FCA has published a consumer warning on Grosvenor Associates Limited. It says it has removed the firm’s permissions, so it is no longer authorised to carry out any regulated activities and investments with it may...
Category - Supervision
Emma RadmoreFCA publishes policy statement on new CMC charging rules
The FCA has published its policy statement on restricting CMC charges for non-PPI financial products and services claims. This follows the FCA’s corresponding consultation which ran from 21 January to 21 April...
FIN. TeamFCA publishes Frensham Wealth Limited supervisory notice
The FCA has published a supervisory notice addressed to Frensham Wealth Limited. The notice removes all regulatory activities from the firm’s Part 4A permissions with immediate effect. This follows the FCA’s...
FCA confirms changes to decision-making process
FCA has confirmed the changes to its decision-making process that will allow more decisions to be taken by senior managers rather than by the RDC. Senior managers will be able to make decisions under “executive...
FCA publishes final policy statement on IFPR
Following its first two policy statements, the FCA has published its third and final policy statement marking the completion of its rules to introduce the UK Investment Firm Prudential Regime (IFPR). The final rules...
Emma RadmorePRA consults on operational resilience and continuity in resolution
PRA is consulting on operational resilience and operational continuity in resolution. The proposals on resilience cover UK banks, building societies, PRA designated investment firms, financial and mixed financial...
Treasury provides update on Wholesale Markets Review
John Glen MP delivered a speech to the UK Finance Annual Dinner in which he provided an update on the Wholesale Markets Review. Mr Glen noted that there has been a broad consensus on the vast majority of the issues...
UK Finance looks at operational resilience
In advance of the new operational resilience requirements taking effect on 31 March 2022, UK Finance has highlighted the following key themes of importance to both customers and the FCA: Simplicity – customers expect...
FCA updates on KPIs
FCA has published its KPIs for the first quarter of 2021. Workload in all areas has gradually increased, but service standards have generally remained constant, as has the pattern of firms and percentage of withdrawals...
UK Finance makes Open Banking recommendations
UK Finance has published a report setting out its recommendations for the future strategy of open banking. Open banking payments have increased exponentially over the past 3 years and there are now over 2.5m each month...
FCA updates on IFPR
The FCA has published the following additional MIFIDPRU applications forms under IFPR: Application under MIFIDPRU 2.3.1R to be exempt from disclosure requirements in MIFIDPRU 8 (disclosure by investment firms) for SNI...
FCA recognises revised FX Global Code and Global Precious Metals Code
The FCA confirmed today under its code recognition process that it is recognising: the updated FX Global Code (FX Code); and the Global Precious Metals Code (PM Code). FCA has updated its ‘Recognising industry...
FCA consults on debt packager referral fees ban
The FCA is proposing new rules to ban debt packagers from receiving referral fees from debt solution providers. The proposals follow concerns that consumers are receiving non-compliant debt advice that is biased towards...
European Commissioner speaks at EPIF annual conference
Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, recently gave a speech at the European Payment Institutions Federation (EPIF) Annual Conference. She...
Commons Library publishes “Black Friday promotions” paper
The House of Commons Library has published a research briefing on the promotion and regulation of financial products on Black Friday. A debate has been scheduled for 23 November and has been initiated by Stella Creasey...
Dormant Assets Bill under inspection
The Dormant Assets Bill is making its way through the House of Lords, where members have voted on two changes to the Bill at report stage. It will now has its third reading on the Lords before moving to the Commons. The...
Market Watch looks at web-based trading platforms
The latest edition of Market Watch focusses on web-based trading platforms and sets out the FCA’s concerns about gaps in users’ surveillance of web-based platform activity. Highlights include: Market abuse...
PRA publishes CRR mapping table
PRA has published a document showing which CRR provisions that Treasury has revoked since Brexit where PRA has made its own rules on the revoked matters.
FCA confirms more LIBOR rules
FCA has confirmed its new rules for: legacy use of synthetic LIBOR rates; and no new use of USD LIBOR. It will allow temporary use of synthetic sterling and yen LIBOR rates in all legacy LIBOR contracts other than...
Basel Committee consults on principles for climate-related financial risks
The Basel Committee on Banking Supervision is consulting on principles for the effective management and supervision of climate-related financial risks. The consultation, which follows a series of analytical reports...
CMA letter to Danske Bank on breach of SME Banking Undertakings
The CMA has written to Danske Bank regarding the Bank’s second breach of the SME Banking Undertakings 2002. Relationship Managers at Danske Bank required up to 205 SMEs to open a business current account (BCA) to...
FSCS confirms levies
The latest edition of FSCS’ “outlook” newsletter sets out its latest forecast for the current year, which is lower than previously forecast but still £17m higher than last year’s levy. It means...
FCA writes to funeral plan providers
The FCA has published a Dear CEO letter on applying for authorisation as a pre-paid funeral plan provider or intermediary. The letter provides the following information to support firms’ preparations for...
FCA publishes IFPR amendments
FCA has set out several amendments it has made to the original text of the near-final IFPR Instrument, including changes to: The glossary definition of ‘UK parent investment firm’; MIFIDPRU 4.14.1R(2)(b) and...
Treasury extends Gibraltar transitional passporting rules
Treasury has made the Financial Services (Gibraltar)(Amendment)(EU Exit) Regulations 2021. The Regulations extend the current passporting arrangements that allow Gibraltar-authorised firms to do business in the UK. The...
FCA to issue compliance survey to GI firms
The FCA has added a new section to its webpage on general insurance pricing – attesting compliance. The rules in PS21/5 require senior managers of general insurance firms to provide annual confirmation that their firm...
Treasury consults on future regulatory framework
Treasury is consulting on proposals for reform to the financial services regulatory framework, following the Chancellor’s announcement in his July Mansion House speech. The consultation builds on the October 2020...
FCA, BoE and FMSB sign MOU
The FCA, Bank of England, and Fixed Income, Currencies and Commodities Market Standards Board (FMSB) have signed a joint Memorandum of Understanding. The Memorandum sets out a framework for the continuation of...
FMLC reports on UK bank ring-fencing legislation legal uncertainties
Legislation requiring UK banks to separate the provision of core retail services from other activities within their groups has been in force since 1 January 2019. This so-called “bank ring-fencing regime”...
PRA publishes responses to CP13/21 occasional consultation paper
The PRA has published a policy statement (PS25/21) which sets out its final policy on the various proposals it consulted on in occasional paper CP13/21. These proposals included: For banks, building societies and PRA...
FCA confirms final rules on funeral plans regulation
Following its consultation earlier this year, the FCA has published its final rules on the regulation of pre-paid funeral plans which will take effect from 29 July 2022. The latest policy statement sets out additional...
UK Finance paper on the PRA’s outsourcing expectations
UK Finance has published a paper on the PRA’s supervisory statement on outsourcing and third-party risk management (SS2/21). The paper summarises the key elements of SS2/21 and reminds firms that they are expected...
FCA delivers speech on data-led regulation
The FCA’s chief data, information and intelligence officer, Jessica Rusu, has delivered a speech on the FCA’s role as a data-led regulator. The speech explores the FCA’s response to new technologies...
FCA publishes regulatory initiatives grid
The Financial Services Regulatory Initiatives Forum (FSRIF), which is made up of representatives of the BoE, FCA, PRA, PSR, CMA, ICO, TPR and FRC has published its most recent biannual regulatory initiatives grid. The...
FCA issues final notice after conspiracy to defraud conviction
The FCA has published a final notice banning Colin Bermingham from performing any function in relation to any regulated activity carried on by any authorised or exempt person or exempt professional firm. In 2019, Mr...
FCA, PRA, TPR and FRC publish Climate Change Adaptation Reports
The FCA, PRA, TPR and FRC have issued a joint statement regarding their publication of Climate Change Adaptation Reports. The statement emphasises the regulators’ focus on proactively managing both climate-related...
ESMA makes statement on investment recommendations on social media
ESMA has made a statement on investment recommendations on social media. Following a rise in these types of promotion, and concerns that retail investors do not understand the risks involved in following these...
FCA publishes updated complaints data
FCA has published its six-monthly set of data on complaints that firms receive. Its latest findings include: a 7% decrease in complaints from H2 2016, with the 2.04m complaints being the lowest level since late 2016;...
EU Banking Package 2021
The European Commission has today adopted a review of the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) to ensure that EU banks become more resilient to potential future economic...
PSR publishes consultation on Specific Direction for free-to-use ATMs
The PSR is proposing to issue a new Specific Direction to support LINK in meeting the objective of continuing to maintain a broad geographic coverage of the Free-to-Use ATM network in the UK. The draft Specific...
IOSCO updates outsourcing principles
The International Organisation of Securities Commissions (IOSCO) has published the final report on its updated outsourcing principles. The report covers the definition of outsourcing, the assessment of materiality and...
FCA updates guidance on TPR landing slot changes
FCA has already started to email firms in the Temporary Permissions Regime (being firms that previously passported into the UK under Schedule 3 or Schedule 4 to FSMA) to confirm their ‘landing slot’: the...
FCA makes new rules
In addition to the new IFPR rules covered in a separate post, FCA has made: changes to COBS, effective from 4 October, on assessing value for money in workplace pension schemes; and the role of IGCs in challenging...
NAO updates on BSPS
The National Audit Office has set a timescale for reporting in Spring 2022 on its investigation into the activities FCA has undertaken to regulate financial advice in relation to the restructure of the British Steel...
FCA publishes final IFPR rules
The FCA has converted the near-final rules from its first two policy statements on IFPR into final rules, which are set out in the legal instruments FCA 2021/38 and FCA 2021/39. The FCA will publish a third policy...
Climate financial risk forum publishes guides on managing climate related risks
The Climate Financial Risk Forum (CFRF), which was established in 2019 and is chaired jointly by the PRA and FCA, has published its second set of guides (the ‘Session 2 guides’) to assist financial firms in...
FCA publishes 2020/21 Perimeter Report
The FCA has published its latest Perimeter Report, in which it calls for greater consumer protection and legislative change to address concerns beyond its remit. Highlights include recommendations that: duties on...
EBA publishes final draft RTS on investment policy disclosure
The European Banking Authority (EBA) published today new regulatory technical standards (RTS) on disclosure of investment policy by investment firms. The final draft RTS provides for: specified information that...
Bank of England launches first public CCP supervisory stress test
The Bank of England (BoE) has today launched its first public supervisory stress test (SST) of UK central counterparties (CCPs) to take place over 2021-22 with the clearing services of all in-scope UK CCPs: ICE Clear...
FCA modifies list of derivatives subject to derivatives trading obligation
The Financial Conduct Authority (FCA) has modified the list of derivatives subject to the derivatives trading obligation (DTO) in line with Articles 28 and 32 of UK MiFIR in the newly released PS13/21 in response to the...
FCA publishes financial promotions data
The FCA has published the number of financial promotions which have been amended or withdrawn due to non-compliance with FCA rules in Q3 2021. In the last quarter, the FCA reviewed 514 financial promotions by authorised...
FCA fines adviser for pension transfer advice failings
The FCA has published a final notice banning Omar Hussein, former director at pension switching firm Consumer Wealth Ltd, from working in financial services. Mr Hussein has also been fined £116,000 for providing...
Charles Randell to step down as FCA and PSR Chair
Charles Randell has told the Chancellor that he is to step down as Chair of FCA and the PSR from Spring 2022. He will not be moving to any other position, but feels the time is right for a change. Mr Randell was...
PRA publishes final rules on Basel implementation
Following the publication of near-final rules in July, the PRA has published a policy statement (PS) setting out its CRR rule instrument to implement part of the Basel standards that still need to be implemented in the...
FCA portfolio letter to Lloyd’s participants
The latest portfolio supervision letter from FCA is addressed to Lloyd’s and London market insurers and others. The letter follows on from the November 2020 version and, generally, commends the market for its...
FOS blogs on distress and inconvenience payments
FOS has published a blog of its thoughts on how it assesses awards for distress and inconvenience. Its guidance has not fundamentally changed, but has been refreshed after firms said more clarity would help them. FOS...
BoE looks at financial stability risks of crypto
Jon Cunliffe has spoken of the potential risks to financial stability of crypto assets such as bitcoin and stablecoins. Crypto assets have grown by 200% in 2021 alone. Mr Cunliffe feels that they have the potential to...
CMA to take no action against Lloyds for Retail Banking Order breach
CMA has confirmed it will not be taking any further action against Lloyds Bank following the bank’s failure to display required information in relation to SME loans on one page of its website, which potentially...
ESMA seeks stakeholder input on retail consumer protection
The European Securities and Markets Authority (ESMA) today publishes a call for evidence on a number of retail investor protection topics under MiFID II. ESMA is seeking information from stakeholders on three topics:...
PSR responses to consumer protection in interbank payments
The Payment Systems Regulator (PSR) has published the outcome of its consultation on consumer protections in interbank payments in PS21/2 – “Consumer protection in interbank payments – response to CP21/4“...
FCA outlines remote working expectations for firms
The FCA has published a new webpage which sets out its expectations for firms working in a remote or hybrid environment so firms can continue to meet their regulatory responsibilities. Firms should be able to prove that...
PRA consults on trading activity wind-down
The Prudential Regulation Authority’s (PRA) has published the Consultation Paper CP20/21: “Trading activity wind-down“, which sets out the proposed expectations in respect of firms’ engagement in trading...
PRA policy statement on UK leverage ratio framework
The Bank of England has published the Prudential Regulation Authority (PRA) policy statement PS21/21, which contains feedback from the Financial Policy Committee (FPC) and the PRA on responses to the Consultation Paper...
FSB reports on regulation, supervision and oversight of global stablecoin arrangements
The Financial Stability Board (FSB) has published a progress report on the implementation of its high-level recommendations on the regulation, supervision and oversight of “global stablecoin” arrangements...
FCA publishes final notice on fraud
The FCA has published a final notice banning Shaffarat Parvez from performing regulated activities. Whilst a director and an approved person at an authorised firm, Mr Parvez engaged in criminal activity and was...
FSSC launches Future Skills Framework
The Financial Services Skills Commission (FSSC) has launched its ‘Future Skills Framework‘. The online tool will provide organisations with a uniform set of 8 essential industry skills and behaviours...
EU – US Joint Financial Regulatory Forum updates on initiatives
EU and US participants in the EU – US Joint Financial Regulatory Forum met virtually at the end of September as part of their ongoing financial regulatory dialogue. The participants included, amongst others: the...
CMA welcomes new power to tackle competition and consumer law breaches
The Competition and Markets Authority (CMA) welcomes the Government’s proposals in publishing its responses to the two recent consultations: “Reforming competition and consumer policy“ and “A new...
CMA report on allegations at the Open Banking Implementation Entity
The CMA has published its findings following an investigation into allegations at the Open Banking Implementation Entity (OBIE). The OBIE was set up in 2017 to implement Open Banking, enabling consumers and SMEs to...
FCA portfolio letter to wealth management and stockbroking firms
FCA has published its portfolio supervision letter to the wealth management and stockbroking portfolio. The letter focuses on FCA’s plans for the Consumer Duty and what it would mean for firms. It also notes the...
PRA writes to CFOs on auditor reporting
PRA has provided CFOs with thematic feedback from the 2020/21 round of written auditor reporting. The letter combines, anonymously, key observations submitted by auditors in respect of specific firms. It focuses on...
Regulators write to firms on cyber findings
BoE, PRA and FCA have written to firms on their 2021 CBEST thematic findings. The comments are addressed to the individual SMF holder with responsibility for cyber, noting that the individual is responsible for:...
CMA revokes Santander directions
The CMA has revoked the Directions under the Retail Banking Market Investigation Order originally given to Santander in December 2018 in respect of delivery of Release 1 of Open Banking by Cater Allen, after receiving...
BoE writes outsourcing Dear CEO letters to FMI providers
The BoE has written to the CEOs of central counterparties, recognised payment system operators, specified service providers and central securities depositories and on its supervisory expectations in relation to...
FCA consults on decisions on use of LIBOR
FCA is consulting on its proposed decisions to use its powers under the amended Benchmarks Regulation for certain LIBOR settings. It seeks views on whether and how to permit legacy use of 1 month, 3 month and 6 month...
PSR publishes approach to Interchange Fee monitoring
The PSR has updated its guidance on how it monitors and enforces the Interchange Fee Regulation in the UK. The update from the 2020 version is mainly to take account of Brexit. The guidance is relevant not only to card...
ESMA publishes 2022 work programme
ESMA has published its Work programme for the next year. It plans to focus on: its supervisory powers over benchmarks, DRSPs and CCPs; the CMU; sustainable finance and innovation; convergence of supervisory and...
Treasury answers questions on BNPL and pension transfer advice
Published answer to written questions include: in answer to a question on when the BNPL legislation will be put forward, Lord Agnew said there would be a consultation document “soon”; in answer to a question...
FCA warns on credit intermediary application delays
FCA has updated its webpage on how to apply for authorisation to warn firms that it is receiving an extremely high volume of applications from credit intermediaries, such that allocating a case officer is taking up to 6...
FIA releases principles for cross-border regulation
The Futures Industry Association (FIA) has released a policy paper outlining seven principles to guide the regulation of cross-border activities in the derivatives markets. The paper addresses the threat of market...
Treasury Committee publishes Greensill report responses
The Treasury Committee has published the responses from the Government, FCA and BoE to its report on lessons to be learned from the failure of Greensill Capital. The Committee’s recommendations specific to...
FCA delivers speech on diversity and inclusion
FCA Executive Director Sheldon Mills delivered a speech highlighting the importance of culture and the FCA’s intention to prioritise D&I. Mr Mills also spoke about the need for meaningful progress in relation...
Government publishes report on regulation of Football Index
The government has published its report of the independent review of the regulation of Football Index. BetIndex Ltd provided a gambling product, Football Index, which allowed customers to bet and receive dividends on...
Up next from the regulators
Nikhil Rathi and Sam Woods, CEOs of the FCA and PRA respectively, have set out the regulators’ current areas of focus. Highlights from Mr Rathi’s speech include that the FCA: is collaborating with...
Basel Committee calls for greater resilience against cyber threats
The Basel Committee has published a newsletter encouraging banks to adopt more resilient measures relating to cyber security. This was triggered in part by the increase in cyber threats since the beginning of the COVID...
Complaints Commissioner rejects unregulated investments complaint
The Complaints Commissioner has published its decision to reject a complaint made about the FCA’s failure to regulate unregulated investments. The complainant, who suffered financial loss having invested in...
Responses published on future framework for regulation of financial services
The government, FCA and BoE have responded to the Treasury Committee’s fifth report on the future framework for regulation of financial services. Government response The government’s response is brief as it...
FCA speech: proposals for a new listing regime
Clare Cole, Director of Market Oversight at the FCA, has delivered a speech on the FCA’s proposals for a new listing regime. Highlights include: the UK Listing Review, chaired by Lord Hill, achieved unprecedented...
FCA publishes consumer investment strategy
The FCA has published a new strategy to give consumers the confidence to invest and to tackle investment harm. By 2025, the FCA aims to: reduce by 20% the number of consumers who could benefit from investment earnings...
Government and FCA respond on LCF Report
The Treasury Committee has published responses from the Treasury and the FCA to its report on the FCA’s regulation of London Capital & Finance plc (LCF). Highlights from the government’s response...
Up next from FCA
The FCA’s latest Policy Development Update highlights: a policy statement on restricting CMC charges for financial products and services claims – expected to be published on 25 October 2021; and a policy statement...
FCA consults on new cancellation and variation power
The Financial Services Act 2021 has given the FCA an additional power, allowing it to more quickly and efficiently: vary or cancel the statutory permissions to conduct FCA-regulated activities of many FCA-authorised...
Treasury consults on Banking Act amendment
Following the decision to remove FCA regulated 730k investment firms from the scope of the UK resolution regime, the government is now consulting on whether short-term liabilities owed to FCA investment firms should...
Industry works on FS strategy plan
TheCityUK has produced a new international strategy aimed at returning the UK to its status as the world’s leading international financial centre within 5 years. If focuses on how to bolster competitiveness and...
FCA calls for funeral plan providers and intermediaries to apply now
FCA has updated its website to tell funeral plan providers and intermediaries what they need to do to ensure they are appropriately authorised by 29 July 2022. It has provided a set of forms that applicants will need...
Andrew Bailey writes to Chancellor on prudential regulation
PRA has published Andrew Bailey’s response to the Chancellor on Treasury’s recommendations on the PRA’s remit. He notes PRA’s work to ensure the Brexit transition period ended without any...
FCA confirms pensions transfer redress guidance review
FCA has confirmed its plans to start a periodic review of its FG17/9 on how firms should calculate redress for unsuitable DB pension transfer advice. It will start the review by the end of 2021, in line with its...
FCA publishes supervisory notice against Dolfin Financial
FCA has published a supervisory notice sent to Dolfin Financial (UK) Limited in March. The requirements in the notice have now largely been cancelled as Dolfin entered special administration. FCA has also redacted parts...
FCA publishes requirements on SIPP operator
FCA has published the second supervisory notice it made in relation to DAC Pensions Limited, a small SIPP operator. The firm had accepted significant business from two EU-based introducers, operating in the UK under...
FCA publishes personal and commercial line insurance portfolio letter
FCA has published its supervisory strategy letter to personal and commercial lines insurers. The letter is dated 28 April, but only just published. The letter updated FCA’s previous communication of January 2020...