Charles Street Securities Europe LLP had applied for judicial review of a FOS decision. FOS had upheld a complaint made by a retired businessman against the firm. The client had originally signed an agreement with the...
Category - Topics
Emma RadmoreFCA continues Consumer Duty preparation support
FCA has published a further set of portfolio “Dear CEO” letters aimed at helping firms to prepare for the final push towards Consumer Duty implementation. Its latest series of letters cover: motor finance...
Parliamentary group looks at business banking redress
An All-Party Parliamentary Group has published a report looking at compensation schemes for business banking. The report notes that bespoke ad hoc schemes have been established following specific banking scandals but...
Economic Affairs Committee looks at BoE independence
A new Economic Affairs Committee enquiry is looking at how BoE has worked in the 25 years since the Bank of England Act 1998 gave it independence and reformed its structure, responsibilities and functions. The Committee...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation on miscellaneous amendments to its Handbook. All it is consulting on is some proposed additional guidance to the Annual Claims Management Report form and minor...
FCA to review trade data market competition issues
FCA has conducted a review that shows that competition in some parts of the wholesale data market is not working as well as it should. It has published a report showing the shortcomings of the current marketplace in...
Treasury calls for evidence on ring-fencing
Treasury has published a call for evidence looking at the practicalities of aligning the ring-fencing and resolution regimes for banks. The proposals build on the Skeoch review, which found that the benefits of ring...
Sixth day of FSMB debate in Lords’ Committee
The Committee stage in the Lords’ has completed its sixth day of debate on the FSM Bill. The Committee spent 2.5 hours debating a set of proposals around the creation of an office for Financial Regulatory...
Regulators update Regulatory Initiatives Grid
The Financial Services Regulatory Initiatives Forum has published the sixth edition of the Regulatory Initiatives Grid. The edition was due last November, but has been held back to allow the regulators to consider how...
FCA updates BSPS tools for firms
FCA has updated its website summarising the steps firms involved in advice on BSPS transfers must take to comply with the FCA redress scheme. The page includes links to the DBAAT template and instructions, and notes...
PRA consults on liquidity, disclosure and proportionality
BoE/PRA has issued consultations on: liquidity and disclosure requirements for simpler-regime firms. The changes, the first in a set of changes aimed at helping firms deemed to fall within scope, would: set new...
FCA faces judicial review over climate statements in approved prospectus
ClientEarth has announced the filing of an application for judicial review of FCA’s decision to approve a prospectus which it alleges failed properly to describe climate-related risks faced by the company. It says...
Green Finance Institute calls for single taxonomy
The Green Finance Institute is concerned that there are now over 30 taxonomies either finalised or under discussion, and that this “regulatory proliferation” is undermining efforts to promote cross-border...
Conclusions from FATF plenary
FATF held its latest plenary session from 22-24 February. Key decisions and updates were: To suspend the membership of the Russian Federation; Adding South Africa and Nigeria to the list of jurisdictions under increased...
Economic Secretary speaks at ABI’s Annual Conference
Andrew Griffith MP, the Economic Secretary to the Treasury, has delivered his keynote speech at the Association of British Insurers’ Annual Conference highlighting government action which aims to promote growth...
FIN. TeamPRA speaks on ‘Fundamental Spreads’ – next steps for Solvency II reforms
Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO, has delivered his speech ‘Fundamental Spreads’, highlighting the next steps for reforming the Solvency II insurance regulations in the UK. Mr...
PSR speaks on tackling APP fraud
Chris Hemsley has spoken of PSR’s role in regulating all UK payment systems and the importance of collaboration in tackling fraud. His speech focussed on APP fraud, noting the significant problem it poses and...
FCA publishes Consumer Duty programme of engagement
FCA has published a press release on its programme of engagement for the Consumer Duty, as its second batch of portfolio letters were sent on 21 February 2023. FCA’s programme of engagement sets out expectations...
LMA launches CUO Committee for market-wide strategic initiatives
The Lloyd’s Market Association (LMA) has announced its launch of the Chief Underwriting Officers’ (CUO) Committee. The committee will portray managing agents’ perspectives on Lloyd’s strategic initiatives...
FCA publishes more Consumer Duty letters
FCA has published three more letters in its series of letters to firms on preparation for the Consumer Duty. The latest set relate to: debt advice firms; debt purchasers, debt collectors and debt administrators; and...
ABI and Fairer Finance announce “guide to clear communications”
ABI has worked with Fairer Finance to produce a guide to clear communications covering all aspects of how insurers communicate with their customers. Key recommendations include: sentences should be under 29 words;...
FSMB Committee debates regulatory accountability
The fifth day of debate in the Grand Committee on the FSM Bill focussed on regulatory accountability and a set of amendments proposed by Baroness Bowles. The amendments were withdrawn as they had predominantly been...
Court requires FOS to review decision
The High Court has taken the relatively rare step of ordering FOS to review a decision. The complainant, Mr Moniak, had been a customer of Barclays. Following an inheritance in 2010, a total of £500,000 was paid into...
FLA publishes consumer credit research
The Finance and Leasing Association has published a research paper that looks at what improvements consumers would like to see in consumer credit. While many respondents thought the products and markets are functioning...
FSB outlines priorities for the year
The Financial Stability Board has written to G20 Finance Ministers and Central Bank Governors outlining its priorities for the year. At the G20 meeting on 24-25 February, it plans to present papers on: non bank...
FCA updates on Link action
FCA is in discussions with the Link Group and Link Fund Solutions over whether its proposed enforcement action against LFS can be resolved by agreement – specifically, that consumers affected by the suspension of...
FCA consults on asset management regulation
FCA is seeking views on what regulatory change might help the UK asset management industry while supporting investors and boosting competition. It has issued a wide-ranging discussion paper setting out possible areas...
New AML guidance for art market participants
The British Art Market Federation has published guidance for its members on compliance with AML requirements. Treasury has approved the guidance, which is to be read alongside HMRC guidance. The guidance explains who...
FCA asks for information on concerning pension transfer requests
FCA has asked pension schemes or trustees to report to them instances when they have had concerns about or have refused a pension transfer. It is seeking information on: individuals who provide unauthorised advice on...
UN updates principles for responsible banking
The UN Environment Programme has updated its Responsible Banking principles aimed at strengthening climate ambition. At a meeting last year, signatories decided the Principles’ climate ambition should be...
5th day of FSM Bill Grand Committee debate to start
Day 5 of the scheduled 6 days of the Lords’ Grand Committee debate on the FSM Bill takes place on 20 February. To date, Parliament has picked out that key amendments debated have covered: revocation of retained...
FCA re-recognises LSB business lending code
FCA has renewed its recognition of LSB’s Standards of Lending Practice for business customers as from 6 February. The recognition expires on 10 February 2026. The standards address lending to SMEs with a turnover...
Latest FOS data shows rise in complaints
FOS has published its complaints data from Q3, 2022/23, which shows a rise of 6,000 in new complaints, with the most significant rise relating to running account credit but current accounts are still the most complained...
Strategic Working Group publishes report on Open Banking
The FCA has welcomed a report by the Strategic Working Group , published as an initial step towards publication of recommendations for the vision for open banking in the future. The Joint Regulatory Oversight Committee...
FCA cracks down on crypto ATMs
No crypto ATM operators are currently registered with FCA for AML supervision, so FCA is cracking down on all unregistered machines and their operators. Following a joint operation with West Yorkshire Police, it has...
FCA censures Amigo for inadequate affordability checks
FCA has publicly censured Amigo Loans Ltd following a finding that it did not have appropriate processes in place to assess borrower and guarantor circumstances before granting loans for a period of around 18 months...
Treasury consults on BNPL legislation
Treasury has published the long-awaited consultation on draft legislation to bring those who offer Buy-Now-Pay-Later and similar products within the scope of financial regulation. It has published both the draft law...
PSR publishes 2022 review
PSR has looked back on its major work and developments during 2022. Chris Hemsley noted that post-pandemic, there was a lot of significant discussion with consumer groups, businesses and payment firms. PSR’s 5...
Wolfsberg Group updates DDQ materials
The Wolfsberg Group has updated various documents: the new version of the Correspondent Banking DDQ includes a new section on fraud, sanctions policies, additional questions and formatting changes; the new version of...
PRA updates Remuneration SS
PRA has updated its SS2/17 on Remuneration following its policy statement. The changes took effect from 10 February, and add a new section covering PRA’s expectations that in principle, unvested, deferred claims...
FCA seeks views on sustainability changes in firm governance
FCA has published a discussion paper looking at how it can best support the role of the financial sector in the transition to net zero and more broadly to a sustainable future. While the paper will be of interest to all...
PSR consults on reporting of APP scams
PSR has issued a consultation on guidance to help PSPs to provide the right data when reporting APP scams to the regulator. The first collection is coming soon, with firms’ submissions due in May, with the first...
FCA feeds back on synthetic data
FCA has issued its feedback statement following its call for input on synthetic data. The call for input looked to probe how best to access quality data to help develop new products and services while protecting...
Economic Crime Bill continues Lords progress
The Economic Crime and Corporate Transparency Bill is continuing its progress through the House of Lords, with its second reading on 8 February. During the reading, there was significant discussion about fraud...
BoE publishes policy on outsourcing and third party risk management for FMIs
BoE has published its outsourcing and third party risk management policy for Financial Market Infrastructures (FMIs). The policy is set out across the following policy statements and documents: Policy Statement Code of...
PRA consults on dealing with insurers in financial difficulty
The PRA has published its consultation paper (CP3/23) and appendices seeking consultation on its proposed rules and policy changes introduced by the Financial Service and Markets Bill 2022-23 (FSM Bill) to the Financial...
BoE speaks on digital pound
Sir Jon Cunliffe has spoken on the digital pound, as the BoE and Treasury launched their consultation. He noted that, while no firm decision can be taken on implementing the digital pound, the taskforce is now moving to...
Treasury and BoE consult on digital pound
Treasury and BoE are consulting on the potential creation of a digital pound, which would be issued by the BoE. It would be interchangeable with cash and could be used for in-store and online payments. No formal...
FSMB 4th session in Grand Committee
The 4th sitting of the Grand Committee on the FSM Bill took place on 6 February. The Committee discussed: financial inclusion, both as a general principle and in terms of the reality of retail investors being excluded...
Edinburgh Reforms inquiry hears evidence
The Parliamentary Committee on the Edinburgh Reforms is currently accepting evidence, and held a formal session on 1 February at which Sir John Vickers and Sir Keith Skeoch gave evidence on ring-fencing. The evidence is...
FCA seeks redress for unauthorised firm investors
FCA has started High Court proceedings against Argento Wealth Limited and its sole director, Daniel Willis. It alleges the firm unlawfully took around £2.8m as deposits under loan agreements and/or as part of an...
FCA warns again about BSPS offers
FCA says it has now identified 15 more firms which have been making unsolicited offers to former BSPS members, in what it believes is a deliberate attempt to exclude them from the redress scheme that takes effect from...
Treasury Committee critical of scam reimbursement plans
The Treasury Committee has published a report criticising both the “painfully slow” implementation of mandatory reimbursement for fraud victims and the PSR’s proposals that banks and building societies...
FCA reminds crypto firms of upcoming fin prom rules
FCA has reminded all crypto firms of the Government’s intention to bring all promotions to UK customers by cryptoasset firms within the scope of the financial promotions regime. Once the changes take effect, any...
FSM Bill amendment list updated
The latest group of marshalled amendments to be discussed at FSM Bill Committee stage in the Lords has been published. At today’s sitting, the Committee will start discussing amendments from Clause 24 onwards...
FCA publishes supervisory notice on high-cost lender
FCA has published a “further first supervisory notice” to Indigo Michael Limited, a high cost consumer credit lender. It first imposed a notice on the firm in July 2022, and now requires that: the firm must...
FCA publishes decision notice on SMF application
FCA has published a decision notice to Saranac Partners Limited. FCA has decided to refuse the application made by the firm for Thomas Kalaris to become its chief executive and hold the SMF1 and SMF3 functions. It...
FCA updates on asset management supervision
FCA has published a Dear CEO letter on its asset management supervision strategy. FCA has restructured so that these firms are now supervised by the Buy-Side Directorate. There are around 1,000 firms in the portfolio...
FCA publishes Consumer Duty sector letters
FCA has published a set of Dear CEO letters it has sent to several sectors on preparation for the Consumer Duty. It has so far written to: asset management, custody and fund services and alternatives; consumer...
Treasury publishes collection of G7 cyber docs
Treasury has published a set of papers from the G7 Cyber Expert Group, looking at various cyber security issues in the finance sector. The group has been active since 2016, but Treasury is now publishing a collection...
FCA steps up on fin prom actions
The latest figures FCA has published on its actions relating to financial promotions shows a huge increase in the numbers of ads it required firms to amend or remove in 2022 over the previous year. It required action...
Round up of FSMB in Lords’ Grand Committee
The FSMB has now completed 3 of its scheduled 6 sessions in the Lords’ Grand Committee. Many Lords have spoken on amendments, including several from Baroness Bowles, but so far none have been voted through. The...
FCA to ban debt packager referral fees
FCA has confirmed its plan to ban debt packager firms from getting referral fees from debt solution providers. It has issued a further short consultation to enable it to get more evidence which will then allow it to...
HSBC breaches retail banking order
The Competition and Markets Authority (“CMA“) has written to HSBK UK Bank Plc concerning its breaches of Part 2 of the Retail Banking Market Investigation Order 2017 (the “Order“). Part 2 of the...
Stephen WilsonFSMB Lords Committee third day
The Lords Grand Committee had its third day of discussion on the FSM Bill on 1 February. The session covered: a group of amendments designed to test how the regulators apply their competitiveness and growth objectives...
FCA and Practitioner Panel send out survey
The FCA and Practitioner Panel 2022/23 survey is now being sent to a sample of regulated firms. The survey will go to all fixed portfolio firms and a sample of 13,000 flexible portfolio firms, and will see view on how...
CMA announces new OBIE Chair
Marion King has been appointed as the new Chair and Trustee of the Open Banking Implementation Entity with effect from 1 February 2023. The outgoing chair, Charlotte Crosswell, published her summary report on the end of...
NCA updates SAR guidance for new Portal
NCA has published a suite of documents comprising documents giving guidance on the new SAR Portal, together with FAQs on its use and new guidance for firms within the regulated sector on submitting SARs.
FCA confirms Aidene Walsh as PSR chair
FCA has confirmed that Aidene Walsh, who has been interim Chair of the PSR since April 2022 will now take the appointment for a three year term. As PSR chair, she will also sit on the FCA Board.
Treasury feeds back on cryptoasset promotions
Treasury has published its response to consultation on cryptoasset promotions. In summary, and in line with the decision to regulate crypto-related activities, the Government will bring promotions of cryptoassets within...
Treasury consults on crypto regulation
Treasury has published its long-awaited consultation on its plans to regulate cryptoasset activities in the UK. The consultation, which also includes a call for evidence and is accompanied by Treasury’s response...
FCA places restrictions on 2 advisory firms
FCA has imposed restrictions on Nexus Independent Financial Advisers Limited and Nexus Investment Managers Limited that prevent the firms from carrying out any regulated activities and restrict access to their assets. ...
UK criticised in CPI 2022
The 2022 Corruption Perceptions Index has been published. There is little significant change, with Scandinavian countries taking 4 of the top 6 spots, and most of the top 20 being European countries. The UK is in...
EBA clarifies SCA application to digital wallets
EBA has published some additions to its Q&As on PSD2, which clarify its stance on the application of the PSD2 SCA requirements in relation to cards held in digital wallets. The questions confirm that the addition of...
Regulators publish CBEST 2022 conclusions
BoE, PRA and FCA have written to firms with the results of the 2022 CBEST stress test. In a letter to the SMF holders with responsibility for cyber, the letter aims to: inform firms of perceived weaknesses; enable...
PRA consults on SMCR form changes
PRA is consulting on removing certain SMCR forms from its rulebook and also increasing the period for which employment history is required. It says that by moving the forms, it means it will not need to consult...
Levelling Up Secretary calls for urgent multi-occupation insurance action
Michael Gove has written to FCA in response to its review on multi-occupation building insurance. He calls on both Treasury and FCA to take urgent action to improve both the cost and availability of insurance for multi...
FSMB second day of Lords’ Committee hearing
The second day of debate in the Lords’ Grand Committee consisted of a lively debate on several proposed amendments, none of which have been taken forward. Topics debated were: creating offences for abuse of...
Economic Crime and Corporate Transparency Bill goes to Lords
The Economic Crime and Corporate Transparency Bill has now completed its passage in the Commons and moved to the Lords, where it had its first reading on 30 January and is due to have its second reading on 8 February.
Court holds “debtor” must be contractual party
The Court of Appeal has held that an individual cannot bring a claim under s75 CCA unless they were party to the relevant credit agreement, as otherwise they cannot be a “debtor” for those purposes. In ...
Regulators consult on value for money
FCA, the DWP and the Pensions Regulator are seeking views on proposals to require trustees and managers of DC occupational pension schemes, and the providers and IGCs of workplace personal pension schemes to disclose...
Sub-Committee publishes regulatory correspondence
The Treasury Sub-Committee on financial services regulations has published correspondence it has had with regulators on: sustainable investments: FCA has informed it that it thinks one third of funds that currently...
First session of Grand Committee on FSMB
In the first session of the Grand Committee sitting on the FSM Bill, Clause 1-23 of the Bill were approved (some with amendments), and a number of Government amendments were also agreed. There was lengthy discussion on...
FCA makes BSPS extended asset retention rules
FCA has confirmed its new rules that extend the asset retention requirement for firms who advised British Steel pension scheme members on transferring out. The new rules, effective from 31 January (when the current...
Failure to prevent fraud offence debated in Economic Crime Bill
A clause has been introduced for debate in the Economic Crime Bill, which is now on its third reading in Parliament, to create an offence of “failure to prevent fraud, false accounting or money laundering”...
FCA concerned about misleading BSPS redress offers
FCA has become aware that some firms are making unsolicited offers of redress to former BSPS members who have not made complaints. FCA feels this may be a deliberate attempt to exclude former members from the redress...
TheCityUK reports on more efficient authorisations
TheCityUK has published a report recommending actions that would improve the speed, efficiency and effectiveness of the PRA and FCA authorisation process. The increasing delays in the process are costing firms money and...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
FCA warns consumers on pre-paid probate plans
FCA has issued a consumer warning on pre-paid probate plans. It has seen increased marketing of these plans, which are not regulated products. Many of them are marketed by pre-paid funeral plan firms that FCA did not...
FCA feeds back on crypto applications
FCA has published its feedback on good and poor quality applications made by crypto firms under the MLRs. FCA has seen and refused so many bad quality applications it has now provided guidance to firms on what they have...
Culture Board winding up
The Financial Services Culture Board is to wind up. The Board is a not-for-profit voluntary membership body and has decided it cannot be confident it will have the income to take it to the end of 2023 and has therefore...
FCA concerned about consumer harm from coordinating money transfer firms
FCA has used its competition powers to issue a statement of objections alleging that three money transfer businesses coordinated with each other to fix prices for customers in Glasgow transferring money to Pakistan. It...
LMA updates on ESG Insights for Insurers
The Lloyd’s Market Association (LMA) has highlighted the importance of ESG data for insurers and the role it will play in underwriting approaches to sustainability strategy. Links to these insights and the report...
FCA publishes multi-firm review of Consumer Duty preparation
FCA has published the conclusions from a multi-firm review it carried out to gauge firms’ preparations for the implementation of the Consumer Duty. It asked a range of larger retail firms within its fixed...
FCA updates on how to complain
FCA has updated its information page on how to complain about the regulators. The new information notes that complainants need not wait for one complaint to be concluded before starting another but stresses that the...
FCA updates on MFA
FCA has updated its resources on the introduction of MFA for use of Connect, Reg Data, Fees Portal, the SIS and ESS. New guidance looks at how firms and their compliance consultants will need to be set up so that...
FCA updates application pages for mortgage intermediaries
FCA has updated its information pages and application forms for mortgage intermediaries.
FCA updates Consumer Duty resources
FCA has updated its information summary page on the Consumer Duty to include more detail on its expectations on firms applying now for authorisation. It expects firms to provide it with all policies, processes, MI and...
NCA publishes SARs report 2020-22
NCA has published its SARs annual report, which covers a 2 year period since it did not publish one in 2021. Key statistics are: a record over 900,000 SARs received and processed in the last financial year – 21%...
FCA speaks on “better foundations” in AI
Jessica Rusu, speaking at the Alan Turing institute, has addressed the critical considerations for the best use of AI in financial services. She said that: AI regulation in financial services needs to be built on a...