Laura WilesThe latest figures from the FOS show complaints have increased by over 50%, with record increases in complaints about frauds and scams, current accounts and credit cards. The FOS also noted in particular an increasing...
Category - Retail Banking
Emma Radmore
Treasury publishes SME reviews as part of Budget
As part of the 2024 Budget, HM Treasury has published post-implementation reviews of the Small and Medium Sized Business (Finance Platform) Regulations 2015. These Regulations introduced a Bank Referral Scheme to...
HMT adds draft recapitalisation chapter to Banking Act: special resolution regime code
HMT has added a new chapter to the Banking Act 2009: special resolution regime code of practice. The new chapter provides draft details of the recapitalisation payment mechanism introduced in the Bank Resolution...
BoE consults on amending MREL approach
The BoE is consulting on restating, where appropriate and with modifications, of UK Capital Requirements Regulation total loss-absorbing capacity (TLAC) provisions to the minimum requirement for own funds and eligible...
PRA consults on changes to resolution assessment reporting
The PRA is proposing to carry out, together with the BoE, the third assessment of firms’ resolvability in 2026-27. It is consulting on a proposal to require relevant firms to submit their next reports to the PRA...
FCA pleased with impact of access to cash rules
The FCA is pleased at the effect of its rules protecting access to cash. It says that as a result of an assessment LINK has carried out: 15 communities will get a banking hub, when they had not previously been assessed...
FCA reports on cash savings progress and price and value outcomes
The FCA has published its latest analysis of fair value in the cash savings markets. Key highlights are: average interest on easy access savings accounts rose from 1.66% last July to 2.11% in June 2024; while firms were...
PRA publishes near-final policy statement on remainder of Basel 3.1 standards implementation
After publishing a near-final policy statement on various chapters in its consultation on the implementation of the Basel 3.1 standards late in 2023, PRA has published a second near-final policy statement in response to...
CMA says Open Banking Roadmap complete
The CMA has updated its website on Open Banking to confirm that all the “CMA9” banking providers required to complete the Open Banking Roadmap have now completed the implementation phase. AIB and Bank of...
FOS highlights record fraud and scam complaints
We previously reported on the last quarter’s record complaints figures to the FOS. It has followed up this data with details of fraud and scam complaints, which are at their highest ever quarterly level. In the...
FCA publishes steps to improve access to bank accounts
In a report concerning its findings from follow-up work on payment account access and closures, the FCA has set out its expectations of firms, and next steps encouraging account providers to provide more support to...
FCA releases latest skilled persons stats
In the quarter to end March 2024, the FCA commissioned 27 skilled persons reports. 10 related to retail investments, 7 to wholesale financial markets and 5 to retail banking and payments. 12 related to controls and risk...
CMA writes to Starling on Retail Banking Order breach
The CMA has written a letter to Starling regarding its breach of the Retail Banking Market Investigation Order (Order) in relation to the Service Quality Indicator (SQI) remedy. Part 3 of the Order requires Business...
FOS publishes quarterly data
FOS has published complaints data covering Q1 2024/5 (April – June 2024). Highlights include: over 76,000 new complaints – an increase of 70% from the same period last year; credit cards were the most...
CMA writes to banks on Retail Banking Order breaches
The CMA has published details of breaches of the Retail Banking Market Investigation Order by both Barclays and Santander. Santander had failed to keep information published through Open Banking up to date and in some...
CMA updates banking satisfaction surveys
The results of the latest banking satisfaction surveys released by the CMA show: Monzo and Starling are the top of both personal and business current account providers; and RBS and the Co-operative Bank scoring badly on...
BoE publishes second resolvability assessment of major UK banks
The BoE has published its second assessment of the resolvability of the eight major UK banks, finding that the banks have made significant progress in preparation for resolution, and have addressed issues outstanding...
Harry WellsBoE and PRA consult on updates to international banking supervision
The BoE and PRA have launched a consultation on proposed updates to international banking branch and subsidiary supervision to reflect changes since introducing the PRA’s SS5/21. The proposed changes include:...
CMA takes action under Retail Banking Order
The CMA has taken action against 4 banks for breach of the requirements of the Retail Banking Market Investigation Order 2017. HSBC, Lloyds, TSB and AIB failed to make correct data on their products and services...
UK Finance says one third of UK adults use mobile contactless payments
UK Finance’s Payment Markets Report for 2023 shows an increase in payments of 5%, with 38% of all payments being contactless, and with one third of UK adults using mobile contactless payments at least once a month...
FCA publishes final rules on protecting access to cash
In December, the FCA used its powers under FSMA 2023 to consult on new rules to require designated banks and building societies to assess gaps in access to cash and act to fill them. The FCA has now published the...
PSR consults on draft guidance on identifying APP scams
The PSR is consulting on draft guidance on distinguishing between APP scams and civil disputes, after engagement with industry. The draft guidance aims to support Payment Service Providers (PSPs) with identifying...
King’s Speech 2024 outlines pensions and banking resolution measures
Among the list of legislative proposals referred to in the King’s Speech are bills designed to strengthen pension investment and enhance the UK’s banking resolution regime. The Pension Schemes Bill aims to...
PSR confirms APP reimbursement requirements
The PSR has published its policy statement confirming the requirements for the mandatory APP scams reimbursement policy which takes effect on 7 October 2024. The PSR consulted in April on proposed reporting requirements...
FOS publishes annual complaints data for 2023/24
FOS has published the annual complaints data for the 2023/24 financial year. Most notably, complaints about the banking sector are at their highest level in at least a decade. In the last financial year, consumers...
SME banking 2002 undertaking report
The CMA has published the 2023 audit report into whether 8 UK banks are complying with undertakings they gave in 2002 not to bundle loans and accounts for SMEs. The 8 banks currently subject to the undertakings have...
Complaints Commissioner criticises FCA’s response to MLRs complaint
The Complaints Commissioner has criticised the FCA for refusing to review a complaint made about its legal obligations under the MLRs. The complainant had written to the FCA asserting that the regulator had been grossly...
Labour manifesto proposes Regulatory Innovation Office
Part of Labour’s manifesto proposes a new Regulatory Innovation Office, which will bring together existing functions to help regulators better deal with the development of new technologies, specifically AI. It...
Lib Dem manifesto prioritises financial inclusion
The Liberal Democrat manifesto, published on 10 June, includes several commitments in relation to the financial services sector, such as: expanding the British Business Bank to perform a more central role in the...
SMEs reminded to register complaints before BBRS closure
The BBRS has reminded all eligible SMEs who have a banking complaint to be sure they register it before the BBRS closes to new registrations at the end of 2024. Eligible SMEs are those who are above FOS thresholds but...
Building Societies Amendment Act gets Royal Assent
The Building Societies Act 1986 (Amendment) Act 2024 got through the Parliamentary wash-up process and got Royal Assent on 24 May. The Act has now been published at the date of this post, but is designed to allow...
Treasury publishes Access to Cash Designations
HM Treasury has published all its decisions on designating current account providers under the FSMA requirements to provide cash access services. There are 16 recipients of the designation notices – comprising 13...
PSR writes to FPS participants on APP reimbursement
The PSR has written to Faster Payments System participants to set out areas of focus for implementing the mandatory APP scams reimbursement policy. In order to ensure effective and timely implementation by 7 October...
FCA fines for poor customer treatment
The FCA has fined 3 entities within the HSBC group £6.2m for failures in treatment of customers in financial difficulty. For a period of around 15 months, ending in October 2018, it found the bank had not properly...
Financial Services Consumer Panel responds to Open Banking proposals
The Financial Services Consumer Panel has responded to the Joint Regulatory Oversight Committee’s (JROC) proposals for the design of the Future Entity of UK Open Banking (the Future Entity). The Panel recognised a...
PSR updates on preventing APP fraud
Chris Hemsley has written to Dame Harriett Baldwin MP (Chair of the House of Commons Treasury Committee) on the PSR’s progress on implementing measures to better protect consumers from APP scams. From 7 October...
Fair Business Banking SME Manifesto calls for reform
The All Party Parliamentary Group on Fair Business Banking has launched its SME Manifesto. The manifesto sets out the strategy for the next government to transform the regulatory landscape for SMEs so that they get the...
FCA updates on implementing Consumer Duty for closed products
The FCA has written to firms in the following sectors on implementing the Consumer Duty for closed products and services by 31 July 2024: Asset management; Consumer finance; Consumer investments; Life insurance; Retail...
BBRS publishes 2023 report
The BBRS has published its annual report for 2023. The report acknowledges that the service has dealt with far fewer complaints than originally anticipated, but is pleased with the work it has done, and the feedback...
UK Finance calls for help for abuse survivors
UK Finance has published a report looking at the problems that victim-survivors of economic and financial abuse face when they try to regain financial independence. The report notes the 2021 Financial Abuse Code, which...
SME banking report finds “unfair” treatment of small businesses
The Treasury Committee’s report on SME finance has heavily criticised the “unfair” debanking of many legitimate businesses. It firmly believes that any small business doing legitimate work should have...
LSB publishes findings on access for deaf customers
LSB has published its research on accessibility for deaf customers in banking and credit. The report highlights that progress has been made in almost all of the seven key deaf accessibility services drawn out in its...
Basel Committee publishes revised Core Principles for effective banking supervision
The Basel Committee on Banking Supervision (BCBS) has finalised its revised Core Principles for effective banking supervision, which were endorsed by banking supervisors and central bankers representing more than 90...
Government responds further on progress of Edinburgh reforms
The Government has published a second formal response to its December 2023 report on the progress of the Edinburgh reforms. This response is more detailed than the Government’s initial response and includes an...
Treasury publishes basic bank account data
Treasury has published its annual data as received from the nine largest personal current account providers (PCAs) in the UK. Under the Payment Account Regulations 2015, Treasury has designated the PCAs to offer basic...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
Debanking complaints spike
The Treasury Committee has published new data that shows a rise of 69% in complaints to the FOS about debanking since 2020/21. In the last year, there were nearly 4,000 complaints. There has also been an increase in the...
JROC seeks input on design of future entity for open banking
Further to its April 2023 recommendations for the next phase of open banking in the UK, the Joint Regulatory Oversight Committee has published its proposals for the design of the future entity for open banking, which...
BBRS publishes quarterly data report
The BBRS has published its quarterly case resolution data as of 31 March 2024. Key highlights include: From a total of 1,037 case registrations, there were 1,006 resolved case outcomes and 31 remain open. Of the...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
Fair Business Banking group publishes call to action
The All Party Parliamentary Group on Fair Business Banking has called for input into its SME manifesto. The document, which wants to address the challenges that face SMEs when dealing with financial institutions, is...
Government sets out third phase of Smarter Regulatory Framework
Following its Smarter Regulatory Framework (SRF) delivery plan, Treasury has published a follow-up paper which sets out the progress made so far and the government’s approach to the next phase of the SRF programme...
SME Manifesto redoubles efforts in call to action
The All-Party Parliamentary Group on Fair Business Banking has republished its call for action to help it build its SME Manifesto, which wants to target access to finance and dispute resolution. So far, it has started...
PRA publishes solvent exit planning statement
PRA has published Policy Statement PS5/24 – Solvent exit planning for non-systemic banks and building societies providing feedback to consultation paper (CP) 10/23 – Solvent exit planning for non-systemic banks...
Duncan ScottFCA updates on skilled persons reports
The latest statistics for skilled persons reports FCA commissioned in Q3 2023/24 show: 24 reports in total 7 related to the retail banking and payments sector, 6 to retail investments, 5 to wholesale markets and 4 to...
Budget reverses HNWI update and ups Economic Crime Levy
Among the announcements relevant to regulated financial services in Jeremy Hunt’s budget are: a bizarre U-turn to reinstate the previous eligibility criteria for high net worth and sophisticated investors, when...
FOS data shows credit card complaints on the rise
The latest FOS products complaints data (covering October – December 2023) shows that complaints about credit cards reached the highest level ever recorded in a 3-month period. 55% of these complaints were about...
Treasury Committee publishes SME de-banking report
The Treasury Committee has published a report based on data from 8 of the largest banks that shows that banks have closed 2.7% of small business accounts during the past year. The banks also gave reasons for the...
Fair Business Banking Group reports on de-banking
The All Party Parliamentary Group on Fair Business Banking has reported on de-banking. The report looked at why banks have been refusing or withdrawing banking facilities giving reasons that customers felt were at best...
LSB publishes lending standards consultation responses
The Lending Standards Board (LSB) has published its response to the views received on its consultation on a review of the Standards of Lending Practice (the Standards) for business customers. The review itself was...
FCA welcomes call for input on ‘Big Tech’ competition issues
FCA has issued a letter welcoming the Competition Division’s call for input on the potential competition impacts from data asymmetry between Big Tech and firms in financial services. In particular, FCA notes that...
FCA Practitioner Panel responds to access to cash proposals
The Practitioner Panel has responded to the FCA’s access to cash proposals (CP23/29). The Practitioner Panel believes that: the approach is responsive to changes in need which may derive not only from shifts in...
Vida FatemiTreasury consults on enhancements to the Special Resolution Regime
HM Treasury has issued a consultation on proposals for enhancing the Special Resolution Regime (SRR). Specifically, the consultation seeks views on plans to introduce a new mechanism to facilitate the use of certain...
FCA reflects on 2023
Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...
FCA updates on retained EU laws
FCA has updated its website with details of the current state of play in relation to the repeal and replacement of retained EU laws in the financial services sector. Coming up in 2024 will be many changes and papers...
Open banking and VRP progress reports
The Joint Regulatory Oversight Committee has updated on progress in open banking. It is pleased with the significant progress made since its April report, and has summarised what has been happening across all its...
FCA publishes Consumer Duty retail banking review
FCA has published its conclusions from a multi-firm review it carried out in the retail banking and lending sector, to help it understand how firms had approached reviewing their products and services against the...
Basel Committee consults on targeted adjustments to standard on IRRBB
The Basel Committee has published a consultation on targeted adjustments to its 2016 standard on interest rate risk in the banking book (IRRBB). Under the IRRBB standard, banks are required to calculate measures of...
FCA consults on access to cash
FCA is using its powers under FSMA 2023 to consult on new rules to require designated banks and building societies to assess gaps in access to cash and act to fill them. FCA says that, currently, over 95% of people in...
FCA updates on cash savings
FCA has provided an update on progress made in implementing its cash savings action plan. In its update FCA notes that it has seen progress in the speed and size of interest rate changes for savers and improvements in...
FCA updates on LIBOR transition powers
On 1 January 2018 the EU Benchmark Regulation (BMR) took full effect. Following the UK’s withdrawal from the EU and the end of the transition period, the BMR has been brought into UK law (UK BMR). Under the UK BMR, FCA...
Harshil PatelFCA proposes credit information changes
FCA has announced proposals which will: require FCA-regulated data contributors, such as lenders, to share credit information with credit reference agencies (CRAs); introduce a common data reporting format to enhance...
Treasury Select Committee comments on plans for a ‘digital pound’
The Treasury Select Committee (the Committee) has commented on Bank of England (BoE) and HM Treasury proposals for a retail ‘Central Bank Digital Currency’ (CBDC) or ‘digital pound’. Such a...
FCA publishes regulatory initiatives grid
The FCA has published the Financial Services and Regulatory Initiatives Forum’s latest biannual Regulatory Initiatives Grid. This will allow the financial services industry and other stakeholders to understand and...
BoE consults on wholesale cash distribution market oversight
Following its commitment to safeguard access to cash across the UK, the Government granted the BoE powers to ensure that the wholesale cash distribution infrastructure remains effective, resilient and sustainable as...
FSB publishes 2023 G-SIB list
FSB has published the 2023 list of globally systemically important banks (G-SIBs) using end-2022 data and applying the assessment methodology designed by the Basel Committee on Banking Supervision (BCBS). Compared to...
BBRS to continue into 2024
BBRS and its participating banks have agreed the service will continue into 2024 – with no new set date for scheme closure.
Basel Committee publishes discussion paper on digital fraud
The Basel Committee on Banking Supervision has issued a discussion paper on digital fraud and banking. The paper is a high-level assessment of the supervisory and financial stability implications of digital fraud for...
Regulators consult on BoE levy regulations
the BoE and Treasury are consulting on how to implement the new levy based arrangement which will replace the Cash Ratio Deposit scheme. Deposit-taking firms (except credit unions and friendly societies) with eligible...
FCA calls for better treatment of fraud victims
FCA has carried out a review of firms’ fraud controls and complaints handling, and is disappointed with the way some firms support fraud victims. While it did find some examples of good practice, it found many...
PRA writes to deposit takers on innovation and stablecoins
PRA has written a Dear CEO letter to provide clarity on the ways in which it expects deposit-takers to address risks that arise from issuing multiple forms of digital money, while welcoming the benefits that could come...
FCA speech: next steps for Consumer Duty
Nisha Arora (Director of Cross Cutting Policy and Strategy at the FCA) has delivered a speech on the Consumer Duty and the next steps for firms. The speech highlighted the following examples of good practice identified...
EU-UK Financial Regulatory Forum release joint statement
The first meeting of the EU-UK Forum took place on 19 October. It was attended by the UK and EU regulators and the ESAs. The shared objectives of the parties included the preservation of financial stability, market...
FCA updates complaints data
FCA has published updated complaints data based on returns from firms. Snapshots from the 2023 H1 data include: a slight increase in complaints from the previous 6 months (5%); most significant increases in the...
FCA updates on skilled persons reports
FCA has published the numbers of skilled persons reports commissioned in the first two quarters of 2023: From April to June it commissioned 11 reports, of which 4 related to retail investments and 3 to wholesale...
PRA annual assessment of credit unions
The PRA has written to credit unions following its annual assessment of the sector. Key messages for both large (those with total assets between £10m and £50m) and small (those with total assets up to £10m) credit...
FCA speaks on financial inclusion
Nikhil Rathi has spoken on how FCA is looking for solutions to tackle financial exclusion, but that it needs help from industry and technology to do so. He explained that FCA does not have the remit or powers to tackle...
Treasury to enable action against debanking
The Chancellor has announced a plan that will enable regulators to take action if any bank is found to undermine or fails to protect its customers’ rights. Treasury plans to consult soon on how best to deliver the...
UK Finance respond to ban on cold calling
UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...
Commons publishes research briefing on access to cash
The House of Commons Library has released a research briefing that looks at the future of local banking services and access to cash. The paper looks at the latest statistics on cash usage and availability of free to use...
UK Finance comments on account access and closure
UK Finance has commented on FCA’s report on account access and closure – noting that the main reason for account closure is not because of political beliefs or other lawfully held views, but because of...
FCA reports on bank account access and closures
FCA has published its initial findings in its review of bank account access and closures. It has based its conclusions on information provided for the year to June 2023 by 34 firms. The key conclusion is that no firm...
Q1 complaints stats show increase in motor and building issues
FOS has published its latest quarterly complaints data. The data covers April – June 2023. All the most complained-about products have seen year on year increases, and the most complained about product remains...
FCA to analyse lenders’ fair value assessments
The FCA has announced it will analyse the fair value assessments provided to it by 9 banks and building societies. This follows the introduction of the Consumer Duty and the 14-point action plan published by FCA in July...
BoE publishes policy statement on wholesale cash distribution supervision
BoE has published a statement of policy and the responses to a consultation on its supervisory approach to market oversight for wholesale cash distribution (WCD) under its new powers under Part 5A FSMA 2023. BoE’s...
Treasury and FCA confirm approach on access to cash rules
Treasury has published a cash access policy statement setting out the Government’s approach to access to cash deposit and withdrawal services for UK current accounts. The aim of the statement is to inform...
CMA survey shows best results for challenger banks
CMA has published the 11th version of its banking customer satisfaction survey. The surveys rank providers of personal and small business current accounts against a number of questions, including how likely they would...
Ombudsman News highlights current hot topics
The latest edition of FOS’ Ombudsman News highlights: the Consumer Duty: now the Duty is in force, FOS will be speaking to firms to assess the complaints firms are receiving; FOS’ updated guidance for firms...
FCA asks banks for account closure information
FCA has followed up its announcement of its upcoming investigation of account closures with a request to the largest banks, building societies and payment firms to provide it, by 25 August, with information on: the...
FCA publishes letter on freedom of expression and provision of banking services
FCA has published a letter to HM Treasury on freedom of expression and the provision of banking services, in response to increased public concern about payment accounts being closed without fair justification. The...
FCA publishes Q2 fin proms data
FCA has published its financial promotions data for Q2 2023, which showed that 1507 promotions were amended or withdrawn as a result of FCA intervention. As with the data for Q1, the majority of cases related to retail...
FOS blogs on consumer card protections
FOS has published a blog on how businesses can help consumers who have problems with goods and services. It has noticed that consumers aren’t always aware of the protections they have when paying for goods or...
Government consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...