Laura WilesThe FCA has collected data from lender firms as a follow up to the super-complaint from the Federation of Small Businesses about the use of personal guarantees for business loans to SMEs. The complaint had noted that...
Category - Resources
Emma Radmore
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 writes to Supreme Court on motor finance
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...
Duncan ScottIRSG 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...
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 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...
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...
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:...
The Economic Crime and Corporate Transparency Act: Companies House reveals implementation timetable for upcoming changes
Companies House published a policy paper on 16 October 2024 setting out an indicative timetable for the changes at Companies House which are still to be introduced by the Economic Crime and Corporate Transparency Act...
Suzanne GadoBoE 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...
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 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 reports on cash savings progress and price and value outcomes
The FCA has published its latest analysis of fair value in the cash savings markets. Key highlights are: average interest on easy access savings accounts rose from 1.66% last July to 2.11% in June 2024; while firms were...
PRA publishes findings of internal audit review
The PRA asked the internal audit function of a selection of non-systemic UK deposit takers to review their Credit Risk Management Framework. 33 firms participated and results showed the most common finding was yellow...
PRA to review leverage ratio thresholds
The PRA is looking at the leverage ratio requirement thresholds and is offering firms a modification by consent in certain circumstances while it finishes its review. Firms can apply for the modification if they...
FCA publishes enforcement data
As part of the Annual Report for the 2023/24 year, the FCA has published data on how it has used its enforcement powers during the year. Key data includes: 98% of cases were opened against firms, as opposed to...
FCA publishes Annual Report
The FCA Annual Report and Accounts shows how the FCA has improved its operating statistics for authorisations over the past year. It now meets its statutory deadlines for determining applications in 98% of cases. Other...
FOS publishes quarterly data
FOS has published complaints data covering Q1 2024/5 (April – June 2024). Highlights include: over 76,000 new complaints – an increase of 70% from the same period last year; credit cards were the most...
Companies House plans ECCTA actions
The latest Companies House business plan includes details of its plans relating to ECCTA compliance over the next year. These include: prioritising removing inaccurate information on registers, including querying and...
FCA updates on operating metrics
The FCA quarterly authorisations metrics for the quarter to June 2024 shows 12 green, 4 amber and 1 red metric. The FCA says 98% of all applications were determined within the statutory deadline and that the red metric...
Asset manager to pay €250m to investors in high risk investments
The FCA has announced that H2O AM LLP is to pay €250m to investors who have been unable to access their funds for 4 years after the firm failed to carry out proper due diligence on certain introduced investments...
FSR Committee restarts and reopens inquiries
The House of Lords has reappointed the Financial Services Regulation Committee which had originally been created in 2024. The reappointed Committee will now continue the inquiries that were ongoing before the election...
BoE and PRA publish whistleblowing figures
The BoE and PRA have published their annual report on whistleblowing in the last year (to end March 2024). During that period they received 240 disclosures of which 228 could properly be categorised as protected...
FCA reports on secondary objective progress
The FCA has published the required metrics on the success of its secondary international competitiveness and growth objective. It has split the metrics into the themes of: authorisations and operational efficiency:...
Government responds on Special Resolution Regime enhancements
The Government has published its response following its consultation on enhancing the Special Resolution Regime and the Bank Resolution (Recapitalisation) Bill has now started its Parliamentary Passage. Respondents were...
BoE publishes Q2 Credit Conditions and Bank Liabilities Surveys
The BoE has published the results from its quarterly survey of banks and building societies looking at credit conditions in the quarter to the end of May 2024. As usual, the survey covers: secured and unsecured lending...
SME banking 2002 undertaking report
The CMA has published the 2023 audit report into whether 8 UK banks are complying with undertakings they gave in 2002 not to bundle loans and accounts for SMEs. The 8 banks currently subject to the undertakings have...
BoE updates on data and analytics strategy
The BoE has provided an update on its data and analytics strategy, aimed at making it easy for everyone at the BoE to work with and analyse data which should lead to many benefits including more effective decision...
Labour manifesto proposes Regulatory Innovation Office
Part of Labour’s manifesto proposes a new Regulatory Innovation Office, which will bring together existing functions to help regulators better deal with the development of new technologies, specifically AI. It...
FOS confirms proactively settled complaints to continue
The FOS has confirmed that the trial of the “proactive settlement” system that allows firms to offer to settle complaints before a full FOS investigation has worked well, and will continue. It has, though...
City of London Corporation looks at AI and the workforce
The City of London Corporation and KPMG have published a report looking at the expected increases in demand for and productivity resulting from the use of AI in financial and professional services. The report says there...
FCA speaks on investment management
Nikhil Rathi has spoken on the importance of the UK keeping its leading position in global asset management. He discussed current international initiatives such as: liquidity risk management, particularly for open ended...
UK Finance publishes financial services manifesto
UK Finance has set out what it considers should be the next government’s key financial services priorities. These include: reviewing personal savings allowances; focus on financial education through the schools...
UK Finance calls for help for abuse survivors
UK Finance has published a report looking at the problems that victim-survivors of economic and financial abuse face when they try to regain financial independence. The report notes the 2021 Financial Abuse Code, which...
NAO reports on pensions dashboard delay
The National Audit Office has published a report that looks at why the pensions dashboard programme introduction suffered delays. One key cause it identified is shortage of digital skills. The final connection deadline...
Treasury Committee publishes enforcement proposal correspondence
The Treasury Committee has published a further set of correspondence with the FCA on the FCA proposals to publicise enforcement investigations, and the Financial Services Regulation Committee formally announced its...
Parliament to look at regulatory international competitiveness
The Financial Services Regulation Committee is starting an inquiry into the PRA and FCA’s secondary international competitiveness and growth objective. Among the issues it wants to explore are: the balance between...
BoE looks at AI and financial stability
Jonathan Hall of the FPC has spoken on whether increasing use of AI models could have a negative impact on financial stability. He sees two key risks: that deep trading agents could lead to a brittle and highly...
FCA and Gambling Commission update MoU
The FCA has published its updated MoU with the Gambling Commission. Among other things, the MoU sets out that the Gambling Commission regulated commercial gambling apart from spread betting.
Industry calls for intervention on FCA enforcement proposals
16 financial services trade associations, including UK Finance, the ABI, TheCityUK and PIFMA, have written to the Chancellor asking him to intervene over the FCA’s proposals to publicise enforcement investigations...
PRA updates on insurance regulatory returns
The PRA has updated its guidance on regulatory returns it requires from insurers. The page confirms that all reports should be submitted electronically, and provides links to the insurance taxonomy and a filing manual.
FCA responds on enforcement proposal criticism
The FCA has responded to the House of Lords’ Financial Services Regulation Committee’s letter that criticised the FCA’s proposal to name firms it was to investigate and asked for justification of its...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
Lords asks for FCA justification of enforcement proposals
The House of Lords Financial Services Regulation Committee has written to the FCA making several criticisms of its proposals to name firms under investigation. It is particularly critical that the paper explicitly rules...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
BoE speaks on role of private equity
Nathanael Benjamin of the BoE has spoken on the role of the private equity market, focusing on its key role in financing companies but looking also about safe and sustainable growth. Key points from his speech included:...
FCA highlights common failings in asset management applications
The FCA has provided a list of common errors asset managers are making in applications for authorisation. For context, in the year to 1 April 2024, 18% of applications were withdrawn as a result of the FCA’s...
PRA consults on fees
PRA is consulting on its fees and levies for 2024/25. Key elements of the proposals are: funding an overall increase in the budgeted cost for ongoing regulatory activities of 7%; dealing with an increase of 11% in the...
PRA publishes Business Plan 2024-5
The PRA has published its 2024/25 Business Plan. The plan focuses on: maintaining and building on the safety and soundness of the banking and insurance sectors and ensuring continuing resilience; being at the forefront...
FCA publishes financial resilience survey results
The FCA has published the results of its October 2023 Financial Resilience Survey. The survey had been issued 11 times in the October 2023 form but has now been replaced with a new format. The FCA has released the data...
FOS publishes plans and budget for next phase
The FOS has published its finalised Plans and Budget for the next phase of its transformation. It expects to receive a greater number of complaints in the coming year, and anticipates 210,000 complaints in its caseload...
BoE consults on enforcement changes
The BoE, including the PRA, is consulting on proposed changes to its SOPs and procedures for enforcement, following the additional responsibilities FSMA 2023 has placed on it. The changes relate to enforcement policy...
FPC March update
The BoE has published: the FPC’s financial policy summary and record for March: this concludes that conditions remain challenging and asset prices are stretched with the risk of a sharp correction in a broad range...
PSR speaks on the future
Chris Hemsley, speaking at the Pay360 conference, looked at how far payments innovation has come this century, and spoke of some challenges for the future. He focused on: the important role of a Payment System Operator...
PRA to revamp Rulebook website
The PRA is to launch a new website for its Rulebook on 10 April. The site url will remain the same, but the new site is intended to be more engaging and user friendly. New features will include easier links to policy...
FCA publishes Business Plan 2024/2025
The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...
Budget reverses HNWI update and ups Economic Crime Levy
Among the announcements relevant to regulated financial services in Jeremy Hunt’s budget are: a bizarre U-turn to reinstate the previous eligibility criteria for high net worth and sophisticated investors, when...
FCA speaks on “future-fit” workforce
Emily Shepperd of FCA has spoken on what firms need to be doing to make sure they get and keep the right talent which can respond to new events and different methods of working. She looked at the need to unlock talent...
Government defends Edinburgh Reform progress
The Government has responded to criticism from the Treasury Committee on how the Edinburgh Reforms are progressing. Following the Government’s report in December (a year after it announced the reforms) that it had...
FCA speaks to EU on global cooperation
Ashley Alder, FCA Chair, has spoken at the UK Mission to the EU on the importance of regulatory cooperation and open markets, and the relationship the UK now hopes to build with the EU under the 2023 MoU. He said that...
FCA Panels respond on FOS 2024 Plans and Budget
FCA Practitioner Panel and FCA Smaller Business Practitioner Panel have responded to FOS 2024/25 Plans and Budget and the consultation on charging professional representatives. The Practitioner Panel: supports the £100...
Vida FatemiNo firm decision on digital pound
The BoE and Treasury response on the consultation paper on the possible introduction of a digital pound say that there has been no final decision on whether the UK will introduce a CBDC. The regulators will continue...
TheCityUK shows strength of UK financial services sector
TheCityUK’s annual report on the UK’s position as an international financial centre says that exports relative to imports of financial and related professional services shows how competitive UK industry is...
FSCS updates on budget and expenses
FSCS expects to end the financial year below its approved management expenses budget. It has proposed a slightly increased management expenses budget for 2024/25, of £103.1m and explains that FCA and PRA are consulting...
Treasury makes Digital Sandbox Regulations
Treasury has made Regulations under FSMA 2023 to create the digital securities sandbox under which firms can apply for a place to test developing technology to help FMI activities. The sandbox is open to UK Recognised...
Government revokes more retained EU laws
The fourth Commencement Order of FSMA 2023 brings into force various provisions of the Act, and revokes a long list of retained EU legislation from 1 January 2024. Other provisions that come into force on that date...
Different perspectives on Edinburgh Reforms progress
While the Treasury has heralded the progress made since the Edinburgh Reforms were announced a year ago, the Treasury Committee is less pleased. The Economic Secretary to the Treasury, Bim Afolami, focussed on the...
FCA consults on access to cash
FCA is using its powers under FSMA 2023 to consult on new rules to require designated banks and building societies to assess gaps in access to cash and act to fill them. FCA says that, currently, over 95% of people in...
Financial Stability report shows same challenges remain
The December 2023 Financial Stability Report shows little change from the previous version. Conditions remain challenging and households and businesses continue to face higher borrowing costs. However, the banking...
FOS consults on plans and budget 2024/25
FOS is consulting on its proposed plans and budget for 2024/25. Questions include: what volume and trends should FOS be expecting in banking and consumer credit, insurance, investments and pensions, SME volumes, CMC...
UK Finance reports on impact of AI in financial services
UK Finance has published a report that looks at the uses of AI in the financial sector. The report covers: how and where AI is being deployed; where there is promise for the future; how to make more of opportunities;...
Government publishes PRIIPs replacement legislation
The Government has published draft legislation that will replace the PRIIPs Regulation and create a new UK retail disclosure framework for “consumer composite investments” (CCIs). The initiative is part of...
Treasury feeds back on Digital Securities Sandbox
Treasury has published the outcome to the consultation on a digital securities sandbox. The sandbox will be operated by BoE and FCA and is intended to help facilitate the use of digital asset technology in UK financial...
Treasury publishes Future of Payments Review
Treasury has published its Future of Payments Review, commissioned from Joe Garner, as part of the Autumn Statement package. The review asked: what are the most important consumer retail payment journeys both today and...
FCA consults on fee policy
FCA is consulting on its policy proposals for the 2024/5 fee year. For application fees, FCA did not increase these fees last year, but now feels it is appropriate to do so as its costs for processing applications are...
FCA speaks on importance of culture
Sheree Howard, FCA’s Executive Director of Risk and Compliance Oversight spoke about the importance of the execution of a plan being as vital as its ideology and purpose. She said firms must look at whether they...
BoE launches new stress test phase
BoE has published the latest phase of the System Wide Exploratory Scenario, which it first launched in June. The SWES is intended to help BoE understand the risks to and from non-bank financial institutions, and the...
FSCS updates on levy and forecast
FSCS has published its latest “Outlook” newsletter. FSCS does not expect to request any additional levies from firms during the current financial year and will carry forward any surpluses in any class to...
FCA updates on fin prom data
FCA has published data for the quarter ending September 2023 on its actions against breaches of financial promotion rules and referrals and investigations into unauthorised activity. During the period: FCA actions...
FCA writes to RemCo chairs
FCA has written a “Dear Chair” letter to the chairs of Remuneration Committees of proportionality level one dual regulated firms. The letter: stresses that in times of continuing cost of living pressures...
Regulators feed back on AI
PRA and FCA have published a feedback statement following their and BoE’s discussion paper on AI and machine learning. The paper asked for views on the role supervisors should play in supporting the safe and...
Treasury responds on Edinburgh Reforms progress
Treasury has responded to a request from the Treasury Committee for an update on delivering the Edinburgh Reforms. It notes: reform of the ring-fencing regime: this is in progress with draft legislation being published...
“Sexism in the City” evidence published
The Parliamentary Committee looking into “Sexism in the City” has published 46 pieces of written evidence it received. The evidence from FCA highlighted: more diverse and inclusive firms can support better...
FCA and CoLC launch APP scam project tool
FCA and the City of London Corporation have launched the promised APP synthetic dataset which is designed to develop products and services to minimise fraud. The dataset will allow analysis of rare patterns of behaviour...
FCA speaks on encouraging investment
Sarah Pritchard has spoken on the role of regulation in encouraging investment in the City. She noted that proportionate regulation and a debate around risk appetite are key considerations in the review of financial...
FCA publishes authorisations metrics Q1 2023/24
FCA has published its authorisations metrics for the quarter ended June 2023. FCA currently has: 2 red categories, relating to authorisations of EMIs and PIs 6 amber categories, relating to SMCR and AR related approved...
FCA publishes Annual Report and Accounts 2022/23
The FCA has published its Annual Report and Accounts 2022/23. The Report sets out the FCA’s progress and key achievements during the first year of implementing their three year strategy. The report highlights what...
FIN. TeamOmbudsman News updates FOS initiatives
The latest edition of Ombudsman News highlights: what FOS is doing to prepare for the Consumer Duty; the annual complaints data from 2022/3; its items on hybrid scams and escape of water in unoccupied properties...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
PRA publishes authorisations performance report
PRA’s report on its authorisations performance during Q1 2023/24 shows delays in applications for new authorisations – although these are based only 5 cases during the period, PRA achieved its standard in 4...
FCA speaks on cultural evolution
Emily Shepperd of FCA spoke on how culture needs to change to meet expectations. She focussed on how generational changes can fundamentally change culture. She said it is now critical to find a common path, for leaders...
LSB speaks on digital evolution and inclusivity
Anna Roughley of the LSB has spoken on the evolution of digital and technical services in the context of providing a consumer-focussed outcome for lending. First she noted that, while digital banking is ideal for many...
Lords passes FSM Bill
The FSM Bill has had its third reading in the Lords, and has been passed and returned to the Commons as amended in the Lords. The Commons now needs to consider the Lords’ amendments, and, if all is agreed, the...
FSM Bill: Lords Report stage day 3
Day 3 of the debate on the FSM Bill at Lords Report stage included: a debate on forest risk commodities, which was approved on a vote; a proposal for a number of amendments relating to liability of PSPs for fraudulent...
FSMB Lords Report stage day 2
Day 2 of the Report stage for the FSM Bill took place on 8 June. In the first session, the Lords debated clauses including those on: reporting requirements under the competitiveness and growth objective, a Government...
Lords complete first day of FSM Bill Report stage
During the first day of Report stage in the House of Lords on the FSMB, the sessions debated key matters including: amendments in relation to the revocation of retained EU law to require meaningful Parliamentary...
JROC sets out open banking programme
The Joint Regulatory Oversight Committee has published its programme of work to take forward recommendations for the next phase of open banking. Its proposals include creating 2 regulator-led working groups to develop...
FCA publishes authorisations metrics Q4 2022/23
FCA has published its authorisations metrics for the quarter ended March 2023. The metrics show that FCA is continuing to make progress towards meeting its targets, and that it has improved on the significant delays...