LSB is consulting on its review of the Standards of Lending Practice for business customers. The consultation contains questions relating to: The impact of economic and regulatory developments Protections for customers...
Category - Topics
Laura WilesBoE speech: building blocks of resilience
Sarah Breeden, BoE Executive Director of Financial Stability, Strategy and Risk, has delivered a speech on resilience within Liability Driven Investment (LDI) funds at Westminster Business Forum policy conference. The...
Government adds identification doctrine reform to Economic Crime Bill
The Government has added a new proposal to the Economic Crime and Corporate Transparency Bill which will address the long-overdue reform of the identification doctrine. Following significant criticism of many aspects of...
Emma RadmoreCFD customer loses “appropriateness” case against broker
In the case of Robert Day v Forex Capital Markets Limited, Mr Day had signed up as a customer with FXCM effectively to place spread bets on US oil futures. Over a short period he lost significant sums and argued that...
Tribunal gives preliminary ruling on Havilland/Final Notice reference
The Tribunal has published its decision on the preliminary issue relating to the Bank Havilland action, under which David Rowland referred all notices to the Tribunal on the basis they contained statements prejudicial...
EBA not pleased with ML/TF risk management in payments firms
EBA is concerned that, despite the high inherent risk of money laundering and terrorist finance in the payments sector, PIs generally do not manage their risks adequately. This is exacerbated by supervisors often not...
FSM Bill: Lords Report stage day 3
Day 3 of the debate on the FSM Bill at Lords Report stage included: a debate on forest risk commodities, which was approved on a vote; a proposal for a number of amendments relating to liability of PSPs for fraudulent...
FOS publishes annual complaint data stats
FOS has published the annual complaints data for the 2022/23 financial year and commented on the common themes. Of the most complained about products current accounts had a 40% uphold rate; credit cards 34%...
Tribunal disagrees with FCA on JBI individual bans
The Upper Tribunal has published its decision in relation to FCA’s decision to ban 3 individuals working for Julius Baer International for lack of integrity, following its finding that JBI had breached its rules...
FCA starts criminal proceedings for unauthorised SRB schemes
FCA has started criminal proceedings against 3 individuals, 2 of whom worked together, in relation to the offering of loans and sale and rent back agreements without being authorised to do so. It has also charged 2 of...
HMRC publishes list of non-MLR compliant businesses
HMRC has published an updated list of businesses that are not compliant with the MLRs. All but one were fines on mainly estate agencies and accountancy service providers that had failed to register, but one, a fine of...
FSMB Lords Report stage day 2
Day 2 of the Report stage for the FSM Bill took place on 8 June. In the first session, the Lords debated clauses including those on: reporting requirements under the competitiveness and growth objective, a Government...
‘Scale challenger’ banks respond to Treasury Committee on savings rates
The Treasury Committee last month expanded its campaign for banks to increase savings rates offered to loyal customers, questioning why easy access savings rates are much lower than the current BoE base rate. The...
FMSB reviews “3 Lines” risk management model
FMSB has published its Spotlight Review and Risk Register on the “3 Lines” Model. Previously known as the “3 Lines of Defence”, the model envisages the 1st line of risk management frameworks...
FCA publishes crypto promotion final rules
FCA has published a policy statement on financial promotion rules for cryptoassets following its January 2022 consultation. The consultation proposed to clarify cryptoassets as “Restricted Mass Market...
Lords complete first day of FSM Bill Report stage
During the first day of Report stage in the House of Lords on the FSMB, the sessions debated key matters including: amendments in relation to the revocation of retained EU law to require meaningful Parliamentary...
Treasury makes crypto FPO amendments
The FSMA (Financial Promotion)(Amendment) Order 2023 has been made and takes effect on 7 October (but on 8 June in respect of FCA powers to make rules and guidance). The changes reflect changes to the exemptions to the...
BBRS publishes 2022 Annual Report
The 2022 Annual Report of the BBRS highlights that the scheme did grow in its second year but case volumes were still lower than anticipated. However, the Board is satisfied that it did all it could to find cases and is...
PSR confirms new APP scam reimbursement rules
PSR has confirmed new rules following its proposals to bring in measures to clarify how mandatory reimbursement for APP scams will work in practice. It says the requirements will prompt a “step change” in...
JROC sets out open banking programme
The Joint Regulatory Oversight Committee has published its programme of work to take forward recommendations for the next phase of open banking. Its proposals include creating 2 regulator-led working groups to develop...
NCA publishes updated SARs guidance
NCA has updated its guidance on submitting better quality SARs. As a reminder, the guidance: explains how to make online SARs and the advantages of SAR online; notes when reports should be made to other agencies;...
FSMB Report stage in Lords to start on 6 June
The Report stage of the FSM Bill is to start in the Lords on 6 June. As previously reported, 3 days of sittings have been scheduled so far. On the first day, amendments to be debated include those on protecting the...
FCA consults on clarifications to high-risk investment retail ban
FCA’s latest quarterly consultation makes corrections and clarifications to various rules, and, also consults on clarifying the scope of the ban on offering retail clients incentives to invest in high risk...
FCA takes action against 3 more firms for BSPS settlement offers
FCA has taken action against Alpha Financial Services, QED Financial Associates and Harvest Associates, all of whom had made unsolicited offers of between £50 and £300 to over 90% of their clients, who had not yet...
FOS highlights Morses Club scheme of arrangement
FOS has updated its website to reflect the court’s approval for a scheme of arrangement between Morses Club and its creditors. Morses Club was the UK’s largest doorstep lender, which had increasingly faced...
FCA bans debt packager referral fees
FCA has made its final rules banning debt packager firms from operating a business model that incentivises them to recommend options that make them more money rather than those that are in their customer’s best...
FCA publishes information on APRC calculations
FCA has published information on its website relating to the calculation of the Annual Percentage Rate of Charge (APRC) which lenders use for disclosing associated costs of a mortgage contract to borrowers. The figure...
FCA urges “do the right thing”
Therese Chambers has spoken on the importance of people in the financial services sector doing the right thing on a day to day basis, and how well run firms will achieve better outcomes for their clients. She noted some...
FOS blogs on escape of water claims
A blog from FOS looks at the increase it has seen in queries from insurers about “escape of water” claims in unoccupied properties. FOS notes that key points to check are: how the policy describes...
API enters Special Administration
FCA has announced that Monneo Ltd, an authorised payments institution, has entered special administration under the Payment and Electronic Money Institution Insolvency Regulations 2021.
FCA updates on USD LIBOR
FCA has reminded firms that the US Dollar LIBOR panel ends on 30 June. It is warning market participants to be aware that the overnight and 12-month settings will cease after final publication on 30 June. It has...
FCA updates on changes for credit unions
FCA has published a new website page on the changes the FSM Bill proposes for credit unions. It highlights to credit unions that, if the changes come into law, any firm wanting to take advantage of them will need to...
Should you have a chief AI officer?
Read our article about what is a Chief AI officer, and whether you should have one.
Legal considerations for tech outsourcing: LexisNexis Webinar
LexisNexis subscribers can listen to a webinar presented by WBD’s Alastair Mitton, with Tom Porter of Natura&Co, on trends and challenges in tech outsourcing.
FCA updates information on WealthTek administration
FCA has updated its website with details of the progress of the investigations into WealthTek LLP and its principal partner, John Dance. FCA continues its regulatory and criminal investigation into both, including into...
JMLSG consults on discrepancy reporting changes
JMLSG is consulting on changes to Part I of its Guidance to: take account of amendments to the law relating to discrepancy reporting: the changes include specifying information firms should obtain and sets out a risk...
FCA publishes access to cash data
The FCA has published its data on geographical access to cash coverage in the UK for Q1 2022 and Q2 2022. The FCA and Payment Systems Regulator (PSR) gather and update data on access to cash on a quarterly basis. The...
FIN. TeamFSCS confirms latest 2023/24 levy forecast of £270m
The FSCS has published its latest Outlook update, which includes its revised compensation and levy forecasts for 2023/2024. The update confirms the FSCS has revised its levy forecast for 2023/24 to £270m. While this is...
FCA updates authorisation pages
FCA has updated its website to create a new page on applying for authorisation, and has updated existing pages on the authorisation process, preparing the financial information required and application fees.
FCA takes action on redress for borrowers
FCA has updated on its work with nearly 100 lenders on how they treat borrowers in financial difficulties. It identified a number of failings, including failure to tailor support to the circumstances of relevant...
New podcast on APP fraud
In the second of Rashmita Roy Chowdhury and Stephen Dilley’s podcasts on APP fraud, they look at recent judgements where the Quincecare duty and banks’ liaiblity under it are being put in the limelight.
LSB looks at access for d/Deaf customers
LSB has published a report looking at how better to drive inclusion for d/Deaf customers in the banking and credit sector. The report highlights the challenges these customers face, and LSB hopes it will enable firms to...
CMA finds provisional breach in bond information sharing
CMA has provisionally found that Citi, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada each unlawfully shared competitively sensitive information in one-to-one Bloomberg chatrooms. It found the breaches...
FCA consults on dormant assets rule changes
FCA is consulting on changes to its rules to reflect the further expansion of the Dormant Assets Scheme. Its rules facilitating the first phase of expansion, covering insurance, pensions and securities assets, took...
FCA publishes authorisations metrics Q4 2022/23
FCA has published its authorisations metrics for the quarter ended March 2023. The metrics show that FCA is continuing to make progress towards meeting its targets, and that it has improved on the significant delays...
UK and EU publish draft MoU on FS cooperation
The UK and EU Commission have published their draft MoU on regulatory cooperation in financial services. The draft is still subject to the internal processes of the EU, but both parties intend to sign it shortly. The...
FCA takes further action on BSPS advice and offers
FCA has taken action against a third firm that had made unsolicited offers to clients who had been BSPS members. David Stock & Co offered £50 to clients who had not yet complained. FCA has imposed requirements on...
Treasury concludes FSF review
Treasury has formally concluded the FSF review, following the publication of its December policy statement. FCA has updated its website to reflect what it will be doing to help deliver on the changes, including how it...
ASA rejects complaint on Over 50s ad
The ASA has not upheld complaints about 2 advertisements for Cover Today over 50s insurance. The ads both featured statements that Cover Today is “the only over 50s life insurer with no waiting period, unlike...
FCA gets distribution orders on investor scams
FCA has obtained 2 orders that will return over £130,000 to victims of unauthorised business scams: in relation to an unauthorised collective investment scheme set up and operated by Synergy Lands Group Limited between...
PRA speaks on use of data
Rebecca Jackson of PRA has spoken on how it uses supervisory and firm data. She explained the major shift in PRA strategy which started to coincide with Brexit. She noted that PRA makes use of structured, quantitative...
FSMB: Lords report stage scheduled for 6 June
The report stage in the Lords for the FSM Bill will start on 6 June. There is no set length of time for it to last, although further sittings have already been scheduled for 8 and 13 June.
FOS publishes discrimination complaints guidance
FOS has published an information page for firms dealing with complaints relating to discrimination. Complaints include: that financial services providers have not made reasonable adjustments to take account of a...
Financial Lives 2023 snapshot shows impact of rising cost of living
FCA has published a snapshot of its most recent Financial Lives survey, which it carried out in January 2023. It found: 1.4m more adults missed payments on domestic bills or credit commitments in 3 or more of the...
BoE publishes policy statement on model risk management principles for banks
The Prudential Regulation Authority (PRA) has published a policy statement on its model risk management principles for banks (the Principles) following an earlier consultation paper (CP6/22) on the same subject. The PRA...
Stephen WilsonTreasury Committee calls for crypto trading regulation
A report from the Treasury Committee calls for consumer trading in unbacked crypto to be regulated as gambling. The Committee says these currencies have no intrinsic value and serve no useful social purpose, yet they...
FCA speaks on regulatory response and changing threats
Sarah Pritchard has spoken on the future of non-financial risk and control across the 3 Lines of Defence. She discussed: FCA’s campaign to warn finfluencers against promoting illegal or inappropriately risky...
FCA speaks on NBFI and essential data
Ashley Alder, FCA Chair, has spoken to the Managed Fund Association’s summit. He spoke on the role of the diverse investment and funding markets which are not banks – all of which share the feature of not...
FCA consults on remuneration for dual regulated firms
The FCA is consulting on its proposed changes to the remuneration rules for dual-regulated firms. The consultation (CP23/11) aims to ensure that remuneration rules for smaller, less complex firms that fall under dual...
FCA issues public censure to firm over pension transfer advice failings
FCA has issued a public censure to Lighthouse Advisory Services Limited following a finding of serious failings in relation to defined benefit pension transfer advice, especially in relation to BSPS. It found several...
FCA publishes portfolio letter for SIPP operators
FCA has published a portfolio letter to SIPP operators which sets out its view of the key harms in the SIPP operator portfolio, its expectation as to how firms should mitigate these harms, and how its expectations in...
FCA publishes latest Financial Lives survey
FCA is inviting participants in its 2022 Financial Lives survey to take part in the new follow-up survey, which looks to understand what has changed in financial services for people in the UK over the last year. The...
Judicial review application dismissed on timeshares and CCA deemed agency
The High Court has handed down its judgment on the regulatory environment surrounding the sale of timeshares. FOS receives many complaints about misselling of fractional ownership of timeshares and selected two cases to...
FCA warns on approaching Consumer Duty
Sheldon Mills has reminded firms there are fewer than 90 days before the start of the Consumer Duty. He said firms that don’t meet the Duty’s requirements and who most put consumers at risk can expect swift...
Treasury calls for proposals on growth and competitiveness metrics
Treasury has published a call for proposals on which metrics FCA and PRA should publish in relation to the secondary growth and competitiveness objectives introduced under the FSM Bill. The consultation notes that the...
PRA publishes policy statement on SMCR form changes
Following its January 2023 consultation, PRA has published a policy statement setting out changes to the SMCR forms in its Rulebook. In particular, PRA will: Amend the Senior Managers Regime – Applications and...
FCA and police act on more illegal crypto ATMs
Following previous initiatives, FCA and relevant police units have inspected sites in Exeter, Nottingham and Sheffield suspected of housing illegal crypto ATMs.
FCA publishes Q1 fin proms data
The Financial Promotions data from Q1 2023 shows that 2235 promotions were amended or withdrawn as a result of FCA intervention. Nearly half of these were identified by FCA’s own proactive monitoring and almost...
FCA publishes Decision Notices on bank and employees
FCA has published Decision Notices in respect of Banque Havilland and 3 of its employees for acting without integrity by creating and disseminating a document which contained manipulative trading strategies aimed at...
BoE consults on approach to enforcement
BoE has published a consultation paper on its approach to enforcement. In particular, it proposes making a number of amendments to existing documents, creating a consolidated set of statements of policy entitled...
FCA publishes report on 2022 whistleblowing survey
FCA has published a report setting out the findings from its whistleblowing qualitative assessment survey 2022, which engaged with a small sample of recent whistleblowers who disclosed concerns about wrongdoing to the...
BoE speech: challenges and opportunities for the mutual sector
David Bailey, BoE Executive Director for UK Deposit Takers Supervision, has delivered a speech including many references to Eurovision entries but substantively on credit risk at The Building Societies Association...
Parliament debates FPO amendments
The House of Lords has been debating the draft statutory instrument amending the FPO to bring promotions of crypto assets within scope. The proposal, which includes extending appropriate exemptions to crypto-promotions...
Home Office publishes Economic Crime Survey 2020
The Home Office has published its findings from the 2020 Economic Crime Survey. It surveyed businesses in selected sectors and found that around 1 in 5 businesses had been a victim of fraud in the 3 years running up to...
Home Office publishes fraud strategy
The Government has announced the creation of a new National Fraud Squad as part of the Fraud Strategy. The strategy includes: new measures to ban cold calls on all financial products; working with Ofcom to further clamp...
FCA updates on markets review
FCA has issued: a consultation on improving the effectiveness of primary markets: the proposals look to streamline current listing rules to make them easier to understand and less onerous. Among the proposals are to...
PRA publishes its 2023/24 Business Plan
The PRA Business Plan sets out PRA’s strategy, workplan, and budget for 2023/24. It will be delivered through the following strategic goals: Maintain and build on the safety and soundness of the banking and insurance...
FCA consults on resilience data
FCA is consulting on a proposal to bring all full permission consumer credit firms within the scope of firms who need to provide it with baseline financial resilience data. This follows its new final rules on FIN073...
FSSC Publishes Report: Reskilling Everywhere All At Once, Skills for the future of financial services 2023
The Financial Services Skills Commission (FSSC) has published its report on reskilling for the future of the financial services industry. The report suggests UK businesses prioritise and implement reskilling programs to...
Lords Committee debates “failure to prevent fraud”
The Lords Committee has debated the Government amendment to create a new “failure to prevent fraud” offence. Lord Sharpe said the offence would drive change and facilitate prosecutions without duplicating...
PSR to change regulatory fees structure
Following its December 2022 consultation on whether its fee structure remains appropriate, PSR has published a policy statement setting out changes for 2023/24 onwards. The existing structure has been in place since...
PRA speech: moderation in the Bulk Purchase Annuity market
Charlotte Gerken, PRA Executive Director – Insurance, has delivered a speech on trends in the Bulk Purchase Annuity (BPA) market at the 20th Annual Conference on Bulk Annuities. The speech noted that pension...
LSB publishes its 2023/24 Business Plan and Budget
The Lending Standards Board (LSB) has published its Business Plan and Budget for 2023/24. Its focus areas this year will include financial resilience and digital journeys, and its ongoing work on the prevention of APP...
Tribunal finds against FCA on individual fine/ban
The Upper Tribunal has published its decision in Markos Markou v FCA. FCA had decided to fine Mr Markou £25,000 and ban him. Mr Markou was sole director of a small mortgage and insurance intermediary (FSE). After a...
FCA warns firms on overseas referrals
FCA has warned firms of the risks to consumers when overseas firms refer DB scheme members living overseas to UK firms for pension transfer advice. The overseas adviser is usually wanting the scheme member to transfer...
FCA speaks on credit markets
Roma Pearson of FCA spoke on the importance of a well functioning credit market and the need for firms to understand the impact on consumers of changing pressures and to offer appropriate support. She noted that good...
FCA publishes aggregate complaints data for H2 2022
FCA has published its overview of complaints in the second half of 2022. Overall it found: a decrease of 6% in complaints compared to H1, largely due to decreases in complaints about banking and credit cards, insurance...
PRA Occasional Consultation April 2023
PRA’s latest Occasional Consultation Paper covers minor proposed changes to: PRA’s approach to publishing Solvency II technical information group supervision in relation to Solvency II firms and Lloyds and...
FCA speaks on regulation and Fintech
Emily Shepperd spoke at City Week on how the FCA, and regulation generally, can help firms innovate and embrace Fintech. She spoke of challenges to the traditional banking model and what banks had done to address them...
Market Watch reports on CFD market abuse review
FCA’s latest edition of Market Watch looks at the results of FCA’s market abuse peer review into firms that offer CFDs and spread bets. These products are particularly vulnerable to being used for insider...
Asset Management Task force takes shape again
5 new members have joined the Asset Management Taskforce in the wake of the Edinburgh Reforms announcements. The Economic Secretary has also launched a new Technology Working Group to look at the impact of technology on...
Treasury Committee publishes exchange of letters with FCA
The Treasury Committee has published its request to FCA to provide it with information on key elements of its regulation following Nikhil Rathi’s appearance before it in early March, and FCA’s response. The...
FCA speaks on regulating digital assets
Sarah Pritchard has spoken at the City Week conference on the risks of crypto and the extent to which regulation can help mitigate the risks. She noted that regulation cannot stop all risk. However, the UK regulators...
FCA updates LDI guidance
FCA has updated its guidance for Liability Driven Investment managers to enhance resilience of the sector. Previous reviews showed deficiencies in risk management, communications and client servicing and in operational...
FCA sets out measures to reduce cash money laundering risks
FCA has worked with other organisations such as the National Economic Crime Centre, to work on a package of guidance for banks to strengthen controls against the risk of criminals looking to launder money through the...
FCA warns on “asset protection” trust mismanagement
FCA has published a consumer warning, setting out the dangers it has seen when firms seriously mismanage trusts. It notes the scope for misuse of consumer money where trustees are not competent or are not acting n the...
FCA updates BSPS redress calculation tools
FCA has updated its website resources for firms needing to calculate redress due to former BSPS members. FCA says its redress calculator will make calculations more consistent, ensure consumers get fair and quicker...
FCA consults on multi-occupancy leasehold insurance reforms
FCA has published a set of proposals designed to improve transparency in the multi-occupancy leasehold buildings insurance market. It plans to define leaseholders as “customers” of buildings insurance, and...
Raconteur feature on crypto exchanges – see our thoughts
WBD’s Andrew Parsons has been featured in a Raconteur article looking at the evolving risks of crypto exchanges and approaches to regulation.
FCA responds on savings rates
FCA has responded to the Treasury Committee’s enquiries on what analysis it had done on on whether banks were making disproportionate profit by increasing mortgage rates more quickly than savings rates...