The European Court of Auditors has published a damning report on the EU’s efforts to fight money laundering in the banking sector. A review found institutional fragmentation and poor coordination at EU level. The...
Category - Topics
Emma RadmoreEBA analysis of RegTech in the EU financial sector
The EBA has published an analysis of the current Regulatory Technology (RegTech) landscape in the EU. The report provides insights into the following: a mapping and understanding of the existing RegTech solutions...
FIN. TeamFCA to host Business Plan webinar
FCA is to unveil its business plan on 15 July and is holding a webinar at which Nikhil Rathi will set out his view of FCA’s role and answer questions.
FCA bans crypto exchange Binance
Binance Markets Limited is not permitted to carry on any regulated activity in the UK without the prior written consent of the FCA. The FCA has also issued a warning about Binance.com, advising consumers to be wary of...
Emma RadmoreFCA fines CMC for cold calling
The FCA has fined claims management company, Crosfill & Archer Claims Limited, £110,000 for unsolicited telemarketing calls to people who had registered not to receive this type of sales call. In such cases, the...
FATF holds plenary
FATF has held its June 2021 plenary session, at which it finalised a number of reports. Key outputs include: no changes to the highest risk jurisdictions, but Haiti, Malta, the Philippines and South Sudan have been made...
FCA updates rules
FCA’s latest Handbook notice confirms updates to: TC to improve information sharing on retail advisers’ failure to comply with appropriate FCA rules and to update on accredited qualifications. COMP to...
Premium finance disclosure changes delayed
FCA has published an update to its feedback statement and new rules on general insurance pricing practices, which means that the new rules relating to premium finance disclosure will take effect on 1 January 2022...
BoE and Pay.UK collaborate on payment messages
Pay.UK and BoE have announced a collaboration on ISO 20022 payment messages. ISO 20022 will be implemented in the CHAPS and NPA. The collaboration started in 2018 and BoE and Pay.UK will continue to work together to...
BoE takes action over Euroclear settlement outage
BoE has announced it is taking supervisory action over the operational settlement outage suffered by Euroclear UK and Ireland in September 2020, which caused significant market disruption. The outage was caused by a...
FCA publishes VOP refusal
FCA has published its final notice explaining its reasons for refusing a firm’s application to vary its permission. Gedik International Limited was authorised in February 2020 as an agency brokerage with a set of...
FCA appoints new Interim General Counsel and Legal Adviser
The FCA has announced the appointment of David Anthony Scott as Interim General Counsel, following the departure of General Counsel Sean Martin, and Raj Parker as a Senior Legal Adviser. Nikhil Rathi, Chief Executive of...
Treasury Committee calls for FCA culture shift
The Treasury Committee has published a unanimously agreed report on FCA’s regulation of London Capital and Finance, in which it expresses the view that FCA cannot justify expecting firms it regulates to comply...
EBA report: management and supervision of ESG risks for credit institutions and investment firms
The EBA has published its Report on Environmental, Social and Governance (ESG) risks management and supervision. The report provides institutions with common definitions of ESG risks and their transmission channels and...
IAIS publishes application papers
IAIS has published application papers on: resolution powers and planning; the paper looks at the objectives and concepts of resolution of insurers, entry into resolution, resolution powers and plans, resolvability...
More of FS Act comes into force
The second Commencement Order under the FS Act 2021 brings into force: on 28 June the provisions on forfeiture of money in relation to EMIs and payment institutions, as they extend to Northern Ireland; and on 1 July...
EBA reports on treatment of third country branches
The EBA has published a report on the treatment of incoming third country branches of credit institutions under the national law of Member States. The report sets out 14 high-level policy recommendations for further...
BoE speech: A new dawn for payments
Speaking at City Week 2021, Victoria Cleland (Executive Director for Banking, Payments and Innovation at the BoE) talked about the evolution of payments systems in the UK, the BoE’s vision for the future and the...
Treasury publishes outcome of IFPR consultation
HM Treasury has published the outcome of its consultation on the UK’s approach to the implementation of the Investment Firms Prudential Regime (IFPR). The consultation outlined how the government proposed to...
CMA warns banks over transaction history breaches
Banks and buildings societies are required to send customers a history of their current account banking activity (a “transaction history”) within 40 days of a customer or small business closing their current...
Treasury responds on Fin Proms
Treasury has published its response following its consultation on a regulatory regime for the approval of financial promotions. It had been concerned about: lack of expertise in approver firms; lack of due diligence by...
FCA speaks on tough regulation and the future
Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...
FCA consults on regulated firm climate disclosures
FCA is consulting on enhancing climate-related disclosures by asset managers, life insurers and regulated pension providers. Following on from the introduction of disclosure rules for the most prominent listed companies...
EU writes to credit card providers on subscription payments
Recent research has revealed that many EU and UK consumers have ordered cheap products and services online, only to discover that they have been lured into a costly monthly subscription. In most cases the information...
PRA consults on financial holding companies
PRA has issued a further consultation on applying existing prudential consolidation requirements to financial holding companies and mixed financial holding companies approved or designated under FSMA. The proposals:...
LSB updates on CRM code review
LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...
Government responds on financial exclusion
The Government has published its response to the Lords Liaison Committee report on tackling financial exclusion. Key elements of the response consider: access to cash: the response notes that the FS Act 2021 will allow...
PRA updates on Solvency II QIS
PRA is to launch its Quantitative Information Survey on Solvency II during the summer. The QIS will cover the calculation of the matching adjustment, risk margin and the transitional measure on technical provisions. ...
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
FCA extends deadline for Pensions Consumer Journey views
FCA has extended the deadline for responses to its call for input on the Pensions Consumer Journey, and now asks for comments by 30 July. The purpose of the exercise is to help FCA understand consumer behaviour at key...
Gavin EllisonECB consults on “fit and proper”
ECB has issued a consultation draft of its requirements when assessing members of management boards and those holding key functions within regulated institutions as “fit and proper”. It asks for comment by ...
PRA speech: Solvency II and policyholder protection
Anna Sweeney – Executive Director, Insurance at the PRA – delivered a speech on the Solvency II review at the JP Morgan European Insurance Conference. The speech covered the work the PRA will do with HM Treasury to...
ECJ ruling: BNP Paribas Personal Finance SA v VE
In BNP Paribas Personal Finance SA v VE, the Tribunal d’Instance de Paris made a request to the European Court of Justice for a preliminary ruling in relation to the application of Articles 3 and 4 of Council...
FSB overview of responses to public consultation on outsourcing and third-party relationships
The Financial Stability Board (FSB) has published an overview of the responses it received to its November 2020 discussion paper on regulatory and supervisory issues relating to outsourcing and third-party relationships...
Artificial intelligence in financial services
The Alan Turing Institute has published a report which looks at the use of AI and the importance of responsible innovation in the financial services sector. The FCA-commissioned report is split into 4 key sections:...
Sam Woods reappointed
Sam Woods has been reappointed as Deputy Governor of the BoE with responsibility for Prudential Regulation and Chief Executive of the PRA. His second 5 year term will last until June 2026.
PRA updates on TPR timetable
PRA has updated on authorisations under the TPR. It has reminded that it has up to the end of 2023 to process applications from firms falling under it. Currently, it is seeing a high volume of applications of varying...
EBA reports on industry readiness for SCA
The EBA has published a report on data provided by PSPs on their readiness to apply strong customer authentication (SCA) for e-commerce card-based payment transactions. Despite PSPs in some jurisdictions lagging behind...
Up next from FCA
FCA’s latest Policy Development Update highlights: a policy statement in July on regulation of funeral plans, and consultation on resolution and FSCS protection rules for the funeral plans sector consultations on...
Treasury Committee to hold economic crime hearing
The Treasury Committee will hold its next evidence session in its Economic Crime Inquiry on 14 June. The witnesses will come from the FCA, PSR, HMRC and Companies House.
FCA takes 13 firms into new sandbox cohort
FCA has accepted 13 firms into cohort 7 of the regulatory sandbox. It received 58 applications, mainly from firms in the retail investment and retail lending sectors. FCA was interested in proposals that saw more...
Basel Committee consults on prudential treatment of crypto exposures
The Basel Committee is consulting on preliminary proposals on how to treat banks’ cryptoasset exposures. It notes that exposure is currently limited, but there is the prospect that heightened exposures could...
Outsourcing and operational resilience: Meeting FCA and PRA requirements by 31 March 2022 (and beyond)
In March this year, the FCA and PRA issued their finalised policies on operational resilience, outsourcing and third party risk management (our earlier post provides an introduction to these). With the one year...
PSR consults on new 5-year strategy
The Payment Systems Regulator (PSR) has announced plans for a new five-year strategy. The proposals set out an approach that aims to make sure payments and payment systems work well for everyone and that there is fair...
EBA finalises PSD2 incident reporting guidelines
EBA has finalised and published its revised guidelines for major incident reporting under PSD2. PSD2 requires PSPs to report major operational or security incidents to their supervisors where those incidents are likely...
New expert group to help tackle ‘greenwashing’
The Green Technical Advisory Group (GTAG) has been set up to provide independent, non-binding advice to the government on standards for green investment. GTAG will oversee the government’s delivery of a...
Law Commission consults on corporate criminal liability
The long-awaited Law Commission consultation on corporate criminal liability was published on 9 June. The Law Commission notes that companies can only be found guilty of offences that require proof of a certain mental...
EBA consults on the reclassification of investment firms
The Investment Firms Directive ((EU) 2019/2034) (IFD) and the Investment Firms Regulation ((EU) 2019/2033) (IFR) establish a new framework for prudential requirements for investment firms. To aid implementation of the...
Prime Minister speaks with financial services leaders
Boris Johnson hosted a virtual roundtable with financial services leaders alongside the Chancellor Rishi Sunak and the BoE Governor Andrew Bailey. Topics discussed include: boosting home ownership by transforming...
LSB launches Access to Banking Standard Review
LSB has published a consultation paper on the review of the Access to Banking Standard. The Review is aimed at determining whether the Standard is still an effective way to achieve fair outcomes for customers (consumers...
FS Act 2021 starts to come into force
The first commencement order for the FS Act 2021 bring into force: on 9 June, sections 3-5 and Schedule 3 on prudential regulation of credit institutions by PRA on 26 June, section 7 and part of Schedule 4 on amendments...
FCA consults on CONC and other miscellaneous changes
FCA’s latest quarterly consultation on minor rule changes focuses on: changes to CONC to enable firms that provide credit cards to offer instalment plans without applying for a rule modification make minor changes...
CPS updates on failure to disclose prosecution factors
CPS has updated its guidance on prosecuting “standalone” failure to disclose offences under s330 POCA. It can now (from 2 June) bring a prosecution regardless of whether a predicate money laundering offence...
UK takes over G7 presidency
The International Regulatory Strategy Group has published a paper on the financial services priorities for the UK’s G7 Presidency. The UK took over the Presidency in January and the IRSG now says it should focus...
FCA extends temporary crypto registration regime
FCA has extended the date of the Temporary Registrations Regime for cryptoasset businesses until 31 March 2022. The regime, which allows businesses that were in existence and applied for registration before 16 December...
ASA Continues Focus on Debt Advice Service Ads
ASA has ruled against three Instagram stories for lead generation company Ashteck Media Ltd t/a Debt Slayers, seen in December 2020 and January 2021. The ruling, published on 2 June, covers 4 issues: The three...
Treasury extends UCITS PRIIPS exemption
Treasury is to extend the exemption from the requirements of the PRIIPs Regulation for UCITS until 31 December 2026.
EBA and ESMA update on IFR permitted funds
EBA and ESMA have published a provisional list of additional instruments and funds that some of the smallest investment firms may use as own funds under the IFR. The list is designed to help firms in advance of the IFR...
FSB consults on cross-border payments
The FSB is consulting on global targets for addressing the challenges of cross-border payments. The proposed targets set goals for improving cost, speed, transparency and access for cross-border payments in the coming...
Market Watch looks at use of orderbook data
The latest edition of Market Watch explains how FCA uses orderbook data to help conduct surveillance to identify suspected market manipulation. It uses its own data combined the STORs and other notifications it...
FCA and PRA make new accountability rules for long term absence
FCA and PRA have confirmed their policy on long term absences. FCA has made new rules on individual accountability, requiring firms to notify it when a Senior Manager or Approved Person at an AR takes more than 12...
FCA finalises value pricing and loyalty penalty measures
FCA has finalised its package of remedies that will protect home and motor insurance customers from loyalty penalties and improve competition. The package of rules will: require insurers to offer renewing customers a...
PRA publishes policy statements on OCIR policy
In October 2020, BoE and PRA consulted on a package of proposals relating to operational continuity in resolution (OCIR) policy and the May 2020 resolution measures, to ease operational burdens on firms in response to...
EC seeks views on plan to review EU distance marketing rules
The European Commission is seeking feedback on its proposals to review the EU legislation on distance marketing of financial services, following concerns that it is not fit for purpose. The current legislation supports...
Ombudsman News looks at annual complaints data
Following the publication of the FOS complaints data for 2020/21, the latest edition of Ombudsman News looks at key trends FOS has seen in a year impacted by Covid-19. Highlights include: Banking – banks’...
Pensions Dashboard call for input
The Pensions Dashboards Programme has called for input on plans for the staged compulsory connection of pension providers to the new ecosystem. The DWP, FCA and TPR have been involved in developing the proposals, which...
ESMA finalises marketing guidelines
ESMA has clarified its guidelines on standards for fund marketing. Following its consultation, the guidelines detail how all marketing communications should: be identifiable as such; describe the risks and rewards of...
ASA rules against Cryptocurrency Ad
ASA has ruled against Luno Money’s poster ad for its cryptocurrency exchange service for failing to contain any risk warning that the value of Bitcoin could go down as well as up, in breach of CAP Code 3.1, 3.3...
ASA publishes further ruling on delayed payment services
Continuing the flurry of rulings against delayed payment service ads, ASA published a further ruling on 26 May, this time against a claim appearing on the Laybuy UK website. Text on the website stated: “…...
ESMA calls for evidence on digital finance
ESMA has launched a call for evidence which aims to gather information on various issues relating to digital finance. It is particularly seeking to understand: more fragmented or non-integrated value chains, which arise...
FOS publishes Annual Complaints Data
FOS has published its annual complaints data for April 2020 – March 2021. Key highlights include: an overall increase in new complaints of 2% from the previous year – but a 58% increase when PPI complaints...
FCA intervenes on high risk CFDs
FCA has stopped ICC Intercertus, a Cypriot firm operating under the TPR, from conducting any regulated or marketing activities in the UK. The firm’s wider group traded as “EverFX” and used the...
FCA confirms role in RLS
FCA has confirmed its approach to regulating firms in relation to the Government Recovery Loan Scheme that was launched by the British Business Bank on 6 April to replace the BBLs and CBILS which are now closed to new...
PRA speaks on Cyber Risk
Lyndon Nelson has spoken about the steps PRA takes to counter cyber risk. He described how PRA has looked at operational resilience in the context of cyber risk by testing, capabilities and coordination. It has carried...
PRA updates on MRTs
PRA has published an update on the requirements applicable to material risk takers. The EU did not adopt an updated version of the MRT Regulation before the transposition date of CRD V, and so PRA is currently using...
BoE speech: responsible openness in the insurance sector
BoE’s Anna Sweeney (Executive Director, Insurance) delivered a speech at the Association of British Insurers Prudential Regulation Webinar on how the UK will regulate insurance services post-Brexit. The speech...
FCA publishes updated information sheets
The FCA has issued updated consumer credit information sheets in accordance with the CCA 1974. The updates are to provide more targeted and useful help to customers, particularly those with mental wellbeing issues. The...
Report calls on UK to lead on global crypto regulation
TheCityUK’s report calls on UK policymakers to capitalise on the regulatory freedoms afforded by Brexit and to lead the global regulatory approach to cryptoassets. The report sets out five principles for shaping...
FCA responds to Amigo Scheme rejection
The High Court has refused to sanction Amigo’s proposed Scheme of Arrangement. The FCA, having previously objected to the Scheme, has now responded to the ruling. The FCA considers the decision is an important...
UK-US Financial Regulatory Working Group issues joint statement
The Financial Regulatory Working Group has published a joint statement on its meeting on 20 May. The meeting focussed on seven key themes: international and bilateral cooperation; sustainable finance; updates on...
FCA orders firm to terminate AR agreements
FCA has published a first supervisory notice to Marshall Sterling Investment Management Limited, requiring it to terminate its relationships with 2 appointed representative firms within 14 days of the notice, and with a...
PRA publishes 2021/22 Business Plan
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2021/22. The PRA’s strategy will be delivered through the following strategic goals: Have in place robust prudential standards and...
No timescale on BNPL
In answer to a question in Parliament, the Government confirmed its intention is still to bring forward secondary legislation to bring forward currently unregulated BNPL products “when Parliamentary time...
PRA publishes results of 2020 feedback survey
PRA has published the results of its 2020 firm feedback survey. The survey asked questions aiming to understand whether firms consider that PRA understands the firm and its business and the it has appropriate access to...
PSR consults on CoP for all
The PSR has issued a call for views on whether it should direct additional banks, building societies and financial institutions to offer Confirmation of Payee. Currently only the 6 biggest banking groups offer it. The...
Update on AIFMD Delegation Rules
The EU has been saying for some time that it wishes to review the rules by which EU AIFMs may delegate investment management to entities outside of the EU. In its August 2020 letter regarding the review of the AIFMD...
FCA consults on use of new powers to support orderly wind down of critical benchmarks
The FCA has published a consultation paper on its proposed policy approach to two new powers introduced through amendments to the Benchmarks Regulation (BMR) under the Financial Services Act 2021 (FS Act). The powers...
FCA brings charges for unauthorised activities
FCA has taken criminal proceedings against Ian Hudson for carrying on his business, Richmond Associates, with the intention to defraud creditors and for carrying on the regulated activities of accepting deposits and...
FCA extends SCA deadline to March 2022
The FCA has extended the deadline for implementing Strong Customer Authentication for e-commerce transactions from 14 September 2021 to 14 March 2022. This further 6-month extension is in response to concerns about...
HM Treasury consults on amendments to the insolvency arrangements for insurers
The government is consulting on amendments to the insolvency arrangements for insurers, with a view to enabling UK authorities to better manage insurer distress. The government is proposing a series of targeted...
ICO fines Amex for direct marketing messaging without consent
The ICO has fined American Express Services Europe Limited for sending, or instigating the sending of, over 4 million direct marketing messages over the period of a year, for which subscribers had not provided consent. ...
FCA updates on change of legal status applications
FCA has updated its website to state that from 1 June 2021 firms will no longer be able to apply to change their legal status. Instead, they will need to submit a new authorisation application for the new entity and...
Rebranded BSB updates website
The former Banking Standards Board has been rebranded as the Financial Services Culture Board from May 2021. It is now open to all financial services firms operating in the UK
FCA Call for Input: Pensions Consumer Journey
The FCA has launched a call for input, to better understand consumer behaviour at key points in the pension saving journey. The FCA acknowledged that the pensions and retirement income markets have evolved significantly...
FCA writes to CEOs of EMIs on client money
FCA has written a Dear CEO letter asking e-money firms to write to their customers to explain how their money is protected. It is worried that these firms’ promotions to customers give the impression that their...
FCA delivers speech on the rise in online scams
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, spoke at the FCA Investigations & Enforcement Summit on the rise in scams and the threat to a legitimate financial services industry...
IAIS consults on AML guidance
IAIS is consulting on changes to its “application paper” on AML and CFT in the insurance industry. The paper was originally published in 2013, and IAIS has revised it in light of various FATF updates and...
FCA clarifies application of EBA outsourcing guidelines
FCA has updated its webpage on outsourcing and operational resilience to clarify the application of EBA’s guidelines on outsourcing. It has confirmed that it expects relevant firms to continue to comply with them...
FCA launches consultation on CMC phoenixing
The FCA has announced proposals to stop the practice of ‘claims management phoenixing’ by banning claims management companies (CMCs) from managing FSCS claims where they have a relevant connection to the claim. Claims...
FCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...