The Treasury Committee has published a letter received from Andrew Bailey about the FSM Bill, in which the BoE welcomes the Future Regulatory Framework measures set out in the Bill, and supports the proposals for...
Category - Supervision
Emma RadmoreTheCityUK publishes manifesto for next PM
TheCityUK has set out 8 areas where the industry can work with the next Prime Minister, not least: delivering n the FSM Bill as soon as possible and reforming Solvency II creating tax incentives to accelerate financing...
UK Finance supports “simpler-regime”
UK Finance has responded to PRA’s consultation paper on its proposed definition of a simpler-regime firm. It supports the principle, but has suggested it would be appropriate to increase the ceiling below which...
FCA publishes “alternatives” supervisory letter
FCA has published its supervisory strategy letter for “alternatives” – that is firms that are predominantly active in the alternative investment sector. Although the letter, as usual, is addressed to...
PRA makes new rules
PRA has made changes to its rules, supervisory statements, statements of policy and technical standards following its Occasional consultation 3/22. The changes affect: Solvency II firms: in respect of the Statement of...
FCA publishes Q1 whistleblowing figures
FCA has published data on the number of whistleblower reports it received in Q1 of 2022. It received 276 new reports containing 540 allegations, almost half through the online reporting form. The reports usually relate...
Read our article on the new Consumer Duty
Following up on our headline post, we have written an article giving more detail on the Consumer Duty and highlighting some of the key changes since the FCA’s second consultation paper. The implementation deadline...
Harshil PatelFCA confirms new AR rules
FCA has confirmed its new rules to make principal firms more responsible for their ARs. The package of rules, which will take effect from 8 December, will: require principals to notify FCA of future AR appointments 30...
FCA publishes 2022 “Dear Remco Chair” letter
FCA has updated its materials on SYSC 19D to include its “Dear Remuneration Chair” letter for 2022, which sets out its expectations as the Remuneration Committees determine the year’s remuneration...
FCA updates on mortgage switching
FCA is pleased that the number of borrowers who could save money by switching mortgages is now around 370,000, down from 800,000 in 2016. However, it urges borrowers to consider their mortgages, given the rising costs...
EIOPA consults on governance arrangements in third countries
EIOPA has launched a public consultation relating to a draft supervisory statement on the use of governance arrangements in third countries. EIOPA’s aim with the supervisory statement is to enhance the supervision and...
FCA finalises high-risk fin prom rules
FCA has published its policy statement with final rules on firms that are publishing promotions of high-risk products. The new rules will require firms that are issuing and approving the materials to have appropriate...
Climate-related disclosures improve but could still be better
FRC and FCA have published two reports which found that premium listed companies have made significant steps forward in the quality of climate-related information provided in their financial reports, but further...
FCA says applicants must prove ability to comply with Consumer Duty
FCA has updated its website in relation to applications for authorisation in light of its publication of the final rules on the Consumer Duty. It now says that it expects all applicants for authorisation or VOPs to be...
FCA publishes Carillion decision notices
FCA has published its decision notices in respect of Carillion plc and three of its former executive directors. As the company is in liquidation, FCA has imposed a public censure, which has not been appealed. However...
Ombudsman News highlights gambling complaints
The latest edition of Ombudsman News from FOS highlights: the recent appointment of a new Deputy Chief Ombudsman and COO, both of whom will take up their roles by October; and FOS’ new guidance on the treatment of...
UK-U.S. Working Group meets
UK and U.S. participants held the 6th meeting of the UK-U.S. Financial Regulatory Working Group online on the 21st of July 2022, with present officials including senior staff from HM Treasury and the U.S. Department of...
Need more detail on the Financial Services and Markets Bill?
We’ve produced a detailed summary of the key aspects of the Financial Services and Markets Bill, following up on our headline post. While the Bill won’t be having its second reading until September, keep an...
FCA publishes final rules on Consumer Duty
Following two consultations on its proposals, the FCA has confirmed its plans for a new Consumer Duty which will require firms to put their customers’ needs first. The FCA has a parliamentary mandate, via the...
Emma RadmoreCourt confirms no statutory trust for unsafeguarded EMR/PSR assets
The Insolvency and Companies Court has given directions at the request of the liquidators of Allied Wallets Limited, a failed payment services firm, which was subject to the PSRs in respect of electronic payment...
FCA publishes fin proms data
FCA has published its quarterly data for the quarter ending June 2022 on its actions against firms that breach financial promotions restrictions and requirements. Key statistics include: review of 451 promotions...
CMA finds that six high street banks broke CMA banking rules
Six high street banks have broken rules imposed by the CMA under the Retail Banking Market Investigation Order 2017. Banks and building societies are required to follow strict rules when it comes to informing customers...
PRA consults on O-SII approach
PRA is consulting on changes to its approach to identifying other systemically important institutions It currently carries out its assessments following the EBA methodology but feels Brexit gives an opportunity to...
BoE and FCA accept transformation programme recommendations
BoE and FCA are leading a joint transformation programme with industry to transform data collection from the UK financial sector. They have published an initial set of recommendations from the programme and the response...
UK Government publishes proposals for a new AI rulebook
The UK Government has published its plans to regulate the use of AI which aim to to develop consistent rules that promote innovation. The approach is based on six core principles that regulators must apply, with...
Treasury publishes “state of the sector” report
Treasury, with the City of London Corporation, has published the first annual review of UK financial services. The report looks at the successes of the financial sector, not least as an international hub, at the...
Regulators propose measures for CTP service resilience
BoE, FCA and PRA have proposed measures to oversee and strengthen resilience of services that critical third parties provide to the financial sector. The discussion paper follows previous reports and consultations, and...
New Financial Services and Markets Bill in Parliament
The Government has introduced the Financial Services and Markets Bill into Parliament. The Bill was introduced on 20 July and had its first reading, but no date was set for the second reading. In his first Mansion House...
Tribunal decides dismissal for bankruptcy is fair
A recent Employment Appeal Tribunal decision considered whether Your-Move (YM), an Estate Agent, had unfairly dismissed a consultant (Mr Pubbi – the Claimant) for failing to disclose that he had been made bankrupt. The...
FIN. TeamFCA publishes Annual Report
FCA has published its Annual Report and supporting papers. It highlighted: how nearly 600,000 people are paying less in interest and charges on credit card debt following rule changes; how further rule changes have...
Complaints Commissioner publishes Annual Report
In this year’s report by the Complaints Commissioner dealing with complaints against the Financial Services Regulators, Amerdeep Somal outlines what her office dealt with, and how it compared to last year. 935...
PRA consults on unvested pay, MRTs and public appointments
PRA has launched a consultation on its proposed expectations in respect of changes to the instruments or claims that comprise unvested, deferred sums awarded to Material Risk Takers (MRTs) as part of their variable pay...
PRA and FSCS update MoU
The PRA and FSCS have published an updated Memorandum of Understanding which replaces the existing version implemented in 2019. The MoU outlines the framework agreed by the PRA and FSCS on how they will work together in...
FCA fines failed firm for financial crime failings
FCA has fined the TJM Partnership, which is now in liquidation, £2,038,700 for financial crime compliance failings in cum-ex trading business. This is the third fine in this area, and the largest. FCA found the firm...
FCA’s CEO speaks on how the UK will regulate for the future
Nikhil Rathi, Chief Executive of the FCA, gave a speech on how it intends to regulate financial services for the future. A different regulator? He stressed that the FCA was: redesigning its operational platform to...
FSB reports on climate change roadmap
FSB has published its first annual progress report in the roadmap for addressing financial risks from climate change. FSB reported that good progress had been made against all four blocks of the roadmap: Firm-level...
PRA finds evidence that banks are reluctant to use their capital buffers
Victoria Saporta, Executive Director of Prudential Policy, gave a speech discussing banks’ reluctance to use their capital buffers. PRA requires UK banks to hold capital ‘buffers’, but the PRA has found evidence...
FCA responds to Treasury Committee on responsibilities regarding financial sanctions
FCA has written to the Treasury Committee to respond to questions regarding its financial sanctions responsibilities. FCA confirmed that its role was to ensure that regulated firms have appropriate systems and controls...
High Court finds that Robert Tchenguiz was correctly classified as an elective professional client and that there was no breach of COBS rules
Background Investor Robert Tchenguiz (T) had opened a spread betting account with CMC Spreadbet plc (CMC), and CMC had elected to treat T as a ‘professional client’. T’s classification as an elective...
FSB writes to G20 Finance Ministers and Central Bank Governors
FSB has written to the G20 Finance Ministers and Central Bank Governors highlighting that lower growth, rising inflation and tighter global financial conditions may crystallise pre-existing vulnerabilities in the global...
ECB speaks on using tech to tackle financial crime
Elizabeth McCaul, Member of the Supervisory Board of the ECB, has delivered a speech on how technology (particularly AI) can be used in the fight against financial crime. Ms McCaul discussed the relationship between...
Treasury Committee launches inquiry into cryptoassets
The Treasury Committee has launched a new inquiry into cryptoassets. The inquiry will cover the opportunities and risks that cryptoassets may bring to consumers, businesses and the government. It will also examine the...
BoE provides update on risks from climate change
Anil Kashyap, a member of BoE’s Financial Policy Committee, has delivered a speech about the BoE’s work to ensure UK banks and insurers understand the risks from climate change. He discussed the following...
PRA consults on approach to authorising and supervising insurance SPVs
The PRA is consulting on proposed changes to its approach to authorising and supervising insurance SPVs. The proposed changes include: changing the legal opinion expectation for non-English law governed contracts; and...
FSB updates on international regulation and supervision of crypto activities
The FSB has published a statement on international regulation and supervision of cryptoassets activities. Highlights include: the FSB will continue to facilitate cross-border and cross-sectoral cooperation amongst...
ESMA consults on the DLT Pilot Regime
Following its call for evidence earlier this year, ESMA is consulting on draft guidelines on standard forms, formats and templates to apply for permission to operate a DLT market infrastructure. The proposed draft...
EIOPA consults on differential pricing practices in non-life insurance business
EIOPA is consulting a draft supervisory statement (SS) on differential pricing practices in non-life insurance lines of business. Differential pricing practices are those pricing techniques where consumers with a...
PRA speaks on matching adjustment reforms under Solvency II
Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO, has delivered a speech on the reforms to the regulation of insurance providers. Mr Woods considered the industry reaction to the PRA’s discussion...
Treasury appoints new FCA Chair
Following its recruitment campaign, HM Treasury has announced the appointment of Ashley Alder as the new FCA Chair for a 5 year term. Mr Alder is currently Chief Executive Officer of the Securities and Futures...
EIOPA welcomes EU Commission’s proposal for an Insurance Recovery and Resolution Directive
EIOPA has published a staff paper in which it has welcomed the EU Commission’s proposal for an Insurance Recovery and Resolution Directive (IRRD). The IRRD is a comprehensive framework taking into account the...
FCA urges consumers struggling with rising prices to seek help
The FCA is urging consumers to get help as soon as possible if they are in financial difficulty because of the rising cost of living. The FCA, in collaboration with MoneyHelper, has published the following top tips for...
Draft Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022 published
Treasury has published a draft version of the Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022, which make a variety of amendments to allow retained EU legislation to operate effectively after...
FCA publishes rules to protect investors in authorised funds following the invasion of Ukraine
Following its consultation earlier this year, the FCA has published final rules and guidance to allow authorised fund managers to create side pockets for retail investment funds affected by the Russian invasion of...
BoE issues Financial Stability Report for July 2022
The BoE’s Financial Policy Committee (FPC) seeks to ensure that the UK financial system is prepared for and resilient to the wide range of risks it could face. The BoE has published the summary and record of the...
FCA issues guidance on its approach to compromises
FCA has seen an increase in the number of regulated firms proposing compromises to deal with significant liabilities to consumers, in particular redress liabilities. FCA has issued guidance to clarify how it will...
FCA board discusses Consumer Duty
The FCA has published the minutes of a board meeting held on 26 May 2022 at which, amongst other items, the board discussed the new Consumer Duty. Highlights include: feedback from external stakeholders on the proposed...
FCA appoints 6 new directors
The FCA has appointed six new directors to a mixture of existing and newly created senior roles: Director of Consumer Finance – Roma Pearson will take up her position in July and will be responsible for the supervision...
FCA plans to consult on sustainability disclosure requirements in autumn 2022
In response to growing consumer demand, firms are providing an increasingly diverse range of products that target various sustainability objectives, themes or characteristics. FCA acknowledges that there is also a risk...
FCA updates on change in control delays
FCA is still suffering significant delays in allocating case officers for CiC notifications. It has recruited more staff but there is still around 6 weeks between submission of an application and allocation to a case...
FCA hosts CryptoSprint events
The FCA hosted its first policy-focused CryptoSprint events in May and June 2022. The objective of the events was to seek industry views around the current market and the design of an appropriate regulatory regime...
Joint Statement issued by the Russian Elites, Proxies, and Oligarchs Task Force
The Russian Elites, Proxies, and Oligarchs (REPO) Task Force has released a joint statement outlining how they have been able to isolate sanctioned Russians by freezing, seizure, forfeiture and/or disposal of assets...
FCA publishes feedback statement on ESG integration
The FCA summarised feedback received to its discussion chapter (in CP21/18) on environmental, social and governance (ESG) integration in UK capital markets and has set out the potential next steps. The FCA received 50...
FCA Portfolio Strategy letter for lifetime mortgage providers
FCA has published its Dear CEO letter for the lifetime mortgage provider sector. Its last letter was in October 2020. The latest letter: highlights (as other sectoral letters have done) the impact on vulnerable...
PRA sends firms letters on trading book fundamental review
The Prudential Regulation Authority (PRA) has sent firms a letter setting out its approach to the “Fundamental Review of the Trading Book” (FRTB), on which it will consult in Q4-2022 as part of its review of...
FCA publishes portfolio letter to debt advice firms
FCA has published its Dear CEO letter to the debt advice portfolio, updating its letter of 2020. Most of the messages are similar to those it has given to the mainstream consumer credit lenders, specifically the focus...
FOS publishes annual complaints data for 2021/22
FOS has published its annual complaints data for April 2021 – March 2022. Highlights include: FOS received 165,263 new complaints which is a decrease on the previous year (279,146). Of these, there were 5,369 PPI...
FCA publishes regulated fees and levies for 2022/23
The FCA has published its final periodic regulatory fees and levies for 2022/23 including feedback on CP22/07. The FCA will invoice fee-payers from July 2022 onwards for their 2022/23 periodic fees and levies.
Update: the future of UK financial services regulation
The Treasury Committee has published a report outlining its plans to launch a new Sub-Committee to scrutinise regulatory proposals for financial services. The Sub-Committee will be chaired by the Rt. Hon. Mel Stride MP...
PRA consults on model risk management principles for banks
PRA has issued a consultation which proposes that all firms adopt five proposed principles to establish an effective model risk management (MRM) framework. The five proposed principles are: Model identification and...
FCA to delay PEMC review
FCA was due to carry out its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance and report by October. It has decided to delay its...
FCA update on market abuse and manipulation
Tackling market abuse is one of the FCA’s strategic priorities. Given recent press reports about the FCA’s approach, the FCA outlined the work it does to tackle insider trading and manipulation and to warn...
Eurogroup issues statement on the future of the Banking Union
Since its creation in 2014, the Banking Union has made significant progress on an EU single rulebook, concerning the establishment of a new European architecture for supervision and resolution, and on reducing risks. In...
Upper Tribunal confirms compensation and validation possible for credit breaches
In its recent decision, the Upper Tribunal drew a distinction between the compensation regime available to consumers under section 28(2) of FSMA and the enforceability of a regulated credit agreement under section 28(3)...
FPC withdraws mortgage affordability test
FPC has confirmed that it will withdraw its Recommendation on mortgage affordability with effect from 1 August. The current test specifies a stress interest rate for lenders when assessing borrowers’ ability to...
EU Council agrees position on proposed changes to Solvency II
The Council of the EU has agreed its position on the proposed amendments to the Solvency II Directive. The agreed position: should ensure a balanced review of the SII prudential framework in terms of capital...
FCA to authorise largest funeral plan providers
FCA has published a list of 24 of the largest funeral plan providers who it intends to authorise with effect from 29 July, when funeral plan regulation takes effect. It is still considering applications from a number...
FCA tells lenders to support customers with the cost of living
FCA has written to over 3,500 lenders to remind them of the standards they should meet as consumers across the country are affected by the rising cost of living. Firms are expected to understand the changing pressures...
Treasury Committee reports on future of financial services regulation
The Treasury Committee has warned the Government that, in looking at the opportunities for regulatory reform and considering what it can offer, it must take care to ensure that competitiveness does not become the...
FCA consults on strengthening access to banking
FCA has warned that some banks and building societies are not currently doing enough to properly understand the impact of branch closures, ATM conversions or service reductions and to keep their customers informed of...
FOS issues discussion paper on future funding model
On 14 June 2022, the FOS published a discussion paper on possible changes to its future funding model.. This follows the FOS’s commitment in their action plan to change and improve the organisation to deliver a...
PRA speech: competition, productive investment and Solvency II Review
Charlotte Gerken, PRA Executive Director – Insurance, has delivered a speech on the goals of competitiveness and productive investment and their role in the Solvency II Review. Highlights include: investment flexibility...
Parliament launches post-Brexit regulatory divergence inquiry
The European Scrutiny Committee has launched an inquiry looking at the benefits and challenges to business and the UK economy of diverging from EU regulation that was copied into UK law post-Brexit. Financial services...
BoE publishes first resolvability assessment of major UK banks
In its first resolvability assessment of 2022, the BoE has found that, if a major UK bank were to fail today, customers would be able to access their accounts and business services as normal. The BoE found that...
FCA publishes quarterly consultation
The FCA’s latest quarterly consultation covers: a minor amendment to DEPP to reflect changes to the FCA’s decision-making processes implemented on 26 November 2021; amendments to the Compensation rules relating to...
Solvency II review updates
The PRA has launched the 2022 data collection exercise for the Solvency II review, primarily in support of the matching adjustment (MA) and fundamental spread (FS) calibration reforms. The exercise will cover three main...
FOS announces new Chief Executive and Chief Ombudsman
FOS has appointed Abby Thomas to the role of Chief Executive and Chief Ombudsman. She joins from Virgin Media O2 and was trained as a strategy consultant before working for a number of telecoms companies.
Treasury to introduce service provider “critical third party” regime
Treasury has been working with BoE, PRA, FCA and other stakeholders to develop a proposal to protect against the failure of key service providers. Over recent years, firms have become increasingly reliant on key service...
FCA to act to prevent CMC phoenixing
New rules being introduced by the FCA will prohibit CMCs from carrying out regulated claims management activity in certain circumstances on claims or potential claims to the FSCS, where the CMCs have relevant...
Court finds introducer in breach of FSMA but allows commission to stand
Kinled Investments Limited introduced an investor to Zopa Group Limited. Kinled claimed a £4.2m fee from Zopa for its intermediary work when the investor made a second investment, while Zopa counterclaimed £345,000 as...
Government consults on failure of Digital Settlement Asset firms
The Government is consulting on proposed amendments to the FMI Special Administration Regime to enable the management of a failure of a “systemic digital settlement asset firm” – including stablecoin...
FCA publishes regulatory initiatives grid
The Financial Services Regulatory Initiatives Forum (FSRIF) has published its most recent biannual regulatory initiatives grid. The grid is designed to enable the financial services industry and other stakeholders to...
BoE speech on building operational resilience
Duncan Mackinnon, BoE Executive Director for Supervisory Risk Specialists, has delivered a speech on operational resilience. Mr Mackinnon considered the PRA’s expectations of firms in their implementation of the...
FCA proposes further reforms to the listing regime
FCA has published the feedback to its discussion paper on proposed reforms to improve the effectiveness of UK primary markets and the listing regime. In a second discussion paper, published alongside this feedback, the...
FCA sets up BSPS information page
FCA has published a new page on its website in which it gives answers to requests for further clarification that it has received from respondents to its consultation on the British Steel Pension Scheme redress scheme...
ESMA publishes final report on investment firm best execution reporting
The European Securities and Markets Authority (ESMA) has published its Final Report on the review of the MiFID II framework on best execution reports by investment firms. MiFID II requires execution venues and...
High Court approves Amigo scheme of arrangement
The High Court has approved the scheme of arrangement that will provide redress for customers who were mis-sold loans by Amigo and who have raised a complaint. FCA has reiterated that the scheme is an improvement on the...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
Government takes action to protect access to cash
The Government has announced new legislation that will protect access to cash. It will introduce measures in the forthcoming Financial Services and Markets Bill which will give FCA power to require the largest banks...
FCA speeds up “use it or lose it” powers
FCA has confirmed new rules that will make it easier for it to cancel permissions that firms are not using. Following a change in the law in the FS Act 2021 that allows it to streamline and shorten the process, FCA will...
FCA fines and bans firms and individuals over pensions advice
FCA has issued final notices to two firms in relation to their pension advice business and misleading the FCA. The fact pattern for both firms was similar, involving their use of a Pension Review and Advice Process...