FCA, Ofgem, Ofcom and Ofwat have published a joint Dear CEO letter calling on firms to support customers struggling with the increased cost of living and keep prices fair. The letter notes FCA’s Financial Lives...
Category - Supervision
Laura WilesFCA outlines concerns with sustainability-linked loans market
FCA has published a letter to heads of ESG and sustainable finance, setting out its review of the sustainability-linked loans (SLL) market. Interest rates in SLLs are linked to meeting certain agreed sustainability...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
Emma RadmoreGovernment and regulators agree consumer support action plan
Chancellor Jeremy Hunt has chaired a roundtable with CEOs from CMA, FCA, Ofcom, Ofgem and Ofwat as part of the Government’s plan to halve inflation this year and return to the 2% target. Treasury expects that the...
FCA speaks on innovation in financial services
Sheldon Mills, Executive Director of Consumers and Competition at FCA, has delivered a speech at the CityUK Annual Conference on how innovation and regulation in financial services can drive the UK’s economic...
FCA updates on Consumer Duty – one month to go!
FCA is pleased with the preparations many firms have made for the Consumer Duty, and has highlighted 10 questions it thinks firms could be usefully asking themselves. The key questions include: whether a firm is...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
PRA publishes authorisations performance report
PRA’s report on its authorisations performance during Q1 2023/24 shows delays in applications for new authorisations – although these are based only 5 cases during the period, PRA achieved its standard in 4...
Commons reconsiders FSM Bill
On 26 June the House of Commons considered the version of the FSM Bill returned to it from the House of Lords. It published its views on aspects of the Bill where it disagrees with Lords changes. While there was...
FCA speaks on cultural evolution
Emily Shepperd of FCA spoke on how culture needs to change to meet expectations. She focussed on how generational changes can fundamentally change culture. She said it is now critical to find a common path, for leaders...
PRA publishes insights from thematic review addressing insurance claims inflation
The PRA has published its follow up letter to Chief Actuaries of general insurance firms and Lloyd’s Managing Agents regulated by the PRA. The letter provides insights from the PRA’s thematic review of...
FIN. TeamFSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
BoE updates on CHAPS APP plans
The Deputy Governor of BoE has written to the Treasury sub-committee on Financial Regulation to update on progress on protection from APP fraud within the CHAPS system. The letter confirms the BoE’s intention to...
BoE speaks on enforcement approach
Oliver Dearie has spoken on the rationale behind the proposed changes to the way in which BoE is looking to change its approach to enforcement. He said the proposals reflect lessons learned over the past decade and...
Lords passes FSM Bill
The FSM Bill has had its third reading in the Lords, and has been passed and returned to the Commons as amended in the Lords. The Commons now needs to consider the Lords’ amendments, and, if all is agreed, the...
BoE launches system-wide exploratory scenario
BoE has launched its first system-wide exploratory scenario exercise. The exercise will include banks, insurers, CCPs and a variety of funds and will look to see how all these market players behave in stressed market...
PRA letter to CROs provides feedback on funded reinsurance arrangements
The PRA has published a Letter from Charlotte Gerken, Executive Director, Insurance Supervision, to Chief Risk Officers (CROs) of life insurance firms sharing insights and feedback on the PRA’s preliminary thematic...
LSB reviews business lending code
LSB is consulting on its review of the Standards of Lending Practice for business customers. The consultation contains questions relating to: The impact of economic and regulatory developments Protections for customers...
BoE speech: building blocks of resilience
Sarah Breeden, BoE Executive Director of Financial Stability, Strategy and Risk, has delivered a speech on resilience within Liability Driven Investment (LDI) funds at Westminster Business Forum policy conference. The...
Tribunal gives preliminary ruling on Havilland/Final Notice reference
The Tribunal has published its decision on the preliminary issue relating to the Bank Havilland action, under which David Rowland referred all notices to the Tribunal on the basis they contained statements prejudicial...
FSM Bill: Lords Report stage day 3
Day 3 of the debate on the FSM Bill at Lords Report stage included: a debate on forest risk commodities, which was approved on a vote; a proposal for a number of amendments relating to liability of PSPs for fraudulent...
FOS publishes annual complaint data stats
FOS has published the annual complaints data for the 2022/23 financial year and commented on the common themes. Of the most complained about products current accounts had a 40% uphold rate; credit cards 34%...
FSMB Lords Report stage day 2
Day 2 of the Report stage for the FSM Bill took place on 8 June. In the first session, the Lords debated clauses including those on: reporting requirements under the competitiveness and growth objective, a Government...
‘Scale challenger’ banks respond to Treasury Committee on savings rates
The Treasury Committee last month expanded its campaign for banks to increase savings rates offered to loyal customers, questioning why easy access savings rates are much lower than the current BoE base rate. The...
FCA publishes crypto promotion final rules
FCA has published a policy statement on financial promotion rules for cryptoassets following its January 2022 consultation. The consultation proposed to clarify cryptoassets as “Restricted Mass Market...
Lords complete first day of FSM Bill Report stage
During the first day of Report stage in the House of Lords on the FSMB, the sessions debated key matters including: amendments in relation to the revocation of retained EU law to require meaningful Parliamentary...
FCA bans debt packager referral fees
FCA has made its final rules banning debt packager firms from operating a business model that incentivises them to recommend options that make them more money rather than those that are in their customer’s best...
FCA urges “do the right thing”
Therese Chambers has spoken on the importance of people in the financial services sector doing the right thing on a day to day basis, and how well run firms will achieve better outcomes for their clients. She noted some...
FCA updates on changes for credit unions
FCA has published a new website page on the changes the FSM Bill proposes for credit unions. It highlights to credit unions that, if the changes come into law, any firm wanting to take advantage of them will need to...
FSCS confirms latest 2023/24 levy forecast of £270m
The FSCS has published its latest Outlook update, which includes its revised compensation and levy forecasts for 2023/2024. The update confirms the FSCS has revised its levy forecast for 2023/24 to £270m. While this is...
FCA updates authorisation pages
FCA has updated its website to create a new page on applying for authorisation, and has updated existing pages on the authorisation process, preparing the financial information required and application fees.
FCA takes action on redress for borrowers
FCA has updated on its work with nearly 100 lenders on how they treat borrowers in financial difficulties. It identified a number of failings, including failure to tailor support to the circumstances of relevant...
LSB looks at access for d/Deaf customers
LSB has published a report looking at how better to drive inclusion for d/Deaf customers in the banking and credit sector. The report highlights the challenges these customers face, and LSB hopes it will enable firms to...
CMA finds provisional breach in bond information sharing
CMA has provisionally found that Citi, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada each unlawfully shared competitively sensitive information in one-to-one Bloomberg chatrooms. It found the breaches...
FCA publishes authorisations metrics Q4 2022/23
FCA has published its authorisations metrics for the quarter ended March 2023. The metrics show that FCA is continuing to make progress towards meeting its targets, and that it has improved on the significant delays...
FCA takes further action on BSPS advice and offers
FCA has taken action against a third firm that had made unsolicited offers to clients who had been BSPS members. David Stock & Co offered £50 to clients who had not yet complained. FCA has imposed requirements on...
Treasury concludes FSF review
Treasury has formally concluded the FSF review, following the publication of its December policy statement. FCA has updated its website to reflect what it will be doing to help deliver on the changes, including how it...
FCA gets distribution orders on investor scams
FCA has obtained 2 orders that will return over £130,000 to victims of unauthorised business scams: in relation to an unauthorised collective investment scheme set up and operated by Synergy Lands Group Limited between...
PRA speaks on use of data
Rebecca Jackson of PRA has spoken on how it uses supervisory and firm data. She explained the major shift in PRA strategy which started to coincide with Brexit. She noted that PRA makes use of structured, quantitative...
FSMB: Lords report stage scheduled for 6 June
The report stage in the Lords for the FSM Bill will start on 6 June. There is no set length of time for it to last, although further sittings have already been scheduled for 8 and 13 June.
FOS publishes discrimination complaints guidance
FOS has published an information page for firms dealing with complaints relating to discrimination. Complaints include: that financial services providers have not made reasonable adjustments to take account of a...
FCA speaks on NBFI and essential data
Ashley Alder, FCA Chair, has spoken to the Managed Fund Association’s summit. He spoke on the role of the diverse investment and funding markets which are not banks – all of which share the feature of not...
FCA consults on remuneration for dual regulated firms
The FCA is consulting on its proposed changes to the remuneration rules for dual-regulated firms. The consultation (CP23/11) aims to ensure that remuneration rules for smaller, less complex firms that fall under dual...
FCA publishes portfolio letter for SIPP operators
FCA has published a portfolio letter to SIPP operators which sets out its view of the key harms in the SIPP operator portfolio, its expectation as to how firms should mitigate these harms, and how its expectations in...
Treasury calls for proposals on growth and competitiveness metrics
Treasury has published a call for proposals on which metrics FCA and PRA should publish in relation to the secondary growth and competitiveness objectives introduced under the FSM Bill. The consultation notes that the...
PRA publishes policy statement on SMCR form changes
Following its January 2023 consultation, PRA has published a policy statement setting out changes to the SMCR forms in its Rulebook. In particular, PRA will: Amend the Senior Managers Regime – Applications and...
FCA publishes Q1 fin proms data
The Financial Promotions data from Q1 2023 shows that 2235 promotions were amended or withdrawn as a result of FCA intervention. Nearly half of these were identified by FCA’s own proactive monitoring and almost...
BoE consults on approach to enforcement
BoE has published a consultation paper on its approach to enforcement. In particular, it proposes making a number of amendments to existing documents, creating a consolidated set of statements of policy entitled...
FCA publishes report on 2022 whistleblowing survey
FCA has published a report setting out the findings from its whistleblowing qualitative assessment survey 2022, which engaged with a small sample of recent whistleblowers who disclosed concerns about wrongdoing to the...
BoE speech: challenges and opportunities for the mutual sector
David Bailey, BoE Executive Director for UK Deposit Takers Supervision, has delivered a speech including many references to Eurovision entries but substantively on credit risk at The Building Societies Association...
FCA consults on resilience data
FCA is consulting on a proposal to bring all full permission consumer credit firms within the scope of firms who need to provide it with baseline financial resilience data. This follows its new final rules on FIN073...
PRA speech: moderation in the Bulk Purchase Annuity market
Charlotte Gerken, PRA Executive Director – Insurance, has delivered a speech on trends in the Bulk Purchase Annuity (BPA) market at the 20th Annual Conference on Bulk Annuities. The speech noted that pension...
Tribunal finds against FCA on individual fine/ban
The Upper Tribunal has published its decision in Markos Markou v FCA. FCA had decided to fine Mr Markou £25,000 and ban him. Mr Markou was sole director of a small mortgage and insurance intermediary (FSE). After a...
FCA warns firms on overseas referrals
FCA has warned firms of the risks to consumers when overseas firms refer DB scheme members living overseas to UK firms for pension transfer advice. The overseas adviser is usually wanting the scheme member to transfer...
FCA publishes aggregate complaints data for H2 2022
FCA has published its overview of complaints in the second half of 2022. Overall it found: a decrease of 6% in complaints compared to H1, largely due to decreases in complaints about banking and credit cards, insurance...
FCA speaks on regulation and Fintech
Emily Shepperd spoke at City Week on how the FCA, and regulation generally, can help firms innovate and embrace Fintech. She spoke of challenges to the traditional banking model and what banks had done to address them...
Treasury Committee publishes exchange of letters with FCA
The Treasury Committee has published its request to FCA to provide it with information on key elements of its regulation following Nikhil Rathi’s appearance before it in early March, and FCA’s response. The...
FCA responds on savings rates
FCA has responded to the Treasury Committee’s enquiries on what analysis it had done on on whether banks were making disproportionate profit by increasing mortgage rates more quickly than savings rates...
PSR speaks on payments priorities
Kate Fitzgerald has spoken on the next evolution planned for UK payment systems. She focussed on open banking, which currently has over 7 million active users in the UK, and the next steps outlined by the JROC. She...
FCA speaks on green mortgages
David Geale has spoken on FCA’s view of green mortgages. He said that every part of the housing chain has a role to play, and that lenders are risking missing their decarbonisation targets if they do not evolve...
FOS updates on wider implications framework
FOS has updated its website on how it works with other organisations to assess issues that can have a wider impact across the financial services industry. The members are FOS, FCA, FSCS, The Pensions Regulator and MaPS...
BoE updates on improvements to depositor outcomes
Following its December 2021 policy statement on the approach to setting a minimum requirement for own funds and eligible liabilities (MREL), BoE considered whether recent innovations in technology in the banking system...
Regulators publish “critical third parties” survey
BoE, PRA and FCA have published a survey to help their analysis into the costs and benefits of a potential critical third party regime. The survey asks for information about implementing and complying with potential...
FCA to lead GFIN Greenwashing TechSprint
FCA is inviting all UK firms interested in participating in the GFIN’s first ever greenwashing TechSprint to apply for it. FCA is leading the initiative involving 13 regulators and 80 international organisations...
FCA updates Consumer Duty letters with CFD provider letter
FCA has published its portfolio letter to CFD providers on preparing for the Consumer Duty. As with the other letters, it reminds firms of the implementation timeline and key elements of the duty, with details of the...
FCA and ASA partner with Love Islander to educate fin-fluencers
FCA and ASA have teamed up with former Love Island contestant Sharon Gaffka to help educate fin-fluencers about the risks of promoting financial products. The regulators have previously issued warnings to fin-fluencers...
PRA publishes 2023/24 FSCS management expenses levy limit
PRA has published a policy statement which contains its final policy following its consultation on the FSCS Management Expenses Levy Limit (MELL) 2023/24. The consultation proposed a MELL of £109.8 million for 2023/24...
PRA publishes market views on liquid asset usability
BoE/PRA have published a Feedback Statement in response to their March 2022 Discussion Paper on the prudential liquidity framework and liquid asset usability. The Liquidity Coverage Ratio (LCR) was introduced to promote...
FCA consults on fees and levies for 2023/4
FCA is consulting on rates for its regulatory fees and levies for the next financial year. In terms of the AFR allocation, most firms will see an increase of between 8-10%. Most periodic fees will see a small increase...
FCA publishes Business Plan
FCA has published its Business Plan for 2023/24. It plans to accelerate its work in 4 areas: putting consumers’ needs first; preparing financial services for the future; strengthening the UK’s position in...
PRA censures Wyelands Bank for governance failings
PRA has censured Wyelands Bank Plc for wide-ranging and significant failings in its governance, controls and risk management procedures over a period from the end of 2016 to mid 2020. The failings related to: large...
Government publishes paper on whistleblowing framework review
Government has published a policy paper on its review of the whistleblowing framework terms of reference. The review will examine the effectiveness of the framework in meeting its original objectives under the Public...
PRA publishes policy statement on depositor protection rules changes
PRA has published a policy statement providing feedback on responses to its consultation on depositor protection. It also contains PRA’s final rules concerning the relevant amendments to the Depositor Protection...
FCA makes new rules
FCA’s latest Handbook Notice confirms: changes to the FSCS MELL effective from 1 April; amendments to Consumer Duty rules: these changes result from questions FCA has received. The key clarifications confirm how...
Treasury and regulators consult on SMCR
Treasury has published a call for evidence and PRA and FCA have published a discussion paper on the effectiveness of the SMCR. The papers, which result from the announcement of the Edinburgh Reform package, seek views...
FPC highlights NBFI resilience
The headlines from the FPC’s March report are: that overseas bank failures have increased investor caution; UK banks are resilient and are strong enough to support households and businesses; UK household and...
BoE and PRA feed back on cyber stress test results
The BoE and PRA have written to FMIs and PRA-regulated firms setting out the thematic findings from the 2022 Cyber Stress Test. The test looked at a hypothetical data integrity scenario in retail payments in which a...
PRA speaks on UK insurance sector risks
Shoib Khan, the PRA’s director for insurance supervision, has given a speech on the current risks facing the UK insurance sector. He highlighted that insurers should examine beyond the structure of their models...
Lords Committee finishes FSM Bill debate
The tenth and final sitting in the House of Lords Grand Committee on the FSM Bill took place on 23 March. The discussion moved to: adding new regulated activities in relation to climate and nature offsets, tabled by...
Government responds on Silicon Valley UK rescue
The BoE and Government have responded to the Treasury Committee’s queries on the collapse and subsequent purchase by HSBC of Silicon Valley Bank UK. BoE was asked how the bank was supervised before its collapse...
FSM Bill 9th Grand Committee session
The 9th Lords Grand Committee session on the FSM Bill took place on 21 March. Topics debated were: the proposal to limit the powers of PRA to prevent a matching adjustment being applied to a portfolio of high risk or...
FCA updates on Climate Financial Risk Forum
The Climate Financial Risk Forum, established in 2019, is currently nearing the end of its third session, which started last April. It has published a third round of guides to help the financial sector develop its...
Banks respond to Treasury Committee on savings rates
The Treasury Committee had written to Barclays, HSBC, Lloyds and NatWest as part of its inquiry into retail banks, asking them about savings rates. As a result of the responses it has now written to the FCA. The...
FCA speaks on simplified advice and advice/guidance distinction
Therese Chambers, director of Consumer Investments at FCA, has spoken on the progress FCA has made in the past 10 years on getting a well working consumer investment market. While noting the successes of the RDR, she...
LSB publishes Customer Vulnerability report
The LSB has published a report reviewing customer vulnerability in the banking and lending sector. Overall, the LSB concluded that it was clear that firms are committed to meeting the requirements set out in the...
Regulators respond to FINMA action
Following the announcement from the Swiss authorities of a range of actions to support financial stability in the wake of the concerns over Credit Suisse, FCA has indicated that the UK regulators are minded to approve...
FCA priorities for payments firms
The FCA has published a portfolio letter setting out its priorities for payments firms. The FCA raised concerns that many payments firms do not have sufficiently robust controls, and it considers this an increased risk...
FCA sends out Consumer Duty survey
FCA has sent its promised Consumer Duty firm survey to a sample of small and medium sized firms. It wants to use the survey (which is anonymous) to understand the progress firms are making towards implementation.
FSM Bill Committee day 8
On 13 March 2023, the House of Lords Grand Committee continued its line by line examination of the FSM Bill, which took place during the eighth day of committee stage. The amendments that were discussed covered clauses...
Government and BoE facilitate sale of Silicon Valley Bank UK to HSBC
On 13 March 2023, Silicon Valley Bank (UK) Ltd (SVB UK) was sold to HSBC for £1, enabling customers of SBV UK to access their deposits and banking services as usual. The sale was facilitated by BoE in consultation with...
BoE consults on the non-performing exposures capital deduction
The BoE (PRA) has published its consultation paper (CP6/23) on the non-performing exposures capital deduction. The PRA is proposing to remove the Common Equity Tier 1 (CET1) deduction in the PRA Rulebook, which relates...
FCA issues Supervisory Notice to Roark Holdings Ltd
FCA has issued a Supervisory Notice to Roark Holdings Ltd varying the firm’s authorisation under the PSRs 2017 by imposing restrictions on its business due to the firm’s failure to inform the FCA of a major...
BoE reports on climate risks and regulatory capital frameworks
The BoE has set out its latest thinking on climate-related risks and regulatory capital frameworks. The report includes updates on: capability and regime gaps; capitalisation timelines; and areas for future research and...
Parliament to debate acceptance of cash
On Monday 20 March, Parliament will debate petitions relating to the acceptance of cash. The session will be lead by Martyn Day MP. One petition, which has more than 33,000 signatures, seeks to ‘make it unlawful...
FCA publishes its Perimeter Report 2023
The FCA has published its latest annual Perimeter Report. It highlights some of the challenges faced within the current financial services regulatory perimeter and signposts desired future action the FCA would like to...
FCA publishes FGF’s multi-firm review
The FCA has published its findings and expectations of FCA solo-regulated fast-growing firms to identify, assess and manage the risks arising from their activities. In particular, this multi-firm review of 25 FCA solo...
Andrew Griffith speaks on Edinburgh Reforms progress
Economic Secretary to the Treasury, Andrew Griffith, has spoken on the progress of various elements of the Edinburgh reforms including giving his update on the FSM Bill. He focussed on the new duty on PRA and FCA to...
FSM Bill Committee day 7
On the seventh day of debate in the Lords’ Grand Committee, the Committee: continued its debate on climate issues – including on PRA risk weightings and solvency capital requirements, and a ban on regulated...
FCA takes further action on crypto ATMs
FCA has undertaken an exercise with the Metropolitan Police which has resulted in the discovery of several illegally operating crypto ATMs in East London. FCA is now working with the National Economic Crime Centre to...
SME liaison panel gives BBRS views
Antony Townsend, Chair of the SME liaison panel, has responded to the BBRS Post Implementation Review. The panel is pleased the report recognised the issues the scheme faced. However, the panel is concerned that the...