The FCA has reported that there are now 49 signatories to the Mortgage Charter, and that the signatories represent about 90% of the mortgage market. The latest data suggests that well over 1m mortgages benefited from...
Category - Supervision
Emma RadmoreRegulators publish Wider Implications Framework Annual Report
The 2023/24 Wider Implications Framework Annual Report from the FCA, FOS, FSCS, TPR and MaPS notes that during the period the report covers, the new duty in FSMA 2023 on the FCA, FOS and FSCS to cooperate on issues that...
Tenet firms enter administration
The Tenet Group Limited is winding down its operations, which has now resulted in two of its hosting firms entering administration. The firms closed to new business at the end of March, and most of their advisers either...
FCA speaks on investment management
Nikhil Rathi has spoken on the importance of the UK keeping its leading position in global asset management. He discussed current international initiatives such as: liquidity risk management, particularly for open ended...
City Corp and Climate Policy Initative report on progress to net zero
A research report from the City of London Corporation and the Climate Policy Initiative looks at the significant progress financial services firms have made in efforts to address climate change. They say increasing...
Building societies amendment law published
The Building Societies Act 1986 (Amendment) Act 2024, which was voted through in the Parliamentary wash-up process, has been published. It will take effect from 24 July and will: amend the funding limit restrictions to...
Chris Hemsley to leave PSR
Chris Hemsley is standing down as managing director of the PSR from 7 June to take up another position. David Geale will take over as interim managing director, having been director of retail banking at the FCA and...
FCA sustainability disclosure and labelling regime takes effect
The FCA’s new anti-greenwashing rules and guidance took effect on 31 May. Firms must make sure any claim about the sustainability of their products and services is clear, fair and not misleading. They should also...
UK Finance publishes financial services manifesto
UK Finance has set out what it considers should be the next government’s key financial services priorities. These include: reviewing personal savings allowances; focus on financial education through the schools...
Committee stops accepting FCA enforcement evidence
The Financial Services Regulation Committee is no longer accepting evidence on the FCA’s enforcement proposals following the prorogation of Parliament on 24 May. Its website says that any committees appointed...
FCA publishes operational resilience tips
The FCA has published its observations on firms’ preparations for complying with its operational resilience rules by 31 March 2025. The rules apply to dual regulated firms as well as RIEs, enhanced scope SMCR...
Treasury Committee writes to FCA on enforcement proposals
The Treasury Sub-Committee on Financial Services Regulations has written to the FCA on its enforcement proposals prior to the dissolution of the Committee before the general election. The letter outlines the...
Harry WellsFCA updates Consumer Duty webpage
The FCA has updated its Consumer Duty – information for firms webpage to include guidance on identifying vulnerable customers. For example, firms should: set up systems and processes that enable customers to...
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 allows firms to restart GAP insurance sales
Following the pause in GAP insurance sales implemented earlier this year, the FCA has permitted several firms to recommence their sales of GAP. The firms permitted to resume sales of GAP insurance have materially...
FCA updates on plans for asset management sector
Ashley Alder, FCA Chair, has a delivered a speech on the FCA’s agenda for the UK asset management sector. Key highlights include that FCA: wants to ensure that feedback from all stakeholders, including from their...
FOS consults on CMC fees
Following the publication of Treasury’s draft legislation, FOS has announced a consultation on proposals to charge Claims Management Companies and other professional representatives up to £250 to lodge a case. The...
PRA updates on insurance branch supervision
The PRA has provided feedback on the responses received to its consultation on the PRA’s approach to the authorisation and supervision of insurance branches. 10 responses were received, which generally supported...
BoE responds on requirements on FMIs consultation
BoE has provided feedback following responses received during its consultation on its proposed approach to statutory notice decisions for use of its requirements powers. BoE has been given new powers under FSMA 2023 to...
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...
FCA heralds sustainable investment labelling
The FCA has confirmed that investment funds that meet criteria for environmental or social goals will be labelled, so investors can more clearly see what they are investing in. From 31 July 2024, four labels will be...
FCA and PRA fine £60m for failures in trading systems and controls
The FCA and the PRA have imposed fines totalling over £60m on Citigroup Global Markets Limited (CGML) for failures in its trading systems and controls between April 2018 and May 2022. The FCA, which fined CGML...
Treasury speech: reform of capital markets
Bim Afolami, Economic Secretary to the Treasury, has delivered a speech on reforms to reinforce the UK’s capital markets. The speech highlighted that the Government is committed to building on the strong...
BoE speech: balancing the opportunities and risks of AI
Randall Kroszner, BoE external member of the Financial Policy Committee, has delivered a speech on balancing the productivity opportunities of financial technology and AI against the potential risks. Speaking at the...
PSR provisional finding on card schemes raises concerns
The PSR has published its provisional findings on competition in the cards schemes sector. It is concerned that the supply of scheme and processing activities is not working well and that there is no effective...
Treasury legislates for CMCs to pay FOS fees
Treasury has published a draft Statutory Instrument setting the legal framework for the FOS to charge fees to authorised CMCs and to legal professionals carrying out claims management activities.
Treasury lays draft Solvency II reform regulations
Treasury has laid before Parliament a draft Statutory Instrument that will make a number of technical changes to existing legislation to implement certain post-Brexit Solvency II reforms and ensure prudential regulation...
FCA publishes credit information market remedy package
The FCA has published its final report for the Credit Information Market study. It has proposed a package of remedies to address the weaknesses its review found in the sector. The remedies focus on: improving data...
FCA speaks on key role of insurance brokers
Emily Shepperd has spoken on the key role insurance brokers have to play in the financial ecosystem. She focussed on the recent significant growth in brokered markets, and how future regulation might affect the industry...
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...
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...
FCA writes to Committee on investment trust disclosure
The FCA has written to the Financial Services Regulation Committee explaining its thoughts on the need for reforms to the disclosure regime. It explains why the FCA has taken the stance it has, including why it does not...
Treasury Committee publishes Government response to Sexism in the City
The Treasury Committee has published a response from the Treasury on its report on sexual harassment and bullying in the financial services industry. The Sexism in the City report found that a significant culture of...
Enforcement proposals challenges – a recap
The FCA has responded to a variety of criticism from industry and parliament over the last month after consulting on its new approach to enforcement investigations. The House of Lords Financial Services Regulation...
FCA publishes hire purchase agreement undertaking
The FCA has published a notice of undertaking under the Consumer Rights Act in relation to vehicle hire purchase contracts issued by Mercedes-Benz Financial Services (UK) Limited. The FCA had been concerned that an...
FOS updates on car finance complaints
FOS has around 20,000 open complaints on car finance commission. It has explained on its website that: it published its first representative decisions in January 2024; also in January, the FCA announced its review of...
Treasury Committee publishes enforcement proposal correspondence
The Treasury Committee has published a further set of correspondence with the FCA on the FCA proposals to publicise enforcement investigations, and the Financial Services Regulation Committee formally announced its...
UK and Singapore strengthen FinTech and sustainable finance cooperation
The 9th dialogue of the UK-Singapore financial dialogue focussed on: commitment to scale financing in support of the net zero agenda, including transition planning and disclosure and rating standards; fintech and...
Parliament to look at regulatory international competitiveness
The Financial Services Regulation Committee is starting an inquiry into the PRA and FCA’s secondary international competitiveness and growth objective. Among the issues it wants to explore are: the balance between...
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...
PSR consults on cycle 2 APP scam publication guidance
The PSR is consulting on its draft guidance for PSPs for publishing APP scams data for cycle 2 (the calendar year 2023). The requirement to publish the data comes under Specific Direction 18 and applies to 14 PSP groups...
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...
BoE looks at AI and financial stability
Jonathan Hall of the FPC has spoken on whether increasing use of AI models could have a negative impact on financial stability. He sees two key risks: that deep trading agents could lead to a brittle and highly...
PSR consults on extension and exemption process
The PSR is consulting on how it plans to make decisions on exemptions or extensions to its directions and requirements. In principle these will be appropriate in only limited circumstances. When it receives a request...
FOS publishes half-yearly complaints data
FOS’ latest half-yearly complaints data shows a rise of 20% in complaints during H2 2023, with the rise driven mainly by banking and credit complaints. Within that sector, current accounts and credit cards...
FCA and Gambling Commission update MoU
The FCA has published its updated MoU with the Gambling Commission. Among other things, the MoU sets out that the Gambling Commission regulated commercial gambling apart from spread betting.
Industry calls for intervention on FCA enforcement proposals
16 financial services trade associations, including UK Finance, the ABI, TheCityUK and PIFMA, have written to the Chancellor asking him to intervene over the FCA’s proposals to publicise enforcement investigations...
PRA updates on insurance regulatory returns
The PRA has updated its guidance on regulatory returns it requires from insurers. The page confirms that all reports should be submitted electronically, and provides links to the insurance taxonomy and a filing manual.
FCA finalises consumer credit sales data rules
The FCA has finalised its new rules that incorporated 3 new Product Sales Data returns into SUP. The enhanced requirements should help the FCA to get better market insights and to intervene more quickly if it sees risks...
FCA updates Form A
The FCA has made some changes to Form A which it hopes will improve the application experience. Among other things, the new look form: removes duplication of employment history by simply requiring 10 years of employment...
FCA responds on enforcement proposal criticism
The FCA has responded to the House of Lords’ Financial Services Regulation Committee’s letter that criticised the FCA’s proposal to name firms it was to investigate and asked for justification of 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...
FCA publishes Q1 fin proms data
The FCA has published its financial promotions data for Q1 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 2,211...
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...
FCA updates complaints data
The FCA has published updated complaints data based on returns from then nearly 300 firms reporting at least 500 complaints within 6 months or 1000 within a year. Key findings from the 2023 H2 data include: Complaints...
PRA writes to CROs on private equity related activities
Following a PRA review of private equity financing businesses, it has now written to bank Chief Risk Officers noting the key conclusions. It specifically notes a recent trend that increases exposure to various non...
FCA notes good and poor practice for credit broking ARs
The FCA has carried out a review of the key harms and drivers of harm caused by ARs and IARs in the credit broking market. Key areas where some principals could improve are; making sure they undertake criminal or credit...
PSR consults on supervisory approach
The PSR is seeking views on its approach to supervision. Last year, it set up a Supervision and Compliance Monitoring division, designed to deter and challenge any poor practices within firms. It plans for the division...
FCA publishes anti-greenwashing guidance and consults on extending SDR
The FCA has finalised its anti-greenwashing guidance and launched a consultation on extending the Sustainability Disclosure Requirements (SDR) and investment label regime to include portfolio management. The anti...
Lords asks for FCA justification of enforcement proposals
The House of Lords Financial Services Regulation Committee has written to the FCA making several criticisms of its proposals to name firms under investigation. It is particularly critical that the paper explicitly rules...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
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...
BoE speaks on role of private equity
Nathanael Benjamin of the BoE has spoken on the role of the private equity market, focusing on its key role in financing companies but looking also about safe and sustainable growth. Key points from his speech included:...
PRA consults on final Solvency II review steps
The PRA has published a consultation on the final steps it needs to take to implement the conclusions of the Solvency II review and finalise all the PRA materials needed to replace the Solvency II assimilated laws that...
FCA publishes feedback on impact of Big Tech data asymmetry
The FCA has published its analysis of feedback received from its Call for Input (CFI) in November 2023 regarding potential competition impacts form data asymmetries between Big Tech and financial services firms. Nikhil...
FCA updates approach to AI
The FCA has published an update on its approach to AI following the Government’s publication of its pro-innovation strategy on AI in February. The update covers the FCA’s work so far and explains how it is...
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...
BoE outlines CCP stress test for 2024
BoE has set out the key elements of its 2024 supervisory stress test for UK central counterparties. The clearing services of all three UK authorised CCPs (ICE Clear Europe Ltd, LCH Ltd and LME Clear Ltd) will be in...
FCA speaks on women in financial services
Sheree Howard (Executive Director of Risk and Compliance Oversight at the FCA) has delivered a speech at the PIMFA Women’s symposium conference on investing in women in financial services, both as employees and...
BoE speech: innovation and safety in payment systems
Sarah Breeden, BoE Deputy Governor of Financial Stability, has delivered a speech on how the BoE intends to support innovation and technological advances in payments services whilst ensuring the safety of the sector...
FCA highlights common failings in asset management applications
The FCA has provided a list of common errors asset managers are making in applications for authorisation. For context, in the year to 1 April 2024, 18% of applications were withdrawn as a result of the FCA’s...
FCA updates on motor finance complaints
Following the announcement of its review into motor finance complaints, the FCA has published a statement on progress made to date. It says that firms have engaged with the FCA constructively but many are struggling to...
PRA consults on fees
PRA is consulting on its fees and levies for 2024/25. Key elements of the proposals are: funding an overall increase in the budgeted cost for ongoing regulatory activities of 7%; dealing with an increase of 11% in the...
PRA publishes Business Plan 2024-5
The PRA has published its 2024/25 Business Plan. The plan focuses on: maintaining and building on the safety and soundness of the banking and insurance sectors and ensuring continuing resilience; being at the forefront...
FCA publishes cost of living report
The FCA has published its Financial Lives report on the increased cost of living for adults across the UK. The report is based on findings from the FCA’s recontact survey conducted with 3,450 individuals from...
Innovate Finance and City of London publish report on compliance technology
Innovate Finance and the City of London Corporation have published a report calling for the FCA and PRA to introduce a test to help assess they ways in which technology can facilitate regulatory compliance. It says it...
FCA consults on fees
The FCA has published its consultation on fees and levies for 2024/25. After the general fee freeze last year, key proposals for the next year include: increasing minimum and flat rate fees in line with the 8.75%...
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...
FCA publishes financial resilience survey results
The FCA has published the results of its October 2023 Financial Resilience Survey. The survey had been issued 11 times in the October 2023 form but has now been replaced with a new format. The FCA has released the data...
FOS publishes plans and budget for next phase
The FOS has published its finalised Plans and Budget for the next phase of its transformation. It expects to receive a greater number of complaints in the coming year, and anticipates 210,000 complaints in its caseload...
FCA and BoE consult on Digital Securities Sandbox
The BoE and FCA are consulting on the Digital Securities Sandbox which will allow participants to use developing technologies to carry out some of the traditional activities of CSDs and trading venues. Instruments such...
FCA updates on Attestations
The FCA has updated its website page on attestations. The page explains the situations in which the FCA will normally ask for attestations, and is updated quarterly with the numbers of attestations. For the quarter to...
FCA gives guidance on consumer credit income reporting
The FCA has updated its guidance for consumer credit firms to reflect changes to the way firms now need to calculate their proxy measure of annual income. When completing their reports, credit brokers need to include...
ABI publishes guide to supporting autistic customers
The ABI has published a good practice guide to help the insurance and long-term savings industry support autistic customers. It had found several barriers that autistic people face when trying to access the products...
FCA makes minor rule changes
The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...
Regulators respond on data collection transformation
The BoE and FCA have published an update on their joint transformation programme aimed at improving the data collection process for regulators and firms. They published their original transformation plan in 2021 and...
Regulators update on payment systems MoU
The signatory regulators to a joint-authority Memorandum of Understanding on co-operation in relation to payment systems in the UK have carried out their 8th annual review of how well the MoU is working. The BoE, FCA...
BoE consults on enforcement changes
The BoE, including the PRA, is consulting on proposed changes to its SOPs and procedures for enforcement, following the additional responsibilities FSMA 2023 has placed on it. The changes relate to enforcement policy...
HNWI/SCSI Fin Prom limits change again
We’ve written an article explaining the effects of the Budget reversal of the January increase on limits that high net worth and self-certified sophisticated investors need to meet to make use of financial...
FCA publishes findings of insurers’ valuation of vehicles review
The FCA has completed its multi-firm review of firms’ claims handling processes for valuing vehicles which have been stolen or written off (‘total loss’ claims). The findings are split into six key...
FPC March update
The BoE has published: the FPC’s financial policy summary and record for March: this concludes that conditions remain challenging and asset prices are stretched with the risk of a sharp correction in a broad range...
FCA updates social media guidance
The FCA has published its updated guidance on social media advertising. The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...
FCA updates on PEMC review
The FCA has announced that it has largely completed its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance. It intends to publish the...
FCA publishes Mortgage Charter uptake data
In June 2023, the FCA introduced new rules to support the Government’s Mortgage Charter’s commitments, including providing for firms to allow customers to make reduced capital payments for up to 6 months, or...
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...
Treasury outlines approach to designating CTPs
HM Treasury has published a paper outlining its approach to designating critical third parties (CTPs) to the UK financial services sector. Highlights of the paper include: Treasury generally expects to base its...
PSR speaks on the future
Chris Hemsley, speaking at the Pay360 conference, looked at how far payments innovation has come this century, and spoke of some challenges for the future. He focused on: the important role of a Payment System Operator...
FCA writes to CEOs on consumer lending strategy
The FCA has published a “Dear CEO” letter on its strategy for Consumer Lending. The letter focuses on three of the lending portfolios within the market – high-cost lending, mainstream consumer credit...
PRA to revamp Rulebook website
The PRA is to launch a new website for its Rulebook on 10 April. The site url will remain the same, but the new site is intended to be more engaging and user friendly. New features will include easier links to policy...