The FCA summarised feedback received to its discussion chapter (in CP21/18) on environmental, social and governance (ESG) integration in UK capital markets and has set out the potential next steps. The FCA received 50...
Category - Topics
FIN. TeamPSR updates on card-acquiring market review
Following its initial consultation, the PSR has now published its provisional decision in relation to remedies for the card-acquiring market review. The PSR has launched a second consultation on proposals for three...
Emma RadmoreUK sanctions more Russian oligarchs
New sanctions under the Russian regime designate more individuals within Vladimir Putin’s inner circle, including Russia’s second richest man, and a relation to Putin’s who is president of a large...
Emma RadmoreOFSI fines company for employee flight sanctions breach
OFSI has updated its table of monetary penalties for sanctions breaches. The table now reflects a fine on Tracerco Limited, a company operating in the energy sector, which has been fined £15,000 for making funds...
FCA Portfolio Strategy letter for lifetime mortgage providers
FCA has published its Dear CEO letter for the lifetime mortgage provider sector. Its last letter was in October 2020. The latest letter: highlights (as other sectoral letters have done) the impact on vulnerable...
PRA sends firms letters on trading book fundamental review
The Prudential Regulation Authority (PRA) has sent firms a letter setting out its approach to the “Fundamental Review of the Trading Book” (FRTB), on which it will consult in Q4-2022 as part of its review of...
FCA publishes portfolio letter to debt advice firms
FCA has published its Dear CEO letter to the debt advice portfolio, updating its letter of 2020. Most of the messages are similar to those it has given to the mainstream consumer credit lenders, specifically the focus...
FOS publishes annual complaints data for 2021/22
FOS has published its annual complaints data for April 2021 – March 2022. Highlights include: FOS received 165,263 new complaints which is a decrease on the previous year (279,146). Of these, there were 5,369 PPI...
FCA publishes regulated fees and levies for 2022/23
The FCA has published its final periodic regulatory fees and levies for 2022/23 including feedback on CP22/07. The FCA will invoice fee-payers from July 2022 onwards for their 2022/23 periodic fees and levies.
Ruling on costs in collective damages action
Following the latest judgment in the matter of Merricks v Mastercard, the CAT has now given a ruling on costs. The ruling concerns: The costs between 19 August 2021 and 9 March 2022 – Mastercard submitted that the...
FCA Portfolio letter for Mainstream Consumer Credit Lenders
On 27 June 2022, the FCA published a portfolio letter setting out its supervisory strategy for mainstream consumer credit lenders (MCCLs). In the letter, the FCA outlined the key risks of harm for MCCL firms, their...
FCA fines Ghana International Bank for correspondent banking DD failings
FCA has fined Ghana International Bank nearly £6m for failings in its financial crime prevention controls in respect of its correspondent banking business. It found that, for a 5 year period to the end of 2016, it did...
Update: the future of UK financial services regulation
The Treasury Committee has published a report outlining its plans to launch a new Sub-Committee to scrutinise regulatory proposals for financial services. The Sub-Committee will be chaired by the Rt. Hon. Mel Stride MP...
FCA fines JLT for more bribery control failings
FCA has levied a second fine on insurance broker JLT Speciality Ltd for financial crime control failings. The £7,881,700 fine follows a previous fine of nearly £2m in December 2013 for similar failings. Following...
FCA seeks retrial in insider dealing case
Following the Court’s decision to discharge the jury after they were unable to reach a verdict following an 8-week trial, the FCA has announced that it will pursue a retrial of Stuart Bayes and Jonathan Swann for...
PRA consults on model risk management principles for banks
PRA has issued a consultation which proposes that all firms adopt five proposed principles to establish an effective model risk management (MRM) framework. The five proposed principles are: Model identification and...
Harshil PatelPSR sets out the details for its work on card fees
Today, the Payment Systems Regulator (PSR) published its plans on how it proposes to carry out two market reviews focusing on card fees with a focus on Mastercard and Visa. One review looks at scheme and processing...
Outcomes of FATF plenary
The latest FATF Plenary meeting took place from 14-17 June. At it, FATF agreed to severely limit the role of Russia and its influence in FATF; approved a report to help the real estate sector better detect and prevent...
Treasury confirms BNPL proposals
Treasury has published its consultation response to its plans for regulating the buy-now-pay-later credit market. It has confirmed that: lenders offering BNPL will need to be authorised by FCA; lenders will need to...
FCA to delay PEMC review
FCA was due to carry out its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance and report by October. It has decided to delay its...
FCA update on market abuse and manipulation
Tackling market abuse is one of the FCA’s strategic priorities. Given recent press reports about the FCA’s approach, the FCA outlined the work it does to tackle insider trading and manipulation and to warn...
Eurogroup issues statement on the future of the Banking Union
Since its creation in 2014, the Banking Union has made significant progress on an EU single rulebook, concerning the establishment of a new European architecture for supervision and resolution, and on reducing risks. In...
Upper Tribunal confirms compensation and validation possible for credit breaches
In its recent decision, the Upper Tribunal drew a distinction between the compensation regime available to consumers under section 28(2) of FSMA and the enforceability of a regulated credit agreement under section 28(3)...
FPC withdraws mortgage affordability test
FPC has confirmed that it will withdraw its Recommendation on mortgage affordability with effect from 1 August. The current test specifies a stress interest rate for lenders when assessing borrowers’ ability to...
EU Council agrees position on proposed changes to Solvency II
The Council of the EU has agreed its position on the proposed amendments to the Solvency II Directive. The agreed position: should ensure a balanced review of the SII prudential framework in terms of capital...
Treasury Committee to question OFSI on sanctions effectiveness
The Treasury Committee is to question OFSI as part of its inquiry into effective economic sanctions on Russia. The session will take place on 22 June and is likely to include discussion on the challenges of implementing...
NCA updates SAR Glossary codes
NCA has published updated guidance on SAR Glossary Codes and Reporting Routes. The booklet follows the familiar form, providing: a checklist aimed at establishing whether the circumstances require immediate attention...
FCA to authorise largest funeral plan providers
FCA has published a list of 24 of the largest funeral plan providers who it intends to authorise with effect from 29 July, when funeral plan regulation takes effect. It is still considering applications from a number...
FCA tells lenders to support customers with the cost of living
FCA has written to over 3,500 lenders to remind them of the standards they should meet as consumers across the country are affected by the rising cost of living. Firms are expected to understand the changing pressures...
Government commits to Consumer Credit Act reform
The Government has announced its commitment to seeking reform of the rules contained in the Consumer Credit Act 1974 (the CCA) in an effort to modernise them, cut costs for business and ensure the rules are easier for...
Stephen WilsonTreasury Committee reports on future of financial services regulation
The Treasury Committee has warned the Government that, in looking at the opportunities for regulatory reform and considering what it can offer, it must take care to ensure that competitiveness does not become the...
FCA consults on strengthening access to banking
FCA has warned that some banks and building societies are not currently doing enough to properly understand the impact of branch closures, ATM conversions or service reductions and to keep their customers informed of...
FOS issues discussion paper on future funding model
On 14 June 2022, the FOS published a discussion paper on possible changes to its future funding model.. This follows the FOS’s commitment in their action plan to change and improve the organisation to deliver a...
Treasury feeds back on MLR changes
Treasury has published the feedback on its consultation from last summer on amendments to the MLRs. It has now analysed the responses to the consultation, made the legislative changes, and most of the changes will take...
PRA speech: competition, productive investment and Solvency II Review
Charlotte Gerken, PRA Executive Director – Insurance, has delivered a speech on the goals of competitiveness and productive investment and their role in the Solvency II Review. Highlights include: investment flexibility...
EBA publishes MLRO role guidelines
EBA has published its final guidelines on the role and responsibilities of the officer in charge of compliance with AML and CTF and of the management body of credit and financial institutions. As ever, the Guidelines...
Parliament launches post-Brexit regulatory divergence inquiry
The European Scrutiny Committee has launched an inquiry looking at the benefits and challenges to business and the UK economy of diverging from EU regulation that was copied into UK law post-Brexit. Financial services...
FCA portfolio strategy letters for insurance intermediaries
The FCA has published its most recent portfolio strategy letters for: Personal and Commercial Lines Insurance Intermediaries; and Lloyd’s and London Market Insurance Intermediaries (and Managing General Agents). Some...
Council adopts new rules on EU regulation of consumer credit
The Council has published its agreed position on the revision of the Consumer Credit Directive (Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and...
FCA fines guarantor lender for Principles and CONC breaches
The FCA has published the final notice issued to TFS Loans Ltd (in administration), a provider of guarantor loans. The FCA has fined TFS £811,900 for breaches of Principles 3 and 6 and CONC. It is now required to...
BoE publishes first resolvability assessment of major UK banks
In its first resolvability assessment of 2022, the BoE has found that, if a major UK bank were to fail today, customers would be able to access their accounts and business services as normal. The BoE found that...
Law Commission sets out proposals for corporate criminal liability reform
Following a request by the government to carry out a review of the law on corporate criminal liability, the Law Commission has now published ten options for reforming how companies are convicted of criminal offences...
FCA publishes quarterly consultation
The FCA’s latest quarterly consultation covers: a minor amendment to DEPP to reflect changes to the FCA’s decision-making processes implemented on 26 November 2021; amendments to the Compensation rules relating to...
Solvency II review updates
The PRA has launched the 2022 data collection exercise for the Solvency II review, primarily in support of the matching adjustment (MA) and fundamental spread (FS) calibration reforms. The exercise will cover three main...
Post-legislative assessment of the Fraud Act 2006
The Ministry of Justice has published a memorandum on the Fraud Act 2006 which provides an updated post-legislative assessment of the Act for submission to the House of Lords Select Committee in light of rising digital...
FATF publishes UK follow up report
FATF has carried out its latest assessment of the UK’s compliance with its Recommendations, following the 2018 report. FATF says the report from the UK on the actions taken since the last evaluation has enabled it...
OFSI updates sanctions enforcement guidance
OFSI has updated its guidance on sanctions enforcement and monetary penalties, which will take effect from 15 June 2022. The changes reflect the amendments to enforcement powers created in the Economic Crime...
FOS announces new Chief Executive and Chief Ombudsman
FOS has appointed Abby Thomas to the role of Chief Executive and Chief Ombudsman. She joins from Virgin Media O2 and was trained as a strategy consultant before working for a number of telecoms companies.
Treasury to introduce service provider “critical third party” regime
Treasury has been working with BoE, PRA, FCA and other stakeholders to develop a proposal to protect against the failure of key service providers. Over recent years, firms have become increasingly reliant on key service...
Pensions consumer journey feedback statement
On 7 June 2022, the FCA and the Pensions Regulator published a feedback statement (FS) to their May 2021 joint call for input on the behaviour of consumers at key points in the pension saving journey. The aim was to...
FCA to act to prevent CMC phoenixing
New rules being introduced by the FCA will prohibit CMCs from carrying out regulated claims management activity in certain circumstances on claims or potential claims to the FSCS, where the CMCs have relevant...
Court finds introducer in breach of FSMA but allows commission to stand
Kinled Investments Limited introduced an investor to Zopa Group Limited. Kinled claimed a £4.2m fee from Zopa for its intermediary work when the investor made a second investment, while Zopa counterclaimed £345,000 as...
LMA publishes useful Counsel’s advice on Russian Sanctions
The Lloyds Market Association (LMA) has published advice received from Counsel on coverage following the recent introduction of sanctions against Russia. The questions covered included whether insurance cover can be...
ESMA provides guidance on sustainability risks
On 31 May 2021, ESMA published a supervisory briefing setting out guidance on the integration of sustainability risks in the area of asset management. The guidance is aimed at national competent authorities (NCAs) to...
Court looks at meaning of “insurance”
A court has considered whether a law firm that offered an indemnity against adverse court orders when acting for claimants on a conditional fee basis was in fact carrying on insurance business. The defendant firm of...
ESMA speaks on retail funds
Verena Ross of ESMA has spoken on the priorities for EU retail fund investors. She focussed on: the PRIIPs review: she acknowledged that change is needed, particularly on the presentation of performance information, and...
Government consults on failure of Digital Settlement Asset firms
The Government is consulting on proposed amendments to the FMI Special Administration Regime to enable the management of a failure of a “systemic digital settlement asset firm” – including stablecoin...
CMA publishes report on lessons learned review of Open Banking remedy
On 27 May 2022, the CMA published the final report of an independent review of the “lessons learned” review of the Open Banking remedy, which is part of the package of remedies introduced following the...
Privy Council declines to extend the Quincecare duty to protect beneficial owners of funds
The Privy Council has handed down its decision in Royal Bank of Scotland International LLP (Bank) v JP SPC 4 and another [2022] UKPC 18, in which it confirmed that as a matter of law, banks do not owe a duty of care...
FCA publishes regulatory initiatives grid
The Financial Services Regulatory Initiatives Forum (FSRIF) has published its most recent biannual regulatory initiatives grid. The grid is designed to enable the financial services industry and other stakeholders to...
BoE speech on building operational resilience
Duncan Mackinnon, BoE Executive Director for Supervisory Risk Specialists, has delivered a speech on operational resilience. Mr Mackinnon considered the PRA’s expectations of firms in their implementation of the...
FCA proposes further reforms to the listing regime
FCA has published the feedback to its discussion paper on proposed reforms to improve the effectiveness of UK primary markets and the listing regime. In a second discussion paper, published alongside this feedback, the...
HM Treasury speech on credit unions reform
On 24 May 2022, in a speech delivered at the Association of British Credit Unions annual conference, John Glen, Economic Secretary to HM Treasury, announced reforms to the legislative framework for credit unions. In the...
FCA sets up BSPS information page
FCA has published a new page on its website in which it gives answers to requests for further clarification that it has received from respondents to its consultation on the British Steel Pension Scheme redress scheme...
ESMA publishes final report on investment firm best execution reporting
The European Securities and Markets Authority (ESMA) has published its Final Report on the review of the MiFID II framework on best execution reports by investment firms. MiFID II requires execution venues and...
FRC disciplines KPMG and Partner over Rolls Royce audit
The Financial Reporting Council has issued its final decision notice after its investigation into KPMG Audit plc and the Audit Engagement Partner, Anthony Sykes, in respect of the statutory audit of Rolls-Royce Group...
FOS secures up to £22 million in redress for consumers
FOS has published the results of a temporary outcomes code initiative launched in November 2021 As a result of the work done by the FOS, more than 90 businesses has resulted in 6,877 offers being made to customers and...
BoE publishes results of 2021 Biennial Exploratory Scenario
The BoE has published the results of the Climate Biennial Exploratory Scenario (CBES). The key findings included: Projections of climate losses are uncertain. UK banks and insurers have made progress but still need to...
PSR sets out proposals for further participation in CoP
In continuation of its delivery of Confirmation of Payee (CoP), the PSR is consulting on proposals to require a further c.400 PSPs to offer CoP to their customers (both as payers and payees). The PSR is proposing that...
Update: Measuring value for money in DC pension schemes
The FCA and the Pensions Regulator (TPR) have published the feedback they have received following their joint discussion paper on developing a framework for measuring value for money (VFM) in defined contribution (DC)...
High Court approves Amigo scheme of arrangement
The High Court has approved the scheme of arrangement that will provide redress for customers who were mis-sold loans by Amigo and who have raised a complaint. FCA has reiterated that the scheme is an improvement on the...
ESMA updates Q&As on crowdfunding
On 20th May 2022, the European Securities and Markets Authority (ESMA) has updated the Questions and Answers on the European crowdfunding service providers for business Regulation. The changes specifically address...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
Paypal withdraws from FOS voluntary jurisdiction
PayPal (Europe) S.a.r.l et Cie, SCA is withdrawing from FOS’ voluntary jurisdiction from 1 December 2022. The company became subject to the compulsory jurisdiction after Brexit when it joined the TPR. But the...
Government takes action to protect access to cash
The Government has announced new legislation that will protect access to cash. It will introduce measures in the forthcoming Financial Services and Markets Bill which will give FCA power to require the largest banks...
FCA speeds up “use it or lose it” powers
FCA has confirmed new rules that will make it easier for it to cancel permissions that firms are not using. Following a change in the law in the FS Act 2021 that allows it to streamline and shorten the process, FCA will...
Mastercard refused leave to appeal on “date of domicile”
The Competition Appeal Tribunal has refused Mastercard leave to appeal on the issue of what the “domicile date” should be in the Collective Proceedings Order granted in the collective action brought by...
FCA fines and bans firms and individuals over pensions advice
FCA has issued final notices to two firms in relation to their pension advice business and misleading the FCA. The fact pattern for both firms was similar, involving their use of a Pension Review and Advice Process...
FCA publishes issue 69 of Market Watch
On 17 May 2022, the FCA published Market Watch 69, its newsletter on market conduct and transaction reporting issues. The newsletter focuses on firms’ arrangements for market abuse surveillance, drawing on the...
FOS launches webpage on vehicle breakdown cover
FOS has published a new webpage which sets out information for firms on handling and resolving complaints about vehicle breakdown cover. The webpage explains the types of complaint FOS sees, provides a summary of how...
FCA asks for reports of sanctions evasions
A new page on the FCA website asks for reports of sanctions evasion by firms on any of FCA’s registered or by companies with UK listed securities. The new page gives details of how: individuals can report as...
ESMA consults on fund marketing notifications
ESMA is consulting on the information and form of templates for making notifications of cross-border management and marketing activities for UCITS and AIFs within the EU. It has drafted RTS and ITS for comment and...
FCA consults on expanding dormant assets scheme
On 13 May 2022, the FCA published a consultation paper on expanding the dormant assets scheme (the Scheme). The Scheme allows banks and building societies to pay dormant monies to an authorised reclaim fund which then...
FCA speaks on importance of insurance brokers
Sheldon Mills has spoken to insurance brokers of the important role they play and how FCA is looking to regulate them proportionately. Statistics show that 67% of general insurance business and 81% of commercial...
FCA refuses to authorise compliance firm to operate investment network
The FCA has refused to authorise Alexander Jon Compliance Consulting Limited (AJCC) to provide regulatory hosting services. AJCC applied to take responsibility for appointed representatives (ARs) carrying out regulated...
PSR takes action against banks for non-compliance with the IFR
PSR has taken action against NatWest, RBS, Ulster Bank and Coutts for failing to comply with the Interchange Fee Regulation. The banks incorrectly treated a number of cards as being ‘commercial’ when they should have...
EU Commission consults public on impact of PSD2 and open finance
The Commission has launched a public consultation seeking views on the impact that the Second Payment Services Directive (PSD2) has had on: innovation and competition in the market for payment services; the way in which...
New proposal for distance selling of financial services
Following its request for feedback last year, the European Commission has adopted reforms of the current EU rules concerning financial services contracts concluded at a distance. The proposal aims to simplify and...
EU reaches deal on DORA
The EU Commission, EU Council and EU Parliament have reached agreement on the Commission’s proposal for a Digital Operational Resilience Act (DORA). The new rules aim to harmonise and strengthen digital...
FCA highlights the risks of investing in crypto
The FCA has issued a statement following some recent social media posts regarding cryptoassets and NFTs. Whilst it cannot comment on individual products, it has warned consumers that there are no consumer protections...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
Queen’s Speech 2022 – FS elements
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
ESAs call for improvements to PRIIPs KID
The ESAs have issued a joint supervisory statement regarding the ‘What is this product?’ section of the KID for PRIIPs. It aims to improve the quality of descriptions provided by PRIIPs manufacturers and thereby...
FCA issues update on multi-occupancy buildings insurance
FCA has written to Michael Gove MP, Secretary of State for the Department for Levelling Up, Housing and Communities, to provide an update on the FCA’s review of the annual price increases for multi-occupancy...
Government sets out approach to APP scam reimbursements
HM Treasury has published a policy paper outlining how the government and PSR intend to improve the reimbursement of APP scam victims. The government intends to legislate in the Financial Services and Markets Bill to...
FMSB is changing its name
FMSB has announced that it is changing its name from the FICC Markets Standards Board to the Financial Markets Standards Board. It will continue to use “FMSB”. FMSB says the change will help support...
FCA bans 5 directors for causing losses to pension customers
The FCA has banned five directors of financial advice firms from working in financial services, after they caused significant losses to pension customers. The bans, and fines of over £1m, follow findings by the Upper...
FCA delivers speech on learning from the past
Nikhil Rathi, CEO at the FCA, spoke on learning from the last 30 years to face the next 30 years at the Chartered Institute for Securities & Investment (CISI) 30th anniversary dinner. Highlights include: the world...
PRA issues policy statement on trading activity wind-down
Following the four responses received to its consultation paper, the PRA has published its final policy on trading activity wind down. The policy statement is relevant to all PRA-authorised UK banks, their qualifying...
FCA launches new IFPR webpage
The FCA has launched a new webpage which sets out how to submit MIFIDPRU applications and notifications. It also includes information for IFPR firms about MIF returns.