The FCA has written to the Supreme Court supporting the application of the lenders in the Hopcraft, Wrench and Johnson motor finance commission cases for expedition of the court’s decision on the application to...
Category - Supervision
Stephen WilsonBoE speaks on FX market lessons and settlement risk
Philippe Lintern, head of BoE’s foreign exchange division, has delivered a speech on lessons learnt from the history of the FX market, at FX Markets Europe. Lintern began by describing the success story of the...
Laura WilesIRSG publishes response to competitiveness and growth objectives inquiry
The International Regulatory Strategy Group (IRSG) has published its response to the House of Lords Financial Services Regulatory Committee’s inquiry into the FCA and PRA’s secondary international...
PRA writes to Credit Unions on annual assessment
Helen Ainsworth, Senior Manager of the PRA’s Credit Unions team has written separately to credit unions (CUs) with total assets of up to £10 million and to CUs with total assets of £10 million to £40 million. The...
BoE sets out approach to stress testing the banking system
The BoE has set out its approach to stress testing the UK banking system from 2025 onwards, which will sit within its broader framework for assessing financial stability and the soundness of individual banks. The BoE...
BoE publishes system-wide stress test results
The BoE launched its first system-wide exploratory exercise of how a range of firms behave in stressed market conditions mid-2023, it has now published a final report on how the UK financial system would respond to a...
Financial Stability Report shows continued global risk and uncertainty
The BoE has published the Financial Policy Committee’s Financial Stability Report for November 2024. The report shows that uncertainty remains high due to risks associated with geopolitical tensions, global...
FCA consults on fees and levies for 2025/26
The FCA is consulting on proposals for changes to its policy on how it raises regulatory fees and levies. Proposed changes to the FEES Manual of the Handbook include: increasing the registration fee for Small Payment...
CMA writes to Monzo on Retail Banking Order breaches
The CMA has found Monzo in breach of several parts of the RBO. Specifically, the bank did not: accurately publish the results of the required service quality surveys; publish information on the “monthly maximum...
Emma RadmoreFCA scales back enforcement proposals – but still wants to go ahead
The FCA has published a second consultation paper on its proposals for increasing transparency in its enforcement process. It has gone ahead with the consultation partly to help the ongoing parliamentary scrutiny of its...
FCA speaks on future strategy
Emily Shepperd, FCA chief operating officer, has delivered a speech on the regulator’s incoming strategy, at the TheCityUK National Conference in Birmingham. The FCA’s new 5 year strategy is set to focus on...
Parliamentary group reports on FCA shortcomings
The All Party Parliamentary Group on Investment Fraud and Fairer Financial Services has published its report following its call for evidence about the FCA. The report does not make happy reading for the FCA. The report...
Regulators consult on bonus restriction reform
The PRA and FCA are consulting on reducing the restrictions surrounding bonuses of senior bankers. As noted in the Mansion House speech, the current UK practice makes it an outlier and may be damaging competition and...
FCA updates on crypto regulation approach
The FCA has updated on its approach to crypto regulation in the UK, including an indicative roadmap of key dates and a series of focused consultations. Recent research from the FCA found that approximately 1/3 of people...
FCA publishes research on crypto ownership
The latest FCA research on consumer attitudes and behaviours toward cryptoassets, 12% of UK adults now own crypto, up from 10% in previous findings. Other key findings included: Awareness of crypto rose from 91 to 93%...
FCA launches research competition to drive economic growth
The FCA has launched its first competition to fund research projects on growth, competitiveness and regulation in UK financial services. The competition comes after a recent FCA literature review which found significant gaps in available research.
Applicants are invited to submit research proposals focussing on areas within the FCA’s remit, such as:
Growth and productivity of the UK financial services sector
International competitiveness of the UK financial services sector
Supporting the UK’s economy and considering regulatory impacts
Each winner will be awarded up to �30,000 to fund their research project.
Applications close on 15 December 2024. Winning proposals will be selected by 22 December, and successful applicants will have until 31 March 2o25 to complete their research.
PSR publishes stakeholder submissions on card schemes and processing fees
The PSR has published the stakeholder submissions to its 2023 working paper on changes to card schemes and processing fees. Earlier this year, the PSR published its provisional findings on competition in the card...
FOS confirms decision to introduce CMC fees
The FOS has published a letter, dated 8 October 2024, from its Chair, Baroness Manzoor CBE, to FCA Chair, Ashley Alder, confirming its board’s decision to introduce a fee for certain claims management companies...
Tribunal disagrees with FCA on fine amount
The FCA had found Arian Financial LLP had breached Principles 2 and 3 in respect of failings in its financial crime prevention systems and controls in relation to business introduced by the now infamous “Solo...
BoE and FCA report on AI in financial services
The BoE and FCA have published a report on their third survey of AI and machine learning in UK financial services. Use and adoption The regulators found that 75% of firms already use AI, with a further 10% planning to...
FCA charges failed credit union directors with fraud
The FCA has brought charges against 3 former directors of the Dial-A-Cab Credit Union, now in administration. It alleges that committed the offence of fraud by abuse of position by transferring funds out of the credit...
BoE publishes approach to FMI supervision and consultation on Fundamental Rules
The BoE has launched a consultation on proposals to create a set of Fundamental Rules for UK Financial Market Infrastructures (FMIs). It has also published its approach to FMI supervision in practice. In publishing...
Committee publishes FCA enforcement interview evidence
The House of Lords Financial Services Regulation Committee has published the oral evidence from its session on 13 November in which it interviewed Ashley Alder and Nikhil Rathi about the FCA’s enforcement...
FSCS Outlook shows higher than forecast levy for 2025/6
The latest edition of the FSCS’s Outlook shows that its levy for the current year is unchanged, and it expects to pay similar amounts in compensation in 2025/6 as in the current year (that is, £367m). However, it...
Tribunal agrees with FCA decisions to ban but queries disgorgement calculation
The Upper Tribunal has backed the FCA’s decision to fine and ban Toni Fox-Bryant and David Price after discovering failings in their firm (CFP Management Limited) in relation to pension transfer business. The FCA...
FCA fines and bans individuals for reckless breach of requirements
The FCA has fined and banned two former partners of MedDen Financial Services LLP for recklessly withdrawing funds from their firm’s bank account for their own purposes the day after the FCA had imposed an asset...
Regulators receive “remit” letters
Following the Mansion House speech, HM Treasury has published several letters to regulators, setting out requests and clarifying their remit: to the FCA and PSR on payments regulation; to the BoE for the Prudential...
FCA reacts to Mansion House speech
The FCA has reacted to several announcements from the Mansion House speech. It has reiterated that it is committed to supporting growth and says it has fully embraced its secondary international competitiveness and...
Government publishes National Payments Vision
The National Payments Vision sets out the government’s ambitions for the UK payments sector. The government is keen to build on the UK’s position as a global leader in payments and is looking to strengthen...
Treasury consults on captive insurance approach
HM Treasury is consulting on a possible new approach to captive insurance companies. The market for captive insurance is fast-growing and despite the UK’s world-leading insurance sector, few captives are...
FCA updates on Advice Guidance Boundary review
Following the Mansion House speech, the FCA has updated on the next steps in its Advice Guidance Boundary Review. It is going to focus first on pensions, and will consult in December on high-level proposals for targeted...
A new regulatory regime for ESG ratings providers
HM Treasury has published the outcome of its consultation on the new regulatory regime for ESG ratings providers and the draft legislation that will create it. The regime will be created through the RAO, and the...
Mansion House speech heralds 5 priority growth areas
The Chancellor’s first Mansion House speech stressed the importance of the financial services industry to the UK and highlighted 5 priority growth opportunities on which the Government will focus its strategy:...
PRA publishes final Solvency II review papers
The PRA has finalised and published the final pieces of its rules and policy materials that will replace the Solvency II assimilated law with the new “Solvency UK” regime. The PRA is working to replace all...
Gibraltar transitional regime extended to 2025
The government has extended the transitional regime under which Gibraltar firms can operate in the UK. The transitional period was supposed to expire at the end of 2024, but the government has not yet made the rules for...
Latest FCA operating metrics show no “red”
The FCA authorisations operating metrics for July to September 2024 show that 12 metrics are green, 4 are amber and none are red. The FCA determined 98.5% of applications across the board within the statutory deadline...
BoE and PRA update enforcement procedures
The BoE has updated its and the PRA’s statements of policy and procedures around enforcement in the light of the new powers given to the regulators under FSMA 2023. The new policies and procedures will be relevant...
FCA portfolio supervision letter to CRAs
The FCA has written a Dear CEO portfolio supervision letter to the credit rating agency sector. Its strategy continues to be driven by: addressing the inherent conflicts of interest with in the CRA business model; heavy...
FCA to consult on time extension for non-discretionary motor finance commission complaints
Following the Court of Appeal’s decision to allow appeals to the Supreme Court in relation to three cases of non-disclosure of non-discretionary commission for motor finance (we covered this in FIN here), the FCA...
Critical third party rules finalised – but no designations yet
The BoE, PRA and FCA have finalised the package of measures that will set: the approach that HM Treasury will take to designating entities as being critical to the UK financial sector, following advice from the...
Government acts on “smarter” ring fencing regime
Following the 2023 consultation by the previous government on implementing the recommendations of the Panel led by Sir Keith Skeoch to review the workings of the ring-fencing regime for large banks that took effect in...
Michael LewisTreasury publishes draft Designated Activities supervision regulations
The Treasury has published draft Regulations to give the FCA supervisory and enforcement powers over certain activities which are to become Designated Activities for the purposes of FSMA following the changes introduced...
FCA improves enforcement disclosure processes
The FCA has completed its review of its disclosure processes in enforcement cases following a recommendation from the Upper Tribunal. The FCA is required to disclose all documents it relies on to build its case and any...
Lords Committee publishes enforcement proposal views
The House of Lords Financial Services Regulation Committee, which took over from its predecessor in gathering evidence on the FCA’s controversial enforcement proposals has published several pieces of written...
FCA portfolio letter for SIPP operators
The latest in the current series of FCA portfolio supervision letters is aimed at the CEOs of SIPP operators. The FCA has recently completed its 2024 SIPP data request and will be using the information from it in its...
BoE speaks on AI and financial stability
Sarah Breedon spoke at a conference on the opportunities and challenges of emerging technologies in the financial ecosytem. She delved into the novel features of Generative AI and what it might mean for financial...
Transition Plan Taskforce publishes final report
The Transition Plan Taskforce has finished its work and published its final report, which identifies key opportunities and challenges for global adoption of transition plans. Dame Amanda Blanc and Tulip Siddiq, Co...
Regulators confirm change in control assessment guideline update
The PRA and FCA have confirmed updates to their guidance on the prudential assessment of acquisitions and changes in control of regulated firms. The joint PRA/FCA supervisory statement, and the FCA’s Finalised...
FCA publishes SDR and investment labels disclosure examples
The FCA has published examples across a section of investment labels to demonstrate how firms might meet disclosure requirements under the Sustainability Disclosure Requirements (SDR) and investment labels regime, which...
FCA publishes lessons for operational resilience post-CrowdStrike
The FCA has published its observations and key lessons from how firms responded to the July 2024 CrowdStrike outage, and their preparedness to respond to future incidents. The FCA noted that it has seen a continuing...
PRA feeds back on CRR changes
The PRA has published feedback to its consultation on changes to certain parts of its rulebook in respect of: Disclosure and reporting in respect of various CRR requirements; changes to the Policyholder Protection Part...
FCA bans more advisers over pension transfer advice
The FCA has banned two more individuals for pension advice transfer failings in respect of transferring out of defined benefit pension schemes, including the BSPS. It has also banned Steven Hodgson and Paul Adams from...
Alison Potter to become FCA and PSR decision-making chair
The FCA and PSR Boards have appointed Alison Potter as chair of the FCA Regulatory Decisions Committee and the PSR Enforcement Decisions Committee. She takes over from Tim Parkes with effect from 1 November.
FCA speaks on private market growth.. and motor finance
Nikhil Rathi, speaking at the Investment Association, spoke of the growth of private markets and the FCA’s support for initiatives that get companies the best options for financing. In an interesting segue, he...
FCA publishes retail banking portfolio letters
The FCA has published its latest portfolio supervision letters for retail banks and building societies. It has set 6 unsurprising priorities: Consumer Duty: looking at institutions to fully embed the Duty to deliver...
How will the new Data (Use and Access) Bill impact DSARs?
🤖 The Bill reinstates the limitation on the restriction of automated decision-making to only those decisions based partly or wholly on special category personal data. The financial services sector has been an early...
Katie SimmondsFCA publishes mortgage portfolio supervision letters
The FCA has published Dear CEO letters to lifetime mortgage providers and non-bank mortgage lenders and third party mortgage administration firms. The key themes are: how changes in the market are driving many...
FCA publishes Q3 fin proms data
The FCA has published its financial promotions data for Q3 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 10,593...
FCA speaks on vulnerability in the wealth management sector
Graeme Reynolds, director of competition at the FCA, delivered a speech on competition and vulnerability at the Personal Investment Management & Financial Advice Association’s (PIMFA) Wealth Vulnerability...
FCA and Practitioner Panel publish 2023/24 survey findings
The FCA and the Practitioner Panel have published a report setting out the findings of their 2023/24 joint survey of regulated firms. The majority of responding firms had a positive view of the FCA’s performance...
FCA finds non-bank lenders could do better on financial resilience
The FCA has published the results of a multi-firm review of consumer credit and non-bank lenders in which it looked to assess their approach to financial resilience. It chose firms with a wide range of business models...
PRA speaks on competing for growth
Sam Woods, Deputy Governor for Prudential Regulation and CEO of the PRA, delivered a speech on competing for growth at the Annual City Banquet. The speech focussed on the secondary competitiveness and growth objective...
FCA speaks on crypto-registration approach
The FCA has spoken about its approach to registration of crypto-asset firms, countering accusations that it is being too tough at the registration gateway and as a result stifling innovation. The FCA’s stance is...
FCA fines finance company over fair treatment
The FCA has fined Volkswagen Financial Services (UK) Limited over £5m in a package that also involves the firm in paying £21.5m redress to customers who may have suffered harm over the firm’s failure to treat...
Complaints Commissioner criticises FCA over status disclosure complaint
The Complaints Commissioner has published its final report relating to a complaint about how the FCA handled an issue relating to status disclosure. The complainant contacted the FCA to complain about a lack of clarity...
BoE consults on 2024/25 supervisory fees for financial market infrastructure
The BoE has published a consultation paper setting out proposals for its supervisory fees for financial market infrastructure for 2024/25. Key proposals include: Spreading the charging for one-off costs related to...
PRA consults on large exposures framework
The PRA has published a consultation on the prudential framework for large exposures, which – alongside risk-weighted capital requirements – aims to protect firms from large losses resulting from the sudden...
FCA speaks on growth and enforcement proposals
Nikhil Rathi, FCA Chief Executive, delivered a speech on growth at the Annual City Banquet. His speech highlighted the FCA’s literature review on links between financial regulation and growth and that it will...
HMT publishes Banking Liaison Panel Terms of Reference
HMT has published the Banking Liaison Panel Terms of Reference, which include reference to: The Panel’s remit, including its broad purpose and the specific functions set out under section 10(2) of the Banking Act...
HMT adds draft recapitalisation chapter to Banking Act: special resolution regime code
HMT has added a new chapter to the Banking Act 2009: special resolution regime code of practice. The new chapter provides draft details of the recapitalisation payment mechanism introduced in the Bank Resolution...
UK-Switzerland financial dialogue discusses AI
The first formal meeting of the UK-Switzerland Financial Dialogue since the conclusion of the Berne Agreement took place on 15 October. Among the topics discussed were: domestic implementation of the Berne agreement...
PRA consults on CRR assimilated law
The PRA has published a consultation on how it plans to restate the relevant provisions from the assimilated CRR into the PRA Rulebook and other policy material. The changes would involve the creating of two new parts...
FCA updates regulatory initiatives grid
The FCA has published an interim update on its Regulatory Initiatives Grid. It had postponed the scheduled 8th edition because of the election and says that the replanning required as a result means that there...
Treasury publishes draft PRIIPs replacement regulations
The draft Consumer Composite Investments (Designated Activities) Regulations 2024 have been published. The Regulations will repeal all assimilated law relating to PRIIPs and create a UK regime of “consumer...
Operational Resilience
See our article, for Compliance Monitor, on getting ready for the new operational resilience requirements.
FCA updates Climate Financial Risk Forum pages
The FCA has updated its CFRF information on its website with details of the October 2024 guides. The new guides relate to: nature-related risk – a handbook for financial institutions; short term scenarios; and...
FCA speaks on supervisory strategy
Nick Hulme, head of the FCA’s advisers, wealth and pensions, consumer investments department, has spoken on the FCA’s tweaked supervisory focus. He said the FCA continues to focus on good client outcomes and...
FCA publishes TechSprint information
The FCA has published videos and supporting information from:
its Market Abuse techsprint and
its Financial Inclusion techsprint
Market Watch focuses on SYSC 6 and UBOs
The latest edition of Market Watch looks at how firms can ensure compliance with SYSC 6.1.1R when dealing for overseas clients who operate aggregated accounts that provide no visibility of the UBOs. Firms will often...
FCA publishes payments Consumer Duty multi-firm review
The FCA has published the results of its multi-firm review into how 23 payments firms have implemented the Consumer Duty. It carried out its survey in January, and included firms from across the payments portfolio. It...
FCA updates website on consumer credit reporting
The FCA has updated its website on reporting requirements for consumer credit firms to take account of the upcoming changes to Product Sales Data reporting that will take effect from October 2025 and April 2026 for...
PRA consults on changes to resolution assessment reporting
The PRA is proposing to carry out, together with the BoE, the third assessment of firms’ resolvability in 2026-27. It is consulting on a proposal to require relevant firms to submit their next reports to the PRA...
FCA speaks on “predictable volatility”
Nikhil Rathi has spoken on the volatility of capital markets and on how one small “blip” can have a significant ripple effect. He noted how things that used only to happen rarely now happen more frequently...
FCA sets clear expectations on APP fraud reimbursement
The FCA has wasted no time. On the day the new reimbursement requirement for APP frauds using FPS or CHAPS took effect (7 October), it has written two Dear CEO letters, one to banks and building societies and one to...
Regulators herald APP scam reimbursement requirement
The PSR and other regulators have welcomed the effective date of the APP scam reimbursement requirement, applicable to payments made over FPS and CHAPS between UK bank accounts. The PSR stressed that: over 99% of claims...
FCA sets out financial adviser expectations
The FCA’s latest portfolio supervision letter to financial advisers and investment intermediaries sets out where it sees the most potential harms that the sector could generate and its expectations on firms...
BCAP consults on Code amendment for unregulated investments
The Broadcast Committee of Advertising Practice is consulting on an amendment to its Code in respect of how it restricts advertising for certain products. There is already in place a rule that restricts ads for certain...
Government finalises payment delay regulations
The final draft of the Payment Services (Amendment) Regulations 2024 confirms that PSPs can delay the execution of certain payment orders where the PSP establishes reasonable grounds to suspect the order has been made...
FCA succeeds in BlueCrest redress scheme appeal
Following an Upper Tribunal decision in June 2023 which upheld an application by BlueCrest Capital Management (UK) LLP to summarily strike out a redress requirement imposed by the FCA for its purported breaches of...
Autumn budget to be held on 30 October
The Government has announced that an Autumn Budget will be held on 30 October. The last budget, in spring, was of course under the previous government. Although the Budget is usually an annual event, on a change of...
FCA confirms forbearance in relation to investment trust disclosure requirements
Following the Treasury’s announcement that it would be excluding certain investment trusts from the PRIIPs Regulation and other EU-assimilated law, the FCA has confirmed it will be applying new regulatory...
FCA and BoE publish digital securities sandbox policy statement
Following a joint consultation on creating a Digital Securities Sandbox (DSS), the FCA and BoE have published a policy statement setting out their approach to safely adopting new technologies in the operation of...
UK Finance respond to FSB recommendations on cross-border payments services
UK Finance has responded to two consultations from the FSB, relating to the regulation and supervision of cross-border payment services providers (PSPs) and aligning cross-border payments and data frameworks. In the...
PRA speaks on insurance supervisory approach
Shoib Khan has spoken on the PRA’s secondary competitive and growth objective. The main theme of the speech was how the PRA is taking a differentiated supervisory approach for different market segments, which is...
PRA to contact firms about current waivers
In November, the PRA will be contacting insurers who have waivers or modifications under its current rules to let them know whether they will need to request consent to vary the wording of their existing directions so...
PSR updates powers and procedures guidance
The PSR has published an updated version of guidance that explains its role and ways of working and how it exercises its regulatory powers.
PSR confirms APP scam or civil dispute guidance
The PSR has confirmed its final guidance to help firms distinguish whether claims they receive from customers who have lost money are APP scams or more likely to be civil disputes. The guidance is aimed at helping firms...
FCA speaks on evolving rules
Sarah Pritchard has spoken of the need for the FCA to adapt its rules as regulation changes – with particular reference to adopting a less prescriptive and more outcomes-focussed approach in the light of the...
FCA speaks on enforcement approach
Therese Chambers has spoken on the FCA’s evolving approach to enforcement. She noted the key drivers of: intervening earlier, acting faster and with more focus and taking a targeted, outcomes based approach She...
FCA senior independent director review finds whistleblowing policy breaches
A review by the FCA board’s senior independent director into allegations that the identity of two former employees who complained that their identity was not kept confidential after whistleblowing reports has...