The European Payments Council (EPC) has published a press release reminding Single European Payments Area (SEPA) payment scheme participants to comply with the EU Revised Wire Transfer Regulation (2015/847)...
Category - Topics
FIN. TeamFCA writes dear CEO letter to BSPS advisers
The FCA has published a dear CEO letter addressed to firms who advised British Steel Pension Scheme (BSPS) members between 1 March 2017 and 31 March 2018. The letter identifies the high levels of unsuitable pension...
FCA extends 10% depreciation notification waiver
FCA has extended the temporary measures it put in place in March 2020 that mean it will not take action against firms who breach the requirement to issue 10% depreciation notices to retail investors under COBS so long...
Emma RadmoreHMRC reports on MLR non-compliance
HMRC has published its regular report on business that have failed to comply with the MLRs. Among the failings and fines are: a fine on BNY Mellon Corporate Trustee Services Limited for failing to apply for registration...
JMLSG updates guidance
JMLSG has confirmed the changes it proposed to chapter 5.7 of part 1 of its guidance on monitoring customer activity and published one further clarificatory guideline. It has now submitted the updated wording to...
PRA fines Standard Chartered for governance and transparency failings
PRA has fined Standard Chartered Bank £46.55m for: failings in its regulatory reporting governance and controls: PRA had imposed a temporary additional liquidity expectation on the bank in late 2017. Over a 14 month...
Government updates on anti-corruption strategy
The Government has highlighted the action taken in the third year of the UK’s current 5 year anti-corruption strategy. During 2020, key initiatives included: reducing the insider threat in high-risk domestic...
FCA updates on rule changes
FCA’s latest Handbook Notice confirms, among other things: changes to SUP to clarify what FCA expects to see reported on form FIN-A changes to LIBOR rules (previously reported in FIN) and changes to the value...
EU updates on PRIIPs
The Council of the EU ha published details of the extension of the transitional arrangement that allows UCITS to choose whether to use the KID or the KIDD. The transitional arrangement was due to end in July 2022, but...
UK-US Financial Regulatory Working group holds fifth meeting
The fifth meeting of the UK-US Financial Regulatory Working group was held on 15 December 2021 and focussed on the following 7 themes: international and bilateral cooperation; sustainable finance; crypto-assets and...
UK and Australia sign historic trade deal
The UK and Australia have signed a trade deal which sets new global standards in digital services and creates new work and travel opportunities for residents of both nations. The deal, which was agreed in principle in...
PSR extends ATM Direction
The PSR has extended Specific Direction 8, which requires LINK to do all it can to fulfil its commitment to maintain the broad geographic spread of free-to-use ATMs. Specific Direction 8, as varied by Specific Direction...
EIOPA publishes results of Insurance Stress Test
EIOPA has published the results of its 2021 Insurance Stress Test in which it assessed the industry’s resilience to a prolonged COVID-19 scenario in a “lower for longer” interest rate environment. To...
FCA publishes IFPR newsletter
The FCA has published a newsletter on IFPR which, among other things, reminds firms that the obligation to collect certain data in connection with the firm’s SNI status and K-factor calculations has begun (see...
Emma RadmorePRA updates on Solvency II reporting review
The PRA has published a policy statement (PS29/21) on phase 1 of its review of reporting requirements under Solvency II. In light of the feedback received on its proposals, the PRA has made a number of changes (set out...
PRA publishes policy statement on identification of MRTs
The PRA has published a policy statement (PS28/21) on the identification of material risk takers (MRTs) for the purposes of its remuneration regime. Following the feedback received on its proposals, the PRA has: made a...
PSR updates Specific Directions on Pay.UK
The PSR has published its decision on varying Specific Directions 2 and 3 on Pay.UK. This follows the PSR’s consultation earlier this year in which it consulted on proposed changes to Specific Directions 2 and 3...
BoE publishes inventory of senior manager responsibilities
The Bank of England (BoE) has published an inventory of senior manager responsibilities. This publication follows feedback on the BoE’s ‘Evaluation of the Senior Managers and Certification Regime...
FCA fines HSBC for AML transaction monitoring failings
FCA has fined HSBC £63.9m for failings in its AML transaction monitoring process between March 2010 to March 2018. FCA found that the bank did not: until 2014, consider whether the scenarios used to identify ML/TF...
CLLS considers Fin Prom onshoring
The City of London Law Society has published a letter written to the Treasury in July expressing concerns about how the “onshoring” of the Financial Promotion Order post-Brexit has affected the exemptions...
FCA fines for conflicts and gift & entertainment breaches
FCA has fined GAM International Management Limited £9.1m and Timothy Hayward £230,037 for issues relating to conflicts of interest and gifts and hospitality. Both the firm and Mr Haywood agreed all issues and qualified...
Ombudsman News looks at BI “at the premises” complaints
The latest edition of Ombudsman News from FOS looks not only at its plan and consultation (which FIN has covered separately) but also at complaints it has looked at relating to “at the premises” cover in...
FOS consults on strategic plans and budget for 2022/23
The Financial Ombudsman Service (FOS) has published its annual consultation on its proposed plans and budget for the upcoming financial year (2022/23). The consultation includes information relating to: The volume of...
PRA publishes guidance on changes to reporting requirements
The PRA has published a statement explaining how the changes it has made to a number of banking regulatory reporting requirements are being implemented in the CRR reporting modules. The PRA has incorporated the entirety...
FCA writes to Treasury Committee following Swift Review
The FCA recently published an independent “lessons learned” review (the Swift Review). The FCA has now written a letter to the Treasury Committee, noting that it accepts almost all of the Reviewer’s...
UK banks join forces to preserve access to cash
Further to their commitments to continue to preserve access to cash for consumers and businesses, the UK’s major retail banks, consumer groups, Post Office and LINK have agreed to collaborate to share services...
PRA publishes feedback on UK prudential framework
The PRA has published a feedback statement summarising the responses to Discussion Paper (DP) 1/21, which set out the PRA’s proposals for developing a simpler prudential framework for non-systemic banks and...
PRA updates on designating investment firms
The PRA has published policy statement 27/21 which sets out: the PRA’s updated Statement of Policy – designation of investment firms for prudential supervision by the PRA (at Appendix 1); and the instrument making...
Treasury Committee updates on Nat West correspondence
Following the sentencing in the Nat West MLR prosecution, the Treasury Committee has published further correspondence between it and the FCA. The FCA has now responded to the Committee’s previous correspondence...
Treasury consults on amending Fin Prom exemptions
20 years since the FPO was made, and more than 15 since it was amended to facilitate exemptions from the financial promotion restriction for high net worth and sophisticated individual investors, Treasury is consulting...
BoE publishes Financial Stability Report
The December 2021 Financial Stability Report concludes: recovery from the pandemic continues, and uncertainty also continues, but UK banks’ capital and liquidity positions remain strong; the FPC is keeping an eye...
Structure of sanctions lists to change
OFSI and the FCDO have announced that the structure and format of the UK sanctions list will change in February 2022. The changes will include: alias strength for UN listings standardised data wherever possible new...
FCA publishes review of supervisory intervention on IRHPs
The FCA has published an independent “lessons learned” review (the Swift Review), which it commissioned John Swift QC to produce, into the supervisory intervention on interest rate hedging products. The...
PRA updates on the 2022 cyber stress test
The PRA has announced that it will invite a number of firms to participate in a voluntary cyber stress test. The stress test will focus on a severe data integrity incident as the disruption scenario and will test...
Court finds no breach of COBS Rules by spread betting firm
The High Court has ruled on an application for, amongst other things, damages for alleged breaches of the COBS 2.1 (Client’s Best Interests) and COBS 11.2.1 (Best Execution). The Claimant had opened an Account...
FSB considers “safe remittance corridors”
FSB has published a World Bank/IMF report which proposes a draft methodology for and framework for assessing remittance corridors which could be considered “safe”, in an effort to improve cross-border...
NatWest fined £264.8m for AML failings
The long awaited sentencing following the conviction of NatWest on three offences of failing to comply with the MLRs resulted in the announcement of a fine on the bank of £264,772,619.95. The bank admitted to breaching...
LSB publishes Access to Banking Standard recommendations
The LSB has published the report of its review of the Access to Banking Standard. The report makes the following recommendations: oversight of branch closures and changes in branch service provision, currently provided...
FCA issues final LIBOR publications for end-2021
FCA has reminded firms of the remaining actions they need to take as the end of the year approaches and, with it, the cessation of calculation of most LIBOR rates. From 1 January 2022, 24 of the 35 LIBOR settings will...
FCA and PRA publish dear CEO letter to global equity finance businesses
The PRA and FCA have jointly published a Dear CEO letter regarding the supervisory exercise which they undertook following the default of Archegos Capital Management. The default resulted in over $10 billion of reported...
UK agrees digital trade deal with Singapore
The UK has secured an agreement in principle on a Digital Economy Agreement (DEA) with Singapore. The agreement is the first digitally-focussed trade agreement signed by a European nation and was agreed after only six...
FCA publishes update on Independent Review implementation
The FCA has published a report providing an update on the implementation of recommendations from two Independent Reviews, these being: the Independent Investigation into the Financial Conduct Authority’s...
EBA publishes draft guidelines on remote onboarding
EBA is consulting on draft guidelines for the use of remote customer onboarding solutions under MLD4. It aims to set common EU standards on developing and implementing sound, risk-sensitive initial CDD policies and...
UK Finance updates Financial Abuse Code
UK Finance has published an updated version of its Financial Abuse Code of Practice. The Code is a voluntary one, updated to reflect the industry’s understanding of victim-survivor needs. It is designed to align...
ECJ delivers ruling on interpretation of PSD2
In Vodafone Kabel Deutschland GmbH v Bundesverband der Verbraucherzentralen und Verbraucherverbände – Verbraucherzentrale Bundesverband e.V., the Oberlandesgericht München (Higher Regional Court – Munich) made a request...
Treasury Committee asks for information on FOS action plan
The Treasury Committee has written to FOS, asking for further information on how it intends to get on top of its current case backlog, and how it proposes to address its funding issues. Mel Stride welcomed the...
FCA publishes second consultation on Consumer Duty
Following its initial consultation in Q2 this year (CP21/13), the FCA has set out the responses it received and has published a second consultation on its plans for a new Consumer Duty (CP21/36). The FCA received 235...
Treasury plans updates to Building Societies Act
Treasury is consulting on a set of amendments to modernise the Building Societies Act 1986. The key changes will update the funding model and corporate governance requirements of societies. The Government realises that...
FCA announces changes to its executive committee
The FCA has appointed Stephen Braviner Roman as both General Counsel and a member of its Executive Committee. He is expected to join the FCA in February 2022 from the Government Legal Department where he currently holds...
FCA considers FSCS operation review
FCA has published a discussion paper on the purpose, scope and funding of the compensation framework. It notes that the FSCS levy has increased over the last 10 years, by nearly £500m to an expected £717m for 2021/22...
Commons Committee seeks clarity on UK/EU AML divergence
The House of Commons (European Scrutiny Committee) has written a letter on the implications for the UK of the proposed changes to EU AML rules. The Committee wants to understand better what the UK’s general...
FCA and Practitioner Panel publish joint survey findings
The FCA and the Practitioner Panel have published a report setting out the findings of their joint survey of FCA regulated firms. The survey itself enabled firms across the financial services sector to express their...
FCA publishes quarterly consultation paper
The FCA has published its 34th quarterly consultation paper. The proposed changes to the FCA handbook include: Amending the Enforcement Guide to reflect the EU Exit Passport Regulations by providing information about...
FCA consults on improving AR regime
The FCA has published a consultation paper on improving the appointed representatives (AR) regime. It wants to combat the harm that it is currently seeing across all sectors where firms have ARs, which results from...
ICO fines over pensions cold-calling
ICO has fined EB Associates Group (EBAG) £140,000 for instigating two IARs to make over 100,000 unsolicited direct marketing calls to consumers about occupational or personal pension schemes where the customers had not...
PSR consults on CoP: ending dual running
The PSR is consulting on the wider implementation of Confirmation of Payee, following its adoption by the UK’s largest banking groups. It has published a draft direction to ensure migration to the Phase 2...
FOS publishes plan for change
FOS has published an action plan to deliver a better service to customers. The plan aims, among other things: to bring more effective and efficient resolution of cases – part of this involves teams which are...
European Council and Parliament agree crypto-transfer mandate
The Council of the EU has agreed on a mandate to negotiate with the Parliament on a proposal to update existing rules on information accompanying transfers of funds so that they will include certain crypto assets within...
EU fines banks for FX spot cartel
The European Commission has fined UBS, Barclays, RBS, HSBC and Credit Suisse a total of €344m for their participation in a foreign exchange spot cartel. The first 4 banks settled (with UBS receiving full immunity for...
BoE speaks on Solvency II reform
Andrew Bailey, Governor of the Bank of England, today gave a speech on the opportunity to reform Solvency II post-Brexit. He focused on what he identified to be the key foundations of public policy in prudential...
FCA publishes consumer warning on firm
FCA has published a consumer warning on Grosvenor Associates Limited. It says it has removed the firm’s permissions, so it is no longer authorised to carry out any regulated activities and investments with it may...
FCA makes pensions “stronger nudge” rules
FCA has made final rules that will require firms to give customers a “stronger nudge” towards Pension Wise when they decide to access their savings. The rules will take effect from 1 June 2022 and will...
FCA finalises UK MiFID changes
FCA has finalised its proposals on changes to the research rules and removal of the best execution reporting in RTS 27 and 28 in relation to UK MiFID. FCA remains of the view that the changes were necessary to ensure...
FCA publishes policy statement on new CMC charging rules
The FCA has published its policy statement on restricting CMC charges for non-PPI financial products and services claims. This follows the FCA’s corresponding consultation which ran from 21 January to 21 April...
FCA publishes final rules on strong customer authentication
The FCA has published a policy statement on changes to the SCA technical standards (SCA-RTS), the payment services and e-money approach document and guidance in PERG. The policy statement summarises feedback received to...
FCA publishes mortgage prisoner review
FCA has laid its mortgage prisoner review before Parliament. The review sets out data that will help the Government consider whether any practical and proportionate solutions could help these borrowers. FCA’s data...
FCA publishes Frensham Wealth Limited supervisory notice
The FCA has published a supervisory notice addressed to Frensham Wealth Limited. The notice removes all regulatory activities from the firm’s Part 4A permissions with immediate effect. This follows the FCA’s...
FCA confirms changes to decision-making process
FCA has confirmed the changes to its decision-making process that will allow more decisions to be taken by senior managers rather than by the RDC. Senior managers will be able to make decisions under “executive...
FCA publishes final policy statement on IFPR
Following its first two policy statements, the FCA has published its third and final policy statement marking the completion of its rules to introduce the UK Investment Firm Prudential Regime (IFPR). The final rules...
PRA consults on operational resilience and continuity in resolution
PRA is consulting on operational resilience and operational continuity in resolution. The proposals on resilience cover UK banks, building societies, PRA designated investment firms, financial and mixed financial...
Treasury provides update on Wholesale Markets Review
John Glen MP delivered a speech to the UK Finance Annual Dinner in which he provided an update on the Wholesale Markets Review. Mr Glen noted that there has been a broad consensus on the vast majority of the issues...
FOS sees rise in “authorised” scam complaints
FOS has seen a 30% increase in complaints about “authorised” scams in the second quarter of the financial year compared to the same period last year. half of the nearly 4,500 complaints were about...
UK Finance looks at operational resilience
In advance of the new operational resilience requirements taking effect on 31 March 2022, UK Finance has highlighted the following key themes of importance to both customers and the FCA: Simplicity – customers expect...
CMA publishes terms of reference for Open Banking review
Following a complaint relating to the Open Banking Implementation Entity (OBIE), an independent investigation identified a number of problems with its leadership and found that a lack of appropriate corporate governance...
FCA updates on KPIs
FCA has published its KPIs for the first quarter of 2021. Workload in all areas has gradually increased, but service standards have generally remained constant, as has the pattern of firms and percentage of withdrawals...
ESMA reports on MAR sanctions
ESMA has published a report on the sanctions imposed by various member states under MAR during 2020. Over the year, €17.5m in fines were imposed for over 500 breaches. The number of administrative actions was...
EU consults on Mortgage Credit Directive review
The European Commission is seeking views on whether the Mortgage Credit Directive remains fit for purpose. The review will assess whether the existing framework can adequately deal with new challenges such as...
UK Finance makes Open Banking recommendations
UK Finance has published a report setting out its recommendations for the future strategy of open banking. Open banking payments have increased exponentially over the past 3 years and there are now over 2.5m each month...
Government publishes AML supervision report
The Government has published its AML and CTF supervision report for 2019-2020. The report notes the system has been strengthened significantly over recent years. The FATF report on the UK in 2018 had noted significant...
FCA publishes GI pricing attestation forms
FCA has published examples of the forms it will require from general insurance firms making their first, and then their subsequent attestations on compliance with the pricing rules. The first attestation can be sent in...
FCA updates on IFPR
The FCA has published the following additional MIFIDPRU applications forms under IFPR: Application under MIFIDPRU 2.3.1R to be exempt from disclosure requirements in MIFIDPRU 8 (disclosure by investment firms) for SNI...
Investment Association updates principles of remuneration
The IA has published amendments to its principles of remuneration for 2022. The main changes are on the following topics: ESG – companies should use ESG metrics that are quantifiable, appropriately stretching and linked...
FCA recognises revised FX Global Code and Global Precious Metals Code
The FCA confirmed today under its code recognition process that it is recognising: the updated FX Global Code (FX Code); and the Global Precious Metals Code (PM Code). FCA has updated its ‘Recognising industry...
PSR announces next steps to stop APP fraud
The PSR has set out its latest plans to force the financial sector and others involved in the digital ecosystem to prevent APP fraud. It is consulting on plans to: require the UK’s largest banking groups to...
FCA consults on debt packager referral fees ban
The FCA is proposing new rules to ban debt packagers from receiving referral fees from debt solution providers. The proposals follow concerns that consumers are receiving non-compliant debt advice that is biased towards...
European Commissioner speaks at EPIF annual conference
Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, recently gave a speech at the European Payment Institutions Federation (EPIF) Annual Conference. She...
Commons Library publishes “Black Friday promotions” paper
The House of Commons Library has published a research briefing on the promotion and regulation of financial products on Black Friday. A debate has been scheduled for 23 November and has been initiated by Stella Creasey...
Dormant Assets Bill under inspection
The Dormant Assets Bill is making its way through the House of Lords, where members have voted on two changes to the Bill at report stage. It will now has its third reading on the Lords before moving to the Commons. The...
Market Watch looks at web-based trading platforms
The latest edition of Market Watch focusses on web-based trading platforms and sets out the FCA’s concerns about gaps in users’ surveillance of web-based platform activity. Highlights include: Market abuse...
PRA publishes CRR mapping table
PRA has published a document showing which CRR provisions that Treasury has revoked since Brexit where PRA has made its own rules on the revoked matters.
FCA confirms more LIBOR rules
FCA has confirmed its new rules for: legacy use of synthetic LIBOR rates; and no new use of USD LIBOR. It will allow temporary use of synthetic sterling and yen LIBOR rates in all legacy LIBOR contracts other than...
Basel Committee consults on principles for climate-related financial risks
The Basel Committee on Banking Supervision is consulting on principles for the effective management and supervision of climate-related financial risks. The consultation, which follows a series of analytical reports...
CMA letter to Danske Bank on breach of SME Banking Undertakings
The CMA has written to Danske Bank regarding the Bank’s second breach of the SME Banking Undertakings 2002. Relationship Managers at Danske Bank required up to 205 SMEs to open a business current account (BCA) to...
FSCS confirms levies
The latest edition of FSCS’ “outlook” newsletter sets out its latest forecast for the current year, which is lower than previously forecast but still £17m higher than last year’s levy. It means...
FCA writes to funeral plan providers
The FCA has published a Dear CEO letter on applying for authorisation as a pre-paid funeral plan provider or intermediary. The letter provides the following information to support firms’ preparations for...
FCA publishes IFPR amendments
FCA has set out several amendments it has made to the original text of the near-final IFPR Instrument, including changes to: The glossary definition of ‘UK parent investment firm’; MIFIDPRU 4.14.1R(2)(b) and...
FCA levies further fine for cum-ex trading controls
FCA has fined Sunrise Brokers LLP £600,000 for poor AML systems and controls in relation to cum-ex trading, dividend arbitrage and withholding tax reclaim schemes. It found the firm did not properly identify and...
Treasury extends Gibraltar transitional passporting rules
Treasury has made the Financial Services (Gibraltar)(Amendment)(EU Exit) Regulations 2021. The Regulations extend the current passporting arrangements that allow Gibraltar-authorised firms to do business in the UK. The...
FOS publishes Ombudsman News
The latest edition of Ombudsman News focuses on the recently published annual report and the feedback statement on outcomes reporting already covered in FIN.
FCA refuses SMF29 application
FCA has published its final notice refusing the application of an individual to perform the SMF 29 function for Servicesport Finance Limited. The individual in question was a solicitor who had failed to disclose SRA...