On 17 May 2022, the FCA published Market Watch 69, its newsletter on market conduct and transaction reporting issues. The newsletter focuses on firms’ arrangements for market abuse surveillance, drawing on the...
Category - Supervision
FIN. TeamFCA consults on expanding dormant assets scheme
On 13 May 2022, the FCA published a consultation paper on expanding the dormant assets scheme (the Scheme). The Scheme allows banks and building societies to pay dormant monies to an authorised reclaim fund which then...
FCA speaks on importance of insurance brokers
Sheldon Mills has spoken to insurance brokers of the important role they play and how FCA is looking to regulate them proportionately. Statistics show that 67% of general insurance business and 81% of commercial...
Emma RadmoreFCA refuses to authorise compliance firm to operate investment network
The FCA has refused to authorise Alexander Jon Compliance Consulting Limited (AJCC) to provide regulatory hosting services. AJCC applied to take responsibility for appointed representatives (ARs) carrying out regulated...
Harshil PatelPSR takes action against banks for non-compliance with the IFR
PSR has taken action against NatWest, RBS, Ulster Bank and Coutts for failing to comply with the Interchange Fee Regulation. The banks incorrectly treated a number of cards as being ‘commercial’ when they should have...
Emma RadmoreNew proposal for distance selling of financial services
Following its request for feedback last year, the European Commission has adopted reforms of the current EU rules concerning financial services contracts concluded at a distance. The proposal aims to simplify and...
EU reaches deal on DORA
The EU Commission, EU Council and EU Parliament have reached agreement on the Commission’s proposal for a Digital Operational Resilience Act (DORA). The new rules aim to harmonise and strengthen digital...
FCA highlights the risks of investing in crypto
The FCA has issued a statement following some recent social media posts regarding cryptoassets and NFTs. Whilst it cannot comment on individual products, it has warned consumers that there are no consumer protections...
FCA issues update on multi-occupancy buildings insurance
FCA has written to Michael Gove MP, Secretary of State for the Department for Levelling Up, Housing and Communities, to provide an update on the FCA’s review of the annual price increases for multi-occupancy...
FCA bans 5 directors for causing losses to pension customers
The FCA has banned five directors of financial advice firms from working in financial services, after they caused significant losses to pension customers. The bans, and fines of over £1m, follow findings by the Upper...
FCA delivers speech on learning from the past
Nikhil Rathi, CEO at the FCA, spoke on learning from the last 30 years to face the next 30 years at the Chartered Institute for Securities & Investment (CISI) 30th anniversary dinner. Highlights include: the world...
PRA issues policy statement on trading activity wind-down
Following the four responses received to its consultation paper, the PRA has published its final policy on trading activity wind down. The policy statement is relevant to all PRA-authorised UK banks, their qualifying...
FCA launches new IFPR webpage
The FCA has launched a new webpage which sets out how to submit MIFIDPRU applications and notifications. It also includes information for IFPR firms about MIF returns.
FCA warns firms to stop using misleading credit ads
The FCA has written to c.28,000 consumer credit firms warning them not to use terms such as ‘no credit check loans’, ‘loan guaranteed’, ‘pre-approved’ or ‘no credit...
FCA launches latest “scam smart” campaign
FCA has launched its latest “scam smart” campaign with case studies on increasingly sophisticated scams including those involving screen sharing which enabled scammers to take £48,000 from a consumer’s...
FCA hires trio of senior individuals
As part of its transformation programme, FCA announced that: Mel Gunewardena will take up a senior advisor role at the FCA; Graeme Reynolds has been appointed director of competition; and Simon Walls has been appointed...
PRA launches biennial insurance stress test
PRA has launched its biennial stress test for life and general insurers. It has sent the test to the largest firms and has asked for submissions by 28 September, and is hosting a seminar on 11 May with a Q&A...
ESMA issues recommendations to improve investor protection
ESMA published its final report to enable investors to get the key information required to make well-informed investment decisions both quickly and easily, whilst also protecting them from aggressive marketing...
FSB issues consultation on supervisory and regulatory approaches to climate-related risks
FSB has launched a consultation on supervisory and regulatory approaches to monitor, manage and mitigate risks arising from climate change. FSB recommendations include: supervisory and regulatory reporting and...
FCA publishes H1 2022 complaints data
FCA has published its H1 2022 complaints data. In 2021 H2, financial services firms received 1.84m complaints, 10% lower than in 2021 H1 (2.04m). This is the lowest level recorded since 2016 H2. The insurance and pure...
FCA issues consultation on protecting investors in authorised funds affected by the invasion of Ukraine
FCA is consulting on rules which will allow Authorised Fund Managers to create separate unit classes (side pockets) for retail investment funds affected by the invasion of Ukraine. The Russian invasion of Ukraine has...
PRA outlines progress on its ‘Operational Resilience Roadmap’
David Bailey, PRA’s Executive Director responsible for Deposit Takers Supervision, has given a speech at the UK Finance Webinar “Operational Resilience and Beyond”. In his introduction, Mr Bailey noted...
Stephen WilsonTreasury consults on reforms to Solvency II
HM Treasury has published its consultation on post-Brexit reforms to the Solvency II regime which it hopes will unlock investment, increase market access for new insurers and offer greater consumer choice. The reforms...
Government sets out approach to protecting wholesale cash infrastructure
HM Treasury has published its policy statement on protecting UK wholesale cash infrastructure. The government intends to create an oversight regime which will: give the BoE oversight over, and the ability to regulate...
PRA poses alternative approach to bank capital requirements
PRA CEO, Sam Woods, delivered a speech at City Week 2022 in which he set out “a radical, alternative approach” to bank capital requirements. The proposed approach would involve: a single capital buffer...
FCA launches Early and High Growth Oversight initiative
Following a successful pilot, FCA are expanding their Early and High Growth Oversight initiative, to provide targeted support for 300 newly authorised firms by the end of 2023. FCA will provide enhanced supervision for...
FCA uses emergency powers on BSPS advisers
FCA has made rules using its emergency powers to prevent firms taking steps to dispose of their assets to avoid paying compensation in relation to BSPS pension transfer advice. It says it is introducing the rules...
Head of Insurance Policy at PRA gives speech on the future of international insurance
Alan Sheppard, the head of Insurance Policy at the PRA, discussed how the PRA can foster the role of the UK as an international centre for insurance and reinsurance business. His speech focused on: the importance of...
FCA revised Complaints Scheme delayed
Following a joint consultation with the Bank of England and the PRA which ended on 12 October 2020, the FCA has advised they are still in the process of updating their Complaints Scheme which promises to be more user...
Funeral plans update: RAO amendments made
The FSMA (Regulated Activities) (Amendment) Order 2022 has been published, together with an explanatory memorandum. It makes several amendments to FSMA and secondary legislation, primarily the RAO, in preparation for...
PRA updates on Gibraltar passporting
The PRA has confirmed that the transitional passporting rules will continue for firms operating between the UK and Gibraltar until 31 December 2022. These transitional arrangements can be further extended until the...
PRA consults on fees and levies for 2022/23
PRA has issued a consultation paper setting out proposals for its fees for 2022/23. The proposals include: the fee rates to meet the PRA’s 2022/23 AFR; fees applicable to firms in the temporary regimes; changes to the...
FOS publishes complaints data from H2 2021
Between 1 July and 31 December 2021, FOS received a total of c.73,200 complaints of which 37% were upheld.
FOS has also published its latest half-yearly data on the number of complaints received about CMCs.
Regulators provide update on joint transformation programme
BoE and FCA are working to transform data collection from the UK financial sector through the joint transformation programme that has been set up with industry. The regulators have provided an update on the...
PRA updates on capital arbitrage transactions approach
The PRA has issued a statement acknowledging that some PRA-regulated firms have conducted (or may be considering doing so) deficit reduction transactions with their defined benefit pension schemes that are structured to...
FCA publishes thematic review on wind-down planning
FCA has published its thematic review looking at wind-down planning across different business models, with a focus on liquidity needs during wind-down, intra-group dependencies and wind-down triggers. It has reiterated...
FCA confirms non-opposition to Amigo scheme
FCA has written to Amigo Loans to confirm it will not be attending the hearings to oppose its proposals for its Scheme of Arrangement. FCA has previously said the new proposal is an improvement on the failed proposal of...
FCA opens annual consultation on its regulatory fees and levies for 2022/23
FCA has published its 2022/23 Business Plan, setting out its priorities for the coming year and how it plans to achieve its objectives. The fees consultation explains how FCA proposes to recover the costs of carrying...
Chancellor outlines climate change recommendations for the regulators
Rishi Sunak has written to the FCA and the BoE setting out recommendations in relation to the government’s commitment to achieve net zero by 2050 to supplement those outlined in his letters of March 2021. The...
Lords Committee writes to Treasury on commercial insurance and reinsurance regulation
Lord Hollick, Chair of the Industry and Regulators Committee, has written to John Glen following Mr Glen giving evidence to the Committee’s inquiry into commercial insurance and reinsurance regulation. Amongst...
FCA sets out strategy to improve outcomes
FCA has published its Business Plan with its new 3 year strategy aimed at preventing serious harm, setting higher standards and promoting competition. Among the measures it is taking is the creation of 80 new roles to...
FCA boosts authorisation capability
FCA has appointed Laura Dawes and Dominic Cashman as Directors of Authorisations, starting from late April/early May. It will also appoint a new Finance Director, Craig Chapman. The appointments come as FCA commits to a...
FCA talks of a “digital regulator”
Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...
EU adopts additional equivalence decisions for US exchanges
The European Commission (EC) has adopted a decision declaring that a number of US exchanges supervised by the US Securities Exchange Commission (SEC) are equivalent to EU regulated markets. Derivatives traded on such US...
FCA, Bank of England and PRA joint statement on LME and LME Clear
The London Metal Exchange (LME) suspended nickel trading on 8 March 2022, having concluded that a disorderly market had arisen due to challenging commodity market conditions following the events in Ukraine. Nickel...
FSCP backs FCA’s plans to strengthen fin prom rules for high risk investments
The Financial Services Consumer Panel (FSCP) has published its response to the FCA’s consultation on how to improve its financial promotion rules for high risk investments, which closed on 23 March. The FSCP...
MEPs vote on draft crypto legislation
MEPs from ECON and the Committee on Civil Liberties have voted to adopt their position on draft crypto legislation which forms part of the EU’s wider package of measures aimed at strengthening AML/CFT rules in the...
PSR publishes its annual plan and budget for 2022/23
PSR has published its 2022/23 annual plan and budget. PSR stated that the payments landscape is evolving and there are issues that need to be addressed. These include the prevalence of APP fraud, risks to effective...
ESMA addresses asset management industry on sustainable finance and systemic risk
On 24 March 2022, Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), delivered her keynote speech to the participants of the ICI Investment Management Conference 2022. In her...
FOS outlines strategic plans for 2022/23
FOS has published its plans and budget for 2022/23. In the coming year, FOS: expects to receive 177,000 complaints and resolve 220,500 complaints; will continue to ensure it is equipped to respond to complexity and...
FCA consults on update to electronic reporting under DTR
FCA currently allows issuers to use, among other taxonomies, the UK Single Electronic Format (UKSEF) 2022 taxonomy from the Financial Reporting Council (FRC) to mark up their annual financial statements within the...
CMA makes recommendations for the future oversight of Open Banking
The CMA launched a public consultation on the future oversight of Open Banking in March 2021, and has now published the responses to that consultation. CMA’s recommendations are that the future entity should: have...
FCA publishes operational resilience insights for insurance firms
On 29 March 2021, the FCA, together with the BoE and PRA, published a shared policy statement on requirements to strengthen operational resilience in the financial services sector. The rules and guidance will come into...
FSCS management expenses levy limit set for 2022/23
The PRA has issued a Policy Statement (PS) including feedback to responses to Consultation Paper (CP) ‘Financial Services Compensation Scheme – Management Expenses Levy Limit 2022/23’. The PS is relevant to all...
FCA updates on operational and cyber resilience following Russian invasion
The FCA has published some pointers that firms should consider regarding operational and cyber resilience following Russia’s invasion of Ukraine. Firms are advised to consider the following: the firm’s ability...
Regulators remind firms of crypto risks
PRA and FCA have written to firms reminding them of their obligations when interacting with or exposed to crypto-assets and related services. FCA reminds firms that crypto can offer benefits but also increased risk to...
EBA finds AML and CFT supervision of banks is improving
EBA published the findings from its assessment of competent authorities’ approaches to AML and CFT supervision of banks. Since the EBA started its reviews in 2019 and strengthened its AML/CFT guidance, national...
ASA cracks down on misleading crypto ads
ASA has issued an Enforcement Notice to over 50 firms which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated...
FCA portfolio strategy letter on custody
FCA’s latest letter on its portfolio supervision strategy relates to custody and fund services. It sees 4 areas of potential harm: disruption to consumers and market participants, or the loss, compromise, or lack...
BoE to consult on Basel 3.1 at end of 2022
BoE has confirmed that it is continuing to develop proposals to implement Basel 3.1, following the two PRA policy statements of 2021. It notes that the timing of implementation was dependent on a number of factors, not...
CMA writes to banks on banking order breaches
CMA has written to both Barclays and Lloyds about breaches of the Retail Banking Order. It found Barclays had breached the Order 13 times and Lloyds 10 times through inaccurate publication of information through APIs.
IOSCO consults on retail market conduct
IOSCO has published a consultation report from the Retail Market Conduct Task Force. The report looks at recent retail investor trends and the development of a regulatory toolkit to help regulators consider emerging...
Treasury and FCA discuss regulatory perimeter
The government has published a summary of the 15 December 2021 meeting between John Glen and Nikhil Rathi in which they discussed FCA’s Perimeter Report (published 21 October 2021). The meeting focussed the topics...
FOS award limits increased
FCA has confirmed the increase to the FOS award limits. From 1 April 2022, these will change to: £375,000 for complaints referred to FOS on or after 1 April 2022 about acts or omissions by firms on or after 1 April...
Bank of England responds to Committee report on digital currencies
The Bank of England (the Bank) has thanked the House of Lords Economic Affairs Committee for its report on the Central Bank Digital Currency and in a letter addressed to the House of Lords, the Bank addresses the...
Government introduces Online Safety Bill to parliament
The government has agreed to make changes to the Online Safety Bill and has now introduced the Bill into the Commons. The government has also responded to the Joint Committee on draft Online Safety Bill’s report...
Final Report on UK Payments Regulation Review
UK Finance has published its final report on the regulation of UK payments. The UK enjoys a robust and successful regulatory and supervisory regime for payment services and payment systems. However, the degree of...
Consumers warned on the risks of crypto-assets
The European Supervisory Authorities (EBA, ESMA and EIOPA – the ESAs) warn consumers that many crypto-assets are “highly risky” and speculative. The ESAs advised that sufficient measures are needed to...
Lloyd’s responds to market misconduct
Lloyd’s has issued a notice of censure to Atrium, a managing agent in the Lloyd’s market. The firm admitted three charges of misconduct, and Lloyd’s Enforcement Board levied its largest ever fine of...
HM Treasury publishes ringfencing Review
In 2020, the Treasury appointed an independent panel to: review the operation of the legislation related to ring-fencing; and review banks’ proprietary trading activities following a statutory report from the PRA...
FMLC letter to Treasury: Financial Promotions Rules for Cryptoassets
The Financial Markets Law Committee (FMLC) has issued a letter to Treasury following the Treasury’s response to its 2020 Consultation on cryptoasset promotions. The letter highlights that the FMLC has identified...
New rules on cryptocurrencies in the EU
MEPs have agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including cryptocurrencies such as bitcoins. For those issuing and trading crypto-assets, the new...
PRA Occasional Consultation on minor changes
The PRA has issued a Consultation Paper setting out proposals to make minor amendments to UK Technical Standards (UKTS), PRA rules, supervisory statements, Legacy Supervisory Statements, and a Statement of Policy...
FCA publishes lender portfolio letters
FCA has published its most recent porfolio strategy letters for: retail mortgage lenders; non-bank lenders; and building societies. Common themes in the letters are: that the response to the pandemic has shown FCA and...
Government launches consultation on online advertising
The government has launched its Online Advertising Programme consultation which will review the regulatory framework of paid-for online advertising in a bid to improve transparency and accountability and tackle harmful...
Government outlines priorities for the digital regulatory landscape
Following the publication of the Plan for Digital Regulation last summer, the government has written to the Digital Regulation Cooperation Forum (DRCF) setting out its priorities for the digital regulatory landscape and...
FCA portfolio letter for Credit Unions
The FCA has published a portfolio letter to Credit Union Boards setting out the usual key risks of harm that are present for Credit Unions, their members and the markets in which they operate. The letter asks firms to...
FCA comments on Amigo Scheme proposal
FCA has published a letter that it wrote to Amigo Loans confirming that it does not plan to attend the hearing to oppose the proposed Scheme of Arrangement. It thinks the new proposals are preferable to the ones in the...
FCA consults on miscellaneous rule changes
FCA’s latest quarterly consultation covers: proposed changes to PERG in respect of the MiFID 2 ancillary activities test; making collective investment portfolio managers subject to the same research and inducement...
PSR issues new Specific Direction 12 to LINK
The PSR has given Specific Direction 12 (SD12) to Link Scheme Holdings Ltd (LINK) allowing them to maintain the broad geographic spread of the UK’s free-to-use (FTU) cash machine network. The new Direction follows...
FCA updates on Green FinTech Challenge 2021
FCA has accepted 10 firms into its Green FinTech Challenge 2021 which aims to enable the FCA to take a more active role in driving innovation in products and services that will aid the transition to a net-zero economy...
FCA publishes Consumer investments data review
The FCA has published its third Consumer investments data review. The review provides an overview of FCA’s work to protect consumers from investment harm between April and September 2021. This follows FCA’s...
PRA speaks on insurance supervisory priorities
Charlotte Gerken of the PRA has spoken of its supervisory priorities for the sector during 2022. She looked at: climate change diversity and inclusion operational resilience: she commented in particular that, in...
Treasury publishes prudential consultation outcome
Treasury has published the outcome of its consultation on implementation of the IFPR and Basel 3. The latest update looks at how to amend the definition of “investment firm” in s48D Banking Act 2009 to...
ASA successfully challenges crypto ads
The ASA challenged an ad for Floki Inu, a cryptocurrency, which was made via a poster displayed on the Tube in November 2021. The poster had a cartoon dog in a Viking helmet with text saying “Missed Doge. Get...
Treasury publishes response to Wholesale Markets Review consultation
HM Treasury has published the response to the Wholesale Markets Review consultation, setting out the feedback received and outlining how the government plans to take forward the various proposals. A full breakdown of...
FCA makes new rules
The FCA’s latest Handbook Notice confirms changes to: apply the rules set out in the Funeral Planning Conduct of Business (FPCOB) sourcebook to funeral plan providers selling their own plans directly to customers...
FCA fines Barclays over collapsed payment firm oversight
FCA has fined Barclays £783,800 for oversight failings in its relationship with Premier FX, a payments firm which is in liquidation. Barclays was Premier’s sole UK banker. FCA found that Barclays failed to make...
EBA publishes final Guidelines on limited network exclusion
The European Banking Authority (EBA) has published its final Guidelines on the limited network exclusion under the Payment Service Directive (PSD2). The Guidelines clarify how competent authorities should assess whether...
FCA launches webpage on branch and ATM closures
The FCA has published a new webpage on bank branch and ATM closures or conversions. The webpage sets out examples of good and poor practice that the FCA has seen when supervising firms planning branch or ATM closures...
Dormant Assets Act gets Royal Assent
The Dormant Assets Act got Royal Assent on 24 February, The Act expands the scope of “dormant assets” that has encompassed cash in bank and building society accounts since 2008 to include a greater range of...
FOS publishes latest quarterly complaints data
The Financial Ombudsman Service (FOS) has published its latest quarterly data on complaints in relation to financial products. This data covers the period October to December 2021, and is available in full as a...
FSCB publishes report on inclusion survey
The Financial Services Culture Board (FSCB) and Financial Services Skills Commission (FSSC) have published a report on their survey of inclusivity in the financial services sector. The report contains data from the...
FCA Portfolio letter to credit rating agencies
FCA has published a portfolio letter setting out the risks of harm in the credit rating agency sector, and its regulatory expectations. This is the first of its letters aimed at the sector, which it supervises under the...
FCA responds to APPG letter before claim
The FCA has responded to a letter before claim under the pre-action protocol for judicial review from the All Party Parliamentary Group on Fair Business Banking (APPG). APPG’s letter before claim refers to the...
EBA updates methodology for assessing equivalence
The Capital Requirements Regulation (CRR) provides that certain risk exposures to entities located in third countries can be treated, for risk-weighting purposes, as exposures in EU Member States, provided that the...
New courses for compliance professionals
We are excited to have agreed with the Compliance Register to present at several key courses over the coming months. We will be presenting on: financial crime prevention SMCR the regulatory regime financial promotions...
EBA publishes report on responses to 2020 Luanda Leaks
The EBA has published its report on its assessment of competent authorities’ responses to the 2020 Luanda Leaks. The Luanda Leaks involved the International Consortium of Investigative Journalists (ICIJ)...
Tribunal upholds FCA’s Decision Notice
HMCTS (Tribunal) has dismissed two applications made by an applicant against the Financial Conduct Authority (FCA). The FCA had given a Decision Notice to Przemyslaw Soszynski t/a Phenix Consultancy (Applicant) refusing...
LSB publishes thought piece on supporting customers
The Lending Standards Board (LSB) has published a thought piece looking at the UK’s cost of living crisis and how firms can support customers in pre-arrears and financial difficulty. The thought piece identifies...