Emma RadmoreFCA has published a suite of portfolio letters for the insurance markets, off the back of its value measures data report, but covering its wider supervisory priorities. The letters note the importance of the insurance...
Category - Supervision
Q1 complaints stats show increase in motor and building issues
FOS has published its latest quarterly complaints data. The data covers April – June 2023. All the most complained-about products have seen year on year increases, and the most complained about product remains...
FCA finds issues in later-life mortgage business
FCA has reviewed the promotion and advice process of firms in the later-life mortgage sector and has found a number of problems. The nature of the product means they are often sold to customers at higher risk of being...
PRA updates on insurers in financial difficulties
PRA has published feedback on its consultation on dealing with insurers in financial difficulties and has published amended, updated and new Rulebook materials. There is a new Part of the rules on Insurers in Financial...
FCA finalises fin prom gateway policy
FCA has published its final policy position on implementing the gateway for firms that wish to approve financial promotions. It has now set out its final approach on: how it will assess applicants at the gateway and the...
FCA reminds firms of incoming crypto rules
FCA has set out its expectations in advance of the rules on advertising of crypto products coming into force on 8 October. The rules are specifically designed to make marketing clearer and more accurate and to ban...
Consumer Panel publishes review on personal data use
The Financial Services Consumer Panel has published a paper looking at whether firms’ use of personal data is leading to bias and detriment for consumers with protected characteristics. It concludes that most...
FCA publishes new resource on application refusals
FCA has published a new page on its website explaining its process for refusing applications, and what happens if firms either withdraw their applications or want to appeal a refusal decision.
Treasury makes fin prom approval permission exemptions
The FSMA (Exemptions from Financial Promotion General Requirement) Regulations 2023 take effect from 27 September, and permit authorised firms to approve promotions of unauthorised firms without holding the newly...
FCA to analyse lenders’ fair value assessments
The FCA has announced it will analyse the fair value assessments provided to it by 9 banks and building societies. This follows the introduction of the Consumer Duty and the 14-point action plan published by FCA in July...
Lucy HadrillFCA announces Direct Line pricing review
Direct Line Group has agreed to carry out a review after it found it had charged some existing home and motor customers more for their renewal than would have been charged to new customers. The review will identify all...
FCA launches webpage on supporting customers with pension transfers
The FCA has published a new webpage which sets out information and guidance for firms on how to support vulnerable customers when providing pension transfer advice. Firms should be alert to potential indicators of...
FCA cancels unused permissions
The FCA has used its power to cancel consumer credit permissions which were not used for 2 years. Mr Roche was authorised by the FCA in January 2015 and held consumer credit permissions of: agreeing to carry on a...
FCA reminds firms to keep their details up to date
The FCA has updated its website to remind dual regulated firms that, from 1 December 2023, they must check, amend (if required) and confirm their firm details at least annually via Connect. From this date, firms that...
FCA launches webpage on the Wider Implications Framework
The FCA has published updated terms of reference for the Wider Implications Framework. The framework provides a structure for its members to collaborate on issues that could have a wide-reaching effect across the...
Parliament issues consumer financial services FAQs
The House of Commons Library has published a research briefing setting out a list of FAQs relating to banking services, mortgages, investments and credit scores.
Gibraltar regime rulemaking powers to take effect
Provisions of the Financial Services Act 2021 that allow the regulators to make laws and rule implementing the upcoming Gibraltar authorisation regime will take effect from 1 September 2023.
FCA issues customer guidance after broker enters administration
FCA has issued Q&A for customers after Verex Insurance Services, a firm which sold motor insurance products, entered administration alongside one of its ARs . The guidance explains to concerned customers that...
Ofgem fines Morgan Stanley over business Whatsapps
Ofgem has fined Morgan Stanley & Co International nearly £5.5m after wholesale energy traders made communications on their private mobile Whatsapp channels, which meant the firm did not record and keep records of...
BoE publishes policy statement on wholesale cash distribution supervision
BoE has published a statement of policy and the responses to a consultation on its supervisory approach to market oversight for wholesale cash distribution (WCD) under its new powers under Part 5A FSMA 2023. BoE’s...
Laura WilesTreasury and FCA confirm approach on access to cash rules
Treasury has published a cash access policy statement setting out the Government’s approach to access to cash deposit and withdrawal services for UK current accounts. The aim of the statement is to inform...
FCA sets out expectations for travel rule compliance
FCA has set out its expectations for UK cryptoasset businesses subject to the so-called ‘travel rule’, which will require them to collect, verify and share information about cryptoasset transfers from 1...
FCA invites PEPs to share their experiences with financial services firms
FCA is currently reviewing how financial services firms have applied the PEPs regime and whether changes to its guidance is required. It has now written a letter to PEPs directly inviting them to share their...
Ombudsman News highlights current hot topics
The latest edition of FOS’ Ombudsman News highlights: the Consumer Duty: now the Duty is in force, FOS will be speaking to firms to assess the complaints firms are receiving; FOS’ updated guidance for firms...
FCA and COLC to hold APP data launch briefing
FCA and the City of London Corporation will hold an event on 27 September to launch FCA’s APP fraud synthetic dataset. At the event, FCA will introduce the dataset and share details of the engagement behind it...
FCA warns consumers on loan fee fraud
FCA has issued a consumer warning to help customers avoid loan fee fraud as they look to cover the costs of summer spending. This type of fraud, which involves customers paying for a loan they never receive, typically...
FCA asks banks for account closure information
FCA has followed up its announcement of its upcoming investigation of account closures with a request to the largest banks, building societies and payment firms to provide it, by 25 August, with information on: the...
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 letter on freedom of expression and provision of banking services
FCA has published a letter to HM Treasury on freedom of expression and the provision of banking services, in response to increased public concern about payment accounts being closed without fair justification. The...
FCA publishes Q2 fin proms data
FCA has published its financial promotions data for Q2 2023, which showed that 1507 promotions were amended or withdrawn as a result of FCA intervention. As with the data for Q1, the majority of cases related to retail...
FCA clarifies Advice Guidance Boundary Review
FCA has issued an update on how it and the Treasury will carry out their joint review of the boundary between advice and guidance. Industry feedback has made it clear that consumer needs for advice are diverse, entail...
HM Treasury publishes response to consultation on Introducing an Insurer Resolution Regime
HM Treasury has published its response to the feedback received from its January 2023 consultation paper titled “Introducing an Insurer Resolution Regime”. The consultation sought feedback on proposals to...
Jasmine ZacherGovernment consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
BoE and FCA to move forward on data transformation
BoE and FCA have considered the recommendations of the Data Standards Committee on how to transform data collection, and have published their response. The regulators will now look to take forward all the...
PRA updates approach guides
PRA has published updated versions of its “approach” documents setting out how it supervises the banking and insurance sectors, updated to include changes made by the FSMA 2023. The new documents replace the...
Consumer Duty takes effect
The Consumer Duty has taken effect for all on-sale products. FCA has reminded consumers of the protections it gives them.
Read our summary of what FCA is expecting from firms.
FCA publishes cash savings action plan
FCA has published a 14 point action plan for banks and building societies. The plan aims to ensure: that firms pass on interest rate rises to savers appropriately; good and effective communication with customers; and...
Court holds care home investment schemes to be CIS and director personally liable
The judgment on several preliminary issues in the case brought by FCA against Robin Forster, Fortem Global Limited and Richard Tasker has been published. The trial considered only issues arising out of Mr...
Economic Affairs Committee questions BoE Governor on additional responsibilities under FSMA 2023
The Economic Affairs Committee has published a letter to Andrew Bailey, Governor of BoE, on its new responsibilities under FSMA 2023. The Committee’s ongoing inquiry into the operational independence of BoE has...
FCA confirms further temporary transaction reporting measures
FCA is implementing further temporary measures for the reporting of certain fields in MiFIR transaction reports. In January 2022, temporary measures were put in place for the reporting of the short selling indicator...
PRA consults on updating UKTS identification of global systemically important institutions
In line with the BCBS framework, PRA is consulting on updates to the UKTS methodology for identifying and setting a capital buffer for global systemically important institutions. The changes to the UKTS would include:...
FCA makes new rules
FCA’s latest Handbook Notice confirms: changes to ICOBS to reduce the impact of financial difficulties by enabling customers to maintain an appropriate level of insurance; amendments to FCA’s Glossary and...
Regulators publish revised Complaints Scheme
Following a joint consultation between FCA, PRA and BoE in July 2020, the regulators have set out final changes to be made to the Complaints Scheme. The revised Complaints Scheme and policy statement was initially due...
PRA consults on rules replacing retained Securitisation Regulation
PRA is consulting on proposed rules to replace retained EU law requirements on PRA-authorised persons contained in provisions of the Securitisation Regulation. Following the enactment of FSMA 2023, Treasury plans that...
FSB publishes statement on continuity of access to FMI services for firms in resolution
Following its October 2022 survey of banks, FMI intermediaries and FMIs about their experiences with its resolution planning framework, FSB has published a statement on continuity of access to FMI services for firms in...
FOS publishes Independent Assessor’s annual report for 2022/23
The Independent Assessor’s report confirms that during the financial year 2022/23, FOS resolved 209,491 cases, with 1.8% of those customers lodging complaints about the service. Complaints reduced by 1.9% since...
ICO writes to banks on customer information
Following the Nigel Farage account issue, the ICO has reminded banks of their duty of confidentiality. It noted that, while this case is “out of the ordinary” proper processes and procedures must still be...
Market Watch considers transaction reporting issues
FCA’s latest edition of Market Watch explores transaction reporting issues, and highlights its concerns with firms not paying sufficient attention to its warnings on the importance of reporting transactions in a...
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...
FCA updates perimeter report
The FCA has updated its perimeter report setting out the scope of what it does and does not regulate. The report describes specific issues the FCA perceives around its regulatory perimeter, and the action it is taking...
FCA to launch Digital Sandbox permanently
Following successful pilots, FCA’s Digital Sandbox will be made permanently available on 1 August 2023. Until now, the platform has only been available on a temporary basis to institutions participating in FCA...
Government rejects Treasury Committee’s suggestion to regulate retail crypto trading as gambling
The Treasury Committee has published the Government’s response to its report on Regulating Crypto. The report had concluded that consumer trading in unbacked cryptocurrencies more closely resembles gambling than a...
FCA publishes letter on establishing CBA Panel
In a letter to the Treasury Committee, FCA has set out its work on establishing the new CBA panel and publishing a statement of policy on its approach to CBA, as required by FSMA 2023. In June, the Committee sent a...
PRA consults on proportionality in Pillar 3 remuneration disclosures
PRA is consulting on proposals to enhance proportionality of Pillar 3 remuneration disclosure requirements, by reducing the number of disclosures required for many smaller banks and building societies. This consultation...
FCA and ICO confirm expectations for communications to savings customers
FCA and ICO have published a joint letter to UK Finance and the Building Societies Association, confirming that savings providers can inform their customers of the best interest rates available to them, even where...
Banks and FCA respond to Treasury on further savings rates queries
Early in July, the Treasury Committee progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. The banks and FCA...
PRA releases statement on the recalculation of TMTP
The PRA has released its statement to insurance firms inviting them to recalculate the Transitional Measure on Technical Provisions (TMTP). In accordance with Supervisory Statement (SS) 6/16 ‘Maintenance of the...
Regulatory Initiatives Forum provides update following FSMA 2023 Royal Assent
The co-chairs of the Financial Services Regulatory Initiatives Forum have published an update following the Royal Assent of FSMA 2023. Given its significance for the financial services regulatory landscape, the Forum...
FSB publishes global regulatory framework for crypto-asset activities
FSB has published its finalised regulatory framework for the supervision of crypto-asset activities to promote the comprehensiveness and international consistency of regulatory and supervisory approaches globally. FSB...
Treasury Committee launches inquiry into barriers faced by women in finance
The Treasury Committee has launched an inquiry into the barriers faced by women in financial services – Sexism in the City. The Committee asks for evidence on the follow topics: Progress made in removing the...
FCA consults on how financial promotions requirements apply to social media
FCA is consulting on guidance on how its financial promotion requirements apply to promotions made on social media. Financial promotion rules are designed to be technology-neutral and apply to all channels used to...
FSB updates roadmap for addressing climate-related financial risks
In July 2021, FSB published a comprehensive roadmap to address climate-related financial risks. It has now delivered a progress report on the roadmap as required by the G20. Physical risks and a disorderly transition to...
Financial Regulator Complaints Commissioner publishes annual report
The Financial Regulator Complaints Commissioner has published its annual report for 2022/23 reviewing how the UK financial services regulators consider complaints. This year, 421 cases were dealt with by the...
FCA launches new webpage on fee rate movement 2023/24
The FCA has published its new webpage on its fee rate movement for 2023/24. The new webpage contains a table which explains the changes in fee rates since last year. The FCA notes that its AFR has increased in 2023/24...
FPC outlines approach to setting countercyclical capital buffer
FPC has published its approach to setting the countercyclical capital buffer (CCyB). Its approach is based on six core principles: Ensuring that the UK banking system is better able to absorb shocks without an...
BoE 2022/23 Stress Test results show resilience in UK banks
BoE has published the results of its 2022/23 stress test of the UK banking system. The test scenario was more severe than the 2007-08 financial crisis and substantially more severe than the current macroeconomic outlook...
FCA speaks on regulatory approach to Big Tech and AI
Nikhil Rathi, Chief Executive at FCA, has delivered a speech at The Economist on FCA’s emerging regulatory approach to Big Tech and AI. It notes that with the “right guardrails in place”, AI can offer...
FCA launches website on reporting AR data
The FCA has published a new webpage containing information for principal firms on how to report Appointed Representatives data. The webpage, which will be kept up to date, contains information for firms on: why the FCA...
Treasury publishes CCA reform plans
Treasury has published the outcome of its consultation on reforming the Consumer Credit Act 1974 (CCA). The Government’s intention is that reform will facilitate innovation in the credit sector and increase...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
Treasury publishes new PARs customer information requirements
Treasury has published the outcome of its consultation on customer information requirements in the Payment Accounts Regulations (PARs) 2015. It confirms the government’s intention to revoke Part 2 and Schedules 1...
FCA launches new webpage on regulatory hosting services
The FCA has published a new webpage containing information for principal firms operating as regulatory hosts. Such firms usually carry out minimal or no regulated activity. Rather, it oversees the use of its permissions...
Treasury revokes PRIIPs and outlines new UK retail disclosure regime
Treasury has published the outcome of its consultation on revoking the PRIIPs Regulation and introducing a more suitable alternative. The PRIIPs Regulation had been widely criticised due to the misleading information it...
FSB holds Frankfurt plenary
The FSB Plenary met in Frankfurt to discuss preliminary lessons learned from the recent banking sector turmoil and the outlook for global financial stability. The Plenary also agreed its deliverables to the July G20...
BoE and FCA deliver on Transforming Data Collection phase one commitments
BoE and FCA have published an update on their joint Transforming Data Collection (TDC) programme, concerning: Delivery of their phase one recommendations; Progress of the phase two use cases; The Data Standards Review;...
BCBS consults on core principles for banking supervision
BCBS is consulting on revisions to its Core principles for effective banking supervision (Core Principles). In its April 2022 review, BCBS sought to reflect supervisory and regulatory developments, structural changes in...
Ombudsman 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...
FCA warns cryptoasset firms of financial promotion regime expansion
FCA has published a letter to cryptoasset firms marketing to UK consumers on complying with the expanded financial promotions regime set to apply from 8 October 2023. The letter comes after the FSM Bill received Royal...
FCA sets fees and levies for 2023/24
FCA has published its regulatory fee and levy rates for 2023/24. The regulator is freezing minimum fees, flat rate fees and application fees in an effort to encourage competition and support firms facing inflationary...
FCA highlights good and poor practice in general insurance market for customers in financial difficulty
FCA has published examples of good and poor practice arising out of its review of how the general insurance market supports customers in financial difficulty and handles claims. For customers whose policies had been...
Call for evidence on Treasury’s SME finance review
The Treasury Committee has issued a call for evidence as part of its inquiry into the financing of SMEs. On industry issues, the Committee asks: What are the key challenges SMEs face when seeking finance? Through which...
Treasury Committee probes further on savings rates
The Treasury Committee has further progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. In...
FCA publishes insurance guidance on supporting customers in financial difficulty
Following its January consultation, FCA has published finalised insurance guidance on supporting customers in financial difficulty. In November 2020, FCA published guidance for insurance and premium finance firms to...
PRA publishes second policy statement on depositor protection rules
Following its September 2022 consultation, PRA has published a second policy statement on updates to its depositor protection (DP) rules. The first policy statement, published 31 March 2023, concerned changes to the so...
FCA implements Mortgage Charter rules
FCA has published a policy statement setting out changes to the MCOB sourcebook to support the implementation of the Government’s Mortgage Charter. The rule changes take effect immediately from 30 June, and enable...
PRA consults on rule review
PRA is consulting on its proposed approach to reviewing its Rulebook, as required by the FSM Act. Rule review is a well-established part of PRA’s existing approach to policy making, and consists of four key steps...
PRA sets fees and levies for 2023/24
Following its April consultation, PRA has published a policy statement confirming the fees and levies payable for the 2023/24 fee year. Respondents welcomed the reduction year-on-year to the Annual Funding Requirement...
Regulators call on firms to support customers amid cost of living crisis
FCA, Ofgem, Ofcom and Ofwat have published a joint Dear CEO letter calling on firms to support customers struggling with the increased cost of living and keep prices fair. The letter notes FCA’s Financial Lives...
FCA outlines concerns with sustainability-linked loans market
FCA has published a letter to heads of ESG and sustainable finance, setting out its review of the sustainability-linked loans (SLL) market. Interest rates in SLLs are linked to meeting certain agreed sustainability...
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...
Government and regulators agree consumer support action plan
Chancellor Jeremy Hunt has chaired a roundtable with CEOs from CMA, FCA, Ofcom, Ofgem and Ofwat as part of the Government’s plan to halve inflation this year and return to the 2% target. Treasury expects that the...
FCA speaks on innovation in financial services
Sheldon Mills, Executive Director of Consumers and Competition at FCA, has delivered a speech at the CityUK Annual Conference on how innovation and regulation in financial services can drive the UK’s economic...
FCA updates on Consumer Duty – one month to go!
FCA is pleased with the preparations many firms have made for the Consumer Duty, and has highlighted 10 questions it thinks firms could be usefully asking themselves. The key questions include: whether a firm is...
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...
Commons reconsiders FSM Bill
On 26 June the House of Commons considered the version of the FSM Bill returned to it from the House of Lords. It published its views on aspects of the Bill where it disagrees with Lords changes. While there was...
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...
PRA publishes insights from thematic review addressing insurance claims inflation
The PRA has published its follow up letter to Chief Actuaries of general insurance firms and Lloyd’s Managing Agents regulated by the PRA. The letter provides insights from the PRA’s thematic review of...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
BoE updates on CHAPS APP plans
The Deputy Governor of BoE has written to the Treasury sub-committee on Financial Regulation to update on progress on protection from APP fraud within the CHAPS system. The letter confirms the BoE’s intention to...
BoE speaks on enforcement approach
Oliver Dearie has spoken on the rationale behind the proposed changes to the way in which BoE is looking to change its approach to enforcement. He said the proposals reflect lessons learned over the past decade and...
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...
BoE launches system-wide exploratory scenario
BoE has launched its first system-wide exploratory scenario exercise. The exercise will include banks, insurers, CCPs and a variety of funds and will look to see how all these market players behave in stressed market...