The National Audit Office has published a report looking at how FCA deals with its new responsibilities and past regulatory failures. The report says FCA is making good progress and has made significant changes, but it...
Category - Supervision
Emma RadmorePRA updates on SDDT waivers
PRA has updated its website to include firms for the modifications by consent that Small Domestic Deposit Takers can apply for from 1 January 2024, together with its Directions relating to them. The modifications are...
PRA consults on approach to policy
Building on its 2022 discussion paper, the PRA is now consulting on its approach to policy. The paper sets out the PRA’s approach on: its primary and secondary objectives, including its new secondary...
FCA outlines aims for consumer investments policy initiatives
As a continuation of its Consumer Investments Strategy (CIS), the FCA has set out the direction of travel for its consumer investments initiatives. It will focus on the following five core initiatives: accessible...
Treasury response on regulator secondary objectives
In May, Treasury published a call for proposals on which metrics the FCA and PRA should publish in relation to the secondary growth and competitiveness objectives introduced under FSMA 2023. In its formal response to...
Different perspectives on Edinburgh Reforms progress
While the Treasury has heralded the progress made since the Edinburgh Reforms were announced a year ago, the Treasury Committee is less pleased. The Economic Secretary to the Treasury, Bim Afolami, focussed on the...
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...
Regulators consult on critical third party supervision
BoE, PRA and FCA are consulting on how to oversee the resilience of critical third party service providers, where those providers service UK regulated firms and FMIs. The debates leading up to the introduction of the...
Financial Stability report shows same challenges remain
The December 2023 Financial Stability Report shows little change from the previous version. Conditions remain challenging and households and businesses continue to face higher borrowing costs. However, the banking...
PRA and FCA confirm remuneration changes for small firms
PRA and FCA have published feedback on their consultations on enhancing proportionality in respect of the remuneration rules in respect of dual-regulated and small firms. While the regulators needed to feed back...
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 consults on updating Money Market Funds regime
The FCA has published its consultation paper (CP23/28) setting out its proposals to enhance the resilience of Money Market Funds (MMFs) based in the UK. It has been developed in collaboration with the Treasury and the...
FIN. TeamPRA publishes simpler-regime firms policy statement
The BoE has published its Policy statement: The Strong and Simple Framework: Scope Criteria, Liquidity and Disclosure Requirements (PS15/23) (5 December 2023) incorporating feedback from consultations regarding...
PRA consults on step-in risk assessments
PRA is consulting on proposed changes to rules and policy that will require CRR firms and consolidation entities that are not classified as small domestic deposit takers to regularly assess their step-in risk –...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation (CP23/25: Quarterly Consultation Paper No. 42) on proposed miscellaneous amendments to its Handbook. FCA is proposing to consult on making: amendments to the TC...
MoU between FCA and OFSI
On 1 December 2023,FCA published a Memorandum of Understanding (MoU) (dated 21 November 2023) between it and OFSI. The MoU sets out the collaboration and information exchange between FCA and OFSI. It replaces the...
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...
FCA speaks on importance of culture and conduct
Emily Shepperd, FCA COO and Executive Director of Authorisations stressed that firms must consider how their own cultures can drive better outcomes. Key highlights of the speech include: How the Consumer Duty has raised...
BoE publishes fees regime for financial market infrastructure supervision
BoE has responded to consultation on Fees regime for financial market infrastructure supervision 2023/24, fee rates for the 2023/24 fee year and statement of policy. In its original consultation, the Bank put forward...
PRA and FCA consult on reformatted control change guidance
PRA has published a consultation paper containing proposals on how it and FCA plan to replace the EU guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector...
FCA publishes final report on IFPR implementation observations
FCA has published the final report on its review into firms’ progress in implementing the ICARA process and reporting requirements under the IFPR. The IFPR was introduced to streamline and simplify the prudential...
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...
UK Finance reports on impact of AI in financial services
UK Finance has published a report that looks at the uses of AI in the financial sector. The report covers: how and where AI is being deployed; where there is promise for the future; how to make more of opportunities;...
Autumn Statement: financial regulatory issues
The Government’s Autumn Statement covered several new and ongoing actions relevant to the financial services sector, including: legislation to replace retained EU, mainly in the markets space (securitisations...
Government publishes PRIIPs replacement legislation
The Government has published draft legislation that will replace the PRIIPs Regulation and create a new UK retail disclosure framework for “consumer composite investments” (CCIs). The initiative is part of...
Treasury feeds back on Digital Securities Sandbox
Treasury has published the outcome to the consultation on a digital securities sandbox. The sandbox will be operated by BoE and FCA and is intended to help facilitate the use of digital asset technology in UK financial...
Treasury publishes Future of Payments Review
Treasury has published its Future of Payments Review, commissioned from Joe Garner, as part of the Autumn Statement package. The review asked: what are the most important consumer retail payment journeys both today and...
FCA consults on fee policy
FCA is consulting on its policy proposals for the 2024/5 fee year. For application fees, FCA did not increase these fees last year, but now feels it is appropriate to do so as its costs for processing applications are...
FCA updates AR pages
FCA has updated the page on its website that provides information for principals of ARs. The main purpose of the additions is to remind firms of the need to comply with the Consumer Duty if they have retail customers...
FCA speaks on importance of culture
Sheree Howard, FCA’s Executive Director of Risk and Compliance Oversight spoke about the importance of the execution of a plan being as vital as its ideology and purpose. She said firms must look at whether they...
FCA updates on secondary credit broker expectations
FCA has a new page on its website for secondary credit brokers, on which it sets out what it expects from applicants, including the difference between limited permission and full permission firms. The page links to...
FCA secures conviction of mortgage fraud broker
Larry Barreto, who had already pleaded guilty to 2 offences of arranging and advising on regulated mortgages without FCA authorisation, has been found guilty of 11 charges of fraud by false representation. For a period...
Lords recommends new Regulation Committee
The House of Lords Liaison Committee has recommended that a new financial services regulatory committee be created whose remit will be to look at financial regulation generally and particularly to scrutinise financial...
PRA writes to CFOs on Deposit Aggregators
PRA has written a letter to CFOs setting out the steps firms should consider taking to mitigate risks relating to deposit aggregators that firms may have relationships with. This follows a ‘Dear CEO’ letter...
PRA makes statement on recalculation of TMTP
The Solvency II Regulations 2015 allow firms to apply to the PRA for permission to undertake a recalculation of the deduction applied pursuant to the transitional measure on technical provisions (TMTP) every 24 months...
PSR consults on Direction review mechanism
PSR is consulting on the way in which it reviews its general directions and generally imposed requirements. FSMA 2023 has added new requirements for PSR to keep these under review and publish statements of policy about...
BoE launches new stress test phase
BoE has published the latest phase of the System Wide Exploratory Scenario, which it first launched in June. The SWES is intended to help BoE understand the risks to and from non-bank financial institutions, and the...
FSCS updates on levy and forecast
FSCS has published its latest “Outlook” newsletter. FSCS does not expect to request any additional levies from firms during the current financial year and will carry forward any surpluses in any class to...
UK Finance responds on SME lending
UK Finance has responded to the Treasury Select Committee call for evidence on availability of finance for SMEs. Its response notes that 2022 saw the highest SME lending since comparable records began in 2012, on the...
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 portfolio letter to wealth managers and stockbrokers
FCA has published its Dear CEO letter to wealth management and stockbroker firms setting out its supervisory priorities and expectations for the sector. The letter focuses on financial crime prevention and Consumer Duty...
Treasury to update Fin Prom exemptions
Following its consultation on exemptions in the FPO for promotions to high net worth individuals and sophisticated investors, Treasury has decided to make some updates. It will: increase the financial thresholds needed...
Applications open for fin proms gateway
On 6 November, the application window for the FCA’s financial promotions gateway opened. Firms now have three months to apply for approver permission if they want to continue approving financial promotions for...
FCA updates on fin prom data
FCA has published data for the quarter ending September 2023 on its actions against breaches of financial promotion rules and referrals and investigations into unauthorised activity. During the period: FCA actions...
FCA publishes crypto marketing guidance
FCA has published guidance it hopes will support firms complying with the new rules on crypto promotions. It is aimed both at registered crypto firms making promotions and at authorised forms who are communicating or...
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...
FCA writes to RemCo chairs
FCA has written a “Dear Chair” letter to the chairs of Remuneration Committees of proportionality level one dual regulated firms. The letter: stresses that in times of continuing cost of living pressures...
FCA takes action on BNPL terms as product use grows
FCA has taken action using its powers under the CRA against potentially unfair terms in unregulated BNPL contracts issued by PayPal and QVC. It said it is particularly important to make sure consumers have the right...
Government responds on failure of Digital Settlement Asset firms
Following its consultation on the failure of Digital Settlement Asset firms, the government has now published the consultation outcomes. In the consultation, the government sought responses to its approach on managing...
Government confirms plans for fiat-backed stablecoins
The government has provided an update on its plans for bringing fiat-backed stablecoins into the UK’s regulatory perimeter for financial services. This follows the January 2021 consultation on the UK regulatory...
Treasury confirms next steps in crypto regulation
Treasury has published its response to its consultation and call for evidence on the future regulatory regime for crypto assets. Broadly, it will proceed with the proposals it consulted on, and will: develop a...
FCA launches new crypto registration webpage
FCA has launched a new webpage for cryptoasset businesses applying for registration under the MLRs. The new webpage sets out FAQs on how to prepare for registration, associated individuals and what happens once an...
BoE speaks on money and payments
Jon Cunliffe (BoE Deputy Governor, Financial Stability) has given a speech on money and payments. Highlights include: G20 roadmap to improve cross-border payments Whilst improvements have been made since 2020, there is...
Treasury and FCA hold perimeter meeting
Treasury and FCA have published the record of their July meeting to discuss aspects of the regulatory perimeter. The issues discussed included: discussion of FCA’s plans around expectations on firms carrying out...
Regulators feed back on AI
PRA and FCA have published a feedback statement following their and BoE’s discussion paper on AI and machine learning. The paper asked for views on the role supervisors should play in supporting the safe and...
FCA publishes sample business plan
FCA has published guidance on a sample business plan for firms putting together an RBP. It says that following it should help firms to ensure they are ready, willing and organised to be authorised by FCA. The guidance...
Treasury responds on Edinburgh Reforms progress
Treasury has responded to a request from the Treasury Committee for an update on delivering the Edinburgh Reforms. It notes: reform of the ring-fencing regime: this is in progress with draft legislation being published...
HCSTC lender goes into administration
FCA has announced the administration of Novaloans Limited, an online only high-cost short-term lender and provided details of its administrators and the entity the administrators have instructed to collect all...
FCA issues further crypto-marketing warnings
FCA has continued to look closely at cryptoasset promotions following the new rules that took effect from 8 October. It has identified 3 common problems in these promotions: promotions that make claims about the safety...
FOS releases half-yearly complaints data
FOS has published data showing the number and outcome of the complaints it has handled about financial businesses for the period of January to June 2023. The key take-aways are: FOS received a total of 93,114...
FCA confirms no changes needed on SME access to FOS
On 1 April 2019, rules extending access to the FOS for more SMEs came into force. The rules allowed SMEs to access the FOS if they have a turnover of less than £6.5 million and fewer than 50 employees, or a balance...
Regulators confirm removal of bonus cap
PRA and FCA have confirmed the decision to remove the limits on the ratio between fixed and variable remuneration with effect from the end of October 2023 and which will apply to current and future performance years...
Parliament launches inquiry into regulator independence and accountability
The Industry and Regulators Committee has published a call for evidence seeing views on the work of the UK regulators, looking at their relationship with Government and how they are held to account. The inquiry covers...
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...
Government updates on Swiss FTA
The Department for Business and Trade has provided an update on negotiations towards an enhanced Free Trade Agreement between the UK and Switzerland. The second round of talks is now complete and a third round is...
JROC welcomes OBL data collection frameworks
The Joint Regulatory Oversight Committee has welcomed the publication of two data collection frameworks by Open Banking Limited, one on levelling up availability and performance and the other on mitigating the risks of...
“Sexism in the City” evidence published
The Parliamentary Committee looking into “Sexism in the City” has published 46 pieces of written evidence it received. The evidence from FCA highlighted: more diverse and inclusive firms can support better...
PRA speaks on bank failures
Sam Woods spoke at Mansion House on prudential regulation and supervision in the particular context of bank failures – looking specifically at SVB and Credit Suisse. He said that there is much to be done to...
FCA speaks on objectives
Nikhil Rathi has spoken about how to achieve the objective of international competitiveness and growth over the medium to long term. Rathi highlighted 5 key ingredients for achieving this: An operationally effective...
Basel Committee consults on crypto exposure disclosure
In December 2022, Basel Committee published its final prudential standard on the treatment of cryptoasset exposures. Following on from this, a consultation on the disclosure of banks’ cryptoasset exposures has...
PSR publishes revised penalty statement
PSR has published its revised penalty statement. The statement aims to clarify the penalties that are imposed and what to expect if PSR identifies non-compliance. PSR places ever-increasing requirements on an...
FCA fines Equifax £11m for cyber-security breach failings
FCA has fined Equifax Ltd for £11,164,400 for failing to manage and monitor the security of UK consumer data it had outsourced to its US parent, in breach of Principles 3, 6 and 7. In 2017, cyber-hackers caused Equifax...
Emma RadmoreFCA publishes quarterly whistleblowing data
FCA has published the latest data on new whistleblowing reports received between April and June 2023. In this period: There were 300 new whistleblowing reports which is an increase compared to the same period in 2022...
FCA restricts Modulr from onboarding new agents
FCA has published a restriction on Modulr, an authorised EMI, preventing it from onboarding any new agent or distributor without FCA’s consent. Existing agents and distributors may continue to distribute and...
FCA decides to fine and ban Jes Staley
FCA has decided to fine former Barclays CEO Jes Staley £1.8m and ban him from holding any senior management or significant influence function, after finding that, while he was CEO of Barclays, he had recklessly failed...
ABI urges insurers not to get left behind on DEI
ABI has published an update on progress against its three priorities of Attract, Grow and Advance set out in its DEI blueprint published this time last year. It has seen an increase in firms that now collect data on...
FPC updates on stability risks
The Financial Policy Committee’s summary of the financial stability risks following its October review notes: that more persistent inflation, higher interest rates and geopolitical tensions continue to make the...
Judicial review on ATM rate provision dismissed
PSR is pleased that the High Court has dismissed an application by NoteMachine for judicial review of PSR’s decision not to intervene in a dispute concerning concerns NoteMachine had over the fees it received for...
SFO investigates funeral plan provider
SFO has written to authorised firms asking for information to help its criminal investigation into suspected fraud by a pre-paid funeral planner, Safe Hands Plans Limited and its parent company. Nearly 50,000 plan...
PRA publishes Occasional Consultation
PRA’s latest Occasional Consultation consults on: changes to the Depositor Protection Part of the PRA Rulebook to make it easier for the FSCS to make electronic payments to eligible depositors of insolvent deposit...
FCA stops firm from approving crypto promotions
On 10 October, FCA imposed restrictions on rebuildingsociety.com Ltd to stop it from approving crypto financial promotions. The firm, which is authorised to operate an electronic system in relation to lending, was also...
FCA updates crypto application stats
FCA has updated the statistics on applications for registration by crypto firms, and its feedback on good and poor applications. As at 1 October, it had received 326 applications since registration began in January...
TPT Disclosure Framework published
The TPT Disclosure Framework, published by the Transition Plan Taskforce, contains guidance and recommendations to help companies make disclosures that are high quality, consistent and comparable. The aim of this is to...
FCA issues first alerts under new crypto marketing regime
FCA has issued 146 alerts about financial promotions in the first 24 hours of the new crypto marketing regime. These alerts contain the names of companies which may be illegally communicating cryptoasset promotions. The...
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...
Diversity and Inclusion are regulatory concerns
See our detailed analysis on the background to and proposals in PRA and FCA’s current consultations on D&I in the financial marketplace.
FCA notifies of changed Form A
As part of FCA’s overall update of authorisation application forms it is now formally launching Form A and has started contacting firms to tell them how they can access it to take part in public testing. It plans...
FCA publishes CRA undertaking
FCA has published an undertaking from Wirex Limited, in respect of unclear terms in the firm’s e-money contract, which FCA obtained using powers under the Consumer Rights Act. FCA was concerned about terms: that...
Debt packager referral fee ban implementation period ends
In June 2023, FCA published its policy statement and final rules on debt packager referral fee bans, which took effect from 2 June 2023 for new debt packager firms and their newly appointed ARs, but which existing debt...
LSB joins UK Regulators’ Network
LSB has joined the existing network of UK regulators which, from the financial services side, already includes FCA and PSR.
PRA to run dynamic insurance stress test in 2025
PRA has announced a change in approach for its 2025 insurance stress tests. The objectives of the exercise will, as ever, be to assess solvency, liquidity and risk management against specific adverse scenarios, but in...
PRA reviews Written Auditor Reporting policy
PRA has evaluated the Written Auditor Reporting policy to assess how it is delivering against its original objectives and how to refine its approach to the policy to make it a more efficient and effective supervisory...
FCA publishes platform portfolio letter
FCA has written a letter to firms that it identifies as providing a platform service, setting out the key harms in the sector, expectations of these firms and a summary of the work FCA intends to do. This follows the...
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...
FCA review: terminal illness benefits in life insurance products
FCA has published the findings from its review of terminal illness benefits within life insurance protection products. A terminal illness benefit provides an early lump sum pay-out of a life insurance policy where the...
PRA consults on reforms to Matching Adjustment
PRA is consulting on reforms to the Matching Adjustment (MA) as part of a package of measures on Solvency II. The proposals covers reforms to MA regulation relating to greater investment flexibility and revised...
FCA portfolio letter to Corporate Finance firms
FCA has written to all corporate finance firms (“CFFs”) outlining the harms to consumers and markets that it believes are most likely to arise from the business models of the CFFs and the strategy to address...