A debate on the regulation of cryptocurrencies is set to take place on Wednesday 25 January, led by Dr Lisa Cameron. The House of Commons has published the debate pack which sets out the issues and topics which will be...
Category - Topics
FIN. TeamPSR discusses barriers to digital payments
On 29 November 2022, PSR held a roundtable discussion about the barriers to digital payments for people who primarily rely on cash. The discussion focused on: the reasons people continue to rely on cash, such as control...
BoE publishes response to remit for PRC – Jan 2023
The BoE has published its response to the remit for the Prudential Regulation Committee (19 January 2023) in its letter from Andrew Bailey, Governor, to Jeremy Hunt, Chancellor. The letter responds to the...
PRA publishes results of Insurance Stress Test 2022
The PRA has published its Insurance Stress Test 2022 (IST 2022) feedback (23 January 2023). The letter sets out the results of the IST 2022 which was launched in May 2022, findings on sector resilience, and provides...
Economic Crime and Transparency Bill at Report stage
The Economic Crime and Corporate Transparency Bill has completed the Committee stage in the Commons and moves to the Report stage on 24 January. Sittings are scheduled for both 24 and 25 January.
Emma RadmoreCommittee stage of FSMB in Lords starts 25 January
The Committee stage in the Lords will debate the FSM Bill starting on 25 January. 5 sittings have been scheduled, for 25 and 30 January, and 1, 6 and 9 February Further amendments have been tabled for discussion...
FCA starts thematic review of retirement income advice
FCA is undertaking some discovery work looking at how financial advisers are delivering advice on retirement income, with a view to assessing the quality of the outcomes consumers are getting. FCA says that since 2015...
FCA British Steel redress scheme challenged
FCA says a legal challenge has been launched to its decision to set up a redress scheme for former BSPS members. It says it will vigorously defend its scheme, which is is confident is appropriate. It says firms should...
Treasury calls for evidence on PSRs
Treasury is required to review the PSRs 2017 and is launching its review alongside a Call for Evidence on the evolution of UK payments regulation. Key points to note are: the consultation in 2022 on payments regulation...
Complaints Commissioner publishes protocols
The Complaints Commissioner has published the protocols for its relationship with the BoE and FCA. The protocols set out the contact areas within the institutions, the procedure on first receipt of a complaint, and...
Further FSMB amendments for Lords Grand Committee
Further amendments, and an updated running list of amendments, to the FSM Bill to be discussed in the Lords Grand Committee have been published. Among the latest additions are changes which would: remove short selling...
BBRS calls for SMEs to register old complaints
The Business Banking Resolution Service‘s “historical scheme” will close to new registrations on 14 February 2023. The scheme covers complaints first registered between 1 December 2001 and 31 March...
Treasury Committee publishes FCA information request
The Treasury Committee has published a letter sent to Nikhil Rathi on 1 December, asking for details on: total vacancies FCA has in specific areas, by grade, job and which ones require data or technology skills; how FCA...
FCA releases Consumer Duty podcast
FCA has released an “insider FCA” podcast on the Consumer Duty, looking at understanding the products and services outcome.
FCA follows restrictions on high-cost lender
FCA has published a First Supervisory Notice in respect of Micro-E C.I.C, trading as Kariba. The firm, a high costs lender, appears to have misused money from loans and does not seem to have sufficient assets to cover...
FSMB: Further Lords amends for debate
Further amendments to the FSM Bill have been published for debate in the Lords Committee. They relate mainly to: FCA powers beyond designated activities, aimed at giving it appropriate powers to take action against...
Lords publishes FSMB amendments for Committee
The House of Lords has published a set of amendments to the FSMB for discussion in the Grand Committee, which is now scheduled to sit on 25 and 30 January and 1 February. The amendments include several amendments that...
FCA updates whistleblowing figures
FCA has published its quarterly data for Q3 2022 on reports from whistleblowers. Between July-September 2022 it received 291 reports containing 734 allegations, mainly through its online reporting function, but with...
FCA extends confirmed guidance on motor ads
FCA has extended its confirmation of the Radiocentre industry guidance on ensuring financial promotions for motors brands on radio are clear, fair and not misleading and compliant with CONC. The guidance is now...
Regulators consult on MELL
PRA and FCA are consulting on the FSCS Management Expenses Levy Limit for 2023/24. The proposed level is £109.8m, slightly lower than the current year. It would apply from 1 April 2023. Consultation closes on 9...
FCA feeds back on OPBAS rulebook update
FCA has published the feedback it received on its consultation on updating the OPBAS Rulebook, and the revised rules, which took effect from 10 January 2023. FCA wanted to include a new chapter outlining OPBAS’...
FCA releases consultation paper on insurance guidance for the support of customers in financial difficulty (CP23/1)
The FCA has released its consultation paper on insurance guidance for the support of customers in financial difficulty (CP23/1). The FCA views that the number of customers in financial difficulty has increased in recent...
FCA Portfolio letter- wholesale brokers
FCA has written a portfolio letter to the wholesale broking sector. The letter notes that although generally brokers do not aim to take market risk in their core activities, there have been significant periods of...
EBA publishes peer review of PSD authorisation processes
EBA has published a peer review on authorisation of payment and e-money institutions under the Payment Services Directive (PSD2). It covers a three year period from 1 January 2019 – 31 December 2021. This falls...
Industry alliance forms to lead UK’s future in digital currencies
Five associations have formed an alliance called the UK Forum for Digital Currencies (UK FDC). Its members include the City of London Corporation, Digital Pound Foundation, the Payments Association, the CityUK and UK...
BoE (PRA) publishes Dear CEO Letters – 2023 Priorities for Insurance supervision, International Banks active in the UK, and UK Deposit Takers Supervision
On 10 January 2023, the BoE (PRA) published the following Dear CEO letters outlining its key supervisory priorities for insurers, international banks active in the UK, and UK Deposit Takers in 2023: Insurance...
FCA updates on Skilled Persons reports
FCA has published the figures for its Skilled Persons reports commissioned in the period from July to October 2022. 11 were commissioned in total, with 4 in the retail investments area, none for general insurance and...
FSMB completes second reading in Lords
The FSMB had its second reading in the Lords on 10 January. Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...
Market Watch looks at DRSP service
Edition 72 of FCA’s Market Watch looks at the quality of service that Data Reporting Services Providers give. Given the importance of DSRPs to the functioning of wholesale markets and promoting transparency and...
FCA fines Al Rayan Bank for AML failings
FCA has fined Al Rayan Bank PLC £4m for failing to have in place proper AML controls over 2.5 years to the end of November 2017. The bank is a subsidiary of a Qatar-based Islamic bank, and provides Sharia compliant...
Stanford v HSBC – further analysis of the Quincecare duty
We reported on this judgment before Christmas. Now read our more detailed analysis of the judgment and its effects.
FCA fines Guaranty Trust Bank again for AML failings
FCA has fined Guaranty Trust Bank (UK) Ltd, the UK subsidiary of Guaranty Trust Nigeria Bank Limited, over £7.5m for AML systems and controls weaknesses spanning a period of nearly 5 years to July 2019. It had...
FCA Publishes Portfolio Strategy Letter for CMCs
The FCA has published its Portfolio Letter outlining its Portfolio Strategy for Claims Management Companies (CMCs). The FCA sets out its updated view of harm and key risks that CMCs pose to their customers, its...
Treasury publishes AML and CFT supervision report
HM Treasury has published its “Anti-money laundering and countering the financing of terrorism: Supervision Report 2020-22“. The report addresses the performance of anti-money laundering (“AML“)...
Stephen WilsonFCA imposes restrictions on investment firm
FCA has published a first supervisory notice to Pello Capital Limited imposing various requirements on it with immediate effect (from the date of its publication on 15 November), as a result of concerns about the...
Supreme Court judgment in Stanford/HSBC case looks at recoverable losses
The Supreme Court has held that, where HSBC actioned instructions that may have been part of a fraud, but which resulted in creditors being repaid, then regardless of whether it had a Quincecare duty and, if it did, had...
FCA removes temporary permissions for missing landing slots
FCA has started using its powers to remove temporary permissions from firms in the TPR who missed their landing slots. Lyonnaise de Banque missed its allocated slot, which gave it until 31 March 2022 to apply. FCA has...
Onerous or essential: banks’ duties and APP fraud
Read our article by Stephen Dilley and Rasmita Roy Chowdury, looking at the history and case law relating to banks’ duties and APP fraud reimbursement.
BoE releases annual report on supervision of FMIs
The BoE has published its 2022 annual report on its supervision of financial market infrastructure firms (FMIs). FMIs provide services, such as payments, and networks that facilitate financial transactions. The...
Government raises POCA ‘exemption’ threshold
The Government has published the Proceeds of Crime (Money Laundering) (Threshold Amount) Order 2022 and an accompanying explanatory memorandum. The Order will amend section 339A of the Proceeds of Crime Act 2002...
Ombudsman News looks at financial difficulties relating to mortgage debt
The latest edition of Ombudsman News highlights new guidance published by the FOS which explains its approach to complaints about financial difficulties in relation to mortgage debt. The guidance is outlined in two new...
Regulators consult on removing bonus cap limits
The FCA and PRA have released their consultation paper (PRA CP 15/22 | FCA CP22/28) on their joint proposed rule changes to remove the existing limits on the ratio between fixed and variable components of total...
ECB publishes report on climate stress testing
The ECB has published the results of its 2022 climate stress test, which has helped banks to develop climate risk-related stress testing capabilities. The report highlights both physical and transition risks which...
Barclays granted permission to appeal to Supreme Court in APP fraud case
Barclays Bank UK plc has been granted permission to appeal to the Supreme Court in the case of Philipp v Barclays Bank UK plc [2022] EWCA Civ 318. As a reminder, Mrs Philipp issued a claim against Barclays Bank seeking...
Consumer Duty events
The FCA has announced it will be hosting a series of live and local events on the Consumer Duty across the UK between February and June 2023. The paid for events are aimed at retail investment and mortgage firms, and...
FCA updates Consumer Duty information page
FCA has updated its general information page for firms on the Consumer Duty. The page sets out brief guidance on: FCA’s expectations for outcome monitoring: FCA notes that without appropriate monitoring of...
FOS consults on plans and budget
FOS is consulting on its plan and budget for 2023/24. As part of the consultation, it asks: what volumes and trends it should be expecting in the areas of banking and credit, insurance, investments and pensions and...
FCA makes new rules
FCA’s latest Handbook Update confirms the following new rules: the Non-Workplace Pensions Instrument, which takes effect from 1 December 2023 and puts in place changes designed to help non-workplace pension savers...
Regulators update on Open Banking
Treasury, the CMA, FCA and PSR have issued a joint statement updating on their work on Open Banking. The Joint Regulatory Oversight Committee created in March is currently focussing on making recommendations for the...
Treasury Committee approves FCA chair
The Treasury Committee has approved the appointment of Ashley Alder as Chair of the FCA. It discussed his views on relevant topics and competence for the role, and noted that, moving as he is from a jurisdiction of...
Government publishes debt repayment plan response
The Government has published its response to its consultation on Statutory Debt Repayment plans. It had consulted on a proposal for debt advisers to devise repayment plans lasting up to 10 years, which would provide...
UK Finance publishes crypto regulation report
UK Finance has published a report it has produced with KPMG looking at how the UK regulatory framework can address unbacked cryptoassets. The report gives an overview of the current UK regulatory landscape and looks at...
Andrew Griffith updates on Green Taxonomy
Andrew Griffith has confirmed a statement by Baroness Penn confirming that the Government will not make secondary legislation under the Taxonomy Regulations this year, and will update further on its plans as part of its...
FCA to require MFA for Connect
FCA has announced it is to require multi-factor authentication for access to all its online resources like Connect, Reg Data and the Fees Portal, with effect from 20 January 2023. Users will need to enter a one time...
FCA to compel extra year of LIBOR publishing
FCA has published a decision notice issued to ICE Benchmark Administration Limited ordering it to continue to publish 3 month sterling LIBOR for another year. The final version was originally due to be published on 30...
BoE consults on wholesale cash distribution
The Bank of England is consulting on how it will use the new powers it expects to get under the FSMB to ensure effective, resilient and sustainable distribution of wholesale cash. The current wholesale distribution...
The Edinburgh reforms – and more
See our article, summarising various FIN posts over the past week on the state of play of the FSM Bill and the Edinburgh reforms.
FCA writes to life insurers on cost of living help
FCA has written a Dear CEO letter to the life insurance sector setting out its expectations on firms during the cost of living crisis. It reminds firms: to give protection insurance customers appropriate information at...
PSR consults on fees
The PSR is consulting on whether its regulatory fee structure, which has been in place since 2018/19 is still appropriate. It plans to retain the current regime, but change the way in which fees are allocated, with a...
FCA feeds back on compensation plans
FCA has published its feedback statement following its call for input into the protection the FSCS provides. The common message from respondents was that firms need to improve their conduct so that there are not so...
BoE publishes December 2022 Financial Stability Report
The Bank of England’s Financial Policy Committee (FPC) has published its December 2022 Financial Stability Report setting out its view on the stability of the UK financial system and what it is doing to remove or...
FCA announces ESG Advisory Committee to its Board
FCA has announced a new advisory committee to its Board which will focus on supporting FCA with its ESG-related responsibilities. This is intended to align with the UK’s commitment to achieving a net zero economy...
Latest Market Watch focuses on insider lists
FCA’s Market Watch Issue 71 concentrates on changes to advisory firms’ insider lists since the guidance FCA gave in edition 60, when it criticised firms for having unnecessarily large numbers of insiders. It...
FCA seeks views on retail disclosures
Following on from the Treasury consultation on PRIIPs information requirements, FCA is now seeking views on when and in what format information should be delivered to consumers in a way that ensures what is provided is...
UK to seek enhanced FTA with South Korea
The Government has started preparations to negotiate an enhanced free trade agreement with South Korea. It has published a Call for Input asking for views which will help it shape the negotiations, and asks for views by...
FCA publishes D&I review
FCA has published a report following its multi firm review of how firms are designing and embedding D&I strategies. Its review covered 12 fixed portfolio firms across multiple sectors, and consisted of it asking for...
FCA fines Metro Bank for Listing Rule breaches
FCA has fined Metro Bank over £10m and has also decided to fine its former CEO and CFO £223,100 and £134,600 for being knowing concerned in the bank’s breach of the Listing Rules, which involved publishing...
Treasury puts in place Haiti sanctions
The Haiti (Sanctions) Regulations 2022 will take effect from 28 December, following a UN Security Council Resolution. OFSI has published guidance to accompany the Regulations which will, among other things, include on...
Treasury makes recommendations to PRA and FCA
Treasury has published its correspondence setting out recommendations for PRA and FCA, which coincide with the announcement of the Edinburgh reforms. Treasury is required, at least once each Parliament, to set out...
FCA fines Santander for AML failings
FCA has fined Santander UK plc £107.7m for serious and persistent gaps in its AML controls that related to its business banking customers. It found that over a period of nearly 5 years from the end of 2012, the banks...
FSM Bill for Lords published
The new version of the Financial Services and Markets Bill, following the end of the Commons Stage, has been published, as the version read in the Lords on 8 December.
Treasury consults on PAR information requirements
Treasury is consulting on the customer information requirements in the Payment Accounts Regulations. It is reviewing the requirements in the Schedules to the Regulations, in the expectation that many of them are too...
Treasury consults on PRIIPs and UK Retail Disclosure
Treasury is consulting on plans to revoke the PRIIPs Regulation and replace it with a more suitable alternative. The PRIIPS Regulation has not been popular, with key criticisms being that it requires misleading...
Treasury responds on ring-fencing changes
Treasury has published the Government response on the recommendations of the Independent Panel on ring-fencing and proprietary trading. The report had made several recommendations to reduce the rigidity of the regime...
Treasury consults on CCA reform
Treasury is consulting on reform of the Consumer Credit Act. This is the first consultation following its announcement in June that it would undertake reform, and seeks views on the strategic direction of the reform...
Treasury publishes FS law Brexit strategy
Treasury has published a Policy Paper setting out how it intends to deal with retained EU law in the financial regulatory sector. The Policy Paper says that the FSMA model, with the operationally dependent regulators...
FCA updates SMF and related pages
FCA has updated several parts of its website relating to its approval process for senior manager and other individual applications. The updated pages include: details on the approved persons process generally; how to...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
PSR updates on APP scam data
The PSR has published an update on its plan to publish data on how banks and building societies are responding to APP scams. PSR will require the 14 largest PSPs in the UK to provide 6 monthly data on APP scam...
FCA fines brokers for market abuse detection failings
FCA has fined 3 firms within the BGC and GFI group a total of £4,775,200 for failure properly to implement the MAR trade surveillance requirements, which meant there was an increased risk that the firms would not detect...
Tribunal backs FCA on crypto-refusal decision
The Upper Tribunal has published its decision made in September on an application by Moneybrain Limited. Moneybrain had created a type of cryptocurrency called BiPS tokens and had applied to FCA to be registered as a...
FSM Bill – Lords dates announced
The FSM Bill as amended after its passage through the Commons has now had its first (routine) reading in the Lords. The Lords’ second reading has been set for 10 January 2023.
FSM Bill report stage
As scheduled, the FSM Bill had its report stage on 7 December and, eventually, at nearly 7pm, the Third Reading of the Bill took place and was agreed to. The Bill now moves to the Lords. While we still await the new...
New AR rules take effect
The FCA’s reforms to the appointed representative regime have come into force and the FCA has published a new webpage setting out information on the s165 requests it will be sending to principal firms. As a...
FCA consults on mortgage support guidance
The FCA is consulting on draft guidance explaining how firms can support their mortgage customers impacted by the cost-of-living crisis, including varying a contract for forbearance purposes. The draft guidance will...
PRA speaks on implementation of Basel 3.1
Phil Evans of the PRA has given a speech at UK Finance entitled “Implementing Basel 3.1 in the UK” providing an overview of the approach in PRA’s consultation paper CP 16/22. In it he notes the momentousness...
UK regulators consult on DRCF workplan 2023-24
The Digital Regulation Cooperation Forum (DRCF) – made up of the FCA, CMA, ICO and Ofcom – is calling for input on its workplan for 2023-24. The consultation invites stakeholders to share their views on...
PSR updates on CoP progress
The PSR has written to the Chair of the Treasury Select Committee to update her on the progress of CoP Phase 2 implementation. As a reminder, the aim of Phase 2 is to extend CoP to include PSPs who do not use the widely...
European Council agrees strengthened AML rules
The European Council has agreed its position on both an AML regulation and a new directive (AMLD6). These regulations aim to improve risk mitigation, detect criminal activity and ensure the EU’s financial system...
EBA consults on guidelines to address de-risking
EBA has opened a consultation on two new sets of guidelines which look to address the effective management of money laundering and terrorist financing risks when providing access to financial services. The aim of the...
FCA and Pensions Regulator update on joint strategy
The FCA and The Pensions Regulator have provided an update on their 2018 joint regulatory strategy for the pensions and retirement income sector. The statement explains the regulators’ progress since 2018 and...
FCA bans bond traders for market manipulation
The FCA has published Decision Notices banning Diego Urra, Jorge Lopez Gonzalez and Poojan Sheth from performing any functions in relation to regulated activity. The FCA considers that the traders placed large...
FSB holds Basel plenary
The FSB Plenary met in Basel to review vulnerabilities in the global financial system and to discuss policy work in several areas including crypto. The Plenary also agreed its work programme for 2023. Financial...
Memorandum of Understanding between UK and Banco de Portugal
FCA has published a Memorandum of Understanding (MoU) which has been made between the PRA and FCA and Banco de Portugal for the purposes of supervisory cooperation. This is the latest in a series of MoUs made by the UK...
JMLSG publishes revisions to Guidance
JMLSG has published amendments to several parts of its guidance, and has submitted the updated versions to Treasury for approval. The revisions update: Chapter 5 of Part 1 (5.5.11) to update provisions on high-risk...
FCA consults on fin proms gateway
Following Treasury’s 2020 consultation, the FCA has launched its own consultation on the introduction of a gateway for firms who wish to approve financial promotions on behalf of unauthorised persons. The paper...
Dear CEO letter outlines strategy for financial advisers
The FCA has published a portfolio letter which sets out its supervisory strategy for financial advisers and intermediaries. The letter confirms that financial advisers are a key priority for the FCA and outlines the...
FCA updates on debt packager proposals
Following its November 2021 consultation on plans to ban debt packagers from receiving referral fees from debt solution providers, the FCA has provided an update on its proposals. The FCA will set out its proposed next...
FSMB amendment paper published
In advance of the FSM Bill starting its report stage on 7 December, the House of Commons has published an updated version of the amendment paper which lists all amendments tabled to the Bill together with any withdrawn...
EIOPA publishes discussion paper on assessing insurers’ sustainability
EIOPA has published a Discussion Paper (DP) on assessing the prudential treatment of insurers’ sustainable assets and activities. Given that insurance underwriting and investment activities can be profoundly...