would use to resolve failing banks, building societies and dual-regulated investment firms. It has updated its “Purple Book” which explains all the key features of the...
MLR changes address domestic PEPs
Changes to the MLRs will take effect from 10 January 2024, which meet the requirements of s77 FSMA 2023 and provide that the starting point for EDD assessments where a customer is a domestic PEP or is a family member or...
New Russian sanctions take effect
The Government has introduced a new set of financial and trade sanctions against Russia. Taking effect from 14 December, the package includes broadening the existing sanctions in respect of correspondent banking and...
OFSI publishes Annual Review
OFSI has published its annual review for 2022-23. The review looks at how OFSI has expanded to meet its increased workload and how it has transformed its practices to deliver more effective implementation and...
FCA welcomes ESG ratings code
FCA has welcomed the launch of the ICMA and IRSG voluntary code for ESG ratings and data products providers. It has encouraged all relevant providers to sign up to it. The Code sets principles on: Good Governance...
FOS data shows vehicle-related complaints on the increase
The latest FOS product complaints data, covering July – September, shows that complaints relating to vehicle issues account for a quarter of all complaints. Complaints about vehicle finance are at a 5-year high...
PRA publishes consent modification for pure reinsurance branches
PRA has published an update to its Modification by Consent which has been available for pure reinsurance third country branches since Brexit. The current MbC is due to expire on 31 December, and PRS is offering an...
FCA publishes Consumer Duty retail banking review
FCA has published its conclusions from a multi-firm review it carried out in the retail banking and lending sector, to help it understand how firms had approached reviewing their products and services against the...
Government creates OTSI to clamp down on Russian sanctions breaches
A new “Office of Trade Sanctions Implementation” will act to strengthen enforcement on companies that are evading Russian sanctions. Following recent announcements, one of its jobs will be to look at...
PRA publishes letter to CROs on underwriting profit allowed in firms’ IMs
On 11 December 2023, the PRA published a Letter to general insurers’ chief risk officers (CROs) outlining the findings of its 2023 thematic review of expected underwriting profit allowed for in firms’...
FIN. TeamEIOPA consults on greenwashing limitation guidance
EIOPA has published a consultation on its draft Opinion on sustainability claims and greenwashing. The aim of the Opinion is to achieve more effective and enhanced supervision of sustainability claims across Europe and...
FCA publishes mortgage lending statistics for Q3 2023
FCA has published a webpage on mortgage lending statistics for Q3 2023. The data was collected by FCA from around 340 regulated mortgage lenders and administrators who are required to submit the Mortgage Lending and...
Basel Committee consults on targeted adjustments to standard on IRRBB
The Basel Committee has published a consultation on targeted adjustments to its 2016 standard on interest rate risk in the banking book (IRRBB). Under the IRRBB standard, banks are required to calculate measures of...
FCA demands action on retained interest on customers’ cash balances
FCA has written a ‘Dear CEO’ letter to investment platforms and SIPP operators setting out its concerns on the way they deal with any interest earned on customers’ cash balances. After surveying 42...
PRA publishes near-final policy statement on Basel 3.1 standards implementation
The PRA has published a near-final policy statement which provides feedback to responses to various chapters in CP 16/22. In CP 16/22, PRA set out proposals to implement the parts of the Basel 3.1 standards that remain...
PRA Publishes Solvency II Review Considerations for year-end 2023
The PRA has published its Solvency II Review Considerations for year-end 2023. The statement outlines the upcoming changes to HM Treasury (HMT) and the Prudential Regulation Authority’s (PRA)’s Solvency II...
Statutory instruments published for UK Solvency II regime review
On 8 December 2023, statutory instruments for the UK Solvency II regime were published. The Insurance and Reinsurance Undertakings (Prudential Requirements) (Risk Margin) Regulations 2023 (SI 2023/1346) and the The...
NAO encourages FCA to manage risks better
The National Audit Office has published a report looking at how FCA deals with its new responsibilities and past regulatory failures. The report says FCA is making good progress and has made significant changes, but it...
PRA updates on SDDT waivers
PRA has updated its website to include firms for the modifications by consent that Small Domestic Deposit Takers can apply for from 1 January 2024, together with its Directions relating to them. The modifications are...
PRA consults on approach to policy
Building on its 2022 discussion paper, the PRA is now consulting on its approach to policy. The paper sets out the PRA’s approach on: its primary and secondary objectives, including its new secondary...
FCA outlines aims for consumer investments policy initiatives
As a continuation of its Consumer Investments Strategy (CIS), the FCA has set out the direction of travel for its consumer investments initiatives. It will focus on the following five core initiatives: accessible...
FCA consults on proposals for closing the advice gap
The FCA and Treasury have published a joint discussion paper (DP23/5) which outlines proposals to help people make more informed investment and pensions decisions. The proposals form part of the Advice Guidance Boundary...
Treasury response on regulator secondary objectives
In May, Treasury published a call for proposals on which metrics the FCA and PRA should publish in relation to the secondary growth and competitiveness objectives introduced under FSMA 2023. In its formal response to...
Different perspectives on Edinburgh Reforms progress
While the Treasury has heralded the progress made since the Edinburgh Reforms were announced a year ago, the Treasury Committee is less pleased. The Economic Secretary to the Treasury, Bim Afolami, focussed on the...
NCA warns of circumvention tactics on Russian sanctions
NCA has issued an alert warning financial and other businesses that Russia is trying to procure UK sanctioned goods through intermediary countries, but using complex supply chains and routes. The UK, with the US, EU and...
FCA confirms no action against Blackmore fin prom approvers
FCA has published a copy of its letter to the Treasury Select Committee confirming that it will not be taking action against either of the two firms that approved promotions for the collapsed Blackmore Bond plc’s...
PSR publishes cycle 2 APP fraud reporting guidance
PSR has published its finalised reporting guidance for firms required to provide it with APP scam data, the second batch of which will cover the calendar year 2023. This cycle will be a 12 month report, rather than the...
IAIS updates on AI work
IAIS has issued an update on its work on the adoption of AI and machine learning in the insurance sector. It has reviewed guidance from 12 international supervisors and organisations. Among its conclusions are that the...
IRSG highlights importance of transparent beneficial ownership
The International Regulatory Strategy group has published a report which makes 7 recommendations around how a globally transparent and effective beneficial ownership regime can be achieved. The recommendations focus on...
FCA consults on access to cash
FCA is using its powers under FSMA 2023 to consult on new rules to require designated banks and building societies to assess gaps in access to cash and act to fill them. FCA says that, currently, over 95% of people in...
Regulators consult on critical third party supervision
BoE, PRA and FCA are consulting on how to oversee the resilience of critical third party service providers, where those providers service UK regulated firms and FMIs. The debates leading up to the introduction of the...
Financial Stability report shows same challenges remain
The December 2023 Financial Stability Report shows little change from the previous version. Conditions remain challenging and households and businesses continue to face higher borrowing costs. However, the banking...
PRA and FCA confirm remuneration changes for small firms
PRA and FCA have published feedback on their consultations on enhancing proportionality in respect of the remuneration rules in respect of dual-regulated and small firms. While the regulators needed to feed back...
FCA updates on cash savings
FCA has provided an update on progress made in implementing its cash savings action plan. In its update FCA notes that it has seen progress in the speed and size of interest rate changes for savers and improvements in...
Stephen WilsonPSR speaks on preparing for APP scam reimbursement
Chris Hemsley has spoken of the preparatory work that both sending and receiving PSPs should be doing ahead of the mandatory reimbursement requirement for APP frauds coming into effect next year. The new rules will mean...
FCA updates on LIBOR transition powers
On 1 January 2018 the EU Benchmark Regulation (BMR) took full effect. Following the UK’s withdrawal from the EU and the end of the transition period, the BMR has been brought into UK law (UK BMR). Under the UK BMR, FCA...
Harshil PatelFCA proposes credit information changes
FCA has announced proposals which will: require FCA-regulated data contributors, such as lenders, to share credit information with credit reference agencies (CRAs); introduce a common data reporting format to enhance...
Treasury publishes MMF policy framework
HM Treasury has published its Policy Note (6 December 2023) incorporating a near-final version of the statutory instrument (SI) to replace the Money Market Funds Regulation and create a new framework for Money Market...
FCA consults on updating Money Market Funds regime
The FCA has published its consultation paper (CP23/28) setting out its proposals to enhance the resilience of Money Market Funds (MMFs) based in the UK. It has been developed in collaboration with the Treasury and the...
FOS consults on plans and budget 2024/25
FOS is consulting on its proposed plans and budget for 2024/25. Questions include: what volume and trends should FOS be expecting in banking and consumer credit, insurance, investments and pensions, SME volumes, CMC...
PRA publishes simpler-regime firms policy statement
The BoE has published its Policy statement: The Strong and Simple Framework: Scope Criteria, Liquidity and Disclosure Requirements (PS15/23) (5 December 2023) incorporating feedback from consultations regarding...
Treasury publishes draft Ombudsman Scheme Regulations
HM Treasury has published a policy note and draft of the proposed statutory instrument which, if approved by Parliament, will allow the FOS to charge case fees to CMCs and other relevant professional representatives who...
Treasury updates AML list of high-risk countries
Treasury has made the second set of amendments this year to its list of high-risk countries for AML/CTF purposes. The updated schedule was made on 4 December and took effect on 5 December. The changes mean that...
PRA consults on step-in risk assessments
PRA is consulting on proposed changes to rules and policy that will require CRR firms and consolidation entities that are not classified as small domestic deposit takers to regularly assess their step-in risk –...
Treasury Select Committee comments on plans for a ‘digital pound’
The Treasury Select Committee (the Committee) has commented on Bank of England (BoE) and HM Treasury proposals for a retail ‘Central Bank Digital Currency’ (CBDC) or ‘digital pound’. Such a...
Digital Markets, Competition and Consumers Bill to be debated
The Digital Markets, Competition and Consumers bill is being debated by members of the House of Lords during a second reading on Tuesday 4 December. The bill will create a regime to empower the Competition and Markets...
FCA updates on CD expectations for fractional share sales
Treasury has recently announced that fractional share contracts should be eligible as ISA investments – which will mean a change to the longstanding HMRC position. FCA has taken the opportunity to remind firms...
FCA consults on reforming commodity derivatives regulation
FCA is consulting on proposed changes to: position limits and exemptions; position management controls; reporting; and the ancillary activities test in relation to commodity derivatives. FSMA 2023 has given FCA...
FCA consults on Overseas Funds Regime
FCA is consulting on how the Overseas Funds Regime should operate in practice. The Government has designed the regime to provide a streamlined process to allow funds from jurisdictions assessed as...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation (CP23/25: Quarterly Consultation Paper No. 42) on proposed miscellaneous amendments to its Handbook. FCA is proposing to consult on making: amendments to the TC...
MoU between FCA and OFSI
On 1 December 2023,FCA published a Memorandum of Understanding (MoU) (dated 21 November 2023) between it and OFSI. The MoU sets out the collaboration and information exchange between FCA and OFSI. It replaces the...
FCA publishes regulatory initiatives grid
The FCA has published the Financial Services and Regulatory Initiatives Forum’s latest biannual Regulatory Initiatives Grid. This will allow the financial services industry and other stakeholders to understand and...
FCA fines three money transfer firms for breaking competition law
The FCA has fined three money transfer firms for breaching competition law. Dollar East (International Travel & Money Transfer) Ltd, Hafiz Bros Travel & Money Transfer Limited, and LCC Trans-Sending Limited...
FCA sets out temporary forbearance measure for investment company cost disclosure
The FCA has published a statement in response to concerns about costs and charges disclosure in the PRIIPs KID, UCITS KIID and MiFID II requirements. The concern was that the required costs and charges disclosure for...
BoE consults on wholesale cash distribution market oversight
Following its commitment to safeguard access to cash across the UK, the Government granted the BoE powers to ensure that the wholesale cash distribution infrastructure remains effective, resilient and sustainable as...
FCA proposes capital retention requirements for personal investment firms
FCA is consulting on a new requirement that would mean personal investment firms subject to IPRU(INV) 13 would need to calculate potential redress liabilities towards customers and hold capital against them. It remains...
FCA confirms sustainability disclosure and labelling regime
FCA has confirmed new rules that should give investors greater confidence in sustainability-related claims about investments. The package consists of: an anti-greenwashing rule, effective from 31 May 2024 that will...
FCA speaks on importance of culture and conduct
Emily Shepperd, FCA COO and Executive Director of Authorisations stressed that firms must consider how their own cultures can drive better outcomes. Key highlights of the speech include: How the Consumer Duty has raised...
OFSI defends licence refusal
The High Court has supported OFSI’s decision to refuse to grant licence requests relating to a Designated Person. Mikhail Fridman had filed the first claim under s38(2) of SAMLA (and also the first challenge to...
BoE publishes fees regime for financial market infrastructure supervision
BoE has responded to consultation on Fees regime for financial market infrastructure supervision 2023/24, fee rates for the 2023/24 fee year and statement of policy. In its original consultation, the Bank put forward...
TWG publishes report on fund tokenisation
The Technology Working Group (TWG), which is the City Minister’s forum for examining the impact of technology on the UK’s investment and asset management sectors, has published its first report. TWG worked...
PRA and FCA consult on reformatted control change guidance
PRA has published a consultation paper containing proposals on how it and FCA plan to replace the EU guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector...
UK and Japan discuss cooperation
The 2nd Financial Regulatory Forum (FRF) and the 5th Financial Dialogue (FD) between Japan and the UK was held on 27 November 2023 and a joint statement summarised the key discussion points. Overall, both countries hope...
FCA publishes final report on IFPR implementation observations
FCA has published the final report on its review into firms’ progress in implementing the ICARA process and reporting requirements under the IFPR. The IFPR was introduced to streamline and simplify the prudential...
FSB publishes 2023 G-SIB list
FSB has published the 2023 list of globally systemically important banks (G-SIBs) using end-2022 data and applying the assessment methodology designed by the Basel Committee on Banking Supervision (BCBS). Compared to...
UK Finance reports on impact of AI in financial services
UK Finance has published a report that looks at the uses of AI in the financial sector. The report covers: how and where AI is being deployed; where there is promise for the future; how to make more of opportunities;...
Autumn Statement: financial regulatory issues
The Government’s Autumn Statement covered several new and ongoing actions relevant to the financial services sector, including: legislation to replace retained EU, mainly in the markets space (securitisations...
BBRS to continue into 2024
BBRS and its participating banks have agreed the service will continue into 2024 – with no new set date for scheme closure.
Government publishes PRIIPs replacement legislation
The Government has published draft legislation that will replace the PRIIPs Regulation and create a new UK retail disclosure framework for “consumer composite investments” (CCIs). The initiative is part of...
Treasury feeds back on Digital Securities Sandbox
Treasury has published the outcome to the consultation on a digital securities sandbox. The sandbox will be operated by BoE and FCA and is intended to help facilitate the use of digital asset technology in UK financial...
Treasury publishes Future of Payments Review
Treasury has published its Future of Payments Review, commissioned from Joe Garner, as part of the Autumn Statement package. The review asked: what are the most important consumer retail payment journeys both today and...
FCA consults on fee policy
FCA is consulting on its policy proposals for the 2024/5 fee year. For application fees, FCA did not increase these fees last year, but now feels it is appropriate to do so as its costs for processing applications are...
FCDO and OFSI clarify “control”
FCDO and OFSI have given guidance on their approach to what “ownership and control” means when a public official is designated. The guidance confirms that any entity which is owned or controlled by a...
FCA updates AR pages
FCA has updated the page on its website that provides information for principals of ARs. The main purpose of the additions is to remind firms of the need to comply with the Consumer Duty if they have retail customers...
Lenders go into administration
FCA has confirmed that Morses Club Limited, a home collected credit lender, and its subsidiary Shelby Finance Limited (Dot Dot Loans – an online HCST lender) have gone into administration. It provided information...
FCA speaks on importance of culture
Sheree Howard, FCA’s Executive Director of Risk and Compliance Oversight spoke about the importance of the execution of a plan being as vital as its ideology and purpose. She said firms must look at whether they...
Was a bonus clawback provision in a contract of employment a restraint of trade?
Mr Steel worked for Omerta. Under his contract of employment, his remuneration consisted of a basic salary plus a discretionary bonus scheme. Payment of the bonus was conditional on him remaining employed for three...
Karen Plumbley-JonesPRA consults on funded reinsurance
PRA is consulting on its proposed expectations when life insurers enter into or hold funded reinsurance arrangements as cedants. It feels it needs to set out these expectations to advance its primary objectives by...
FCA calls for improvement in fund manager ESG principles
FCA has carried out a review as a follow up to its Dear Chair letter of July 2021 to authorised fund managers. It found that most firms have tried to comply with FCA’s expectations on design, delivery and...
FCA updates on secondary credit broker expectations
FCA has a new page on its website for secondary credit brokers, on which it sets out what it expects from applicants, including the difference between limited permission and full permission firms. The page links to...
ECCTA starts to take effect
The first commencement order under the Economic Crime and Corporate Transparency Act 2023 brings into force on 15 January 2024 several parts of the Act, including the provisions on: the change to POCA to create...
SAR reporter booklet highlights recent cases
The November edition of NCA’s SARs Reporter Booklet summarises the outcome of several DAMLs which led to further enforcement action for fraud, money laundering and in raising safeguarding concerns about a...
FCA secures conviction of mortgage fraud broker
Larry Barreto, who had already pleaded guilty to 2 offences of arranging and advising on regulated mortgages without FCA authorisation, has been found guilty of 11 charges of fraud by false representation. For a period...
Lords recommends new Regulation Committee
The House of Lords Liaison Committee has recommended that a new financial services regulatory committee be created whose remit will be to look at financial regulation generally and particularly to scrutinise financial...
Basel Committee publishes discussion paper on digital fraud
The Basel Committee on Banking Supervision has issued a discussion paper on digital fraud and banking. The paper is a high-level assessment of the supervisory and financial stability implications of digital fraud for...
PRA writes to CFOs on Deposit Aggregators
PRA has written a letter to CFOs setting out the steps firms should consider taking to mitigate risks relating to deposit aggregators that firms may have relationships with. This follows a ‘Dear CEO’ letter...
PRA makes statement on recalculation of TMTP
The Solvency II Regulations 2015 allow firms to apply to the PRA for permission to undertake a recalculation of the deduction applied pursuant to the transitional measure on technical provisions (TMTP) every 24 months...
FCA publishes operating metrics
FCA’s latest authorisations metrics, for the quarter ending September 2023 shows overall improvement in meeting targets. 96.8% of all applications met statutory deadlines, and of the 16 metrics only 2 are red...
Tribunal makes limited costs order but criticises FCA and the law
The Upper Tribunal has published its judgment on the application for costs orders from Thomas Seiler and Louise Whitestone in relation to the Decision Notices issued by FCA as part of the action it took against JBI, and...
Supreme Court confirms postponement of limitation period for deliberate concealment of PPI commission payment
The Supreme Court judgment in Canada Square Operations Ltd v Potter supported the decisions of the County Court, High Court and Court of Appeal to hold that s32 Limitation Act 1980 applied to postpone the start of the...
NCA issues gold sanctions abuse warning
NCA has warned financial institutions to be aware of deliberate attempts to breach UK sanctions and launder sanctioned gold and hide it in supply chains. Several individuals and entities operating in and supporting...
FCA updates guidance on consumer investment firm applications
FCA has created a new page on its website aimed at consumer investment firms applying for authorisation. The page: explains what FCA means by a consumer investment firm; explains the threshold conditions and process for...
PSR consults on Direction review mechanism
PSR is consulting on the way in which it reviews its general directions and generally imposed requirements. FSMA 2023 has added new requirements for PSR to keep these under review and publish statements of policy about...
FCA updates on Woodford Scheme
Link Fund Solutions is to convene a meeting of all affected investors on 13 December to vote on whether to approve the proposed settlement fund in relation to the LF Equity Income Fund. FCA has confirmed it believes the...
BoE launches new stress test phase
BoE has published the latest phase of the System Wide Exploratory Scenario, which it first launched in June. The SWES is intended to help BoE understand the risks to and from non-bank financial institutions, and the...
FSCS updates on levy and forecast
FSCS has published its latest “Outlook” newsletter. FSCS does not expect to request any additional levies from firms during the current financial year and will carry forward any surpluses in any class to...
UK Finance responds on SME lending
UK Finance has responded to the Treasury Select Committee call for evidence on availability of finance for SMEs. Its response notes that 2022 saw the highest SME lending since comparable records began in 2012, on the...
Regulators consult on BoE levy regulations
the BoE and Treasury are consulting on how to implement the new levy based arrangement which will replace the Cash Ratio Deposit scheme. Deposit-taking firms (except credit unions and friendly societies) with eligible...
FCA portfolio letter to wealth managers and stockbrokers
FCA has published its Dear CEO letter to wealth management and stockbroker firms setting out its supervisory priorities and expectations for the sector. The letter focuses on financial crime prevention and Consumer Duty...