The FCA has updated its perimeter report setting out the scope of what it does and does not regulate. The report describes specific issues the FCA perceives around its regulatory perimeter, and the action it is taking...
Category - Topics
FIN. TeamCME publishes annual report on SME banking behavioural undertakings compliance
CMA has published its annual report on compliance with the SME banking behavioural undertakings 2002, covering the period from 1 July 2021 to 30 June 2022. The report analyses how well 8 UK banks have complied with...
Laura WilesFCA to launch Digital Sandbox permanently
Following successful pilots, FCA’s Digital Sandbox will be made permanently available on 1 August 2023. Until now, the platform has only been available on a temporary basis to institutions participating in FCA...
Government rejects Treasury Committee’s suggestion to regulate retail crypto trading as gambling
The Treasury Committee has published the Government’s response to its report on Regulating Crypto. The report had concluded that consumer trading in unbacked cryptocurrencies more closely resembles gambling than a...
Quincecare Duty defined in Philipp v Barclays
As we reported in last week’s edition of FIN in Philipp v Barclays Bank UK PLC [2023] UK SC25, the Supreme Court allowed the Barclays appeal against the Court of Appeal decision that had, in essence, widened the...
UK Sustainability Disclosure TAC issues call for evidence
The Financial Reporting Council (FRC), acting as The Secretariat to the UK Sustainability Disclosure TAC, has issued a call for evidence seeking input to support the potential endorsement of the International Financial...
FCA publishes letter on establishing CBA Panel
In a letter to the Treasury Committee, FCA has set out its work on establishing the new CBA panel and publishing a statement of policy on its approach to CBA, as required by FSMA 2023. In June, the Committee sent a...
FCA prosecutes individual over unauthorised investment scheme
FCA has started criminal proceedings against Daniel Pugh for one fraud offence and three offences of breaching FSMA. FCA alleges that Mr Pugh defrauded investors out of approximately £1.3m via an unauthorised CIS...
PRA consults on proportionality in Pillar 3 remuneration disclosures
PRA is consulting on proposals to enhance proportionality of Pillar 3 remuneration disclosure requirements, by reducing the number of disclosures required for many smaller banks and building societies. This consultation...
FCA and ICO confirm expectations for communications to savings customers
FCA and ICO have published a joint letter to UK Finance and the Building Societies Association, confirming that savings providers can inform their customers of the best interest rates available to them, even where...
Banks and FCA respond to Treasury on further savings rates queries
Early in July, the Treasury Committee progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. The banks and FCA...
PRA releases statement on the recalculation of TMTP
The PRA has released its statement to insurance firms inviting them to recalculate the Transitional Measure on Technical Provisions (TMTP). In accordance with Supervisory Statement (SS) 6/16 ‘Maintenance of the...
Regulatory Initiatives Forum provides update following FSMA 2023 Royal Assent
The co-chairs of the Financial Services Regulatory Initiatives Forum have published an update following the Royal Assent of FSMA 2023. Given its significance for the financial services regulatory landscape, the Forum...
FSB publishes global regulatory framework for crypto-asset activities
FSB has published its finalised regulatory framework for the supervision of crypto-asset activities to promote the comprehensiveness and international consistency of regulatory and supervisory approaches globally. FSB...
Treasury Committee launches inquiry into barriers faced by women in finance
The Treasury Committee has launched an inquiry into the barriers faced by women in financial services – Sexism in the City. The Committee asks for evidence on the follow topics: Progress made in removing the...
FCA consults on how financial promotions requirements apply to social media
FCA is consulting on guidance on how its financial promotion requirements apply to promotions made on social media. Financial promotion rules are designed to be technology-neutral and apply to all channels used to...
FSB updates roadmap for addressing climate-related financial risks
In July 2021, FSB published a comprehensive roadmap to address climate-related financial risks. It has now delivered a progress report on the roadmap as required by the G20. Physical risks and a disorderly transition to...
FCA fines Bastion Capital London for financial crime control failings
FCA has fined Bastion Capital London Limited (in liquidation) £2,452,700 for serious financial crime control failings in relation to cum-ex trading. The firm had failed to manage the risk of being used to facilitate...
Financial Regulator Complaints Commissioner publishes annual report
The Financial Regulator Complaints Commissioner has published its annual report for 2022/23 reviewing how the UK financial services regulators consider complaints. This year, 421 cases were dealt with by the...
IAIS publishes mid-year update on global insurance market
The International Association of Insurance Supervisors (IAIS) has published its Global Insurance Market Report: Mid Year Update, which provides a mid-year preview of its 2023 Global Monitoring Exercise (GME) results...
FCA launches new webpage on fee rate movement 2023/24
The FCA has published its new webpage on its fee rate movement for 2023/24. The new webpage contains a table which explains the changes in fee rates since last year. The FCA notes that its AFR has increased in 2023/24...
Supreme Court rules in favour of Barclays in APP fraud case
The Supreme Court has handed down its decision in the case of Philipp v Barclays Bank UK PLC [2023] UKSC 25. Barclays had appealed a decision from the Court of Appeal that it owed the customer a contractual duty not to...
Treasury calls for input on future of payments review
Treasury has issued a call for input as part of its Future of Payments Review 2023, which will report on the steps required to deliver world leading retail payments in the UK and boost UK fintech competitiveness. The...
FPC publishes Financial Stability Report
BoE has published the July 2023 Financial Stability Report, setting out FPC’s view on the stability of the UK financial system and what it is doing to remove or reduce any risks to it. FPC notes that the current...
FPC outlines approach to setting countercyclical capital buffer
FPC has published its approach to setting the countercyclical capital buffer (CCyB). Its approach is based on six core principles: Ensuring that the UK banking system is better able to absorb shocks without an...
FCA reviews impact of investment pathways on consumer outcomes
The FCA has published its focused post-implementation review on investment pathways. The review focuses on rationale and take-up, value, communications and asset allocation for investment pathways, and how these could...
BoE 2022/23 Stress Test results show resilience in UK banks
BoE has published the results of its 2022/23 stress test of the UK banking system. The test scenario was more severe than the 2007-08 financial crisis and substantially more severe than the current macroeconomic outlook...
FCA speaks on regulatory approach to Big Tech and AI
Nikhil Rathi, Chief Executive at FCA, has delivered a speech at The Economist on FCA’s emerging regulatory approach to Big Tech and AI. It notes that with the “right guardrails in place”, AI can offer...
FCA launches website on reporting AR data
The FCA has published a new webpage containing information for principal firms on how to report Appointed Representatives data. The webpage, which will be kept up to date, contains information for firms on: why the FCA...
Treasury publishes CCA reform plans
Treasury has published the outcome of its consultation on reforming the Consumer Credit Act 1974 (CCA). The Government’s intention is that reform will facilitate innovation in the credit sector and increase...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
Treasury publishes new PARs customer information requirements
Treasury has published the outcome of its consultation on customer information requirements in the Payment Accounts Regulations (PARs) 2015. It confirms the government’s intention to revoke Part 2 and Schedules 1...
FCA launches new webpage on regulatory hosting services
The FCA has published a new webpage containing information for principal firms operating as regulatory hosts. Such firms usually carry out minimal or no regulated activity. Rather, it oversees the use of its permissions...
Treasury consults on first financial market infrastructure sandbox
Treasury is consulting on the first financial market infrastructure sandbox delivered under the powers granted to it as part of FSMA 2023. The Digital Securities Sandbox (DSS) will enable digital securities to be tested...
Treasury revokes PRIIPs and outlines new UK retail disclosure regime
Treasury has published the outcome of its consultation on revoking the PRIIPs Regulation and introducing a more suitable alternative. The PRIIPs Regulation had been widely criticised due to the misleading information it...
Treasury publishes investment research review
In March 2023, Treasury launched its investment research review to consider levels of financial services investment research in the UK, and its contribution to UK capital markets competitiveness. The review was part of...
LSB publishes SME green finance report
LSB has published a report highlighting challenges in the SME green finance market and exploring how banks and lenders can support their customers to become more sustainable. The report concludes that while demand for...
PSR consults on APP fraud reimbursement directions
Following its June policy statement on its new APP fraud reimbursement requirement, PSR is consulting on two draft instruments set to implement the rules. The first specific requirement looks at the rule changes needed...
FSB holds Frankfurt plenary
The FSB Plenary met in Frankfurt to discuss preliminary lessons learned from the recent banking sector turmoil and the outlook for global financial stability. The Plenary also agreed its deliverables to the July G20...
BoE and FCA deliver on Transforming Data Collection phase one commitments
BoE and FCA have published an update on their joint Transforming Data Collection (TDC) programme, concerning: Delivery of their phase one recommendations; Progress of the phase two use cases; The Data Standards Review;...
BCBS consults on core principles for banking supervision
BCBS is consulting on revisions to its Core principles for effective banking supervision (Core Principles). In its April 2022 review, BCBS sought to reflect supervisory and regulatory developments, structural changes in...
FCA publishes findings from liquidity management frameworks review
FCA has published findings from its multi-firm review of liquidity management frameworks. It sought to understand what improvements have been made since its November 2019 letter to AFMs detailing good practice in...
FCA bans pensions adviser
FCA has banned Paul Steel of Estate Matters Financial following its finding that he provided unsuitable advice to customers to transfer out of DB pension schemes, including the BSPS scheme. FCA has also brought High...
Emma RadmoreEconomic Crime Bill goes back to Commons
The House of Lords completed its scrutiny of the Economic Crime and Corporate Transparency Bill on 4 July. The Bill now returns to the Commons for consideration of the Lords’ amendments. At third reading...
IRSG consults on draft ESG Provider code
The ESG Data and Ratings Code of Conduct Working Group and the International Regulatory Strategy Group, together with the International Capital Market Association, is consulting on a draft voluntary Code of Conduct for...
FOS warns on credit hire risks
FOS is warning that many consumers do not understand the risks of credit hire, which could leave them facing large bills. Credit hire is used as an alternative to claiming on motor insurance, and involves claims or...
FCA plans markets measures to bolster competitiveness
FCA has announced proposals to set up a consolidated tape which can supply clear and low-cost trading data. It plans to start with a CT for bonds, then equities, and will run a competitive tender process to appoint the...
FCA responds on Odey supervision
The Treasury Committee has published FCA’s response to its enquiry on the supervision of Odey Asset Management, following the media allegations of highly inappropriate behaviour by Cripin Odey (which he has...
Ombudsman News updates FOS initiatives
The latest edition of Ombudsman News highlights: what FOS is doing to prepare for the Consumer Duty; the annual complaints data from 2022/3; its items on hybrid scams and escape of water in unoccupied properties...
FCA warns cryptoasset firms of financial promotion regime expansion
FCA has published a letter to cryptoasset firms marketing to UK consumers on complying with the expanded financial promotions regime set to apply from 8 October 2023. The letter comes after the FSM Bill received Royal...
FCA sets fees and levies for 2023/24
FCA has published its regulatory fee and levy rates for 2023/24. The regulator is freezing minimum fees, flat rate fees and application fees in an effort to encourage competition and support firms facing inflationary...
FCA highlights good and poor practice in general insurance market for customers in financial difficulty
FCA has published examples of good and poor practice arising out of its review of how the general insurance market supports customers in financial difficulty and handles claims. For customers whose policies had been...
Call for evidence on Treasury’s SME finance review
The Treasury Committee has issued a call for evidence as part of its inquiry into the financing of SMEs. On industry issues, the Committee asks: What are the key challenges SMEs face when seeking finance? Through which...
Treasury Committee probes further on savings rates
The Treasury Committee has further progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. In...
US dollar LIBOR panel ends
The US dollar LIBOR panel has ended, meaning that the overnight and 12-month US dollar LIBOR settings have permanently ceased. All new use of synthetic US dollar LIBOR is now prohibited under the Benchmarks Regulation...
FCA publishes insurance guidance on supporting customers in financial difficulty
Following its January consultation, FCA has published finalised insurance guidance on supporting customers in financial difficulty. In November 2020, FCA published guidance for insurance and premium finance firms to...
PRA publishes second policy statement on depositor protection rules
Following its September 2022 consultation, PRA has published a second policy statement on updates to its depositor protection (DP) rules. The first policy statement, published 31 March 2023, concerned changes to the so...
PSR outlines changes to card scheme and processing fees
PSR has published a third working paper on its market review of card schemes and processing fees. It previously published papers on competitive constraints and approach to profitability analysis. The latest paper...
FCA implements Mortgage Charter rules
FCA has published a policy statement setting out changes to the MCOB sourcebook to support the implementation of the Government’s Mortgage Charter. The rule changes take effect immediately from 30 June, and enable...
PRA consults on rule review
PRA is consulting on its proposed approach to reviewing its Rulebook, as required by the FSM Act. Rule review is a well-established part of PRA’s existing approach to policy making, and consists of four key steps...
Government consults on AML supervision reform
Treasury is consulting on reform to the AML and CTF supervisory system, in line with commitments in the Economic Crime Plan 2023-6. Treasury’s 2022 review of the UK’s AML/CTF regime identified that there had...
PRA sets fees and levies for 2023/24
Following its April consultation, PRA has published a policy statement confirming the fees and levies payable for the 2023/24 fee year. Respondents welcomed the reduction year-on-year to the Annual Funding Requirement...
PRA consults on adapting Solvency II to UK market
PRA is consulting on its review of Solvency II to adapt the framework to the UK insurance market. The significant reforms proposed build on the Government’s response to its own Solvency II review consultation, and...
Regulators call on firms to support customers amid cost of living crisis
FCA, Ofgem, Ofcom and Ofwat have published a joint Dear CEO letter calling on firms to support customers struggling with the increased cost of living and keep prices fair. The letter notes FCA’s Financial Lives...
FCA outlines concerns with sustainability-linked loans market
FCA has published a letter to heads of ESG and sustainable finance, setting out its review of the sustainability-linked loans (SLL) market. Interest rates in SLLs are linked to meeting certain agreed sustainability...
FCA widens access to LTAF
FCA has published its final rules on giving a wider group of retail investors and defined contribution pension schemes access to Long Term Asset Funds (LTAF). The rules recategorise a unit in an LTAF from a Non-Mass...
Government concede on FTP.. maybe
A new version of the Economic Crime and Corporate Transparency Bill, published at the end of the Lords Report stage, contains some good news for those who opposed the narrow scoping of the proposed “failure to...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
Government and regulators agree consumer support action plan
Chancellor Jeremy Hunt has chaired a roundtable with CEOs from CMA, FCA, Ofcom, Ofgem and Ofwat as part of the Government’s plan to halve inflation this year and return to the 2% target. Treasury expects that the...
FCA speaks on innovation in financial services
Sheldon Mills, Executive Director of Consumers and Competition at FCA, has delivered a speech at the CityUK Annual Conference on how innovation and regulation in financial services can drive the UK’s economic...
FOS warns of “hybrid” scam increase
FOS has noted that the number of complaints it receives about scams generally is increasing – with a 17% increase in APP fraud complaints, but also a higher proportion of “complex” scam complaints, for...
FCA updates on Consumer Duty – one month to go!
FCA is pleased with the preparations many firms have made for the Consumer Duty, and has highlighted 10 questions it thinks firms could be usefully asking themselves. The key questions include: whether a firm is...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
Tribunal overturns FCA redress scheme imposed on Bluecrest Capital Management
The Upper Tribunal (Tax and Chancery Chamber) (the “Tribunal“) has upheld an application by Bluecrest Capital Management (UK) LLP (“Bluecrest“), an investment manager, to summarily strike out a...
Stephen WilsonTreasury approves JMLSG guidance changes
Treasury has approved 3 recent sets of changes to JMLSG guidance – submitted in August 2022, November 2022 and March 2023.
PRA publishes authorisations performance report
PRA’s report on its authorisations performance during Q1 2023/24 shows delays in applications for new authorisations – although these are based only 5 cases during the period, PRA achieved its standard in 4...
UK and EU sign MoU
Jeremy Hunt has made his first visit to Brussels as Chancellor to sign the EU/UK financial services MoU. The MoU sets out arrangements for information sharing, exchanges of views and enhanced co-operation on financial...
Treasury publishes mortgage charter
Treasury has published a policy paper on the Mortgage Charter, which sets out commitments from the principal UK mortgage lenders to their residential mortgage borrowers. The new commitments are designed to help...
Commons reconsiders FSM Bill
On 26 June the House of Commons considered the version of the FSM Bill returned to it from the House of Lords. It published its views on aspects of the Bill where it disagrees with Lords changes. While there was...
FOS comments on Nationwide Fairer Share Payment scheme
FOS says it’s received requests to investigate complaints about the Nationwide’s Fairer Share Payment scheme which awards £100 to certain members who meet published eligibility criteria. FOS says that it is...
FCA welcomes ISSB standard launch
FCA has welcomed the launch of the International Sustainability Standards Board‘s first set of sustainability-related reporting standards, which have been introduced to meet market demand for complete, consistent...
FCA speaks on cultural evolution
Emily Shepperd of FCA spoke on how culture needs to change to meet expectations. She focussed on how generational changes can fundamentally change culture. She said it is now critical to find a common path, for leaders...
JROC publishes API pricing principles
The Joint Regulatory Oversight Committee for Open Banking has published a set of principles that banks and registered third parties should follow when agreeing a premium API commercial model. Premium APIs will allow...
Treasury updates AML high risk third countries
Treasury has published an advisory on high risk third countries for money laundering and terrorist financing purposes following FATF’s latest meeting. The list of jurisdictions, which mirrors the FATF list, will...
FCA publishes BSPS adviser fines and information page
FCA has updated its website to include details of its approach to investigations into firms and individuals who provided unsuitable advice in the context of transferring out of the British Steel pension scheme –...
Court considers meaning of “investment property loan”
A court has considered whether a series of loans constituted “investment property loans” under Article 61A(6) RAO, which would exempt them from being regulated mortgage contracts. To be an investment...
PRA publishes insights from thematic review addressing insurance claims inflation
The PRA has published its follow up letter to Chief Actuaries of general insurance firms and Lloyd’s Managing Agents regulated by the PRA. The letter provides insights from the PRA’s thematic review of...
Government agrees support measures for mortgage holders
The Government has met with the UK’s principal mortgage lenders and FCA to agree a new mortgage charter providing support for residential mortgage holders. Recent market indicators show that mortgage arrears and...
FCA and SFO publish MoU on enforcement co-operation
FCA and SFO have published their MoU setting out their intentions to cooperate in relation to new investigations, intelligence developments, investigations and prosecutions. The ‘Principles of Co-operation’...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
Government publishes draft Solvency II reform regulations
In anticipation of the passing of the FSM Bill, Treasury has published drafts of two Statutory Instruments designed to make the current Solvency II regime more tailored, clearer and simpler. The Government has stated...
Read our deep dive into dark patterns guide
We have published our deep dive into dark patterns, covering: an introduction to what dark patterns are and how they work; a guide to navigation of the regulation of dark patterns in the UK, EU and US; and examples of...
LSB speaks on digital evolution and inclusivity
Anna Roughley of the LSB has spoken on the evolution of digital and technical services in the context of providing a consumer-focussed outcome for lending. First she noted that, while digital banking is ideal for many...
BoE updates on CHAPS APP plans
The Deputy Governor of BoE has written to the Treasury sub-committee on Financial Regulation to update on progress on protection from APP fraud within the CHAPS system. The letter confirms the BoE’s intention to...
FCA consults on vote reporting
FCA’s “Vote Reporting Group” is consulting on a voluntary template that asset managers can use to communicate with asset owner clients on their voting activity. It asks for comment by 21 September.
BoE speaks on enforcement approach
Oliver Dearie has spoken on the rationale behind the proposed changes to the way in which BoE is looking to change its approach to enforcement. He said the proposals reflect lessons learned over the past decade and...
Lords passes FSM Bill
The FSM Bill has had its third reading in the Lords, and has been passed and returned to the Commons as amended in the Lords. The Commons now needs to consider the Lords’ amendments, and, if all is agreed, the...
BoE launches system-wide exploratory scenario
BoE has launched its first system-wide exploratory scenario exercise. The exercise will include banks, insurers, CCPs and a variety of funds and will look to see how all these market players behave in stressed market...
PRA letter to CROs provides feedback on funded reinsurance arrangements
The PRA has published a Letter from Charlotte Gerken, Executive Director, Insurance Supervision, to Chief Risk Officers (CROs) of life insurance firms sharing insights and feedback on the PRA’s preliminary thematic...