Treasury has published exchanges of letters between Andrew Griffith and the FCA and PRA, in which he asked for an update on what the regulators had done to improve operational effectiveness. The responses focussed...
Category - Supervision
Emma RadmoreFCA still concerned about CFD firms
FCA has written to the CEOs of firms that offer CFDs reminding them about the potential for substantial losses to be suffered by those who invest in them. FCA says around 80% of customers lose money when investing in...
FCA consults on pension dashboards and makes rules on non-workplace pensions
FCA has published proposals to enable pension dashboard operators to offer additional services that will improve engagement with pensions, provided they meet required standards. The additional services could include...
FOS updates webpage on BSPS complaints
Following the publication of the FCA’s final BSPS redress scheme rules, FOS has published a press release and has updated its webpage on complaints relating to financial advice received in respect of transferring...
FCA consults on fees and levies for 2023/24
The FCA is consulting on proposals for changes to its policy on how it raises regulatory fees and levies. The consultation paper covers: the fees for principal firms of ARs; options for redefining fees calculations for...
PRA finalises changes following depositor protection consultation
PRA has published its Policy Statement CP9/22, which gives feedback on the response to the Depositor Protection Consultation Paper (CP). CP9/22 also contains PRA’s final rules. PRA proposed to delete the Dormant Account...
FIN. TeamFSMB: Government U-turn on intervention power
The Treasury Committee has published correspondence that now confirm the government will not proceed with its controversial intervention power that it had intended to introduce into the FSM Bill. The power would have...
FCA speaks on D&I
Sheldon Mills has spoken to the ABI on driving change in D&I within the FS industry. He noted that the insurance industry is not currently attractive to minority ethnic talent, although is generally a good place to...
Emma RadmoreFCA creates function to help new firms
FCA has created a new “early and high growth oversight” unit to help newly authorised firms adapt to compliance with FCA Rules. FCA has found that as new firms often grow quickly, any compliance errors can...
FCA consults on credit information improvements
FCA has set out its initial findings from a credit information market study in an interim report and discussion paper and its annexes. The study was launched because of concerns about the quality of credit information...
FOS publishes Independent Assessor’s report
The Independent Assessor’s annual report on FOS notes that, during the financial year 2021/22, FOS resolved nearly 220,000 cases. Only 1.9% of those customers complained about the service to FOS and only 0.3%...
Regulators respond to MP on HBOS investigation queries
Sam Woods (PRA) and Nikhil Rathi (FCA) have written to Kevin Hollinrake MP on behalf of the APPG on Fair Business Banking. The regulators have responded to Mr Hollinrake’s questions following the closure of...
FCA speaks on “rolling regulation forwards”
Nikhil Rathi spoke to UK Finance on three key developments which he said will drive regulation forwards: the Consumer Duty: he discussed FCA’s reasons for introducing the Duty, and how FCA would be looking to...
New FSMB Amendments published
The House of Commons has published an amendment paper for the FSM Bill, tabling two new additional clauses. The new clauses relate to stewardship reporting requirements for OPS and for large institutional investors...
FOS feeds back on future funding
FOS has published feedback following its discussion paper on its future funding. Following comments, it will not take forward some of the options on which it sought views, such as charging professional representatives...
Financial Services Culture Board reveals 2022 employee survey results
The FSCB survey shows that, over the seven years since it started, firms have shown steady improvement overall in scores related to leadership, taking responsibility and speaking up and being open to challenge. ...
FCA gets judgment against unauthorised mortgage broker
FCA has obtained a judgment against a company, its parent, their director and his father. It found they arranged high-interest, unaffordable bridging loans for vulnerable consumers who were about to be evicted from...
FCA bans director
FCA has banned Ashkan Zahedian, former sole director of an authorised consumer credit firm, following his conviction for serious, violent offences that took place while he was an approved person. FCA said the offences...
FCA updates ARs page
FCA has updated its website page on Appointed Representatives, to reflect the changes coming in on 8 December. Among other things, the page reminds firms of: the s165 information request that principals will receive...
FCA places requirements on firm that gave misleading information
FCA has issued two supervisory notices against Samweb (UK) Limited, a claims management company, following concerns that its communications could mislead customers. FCA was concerned the firm had: breached various...
EU agrees plan to implement Basel III reforms
The Council has reached an agreed position on the implementation of the Basel III reforms designed to boost the resilience of banks operating within the EU and strengthen their supervision and risk management. The...
Principals to respond to AR requests by 28 February 2023
Following confirmation that it will be sending principal firms that have ARs a s165 information request in December, the FCA has updated its webpage to let firms know that they should expect to receive this via Connect...
FSMB: Economic Secretary writes to Treasury on DAR
Andrew Griffith has written to Dame Angela Eagle to follow up on questions she raised regarding the delegated powers in the FSM Bill. In particular, Dame Angela raised the provisions in Clause 8 (the Designated...
Final day of FSMB debate published
In the morning and afternoon of the final day of the Public Bills Committee debate on the FSM Bill, the remaining tabled new clauses were discussed: that the Chair of the PSR should be a member of the FCA board: this...
FCA and BoE agree MoU with Bank of Greece
FCA has published a Memorandum of Understanding (MoU) between the Bank of Greece (BoG) and the BoE and FCA which aims to formalise supervisory cooperation and information sharing arrangements in the wake of Brexit...
FSM Bill completes Commons committee stage
The FSM Bill has completed the committee stage in the House of Commons and Parliament has published a revised version of the Bill. Of the amendments tabled in the committee stage, the following have been added to the...
FCA publishes financial promotions data
FCA has published data covering the period of 1 July to 30 September 2022 assessing its action against authorised firms for breaching financial promotion rules and referrals, as well as its investigations into...
Borrowers in financial difficulty post-pandemic
FCA’s Borrowers in Financial Difficulty (BiFD) project was launched in March 2021 to monitor how firms support borrowers and intervene where necessary, particularly in relation to the financial effects of the...
FSMB amendment paper published
The House of Commons has published an updated version of the FSM Bill amendment paper which lists all amendments tabled to the Bill together with any withdrawn amendments. The tabled amendments include: Government...
CMA updates case timetable of FS sector investigation
CMA’s case timetable for its investigation into anti-competitive practices in the financial services sector now notes that the investigation will continue into Spring 2023, when there will be a further update.
FCA asks consumer credit firms for credit data
FCA is asking several consumer credit firms to provide it with data on their credit activities, to enable it to monitor and assess the impact of the rising cost of living. It is not making a formal information request...
Public Interest Intervention Power FSMB amendment delayed
Andrew Griffith has written to Dame Angela Eagle saying that, despite his repeated statements that the Government planned to publish its proposed public interest intervention power amendment soon, it will now not be...
Andrew Griffith letters on FSMB
The House of Commons has published a letter from Andrew Griffith on the FSM Bill dated 10 October to Tulip Siddiq and Abena Oppong-Asare. The letter followed the second reading of the Bill and addresses: the...
FSMB debate discusses crypto, net zero and regulatory independence
The debate on the FSM Bill resumed on 27 October. The Committee discussed, in the morning and afternoon sessions: Clause 21: the proposals for regulating stablecoins. The main question came from Tulip Siddiq who queried...
PRA speaks on growth and competitiveness
Sam Woods has spoken at Mansion House on how prudential regulation can contribute to the competitiveness of the UK as a financial centre, and to economic growth. He confirmed PRA’s support for the FSM Bill...
Key Appointed Rep and TPR deadlines
FCA’s latest edition of “regulation round up” summarises recent publications and key deadlines, and also: says it will send the promised s165 request to all principal firms asking for information about...
FCA warns firms about misuse of trading names
FCA has noted an increase in firms misusing trading names. It has updated its website to clarify that: using an unauthorised entity’s name as a trading name will not circumvent the appointed representatives...
Highlights of FSMB debates from 25 October
The 3rd and 4th sittings of the Public Bill Committee debate on the FSM Bill took place on 25 October. After the evidence sessions from witnesses on 19 October, the line-by-line scrutiny of the Bill has now started...
Further amendments to FSM Bill up for debate
Further amendments to the FSM Bill have been published for debate in the Public Bills Committee. Among the suggested changes and additions are: a power for Treasury to direct a regulator to publish specified metrics, if...
FCA consults on anti-greenwashing rules
FCA is consulting on new rules to tackle greenwashing. Following its commitment in its ESG strategy and business plan, FCA is now addressing the concerns that the increasing exaggerated, misleading or unsubstantiated...
PRA Dear CEO letter on climate related risks
PRA has written to PRA regulated firms with a summary of capabilities PRA expects them to have to manage climate-related financial risks. The letter reminds firms that PRA expected them to have fully embedded their...
Further FSMB revisions released
Parliament has published the latest raft of proposed amendments to the FSM Bill. These include: a change to the very first sub-clause, replacing the revocation of the EU and EU-derived legislation in the schedule so...
Minutes of first FSMB Committee sitting
The Hansard report for the FSMB debate on 19 October has been published. The witnesses giving evidence were, first, Victoria Saporta from the PRA and Sheldon Mills and Sarah Pritchard from the FCA. Victoria Saporta...
Government responds on access to cash in Scotland
The Government has responded to the Scottish Affairs Committee’s report on access to cash in Scotland, published in July. It notes, of course, that since the report, the FSMB, with its proposals for protecting...
First day of FSMB Committee hearing
As scheduled, the Public Bill Committee scrutinising the FSM Bill had its first day of scheduled evidence sessions on 19 October, and an updated amendment paper was published. The Committee heard in the morning from...
ASA finds HSBC sustainability-focused adverts misleading
The UK advertising watchdog, the ASA, held that HSBC misled consumers with two advertising posters, which were displayed in the run up to COP26, focused upon sustainability commitments. The posters made claims about the...
Ashley BorthwickMark Steward to step down as FCA Enforcement chief
Mark Steward is to step down as FCA’s executive director of enforcement and market oversight after 7 years. He will leave FCA in Spring 2023. In addition to leading many key precedent-setting cases, Mr Steward...
FCA updates on Consumer Investments Strategy
FCA has published an update on its Consumer Investments Strategy, tracking what has happened in the past year. Highlights are that FCA has: prevented 1 in 5 applicants wanting to enter the consumer investments market...
FCA allows Amigo to re-start lending in pilot
FCA has published a letter sent to Amigo Loans which approves its request to start lending again on a pilot basis. In 2020, following a large number of customer complaints, Amigo paused new lending and announced that it...
BoE publishes data transformation programme update
The BoE has published an update on its data collection transformation programme. The programme is a joint venture with FCA and aims to transform data collection within the UK financial sector. Phase two of the programme...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...
PRA writes to credit unions with annual assessment
PRA has written to credit unions setting out its conclusions from its annual assessment of the sector. Key messages, for both large and small credit unions are: that the likelihood of market conditions in the lending...
Government responds on UK/EU FS dialogue
The Government has published its response to the House of Lords’ European Affairs Committee report on the UK-EU relationship in financial services. In the main, it is pleased with the Committee’s findings...
FSMB Committee stage scheduled for 19 October
An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October. After the line by line debate is complete, the Bill will be republished for report...
BoE stress test finds UK CCPs resilient to stresses
BoE has published the results of its first supervisory stress-test of UK central counterparties. The exercise involved all UK CCPs, ICE Clear Europe Limited, LCH Limited and LME Clear Limited. The CCPs showed...
FPC publishes policy summary
BoE has published the FPC’s financial policy summary and record. Key points to note are: the deterioration in the outlook for growth in the UK and globally since the July Financial Stability Report; the temporary...
LSB speaks on customer outcomes in outsourcing
Emma Lovell, Chief Executive of the LSB, has spoken on the top risks LSB sees in outsourcing and the steps that firms can take to achieve fair outcomes for customers. She focused on: due diligence and oversight: she...
FCA finalises branch closure guidance
FCA has published new, updated guidance for banks, setting additional expectations on them when they are considering closing branches or ATMs. FCA has seen some good practices develop since it originally published...
FCA updates on authorisations metrics
FCA has updated its operating metrics for authorisations. It notes the reasons why it was not meeting its metrics in 2021/22, which included that an increased scrutiny at gateway level meant that the number of firms it...
FCA portfolio letter to high-cost lenders
FCA has published its portfolio supervision letter in relation to high-cost lending products. The letter sets out the risks FCA believes high-cost firms pose to their customers and the markets in which they operate and...
FCA updates Whistleblowing data
FCA has published data on whistleblowing reports received between April and June 2022. It received 243 new reports containing 474 allegations, mainly through its online reporting form, but a sizeable number by email or...
FCA launches new webpage on Consumer Duty
The FCA has published a new webpage containing information on the Consumer Duty. The webpage, which will be kept up to date, currently contains guidance for firms on: implementation plans and the FCA’s...
FCA consults on creating baseline financial resilience return
FCA is consulting on a proposed replacement for the Financial Resilience Survey. It plans to create a new return for solo-regulated firms, which it hopes will both reduce the burden of ad hoc surveys and increase the...
FCA revamps Digital Sandbox page
FCA has updated its support page on its website relating to the Digital Sandbox to explain more clearly what it offers and how to apply (although it is currently closed for applications)
FCA publishes new information for newly authorised firms
FCA has set up a new page on its website designed to help newly authorised firms in various sectors understand where to find relevant information, rules and guidance. The sector specific information is designed for...
FCA makes new rules
FCA has published Handbook Notice 102, confirming new rules: implementing the Consumer Duty (as decided in its July Board meeting) implementing the changes to appointment and supervision of Appointed Representatives...
FCA speech: Consumer Duty
Sheldon Mills (Executive Director, Consumers and Competition at the FCA) has delivered a speech on what firms and customers can expect from the Consumer Duty. Mr Mills stressed that, whilst the Duty is not yet in force...
Ombudsman News and new FOS UCIS pages
The latest edition of Ombudsman News highlights the recent complaints data we’ve previously reported on, and gives guidance on complaints relating to UCIS. FOS is seeing increasing complaints about advice to...
BoE speaks on technical innovation from crypto to real
Sir Jon Cunliffe has spoken on innovation, and specifically the risks and opportunities of crypto-assets, in post trade services. He noted the importance of bringing crypto-assets and activities within regulation...
Consumer Duty: FCA update and events
The FCA has published a new webpage on Consumer Duty, which outs out the timeline and key milestones for implementation and contains links to register for FCA webinars and email updates. You can also register to attend...
Government updates on Growth Plan and FS proposals
The Government’s update on its growth plan, published on 26 September, heralds an October date for the Chancellor to set out plans for regulatory reforms to the financial services sector, to keep it competitive.
FCA speaks on role of regulation in growth
Sarah Pritchard, Executive Director at FCA, has spoken on the regulator’s role in encouraging growth. Key points in her wide-ranging speech included: FCA’s commitment to showing speed and agility, providing...
PRA updates rules on capital definition
PRA has published a policy statement updating its capital rules. Under the new rules and supervisory statement: PRA is replacing the UK Technical Standards for own funds requirements and replicated it in its Rulebook to...
BoE publishes 2022 Stress Test scenario
The BoE has published the scenario it will be stress-testing banks against now it is returning to the pre-pandemic annual stress-test framework. The test will focus on deep simultaneous recessions in UK and global...
Government Growth Plan heralds role of financial services
The Government’s new Growth Plan announced on 23 February highlights the importance of the financial services sector and, specifically: a plan to scrap bankers’ bonus caps; the need to scrap much of Solvency...
PRA consults on depositor protection
PRA is proposing a number of changes to its rules, supervisory statements and statements of policy to: delete the Dormant Account Scheme part of the PRA Rulebook; amend the Depositor Protection Part of the PRA Rulebook;...
FCA updates on insurance pricing
FCA has updated its website on general insurance pricing practices, to include information on application of PROD to products distributed through distributors based outside the UK and intended for non-UK customers. FCA...
FCA publishes insurance broker wind-down plan study
FCA has published the results of its review of how well general insurance brokers assess the adequacy of their liquidity for orderly wind-down. During early 2022, it conducted a review of 10 insurance brokers, mainly...
FOS publishes H1 complaints data
FOS has published its regular half-yearly update on complaints data relating to individual businesses. 212 businesses feature, with an average uphold rate of 37% (the same as the previous period). FOS has also reported...
PRA sets out changes for credit unions
The PRA is consulting on proposed amendments to the regulatory regime for credit unions, including: changes to the Credit Union Part of the PRA Rulebook – these include extending the range of products available for...
BIS calls for swift Basel III implementation
The Basel Committee has reiterated its expectation that all aspects of the Basel Framework should be implemented as consistently and fast as possible. More than 66% of jurisdictions plan to implement all or most of the...
FCA imposes conditions on CiC
On 12 September, FCA announced that it has imposed conditions on a proposed change in control. Dye & Durham is looking to take over the Link Group, which involves the acquisition of 7 FCA-authorised firms. One of...
FSM Bill progresses through Parliament
The Financial Services and Markets Bill had its second reading in Parliament on 7 September. There appears to be broad support for the Bill, and many MPs focussed on the importance of access to cash. On 8 September...
Innovate Finance publishes FSM Bill briefing
Innovate Finance has called out the aspects of the FSM Bill that are of particular relevance to the UK FinTech sector. It calls out the Bill’s proposals on: stablecoin regulation and the FMI sandbox(es) –...
Treasury says no need for specific “have regard” to financial inclusion
Richard Fuller has written on behalf of HM Treasury to the Treasury Committee in relation to the proposal that FCA be given a “have regards” in relation to financial inclusion. The effect of this, as part...
PRA writes to Treasury Committee on “strong and simple”
Sam Woods has written to Mel Stride answering the Treasury Committee’s follow up questions about the Strong and Simple framework. The letter explains that PRA received 19 responses to its consultation and says: in...
DRCF ToR published
The CMA has published the terms of reference for the Digital Regulation Cooperation Forum, which was established by the CMA, ICO and Ofcom in June 2020, with FCA joining in April 2021. The forum’s objectives...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation. It proposes changes to: the schemes regime under s272, and consequential changes to COLL, the Glossary, DEPP and EG. The changes specifically relate to what FCA...
FCA updates attestations stats
FCA has published details of the number of attestations it has received in the first quarter of 2022/3. It has received only 4, all in respect of retail business, and none from dedicated supervision firms. Over the...
PSR to regulate Sterling Fnality Payment System
HM Treasury has designated Sterling Fnality Payment System as a regulated payment system from 31 August 2022. Accordingly, PSR has confirmed that Sterling Fnality Payment System will be subject to PSR regulation from 31...
Harshil PatelFCA updates skilled persons data
FCA has published the figures for its skilled persons reviews during Q1 2022/23. 9 reports were commissioned, of which 4 related to retail banking and payments. 2 reports related to governance and individual...
The future of Open Banking and the Joint Regulatory Oversight Committee
FCA, PSR, CMA and HM Treasury have published a joint statement on the future of open banking, announcing the creation of a joint regulatory oversight committee. The committee, co-chaired by the FCA’s Executive Director...
Consumer Duty: building an implementation plan
UK Finance has outlined four key elements firms should be focussing on when building their Consumer Duty implementation plans. These are: definition of the target end state as an input to the gap assessment – to define...
FCA publishes robo-advice repayment decision paper
FCA has published an occasional paper that looks at the results from a robo-advice experiment which asked customers to make borrower repayment decisions. It drew several interesting conclusions, including that: the...
No further action against HBOS senior managers
PRA and FCA have finished their investigations into certain former senior managers at HBOS in relation to its 2008 failure. The regulators started the investigations in 2016 following the Green report on the scope of...
FCA sets up ESG advisory committee
FCA is setting up a new advisory committee to its board to help on ESG issues, and is looking for a small number of external experts to join it. It is looking for interested parties who have in depth knowledge of ESG...
FCA to send AR requests in December
FCA has confirmed it will be sending principal firms that have appointed representatives a s165 information request in December. The request (which FCA had previously said it would issue later this year) will seek...
FCA warns again on misleading BNPL ads
FCA has written to BNPL providers and to the British Retail Consortium, warning them that even while some BNPL agreements remain currently unregulated, this does not mean that the financial promotion rules don’t...
Complaints Commissioner upholds complaint against Supervision Hub
The Complaints Commissioner has upheld a complaint about an individual’s dealings with FCA’s Supervision Hub. The complainant had emailed the hub and had no response, so had called. The call with an...
FCA to consult on SMCR enhanced scope coverage
FCA is to consult shortly on changes to clarify the scope of firms that fall within the scope of Enhanced Scope SMCR firms. When it renamed and moved the definition of “Significant IFPRU firm” as part of...