MEPs have agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including cryptocurrencies such as bitcoins. For those issuing and trading crypto-assets, the new...
Category - Topics
FIN. TeamPRA Occasional Consultation on minor changes
The PRA has issued a Consultation Paper setting out proposals to make minor amendments to UK Technical Standards (UKTS), PRA rules, supervisory statements, Legacy Supervisory Statements, and a Statement of Policy...
FCA responds on LCF Complaints
FCA has set out its response to the Complaints Commissioner’s report on its handling of the failure of LCF in respect of assessing complaints against it. It says it is sorry for the mistakes it made. It has...
Emma RadmoreEconomic Crime Act gets Royal Assent
The Economic Crime (Transparency and Enforcement) Act 2022 got Royal Assent on 15 March only 14 days after its introduction into Parliament. As noted in previous posts and articles, the main focus of the Act is: the...
European Commission adopts RTS on disclosure of firms’ investment policy under the IFR
Following the EBA’s publication of draft RTS last year, the European Commission has now adopted a Delegated Regulation containing RTS on the disclosure of firms’ investment policy under the IFR. Article 52...
Emma RadmoreJoint Statement from UK Financial Regulatory Authorities: Cryptoassets
On 11 March 2022, OFSI, the FCA and the Bank of England issued a joint statement on sanctions and the cryptoasset sector. The statement comes amid the conflict between Russia and Ukraine to ensure all firms are...
Treasury and FCA on investing in Russia
The Chancellor has called on all UK firms to think very carefully about any investments that might support the Putin regime, and has welcomed commitments to divest away from Russian assets. The Government recognises...
“Market share test” update on commodity derivatives ancillary activities exemption
Article 2(1)(j) of MiFID II exempts firms trading in commodity derivatives, emission allowances and emission allowance derivatives from authorisation as a MiFID investment firm if they fulfil certain criteria. Firms are...
CAT determines the ‘domicile date’
CAT has published its Judgment giving further guidance on the ‘domicile date’, which is the date specified in a CPO. The domicile date operates to determine the persons who fall within the class definition...
FCA warns on illegal crypto ATMs
FCA has warned operators of crypto ATMs that they must shut down their machines. Any firm operating a crypto ATM in the UK must be registered under the MLRs, but no firm that does operate one has yet been approved by...
FCA creates Ukraine-focussed webpage
FCA has created a new webpage to bring together its various resources and publications relating to the Russian invasion of Ukraine. It includes FCA’s notices about the effect of the invasion on financial markets...
AML Levy Regulations made
The Economic Crime (Anti-Money Laundering) Levy Regulations have been made and will take effect on 1 April. The Regulations: specify the FCA, Gambling Commission or HMRC as appropriate as the collection agencies; and...
Insurance business transfer scheme permitted
An application under Part VII of FSMA 2000 was made for sanctioning an insurance business transfer scheme which involved the transfer of insurance policyholders from Assured Guaranty (Europe) PLC (in the UK) to Assured...
FCA publishes lender portfolio letters
FCA has published its most recent porfolio strategy letters for: retail mortgage lenders; non-bank lenders; and building societies. Common themes in the letters are: that the response to the pandemic has shown FCA and...
Sanctions and Economic Crime update 11 March
Over the last couple of days: OFSI has published a blog on the evolving Russian sanctions, including calling out the intent of the Economic Crime bill to introduce a strict civil liability test, and confirming that it...
ESMA publishes peer review on cross-border supervision
ESMA has published its peer review on cross-border supervision of investment firms, and. It found many shortcomings, and says that “home” regulators need to make significant improvements to their approach...
High Court rules on application of CCA ‘business purpose’ exemption to multi-borrower loans
In Campbell v Tyrrell & Ors [2022] EWHC 423 (Ch), the high court considered the application of the ‘business purpose’ exemption in s.16B(1) of the Consumer Credit Act 1974 (the “CCA“) to a...
Stephen WilsonGovernment launches consultation on online advertising
The government has launched its Online Advertising Programme consultation which will review the regulatory framework of paid-for online advertising in a bid to improve transparency and accountability and tackle harmful...
Harshil PatelGovernment outlines priorities for the digital regulatory landscape
Following the publication of the Plan for Digital Regulation last summer, the government has written to the Digital Regulation Cooperation Forum (DRCF) setting out its priorities for the digital regulatory landscape and...
Fraud Act Committee launches call for evidence
The House of Lords Committee on the Fraud Act 2006 and Digital Fraud has launched a call for evidence on what measures should be taken to tackle the increase in fraud cases. In particular, the Committee would like to...
Court of Appeal judgment on emoney safeguarding
The judgment in relation to the treatment of certain funds held by Ipagoo, a failed EMI, has been handed down. The joint administrators of the firm had applied for directions as to whether certain funds were held on...
Corporate transparency and Companies House reforms
Read our article on the BEIS White Paper on the plans to enhance Companies House’s role and increase transparency of UK corporate entities.
Suzanne GadoEconomic Crime Bill now in Lords as Russian sanctions further updated
The Economic Crime (Transparency and Enforcement) Bill has started its passage through the House of Lords, and the Bill as brought from the Commons has been released. Meanwhile, the Russia sanctions regulations have...
FCA portfolio letter for Credit Unions
The FCA has published a portfolio letter to Credit Union Boards setting out the usual key risks of harm that are present for Credit Unions, their members and the markets in which they operate. The letter asks firms to...
FCA gives guidance on operational and cyber resilience in light of invasion of Ukraine
FCA’s new webpage looks at points firms should consider about their operational and cyber resilience following the Russian invasion of Ukraine. It recommends that firms: review the National Cyber Security Centre...
Economic Crime Bill nears end of Commons stage
The Economic Crime (Transparency and Enforcement) Bill is nearing the end of its stage in the Commons, and is at 3rd reading. 47 pages worth of amendments have been tabled to date.
OFSI updates sanctions guidance for Russia
OFSI has published an update to its financial sanctions guidance, specifically addressing the range of sanctions now introduced against Russia. The guidance explains the scope of the sanctions and available licensing...
FATF updates recommendation 24
At FATF’s latest meeting, it adopted amendments to Recommendation 24 and its interpretive note. The recommendation now requires a multi-pronged approach to the collection of beneficial ownership information...
FCA comments on Amigo Scheme proposal
FCA has published a letter that it wrote to Amigo Loans confirming that it does not plan to attend the hearing to oppose the proposed Scheme of Arrangement. It thinks the new proposals are preferable to the ones in the...
Sanctions and economic crime update 4 March
Late on 3 March and on 4 March: FCDO and OFSI confirmed the extension of sanctions to Russian oligarchs Alisher Usmanov and Igor Shuvalov; and BEIS published an updated factsheet on the register of overseas entities;...
FCA consults on miscellaneous rule changes
FCA’s latest quarterly consultation covers: proposed changes to PERG in respect of the MiFID 2 ancillary activities test; making collective investment portfolio managers subject to the same research and inducement...
Read our article on overseas entities register
We have written an article giving more detail on the proposals in the Economic Crime Bill finally to implement the registry of beneficial ownership information for foreign entities holding property in the UK, and the...
PSR issues new Specific Direction 12 to LINK
The PSR has given Specific Direction 12 (SD12) to Link Scheme Holdings Ltd (LINK) allowing them to maintain the broad geographic spread of the UK’s free-to-use (FTU) cash machine network. The new Direction follows...
Former Redcentric CFO sentenced to five and a half years imprisonment
Following the guilty verdict back in February of the two former finance chiefs at a London-listed IT firm found to be misleading investors after they falsified the company’s accounts, Tim Coleman has now been sentenced...
FCA updates on Green FinTech Challenge 2021
FCA has accepted 10 firms into its Green FinTech Challenge 2021 which aims to enable the FCA to take a more active role in driving innovation in products and services that will aid the transition to a net-zero economy...
FCA publishes Consumer investments data review
The FCA has published its third Consumer investments data review. The review provides an overview of FCA’s work to protect consumers from investment harm between April and September 2021. This follows FCA’s...
LSB sets its agenda for 2022
The latest LSBulletin outlines some of the LSB’s key areas of focus for 2022, including: Contingent Reimbursement Model Code (CRM Code) for APP scams – the LSB will be conducting follow up work from its previous...
UK to target provision of insurance to Russian companies with next sanctions round
The new round of UK economic sanctions will prevent Russian companies in the aviation and space industry from accessing the UK insurance sector. The measures will apply to insurance and reinsurance services accessed...
FCA notes impact of invasion of Ukraine on financial markets
FCA has noted the multiple impacts that financial markets will feel following the Russian invasion of Ukraine itself and the wide range of sanctions imposed by numerous jurisdictions on Russia, Russian individuals and...
PRA speaks on insurance supervisory priorities
Charlotte Gerken of the PRA has spoken of its supervisory priorities for the sector during 2022. She looked at: climate change diversity and inclusion operational resilience: she commented in particular that, in...
FCA launches claims management companies fees cap
FCA has introduced restrictions on claims management companies (CMCs) to prevent excessive charging of fees to consumers owed compensation from financial services firms. The cap on charges is dependent on how much...
Transparency International comments on economic crime measures
Transparency International has welcomed that publication of the Economic Crime Bill as an opportunity to be a major boost to Britain’s defences against illicit wealth. However, there are some things it thinks...
Treasury publishes prudential consultation outcome
Treasury has published the outcome of its consultation on implementation of the IFPR and Basel 3. The latest update looks at how to amend the definition of “investment firm” in s48D Banking Act 2009 to...
Finance Act 2022 gets Royal Assent
The Finance Act 2022 has achieved Royal Assent, and includes the economic crime levy. It sets out: the powers of FCA, HMRC and the Gambling Commission to collect it; how to assess whether a person is subject to the...
ASA successfully challenges crypto ads
The ASA challenged an ad for Floki Inu, a cryptocurrency, which was made via a poster displayed on the Tube in November 2021. The poster had a cartoon dog in a Viking helmet with text saying “Missed Doge. Get...
FCA updates on SCA expectations
FCA has updated its webpage on SCA to explain the changes to the SCA-RTS in respect of the new exemption that means customers will not need to reauthenticate when accessing account information through a TPP, if ASPSPs...
Sanctions updates from 2 March
On 2 March, various UK government agencies and regulators released a number of statements and extra measures brought in on 1 March: the PSR announced that is was working with all relevant agencies to help make sure the...
Government publishes Prospectus Regime Review Outcome
Following a consultation on the UK Prospectus Regime, the Government has today published the Prospectus Regime Review Outcome. The document sets out important reforms to the UK’s regime for the public issuance of...
Treasury publishes response to Wholesale Markets Review consultation
HM Treasury has published the response to the Wholesale Markets Review consultation, setting out the feedback received and outlining how the government plans to take forward the various proposals. A full breakdown of...
FCA discontinues action against individual for failure to comply with statutory Notice
The FCA has issued a notice of discontinuance in relation to the prosecution of Craig Whyte. Mr Whyte had previously been charged with an offence of failing to comply with the a statutory Notice issued under Section 49...
Treasury responds on mini-bonds
Treasury has published its response to the consultation on the regulation of mini-bonds (or NTDS – non-transferable debt securities). Most respondents agreed the instruments should be brought into regulation, but...
Treasury makes further changes following introduction of IFPR
HM Treasury has published The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2022. This draft...
OFSI updates asset freeze lists
OFSI has updated its list of all asset freeze targets and has also published separately an updated list of persons named in relation to financial and investment restrictions related to Russia, together with guidance on...
Government publishes economic crime combatting measures
As promised, the Government has published: The draft Economic Crime (Transparency and Enforcement) Bill; a factsheet on the Register of Overseas Entities; and a white paper on corporate transparency and register reform...
FPC publishes consultation to withdraw affordability test
On 28 February 2022, the Financial Policy Committee (FPC) published a consultation to seek the views of interested parties on the proposal to withdraw the affordability test. The consultation, in particular, asks the...
BBRS publishes Post-Implementation Review
The Business Banking Resolution Service (BBRS) has published the first part of its Post-Implementation Review (PIR). The aim of this review was to assess how well the BBRS has delivered the recommendations contained in...
FCA makes new rules
The FCA’s latest Handbook Notice confirms changes to: apply the rules set out in the Funeral Planning Conduct of Business (FPCOB) sourcebook to funeral plan providers selling their own plans directly to customers...
Economic Crime Bill, Register of Overseas Entities and Companies House reform – at last
The Home Office has announced it is to bring forwards a new Economic Crime (Transparency and Enforcement) Bill on 1 March. The bill is to help NCA prevent foreign owners from laundering money in UK property and to make...
FCA fines Barclays over collapsed payment firm oversight
FCA has fined Barclays £783,800 for oversight failings in its relationship with Premier FX, a payments firm which is in liquidation. Barclays was Premier’s sole UK banker. FCA found that Barclays failed to make...
UK and Singapore sign new digital trade deal
Following its agreement in principle, on 25 February 2022, the International Trade Secretary joined her counterpart in Singapore and signed the trade deal- the Digital Economy Agreement (DEA) – that will help...
EBA publishes final Guidelines on limited network exclusion
The European Banking Authority (EBA) has published its final Guidelines on the limited network exclusion under the Payment Service Directive (PSD2). The Guidelines clarify how competent authorities should assess whether...
FCA launches webpage on branch and ATM closures
The FCA has published a new webpage on bank branch and ATM closures or conversions. The webpage sets out examples of good and poor practice that the FCA has seen when supervising firms planning branch or ATM closures...
OFSI updates Russian sanctions
Unsurprisingly, OFSI is constantly updating the sanctions lists in respect of Russia. On 24 and 25 February it updated the list of designated persons, which as at 25 February ran to 190 individuals and 59...
Ombudsman News features data, diversity and storm damage
The latest edition of Ombudsman News features items on the latest complaints data and the FOS diversity, inclusion and wellbeing reports featured in other posts, and also notes that FOS often sees complaints from...
Dormant Assets Act gets Royal Assent
The Dormant Assets Act got Royal Assent on 24 February, The Act expands the scope of “dormant assets” that has encompassed cash in bank and building society accounts since 2008 to include a greater range of...
Employment tribunal orders reinstatement of dismissed trader
An employment tribunal has determined an application for reinstatement in Bradley Jones v JP Morgan Securities plc in favour of the applicant. Mr Jones was a financial analyst and cash equities trader employed by JPM...
Latest Financial Services Act 2021 Commencement Regulations Published
Treasury has published the latest commencement regulations bringing into force provisions of the Financial Services Act 2021. In particular, the The Financial Services Act 2021 (Commencement No. 4) Regulations 2022...
FOS publishes latest quarterly complaints data
The Financial Ombudsman Service (FOS) has published its latest quarterly data on complaints in relation to financial products. This data covers the period October to December 2021, and is available in full as a...
Kalifa Review – one year on – open letter from FinTech CEOs
One year on from the Kalifa review, the Innovate Finance membership community (FinTech CEOs and founders) have published an open letter expressing their contentment in seeing action taken to implement a majority of the...
Pay.UK develops new data model
Pay.UK has developed a new tool in collaboration with UK Finance to help prevent Authorised Push Payment (APP) fraud. The new ‘logical data model’ will be a useful foundation for categorising relevant customer data to...
FSCB publishes report on inclusion survey
The Financial Services Culture Board (FSCB) and Financial Services Skills Commission (FSSC) have published a report on their survey of inclusivity in the financial services sector. The report contains data from the...
FCA Portfolio letter to credit rating agencies
FCA has published a portfolio letter setting out the risks of harm in the credit rating agency sector, and its regulatory expectations. This is the first of its letters aimed at the sector, which it supervises under the...
FCA reinforces sanctions expectations
In the light of the tranche of sanctions imposed on Russia, FCA has reminded firms it expects them to have established systems and controls to counter the risk they they might be used to further financial crime, and...
FCA responds to APPG letter before claim
The FCA has responded to a letter before claim under the pre-action protocol for judicial review from the All Party Parliamentary Group on Fair Business Banking (APPG). APPG’s letter before claim refers to the...
Treasury Committee hears from financial regulators
As part of its inquiry into the Future of Financial Services post-Brexit, the Treasury Committee held a session on Monday 21st February with representatives from the PRA, FCA and the Bank of England. The aim of the...
EBA updates methodology for assessing equivalence
The Capital Requirements Regulation (CRR) provides that certain risk exposures to entities located in third countries can be treated, for risk-weighting purposes, as exposures in EU Member States, provided that the...
New courses for compliance professionals
We are excited to have agreed with the Compliance Register to present at several key courses over the coming months. We will be presenting on: financial crime prevention SMCR the regulatory regime financial promotions...
EBA publishes report on responses to 2020 Luanda Leaks
The EBA has published its report on its assessment of competent authorities’ responses to the 2020 Luanda Leaks. The Luanda Leaks involved the International Consortium of Investigative Journalists (ICIJ)...
OFSI updates sanctions
OFSI has published a new set of financial sanctions relating to Russia, effective from 22 February, together with updated guidance. It amended existing entries in relation to 2 entities and added 5 more entities and 3...
FCA comments on crypto-provider controllers
FCA has commented on recent statements made by Bitpanda announcing its acquisition of Trustology Limited. It comments that the acquisition has made Bitpanda (an EU digital assets service provider) the new beneficial...
Parliament publishes UWO briefing
The House of Commons Library has published a briefing paper on unexplained wealth orders. The paper looks at the background to the introduction of UWOs in the Criminal Finances Act 2017, and says that only 9 orders have...
Report says single market for investment funds not working
A report from the European Court of Auditors says that not all the ambition of the EU investment funds single market directives has been achieved. It says cross-border activities are still rate, supervision across...
Treasury sets out bold reforms to Solvency II
Economic Secretary to the Treasury, John Glen MP, has delivered a speech to the Association of British Insurers Annual Dinner which set out bold reforms to Solvency II. The proposed reforms include: a substantial...
Tribunal upholds FCA’s Decision Notice
HMCTS (Tribunal) has dismissed two applications made by an applicant against the Financial Conduct Authority (FCA). The FCA had given a Decision Notice to Przemyslaw Soszynski t/a Phenix Consultancy (Applicant) refusing...
LSB publishes thought piece on supporting customers
The Lending Standards Board (LSB) has published a thought piece looking at the UK’s cost of living crisis and how firms can support customers in pre-arrears and financial difficulty. The thought piece identifies...
Commission consults on improving retail investing in the EU
The European Commission has launched a targeted consultation on a new approach to retail investments in the EU. The consultation builds on the 2021 consultation on the Commission’s retail investment strategy for...
OFSI updates penalties table
OFSI has updated its table of penalties imposed for breach of financial sanctions restrictions and requirements to include a fine imposed over a year ago, but just publicised, The payment services provider in question...
Amended MLD4 high risk list published in OJEU
The new list of High Risk third countries for the purposes of EU AML legislation has been published in the Official Journal. Burkina Faso, the Cayman Islands, Haiti, Jordan, Mali, Morocco, the Philippines, Senegal and...
JMLSG confirms syndicated lending update
JMLSG has published the finalised revisions to the syndicated lending chapter in Part II of its guidance, following its December 2021 consultation. The new content confirmed that in a low risk scenario, each lender will...
FCA warns “no change of control without approval”
FCA has updated its website to highlight the consequences of the significant increase in change in control notifications it is currently receiving. It is currently taking around 2 months for FCA to allocate a case...
EU Council opines on AML measures
The Council of the EU has published opinions on the proposals for an AML Authority and the proposals for AMLR1 and AMLD6. The ECB has welcomed the package, and is ready to cooperate with the AMLA. It notes the criteria...
Tribunal considers crypto registration refusal
The Upper Tribunal has considered the FCA’s decision not to register Gidiplus Limited under the MLRs and the firm’s application for a suspension application to allow it to continue business pending an appeal...
UK Finance publishes response on Consumer Duty
UK Finance has published its response to the FCA’s second consultation on proposals for a new Consumer Duty. UK Finance welcomes the changes FCA has made since its first consultation (in particular dropping the...
FSB reports on financial stability risks in cryptoasset markets
The FSB has published a report assessing the risks to financial stability from cryptoassets. The report examines the developments and associated vulnerabilities relating to cryptoasset markets which it considers could...
ASA publishes guidance on advertising cryptoassets
Advertising and marketing associated with cryptoassets is subject to the UK advertising rules policed by the Advertising Standards Authority. New guidance has been issued to assist businesses with complying with these...
FCA updates on funeral plans
The FCA has published a statement on assessing authorisation applications from funeral plan providers. The assessment process is to ensure that: firms sell products which offer fair value, meet consumer needs and are...
MLR changes made in respect of trusts
Changes to the MLRs that take effect on 9 March will extend various deadlines in respect of beneficial ownership of trusts, and to amend the lists of excluded trusts. The main deadline for registration of relevant...
FCA updates on GI value measures
FCA has updated its webpage on general insurance value reporting to clarify what firms are expected to report in respect of legal expenses and vehicle breakdown products. For these products, firms are not required to...
Final report: London Capital & Finance
The Complaints Commissioner has published its final report on the FCA’s oversight of London Capital & Finance plc (LCF). The report splits the complaints about FCA’s regulation of LCF into three...
ECON publishes draft legislation on transfer of funds and cryptoassets
The European Parliament (ECON) has published draft legislation on the proposal for a regulation on information accompanying transfers of funds and certain cryptoassets. The draft sets out the suggested amendments to the...