FCA has published an updated version of its guidance on how it approaches a review of Part VII insurance business transfers. The update, which FCA consulted on last July, gives clarity on some points, and has been...
Category - Topics
Emma RadmoreTwo former finance chiefs found guilty of misleading investors
Two former finance chiefs at a London-listed IT firm have been found guilty of misleading investors after they falsified the company’s accounts. Timothy Coleman, the former chief financial officer of Redcentric, used...
FIN. TeamBoE, FCA, PRA and PSR conduct review of MoU for UK payment systems
The Bank of England, FCA, PRA and PSR are required, by the Financial Services (Banking Reform Act) 2013 to conduct an annual review of their Memorandum of Understanding (MoU) setting out the framework for their...
FCA gets BNPL firms to change contract terms
FCA has secured voluntary agreement from Clearpay, Klarna, Laybuy and Openpay to make changes to terms in their contracts. Although FCA does not yet regulate the contracts, it used its powers under the Consumer Rights...
Regulators due to give evidence on future of financial services
Sheldon Mills (Executive Director, Consumers and Competition at FCA) and Vicky Saporta (Executive Director, Prudential Policy Directorate at PRA) are due to give oral evidence at the Future of Financial Services Inquiry...
Emma RadmoreCMA writes to Barclays and Tesco Bank on Retail Banking Order breaches
The CMA has written letters to Barclays and Tesco Bank regarding their breaches of the Retail Banking Market Investigation Order 2017. Barclays’ breach relates to its failure to update a Service Quality Indicator...
ESMA Sustainable Finance Roadmap 2022-2024
ESMA has published a roadmap setting out three priorities for its sustainable finance work in 2022-24: Tackling greenwashing and promoting transparency; Building NCAs’ and ESMA’s capacities in the sustainable finance...
FCA consults on new rules for pensions providers
FCA is consulting on new rules requiring FCA regulated pension providers to connect and supply information about personal and stakeholder pensions to pensions dashboards. Pensions dashboards are secure digital...
Treasury publishes summary of UK funds regime responses
Treasury has published a summary of the responses it received to its call for input on the UK funds regime and what the next steps will be. Following comments, the government and FCA will put forward a number of new...
PSR publishes response to CoP consultation
The PSR has published PS22/1 Confirmation of Payee: response to consultation CP21/11 ending dual running. The document assesses the implementation of Phase 1 thus far, and introduces Specific Direction 11 which will...
FCA orders firm to remove influencer ads
FCA has published a second supervisory notice to confirm that it is not rescinding the directions imposed on Freetrade Limited in its first supervisory notice dated 14 December 2021. Freetrade must therefore immediately...
FCA clarifies next steps in LIBOR transition
The FCA has published a new webpage entitled ‘finalising LIBOR transition – achievements in sterling markets and what remains to be done‘. The FCA identifies that the final publication of sterling...
Bank of England launches second round of climate change stress test exercise
As promised, the Bank of England (Bank) has today launched the second round of the Biennial Exploratory Scenario (BES) exercise on financial risks from climate change. The exercise aims to explore what financial risks...
FCA speaks on capital market enhancement
Sarah Pritchard has spoken on FCA’s role and priorities in enhancing the UK’s capital markets. She focused on FCA’s transformation plan and how this would affect the way it regulates. It has welcomed...
PRA consults on definition of capital
The PRA has published a Consultation Paper which proposes updates to PRA SS 7/13 ‘Definition of capital (CRR firms). The proposed rules are set out in full in Appendix 3. This suggestion is part of the broader...
FSMA 2000 (Exemption) (Amendment) Order 2022 published
The Order amends the list of persons in Part IV of the Schedule to the FSMA 2000 (Exemption) Order 2001 to include Norges Bank, the Norwegian central bank. The amendment means that Norges Bank will be exempt from the...
Treasury launches search for new FCA Chair
Treasury has launched the recruitment campaign to appoint the next FCA Chair, replacing Charles Randell who is stepping down in spring 2022. Richard Lloyd, FCA’s Senior Independent Director, will be interim Chair...
Parliament launches new UK-EU financial services inquiry
Parliament has launched an inquiry to establish: the impact of Brexit so far on the financial services sector; the future of financial services trade with the EU in the absence of equivalence; and the impact of...
FCA publishes 2021 fin proms data
FCA has published its analysis of its data from 2021 relating to action it took against authorised firms breaching financial promotion rules. Key conclusions included: an increase in amendment and withdrawal of...
Treasury Committee calls for urgent economic crime measures
The Treasury Committee has published its long awaited report on Economic Crime. It is concerned that the Economic Crime Plan has not been as effective as hoped, and says the need for additional funding can’t just...
ESMA briefing: the use of tied agents under MiFID II
ESMA has published a supervisory briefing setting out: the supervisory expectations when firms appoint tied agents; and the supervisory expectations on firms using tied agents in their ongoing activities. The briefing...
Call for evidence on the UK-India trade negotiation inquiry
The House of Lords International Agreements Committee (IAC) launched an inquiry into the UK-India trade negotiations. The IAC is considering all aspects of the negotiations, but is particularly interested to hear how an...
ECON publishes draft opinion on consumer credits proposal
On 1 February 2022, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a draft opinion on the European Commission’s legislative proposal for a Directive on consumer credits to...
Government to bring forward Brexit Freedoms Bill
The Prime Minister has pledged to bring forward the ‘Brexit Freedoms’ Bill, which aims to end the current status of EU law, enabling it to be amended or removed more easily. This announcement is accompanied...
Government Committee launches inquiry on retained EU law
The European Scrutiny Committee has launched an inquiry into the future of retained EU law. This follows the Government’s announcement in September 2021 that it would conduct two reviews into the new category of...
Treasury and OFSI update on penalties for sanctions breaches
Treasury and OFSI have published updated guidance on monetary penalties for breaching financial sanctions. The guidance applies from 28 January 2022 and applies to all case where OFSI becomes aware of a potential breach...
EBA launches AML/CFT database
The EBA has launched ‘EuReCA’, the EU’s central database for anti-money laundering and counter-terrorism financing. The EBA will use the database to coordinate efforts by competent authorities to...
CMA writes to Monzo on RBO breach
The CMA has written to Monzo about its breach of the Retail Banking Market Investigation Order 2017. Monzo breached the Order when it failed to disclose its Monthly Maximum Charge in its Fee Information document between...
CMA writes to Tesco Bank acknowledging action taken to end breach
The CMA has written to Tesco Bank acknowledging the steps it has taken to end the breach of the Private Motor Insurance Market Investigation Order 2015 (the Order). Article 3 of the Order requires that any additional...
EIOPA consults on retail investor protection
EIOPA is consulting on retail investor protection in relation to the sale of insurance-based investment products (IBIPs). The proposals cover five different areas: Enhancing consumer engagement with disclosures...
FCA publishes guidance on competency and capability
The FCA has added a webpage to its website explaining the competency and capability requirements of heads of compliance and MLROs as SMF holders under the SMCR regime. The FCA notes that firms should carefully consider...
FOS looks at current initiatives
The latest edition of Ombudsman News reminds firms there is still time to respond to its consultation on its plan and budget, and at its wider work, including the wider implications framework and how it is working on...
FCA explains multiple-occupancy buildings insurance work
FCA has written to CEOs of insurance firms and brokers explaining the work it is carrying out in the insurance market for multiple-occupancy residential buildings. FCA wants to ensure residential leaseholders get...
BIS updates on 2022 work programme
BIS has announced that its Innovation Hub will launch new projects in 2022, including those relating to: central bank digital currencies (CBDCs); next generation payments systems; and Decentralised Finance (DeFi). The...
ESMA consults on MiFID 2 suitability
ESMA is reviewing its guidelines on the MiFID 2 suitability requirement, with a view to updating them in respect of sustainability. It is looking particularly at collecting client information on sustainability...
Regulators work to transform data collection
FCA is working with the BoE and the industry to transform how regulators collect data from the financial sector. FCA recognises the burdens of regulatory reporting and it finds that the data it receives is not always of...
PSR consults on card-acquiring services review
The PSR has published a consultation on remedies for its card-acquiring market review. This follows its report in November 2021 which identified the following three features of concern in relation to how the market...
2021 CPI shows little change in worldwide corruption levels
Transparency International has published the 2021 Corruption Perceptions Index, which shows a worldwide standstill on corruption levels. It is disappointed that the average score on the index is 43 (with 100 being the...
Regulators publish Wider Implications Framework
FOS, FCA, FSCS, TPR and MaPS (the Members) have jointly published a formal agreement for collaboration on matters of common interest: the Wider Implications Framework. The Framework establishes a structure to enable...
FCA proposes guidance for firms seeking to limit their liabilities
The FCA has identified an increase in firms developing proposals, such as Schemes of Arrangements, to deal with significant liabilities to consumers. This is particularly so in relation to redress liabilities. In...
Onerous or essential: expectations on banks to tackle APP fraud
In this article, Stephen Dilley and Rasmita Roy Chowdury look at the history and case law on duties of banks and APP frauds.
PRA calls for technical input on insurance stress test
PRA will be conducting an insurance stress test in both life and general insurance markets from May 2022. It is seeking, by 17 March, feedback on any aspect of the stress tests, and has published updated scenarios with...
CMA publishes updated governance arrangements for Open Banking
CMA has published amended arrangements setting out the composition, governance, budget and funding arrangements for the Open Banking Implementation Entity, following last year’s reports on the lack of appropriate...
FCA publishes 2022 retail banking model update
FCA has published its 2022 final report on competition in retail banking business models, following on from its 2018 reports. As a result of the 2018 reports there were a number of regulatory changes, specifically to...
Quincecare Duty – Supreme Court Appeal
The Court of Appeal decision in Stanford International Bank Ltd (in liquidation) v HSBC plc [2021] EWCA Civ 535 comes before the Supreme Court this week as SIB appeal the decision to strike out the loss claim it...
FCA updates competition powers guidance
FCA has updated its guidance on its competition powers and procedures. The guidance needed updating partly following Brexit and also to include FCA’s powers in relation to claims management and certain procedural...
FCA to impose requirements on non-compliant API
FCA has published its first supervisory notice of its intent to require an API authorised to provide money remittance services to cease doing so without prior written approval. It wants Probitas to cease all business...
FCA updates on borrowers in financial difficulty
The FCA launched the borrowers in financial difficulty (BiFD) project in March 2021, with the aim of ensuring firms continue to support borrowers facing financial difficulties. The project covers a range of retail...
FCA consults on fin prom rules for high risk investments
The FCA is consulting on strengthening its financial promotion rules for high risk investments including cryptoassets, and for authorised firms which approve and communicate financial promotions. The proposals, which...
Prepaid cards market hit by huge fines for cartel conduct
PSR has fined five companies – Mastercard, Allpay, Advanced Payment Solutions, Prepaid Financial Services and Sulion – a total of £33 million after finding them to be in breach of Chapter 1 of the...
OFSI and FCDO update on new look sanctions lists
OFSI has published a format guide for the Consolidated List of Designated Persons, while the FCDO has published samples of the new-look list in various formats.
FCA reminds TPR firms to meet its standards or face action
FCA has updated its website to remind firms under the TPR that they must comply with relevant rules, or else they may be asked to stop undertaking new business and have their permissions removed. Similarly, firms who...
Treasury to make rules on misleading crypto ads
Treasury has confirmed that the Government plans to legislate to address misleading cryptoasset promotions. It proposes to do so by brining the promotion of cryptoassets within the scope of financial promotions...
Government consults on CCP and CSD regulation
Treasury is consulting on how the future regulatory framework should look for central counterparties and central securities depositories. It follows up on a commitment to look at whether changes should be made in the...
EBA confirms Covid-19 related reporting and disclosure requirements will continue
In response to the ongoing Covid-19 pandemic, the EBA has confirmed that the Guidelines on the reporting and disclosure of exposures subject to measures applied in response to Covid-19, which were first adopted on 2...
Parliament launches commercial insurance inquiry
The Industry and Regulators Committee has published a call for evidence for a new inquiry into commercial insurance and reinsurance regulation. It is asking for evidence by 11 February on the roles of the regulators and...
FOS responds on action plan
The Treasury Committee has published a response from FOS, received in December, answering various questions the Committee had posed about FOS’ action plan. The letter addresses several issues, including: the...
FCDO publishes first UK annual sanctions report
The Foreign, Commonwealth and Development Office has published the UK annual sanctions report for 2021, which is the first report to detail the full extent of the UK’s autonomous sanctions since Brexit. In the...
FCA publishes new MIFIDPRU webpage
FCA has published a new webpage on how the MIFIDPRU Remuneration Code (SYSC 19G) applies to MIFIDPRU Investment firms. The webpage gives an overview of the Code and provides information on proportionality, performance...
PSR publishes new strategy
The PSR has published its new strategy which sets out its priorities and desired outcomes within the payments sector over the next 5 years. This follows the PSR’s consultation last year, for which it has now...
Parliament publishes report on central bank digital currencies
The Economic Affairs Committee has published its report on the potential for the UK to have a central bank digital currency. It has concluded that there’s no convincing case to have one. Although there could be...
PRA sets out supervisory priorities for 2022
The PRA has sent Dear CEO letters to PRA-regulated international banks, insurance firms and UK deposit-takers setting out its supervisory priorities for 2022. For banks, the PRA’s priorities relate to: Financial...
FCA and PRA consult on FSCS management expenses levy limit
The FCA and PRA are jointly consulting on the management expenses levy limit for the Financial Services Compensation Scheme (FSCS). This limit represents the total management expenses that the FSCS can levy on financial...
FCA updates on skilled persons reviews
FCA has published the figures for the skilled persons reviews commissioned in October – December 2021. There were 12 in total, of which 4 were on retail banking and payments firms and 3 on investment management...
PRA updates insurance business transfer SoP
PRA has published its feedback on responses to its consultation in CP 16/21 on insurance business transfers, and has published an updated Statement of Policy. There were not many respondents, and those who responded...
FCA updates on GI value reporting
FCA has updated its webpage on reporting of general insurance value measures to clarify which firm is responsible for reporting in various scenarios. The requirements are all set out in SUP 16.27.8 but FCA has set out a...
FCA to register first UK securitisation repositories
From 17 January 2022, public securitisations within the scope of the UK Securitisations Regulation must be reported to a Securitisations Repository (SR) that is registered and supervised by the FCA. The FCA has...
PSR publishes report on interbank payment systems
The PSR has published its latest annual access and governance report. This most recent report describes data and developments in access to interbank payment systems across both 2019 and 2020 due to the 2019 report...
FCA provides update on the Woodford investigation
The Treasury Committee has published correspondence with the FCA in relation the FCA’s investigation into the collapse of the LF Woodford Equity Income Fund. In its update letter, the FCA advises that all key...
EU to amend high risk third countries list
The European Commission has published a draft Regulation to amend the MLD list of high risk third countries. It proposes to: add to the list: Burkina Faso, Cayman Islands, Haiti, Jordan, Mali, Morocco, the Phillippines...
FCA still concerned about wholesale data
FCA is to continue to investigate the markets for benchmarks, indices, credit ratings and trading data after responses to its call for input highlighted concerns that there is limited competition in the markets and that...
FCA outlines new authorisation fee structure
The FCA has set out the new structure for authorisation application fees which takes effect on 24 January 2022. The current charges are being condensed into 10 simple pricing categories and the following additional...
EIOPA publishes report on application of the IDD
EIOPA has published its first report on the application of the Insurance Distribution Directive. The IDD requires EIOPA to produce such a report every 2 years, but EIOPA postponed the delivery of this report from 23...
MLR changes change dates and criteria for registrable trusts
Changes to the MLRs: change time limits for the registration of trusts, so that trustees now have until 1 September 2022 to register (extended from the original 10 March to give trustees a year after the TRS enabled...
FCA takes criminal proceedings against directors of unauthorised firm
FCA has commenced criminal proceedings against brothers who were directors of Collateral (UK) Limited, and who: dishonestly represented to investors that the firm was authorised as a P2P lender, knowing it was not;...
UK Finance responds on BNPL consultation
UK Finance has published its response to HM Treasury’s consultation on the regulation of BNPL products. The response shows that there is a consensus amongst UK Finance members: that BNPL products should be brought...
FCA to redo financial resilience survey
Firms should look out for a new version of the FCA Covid financial resilience survey. It has already run the survey 5 times and will now start a 6th review. Completion of the survey is mandatory, and FCA will be...
ESMA publishes guidelines on delayed disclosure under MAR
ESMA has published its final report into the review of the Market Abuse Regulation (MAR) guidelines on delayed disclosure. This follows its consultation on review of the MAR guidelines on delay in the disclosure of...
Insurance Europe responds to ESMA call for evidence
Insurance Europe has published its response to ESMA’s call for evidence on aspects of retail investor protection. Key points in the response include: insurance-based investment products (IBIPs) account for c.90%...
FCA updates TPR information for payment firms
The FCA has updated its webpage on cancelling temporary permissions to include information for payment services and e-money firms in the TPR or the supervised run-off (SRO) regime. FCA has also published new forms for...
FCA updates information on Complaints Commissioner reports
FCA has updated its website to provide links to Complaints Commissioner’s reports where the Commissioner has upheld complaints against the FCA, and has added 6 new reports dated 4 January 2022. The reports...
EBA publishes derisking opinion
EBA has published its opinion on the scale and impact of derisking and the steps regulators should take to tackle “unwarranted” derisking. Although EBA feels its guidance ought to help avert the practice, it...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
ESMA asks for support on reverse solicitation report
ESMA has written to the EU on reverse solicitation. The Commission had asked ESMA for its input on a report the Commission is to deliver on cross-border distribution of collective investment undertakings. ESMA has been...
FCA confirms end-2021 LIBOR changes
FCA has reminded firms that publication of 24 LIBOR settings has ended – that is, all euro and Swiss Franc, all overnight/spot next, 1-week, 2-month and 12-month sterling and Japanese yen and 1-week and 2-month US...
ESMA publishes call for evidence on DLT pilot regime
ESMA has published a call for evidence on distributed ledger technology (DLT). This forms part of the Regulation on a pilot regime for market infrastructures based on DLT. It is seeking input from stakeholders on the...
All-Party Parliamentary Group on Blockchain publishes 2022/23 programme
The All-Party Parliamentary Group (AAPG) on Blockchain has published its 2022/23 work programme entitled ‘ensuring industry and society benefit from the full potential of blockchain‘. The AAPG’s three...
EU reaches political agreement on DLT Regulation
The Council of the EU and European Parliament have reached a final compromise on a Regulation on a pilot regime for market infrastructures based on DLT. The regime: sets out the conditions for acquiring permission to...
JMLSG consults on syndicated lending changes
JMLSG is consulting on a proposed change to the Syndicated Lending chapter within part 2 of its guidance, to include a new paragraph on the risk-based measures that may be appropriate for each lender in a syndicate when...
FCA reminds firms and consumers of insurance renewal rule change
FCA has reminded firms and consumers of the new requirements taking effect from 1 January that will prevent insurers from quoting customers a higher price for renewing home or motor insurance than they would charge a...
FCA updates on PRIIPs
FCA has confirmed its intention to amend the UK PRIIPs RTS and handbook guidance to reflect the new end date legislated for in the Financial Services Act 2021 that allows UCITS providers to choose to supply either a...
ECB comments on European Parliament’s Banking Union Annual Report
The European Central Bank (ECB) Banking Supervision has published its comments on the input provided by the European Parliament as part of its “Resolution on Banking Union – Annual Report 2022”. The...
JMLSG comments on guidance on digital identities
The Joint Money Laundering Steering Group (JMLSG) has published an update on its website relating to the recent interest in digital identities and their use as part of AML/CFT procedures. It notes that it continues to...
ASA upholds complaints about promotion of unregulated cryptoassets
The Advertising Standards Authority (ASA) has upheld two separate complaints relating to the promotion of unregulated cryptoassets. The first related to a Facebook post and website for Arsenal Football Club PLC. ASA...
FCA prosecutes individual for failure to comply with Statutory Notice
In the first prosecution of its kind, the FCA has brought an action against a Mr Craig Whyte for failure to comply with a Statutory Notice issued under section 49 Regulation of Investigatory Powers Act 2000. Mr Whyte...
FCA fines BlueCrest Capital for conflicts of interest failings
The FCA has published a Decision Notice against BlueCrest Capital Management (UK) LLP (BlueCrest), setting out its decision to impose a £40,806,700 fine on the hedge fund. The FCA considers that BlueCrest failed to...
EBA publishes cover note for draft RTS on AML/CFT database
The EBA has published a cover note for its submission of the draft regulatory technical standards (RTS) under Article 9a(1) and (3) of Regulation (EU) No 1093/2010, setting up an AML/CFT central database. The database...
EESC publishes opinion on Commission’s Sustainable Finance Package
The European Economic and Social Committee (EESC) has published its opinion on the European Commission’s Sustainable Finance Package. The package consists of: the Communication from the Commission to the European...
EIOPA reports on IDD sanctions
EIOPA has published its second annual report on administrative sanctions and other measures imposed by national competent authorities during 2020 under the Insurance Distribution Directive (IDD). The authorities...
PRA fines Metro Bank following regulatory reporting failure
The PRA has fined Metro Bank plc a total of £5,376,000 following the Bank’s failure to act with due skill, care and diligence in relation to the regulatory reporting of its capital position, as well as for...