Sarah Pritchard has spoken on the role of regulation in encouraging investment in the City. She noted that proportionate regulation and a debate around risk appetite are key considerations in the review of financial...
Category - Topics
Emma RadmorePSR publishes autumn newsletter
Unsurprisingly, the PSR’s Autumn 2023 newsletter focuses on the busy summer the regulator has had with not only the new APP fraud reimbursement rules, but also its market reviews into scheme fees and cross-border...
Lords may compromise further on FTP fraud
A motion to be moved when the Lords next considers the Economic Crime and Corporate Transparency Bill will propose a further compromise with the Commons by exempting from the offence newly defined “small”...
Regulators consult on boosting D&I in financial services
In consultation papers published by the FCA and PRA today, proposals have been set out to boost diversity and inclusion in financial services firms. The aim of these proposals is to support healthy work cultures, reduce...
FIN. TeamFCA issues final warning on crypto promotions
FCA has published a final warning to crypto firms stressing the breadth of the definition of “financial promotion” and how it will affect crypto promotions going forwards. The communication is aimed at...
Court of Appeal finds against insolvent insurer policyholders in FSCS appeal
In the case of R. (on the application of Manchikalapati) v Financial Services Compensation Scheme [2023] EWCA Civ 1006, the Court of Appeal reinstated a refusal by the FSCS to compensate policyholders for an insolvent...
Laura WilesASA rules equity release ad “irresponsible and misleading”
ASA has published its ruling on an ad by Key Retirement Solutions Ltd, which promoted its equity release mortgage product off the back of a cartoon sketch of a couple taking financial advice, with a voiceover suggesting...
JMLSG travel rule guidance approved
Treasury has approved the addition to the JMLSG Guidance that provides guidance on implementation of the travel rule for crypto business. An updated Sector 22 and its annex are now approved.
UK Finance comments on account access and closure
UK Finance has commented on FCA’s report on account access and closure – noting that the main reason for account closure is not because of political beliefs or other lawfully held views, but because of...
Latest Ombudsman News updates on proactive settlement
The latest edition of Ombudsman News highlights the latest complaints data and updates on FOS’ extended trial to proactively settle complaints. It’s helped to resolve over 900 complaints as part of the trial...
Gibraltar temporary regime extended by 12 months
The transitional arrangements allowing Gibraltar firms to do business in the UK pending implementation of a new permanent regime has been extended by 12 months since the new permanent regime is not yet ready.
FCA updates on insurance market priorities
FCA has published a suite of portfolio letters for the insurance markets, off the back of its value measures data report, but covering its wider supervisory priorities. The letters note the importance of the insurance...
FCA calls on insurers to take action as it publishes latest fair value data
In 2021, FCA introduced rules requiring insurers to ensure their products provide fair value, which included submitting regular Value Measures Data to FCA. The aim of publishing this data was to create incentives for...
PRA speaks on Solvency UK
Gareth Truran of PRA has spoken on the “Solvency UK” initiative which will replace Solvency II. He said PRA is maintaining the momentum it needs to implement the reforms in 2024. He said the proposals PRA...
FCA to start action on UCITS marketing landing slots
FCA will shortly start contacting fund operators who are in the UCITS Temporary Marketing Permissions Regime with a view to starting discussions about landing slots for exiting the regime. FCA has not yet finalised the...
Court of Appeal upholds FOS jurisdiction on old PPI complaints
The Court of Appeal has confirmed that FOS has jurisdiction to deal with complaints relating to PPI underwritten by Assurant, that was sold by home shopping retailers in the early 2000s, before insurance distributors...
FCA reports on bank account access and closures
FCA has published its initial findings in its review of bank account access and closures. It has based its conclusions on information provided for the year to June 2023 by 34 firms. The key conclusion is that no firm...
Q1 complaints stats show increase in motor and building issues
FOS has published its latest quarterly complaints data. The data covers April – June 2023. All the most complained-about products have seen year on year increases, and the most complained about product remains...
FCA speaks on international collaboration
Ashley Alder has spoken on the importance of collaboration in international financial services. He touched on the UK-EU MoU and current IOSCO initiatives. He spoke of global initiatives such as climate and...
FCA finds issues in later-life mortgage business
FCA has reviewed the promotion and advice process of firms in the later-life mortgage sector and has found a number of problems. The nature of the product means they are often sold to customers at higher risk of being...
PRA updates on insurers in financial difficulties
PRA has published feedback on its consultation on dealing with insurers in financial difficulties and has published amended, updated and new Rulebook materials. There is a new Part of the rules on Insurers in Financial...
Lords urges Government to change stance on FTP
The “failure to prevent fraud” provisions in the Economic Crime and Corporate Transparency Bill continue through parliamentary “ping pong”. On 11 September, the Lords again rejected the...
FCA finalises fin prom gateway policy
FCA has published its final policy position on implementing the gateway for firms that wish to approve financial promotions. It has now set out its final approach on: how it will assess applicants at the gateway and the...
OFSI publishes frozen assets reporting requirements for 2023
Treasury has published a notice requiring firms to report any new, or changes in previously held, frozen assets, to OFSI by 10 November 2023.
FCA reminds firms of incoming crypto rules
FCA has set out its expectations in advance of the rules on advertising of crypto products coming into force on 8 October. The rules are specifically designed to make marketing clearer and more accurate and to ban...
SFO speaks on new powers
Michelle Crotty, Chief Capability Officer at the SFO, has spoken on its successes since Lisa Osofsky became its Director and looking ahead to Nick Ephgrave’s upcoming tenure. She also noted the increased powers...
Consumer Panel publishes review on personal data use
The Financial Services Consumer Panel has published a paper looking at whether firms’ use of personal data is leading to bias and detriment for consumers with protected characteristics. It concludes that most...
FCA publishes new resource on application refusals
FCA has published a new page on its website explaining its process for refusing applications, and what happens if firms either withdraw their applications or want to appeal a refusal decision.
Economic Crime and Corporate Transparency Bill back in Lords
As expected, when the Economic Crime and Corporate Transparency Bill was discussed in the Commons on 4 September, it disagreed with some of the Lords’ amendments, so the Bill has been returned to the Lords for...
Treasury makes fin prom approval permission exemptions
The FSMA (Exemptions from Financial Promotion General Requirement) Regulations 2023 take effect from 27 September, and permit authorised firms to approve promotions of unauthorised firms without holding the newly...
FCA speaks on financial crime controls
Sarah Pritchard has spoken on the importance of firms calibrating their financial crime fighting systems to the right level. She stressed the importance of firms understanding who their clients are, identifying the...
FCA publishes Russian sanctions controls results
FCA has published the key findings, and examples of good and poor practice, following its assessment of the sanctions systems and controls firms have in place specifically in relation to the increased sanctions...
FCA launches PEP review
FCA has published a paper setting out the issues it will consider as part of its review on the treatment of PEPs under s78 FSMA 2023. FCA notes that it does not have the power to change the law relating to the PEPs...
FCA consults on the future of the IDD
FCA is consulting on a proposal to transfer parts of the IDD that are currently in legislation into its rules, as part of the Future Regulatory Framework following Brexit. Treasury has announced its plan to repeal the...
FCA consults on MIPRU PII clarifications
FCA’s latest quarterly consultation paper includes a proposal to clarify a potential conflict between the requirements in MIPRU 3.2.1R that require a firm to take out and maintain continuous PII what must include...
FCA to analyse lenders’ fair value assessments
The FCA has announced it will analyse the fair value assessments provided to it by 9 banks and building societies. This follows the introduction of the Consumer Duty and the 14-point action plan published by FCA in July...
FCA announces Direct Line pricing review
Direct Line Group has agreed to carry out a review after it found it had charged some existing home and motor customers more for their renewal than would have been charged to new customers. The review will identify all...
OFSI uses disclosure power for first time
OFSI has used its disclosure enforcement power for the first time to highlight a breach of the Russia (Sanctions) EU Exit Regulations 2019. This power allows OFSI to publish notices of breaches where it has decided not...
JMLSG publishes crypto transfer guidance
JMLSG has published its final revisions to Section 22 (Cryptoasset providers and custodian wallet providers) in Part II of its AML/CTF guidance. The update includes a new Annex 1 on crypto transfers which relates to the...
FCA updates on wholesale data market study
The FCA has published an update report on its wholesale data market study. As a reminder, the FCA launched its market study in March 2023 to investigate competition problems in the markets for benchmarks, credit ratings...
FCA launches webpage on supporting customers with pension transfers
The FCA has published a new webpage which sets out information and guidance for firms on how to support vulnerable customers when providing pension transfer advice. Firms should be alert to potential indicators of...
FCA cancels unused permissions
The FCA has used its power to cancel consumer credit permissions which were not used for 2 years. Mr Roche was authorised by the FCA in January 2015 and held consumer credit permissions of: agreeing to carry on a...
FCA reminds firms to keep their details up to date
The FCA has updated its website to remind dual regulated firms that, from 1 December 2023, they must check, amend (if required) and confirm their firm details at least annually via Connect. From this date, firms that...
FCA launches webpage on the Wider Implications Framework
The FCA has published updated terms of reference for the Wider Implications Framework. The framework provides a structure for its members to collaborate on issues that could have a wide-reaching effect across the...
FCA updates on operation of the MiFID transparency regime
The FCA has published an updated version of its statements of policy on the operation of the MiFID transparency regime. The updates are to reflect amendments made to UK MiFIR by FSMA 2023, including the deletion of...
FCA updates on UK MiFIR obligations
The FCA has published a direction on the revocation of its transitional direction for the share trading obligation (STO) under UK MiFIR. The direction specifies that the STO was revoked on 29 August 2023 by the...
Parliament issues consumer financial services FAQs
The House of Commons Library has published a research briefing setting out a list of FAQs relating to banking services, mortgages, investments and credit scores.
Gibraltar regime rulemaking powers to take effect
Provisions of the Financial Services Act 2021 that allow the regulators to make laws and rule implementing the upcoming Gibraltar authorisation regime will take effect from 1 September 2023.
FCA issues customer guidance after broker enters administration
FCA has issued Q&A for customers after Verex Insurance Services, a firm which sold motor insurance products, entered administration alongside one of its ARs . The guidance explains to concerned customers that...
Ofgem fines Morgan Stanley over business Whatsapps
Ofgem has fined Morgan Stanley & Co International nearly £5.5m after wholesale energy traders made communications on their private mobile Whatsapp channels, which meant the firm did not record and keep records of...
Estonian bank business transfer scheme permitted
The court has sanctioned a business transfer scheme under section 111 FSMA for Estonian bank AS LHV Pank (LHV) to transfer the deposit-taking, banking and regulated payment services business currently being carried on...
BoE publishes policy statement on wholesale cash distribution supervision
BoE has published a statement of policy and the responses to a consultation on its supervisory approach to market oversight for wholesale cash distribution (WCD) under its new powers under Part 5A FSMA 2023. BoE’s...
Treasury and FCA confirm approach on access to cash rules
Treasury has published a cash access policy statement setting out the Government’s approach to access to cash deposit and withdrawal services for UK current accounts. The aim of the statement is to inform...
FCA sets out expectations for travel rule compliance
FCA has set out its expectations for UK cryptoasset businesses subject to the so-called ‘travel rule’, which will require them to collect, verify and share information about cryptoasset transfers from 1...
CMA survey shows best results for challenger banks
CMA has published the 11th version of its banking customer satisfaction survey. The surveys rank providers of personal and small business current accounts against a number of questions, including how likely they would...
FCA publishes interest-only mortgage research
FCA has published a research note analysing its data on the population of regulated interest-only mortgages that existed as at 31 December 2022. The analysis found that: Interest-only mortgages currently make up 9% of...
PSR consults on APP fraud reimbursement limit and consumer standard of caution
PSR has launched two consultations relating to the implementation of its new APP fraud reimbursement requirements, which mean that the vast majority of victims will be reimbursed within 5 days of the fraud being...
FCA invites PEPs to share their experiences with financial services firms
FCA is currently reviewing how financial services firms have applied the PEPs regime and whether changes to its guidance is required. It has now written a letter to PEPs directly inviting them to share their...
Ombudsman News highlights current hot topics
The latest edition of FOS’ Ombudsman News highlights: the Consumer Duty: now the Duty is in force, FOS will be speaking to firms to assess the complaints firms are receiving; FOS’ updated guidance for firms...
FCA and COLC to hold APP data launch briefing
FCA and the City of London Corporation will hold an event on 27 September to launch FCA’s APP fraud synthetic dataset. At the event, FCA will introduce the dataset and share details of the engagement behind it...
UK Finance updates FTR guidance
UK Finance has published a “how to” interpretative guide to the Funds Transfer Regulation. The FTR was one of the pieces of legislation onshored after Brexit, and UK Finance had previously produced guidance...
FCA warns consumers on loan fee fraud
FCA has issued a consumer warning to help customers avoid loan fee fraud as they look to cover the costs of summer spending. This type of fraud, which involves customers paying for a loan they never receive, typically...
FCA asks banks for account closure information
FCA has followed up its announcement of its upcoming investigation of account closures with a request to the largest banks, building societies and payment firms to provide it, by 25 August, with information on: the...
FCA publishes authorisations metrics Q1 2023/24
FCA has published its authorisations metrics for the quarter ended June 2023. FCA currently has: 2 red categories, relating to authorisations of EMIs and PIs 6 amber categories, relating to SMCR and AR related approved...
Treasury responds on payments systems regulation
HM Treasury has published a response to its 2022 call for evidence and consultation on payments regulation and the systemic perimeter. The Government confirms it will progress reforms to BoE and PSR’s respective...
FCA publishes letter on freedom of expression and provision of banking services
FCA has published a letter to HM Treasury on freedom of expression and the provision of banking services, in response to increased public concern about payment accounts being closed without fair justification. The...
FCA publishes Q2 fin proms data
FCA has published its financial promotions data for Q2 2023, which showed that 1507 promotions were amended or withdrawn as a result of FCA intervention. As with the data for Q1, the majority of cases related to retail...
FOS blogs on consumer card protections
FOS has published a blog on how businesses can help consumers who have problems with goods and services. It has noticed that consumers aren’t always aware of the protections they have when paying for goods or...
FCA clarifies Advice Guidance Boundary Review
FCA has issued an update on how it and the Treasury will carry out their joint review of the boundary between advice and guidance. Industry feedback has made it clear that consumer needs for advice are diverse, entail...
HM Treasury publishes response to consultation on Introducing an Insurer Resolution Regime
HM Treasury has published its response to the feedback received from its January 2023 consultation paper titled “Introducing an Insurer Resolution Regime”. The consultation sought feedback on proposals to...
Government consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
BoE and FCA to move forward on data transformation
BoE and FCA have considered the recommendations of the Data Standards Committee on how to transform data collection, and have published their response. The regulators will now look to take forward all the...
JMLSG finalises change to impersonation fraud mitigation
JMLSG has submitted for ministerial approval a change to Paragraph 5.3.89 in Part I of its guidance. The change relates to additional measures firms should consider taking when identity is verified electronically, copy...
PRA updates approach guides
PRA has published updated versions of its “approach” documents setting out how it supervises the banking and insurance sectors, updated to include changes made by the FSMA 2023. The new documents replace the...
FOS updates on car finance commission complaints
FOS has published a blog on complaints about car finance commission. It is seeing an increase in complaints about the fairness of commission arrangements when customers took out a car finance agreement – often...
Consumer Duty takes effect
The Consumer Duty has taken effect for all on-sale products. FCA has reminded consumers of the protections it gives them.
Read our summary of what FCA is expecting from firms.
FCA publishes cash savings action plan
FCA has published a 14 point action plan for banks and building societies. The plan aims to ensure: that firms pass on interest rate rises to savers appropriately; good and effective communication with customers; and...
Court holds care home investment schemes to be CIS and director personally liable
The judgment on several preliminary issues in the case brought by FCA against Robin Forster, Fortem Global Limited and Richard Tasker has been published. The trial considered only issues arising out of Mr...
HMRC updates MLR registration guidance
HMRC has updated its guidance for firms needing to make changes to their money laundering registrations or deregistering their business. The guidance summarises what changes should be reported to HMRC and notes that any...
JMLSG consults on travel rule
JMLSG is consulting on changes to its guidance in respect of the travel rule for cryptoasset transfers. The changes will add a new Annex 1 to Chapter 22 in Part 2 and will reflect the requirements in Part 7A of the MLRs...
Economic Affairs Committee questions BoE Governor on additional responsibilities under FSMA 2023
The Economic Affairs Committee has published a letter to Andrew Bailey, Governor of BoE, on its new responsibilities under FSMA 2023. The Committee’s ongoing inquiry into the operational independence of BoE has...
FCA confirms further temporary transaction reporting measures
FCA is implementing further temporary measures for the reporting of certain fields in MiFIR transaction reports. In January 2022, temporary measures were put in place for the reporting of the short selling indicator...
FSB publishes final reflections on LIBOR transition
FSB has published its thoughts on the final stage of the LIBOR transition, and the importance of markets remaining anchored in robust benchmarks in the post-transition landscape. Choice of reference rates FSB encouraged...
PRA consults on updating UKTS identification of global systemically important institutions
In line with the BCBS framework, PRA is consulting on updates to the UKTS methodology for identifying and setting a capital buffer for global systemically important institutions. The changes to the UKTS would include:...
FCA makes new rules
FCA’s latest Handbook Notice confirms: changes to ICOBS to reduce the impact of financial difficulties by enabling customers to maintain an appropriate level of insurance; amendments to FCA’s Glossary and...
Regulators publish revised Complaints Scheme
Following a joint consultation between FCA, PRA and BoE in July 2020, the regulators have set out final changes to be made to the Complaints Scheme. The revised Complaints Scheme and policy statement was initially due...
PRA consults on rules replacing retained Securitisation Regulation
PRA is consulting on proposed rules to replace retained EU law requirements on PRA-authorised persons contained in provisions of the Securitisation Regulation. Following the enactment of FSMA 2023, Treasury plans that...
FSB publishes statement on continuity of access to FMI services for firms in resolution
Following its October 2022 survey of banks, FMI intermediaries and FMIs about their experiences with its resolution planning framework, FSB has published a statement on continuity of access to FMI services for firms in...
FOS publishes Independent Assessor’s annual report for 2022/23
The Independent Assessor’s report confirms that during the financial year 2022/23, FOS resolved 209,491 cases, with 1.8% of those customers lodging complaints about the service. Complaints reduced by 1.9% since...
ICO writes to banks on customer information
Following the Nigel Farage account issue, the ICO has reminded banks of their duty of confidentiality. It noted that, while this case is “out of the ordinary” proper processes and procedures must still be...
Government plans online ads crackdown
The Government has published its plans to crack down on harmful online advertising. One of its focuses will be fraudulent celebrity endorsements for scams. It will also be prioritising illegal paid-for advertising...
OFSI updates sanctions guidance
The latest update to OFSI’s guidance on complying with the financial sanctions regime focuses on updates to the licensing process.
PRA confirms changes to Credit Union regulation
PRA has confirmed changes to the Credit Unions part of its Rulebook and a new supervisory statement. The changes follow consultation and relate to: allowing credit unions greater flexibility when investing surplus...
Financial Lives conclusions make uncomfortable reading
FCA has published the results of its latest Financial Lives survey, which it says serve to highlight the importance of the Consumer Duty. During the year to May 2022: less than half of UK adults had confidence in the UK...
PRA fines Credit Suisse record £87m for risk management and governance failures
PRA has imposed a record fine of £87m on Credit Suisse for serious risk management and governance failures between 1 January 2020 and 31 March 2021 in connection with its exposures to Archegos Capital Management. This...
Commons discusses BBRS failings and alternative solutions
In a discussion on the BBRS, the House of Commons has outlined how the service failed to restore trust between SMEs and their lenders, or resolve a meaningful number of complaints. MPs also set out some alternative...
Market Watch considers transaction reporting issues
FCA’s latest edition of Market Watch explores transaction reporting issues, and highlights its concerns with firms not paying sufficient attention to its warnings on the importance of reporting transactions in a...
FCA publishes Annual Report and Accounts 2022/23
The FCA has published its Annual Report and Accounts 2022/23. The Report sets out the FCA’s progress and key achievements during the first year of implementing their three year strategy. The report highlights what...
Government introduces rules on payment account closures and freedom of expression
Following its call for evidence on the PSRs, the Government has set out proposed reforms to enhance requirements relating to contract termination for payment accounts, as per the new powers conferred by FSMA 2023. Under...
BoE speaks on RTGS renewal programme
Victoria Cleland, Executive Director for Banking, Payments and Innovation at BoE, has delivered a speech at the UK Finance Summer Network Event on the benefits of BoE’s multi-year programme to renew the RTGS...