In July – September 2020, FCA commissioned 14 skilled persons reports – of which half were on the retail side and half the wholesale side. 3 related to retail banking and payments and 2 to retail lending...
Category - Supervision
Emma RadmoreAnother breach of the SME Banking Undertakings
The CMA has published details of another firm breaching the SME Banking Undertakings 2002. Between December 2019 and August 2020, AIB NI had failed to inform staff that SME customers were not required to open or...
Emma RadmorePRA consults on IRB approach to UK mortgage risk weights
PRA is consulting on rule changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. A by-product of the proposals would also narrow the differentials between IRB and...
FCA extends 10% depreciation guidance
FCA is giving a further 6 month extension to its measures on 10% depreciation notifications. Its first set of measures expire on 30 September, and it is extending them such that it will not take action for breach of...
FCA reopens TPR window and tells fund managers to update
FCA has reopened the TPR window for EEA firms and fund managers that have not previously done so to make notifications if they wish to use the regime. The window will close on 30 December. Fund managers are also able...
FCA updates on new COVID-19 issues
FCA has updated firms following the most recent Government announcement on COVID-19 restrictions. It says firms should continue to follow Government advice to work from home, and has updated its statements on...
First firms to move to RegData
FCA has announced the first firms will be moved across from Gabriel to its new data collection platform, RegData, over the weekend of 17-18 October. There will be 52,000 firms moving, and they will all receive 3...
FCA consults on international firm regulation
FCA is consulting on its approach to authorisation and supervision of international firms operating in the UK. The approach will apply to EEA firms seeking authorisation as they exit the TPR, and firms from non-EEA...
FCA publishes insurance pricing report and consults on fundamental change
FCA has published its final report on its market study intro general insurance pricing practices and, alongside it, a consultation on changes to its Handbook, and rules on data publication. The key damning conclusions...
FCA speaks on culture in investment management sector
Marc Teasdale has spoken on FCA’s work with the asset management sector, and how it is intended more closely to align the sector with its essential purpose – that is, protecting and growing the capital and...
FCA launches call for input on consumer investment market
FCA has published a Call for Input to help it look at improving consumer outcomes in the investment market. FCA is concerned that consumers often get sold unsuitable products with high fees and is looking at: what it...
FCA finalises access to cash guidance
FCA has published its finalised guidance on what firms should do if considering closing branches or ATMs, or starting to charge for ATM use. The guidance makes it clear firms must keep FCA informed of any relevant...
FCA confirms new mortgages guidance
FCA has finalised its additional guidance to firms in the mortgage markets, setting out how they should provide tailored support to borrowers who have had payment deferrals but continue to struggle, and to those whose...
Increasing calls for extension of Complaints Scheme consultation
The Treasury Committee has received increasing numbers of representations that the 8 week consultation period that ended today (14 September) to submit comments on the revised regulatory complaints scheme, was too short...
UK and Japan strike free trade deal
The Government has announced a new free trade agreement between the UK and Japan, which it says will increase trade with Japan by an estimated £15.2 bn. For financial services, there will be improved market access and...
Up next from FCA
The latest Policy Development Update notes a reinvigoration of FCA in publishing consultation and discussion papers before the end of the calendar year. It plans: consultation on amendments to accommodate the Breathing...
FCA to update mandatory resilience survey
FCA is to repeat the survey it carried out with a sample of firms in June, to assess the changes in firms’ financial positions as a result of the pandemic. It will be contacting firms between 16-22 September with...
FCA confirms fund reporting extension deadlines
FCA has announced its plans to end the temporary reliefs it had given to fund managers to give them more time to produce their periodic reports. It plans: to keep the relief in place for funds with an annual or half...
FIN. TeamFCA reminds firms of market abuse investigation protocol
In its latest edition of Market Watch, FCA focuses on how market participants should act when they receive information requests from FCA when it is investigating possible market abuse. It stresses that: if firms handle...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation mainly covers: onshoring changes to the Handbook or technical changes FCA will need to make as a result of onshoring. It asks for comment on the bulk of the changes by 4...
PRA finalises minor rule changes
PRA has published its policy statement on proposals in one of its Occasional Consultations. The changes confirmed will cover: minor updates on liquidity reporting; LIBOR updates for non-Solvency II insurers; other minor...
FCA writes to insurance intermediaries on supervision
FCA has written a supervision strategy letter to the CEOs of personal and commercial lines intermediaries. The letter is intended for general insurance intermediaries with retail and/or commercial customers, loss...
FCA publishes latest Conduct Questions update
FCA has published its latest report on its “5 Conduct Questions” initiative. It notes the changes that wholesale banking firms have been making to their conduct and culture as a result of it since 2015, and...
PRA writes to firms on “operational readiness” for TPR
PRA has written to CEOs of all firms preparing to enter the TPR at the end of the transition period. The letter notes that all firms that have submitted a notification or application for authorisation will automatically...
Complaints Commissioner upholds complaint on FCA cloned firm process
The Complaints Commissioner has ordered FCA to pay £200 compensation to an aggrieved investor who invested in a clone firm which was not at the time listed on the FCA Register. A scammer had cloned the details of a...
FCA updates on complaints data return dates
FCA has notified firms it will allow them to apply a 2 month deadline to the complaints data summary due on 31 August, so that the data for complaints covering reporting periods ending between 1 January and 30 June 2020...
FSB publishes insurance resolution methodology
FSB has published its key essential criteria which will guide assessment of how a jurisdiction’s insurance resolution framework has complied with FSB’s “Key Attributes of Effective Resolution Regimes...
London and Capital report delayed
Dame Elizabeth Gloster has explained to FCA that she will need until late November to complete and report on her investigation into FCA’s regulation of London and Capital Finance. FCA is happy to work with her...
FCA to reopen TPR window
FCA has updated its website pages on the Temporary Permissions Regime. It plans to reopen the TPR notification window on 30 September to allow for further new notifications, and to allow fund managers to update...
PRA and FCA’s joint Climate Financial Risk Forum meets for the fourth time
The Bank of England has confirmed that the FCA and PRA hosted the fourth meeting of the Climate Financial Risk Forum (“CFRF“) in July 2020. The Forum discussed how to publicise and promote use of the CFRF...
FCA updates on SMCR and reporting
FCA has reminded solo-regulated firms of the new annual reporting requirement that will oblige them to tell FCA whether they have taken disciplinary action against individuals who are not senior managers for Conduct...
FCA stresses client money protection priorities
FCA has written a Dear CEO letter to firms that provide non-discretionary investment services. It notes that clients may have rebalanced their portfolios to mitigate volativity during the pandemic, which has resulted...
EBA seeks views on Regtech
EBA has published a RegTech industry survey to seek views on how RegTech solutions are being, and could be, used. It wants to understand current activity, raise awareness of it, and have information to inform future...
ECB publishes report on ICAAP
The ECB today published its report on banks’ ICAAP practices. The report summarises the results of the ECB’s analysis of ICAAP practices within samples provided by 37 banks. It further highlights gaps...
PRA Letter re Fixed Rate Lending Guidelines
The PRA has published a letter which Mel Beaman has sent to the CEOs of non-systemic building societies clarifying the fixed rate lending guidelines. The letter, which follows a request from the Building Societies...
EBA publishes CRR ‘quick fix’ Guidelines and draft ITS
For context, the Capital Requirements Regulation (“CRR“) ‘quick fix’ is part of a series of measures taken by European institutions to mitigate the impact of Covid-19 on institutions across EU Member States...
Up next from FCA
FCA’s latest Policy Development Update heralds: consultation on financial crime reporting during Q3; PS on debt advice levy rates in Q4; CP on exit fees in investment platforms and comparable firms during 2021; PS...
BoE released updated financial stability information
BoE has published: a summary of the latest meeting of the Financial Policy Committee, which looked at how the UK financial system has performed during the pandemic. It notes how the system has met the initial surge in...
Basel consults on operational risk and resilience
The Basel Committee is consulting on proposals for principles for operational resilience and updates to its principles for the sound management of operational risk. The updates will reflect the growth of technology...
Committee highlights Breathing Space regulations’ importance
The House of Lords Secondary Legislation Scrutiny Committee has published its report in which it discussed the Breathing Space regulations. It drew attention to the importance of the regulations, and recommended that...
FCA speaks on challenges of LIBOR transition
Edwin Schooling Matter, FCA’s director of markets and wholesale policy, has spoken at ISDA’s event on LIBOR transition. He stressed that the time to act is now, as the next 4-6 months are critical. ISDA is...
FCA consults on Remuneration Code
FCA is consulting on proposals to update its Dual-Regulated firms Remuneration Code and guidance as part of CRD V implementation. The consultation largely follows PRA’s and proposes: changes to SYSC 19D in respect...
ESAs consult on management body suitability guidelines
EBA and ESMA have published a joint consultation on updating their guidelines on assessing the suitability of members of the management body and key function holders in regulated firms. The revised guidelines stress...
Treasury amends PRIIPs requirements
Treasury has published a policy statement on how it proposes to amend the PRIIPs Regulation as it onshores it. It plans early changes to address the most pressing concerns and to ensure the regime provides more...
PRA consults on CRD V
PRA is consulting on changes to its rules, supervisory statements and statements of policy needed to implement parts of CRD V. This consultation is the first part of PRA’s preparation for implementation, and it...
EBA agrees tentative 2021 stress test
EBA has agreed on a tentative timeline and sample of the 2021 EU-wide stress test, which it expects to launch a the end of January 2021 and the results be published at the end of July 2021. The test will be carried out...
EBA consults on internal governance guidelines
EBA is consulting on proposed revisions to its guidelines on internal governance. The changes specifically reflect the CRD V and IFD requirements as they affect credit institutions. The focus of the changes is: on the...
FCA calls for views on consumer treatment at end of deferral period
FCA has published a call for input, seeking views on what should happen to mortgage and consumer credit customers reaching the end of a second payment deferral (these will be ending from September onwards). It also asks...
PRA issues statement on dividend payments and share buybacks beyond 2020
The PRA has issued a statement confirming that it will undertake its assessment of firms’ distribution plans beyond the end of 2020, in Q4 2020. By way of background, in its statement on 31 March, the PRA...
EBA updates on SREPs and Covid-19
EBA has summarised the difficulties Covid-19 has presented to supervision generally, and the SREP process in particular. It has now published guidelines to supervisors building on the requirements of the CRD and the...
FCA publishes debt advice portfolio strategy letter
FCA has written a portfolio letter to debt advice firms. The letter follows the usual format of setting out key risks and regulatory expectations, and explaining FCA’s supervisory strategy. It considers the key...
PRA consults on simplified recovery planning
PRA is consulting on a plan to reduce its expectations on some firms in relation to recovery planning. The BRRD gives regulators the discretion to do this for firms whose failure would not be expected to have a...
FCA writes to RemCo chairs
FCA has written to the Chairs of regulated firms’ Remuneration Committees setting out its findings and observations from the 2019/20 remuneration round. Its key point is that culture is a key area of focus, and...
PRA consults on approach to non-systemic banks
PRA is consulting on its approach to new and growing, non-systemic banks. It is making 2 new proposals, and taking the opportunity to clarify its position in other areas. The new proposals are: changes to the...
Regulators update on third-country cooperation
Treasury published a policy paper on how the UK and Singaporean regulators might work together in the future, while the City of London has released a report on cross-border trade in services with Australia.
FCA to streamline cancellation process
Treasury has published a policy paper outlining its intention to streamline the process FCA must apply to cancel a firm’s authorisation. The process will apply where firms are no longer carrying on regulated...
Treasury consults on fin proms approval “gateway”
Treasury is consulting on a fundamental change to the rights of authorised firms to approve financial promotions of unauthorised firms. Both it and FCA have become increasingly concerned that some firms are approving...
Complaints Commissioner publishes Annual Report
The Financial Regulators Complaints Commissioner (“FRCC“) has published its Annual Report (“the Report“) covering the period from 1 April 2019 – 31 March 2020. In the Report, the...
EBA backs Renewed Sustainable Finance Strategy
The European Banking Authority (“EBA“) has published a letter it sent to the European Commission (“the Commission“) on 15 July, in which it says the European Supervisory Authorities...
Treasury consults on CRDV, prudential regime and Brexit
Treasury is consulting on the UK’s approach to implementation of those parts of CRD V that fall to be implemented into national law by 28 December. The Government has long said that it will transpose all EU...
LSB launches review of the CRM Code for APP scams
The Lending Standards Board (“LSB“) has published a consultation document to launch a full review of the effectiveness of the Contingent Reimbursement Model Code (“CRM Code“) and its impact on...
BoE speech on LIBOR: Entering the Endgame
On 13 July Andrew Bailey, Governor of the Bank of England (“BoE“), made a speech on the continued importance of the transition away from LIBOR. The continued importance of the transition In Mr Bailey’s...
New FS register coming at end of July
FCA is to replace the existing Register with a new, enhanced, Financial Services Register at the end of July, prior to adding a directory of certified and assessed persons later in the year. It says it has made...
Basel Committee updates on Regulatory Framework Adoption
BIS has recently published a report from its Basel Committee. It provides an update to the October 2019 report on the adoption of Basel Standards across each BCBS member jurisdiction as of May 2020. The Committee note...
FCA will not apply EIOPA cloud outsourcing guidelines
FCA has notified EIOPA that the EIOPA Guidelines on outsourcing to cloud service providers for insurance and reinsurance undertakings are not applicable to regulated activities within the UK’s jurisdiction, as they will...
CMA orders insurance provider to fix PPI breaches
The Competition Markets Authority (“CMA“) has taken action against Cardif Pinnacle, and has written to Nationwide and Lloyds, after they failed to provide accurate annual Payment Protection Insurance...
PRA makes statement on LIBOR and resolution rules
PRA has made a statement outlining its view on the implications of LIBOR transition for contracts in scope of the Contractual Recognition of Bail-In (CROB) and Stay in Resolution (Stays) parts of its Rulebook. PRA...
EBA clarified COVID-19 prudential measures
EBA has published a report clarifying how certain parts of prudential regulation apply in the light of COVID-19. It says several issues have been drawn to its attention in relation to the effects of payment moratoria...
Up next from FCA
Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...
FCA makes fees for 2020/21
FCA has published its final fees and levies for 2020/21. Almost all respondents to its consultation welcomed the freezing of minimum fees and the 2 month extension to payment terms for medium and small firms, but most...
PRA comments on CRR “quick fix”
PRA has made a statement on some aspects of the EU’s “quick fix” to the CRR. The statement notes: PRA’s support (back in 2017) of IFRS 9 transitional arrangements, which the quick fix now...
FCA makes new rules
FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...
BoE postpones Financial Stability Review
BoE has announced its decision to postpone publication of the Q2 FSR to 6 August. Since its May meeting, though, it has taken several decisions by written procedure including the Q2 setting of the CCyB and its views on...
FCA ready with Gabriel replacement
FCA has announced that its new platform, which replaces Gabriel, is called RegData, and that it is preparing to move all firms across to it. It will move firms over in groups, depending on the nature of their reporting...
Treasury appoints new FCA CEO
Treasury has appointed Nikhil Rathi as the new permanent Chief Executive of the FCA. He joins from teh LSE, having previously been Director, Financial Services Group at the Treasury. He is expected to take up his role...
Covid-19: EP eases rules to encourage lending to companies and households
Members of the European Parliament (“MEPs“) have approved more flexibility in EU banks’ prudential rulebook to focus on lending to the Covid-19-stricken economy. Aiming to strike a balance between a robust...
EIOPA publishes findings of the Regular Supervisory Report
On 18 June, the European Insurance and Occupational Pensions Authority (“EIOPA“) published the findings of its peer review of the Regular Supervisory Report (“RSR“). The review examined how and...
BoE and PRA publish 2020 Annual Reports
On 18 June, the Bank of England (“BoE”) published its Annual Report and Accounts and its Asset Purchase Facility Fund Limited Annual Report for the period between March 2019 – February 2020. It also...
EBA updates RTS on CRD passport notifications
EBA has published its final revised RTS and ITS on passport notifications. The new versions are aimed at betting better quality consistent information, particularly on start dates of new activities and the granularity...
Covid-19 – BoE sends Dear CEO letter on distribution of profits
On 4 June, the Bank of England (“BoE“) published a Dear CEO letter that it had sent to all regulated UK Financial Market Infrastructures and Specified Providers (“FMIs”) setting out its expectations on the...
Statement on impact of Covid-19 on LIBOR transition – update
Further to their statement on 25 March 2020, the Working Group on Sterling Risk-Free Rates has updated its statement on the impact of Covid-19 on the timeline for firms’ LIBOR transition plans. The update states that...
Further statement on the impact of Coronavirus on the timeline for LIBOR transition
Following a joint statement on 25 March, the Working Group on Sterling Risk-Free Rates has issued a further statement on the impact of Coronavirus on the timeline for firms’ LIBOR transition plans. The statement...
Covid-19: FCA sets out its expectations for wet-ink signatures
The FCA issued a statement today setting out its expectations of firms when dealing with the need for ‘wet-ink’ signatures in light of Covid-19 restrictions. Agreements The FCA’s rules do not...
Dear CEO Letter: SME Lending
The FCA published a Dear CEO Letter today setting out its expectations of Banks who lend to SMEs. Whilst SME lending sits mostly outside the FCA’s scope, the FCA has called out that any activity undertaken by a...
EC publishes draft Sustainable Finance regulations
On 8 April, the European Commission (“EC“) published the following three draft delegated regulations: Sustainable finance – minimum standards for climate benchmarks This initiative sets out minimum standards...
FCA confirms new measures for retail banking customers
Following the emergency consultation launched last week, this morning, the FCA has confirmed the range of temporary relief that must be implemented by firms by 14 April at the latest. The new rules require that, where...
FCA: List of delayed workstreams (UPDATED 7 April)
We’ve scoured the FCA website to bring you a list of the workstreams that have been delayed. Through delaying these workstreams, the FCA can focus on the evolving pressures Covid-19 is putting on firms and...
FCA Business Plan 20/21
The FCA published its business plan for the coming year this morning. The plan focuses around 5 key priorities for the year. It has been significantly reshaped because of coronavirus as it was intended to show the...
CMA issue directions to Paymentshield Ltd
The CMA has issues directions to Paymentshield Limited for failure to send Annual Reviews to PPI customers as required under the Payment Protection Market Investigation Order 2011. The directions require Paymentshield...
Change in Control: PRA Update
The PRA has updated its change in control website to ask that until further notice, any change in control notifications are only sent by email to [email protected] (and not by post). This only applies...
CMA Annual Plan 20/21
The CMA published its annual plan for the year 20/21 today. The plan sets out the following 6 key objectives for the coming year: Protecting consumers, including in particular those in vulnerable circumstances Improving...
FCA issues Covid-19 guidance for consumers
The FCA has explained that is working closely with the Government, the Bank of England, the Payment Systems Regulator and firms to ensure markets continue to work well for consumers. This includes making regular contact...
ESMA issues public statement on Covid-19
The European Securities and Markets Authority (“ESMA“), together will National Competent Authorities (“NCAs“), has made the following recommendation to financial market participants to account...
FSCS allocation of claims regarding IFAs and SIPP operators
The Financial Services Compensation Scheme (“FSCS“) has issued guidance on compensation payments as a result of failed investments made via a Self-invested Personal Pension scheme (a “SIPP”). The guidance...
ESMA publishes its 2019 Annual Report 2020 Supervision Work Programme
The European Securities and Markets Authority (“ESMA“) has published jointly (i) its annual report to highlight its direct supervisory activities during 2019 regarding credit rating agencies...
European Commission issues report on Sustainable Finance and guide to Green Bonds
In March 2018, the European Commission (“EC“) published its Action Plan on Financing Sustainable Growth which set out a comprehensive strategy to further connect finance with sustainability. As part of its...
Bank of England implements new measures to respond to the economic shock from Covid-19
The Bank of England (“BoE”) has announced a comprehensive and timely package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with Covid...
Working Group updates on progress towards key 2020 LIBOR milestones
The Working Group on Sterling Risk-Free Reference Rates has today published a series of updates on progress made towards the key 2020 milestones for LIBOR transition. The first update is a statement on how bond markets...
The FCA announces proposals to improve climate-related disclosures by listed companies
The FCA has today published proposals outlining new climate-related disclosure requirements for premium listed issuers. The new rule will require all commercial companies with a premium listing to either make climate...
The Treasury Committees approves Bailey, but says it will keep an eye on the FCA
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England. Whilst it is satisfied that Mr Bailey has the professional competence and personal...