FCA is worried that many firms are not currently compliant with its rules and guidance on product governance and value, and will not be ready to meet the new requirements which take effect on 1 October. It has carried...
Category - Supervision
Emma RadmoreFCA sending further resilence survey updates
FCA has started to email its fifth update to the Covid-19 resilience survey. Firms in Tranche 2 are receiving it between 23-25 August, and firms in the TPR and supervisory run off regime will receive it from 26 August...
EBA reports on controller condition peer review
EBA has published its peer review on how regulators assess those acquiring qualifying holdings in banks. Overall, the study found compliance with EBA’s guidelines, leading to significant convergence in practices. ...
FCA publishes life insurance supervisory letter
FCA has published its supervisory strategy for life insurers. The letter updates its communication from December 2018 and looks at: how the 2018 strategy has progressed; FCA’s updated view of the key harm risks;...
FCA writes to investment-based crowdfunders on supervision
FCA has published its Dear CEO letter on its portfolio strategy for investment-based crowdfunders. It notes that if any firm that has received the letter is not currently active in the market it should apply to remove...
FCA writes to mortgage third party administrators
The FCA has written to mortgage third party administrators (TPAs) to set out its view of the key risks TPAs pose to their customers or the markets in which they operate and to outline its expectations of TPAs, including...
Emma RadmoreNext steps for the Consumer Duty
The FCA’s consultation on a new Consumer Duty has now closed and the FCA has outlined its next steps. After considering the responses, the FCA will set out the proposed text for any new rules in a second...
FCA, PRA and SEC enter derivatives MoU
The FCA, PRA and the US SEC have entered into a Memorandum of Understanding (MoU) in relation to consultation, cooperation and the exchange of information in the supervision and oversight of certain over-the-counter...
FCA launches third IFPR consultation
The FCA has published its third and final consultation on the IFPR. The IFPR creates a new regime for solo-regulated MiFID investment firms. The first consultation introduced the IFPR and focussed on the categorisation...
FSSC launches inclusion measurement guide
The Financial Services Skills Commission (FSSC) has launched an inclusion measurement guide to improve and develop inclusion data metrics and analysis across the UK financial services sector. The guide will enable firms...
FCA writes to RemCo chairs
FCA has written to the Chairs of Remuneration Committees within firms to set out its approach to remuneration this year and to highlight the areas RemCo chairs should be considering. Broadly, the Chair must remain...
ESMA publishes guidelines on marketing communications
EMSA has published guidelines on marketing communications under the Regulation on cross-border distribution of funds. The guidelines set out principles on the identification of marketing communications, the description...
FCA launches new whistleblowing webform
The FCA has launched a new online form for reporting concerns about wrongdoing by firms or individuals to the FCA. It has also published a new webpage to help whistleblowers decide where to make a report.
ESMA publishes calls for advice on PRIIPs and wider retail issues
ESMA has published: a call for advice it has received on certain aspects of retail investor protection in which the Commission asks ESMA to advise on: addressing and enhancing investor engagement with disclosures;...
Regulatory sandbox now open year-round
The FCA’s regulatory sandbox is now open permanently, meaning firms can submit their applications throughout the year, rather than on a cohort basis. The FCA has also published guidance for firms applying to the...
FCA consults on streamlining decision making
FCA is consulting on changes to its decision making process. It plans to move some decision-making from the RDC to the authorisations, supervision and enforcement divisions, to speed up the process and give...
FCA updates on MIFIDPRU applications
Following the publication of various MIFIDPRU application forms on 27 July, the FCA has made further application forms available on its website. The FCA intends to make the remaining application forms and all...
FCA publishes individual ban notice
FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000. FCA considers Mr Markou not fit and proper to perform his senior management...
FCA writes to firms on SME lending and BBLS fraud
FCA has published a Dear CEO letter on its expectations of firms in reporting BBLS fraudulent activity. It notes the excellent levels of cooperation within the industry throughout the pandemic and in relation to BBLS...
FCA updates on IFPR
FCA has updated a number of pages on its website to reflect the forthcoming IFPR. Among other things, it has updated its pages on: authorisation applications for wholesale investment firms capital requirements...
PRA updates on international bank supervision
PRA has published a policy statement and updated information on its supervision of branches and subsidiaries of international banks and designated investment firms. Most respondents to its consultation welcomed the...
FCA updates on platforms portfolio strategy
FCA has published an update to its strategy for its platforms portfolio of firms. It first set out its major concerns in February 2020, and has written to firms to update them on its focus going forwards. Its key...
FCA publishes second set of IFPR rules
FCA has published its second “near final” rules on elements of the new IFPR. These rules cover : own funds requirements firms acting as clearing members and indirect clearing firms basic liquid assets...
FCA confirms new rules
FCA has confirmed various rule changes in its latest Handbook Notice: to the technical standards under EMIR, to give firms clarity and to align the UK in implementing various Basel Committee and IOSCO recommendations...
PRA updates MRT waiver
PRA has updated its list of modifications by consent to include an application to allow CRR firms to exclude from idenfication as MRTs employees who meet the pay-based criteria for the definition but are deemed not to...
Government publishes responses on overseas framework consultation
In December 2020, Treasury published a call for evidence asking for views on the UK’s framework for cross-border financial services. Treasury has now published the response to this call for evidence which covers:...
FCA outlines mortgage prisoners review
The FCA has published the terms of reference setting out the steps it will take in its mortgage prisoners review. Data review: the FCA will review and update its data to consider the demographic and loan characteristics...
FCA updates on financial promotions
Following onshoring changes made to the FPO post-Brexit, the definition of “Relevant Market” inadvertently no longer includes relevant UK markets. This means the exemptions under Articles 37, 41 and 67-69...
BoE and PRA publish Response to the Complaints Commissioner’s Annual Report 2020/21
The BoE and PRA have published their responses to the Complaints Commissioner’s recommendations. The responses are published in full on the Commissioner’s website and cover the following: the BoE, the PRA...
FIN. TeamFCA takes action against debt packager firms
The FCA has taken action following a review into the practices of debt packager firms. 5 firms have stopped providing regulated debt advice until further notice as a result of “significant concerns” over...
Treasury consults on SMCR for Financial Market Infrastructures
HM Treasury is consulting on proposals to create an SMCR for financial market infrastructures (FMIs). The proposed regime would mirror the existing SMCR and would give the BoE new rule-making, supervisory and...
PRA writes to firms on Solvency II Review
The PRA has written to the CEOs of PRA-regulated Solvency II firms to introduce the Solvency II Review Quantitative Impact Study and to set out the PRA’s thinking on two key areas being assessed under it – the...
FCA publishes FAQs on the fair treatment of vulnerable customers
In February 2021, the FCA published Finalised Guidance on the fair treatment of vulnerable customers. It held a webinar in May to help firms understand the role they play in treating vulnerable customers fairly. The FCA...
FCA launches fifth financial resilience survey
The FCA is asking firms to complete a short mandatory survey to help obtain a more accurate view of firms’ financial resilience as a result of Covid-19. The FCA will email the survey to firms in Tranche 1 on 2-4...
ESMA consults on MiFID II remuneration requirements
ESMA is consulting on draft guidelines that aim to clarify certain aspects of the new MiFID II remuneration requirements, replacing the existing ESMA guidelines on the same topic, issued in 2013. The consultation paper:...
FCA writes to authorised fund managers on ESG
The FCA has written to the chairs of authorised fund managers setting out its expectations on the design, delivery and disclosure of environmental, social and governance (ESG) and sustainable investment funds. The FCA...
FCA publishes updated policy statement on fees
The FCA has published its final 2021/22 regulated fees and levies including feedback on CP21/8. The FCA will invoice fee-payers from July 2021 onwards for their 2021/22 periodic fees and levies.
FCA updates on workstreams
The FCA has provided updates on the following 4 workstreams: Assessing Suitability Review (ASR 2) – ASR 2 was placed on hold in April 2020. The FCA has decided not to continue planned work on ASR 2 in 2021/22. This will...
FCA report on independent review recommendations
The FCA has published a report setting out the work it has done to July 2021 to implement the recommendations from: the Independent Investigation into the FCA’s Regulation of London Capital & Finance plc (the...
Complaints Commission Report: how financial services regulators consider complaints
The Complaints Commission has published its annual report for 2020/2021 which reviews how the financial services regulators consider complaints. Highlights include: the Commissioner dealt with 393 complaints in the year...
FCA publishes annual report and accounts
FCA has published its annual report and accounts for 2020/21, accompanied by the usual specific report. Interesting figures include: enforcement data: 134 final notices were issued of which only 15 were against...
FCA to survey preparedness for GI pricing changes and use of credit broking permissions
The latest edition of “regulation round up” notes that FCA is shortly to ask a sample of insurers, insurance intermediaries and PCWs to complete a short survey to say how ready they are for the new general...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
PRA considers revisions to change in control regime
Sam Woods, PRA Deputy Governor, has written to the Rt. Hon Mel Stride MP to outline his thoughts on possible enhancements to the conditions for assessing a proposed change in control (Conditions) under FSMA. Mr Woods...
CLLS responds on fin proms
The City of London Law Society has responded to FCA’s discussion paper on changes to the financial promotion rules for high risk investments and for firms approving financial promotions. It: is concerned the...
PRA updates on shareholder distributions by large UK banks
On 10 December 2020, the PRA published a statement on “Capital distributions by large UK banks” in which it set out guardrails for distributions to ordinary shareholders in relation to full-year 2020 results...
FCA publishes financial promotions case studies
The FCA has published two video case studies which show examples of good and bad practice when promoting financial services and which set out the FCA’s expectations for promotions to be clear, fair and not...
PRA policy statement on Basel implementation
Following its consultation earlier this year, the PRA has published a policy statement (PS) on its proposed new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK...
UK signs free trade deal with Norway, Iceland and Liechtenstein
The government has announced a new free trade agreement between the UK and Norway, Iceland and Liechtenstein. The deal will boost critical sectors like digital, and professional business services, slash tariffs and...
FCA publishes agreements with overseas regulators
The FCA has published a new webpage which sets out the multilateral and bilateral Memoranda of Understanding and other agreements it has signed with overseas regulators. The published list is not exhaustive and some...
PRA consults on review of Solvency II
The PRA has published a consultation on its proposed changes to Solvency II reporting requirements and expectations. The proposals would result in changes to the following policy material: The onshored version of the...
IRSG report on the UK regulatory regime for overseas firms
The International Regulatory Strategy Group (IRSG) has published a report analysing the UK’s access regimes for overseas firms, looking at the regulatory perimeter, the branching regime, the Overseas Person...
Regulators set out plans to improve diversity and inclusion in financial services
The BoE, PRA and FCA have published a discussion paper, setting out policy options to improve diversity and inclusion in financial services. The paper focuses on the importance of data and disclosure in order to enable...
Responses to Work and Pensions Committee report on protecting pension savers
On 28 March 2021, the Work and Pensions Committee published its Fifth Report of Session 2019–21, Protecting pension savers–five years on from the pension freedoms: Pension scams. The Government, the FCA and the Pensions...
PRA Policy Statement: Regulated fees and levies: rates for 2021/22
The PRA has published a policy statement which provides feedback to responses to the consultation paper ‘Regulated fees and levies: rates proposals 2021/22’. The policy statement also contains the PRA’s...
Fund managers fall short on assessing value of funds
The FCA requires authorised fund managers (AFMs) to carry out an Assessment of Value (AoV) at least annually. The AoV should assess whether fund fees are justified by the value provided to fund investors by using a set...
PRA policy statement on IRB approach to UK mortgage risk weights
Following its consultation in October last year, the PRA has published a policy statement on its proposed rules changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. The...
Treasury reports on future framework for regulation of financial services
The Treasury Committee has published its report on the future framework for regulation of financial services. The report considers the future of financial services following the end of the Brexit transition period and...
FATF review of FATF Standards on virtual assets and virtual asset service providers
The Financial Action Task Force (FATF) has completed a second 12-month review of the implementation of its revised Standards on virtual assets and virtual asset service providers (VASPs). This comes two years after the...
FCA consults on reforms to improve the effectiveness of UK primary markets
The FCA has launched a consultation on proposed reforms to improve the effectiveness of UK primary markets in combination with a discussion about how the FCA might continue to develop the listing regime to ensure the UK...
PRA consults on designating investment firms
The PRA is proposing minor changes to its policy on designating investment firms. This includes a proposal to increase the base capital resources requirement for PRA-designated investment firms, thereby aligning it with...
EBA publishes standards for supervision of investment firms
The EBA has published final draft regulatory technical standards (RTS) on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms. The draft RTS provide...
ESAs report on F&P, internal governance and remuneration
EBA and ESMA have reported on: assessment of suitability of members of the management body and key function holders under CRD V and MiFID 2. The guidelines focus on the revisions brought in by the IFR and their affect...
Appeal refused on FCA action against unauthorised firm
The application to appeal has been refused in the case of FCA v 24 Hr Trading Academy. In this case, the High Court had held that 24 Hr Trading Academy had beached the regulated activities and financial promotion...
FCA writes to insurance intermediaries on client money
FCA has written a Dear CEO letter to insurance intermediaries, Following its work on financial resilience and its concerns that some firms risked not having adequate financial resources, it carried out a review of how...
Mansion House speech heralds new era for UK financial services
Rishi Sunak’s Mansion House speech has outlined the reforms the UK is undertaking so the financial services industry can lead both domestically and internationally in the sector. Treasury also produced a roadmap...
UK and Singapore agree landmark Financial Partnership for financial services
An historic new partnership for financial services between the UK and Singapore, which will help to boost jobs and investment in the UK, has been agreed by the Chancellor. The Financial Partnership is a new agreement...
EU close to credit servicer Directive and proposes CCD changes
The Council of the EU has supported a proposal for a Directive to regulate credit servicers and purchasers, following concerns that the regulation (or otherwise) of those who buy and service loans, particularly non...
LSB stresses importance of good governance
LSB has stressed the importance of governance as underpinning everything a firm does, and has started a series of publications to help firms. Its latest guidance looks at how to achieve best practice. The guide...
FCA finds “host” fund manager weaknesses
FCA has carried out a review of authorised fund managers that provide hosting services to third party investment managers outside of their corporate group. It concluded that some firms were operating well but others did...
PRA and FPC consult on changes to UK leverage framework
FPC and PRA are consulting on changes the FPC proposes to make to the leverage framework, and how PRA will implement them. PRA’s proposals will depend on Treasury revoking certain parts of the CRR, which, if...
FCA publishes first policy statement on IFPR
Following its consultation in December 2020, the FCA has published the first of its policy statements (PS) on the introduction of the UK Investment Firms Prudential Regime (IFPR). In general, the FCA has implemented its...
EBA analysis of RegTech in the EU financial sector
The EBA has published an analysis of the current Regulatory Technology (RegTech) landscape in the EU. The report provides insights into the following: a mapping and understanding of the existing RegTech solutions...
FCA to host Business Plan webinar
FCA is to unveil its business plan on 15 July and is holding a webinar at which Nikhil Rathi will set out his view of FCA’s role and answer questions.
FCA updates rules
FCA’s latest Handbook notice confirms updates to: TC to improve information sharing on retail advisers’ failure to comply with appropriate FCA rules and to update on accredited qualifications. COMP to...
BoE takes action over Euroclear settlement outage
BoE has announced it is taking supervisory action over the operational settlement outage suffered by Euroclear UK and Ireland in September 2020, which caused significant market disruption. The outage was caused by a...
FCA publishes VOP refusal
FCA has published its final notice explaining its reasons for refusing a firm’s application to vary its permission. Gedik International Limited was authorised in February 2020 as an agency brokerage with a set of...
FCA appoints new Interim General Counsel and Legal Adviser
The FCA has announced the appointment of David Anthony Scott as Interim General Counsel, following the departure of General Counsel Sean Martin, and Raj Parker as a Senior Legal Adviser. Nikhil Rathi, Chief Executive of...
Treasury Committee calls for FCA culture shift
The Treasury Committee has published a unanimously agreed report on FCA’s regulation of London Capital and Finance, in which it expresses the view that FCA cannot justify expecting firms it regulates to comply...
EBA report: management and supervision of ESG risks for credit institutions and investment firms
The EBA has published its Report on Environmental, Social and Governance (ESG) risks management and supervision. The report provides institutions with common definitions of ESG risks and their transmission channels and...
BoE speech: A new dawn for payments
Speaking at City Week 2021, Victoria Cleland (Executive Director for Banking, Payments and Innovation at the BoE) talked about the evolution of payments systems in the UK, the BoE’s vision for the future and the...
Treasury publishes outcome of IFPR consultation
HM Treasury has published the outcome of its consultation on the UK’s approach to the implementation of the Investment Firms Prudential Regime (IFPR). The consultation outlined how the government proposed to...
Treasury responds on Fin Proms
Treasury has published its response following its consultation on a regulatory regime for the approval of financial promotions. It had been concerned about: lack of expertise in approver firms; lack of due diligence by...
FCA speaks on tough regulation and the future
Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...
FCA consults on regulated firm climate disclosures
FCA is consulting on enhancing climate-related disclosures by asset managers, life insurers and regulated pension providers. Following on from the introduction of disclosure rules for the most prominent listed companies...
PRA consults on financial holding companies
PRA has issued a further consultation on applying existing prudential consolidation requirements to financial holding companies and mixed financial holding companies approved or designated under FSMA. The proposals:...
Government responds on financial exclusion
The Government has published its response to the Lords Liaison Committee report on tackling financial exclusion. Key elements of the response consider: access to cash: the response notes that the FS Act 2021 will allow...
ECB consults on “fit and proper”
ECB has issued a consultation draft of its requirements when assessing members of management boards and those holding key functions within regulated institutions as “fit and proper”. It asks for comment by ...
PRA speech: Solvency II and policyholder protection
Anna Sweeney – Executive Director, Insurance at the PRA – delivered a speech on the Solvency II review at the JP Morgan European Insurance Conference. The speech covered the work the PRA will do with HM Treasury to...
FSB overview of responses to public consultation on outsourcing and third-party relationships
The Financial Stability Board (FSB) has published an overview of the responses it received to its November 2020 discussion paper on regulatory and supervisory issues relating to outsourcing and third-party relationships...
Sam Woods reappointed
Sam Woods has been reappointed as Deputy Governor of the BoE with responsibility for Prudential Regulation and Chief Executive of the PRA. His second 5 year term will last until June 2026.
PRA updates on TPR timetable
PRA has updated on authorisations under the TPR. It has reminded that it has up to the end of 2023 to process applications from firms falling under it. Currently, it is seeing a high volume of applications of varying...
Up next from FCA
FCA’s latest Policy Development Update highlights: a policy statement in July on regulation of funeral plans, and consultation on resolution and FSCS protection rules for the funeral plans sector consultations on...
FCA takes 13 firms into new sandbox cohort
FCA has accepted 13 firms into cohort 7 of the regulatory sandbox. It received 58 applications, mainly from firms in the retail investment and retail lending sectors. FCA was interested in proposals that saw more...
Basel Committee consults on prudential treatment of crypto exposures
The Basel Committee is consulting on preliminary proposals on how to treat banks’ cryptoasset exposures. It notes that exposure is currently limited, but there is the prospect that heightened exposures could...
Outsourcing and operational resilience: Meeting FCA and PRA requirements by 31 March 2022 (and beyond)
In March this year, the FCA and PRA issued their finalised policies on operational resilience, outsourcing and third party risk management (our earlier post provides an introduction to these). With the one year...
EBA finalises PSD2 incident reporting guidelines
EBA has finalised and published its revised guidelines for major incident reporting under PSD2. PSD2 requires PSPs to report major operational or security incidents to their supervisors where those incidents are likely...
FS Act 2021 starts to come into force
The first commencement order for the FS Act 2021 bring into force: on 9 June, sections 3-5 and Schedule 3 on prudential regulation of credit institutions by PRA on 26 June, section 7 and part of Schedule 4 on amendments...
FCA consults on CONC and other miscellaneous changes
FCA’s latest quarterly consultation on minor rule changes focuses on: changes to CONC to enable firms that provide credit cards to offer instalment plans without applying for a rule modification make minor changes...