Ahead of the seventh day of debate on the FSM Bill in the Grand Committee, the House of Lords has published: a new list of amendments; a letter promised by Baroness Penn to all members on matters raised at the second...
Category - Supervision
Emma RadmoreFCA continues Consumer Duty preparation support
FCA has published a further set of portfolio “Dear CEO” letters aimed at helping firms to prepare for the final push towards Consumer Duty implementation. Its latest series of letters cover: motor finance...
Parliamentary group looks at business banking redress
An All-Party Parliamentary Group has published a report looking at compensation schemes for business banking. The report notes that bespoke ad hoc schemes have been established following specific banking scandals but...
Economic Affairs Committee looks at BoE independence
A new Economic Affairs Committee enquiry is looking at how BoE has worked in the 25 years since the Bank of England Act 1998 gave it independence and reformed its structure, responsibilities and functions. The Committee...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation on miscellaneous amendments to its Handbook. All it is consulting on is some proposed additional guidance to the Annual Claims Management Report form and minor...
Treasury calls for evidence on ring-fencing
Treasury has published a call for evidence looking at the practicalities of aligning the ring-fencing and resolution regimes for banks. The proposals build on the Skeoch review, which found that the benefits of ring...
Sixth day of FSMB debate in Lords’ Committee
The Committee stage in the Lords’ has completed its sixth day of debate on the FSM Bill. The Committee spent 2.5 hours debating a set of proposals around the creation of an office for Financial Regulatory...
PRA consults on liquidity, disclosure and proportionality
BoE/PRA has issued consultations on: liquidity and disclosure requirements for simpler-regime firms. The changes, the first in a set of changes aimed at helping firms deemed to fall within scope, would: set new...
PRA speaks on ‘Fundamental Spreads’ – next steps for Solvency II reforms
Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO, has delivered his speech ‘Fundamental Spreads’, highlighting the next steps for reforming the Solvency II insurance regulations in the UK. Mr...
FIN. TeamFCA publishes Consumer Duty programme of engagement
FCA has published a press release on its programme of engagement for the Consumer Duty, as its second batch of portfolio letters were sent on 21 February 2023. FCA’s programme of engagement sets out expectations...
FCA publishes more Consumer Duty letters
FCA has published three more letters in its series of letters to firms on preparation for the Consumer Duty. The latest set relate to: debt advice firms; debt purchasers, debt collectors and debt administrators; and...
FSMB Committee debates regulatory accountability
The fifth day of debate in the Grand Committee on the FSM Bill focussed on regulatory accountability and a set of amendments proposed by Baroness Bowles. The amendments were withdrawn as they had predominantly been...
5th day of FSM Bill Grand Committee debate to start
Day 5 of the scheduled 6 days of the Lords’ Grand Committee debate on the FSM Bill takes place on 20 February. To date, Parliament has picked out that key amendments debated have covered: revocation of retained...
PRA updates Remuneration SS
PRA has updated its SS2/17 on Remuneration following its policy statement. The changes took effect from 10 February, and add a new section covering PRA’s expectations that in principle, unvested, deferred claims...
FCA seeks views on sustainability changes in firm governance
FCA has published a discussion paper looking at how it can best support the role of the financial sector in the transition to net zero and more broadly to a sustainable future. While the paper will be of interest to all...
FCA feeds back on synthetic data
FCA has issued its feedback statement following its call for input on synthetic data. The call for input looked to probe how best to access quality data to help develop new products and services while protecting...
BoE publishes policy on outsourcing and third party risk management for FMIs
BoE has published its outsourcing and third party risk management policy for Financial Market Infrastructures (FMIs). The policy is set out across the following policy statements and documents: Policy Statement Code of...
FSMB 4th session in Grand Committee
The 4th sitting of the Grand Committee on the FSM Bill took place on 6 February. The Committee discussed: financial inclusion, both as a general principle and in terms of the reality of retail investors being excluded...
Edinburgh Reforms inquiry hears evidence
The Parliamentary Committee on the Edinburgh Reforms is currently accepting evidence, and held a formal session on 1 February at which Sir John Vickers and Sir Keith Skeoch gave evidence on ring-fencing. The evidence is...
FSM Bill amendment list updated
The latest group of marshalled amendments to be discussed at FSM Bill Committee stage in the Lords has been published. At today’s sitting, the Committee will start discussing amendments from Clause 24 onwards...
FCA publishes supervisory notice on high-cost lender
FCA has published a “further first supervisory notice” to Indigo Michael Limited, a high cost consumer credit lender. It first imposed a notice on the firm in July 2022, and now requires that: the firm must...
FCA publishes decision notice on SMF application
FCA has published a decision notice to Saranac Partners Limited. FCA has decided to refuse the application made by the firm for Thomas Kalaris to become its chief executive and hold the SMF1 and SMF3 functions. It...
FCA publishes Consumer Duty sector letters
FCA has published a set of Dear CEO letters it has sent to several sectors on preparation for the Consumer Duty. It has so far written to: asset management, custody and fund services and alternatives; consumer...
FCA steps up on fin prom actions
The latest figures FCA has published on its actions relating to financial promotions shows a huge increase in the numbers of ads it required firms to amend or remove in 2022 over the previous year. It required action...
Round up of FSMB in Lords’ Grand Committee
The FSMB has now completed 3 of its scheduled 6 sessions in the Lords’ Grand Committee. Many Lords have spoken on amendments, including several from Baroness Bowles, but so far none have been voted through. The...
FSMB Lords Committee third day
The Lords Grand Committee had its third day of discussion on the FSM Bill on 1 February. The session covered: a group of amendments designed to test how the regulators apply their competitiveness and growth objectives...
FCA and Practitioner Panel send out survey
The FCA and Practitioner Panel 2022/23 survey is now being sent to a sample of regulated firms. The survey will go to all fixed portfolio firms and a sample of 13,000 flexible portfolio firms, and will see view on how...
CMA announces new OBIE Chair
Marion King has been appointed as the new Chair and Trustee of the Open Banking Implementation Entity with effect from 1 February 2023. The outgoing chair, Charlotte Crosswell, published her summary report on the end of...
Treasury feeds back on cryptoasset promotions
Treasury has published its response to consultation on cryptoasset promotions. In summary, and in line with the decision to regulate crypto-related activities, the Government will bring promotions of cryptoassets within...
Treasury consults on crypto regulation
Treasury has published its long-awaited consultation on its plans to regulate cryptoasset activities in the UK. The consultation, which also includes a call for evidence and is accompanied by Treasury’s response...
Regulators publish CBEST 2022 conclusions
BoE, PRA and FCA have written to firms with the results of the 2022 CBEST stress test. In a letter to the SMF holders with responsibility for cyber, the letter aims to: inform firms of perceived weaknesses; enable...
PRA consults on SMCR form changes
PRA is consulting on removing certain SMCR forms from its rulebook and also increasing the period for which employment history is required. It says that by moving the forms, it means it will not need to consult...
FSMB second day of Lords’ Committee hearing
The second day of debate in the Lords’ Grand Committee consisted of a lively debate on several proposed amendments, none of which have been taken forward. Topics debated were: creating offences for abuse of...
First session of Grand Committee on FSMB
In the first session of the Grand Committee sitting on the FSM Bill, Clause 1-23 of the Bill were approved (some with amendments), and a number of Government amendments were also agreed. There was lengthy discussion on...
FCA makes BSPS extended asset retention rules
FCA has confirmed its new rules that extend the asset retention requirement for firms who advised British Steel pension scheme members on transferring out. The new rules, effective from 31 January (when the current...
TheCityUK reports on more efficient authorisations
TheCityUK has published a report recommending actions that would improve the speed, efficiency and effectiveness of the PRA and FCA authorisation process. The increasing delays in the process are costing firms money and...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
Culture Board winding up
The Financial Services Culture Board is to wind up. The Board is a not-for-profit voluntary membership body and has decided it cannot be confident it will have the income to take it to the end of 2023 and has therefore...
FCA publishes multi-firm review of Consumer Duty preparation
FCA has published the conclusions from a multi-firm review it carried out to gauge firms’ preparations for the implementation of the Consumer Duty. It asked a range of larger retail firms within its fixed...
FCA updates on how to complain
FCA has updated its information page on how to complain about the regulators. The new information notes that complainants need not wait for one complaint to be concluded before starting another but stresses that the...
FCA updates on MFA
FCA has updated its resources on the introduction of MFA for use of Connect, Reg Data, Fees Portal, the SIS and ESS. New guidance looks at how firms and their compliance consultants will need to be set up so that...
FCA updates Consumer Duty resources
FCA has updated its information summary page on the Consumer Duty to include more detail on its expectations on firms applying now for authorisation. It expects firms to provide it with all policies, processes, MI and...
FCA speaks on “better foundations” in AI
Jessica Rusu, speaking at the Alan Turing institute, has addressed the critical considerations for the best use of AI in financial services. She said that: AI regulation in financial services needs to be built on a...
Parliament to debate crypto regulation
A debate on the regulation of cryptocurrencies is set to take place on Wednesday 25 January, led by Dr Lisa Cameron. The House of Commons has published the debate pack which sets out the issues and topics which will be...
PSR discusses barriers to digital payments
On 29 November 2022, PSR held a roundtable discussion about the barriers to digital payments for people who primarily rely on cash. The discussion focused on: the reasons people continue to rely on cash, such as control...
BoE publishes response to remit for PRC – Jan 2023
The BoE has published its response to the remit for the Prudential Regulation Committee (19 January 2023) in its letter from Andrew Bailey, Governor, to Jeremy Hunt, Chancellor. The letter responds to the...
Committee stage of FSMB in Lords starts 25 January
The Committee stage in the Lords will debate the FSM Bill starting on 25 January. 5 sittings have been scheduled, for 25 and 30 January, and 1, 6 and 9 February Further amendments have been tabled for discussion...
FCA starts thematic review of retirement income advice
FCA is undertaking some discovery work looking at how financial advisers are delivering advice on retirement income, with a view to assessing the quality of the outcomes consumers are getting. FCA says that since 2015...
Further FSMB amendments for Lords Grand Committee
Further amendments, and an updated running list of amendments, to the FSM Bill to be discussed in the Lords Grand Committee have been published. Among the latest additions are changes which would: remove short selling...
Treasury Committee publishes FCA information request
The Treasury Committee has published a letter sent to Nikhil Rathi on 1 December, asking for details on: total vacancies FCA has in specific areas, by grade, job and which ones require data or technology skills; how FCA...
FCA releases Consumer Duty podcast
FCA has released an “insider FCA” podcast on the Consumer Duty, looking at understanding the products and services outcome.
FSMB: Further Lords amends for debate
Further amendments to the FSM Bill have been published for debate in the Lords Committee. They relate mainly to: FCA powers beyond designated activities, aimed at giving it appropriate powers to take action against...
Lords publishes FSMB amendments for Committee
The House of Lords has published a set of amendments to the FSMB for discussion in the Grand Committee, which is now scheduled to sit on 25 and 30 January and 1 February. The amendments include several amendments that...
FCA updates whistleblowing figures
FCA has published its quarterly data for Q3 2022 on reports from whistleblowers. Between July-September 2022 it received 291 reports containing 734 allegations, mainly through its online reporting function, but with...
FCA extends confirmed guidance on motor ads
FCA has extended its confirmation of the Radiocentre industry guidance on ensuring financial promotions for motors brands on radio are clear, fair and not misleading and compliant with CONC. The guidance is now...
Regulators consult on MELL
PRA and FCA are consulting on the FSCS Management Expenses Levy Limit for 2023/24. The proposed level is £109.8m, slightly lower than the current year. It would apply from 1 April 2023. Consultation closes on 9...
FCA Portfolio letter- wholesale brokers
FCA has written a portfolio letter to the wholesale broking sector. The letter notes that although generally brokers do not aim to take market risk in their core activities, there have been significant periods of...
EBA publishes peer review of PSD authorisation processes
EBA has published a peer review on authorisation of payment and e-money institutions under the Payment Services Directive (PSD2). It covers a three year period from 1 January 2019 – 31 December 2021. This falls...
BoE (PRA) publishes Dear CEO Letters – 2023 Priorities for Insurance supervision, International Banks active in the UK, and UK Deposit Takers Supervision
On 10 January 2023, the BoE (PRA) published the following Dear CEO letters outlining its key supervisory priorities for insurers, international banks active in the UK, and UK Deposit Takers in 2023: Insurance...
FCA updates on Skilled Persons reports
FCA has published the figures for its Skilled Persons reports commissioned in the period from July to October 2022. 11 were commissioned in total, with 4 in the retail investments area, none for general insurance and...
FSMB completes second reading in Lords
The FSMB had its second reading in the Lords on 10 January. Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...
Market Watch looks at DRSP service
Edition 72 of FCA’s Market Watch looks at the quality of service that Data Reporting Services Providers give. Given the importance of DSRPs to the functioning of wholesale markets and promoting transparency and...
FCA Publishes Portfolio Strategy Letter for CMCs
The FCA has published its Portfolio Letter outlining its Portfolio Strategy for Claims Management Companies (CMCs). The FCA sets out its updated view of harm and key risks that CMCs pose to their customers, its...
Treasury publishes AML and CFT supervision report
HM Treasury has published its “Anti-money laundering and countering the financing of terrorism: Supervision Report 2020-22“. The report addresses the performance of anti-money laundering (“AML“)...
Stephen WilsonFCA imposes restrictions on investment firm
FCA has published a first supervisory notice to Pello Capital Limited imposing various requirements on it with immediate effect (from the date of its publication on 15 November), as a result of concerns about the...
FCA removes temporary permissions for missing landing slots
FCA has started using its powers to remove temporary permissions from firms in the TPR who missed their landing slots. Lyonnaise de Banque missed its allocated slot, which gave it until 31 March 2022 to apply. FCA has...
Regulators consult on removing bonus cap limits
The FCA and PRA have released their consultation paper (PRA CP 15/22 | FCA CP22/28) on their joint proposed rule changes to remove the existing limits on the ratio between fixed and variable components of total...
Consumer Duty events
The FCA has announced it will be hosting a series of live and local events on the Consumer Duty across the UK between February and June 2023. The paid for events are aimed at retail investment and mortgage firms, and...
FCA updates Consumer Duty information page
FCA has updated its general information page for firms on the Consumer Duty. The page sets out brief guidance on: FCA’s expectations for outcome monitoring: FCA notes that without appropriate monitoring of...
FCA makes new rules
FCA’s latest Handbook Update confirms the following new rules: the Non-Workplace Pensions Instrument, which takes effect from 1 December 2023 and puts in place changes designed to help non-workplace pension savers...
Regulators update on Open Banking
Treasury, the CMA, FCA and PSR have issued a joint statement updating on their work on Open Banking. The Joint Regulatory Oversight Committee created in March is currently focussing on making recommendations for the...
Treasury Committee approves FCA chair
The Treasury Committee has approved the appointment of Ashley Alder as Chair of the FCA. It discussed his views on relevant topics and competence for the role, and noted that, moving as he is from a jurisdiction of...
FCA to require MFA for Connect
FCA has announced it is to require multi-factor authentication for access to all its online resources like Connect, Reg Data and the Fees Portal, with effect from 20 January 2023. Users will need to enter a one time...
BoE consults on wholesale cash distribution
The Bank of England is consulting on how it will use the new powers it expects to get under the FSMB to ensure effective, resilient and sustainable distribution of wholesale cash. The current wholesale distribution...
The Edinburgh reforms – and more
See our article, summarising various FIN posts over the past week on the state of play of the FSM Bill and the Edinburgh reforms.
FCA writes to life insurers on cost of living help
FCA has written a Dear CEO letter to the life insurance sector setting out its expectations on firms during the cost of living crisis. It reminds firms: to give protection insurance customers appropriate information at...
FCA announces ESG Advisory Committee to its Board
FCA has announced a new advisory committee to its Board which will focus on supporting FCA with its ESG-related responsibilities. This is intended to align with the UK’s commitment to achieving a net zero economy...
UK to seek enhanced FTA with South Korea
The Government has started preparations to negotiate an enhanced free trade agreement with South Korea. It has published a Call for Input asking for views which will help it shape the negotiations, and asks for views by...
FCA publishes D&I review
FCA has published a report following its multi firm review of how firms are designing and embedding D&I strategies. Its review covered 12 fixed portfolio firms across multiple sectors, and consisted of it asking for...
FCA fines Metro Bank for Listing Rule breaches
FCA has fined Metro Bank over £10m and has also decided to fine its former CEO and CFO £223,100 and £134,600 for being knowing concerned in the bank’s breach of the Listing Rules, which involved publishing...
Treasury makes recommendations to PRA and FCA
Treasury has published its correspondence setting out recommendations for PRA and FCA, which coincide with the announcement of the Edinburgh reforms. Treasury is required, at least once each Parliament, to set out...
FSM Bill for Lords published
The new version of the Financial Services and Markets Bill, following the end of the Commons Stage, has been published, as the version read in the Lords on 8 December.
Treasury consults on PAR information requirements
Treasury is consulting on the customer information requirements in the Payment Accounts Regulations. It is reviewing the requirements in the Schedules to the Regulations, in the expectation that many of them are too...
Treasury consults on PRIIPs and UK Retail Disclosure
Treasury is consulting on plans to revoke the PRIIPs Regulation and replace it with a more suitable alternative. The PRIIPS Regulation has not been popular, with key criticisms being that it requires misleading...
Treasury responds on ring-fencing changes
Treasury has published the Government response on the recommendations of the Independent Panel on ring-fencing and proprietary trading. The report had made several recommendations to reduce the rigidity of the regime...
Treasury consults on CCA reform
Treasury is consulting on reform of the Consumer Credit Act. This is the first consultation following its announcement in June that it would undertake reform, and seeks views on the strategic direction of the reform...
Treasury publishes FS law Brexit strategy
Treasury has published a Policy Paper setting out how it intends to deal with retained EU law in the financial regulatory sector. The Policy Paper says that the FSMA model, with the operationally dependent regulators...
FCA updates SMF and related pages
FCA has updated several parts of its website relating to its approval process for senior manager and other individual applications. The updated pages include: details on the approved persons process generally; how to...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
FSM Bill – Lords dates announced
The FSM Bill as amended after its passage through the Commons has now had its first (routine) reading in the Lords. The Lords’ second reading has been set for 10 January 2023.
FSM Bill report stage
As scheduled, the FSM Bill had its report stage on 7 December and, eventually, at nearly 7pm, the Third Reading of the Bill took place and was agreed to. The Bill now moves to the Lords. While we still await the new...
New AR rules take effect
The FCA’s reforms to the appointed representative regime have come into force and the FCA has published a new webpage setting out information on the s165 requests it will be sending to principal firms. As a...
UK regulators consult on DRCF workplan 2023-24
The Digital Regulation Cooperation Forum (DRCF) – made up of the FCA, CMA, ICO and Ofcom – is calling for input on its workplan for 2023-24. The consultation invites stakeholders to share their views on...
FSB holds Basel plenary
The FSB Plenary met in Basel to review vulnerabilities in the global financial system and to discuss policy work in several areas including crypto. The Plenary also agreed its work programme for 2023. Financial...
Memorandum of Understanding between UK and Banco de Portugal
FCA has published a Memorandum of Understanding (MoU) which has been made between the PRA and FCA and Banco de Portugal for the purposes of supervisory cooperation. This is the latest in a series of MoUs made by the UK...
FCA consults on fin proms gateway
Following Treasury’s 2020 consultation, the FCA has launched its own consultation on the introduction of a gateway for firms who wish to approve financial promotions on behalf of unauthorised persons. The paper...
Dear CEO letter outlines strategy for financial advisers
The FCA has published a portfolio letter which sets out its supervisory strategy for financial advisers and intermediaries. The letter confirms that financial advisers are a key priority for the FCA and outlines the...
FCA updates on debt packager proposals
Following its November 2021 consultation on plans to ban debt packagers from receiving referral fees from debt solution providers, the FCA has provided an update on its proposals. The FCA will set out its proposed next...
FSMB amendment paper published
In advance of the FSM Bill starting its report stage on 7 December, the House of Commons has published an updated version of the amendment paper which lists all amendments tabled to the Bill together with any withdrawn...
EIOPA publishes discussion paper on assessing insurers’ sustainability
EIOPA has published a Discussion Paper (DP) on assessing the prudential treatment of insurers’ sustainable assets and activities. Given that insurance underwriting and investment activities can be profoundly...