Sasha Mills, BoE Executive Director of Financial Market Infrastructure, and Mark Francis, FCA interim director of wholesale markets sell-side, have delivered speeches on the implementation of T+1 settlement at a UK...
Category - Supervision
Laura WilesFSB seeks feedback on implementation of global regulatory framework for crypto-asset activities
The FSB is seeking feedback as part of its thematic peer review on the implementation of its global regulatory framework for crypto-asset activities. The FSB has distributed a questionnaire to relevant jurisdictions to...
PRA sets out future approach to policy
The PRA has set out its approach to policy under the FSMA 2023 regulatory framework, which gave the regulatory wider rule making responsibilities and enhanced accountability requirements. The Approach document has now...
FCA explains email deletion plan
A blog from the FCA has explained the reasoning behind its statement that it is to delete all emails in staff inboxes that are over a year old. The blog explains that the FCA is not deleting evidence, but rather is...
Emma RadmoreFCA meets almost all authorisations service metrics
The FCA’s metrics showing its authorisations figures for the last quarter of 2024 shows no “red” metrics, and only one amber, which is on the new firm authorisations (which has been amber for some...
Government agrees 2027 implementation for T+1 settlement
The Accelerated Settlement Taskforce (AST) Technical Group has published its final report on T+1, setting out a detailed plan for the UK to move to faster settlement of securities trades. The report recommends –...
Treasury request to intervene in motor finance commission case denied
The press is reporting that the applications by HM Treasury and the Finance and Leasing Association to intervene in the Supreme Court hearing in the Johnson, Hopcraft and Wrench cases have been denied, while the...
FCA delays “polluter pays” decisions
The FCA is still considering the feedback to its consultation on requiring firms to set aside capital resources for potential redress liabilities. While it is continuing to carry out increased monitoring of firms and...
FCA delays decision on SDR extension
The FCA has confirmed that it will no longer imminently be publishing its feedback statement on the proposed extension of the SDR and investment labels regime to portfolio management. The FCA is aware that fund managers...
Treasury acts to encourage more mortgages
The Treasury has committed to a new mortgage guarantee scheme and urged the FCA to carry out an “ambitious and rapid” review of its mortgage rules – both with the aim of allowing more people to take...
FCA researches potential mortgage pricing differences by demographic characteristics
As part of its AI research series, the FCA has published a report on the potential for pricing differences by demographic characteristics in the mortgages market. The FCA compared mortgage features like interest rates...
PRA makes changes to simplify capital communications
The PRA has finalised the rule changes needed to allow it to streamline firm-specific capital communications. The changes do not change the capital requirements on firms but will simplify the content and process of the...
Treasury Committee asks for bank IT outage info
The Treasury Committee has written to 9 banks and building societies asking them to provide information on IT outages in the past 2 years and how these have affected current accounts. The request follows the recent...
FOS sets out approach to CMC fees
The FOS has published a policy statement setting out its approach to charging professional representatives a fee of £250 if they wish to refer a case to its service. The new arrangements will take effect from 1 April...
FCA 2024 fin proms data shows increased action against misleading adverts
The FCA’s latest financial promotions data shows 19,766 promotions were amended or withdrawn in 2024, almost doubling the 2023 figure of 10,008. In previous reporting, the FCA acknowledged this sharp increase was...
Lords Committee calls for FCA to cease “naming and shaming” enforcement plans
The Financial Services Regulation Committee has published a report – Naming and shaming: how not to regulate – setting out its views on the FCA’s controversial ‘naming and shaming’...
FCA reforms commodity derivatives framework
The FCA has published a policy statement on reforms to the regulatory framework for commodity derivatives. The 2023 consultation covered key pillars of the regime, including position limits and related exemptions...
FCA speaks on culture
Emily Shepperd, FCA chief operating officer, has delivered a speech on culture at the 10th Annual Culture and Conduct in Financial Services Summit. The speech, titled “Culture is contagious” highlights that...
UK Finance sets out principles governing customer vulnerability disclosures in mortgage sector
UK Finance has published a set of principles for information sharing between mortgage intermediary firms and lenders. The FCA has advised that it continues to see vulnerable consumers face challenges when disclosing...
HM Treasury launches call for evidence on AI in financial services
The Treasury Committee has launched a new inquiry into the potential impacts of increased use of AI in banking, pensions and other financial services. It is seeking evidence on how financial services can utilise AI...
FCA sets out priorities for payments portfolio firms
The FCA has written a letter setting out its priorities for payments portfolio firms. Since its previous letter in March 2023, the regulator noted that it had seen improvements in governance arrangements, risk...
UK and Japan publish Financial Regulatory Forum Joint Statement
The UK and Japan held the 3rd Financial Regulatory Forum on 20 January 2025 – with two joint sessions held on Transformation of the Global Landscape and Sustainable and Climate Finance. The UK contingent was made...
FCA publishes Handbook Notice on collective investment schemes sourcebook updates
The FCA has published a Handbook Notice describing changes to COLL as set out in the Collective Investment Schemes Sourcebook (Concentration Limits) Instrument 2025, which came into force 31 January 2025. Following a...
FCA outlines supervision strategy for CMCs
The FCA has written to claims management companies (CMCs) outlining its supervision strategy, including its updated view of the harms and risks that CMCs pose and its expectations for firms in the sector. The FCA...
FCA sets out supervision priorities for mortgage intermediaries
The FCA has written to mortgage intermediaries outlining its supervision priorities for the next 2 years. Its key focus will be on embedding the Consumer Duty. Other priorities include: Quality of advice and unsuitable...
FCA evaluates results of DB market measures
The FCA has published a paper evaluating the results and lessons from its ban on contingent charging and other remedies in relation to the defined benefit transfer advice market. The FCA put the measures in place in...
PRA publishes Climate Change Adaptation report
Hot on the heels of the FCA, the PRA has published its Climate Change Adaptation report. This is the PRA’s third report on the subject and focuses on the prudential impact on banks and insurers. Like the FCA, it...
Treasury publishes more responses on strategy recommendations
HM Treasury has published responses from the Prudential Regulation Committee and Financial Policy Committee to its letters setting out recommendations. the Prudential Regulation Committee response notes what the PRA has...
FCA publishes climate change “adaptation” report
The FCA has published a report requested by DEFRA, looking at the major issues that affect climate change adaptation in the financial services industry. Its research and its discussions with firms highlighted 3 major...
PRA speaks on prime brokerage developments
Rebecca Jackson of the PRA spoke to UK Finance about recent dynamics in the prime brokerage sector, and the results of a recent PRA thematic review. Key points included: that the core of prime brokerage is financing...
Michael LewisUK Finance publishes generative AI use report
UK Finance and Accenture have published a report on how financial services firms are using generative AI. The report finds that the sector is investing more in AI, and that generative AI is driving the most value in:...
PSR and BoE agree next steps in CHAPs co-ordination
The PSR and BoE have published correspondence between them setting out how they intend to continue to work together on the CHAPS reimbursement requirement. The PSR does not have powers under the Financial Services...
UK Finance calls for urgent review of BoE MREL proposals
UK Finance has responded to the BoE consultation on its approach to setting a minimum requirement for own funds and eligible liabilities (MREL). It says the Bank must radically change its approach to both the assets and...
Report on consumer-facing AI in financial services
The Global Financial Innovation Network has published a report on the use of consumer-facing AI in global financial services. The GFIN, spearheaded by the FCA and the Dubai FSA, carried out a study during 2024 on...
LSB to retire Standards of Lending Practice for personal customers
The LSB is to retire its Standards of Lending Practice for personal customers at the end of March 2025. The standards were first published in 2016, and have been reviewed and updated several times. However, the last...
FCA outlines wholesale broker supervision strategy
The FCA has published a Dear CEO letter to wholesale brokers, setting out its new supervision strategy for firms. In the last 2 years, the FCA has engaged with firms on issues including risk management, financial crime...
FSB sets out 2025 priorities
The Financial Stability Board (FSB) has set out its work programme for 2025. Priority areas include: Supporting global cooperation on financial stability Enhancing the resilience of non-bank financial intermediation...
FCA and PSR set out next steps for open banking
The FCA and the PSR have confirmed that Open Banking Limited will play a key role in setting up an independent central operator to coordinate how variable recurring payments are made in this next step in the development...
Motor finance commissions and lender liability: the story so far
Amid reports that now HM Treasury is seeking to intervene in the Supreme Court case, read our article summarising what’s happened so far…..
PRA outlines supervision priorities for international banks and deposit takers in 2025
The PRA has published Dear CEO letters to international banks and designated investment firms, and UK deposit takers, setting out its supervision priorities for 2025. The need for robust governance, risk management and...
January employment update
This month, we have a few interesting cases and a couple of other snippets from the employment world. CASES UPDATE Alexis v Westminster Drug Project [2024] EAT 188 The Employment Appeal Tribunal (EAT) had to decide...
Karen Plumbley-JonesFCA publishes summary grounds of intervention in motor finance appeal
The FCA has published summary grounds of intervention in support of its application to intervene in the appeals relating to motor dealer-broker commissions. The FCA wants to intervene in writing and for up to an hour...
FCA highlights simplification as means of supporting growth
The FCA’s letter in response to the Prime Minister setting out how the FCA wants to collaborate with the Government to encourage growth highlights the work the FCA has already done in the wholesale markets to...
2025 survival guide: 10 things to be aware of
We’ve put together a quick guide to 10 key things for financial institutions to keep an eye on in 2025, across all areas of business.
PRA suggests “concierge” service for inbound firms to improve competitiveness
In response to a letter of 24 December 2024, the PRA has written to the Prime Minister, Chancellor and Secretary of State, setting out its ongoing work and plans to advance competitiveness and growth. The PRA sees its...
Chancellor to host industry forums on Financial Services Growth and Competitiveness Strategy
To inform the design of the inaugural Financial Services Growth and Competitiveness Strategy, the Chancellor is set to host a series of Industry Forums to seek views on the best way to deliver long-term in the sector...
FCA writes to Government on supporting growth
In response to a letter of 24 December 2024, the FCA has written to the Prime Minister, Chancellor and Secretary of State, setting out its ongoing work and plans to support growth. Digital innovation The FCA outlined...
PRA delays Basel 3.1 implementation
The PRA, in consultation with HM Treasury, has decided to postpone the implementation of the Basel 3.1 framework by one year to 1 January 2027. The delay will allow more time for clarity on how the framework will be...
Reminder: new DBS check requirement for controllers
We reported in December on the upcoming changes to FCA’s processes to require would be controllers of authorised or registered firms to have DBS checks, conducted within the 6 months before the application...
PSR publishes new strategy
The PSR has published its strategy for the next 2 years. It is now mid-way through a 5 year strategy, and has made strong progress in delivering positive change. It now needs to: complete work already underway...
PRA speaks on stress testing and launches LIST 2025
The PRA has launched its life insurance stress test for 2025. The exercise will: assess sector and firm resilience to severe but plausible adverse scenarios; strengthen market understanding and discipline; and improve...
ASA upholds complaint against investment training programme
The ASA has upheld a complaint against Zimran Ltd t/a Prosperi Academy. Prosperi Academy is an app offering financial investment training courses. The ad showed an individual’s bank account balance increasing in...
Government responds on governance of AI
The Government response to recommendations of a commons committee on governance of AI agrees that AI-specific legislation is needed and that it will consult on legislation that will apply to the still small number of...
Government updates on UK-China financial services cooperation
Following the latest meeting between the Chancellor and the Chinese Vice Premier, the Government has confirmed its agreement with China to improve cooperation and capital market connectivity between the countries. Many...
FSB considers relevance of climate transition plans for financial stability
The Financial Stability Board (FSB) has published a report on the relevance of climate transition plans for financial stability. The FSB found that in providing forward looking information, climate transition plans can...
Ring fencing changes regulations made
Changes to the ring-fencing regime will take effect in February and will implement changes to improve how the regime works. The changes both resolve unintended consequences of the current law, provide greater...
OFSI and OFAC sign MoU
HMT has published a MoU between the Office of Financial Sanctions Implementation (OFSI) and the United States Office of Foreign Assets Control (OFAC), to facilitate the exchange of information between the organisations...
BoE updates on digital pound
The BoE has published a report setting out the work it has done in the last year on the digital pound and the evolving payments landscape. The regulator has been working with HMT to explore the possibility of a digital...
FCA sets out expectations on redress liabilities and “polluter behaviours”
The FCA is increasingly seeing firms attempt to avoid potential or actual liabilities whilst still benefitting from the assets of the business, which it calls “polluting behaviour”. It has published new...
PRA outlines insurance supervision priorities for 2025
The PRA has published a Dear CEO letter to PRA-regulated insurance firms, setting out its supervision priorities for 2025. The key priorities reflect the ongoing developments in the context for life and general...
Regulators consult on FSCS management expenses levy limit 2025/26
The FCA and PRA are consulting on proposals for the Management Expenses Levy Limit (MELL) for the FSCS in 2025/26. The regulators propose the MELL for 2025/26 will be £108.6m, consisting of: the FSCS management expenses...
FCA sets out strategy for credit reference agencies and service providers
The FCA has published a portfolio letter to credit reference agencies (CRAs) and credit information service providers (CISPs) setting out its strategy for the next two years. The priorities will focus on: Embedding of...
FCA objects to Change in Control due to notification failures
The FCA has issued a final notice objecting to the proposed acquisition of Olampicaran Limited by Mr Ahmed, who had failed to notify and seek approval from the FCA. Olampicaran was a small payments firm providing money...
FCA hints at P2P sector review
The FCA’s response to the Complaints Commissioner report in relation to a complaint about a P2P firm suggests it may be considering a more detailed review of the sector. The complainant had alleged that the FCA...
Court refuses JR application on mis-advised SIPP investment
The High Court has refused an application for judicial review of the FSCS’s refusal to reconsider a compensation determination in respect of three investors who lost money after transferring funds from their...
Lords Committee writes to FCA on motor finance commission cases
The House of Lords Financial Services Regulation Committee has written to the FCA asking it to clarify certain elements of its position on the motor finance commission cases, as set out in a letter dated 13 November...
Regulators review MoU on payments systems
The BoE, FCA, PRA, PSR have reviewed their MoU on payments systems in the UK, as they are required to do on an annual basis. The regulators noted that over the past year they have taken steps to improve the sharing of...
FCA issues Supervisory Notice to Hydrogard Legal Services
The FCA has published a First Supervisory Notice against Hydrogard Legal Services Limited, a firm with claims management permissions, requiring it to immediate cease carrying on all regulated activities other than with...
FCA sets out updates to the National Storage Mechanism
Following a consultation, the FCA has set out its enhancements to the National Storage Mechanism (NSM). The changes will introduce more comprehensive metadata requirements to improve functionality, making it easier for...
FCA publishes latest Handbook Notice
The FCA has published its latest Handbook Notice, which confirms the following updates: Introduction of criminal background checks on owners and controllers at the authorisation gateway. The change is in line with a...
Regulators publish cyber findings for 2024
The BoE, PRA and FCA have published their latest annual CBEST thematic report. The report assesses the cyber resilience of key financial institutions through security testing performed in ‘live’ corporate...
FCA asks Collateral investors to come forward for an apology
The FCA has apologised to people who invested in peer-to-peer firm Collateral, whose directors fraudulently changed the firm’s details on the FCA’s interim permission register to make it look like it had...
FCA and BoE update MoU
The BoE and FCA have updated their Memorandum of Understanding, which they use to co-ordinate and co-operate in carrying out supervision of FMIs.
FCA charges former WealthTek partner
The FCA has brought criminal charges against John Dance, the principal partner at WealthTek LLP, in relation to 9 criminal offences, including multiple counts of fraud and money laundering. WealthTek, then known as...
PRA sets out policy on solvent exit planning for insurers
Following a consultation, the PRA has published a policy statement on solvent exit planning for insurers. The PRA had proposed new rules and expectations that firms must prepare for a solvent exit as part of their...
PRA postpones launch of dynamic insurance stress test
The PRA has announced that it is postponing the launch of the dynamic general insurance stress test (DyGIST) until May 2026. The delay is intended to reduce the burden on general insurers in 2025 as they prepare to...
FCA sets out findings on young investors’ decision-making
The FCA has found that two thirds of young investors take less than 24 hours to make an investment decision. Their latest research surveyed 2,000 UK investors aged 18 – 40, who had purchased a viral trend and...
Employment legislation update December 2024
The Employment Rights Bill is the key legislative development to keep an eye on in the employment space, and you can follow developments on our new timeline, but it’s not the only development of interest in the...
Dan FawcettHigh Court backs FOS on DCA complaint
The High Court has dismissed all 3 grounds of appeal brought by a lender under a discretionary commission arrangement (DCA) for motor finance, following a FOS decision to uphold a customer complaint. The grounds of...
Stephen WilsonFCA successfully appeals Upper Tribunal decision
The Court of Appeal has allowed the FCA’s appeal against an Upper Tribunal decision which asked the regulator to reconsider a proposed ban against an individual and directed that a fine should not be imposed. In...
Employment cases update – December 2024
We are pleased to introduce into FIN a series of monthly updates from our employment team. This post looks at a few interesting cases. De Bank Haycocks v ADP RPO UK Ltd [2024] EWCA Civ 1291 The Court of Appeal had to...
Jon HalesFCA consults on PISCES platform framework
The FCA is consulting on the proposed framework for its Private Intermittent Securities and Capital Exchange System (PISCES). PISCES will be a new type of trading platform, enabling intermittent trading of private...
LSB review highlights importance of SME protections
The LSB’s review of registered firms’ application of its Standards of Lending Practice for business customers has found 102 areas where action has been required to bring firms into compliance with the...
PRA publishes authorisations performance report for Q3 2024
The PRA has published its report on its authorisations performance during Q3 2024/25, During the relevant period from 1 September to 30 November 2024, the PRA achieved 100% compliance with its service standards across...
BoE speaks on future of RTGS service
Victoria Cleland, Executive Director of Payments at the BoE, has given a speech on the Future Roadmap for BoE’s Real Time Gross Settlement (RTGS) service, at FinTech Connect. The BoE published a discussion paper...
FCA seeks comments on cryptoasset market abuse and admission and disclosure regimes
The FCA is seeking comments on its approach to cryptoasset Admissions and Disclosures, and the Market Abuse Regime for cryptoassets (MARC). In November 2024, the government confirmed it will proceed with legislation to...
FCA publishes markets supervision letters
The FCA has published a further series of portfolio supervision letters. They are addressed to: data reporting services providers; custody and fund services providers; contracts for differences providers; trading...
Regulators consult on operational incident and third party reporting
The FCA has published a consultation paper on proposals to require firms to report operational incidents and their material third party arrangements. The requirements will apply to authorised firms and PSPs as well as...
FCA publishes discussion paper on pensions regulation
The FCA has published a discussion paper on adapting requirements in the pensions sector. The FCA noted that these is a programme of policy changes underway to this area of the market, but wants the paper to stimulate...
FCA consults on reforms to advice guidance boundary for pensions
As part of its Advice Guidance Boundary Review, the FCA is consulting on targeted support reforms for pensions. The FCA identified a gap in the market between regulated, holistic advice to individuals at one end, and...
FCA conducts literature review on bias in supervised machine learning
The FCA has published a literature review on bias in supervised machine learning. It is the first of a series of planned research notes on bias in AI. The research note found: The main potential source of bias was data...
FCA sets out areas for improvement in complaints and root cause analysis
Following a review into 40 firms across a range of sectors, the FCA has set out guidance on good practice and areas for improvement for firms’ approaches to complaints and root cause analysis. The FCA identified...
FCA sets out good practice for Consumer Duty board reports
Following a review into 180 firms’ approaches to completing the first annual Consumer Duty board report, the FCA has set out guidance on good practice and areas for improvement. The FCA noted that the best reports...
FOS publishes Independent Assessor’s annual report for 2023/24
The FOS has published the Independent Assessor’s report for the financial year 2023/24. During this period, the FOS resolved 192,077 cases, with 1.8% of those customers lodging complaints about the service. Of the...
Treasury kickstarts financial inclusion strategy
Several large financial institutions including Lloyds Banking Group, Aviva and Experian as well as consumer bodies are forming a new committee which will feed in to the Government’s development of next...
FCA highlights Consumer Duty focus areas
The FCA has set out its priorities under the Consumer Duty for the rest of 2024 and 2025. These are: embedding the Duty and raising standards: within this priority, the FCA wants to understand how firms are improving...
FCA updates perimeter report
The FCA has updated its Perimeter Report. The report highlights the FCA’s remit and powers, including the new Designated Activities Regime, and then lists the key areas of harm linked to the perimeter and some key...
FCA quarterly consultation includes PEMC limit increase
The FCA’s latest quarterly consultation includes proposals to: clarify some consumer credit product PSD reporting; increase the current £100 medical condition premium trigger that means firms must signpost...
Lords Committee publishes FCA enforcement position letter
The House of Lords Financial Services Regulation Committee has published a letter from Nikhil Rathi answering some questions the Committee has asked following the FCA’s appearance before them. The letter mainly...
Treasury makes Singapore equivalence decision
The Markets in Financial Instruments (Equivalence) (Singapore) Regulations 2024 take effect on 31 December 2024 and designates a list of 18 Singaporean trading venues as equivalent to the UK in terms of regulatory...