FCA has published its new “approach document” setting out how it assesses international firms needing authorisation. The document follows FCA’s September consultation and is aimed at overseas firms...
Category - Supervision
Emma RadmoreEuropean Council adopts new rules addressing LIBOR cessation
The European Council today announced amendments to the Benchmark Regulation addressing the termination of financial benchmarks, specifically the anticipated phasing-out of LIBOR by the end of 2021. The aim of the new...
Emma RadmoreFCA to contact firms in repeat Covid impact survey
FCA is shortly to send its Covid-19 impact survey to firms it surveyed in Tranche 2 of its original survey last year. Relevant firms will receive an email on 8, 9, 10 or 15 February, and will receive a warm up email a...
Commission asks ESAs for digital finance advice
The European Commission has asked the ESAs for advice on how it is to adapt the prudential and conduct regulatory and supervisory frameworks to take account of digital finance initiatives. The advice should cover:...
Treasury publishes ToR for ring-fencing and proprietary trading review
Treasury has announced the members of the panel for the review into ring-fencing and proprietary trading. It has also published the panel terms of reference. The panel has around a year to report on the impact of ring...
FCA tells firms not to close branches during lockdown
FCA is concerned that some banks and building societies are going ahead with their plans to close branches despite the new lockdown, or are announcing new branch closures. It reminds them of its guidance published in...
IOSCO publishes retail complaint handling guidance
IOSCO has published guidance on sound practices in complaint handling procedures for retail customers. The guidance includes a comparative analysis of processes and IOSCO hopes it will help jurisdictions identify and...
PRA publishes capital buffers modification
PRA has published a direction for modification by consent of 5.1 – 5.3 and 5.5 of the Capital Buffers Part of its rulebook. The changes are relevant to firms applying for a VREQ in respect of a Pillar 2A...
PRA updates SMCR forms
PRA has updated its SMCR forms, to reflect: FCA’s relatively recent move and new logo; minor corrections; and a reinstatement of question 3.05 on form L, in respect of notifications of disciplinary actions. The...
BoE confirms 2021 stress test
The BoE has confirmed the content of the 2021 stress test. It will assess the major UK banks and building societies against a UK and global scenario based on a severe path for the macroeconomic outlook. The results...
FCA writes to Debt Purchasers, Collectors and Administrators
The FCA has written to Debt Purchasers, Debt Collectors and Debt Administrators outlining: its view of the key risks debt purchase, debt collection and debt administration firms pose to their customers or the markets in...
FIN. TeamFCA reports on protecting consumers from harm
FCA has published a report looking at how it looks to protect consumers from investment harm. It includes details of applications that have been stopped, and notes that FCA opened nearly 350 supervisory cases involving...
FCA reminds firms to check permissions regularly
FCA has reminded firms they should regularly check that they have all the right regulatory permissions for their businesses. Firms need not only to seek a variation of permission to add new activities, but should also...
FCA publishes whistleblowing VREQ
FCA has published the outcome of an application by Tokio Marine Kiln Insurance Limited and Tokio Marine Kiln Syndicates Limited to put in place a Voluntary Requirement in respect of whistleblowing policies and...
FCA updates on EU MoUs
FCA has updated its website to reflect the Memoranda of Understanding it has signed with various European authorities on co-operation and exchange of information. It has MoUs with ESMA, EIOPA and EBA as well as...
FS Bill finishes Commons stages
The Financial Services Bill has now completed its journey through the House of Commons and now moves to the House of Lords. Among the key changes now being debated are extensions to penalties for financial crime-related...
FCA consults on mortgage and consumer credit Covid guidance update
FCA is consulting, until 10:00am on 18 January, on updating its guidance for mortgage and consumer credit borrowers in financial difficulties as a result of Covid. Key proposals are: an extension on the ban on...
FCA and Bank of England issue press release on completing sterling LIBOR transition by end-2021
FCA and the Bank of England have issued a press release titled “The final countdown: Completing sterling LIBOR transition by end-2021”. The document stresses that with the LIBOR administrator, ICE Benchmark...
PRA consults on supervision of international banks
The PRA is consulting on proposals regarding its approach to supervising the UK activities of PRA-authorised banks and designated investment firms that are headquartered outside of the UK. This includes those firms...
FCA Covid financial crime guidance to expire
FCA has updated its pages giving guidance to firms on how to act during the pandemic. As part of this, it has noted that its statement on how firms should apply financial crime systems and controls will no longer apply...
FCA to repeat Covid resilience survey
FCA is to send out its Covid resilience survey for the third time. Firms that receive it (which will be between 13-19 January) must complete it.
FCA publishes Covid resilience survey results
FCA has published the results of the survey it sent to 23,000 forms on the real-time effect the pandemic is having on their resilience. Among its conclusions are: failures of firms due to the economic downturn are...
Regulators confirm Gibraltar passporting
PRA and FCA have confirmed that UK and Gibraltar firms will be able to continue to apply for and use a passport to do business in the other’s jurisdiction until, probably, the end of 2021.
CMA updates on financial services investigation
CMA has updated its website in respect of its investigation into anti-competitive practices in the financial services sector. The investigation, which started in late 2018, will now continue into 2021, with the further...
PRA finalises BRRD II rules
PRA has published its policy statement and final guidance on BRRD II. it has also published its final policy in relation to the amended Contractual Recognition of Bail in and amended Stay in Resolution parts of its...
ESMA publishes cloud outsourcing guidelines
ESMA has published its final report on outsourcing to cloud service providers. The guidelines cover: risk assessment and due diligence on providers; governance, organisational and control frameworks for monitoring CSP...
Final reports on FCA supervision of LCF and Connaught make damning reading
The Government has published its final report on the outcome of the Independent Investigation into FCA’s regulation and supervision of London Capital & Finance plc. Dame Elizabeth Gloster delivered her report...
Treasury updates special resolution code
Treasury has updated its code of practice that sets out the tools and powers available under the Banking Act 2009 in respect of the special resolution regime.
FCA makes Remuneration Code changes
FCA has published its final rules on updating the dual-regulated firms’ Remuneration Code to reflect CRD V. It has finalised its guidance on proportionality for the dual-regulated firms code, and published a set...
PRA writes Dear CEO letters on supervisory priorities
PRA has written to the CEOs of insurers, deposit takers and international banks on its 2021 supervisory priorities: to insurers, it says it will be engaging with stakeholders as it looks to tailor the regulatory regime...
FCA consults on prudential regulation of MiFID firms
FCA is consulting on the first phase of its proposed rules for the UK Investment Firm Prudential Regime, aimed at simplifying the prudential requirements for solo-regulated firms that fall within MiFID and are subject...
FCA makes new executive appointments
Following the creation of the new post of Executive Director, Consumers and Competition, the FCA has announced that Sheldon Mills has been appointed to the role. Siobhán Sheridan has been appointed as Chief People...
PRA issues statement on capital distributions
In July, the PRA announced its intention to undertake an assessment of large UK banks’ distribution plans for 2020. The PRA has now completed that assessment and, noting that economic uncertainty as a result of...
FCA confirms mini-bond marketing ban
FCA has confirmed that it will permanently ban marketing of speculative illiquid securities, including mini-bonds, to retail investors, from 1 January 2021. The permanent rules will also include a ban on listed bonds...
PRA makes CRD V changes
PRA has published a policy statement on further implementation of CRD V . It has also published its near-final rules which will not be changed, but PRA cannot make the rules until 28 December. The rules will make...
EIOPA: Peer Review on the collaboration of the insurance NSAs
EIOPA has published the findings of a peer review on the supervisory practices related to the decision concerning the collaboration amongst supervisory authorities in relation to insurance cross-border activities, data...
FCA consults on guidance for IPs
FCA has published a guidance consultation to help insolvency practitioners in their approach to insolvencies of regulated firms – particularly solo-regulated firms. It is aimed to help minimise the impact of...
PRA publishes feedback on recovery planning consultation
The PRA has published a Policy Statement providing feedback to responses to the PRA’s consultation on simplified recovery planning, as well as the PRA’s final policy decision. The respondents were supportive...
BoE sets out stress test plans for insurance industry
Speaking at the Insurance Risk and Capital EMEA 2020 virtual conference, Charlotte Gerken, Executive Director – Insurance Supervision, addressed the industry’s reaction to the Covid-19 pandemic, the Solvency II...
PRA notes FCA “long-term absence” consultation
PRA has drawn the attention of firms to a joint chapter in FCA’s latest quarterly consultation on clarifying regulatory expectations for temporary long-term absences. The regulators plan to clarify what they...
FCA publishes RDR and FAMR evaluation
FCA has published an evaluation of the impact of the RDR and FAMR. On the whole, it found a positive impact. It notes that the FAMR has: led to a small increase in the number of adults who receive financial advice, and...
FCA responds to Treasury Committee queries on work streams
The FCA has published a copy of a letter it sent to the Treasury Committee in response to additional queries raised by the Committee in relation to various FCA work streams. The letter addresses Treasury’s...
FCA launches UK Benchmarks Register
In preparation for the end of the Brexit transition period, FCA has announced the launch of the new UK Benchmarks Register. The Register, which can be accessed from 11pm on 31 December 2020, will replace the ESMA...
FCA writes portfolio letters to SIPP operators
FCA’s latest portfolio supervision letter is to SIPP operators. In the letter, FCA notes that, when SIPPs were originally launched, they were designed for higher net worth individuals looking to manage their own...
FCA pleased with RTO price cap
FCA has published an evaluation, which it says shows its rent-to-own price cap, which took effect in April 2019 has been effective in reducing the prices RTO firms charge. It says the prices of the two largest firms in...
Court of Appeal overturns Rothesay Part VII decision
The Court of Appeal has, for the first time, considered the approach courts should adopt to dealing with applications to sanction transfers of long term insurance business. In August 2019, a court had refused Prudential...
FCA publish letter to Treasury Committee on Complaints Scheme Consultation
The FCA has published a copy of a letter it sent to the Treasury Committee addressing additional questions that were not raised at the evidence session as part of the complaints scheme consultation. The questions cover:...
FCA response to IBA’s proposed consultation on intention to cease US$ LIBOR
FCA has responded to the ICE Benchmark Administration (IBA) announcement on 30 November 2020 that it will consult in early December on its intention to cease US$ LIBOR. IBA intends that, subject to confirmation...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
FCA announces benefits of RegData
RegData is set to replace Gabriel as the FCA’s data collection platform and will offer an enhanced user experience. FCA says the benefits of RegData will include: Increased speed and faster navigation; Improved...
EU statement on EU-Japan Joint Financial Regulatory Forum
The European Commission has published a statement on the second meeting of the EU-Japan Joint Financial Regulatory Forum which took place on 20 November. Topics of discussion at the meeting included the impact of Covid...
Treasury Select Committee letter to FOS
Rt Hon. Mel Stride MP has written to Caroline Wayman at FOS to ask her to produce evidence and answers to a number of questions. The questions focus on case handling and costs, complaints against FOS and FOS funding and...
FCA outlines its supervision Strategy for Lloyd’s & London Market Insurers
The FCA has published a ‘Dear CEO‘ letter addressed to Lloyd’s and London Market Insurers, providing an overview of the areas of focus of its supervision strategy. In particular, the letter sets out...
Directory person information starts to go live
Directory persons data for dual-regulated firms is now live on the new Directory. FCA has reminded solo-regulated firms that they must have submitted all data by the end of March 2021, and has also noted the dates...
Productive finance working group to be established
Treasury, the FCA and the BoE will be convening an industry working group to facilitate investment in productive finance (which is investment that expand productive capacity, furthers sustainable growth and makes an...
Treasury Committee starts post-Brexit FS inquiry
The Treasury Committee has confirmed the start of its inquiry into how financial services regulations should be set and scrutinised by Parliament post-Brexit, how regulators are funded and the extent to which regulation...
FCA consults on fees
FCA is consulting on proposed policy changes to the way it will raise FCA fees from 2021/22. The consultation applies to: any businesses considering applying for FCA authorisation or registration, and any existing fee...
FCA Regulatory Round-up
The FCA has published its latest regulatory round up. The publications summarises the latest FCA publications, most of which we have already covered in FIN and also reminds firms that they should not use the FCA logo on...
FCA consults on use of FSB Benchmark powers
FCA is consulting on how it proposes to use its new powers under the FS Bill to ensure an orderly wind-down of LIBOR, following the announcement by ICE Benchmark Administrations that it plans to cease its euro...
FCA reminds firms of importance of data protection
FCA has reminded firms of the importance of safeguarding customer data. It stresses that firms must remember their obligations in these changed operational times, and when leaving the market or merging with other firms...
FSB publishes 2020 Resolution Report
The Financial Stability Board (FSB) has published its 2020 Resolution Report which highlights the need for resolution preparedness. It also looks at lessons learnt from the Covid-19 pandemic, which stressed the...
FCA updates on regulatory returns
The FCA has confirmed that any regulatory returns due after 1 October 2020 must be submitted by their usual deadlines. Failing which, a late fee will be charged. This confirmation comes on the back of the Covid-19...
FCA writes supervision letter to PCWs
FCA has written a portfolio supervision letter to CEOs of price comparison websites. The letter notes the key priority that customers buying products through PCWs should buy products consistent with their demands and...
Nikhil Rathi Speech
Nikhil Rathi, CEO of the FCA gave a speech yesterday at the Address to the City Regulators, Mansion House. The speech kicked off by focusing on the current environment. He confirmed that more than 4.4. million payment...
PRA Statement on Covid Guidance
The PRA has reiterated its position on Covid and suggested that firms continue to monitor GOV.UK/coronavirus for guidance on: who should work from home, ensuring safe workplaces; use of face coverings (inc for branch...
FCA updates statement on workplace arrangements
The FCA has updated its statement on workplace arrangements and work-related travel given the recent changes in coronavirus restrictions. The FCA stresses that firms should: continue to follow relevant guidance to...
FSB consults on outsourcing
The Financial Stability Board (FSB) is consulting on “Regulatory and Supervisory Issues Relating to Outsourcing and Third-Party Relationships” following a survey conducted among the FSB members. Whilst...
EBA reminds firms to finalise Brexit plans
EBA has reminded firms that, from the end of the transition period, UK firms can no longer provide services to EU customers on a passporting basis. It notes that: UK financial institutions offering services to EU...
FCA speech: the credit market and the pandemic
Jonathan Davidson, Executive Director of Supervision – Retail and Authorisations at the FCA, has delivered a speech on the FCA’s priorities for the credit market. Stressing that consumer credit remains one of his...
Delay to ESEF standard reporting
The FCA has published information about changes to the way issuers file their annual financial reports to the FCA for publication on the National Storage Mechanism (supporting implementation of the European Single...
Covid-19 measures weekly summary
It’s been a while since we needed to do a digest of these. In the light of the new English lockdown and the expiry of various measures, the last week has seen: FCA consultation on updated guidance for consumer...
EBA urges consumers first in POG supervision
EBA has published a report encouraging firms to put consumers’ interests first when they are applying product oversight and governance arrangements. It has found this focus is lacking in many firms. This report...
EBA publishes SREP expectations on TF/ML risks
EBA has published its Opinion in which it sets out how prudential supervisors should consider ML/TF risks as part of the SREP process. The Opinion is another expression of EBA’s exhortation on supervisors to...
FCA outlines approach on share trading obligation
The FCA has set out its approach to the share trading obligation (STO) at the end of the Brexit transition period, if mutual equivalence is not agreed. The approach is intended to ensure open markets and competition...
FCA writes to CEOs of LLMI firms
FCA has written a portfolio strategy letter to Lloyd’s and London Market Intermediaries and Managing General agents. It sees the key risks these firms present in: financial resilience and orderly wind-down...
Basel Committee reports on Basel III implementation
The Basel Committee on Banking Supervision has published a report for the G20 Leaders on the implementation of Basel III regulatory reforms and the measures taken by Committee members in response to Covid-19. The report...
Lending Standards Board and UK Finance publish LIBOR transition guidance
On 28 October 2020, the Lending Standards Board and UK Finance published best practice guidance for firms on the transition of SMEs to non-LIBOR linked products. The related press release notes that with less than 18...
Second Bill reading due 9 November
The second reading of the Financial Services Bill in Parliament is scheduled for 9 November.
BoE consults on OCIR policy
The BoE is consulting on various proposals relating to operational continuity in resolution (OCIR) policy. The BoE proposes the following amendments: Changes to the OCIR section of the Approach to Assessing...
PRA consults on amendments to Resolution Assessment rules
The PRA proposes to amend the dates in the Resolution Assessment Part of the PRA Rulebook (Rules) as follows: Resolution Assessment 3.1(1), to reflect that the date by which firms must submit a report of their...
PRA consults on BRRD II
The PRA has launched a consultation on its Contractual Recognition of Bail-in (CROB) and Stay in Resolution (Stays) Rules. The proposals will support the UK’s transposition of the Bank Recovery and Resolution...
FCA confirms SMCR extension dates
FCA has confirmed it has extended the date by which all solo-regulated firms must have fully implemented the Certification Regime and Conduct Rules, to 31 March 2021. This follows Treasury making the statutory...
Financial Regulatory Working Group issues joint statement on UK-US
The Financial Regulatory Working Group’s meeting on 20 October was the first since the UK left the EU. The meeting focussed on five key themes: the economic response to, and potential financial stability impacts...
Financial Services Bill starts Parliamentary passage
The Financial Services Bill was introduced into Parliament on 21 October. The key aims of the Bill are: to implement the remaining Basel 3 standards; to create a more proportionate investment firms’ prudential...
FSB publishes global transition roadmap for LIBOR
On 16 October 2020 the Financial Stability Board (FSB) published a global transition roadmap for LIBOR. The FSB coordinates at the international level the work of national financial authorities and international...
FCA: new webpages on whistleblowing
The FCA has launched two new webpages on whistleblowing. The first webpage sets out the process for reporting concerns of wrongdoing to the FCA in confidence and provides guidance on: Making the decision to speak to the...
EIOPA launches training programme on insurance supervision
The targeted training programme will be delivered to 17 national competent authorities and aims to reinforce high-quality and effective supervision, the protection of policyholders and beneficiaries, and financial...
PRA consults on CRD V
PRA is consulting on further proposed changes to its rules, supervisory statements and statements of policy to implement elements of CRD V, and also to make changes to the UK framework to take account of parts of CRR II...
FCA says no more excuses for complaint handling delays
FCA says firms have now had enough time to embed the new ways of working the pandemic has demanded, and that any more failures to comply with FCA’s complaint handling requirements should only arise in exceptional...
FCA looks at banking data for understanding consumer wellbeing
FCA has published an occasional paper in which it looks better to understand consumer financial wellbeing through looking at responses to surveys, analysing banking data and considering objective factors most closely...
FSB issues final report on CIRR toolkit
The Financial Stability Board (FSB) has published its final report on a toolkit of effective practices for financial institutions’ cyber incident response and recovery (CIRR). The toolkit aims to assist financial...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020
A draft of the Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 was published on 15 October 2020.
Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020
A draft of the Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 was published on 15 October 2020.
Consultation response on UK’s Prudential Regime
HM Treasury published the outcome to its consultation on updating the UK’s Prudential Regime to implement CRDV before the end of the Transition Period. The paper outlines the responses received and sets out the...
BRRD II Consultation Response Published
The consultation response on the transposition of the Bank Recovery and Resolution Directive II was published on 15 October. The consultation response document summarises the responses received from the consultation...
FSB reports on global stablecoins
The Financial Stability Board (FSB) has published its finalised high-level recommendations for the regulation, supervision and oversight of “global stablecoin” (GSC) arrangements. The report says that GSC...
Brexit Dear CEO Letter
The PRA and the FCA have written to firms preparing for the end of the transition period. The letter urges firms to continue their preparatory work to ensure they, and their clients, are ready for a range of scenarios...
EIOPA sets out approach on POG
The European Insurance and Occupational Pensions Authority (EIOPA) has published a paper outlining its approach to the supervision of product oversight and governance (POG) requirements based on the Insurance...
FCA sets mortgage consumer outcome expectations
Jonathan Davidson, speaking at FCA’s webinar on mortgage forbearance, discussed what FCA is seeing the mortgage markets and reiterated its expectations on firms. His key takeaways were: FCA sees an increasing...