FIN.

Category - Supervision

FCA updates on motor finance complaints

Following the announcement of its review into motor finance complaints, the FCA has published a statement on progress made to date. It says that firms have engaged with the FCA constructively but many are struggling to...

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 cost of living report

The FCA has published its Financial Lives report on the increased cost of living for adults across the UK. The report is based on findings from the FCA’s recontact survey conducted with 3,450 individuals from...

FCA consults on fees

The FCA has published its consultation on fees and levies for 2024/25. After the general fee freeze last year, key proposals for the next year include: increasing minimum and flat rate fees in line with the 8.75%...

FCA updates perimeter report

The FCA has updated its Perimeter Report on its website.  It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...

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,ooo complaints in its caseload...

FCA updates on Attestations

The FCA has updated its website page on attestations. The page explains the situations in which the FCA will normally ask for attestations, and is updated quarterly with the numbers of attestations. For the quarter to...

FCA makes minor rule changes

The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...

Regulators update on payment systems MoU

The signatory regulators to a joint-authority Memorandum of Understanding on co-operation in relation to payment systems in the UK have carried out their 8th annual review of how well the MoU is working. The BoE, FCA...

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...

HNWI/SCSI Fin Prom limits change again

We’ve written an article explaining the effects of the Budget reversal of the January increase on limits that high net worth and self-certified sophisticated investors need to meet to make use of financial...

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...

FCA updates social media guidance

The FCA has published its updated guidance on social media advertising.  The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...

FCA updates on PEMC review

The FCA has announced that it has largely completed its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance. It intends to publish the...

FCA publishes Mortgage Charter uptake data

In June 2023, the FCA introduced new rules to support the Government’s Mortgage Charter’s commitments, including providing for firms to allow customers to make reduced capital payments for up to 6 months, or...

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 updates approach to international firms

The FCA has published an updated version of its approach to international firms. Its guidance applies equally to firms applying for authorisation and those that are already authorised. It does not cover payment and e...

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...

Regulators warn firms on debt collection

The FCA has combined with regulators Ofgem, Ofwat and Ofcom to warn firms about debt collection practices and set out the regulators’ expectations across markets. As many consumers continue to experience cost of...

FCA speech: investing in outcomes

Nikhil Rathi, Chief Executive of the FCA, has delivered a speech on the FCA’s broad approach to topics in which investors have recently been expressing significant interest. The speech highlighted the following as...

FCA updates whistleblowing data

FCA has released data showing the number of new whistleblowing reports received, mainly through its online reporting function, in Q3 and Q4 of 2023. Between July and September 2023: There were 280 new whistleblowing...

Treasury announces National Payments Vision

Following the publication of the Future of Payments Review, Treasury has accepted the recommendation to publish a National Payments Vision. The Vision will constitute the government’s full response to the Future...

FCA updates on skilled persons reports

The latest statistics for skilled persons reports FCA commissioned in Q3 2023/24 show: 24 reports in total 7 related to the retail banking and payments sector, 6 to retail investments, 5 to wholesale markets and 4 to...

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...

FCA publishes quarterly consultation

The FCA has published its regular quarterly consultation on miscellaneous amendments to its Handbook. The proposed amendments include a new Statement of Policy setting out the FCA’s approach to using the...

New FCA webpage on wind-down plans

The FCA has launched a new webpage which sets out when and how firms should prepare a wind-down plan. A typical wind-down plan should include: Scenarios – a firm should identify all the scenarios that could lead to it...

FCA issues supervisory notice under PSRs

FCA has published a First Supervisory Notice against an API (EPayPro), setting out its decision to very the firm’s authorisation so as to restrict it from charging a “compliance” or any other fee that...

FCA updates on interest-only mortgage work

FCA is working with an Industry Working Group of 12 mortgage lenders and administrators on a review of FCA’s current guidance on interest-only mortgages. There were under 1 million interest-only and part-and-part...

PRA confirms result of rule review process

PRA has published its feedback following its consultation on its how it reviews its rules. None of the 13 respondents raised any major concern but made some suggestions for improvement, largely around better engagement...

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 updates on Consumer Duty implementation

The FCA has published the findings of its review of firms’ Consumer Duty implementation. The findings are split into six key areas and include examples of good practice and areas for improvement. Good practice –...

FCA intervenes in 10,000 ads in 2023

FCA has published its financial promotions data for the last quarter of 2023 and the entire past year. It has: caused over 10,000 promotions to be withdrawn or changed in 2023 (a 17% increase on the previous year);...

FCA improves service metrics

FCA’s latest set of authorisations metrics, covering the quarter to December 2023, shows 9 green metrics, 6 amber and no red. It determined 97.8% of applications overall within the statutory deadlines. No areas...

Firms pause sales of GAP insurance

At FCA’s request, multiple insurance firms have agreed to pause sales of GAP insurance. These firms account for 80% of the GAP market. FCA is concerned that GAP insurance is failing to provide fair value to...

Fin proms gateway takes effect

The FCA’s financial promotions gateway has come into force. From 7 February 2024, all authorised persons that want to approve fin proms for unauthorised persons will need FCA permission to do so (subject to...

FCA speech: the UK listing regime

Clare Cole, Director of Market Oversight at FCA, has delivered a speech about developments since the UK Listing Review and the next steps for reform. Highlights include: In December, FCA set out detailed proposals for...

Changes to FPO exemptions

Changes to the exemptions for “business angel” investors took effect on 31 January.  Read our article on the changes for promotions to HNWIs and SCSIs.

PRA consults on approach to rule permissions

PRA has proposed a new Statement of Policy setting out its approach to the granting of rule permissions under s.138BA of FSMA – a new power for PRA to enable firms not to apply certain rules, or to apply them in a...

BoE updates enforcement approach

BoE has published its final policy and feedback to its consultation on its approach to enforcement. We covered the consultation here. The changes (including changes from the original consultation that BoE has made in...

PRA fines for deposit protection failings

PRA has fined 2 entities in the HSBC group £57m for long-lasting historic failure properly to implement its Depositor Protection Rules. The failings occurred in HSBC Bank plc (HBEU) between 2015 and 2022, and in HSBC UK...

FCA publishes TPR data

The FCA has published summary data on the firms that entered the TPR and on those which have successfully secured full UK authorisation: 1,191 solo-regulated firms entered the TPR, spanning 29 jurisdictions and covering...

FCA confirms rule updates

FCA’s latest Handbook Notice confirms rule changes its Board agreed in December, and the new motor finance complaints rules, as well as two changes agreed on 25 January. The two latest changes: update SUP 12.4...

PRA reviews ring-fencing rules

PRA has published a report setting out conclusions to its review of its ring-fencing rules. PRA looked at the intents of the ring-fencing regime, its statutory objectives, the legal ring-fencing requirements and...

No 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...

FCA social media guidance running late

FCA had initially planned to publish its guidance how its financial promotion requirements apply to promotions on social media before Christmas, but has updated its website to say it now plans to publish the finalised...

BoE responds on PRC remit

BoE Governor Andrew Bailey has written  to the Chancellor, updating last year’s response to the letter setting out the Chancellor’s recommendations to the Prudential Regulation Committee (PRC). The letter...

FCA speaks on consumer tech

Chief Executive of FCA, Nikhil Rathi, has spoken on how consumer-facing technology helps to keep consumer markets “honest”. The key highlights from his speech were: FCA must use and adapt existing regulatory...

BSA hopeful of update to 1986 Act

The Building Societies Association welcomed the upcoming 2nd reading of the Building Societies Act 1986 (Amendment) Bill which will take place on 19 January.  The Bill aims to put building societies on a level playing...

FCA sets expectations on crowdfunders

In two portfolio letters, FCA has set out its expectations for Loan-based Peer-to-Peer (P2P) Lending platforms and Investment-based crowdfunding platforms. It supervises both types of platform in the Consumer...

PRA consults on FSCS MELL 2024/25

PRA is consulting on the FSCS MELL for 2024/25. Under FSMA, PRA and FCA must set a limit for the total management expenses that the FSCS can levy on financial services firms. The MELL is the maximum amount that the FSCS...

FCA takes action on motor finance complaints

FCA is unhappy that motor finance firms are rejecting high numbers of consumer complaints about commission arrangements.  After FCA banned discretionary commission arrangements in 2021, many consumers complained and...

FCA updates on Rule Review Framework

FCA has published its finalised Rule Review Framework. FSMA 2023 requires FCA to set this framework, which applies to all its Handbook rules, and explains how FCA sets, measures and monitors the outcome of the rules. It...