The International Regulatory Strategy Group has published a paper on the financial services priorities for the UK’s G7 Presidency. The UK took over the Presidency in January and the IRSG now says it should focus...
Category - Supervision
Emma RadmoreMarket Watch looks at use of orderbook data
The latest edition of Market Watch explains how FCA uses orderbook data to help conduct surveillance to identify suspected market manipulation. It uses its own data combined the STORs and other notifications it...
FCA and PRA make new accountability rules for long term absence
FCA and PRA have confirmed their policy on long term absences. FCA has made new rules on individual accountability, requiring firms to notify it when a Senior Manager or Approved Person at an AR takes more than 12...
PRA publishes policy statements on OCIR policy
In October 2020, BoE and PRA consulted on a package of proposals relating to operational continuity in resolution (OCIR) policy and the May 2020 resolution measures, to ease operational burdens on firms in response to...
Emma RadmoreOmbudsman News looks at annual complaints data
Following the publication of the FOS complaints data for 2020/21, the latest edition of Ombudsman News looks at key trends FOS has seen in a year impacted by Covid-19. Highlights include: Banking – banks’...
FOS publishes Annual Complaints Data
FOS has published its annual complaints data for April 2020 – March 2021. Key highlights include: an overall increase in new complaints of 2% from the previous year – but a 58% increase when PPI complaints...
FCA intervenes on high risk CFDs
FCA has stopped ICC Intercertus, a Cypriot firm operating under the TPR, from conducting any regulated or marketing activities in the UK. The firm’s wider group traded as “EverFX” and used the...
FCA confirms role in RLS
FCA has confirmed its approach to regulating firms in relation to the Government Recovery Loan Scheme that was launched by the British Business Bank on 6 April to replace the BBLs and CBILS which are now closed to new...
BoE speech: responsible openness in the insurance sector
BoE’s Anna Sweeney (Executive Director, Insurance) delivered a speech at the Association of British Insurers Prudential Regulation Webinar on how the UK will regulate insurance services post-Brexit. The speech...
UK-US Financial Regulatory Working Group issues joint statement
The Financial Regulatory Working Group has published a joint statement on its meeting on 20 May. The meeting focussed on seven key themes: international and bilateral cooperation; sustainable finance; updates on...
FCA orders firm to terminate AR agreements
FCA has published a first supervisory notice to Marshall Sterling Investment Management Limited, requiring it to terminate its relationships with 2 appointed representative firms within 14 days of the notice, and with a...
PRA publishes results of 2020 feedback survey
PRA has published the results of its 2020 firm feedback survey. The survey asked questions aiming to understand whether firms consider that PRA understands the firm and its business and the it has appropriate access to...
FCA consults on use of new powers to support orderly wind down of critical benchmarks
The FCA has published a consultation paper on its proposed policy approach to two new powers introduced through amendments to the Benchmarks Regulation (BMR) under the Financial Services Act 2021 (FS Act). The powers...
FIN. TeamFCA updates on change of legal status applications
FCA has updated its website to state that from 1 June 2021 firms will no longer be able to apply to change their legal status. Instead, they will need to submit a new authorisation application for the new entity and...
FCA Call for Input: Pensions Consumer Journey
The FCA has launched a call for input, to better understand consumer behaviour at key points in the pension saving journey. The FCA acknowledged that the pensions and retirement income markets have evolved significantly...
FCA writes to CEOs of EMIs on client money
FCA has written a Dear CEO letter asking e-money firms to write to their customers to explain how their money is protected. It is worried that these firms’ promotions to customers give the impression that their...
FCA delivers speech on the rise in online scams
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, spoke at the FCA Investigations & Enforcement Summit on the rise in scams and the threat to a legitimate financial services industry...
FCA clarifies application of EBA outsourcing guidelines
FCA has updated its webpage on outsourcing and operational resilience to clarify the application of EBA’s guidelines on outsourcing. It has confirmed that it expects relevant firms to continue to comply with them...
FCA launches consultation on CMC phoenixing
The FCA has announced proposals to stop the practice of ‘claims management phoenixing’ by banning claims management companies (CMCs) from managing FSCS claims where they have a relevant connection to the claim. Claims...
FCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...
FSCS confirms 2021/22 levy forecast
FSCS has confirmed its levy forecast for 2021/22 at £833m. This is slightly lower than the indicative levy announced in January, partly because extensions of government support are likely to mean some firms will...
FCA to issue credit broking permissions survey
FCA is asking regulated firms that hold the credit broking permission to complete a short survey to update the information FCA holds on how they are using this permission. A pilot survey will be sent to 300 firms on 20...
FCA finalises guidance to insolvency practitioners
FCA has finalised its non-Handbook guidance on how IPs should approach insolvencies of regulated firms. The guidance focuses on how an IP appointed to a regulated firm should ensure the firm meets its ongoing financial...
FCA updates supervisory statement on MiFID markets regime
FCA has updated its statement on the operation of the MiFID markets regime post-Brexit to include the latest published non-equity transparency results for the UK. These results cover the 2021 annual bonds threshold...
Up next from FCA
The latest Policy Development Update from FCA heralds: a consultation on a new ESG sourcebook for enhancing climate-related disclosure requirements, coming in June; and a consultation on exit fees in investment...
Commons Briefing Paper: Financial Services Act 2021
The House of Commons has published a briefing paper on the newly enacted Financial Services Act. The paper outlines the provisions of the Act and to whom it applies. It also explores some of the key tabled amendments...
FCA gives speech on its ‘outcomes focused transformation’
Charles Randell, Chair of FCA and PSR, has given a speech to the Building Societies Association outlining FCA’s continued shift towards ‘outcomes focused’ regulation. The speech traces the origins of...
Stephen WilsonFCA speaks on UK regulation and FCA transformation
Nikhil Rathi has spoken on FCA’s vision for regulation of the future. His audience was overseas banks, and he focussed on FCA’s priorities in regulating overseas firms at the same standards as domestic...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
BoE speech: operational resilience – outcomes in practice
Lyndon Nelson, Deputy CEO & Executive Director, Regulatory Operations and Supervisory Risk Specialists at the BoE, delivered a speech at the UK Finance Operational Resilience Webinar on recent policy on operational...
CMA publishes policy paper on digital regulatory landscape
The Digital Regulatory Cooperation Forum (DRCF) has submitted its response to the Department of Digital, Culture, Media and Sport on the future of the digital regulatory landscape and how to achieve coherence in...
PRA reports on collections in non-systemic banks
PRA has published a letter setting out the findings of its thematic review on collections. The letter follows PRA asking the internal audit function within non-systemic UK deposit takers to review their: collection...
FCA publishes Insights from Cyber Coordination Groups
FCA has shared a broad overview and insight into the discussions held at its quarterly Cyber Coordination Group (CCG) meetings in 2020. In 2020 FCA convened 157 firms in 7 CCGs, with each CCG representing a specific sub...
FCA publishes H2 2020 complaints data
FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...
FCA publishes DP on high risk investment promotions
Following feedback to its Call for Input on Consumer Investments, FCA has published a discussion paper on proposals to strengthen its financial promotion rules for high-risk investments. The paper focuses on three main...
FS Bill gets Royal Assent
The final stages of the FS Bill’s passage through Parliament have been completed, with the Lords agreeing on the Commons amendments to the duty of care provisions, and not insisting on following through with the...
FCA consults on changes to UK MiFID firm organisational requirements
FCA is consulting, as part of its wider capital markets reform work, on a set of changes to the conduct and organisational requirements on research and best execution. The aim is that the rules continue to achieve...
PRA issue statement on the disclosure of exposures subject to measures applied in response to Covid-19
The PRA has issued a statement providing guidance on the disclosure of exposures subject to measures applied in response to the COVID-19 crisis. It highlighted that UK banks and building societies that: are (or are...
Debate over FS Bill continues
The House of Commons has not agreed with some of the Lords amendments to the FS Bill. In particular: they reject the addition of the requirement on FCA to make rules on the duty of care to take effect by 6 April 2022...
FCA speaks to FLA on post-Covid regulation
Charles Randell, Chair of FCA and PSR has given a speech to the Finance & Leasing Association in which he outlined the ways in which the financial services sector has changed post-Covid and how FCA must adapt to...
HM Treasury publishes response to consultation on Insolvency changes for payment and electronic money institutions
The Insolvency changes for payment and electronic money institutions consultation was launched on the 3 December 2020. The Government received 15 written responses to the consultation, and these responses have been...
PRA consults on correcting “higher paid MRT” definition
PRA is consulting on correcting an error in the PRA rulebook which currently means the definition of “higher paid material risk taker” is not aligned with PRA’s approach in SS 2/17. The error happened...
FCA publishes Authorisations Quarterly KPIs
The FCA has published its Authorisations Quarterly Key Performance Indicators (KPIs), providing key metrics on the performance of the FCA’s Authorisations Division. KPIs are provided for: Authorisations; Cancellations;...
FCA delivers speech on black inclusion
Sheldon Mills – Executive Director, Consumers and Competition at the FCA – gave a speech at the Accelerating Black Inclusion research launch on why black inclusion matters to the FCA. Highlights include: There is a lack...
PRA updates on remuneration reports templates
PRA has updated firms on its approach to the Remuneration Benchmarking and High Earner’s Reporting Templates, part of the EBA Taxonomy. This information became reportable in XBRL format from the end of 2020, with...
FCA delays Business Plan
FCA will publish its 2021/22 Business Plan in July rather than the usual April. The publication will come alongside its accounts and will include detail on its plans for transforming the organisation.
Treasury Committee starts Greensill Capital inquiry
The Treasury Committee has launched an inquiry into lessons that can be learnt from the failure of Greensill Capital. The inquiry is supported by letters to various regulators, including a letter to FCA asking for...
Financial Services Bill passed by Lords
Following day three of its Report stage, the House of Lords has passed the Financial Services Bill with amendments. The final amendments to be agreed by the Lords include: an amendment that, in certain circumstances...
FCA issues second IFPR consultation
FCA has published its promised second consultation on the IFPR. The IFPR creates a new regime for solo-regulated MiFID investment firms. The consultation covers: aspects of own funds requirements not previously...
Nausicaa Delfas to join FOS
FOS has announced that Nausciaa Delfas will take up the post of Interim Chief Executive and Chief Ombudsman from mid-May. Meanwhile, Stephanie Cohen will take up the permanent role of FCA COO in June.
Treasury consults on regulation of mini-bond issuance
Treasury has published an open consultation on bringing the issuance of mini-bonds (or, as the consultation refers to them “non-transferable debt securities) within the scope of regulation, as part of the package...
PRA issues supervisory expectations for new banks
PRA has issued its final form Supervisory Statement on its expectations on “new and growing” non-systemic UK banks. The statement takes effect from its publication on 15 April, and follows PRA’s...
FCA speech: regulating the UK as a global financial centre
Speaking at the City & Financial Global virtual conference, Nausicaa Delfas, the FCA’s Executive Director of International, stressed that the UK’s departure from the EU is an opportunity the FCA intends...
FS Bill: Further amendments tabled for debate in Lords
Parliament has published a marshalled list of the latest amendments to the Financial Services Bill to be debated in the House of Lords. The proposed amendments include: a requirement for the FCA and PRA to give...
BCBS publishes operational resilience Principles
The Basel Committee on Bank Supervision (“BCBS“) has published a report setting out its “Principles for Operational Resilience”. In the report, BCBS notes that the Covid-19 pandemic has...
FS Bill continues in Lords
The Financial Services Bill is scheduled to continue its Report stage in the House of Lords next week, with some further amendments being tabled.
ESAs publish report on complaints-handling
The Joint Committee of three European Supervisory Authorities (EBA, EIOPA and ESMA) (ESAs) have published a report on the application of their guidelines on complaints-handling. The report assesses how the guidelines...
FCA extends financial crime reporting obligation
Following its consultation in August 2020, the FCA has announced it is increasing the number of firms that need to submit an annual REP-CRIM return from c.2,500 to c.7,000 firms. In summary, the following additional...
UK and US continue to co-ordinate on insurance and reinsurance supervision
On 25 March 2021, UK and US participants held the first Joint Committee meeting under the UK-US Bilateral Agreement on Prudential Measures regarding Insurance and Reinsurance (Agreement). Attendees discussed progress...
ESMA fines Moody’s for conflict of interest breaches
ESMA has fined five entities in the Moody’s Group, based in France, Germany, Italy, Spain and the UK, a collective total of €3,703,000 and issued public notices for breaches of the Credit Ratings Agencies Regulation...
FCA and PRA publish operational resilience materials
FCA and PRA have each published a number of documents addressed to firms across a range of sectors on the subject of operational resilience. FCA and PRA have each issued policy statements (PS21/3 and PS6/21) which...
FCA responds to Treasury Committee on LCF
Andrew Bailey has responded to the Treasury Committee on aspects of its supervision in respect of the LCF investigation. Key elements of the response looked at: the need for the report to separate accountability with...
CMA publishes annual plan for 2021/2022
Following consultation, the CMA has now published its annual plan for 2021-2022. The CMA has identified four key themes on which it intends to concentrate: protecting consumers and driving recovery during and after the...
FCA encourages individuals to report wrongdoing
The FCA has launched its campaign ‘In confidence, with confidence’ to encourage individuals working in financial services to report potential wrongdoing to the FCA. The campaign highlights circumstances...
EFMLG and FMLC Joint Letter: LIBOR transition
Together with the European Financial Markets Lawyers Group, on 19 March 2021 FMLC sent a letter to regulatory authorities in key jurisdictions urging cooperation in relation to the discontinuance of LIBOR. Given the...
FCA gives speech on diversity and inclusion
Georgina Philippou, Senior Adviser to FCA on the Public Sector Equality Duty gave a speech at the launch of a report by the Investment Associate and Eversheds entitled “Building Ethnic Diversity and Inclusion in...
EBA consults on AML guideline change
EBA is consulting on changes to its guidance on risk-based supervision for AML/CFT purposes. It plans to include practical step-by-step approaches to help regulators understand some of the aspects of supervision they...
FCA speaks on importance of diversity and inclusion
Nihil Rathi, speaking at Treasury’s Women in Finance Charter Annual review, stressed that diversity and inclusion are regulatory issues. He noted the breadth of characteristics that “diversity”...
PRA confirms holding company fees
PRA has confirmed its position on holding company regulatory fees, and will impose a fee of £2,500 for an application for approval or exemption as a holding company under s192Q FSMA with effect from 19 March.
Regulation of the insurance sector set to change
In a speech given at the Association of British Insurers, Sam Woods, CEO of the PRA, said that the regulation of the UK insurance sector is set to change. Mr Woods stated that rules for insurers would be set out in the...
Up next from FCA
FCA’s latest Policy Development update heralds the annual consultation on fees in April, and the proposed consultation on exit fees in investment platforms and comparable firms at some stage this year.
FS Bill finishes Lords Committee stage
The Financial Services Bill has finished its discussions at Committee Stage in the Lords. The next stage, the Report stage, has not yet been announced.
FOS head to step down
Caroline Wayman is to step down as Chief Ombudsman and Chief Executive at FOS. FOS will now start the search for her successor.
Treasury seeks clarity on FCA’s regulation of LCF
BoE Governor, Andrew Bailey, gave evidence to the Treasury Committee last month on the FCA’s regulation of London Capital and Finance (LCF). The Committee Chair, Rt Hon. Mel Stride MP, has now written to Mr Bailey...
FCA consults on minor handbook changes
FCA’s latest quarterly consultation paper proposes: changes to COMP to clarify the application of FSCS; and changes to TC to extend the scope of notification requirements, update the appropriate qualifications...
CMA consults on future oversight of open banking
The CMA has published a consultation paper seeking views on what arrangements it would be appropriate to put in place to ensure the effective oversight and governance of open banking following the implementation of the...
FCA announcements on the end of LIBOR
FCA has confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative: immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and...
FS Bill at Committee Stage in Lords – including new FTP offence
The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are: an requirement for a member of the FCA governing body to have...
FCA updates TPR pages
FCA has updated its website to help firms in the TPR understand what is coming next. Among other things, it has started to email firms about their landing slots. It cautions that firms should not apply before their...
Budget 2021: Chancellor outlines BoE remit
Rishi Sunak has written to BoE Governor, Andrew Bailey, outlining the remit and recommendations for the Financial Policy Committee (FPC) for 2021. The FPC should: support the government in maintaining the resilience and...
EU and Japan exchange letters on co-operation
The European Insurance and Occupational Pensions Authority (EIOPA) and Japan’s Financial Services Agency (FSA) have agreed to co-operate on insurance regulation and supervision. The exchange of letters aims to...
Treasury and FCA discuss perimeter report
Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...
FSB writes to G20 on 2021 work programme
FSB has published its work programme for 2021, which focuses on: addressing vulnerabilities resulting from the pandemic; increasing the resilience of non-bank financial intermediation; improving efficiency and access in...
FCA appoints new executives
FCA has appointed four new members of its executive team to help drive its transformation: Stephanie Cohen as the COO Jessica Rusu as Chief Data, Information and Intelligence Officer Sarah Pritchard as Executive...
PRA corrects MRT definition
PRA has noted a mistake in the Rulebook definition of “higher paid material risk taker” in Rule 1.3 of the Remuneration Part. The definition currently states that a person will be an HPMRT where: (a) their...
PRA clarifies credit risk approach
PRA has clarified its approach to published EBA Guidelines and EU RTS in relation to credit risk following the end of the Brexit transition period. PRA had thought that the RTS on economic downturn would have been made...
BoE writes to banks on resolvability framework
BoE has written to banks on resolvability assessment framework preparations. The framework set out what banks need to do for the BoE to consider them “resolvable”. Submissions are due in October, and BoE is...
BoE updates on data collection
The Bank of England has published its paper and the way forward for data collection. As more data than ever is created and captured, and expectations on regulators become greater, current systems of collection have been...
FCA finalises vulnerability guidance
FCA has finalised its guidance on its expectations of firms in respect of vulnerable customers. The guidance stresses that FCA expects firms to ensure consumers have the appropriate degree of protection, and that key to...
PRA reports on positive iNED meetings
PRA has written a letter to iNEDs, who participated in its pilot programme of virtual meetings. The meetings discussed current challenges, and PRA was pleased that, in principle: iNEDs thought firms had reacted well to...
HM Treasury launches consultation on supporting the wind-down of critical benchmarks
HM Treasury has launched a consultation on the case for additional legal protections for parties affected by the wind-down of a critical benchmark. On 21 October 2020, the government introduced the Financial Services...
UK Finance publishes guide for banks and lenders on discontinuation of LIBOR
UK Finance has published a guide for banks and lenders on the discontinuation of LIBOR. This is intended as a toolkit for members to support their engagement for the move away from LIBOR and to sign post to the relevant...
PRA consults on Basel implementation
PRA is proposing a new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK. The consultation forms part of a wider exercise to transfer the text of existing rules...
Consultation on successor rate in legacy bonds referencing GBP LIBOR
The Working Group on Sterling Risk Free Rates has published a consultation paper seeking feedback on whether it would be helpful for the Working Group to make a recommendation on a successor rate to GBP LIBOR for bonds...
FCA publishes results of updated Financial Lives research
FCA’s latest survey looking at consumers’ financial situations, products they choose and their experiences of engaging with firms was updated in October to look at how consumers are coping with the pandemic...
PRA speaks on insurer capital
Anna Sweeney has spoken on the Solvency II review and how much capital is enough. She stressed that PRA wants to get its reforms right, and to see them within the context of the entire relevant package of measures. ...
BoE updates on market infrastructure and payment system supervision
BoE has clarified its cooperation with FCA on FMIs and the PSR on payment systems and reiterated the importance of the MOUs it has with them, especially in the light of Brexit.
Up next from FCA
FCA’s latest Policy Development Update gives very little indication of any imminent papers, promising only the consultation on exit fees in investment platforms and comparable firms, feedback on the SEAR and a...
FCA reports on technology risks and mitigation
FCA has published the results of a multi-firm review that looks at how firms implement technology change and how to deal with problems that result. The review looks particularly at the consequences of the pandemic...
Regulators update on Covid reporting
FCA has updated its guidance on submitting regulatory returns during the pandemic. Firms can now have a 2 month extension to the deadline for submitting their annual report and accounts for submissions due up to 31 July...