LSB has published a summary report on the Access to Banking Standard. The report makes it clear that LSB has no role in approving or commenting on a bank’s decision to close a branch, but merely to see how the...
Category - Topics
Emma RadmoreFCA resumes work on Credit Information Market Study
The FCA has restarted its work on the Credit Information Market Study following a pause during the Covid-19 pandemic. It intends to engage with industry and consumer groups and complete its analysis during Q3 2021...
Emma RadmoreOmbudsman News looks at BII complaints
The latest edition of Ombudsman News looks at complaints about business interruption insurance (BII) after the test case. In the case of most complaints, the insurer is now accepting that the policy provides cover...
FCA consults on streamlining decision making
FCA is consulting on changes to its decision making process. It plans to move some decision-making from the RDC to the authorisations, supervision and enforcement divisions, to speed up the process and give...
FCA updates on MIFIDPRU applications
Following the publication of various MIFIDPRU application forms on 27 July, the FCA has made further application forms available on its website. The FCA intends to make the remaining application forms and all...
FCA consults on D&I on listed company boards
The FCA is consulting on proposals to improve transparency for investors on the diversity of listed company boards and their executive management teams. The proposals include changes to the FCA’s Listing Rules to...
PRA consults on insurance business transfers
The PRA has launched a consultation on its approach to insurance business transfers. The proposals update the PRA’s approach following legislative changes post-Brexit and provide greater clarity on the PRA’s...
FCA publishes individual ban notice
FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000. FCA considers Mr Markou not fit and proper to perform his senior management...
FCA writes to firms on SME lending and BBLS fraud
FCA has published a Dear CEO letter on its expectations of firms in reporting BBLS fraudulent activity. It notes the excellent levels of cooperation within the industry throughout the pandemic and in relation to BBLS...
Individual imprisoned for fraudulent trading and FSMA breaches
Ian Hudson has been imprisoned for 4 years, for one count of fraudulent trading and two additional terms of 14 months each reflecting a breach of s19 FSMA. These will run concurrently following an earlier guilty plea...
FCA updates on IFPR
FCA has updated a number of pages on its website to reflect the forthcoming IFPR. Among other things, it has updated its pages on: authorisation applications for wholesale investment firms capital requirements...
PRA updates on international bank supervision
PRA has published a policy statement and updated information on its supervision of branches and subsidiaries of international banks and designated investment firms. Most respondents to its consultation welcomed the...
FCA updates on platforms portfolio strategy
FCA has published an update to its strategy for its platforms portfolio of firms. It first set out its major concerns in February 2020, and has written to firms to update them on its focus going forwards. Its key...
PRA updates on accountability
PRA has updated its web resources on strengthening accountability in banks and insurers. It has highlighted its paper on working together to drive change in diversity and inclusion and on its updates for remuneration...
FCA publishes second set of IFPR rules
FCA has published its second “near final” rules on elements of the new IFPR. These rules cover : own funds requirements firms acting as clearing members and indirect clearing firms basic liquid assets...
FOS commissions independent review
The FOS Board has commissioned an independent review of its service, aimed at ensuring it can continue to meet its customers’ needs. The first part of the review will look at the current operational effectiveness...
PSR writes to banks and UK Finance on Phase 2 of CoP
PSR has written an open letter to the 6 banking groups directed under its SD10 and to UK finance, on the public commitment to deliver the first part of Phase 2 of Confirmation of Payee. The banks had confirmed their...
FCA confirms new rules
FCA has confirmed various rule changes in its latest Handbook Notice: to the technical standards under EMIR, to give firms clarity and to align the UK in implementing various Basel Committee and IOSCO recommendations...
PRA updates MRT waiver
PRA has updated its list of modifications by consent to include an application to allow CRR firms to exclude from idenfication as MRTs employees who meet the pay-based criteria for the definition but are deemed not to...
Treasury writes to FCA over frozen bank accounts
The Chair of the Treasury Committee, Rt. Hon. Mel Stride MP, has written to Nikhil Rathi following press reports that NatWest might have frozen the accounts of some customers on low incomes without good reason. The...
Government publishes responses on overseas framework consultation
In December 2020, Treasury published a call for evidence asking for views on the UK’s framework for cross-border financial services. Treasury has now published the response to this call for evidence which covers:...
Treasury consults on amendments to MLRs
The Treasury is consulting on amendments to the MLR 2017 Statutory Instrument 2022. These amendments will allow the government to make some time-sensitive updates to the MLRs, which are required to ensure that the UK...
FCA outlines mortgage prisoners review
The FCA has published the terms of reference setting out the steps it will take in its mortgage prisoners review. Data review: the FCA will review and update its data to consider the demographic and loan characteristics...
FCA updates on financial promotions
Following onshoring changes made to the FPO post-Brexit, the definition of “Relevant Market” inadvertently no longer includes relevant UK markets. This means the exemptions under Articles 37, 41 and 67-69...
BoE and PRA publish Response to the Complaints Commissioner’s Annual Report 2020/21
The BoE and PRA have published their responses to the Complaints Commissioner’s recommendations. The responses are published in full on the Commissioner’s website and cover the following: the BoE, the PRA...
FIN. TeamFCA takes action against debt packager firms
The FCA has taken action following a review into the practices of debt packager firms. 5 firms have stopped providing regulated debt advice until further notice as a result of “significant concerns” over...
EU Commission overhauls AML/CFT rules
The European Commission has unveiled an ambitious package of legislative proposals to strengthen the EU’s AML/CFT rules. The proposals include: a new EU AML/CFT Authority (AMLA) – the new AMLA will coordinate...
Treasury consults on SMCR for Financial Market Infrastructures
HM Treasury is consulting on proposals to create an SMCR for financial market infrastructures (FMIs). The proposed regime would mirror the existing SMCR and would give the BoE new rule-making, supervisory and...
FCA consults on amendments to the PRIIPs Regulation
The FCA is consulting on proposed amendments to the PRIIPs Regulation. The proposed changes aim to address the lack of clarity on the PRIIPs scope and address concerns with performance scenarios, summary risk indicators...
PRA writes to firms on Solvency II Review
The PRA has written to the CEOs of PRA-regulated Solvency II firms to introduce the Solvency II Review Quantitative Impact Study and to set out the PRA’s thinking on two key areas being assessed under it – the...
FCA publishes FAQs on the fair treatment of vulnerable customers
In February 2021, the FCA published Finalised Guidance on the fair treatment of vulnerable customers. It held a webinar in May to help firms understand the role they play in treating vulnerable customers fairly. The FCA...
FCA launches fifth financial resilience survey
The FCA is asking firms to complete a short mandatory survey to help obtain a more accurate view of firms’ financial resilience as a result of Covid-19. The FCA will email the survey to firms in Tranche 1 on 2-4...
Government responds to questions on access to cash
Sir Greg Knight MP asked what steps the government is taking to help ensure that (a) vulnerable people, (b) the elderly and (c) people living in rural areas continue to have access to cash. In response, John Glen MP...
ESMA consults on MiFID II remuneration requirements
ESMA is consulting on draft guidelines that aim to clarify certain aspects of the new MiFID II remuneration requirements, replacing the existing ESMA guidelines on the same topic, issued in 2013. The consultation paper:...
FCA updates on travel insurance expectations
The FCA has updated the travel insurance section of its insurance and coronavirus webpage. The FCA says that, when buying travel insurance, customers cannot rely on their pre-pandemic knowledge and experience. It...
FCA writes to authorised fund managers on ESG
The FCA has written to the chairs of authorised fund managers setting out its expectations on the design, delivery and disclosure of environmental, social and governance (ESG) and sustainable investment funds. The FCA...
FCA publishes updated policy statement on fees
The FCA has published its final 2021/22 regulated fees and levies including feedback on CP21/8. The FCA will invoice fee-payers from July 2021 onwards for their 2021/22 periodic fees and levies.
FCA updates on workstreams
The FCA has provided updates on the following 4 workstreams: Assessing Suitability Review (ASR 2) – ASR 2 was placed on hold in April 2020. The FCA has decided not to continue planned work on ASR 2 in 2021/22. This will...
ESMA updates funds FAQs
ESMA has updated its FAQs: on the AIFMD, in relation to risk measurement and performance fees; and the UCITS Directive, in respect of how the guidelines apply to funds with multiple portfolio managers and performance...
FCA report on independent review recommendations
The FCA has published a report setting out the work it has done to July 2021 to implement the recommendations from: the Independent Investigation into the FCA’s Regulation of London Capital & Finance plc (the...
Complaints Commission Report: how financial services regulators consider complaints
The Complaints Commission has published its annual report for 2020/2021 which reviews how the financial services regulators consider complaints. Highlights include: the Commissioner dealt with 393 complaints in the year...
FCA publishes annual report and accounts
FCA has published its annual report and accounts for 2020/21, accompanied by the usual specific report. Interesting figures include: enforcement data: 134 final notices were issued of which only 15 were against...
FCA to survey preparedness for GI pricing changes and use of credit broking permissions
The latest edition of “regulation round up” notes that FCA is shortly to ask a sample of insurers, insurance intermediaries and PCWs to complete a short survey to say how ready they are for the new general...
EBA consults on limited network exclusion guidelines
EBA is consulting on draft Guidelines to provide clarity on the application of the limited network exclusion in PSD2. The exclusion is supposed to be used for products like store cards, fuel cads, public transport cards...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
PRA considers revisions to change in control regime
Sam Woods, PRA Deputy Governor, has written to the Rt. Hon Mel Stride MP to outline his thoughts on possible enhancements to the conditions for assessing a proposed change in control (Conditions) under FSMA. Mr Woods...
MEPs give green light for DLT pilot
Economic and Monetary Affairs MEPs have voted in favour of a temporary common EU pilot regime for financial services based on distributed ledger technology (DLT). The project follows a ‘sandbox’ approach...
FCA concerned on Provident scheme of arrangement
The FCA has published a second letter of concerns explaining to Provident why it does not support its proposed scheme of arrangement. The FCA’s key concern is that consumers are being offered significantly less...
FCA updates on BI
FCA’s latest update on business interruption insurance: publishes the Supreme Court Order varying the High Court declarations, and a table highlighting the most relevant declarations by policy type; publishes the...
CLLS responds on fin proms
The City of London Law Society has responded to FCA’s discussion paper on changes to the financial promotion rules for high risk investments and for firms approving financial promotions. It: is concerned the...
FCA bans fraudster
FCA has banned Matthew Creed from performing any regulated activity. Mr Creed had been an approved person at a firm from 2005 – 2019, and was also the director of an unauthorised company from 2002- 2013. In 2012...
FCA consults on modifying derivatives list on LIBOR transition
FCA is consulting on modifications to the list of derivatives subject to the derivatives trading obligation in line with Articles 28 and 32 of UK MiFIR in the light of interest rate benchmark reform and BoE’s...
PRA updates on shareholder distributions by large UK banks
On 10 December 2020, the PRA published a statement on “Capital distributions by large UK banks” in which it set out guardrails for distributions to ordinary shareholders in relation to full-year 2020 results...
FCA writes to Work and Pensions committee on online safety
FCA has written to the chair of the Commons Work and Pensions Committee highlighting the role that online platforms play in putting consumers at risk by exposing them to advertisements for financial products. It notes...
ESMA warns of PFOF risks
ESMA has issued a warning to remind firms of the investor protection concerns around receipt of payment for order flow. It has previously said that it is unlikely that the receipt of PFOF would be compatible with MiFID...
FOS: Independent Assessor’s Annual Report 2020-2021
Independent Assessor (IA), Dame Gillian Guy, has published her annual report of FOS for the year 2020-2021. The report looks at complaints received about the FOS and highlights areas for improvement. Key learning points...
G20 Finance Ministers and Central Bank Governors meeting
The G20 Finance Ministers and Central Bank Governors (FMCBGs) have had their third official meeting under the Italian G20 Presidency. Highlights include: The global outlook has improved, mainly thanks to the roll out of...
EIOPA publishes opinion on risk mitigation techniques
EIOPA has published an opinion on the use of risk mitigation techniques by insurers and reinsurers. It notes the importance of the structures that have emerged, but also the importance of having a proper balance between...
Treasury updates AML advisory
Treasury has updated its advisory notice on high right third countries for AML purposes. The notices follow the FATF updates, and the list replicates the FATF list. Post-Brexit, Treasury now included the list in...
SFO publishes Amec Foster Wheeler Energy DPA
SFO has published the DPA judgment from Lord Justice Edis in respect of Amec Foster Wheeler Energy. The firm is now owned by John Wood Group which was willing to undertake to meet the firm’s liabilities. ...
Home Office warns on SARs and civil litigation
The Home Office has issued a circular setting out its position on the use of SARs in private civil litigation. Its aim is to protect reporters and subjects of SARs and the integrity of the regime. A previous circular...
FCA publishes financial promotions case studies
The FCA has published two video case studies which show examples of good and bad practice when promoting financial services and which set out the FCA’s expectations for promotions to be clear, fair and not...
PRA policy statement on Basel implementation
Following its consultation earlier this year, the PRA has published a policy statement (PS) on its proposed new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK...
UK signs free trade deal with Norway, Iceland and Liechtenstein
The government has announced a new free trade agreement between the UK and Norway, Iceland and Liechtenstein. The deal will boost critical sectors like digital, and professional business services, slash tariffs and...
FCA fines LBGI £90m for misleading renewals communications
The FCA has fined LBGI (Lloyds Bank General Insurance Limited, St Andrew’s Insurance Plc, Lloyds Bank Insurance Services Limited and Halifax General Insurance Services Limited) £90,688,400 for failing to ensure that...
FCA publishes agreements with overseas regulators
The FCA has published a new webpage which sets out the multilateral and bilateral Memoranda of Understanding and other agreements it has signed with overseas regulators. The published list is not exhaustive and some...
FCA consults on updates to guidance on the review of Part VII transfers
The FCA is consulting on proposed updates to its Finalised Guidance, FG18/4: The FCA’s approach to the review of Part VII insurance business transfers, which was initially published in May 2018. The FCA is...
PRA consults on review of Solvency II
The PRA has published a consultation on its proposed changes to Solvency II reporting requirements and expectations. The proposals would result in changes to the following policy material: The onshored version of the...
IRSG report on the UK regulatory regime for overseas firms
The International Regulatory Strategy Group (IRSG) has published a report analysing the UK’s access regimes for overseas firms, looking at the regulatory perimeter, the branching regime, the Overseas Person...
FCA urges consumers to protect pension savings
Following its response to the Work and Pensions Committee’s report on protecting pension savers from pension scams, the FCA is urging consumers to be wary of pension scams and to protect their savings. The FCA...
FSB roadmap for addressing climate-related financial risks
The Financial Stability Board (FSB) has published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their 9-10 July meeting. The letter stresses the need for...
Regulators set out plans to improve diversity and inclusion in financial services
The BoE, PRA and FCA have published a discussion paper, setting out policy options to improve diversity and inclusion in financial services. The paper focuses on the importance of data and disclosure in order to enable...
Responses to Work and Pensions Committee report on protecting pension savers
On 28 March 2021, the Work and Pensions Committee published its Fifth Report of Session 2019–21, Protecting pension savers–five years on from the pension freedoms: Pension scams. The Government, the FCA and the Pensions...
PRA Policy Statement: Regulated fees and levies: rates for 2021/22
The PRA has published a policy statement which provides feedback to responses to the consultation paper ‘Regulated fees and levies: rates proposals 2021/22’. The policy statement also contains the PRA’s...
Fund managers fall short on assessing value of funds
The FCA requires authorised fund managers (AFMs) to carry out an Assessment of Value (AoV) at least annually. The AoV should assess whether fund fees are justified by the value provided to fund investors by using a set...
PRA policy statement on IRB approach to UK mortgage risk weights
Following its consultation in October last year, the PRA has published a policy statement on its proposed rules changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. The...
Treasury reports on future framework for regulation of financial services
The Treasury Committee has published its report on the future framework for regulation of financial services. The report considers the future of financial services following the end of the Brexit transition period and...
Pay.UK publishes resources for organisations implementing ISO 20022
The New Payments Architecture (NPA) will unlock significant benefits for many businesses and personal customers within the UK, helping transform the way they control their professional and personal transactions, and...
FATF review of FATF Standards on virtual assets and virtual asset service providers
The Financial Action Task Force (FATF) has completed a second 12-month review of the implementation of its revised Standards on virtual assets and virtual asset service providers (VASPs). This comes two years after the...
FCA consults on reforms to improve the effectiveness of UK primary markets
The FCA has launched a consultation on proposed reforms to improve the effectiveness of UK primary markets in combination with a discussion about how the FCA might continue to develop the listing regime to ensure the UK...
FCA confirms new rules on regulation of funeral plans
The FCA has confirmed the rules funeral plan providers will have to follow when they come under regulation from 29 July 2022. The rules (currently still in draft form) mean: funeral instalment plan products will always...
PRA consults on designating investment firms
The PRA is proposing minor changes to its policy on designating investment firms. This includes a proposal to increase the base capital resources requirement for PRA-designated investment firms, thereby aligning it with...
EBA publishes standards for supervision of investment firms
The EBA has published final draft regulatory technical standards (RTS) on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms. The draft RTS provide...
FATF reports on technology opportunities and threats
FATF has published a paper looking at the opportunities and challenges of new technologies for AML and CFT. The report looks at emerging and available technology based solutions, and the conditions, policies and...
ESAs report on F&P, internal governance and remuneration
EBA and ESMA have reported on: assessment of suitability of members of the management body and key function holders under CRD V and MiFID 2. The guidelines focus on the revisions brought in by the IFR and their affect...
Appeal refused on FCA action against unauthorised firm
The application to appeal has been refused in the case of FCA v 24 Hr Trading Academy. In this case, the High Court had held that 24 Hr Trading Academy had beached the regulated activities and financial promotion...
FCA writes to insurance intermediaries on client money
FCA has written a Dear CEO letter to insurance intermediaries, Following its work on financial resilience and its concerns that some firms risked not having adequate financial resources, it carried out a review of how...
Mansion House speech heralds new era for UK financial services
Rishi Sunak’s Mansion House speech has outlined the reforms the UK is undertaking so the financial services industry can lead both domestically and internationally in the sector. Treasury also produced a roadmap...
UK and Singapore agree landmark Financial Partnership for financial services
An historic new partnership for financial services between the UK and Singapore, which will help to boost jobs and investment in the UK, has been agreed by the Chancellor. The Financial Partnership is a new agreement...
Wolfsberg Group highlights importance of showing effective AML programme
The Wolfsberg Group has reminded of its suggestions for how financial institutions can have effective AL/CTF compliance programmes, and of its 2020 recommendations for ensuring effective outcomes. The reminder comes...
EU close to credit servicer Directive and proposes CCD changes
The Council of the EU has supported a proposal for a Directive to regulate credit servicers and purchasers, following concerns that the regulation (or otherwise) of those who buy and service loans, particularly non...
LSB stresses importance of good governance
LSB has stressed the importance of governance as underpinning everything a firm does, and has started a series of publications to help firms. Its latest guidance looks at how to achieve best practice. The guide...
FCA finds “host” fund manager weaknesses
FCA has carried out a review of authorised fund managers that provide hosting services to third party investment managers outside of their corporate group. It concluded that some firms were operating well but others did...
FCA to make rules on pension schemes
New regulations made under the Financial Guidance and Claims Act 2018 (Act) mean that certain provisions of the Act relating to requirements to refer individuals to pensions guidance will come into force on 5 July 2021...
Ombudsman News looks at insurance and loan schemes
The latest edition of Ombudsman News features problems and complaints related to wedding insurance and business interruption insurance. The pandemic has driven a sharp increase in wedding and special events insurance...
PRA and FPC consult on changes to UK leverage framework
FPC and PRA are consulting on changes the FPC proposes to make to the leverage framework, and how PRA will implement them. PRA’s proposals will depend on Treasury revoking certain parts of the CRR, which, if...
Dear CEO letter on retail bank AML failings
FCA has finally published the Dear CEO letter it sent to retail banks on 22 May on AML failings. The letter sets out the common themes FCA has observed and highlights its disappointment that it continues to find certain...
CMA reports on banks’ compliance with bundling rules
The CMA has published the 2020 annual audit into whether 8 leading UK banks are complying with undertakings they gave not to bundle loans and accounts. During the reporting period covered by the 2020 report the CMA...
FCA publishes first policy statement on IFPR
Following its consultation in December 2020, the FCA has published the first of its policy statements (PS) on the introduction of the UK Investment Firms Prudential Regime (IFPR). In general, the FCA has implemented its...