Emma RadmoreThe PRA has published Dear CEO letters to international banks and designated investment firms, and UK deposit takers, setting out its supervision priorities for 2025. The need for robust governance, risk management and...
Category - Supervision
Laura Wiles
Karen Plumbley-JonesFCA publishes summary grounds of intervention in motor finance appeal
The FCA has published summary grounds of intervention in support of its application to intervene in the appeals relating to motor dealer-broker commissions. The FCA wants to intervene in writing and for up to an hour...
2025 survival guide: 10 things to be aware of
We’ve put together a quick guide to 10 key things for financial institutions to keep an eye on in 2025, across all areas of business.
PRA suggests “concierge” service for inbound firms to improve competitiveness
In response to a letter of 24 December 2024, the PRA has written to the Prime Minister, Chancellor and Secretary of State, setting out its ongoing work and plans to advance competitiveness and growth. The PRA sees its...
Chancellor to host industry forums on Financial Services Growth and Competitiveness Strategy
To inform the design of the inaugural Financial Services Growth and Competitiveness Strategy, the Chancellor is set to host a series of Industry Forums to seek views on the best way to deliver long-term in the sector...
FCA writes to Government on supporting growth
In response to a letter of 24 December 2024, the FCA has written to the Prime Minister, Chancellor and Secretary of State, setting out its ongoing work and plans to support growth. Digital innovation The FCA outlined...
PRA delays Basel 3.1 implementation
The PRA, in consultation with HM Treasury, has decided to postpone the implementation of the Basel 3.1 framework by one year to 1 January 2027. The delay will allow more time for clarity on how the framework will be...
Reminder: new DBS check requirement for controllers
We reported in December on the upcoming changes to FCA’s processes to require would be controllers of authorised or registered firms to have DBS checks, conducted within the 6 months before the application...
PSR publishes new strategy
The PSR has published its strategy for the next 2 years. It is now mid-way through a 5 year strategy, and has made strong progress in delivering positive change. It now needs to: complete work already underway...
PRA speaks on stress testing and launches LIST 2025
The PRA has launched its life insurance stress test for 2025. The exercise will: assess sector and firm resilience to severe but plausible adverse scenarios; strengthen market understanding and discipline; and improve...
ASA upholds complaint against investment training programme
The ASA has upheld a complaint against Zimran Ltd t/a Prosperi Academy. Prosperi Academy is an app offering financial investment training courses. The ad showed an individual’s bank account balance increasing in...
Government responds on governance of AI
The Government response to recommendations of a commons committee on governance of AI agrees that AI-specific legislation is needed and that it will consult on legislation that will apply to the still small number of...
Government updates on UK-China financial services cooperation
Following the latest meeting between the Chancellor and the Chinese Vice Premier, the Government has confirmed its agreement with China to improve cooperation and capital market connectivity between the countries. Many...
FSB considers relevance of climate transition plans for financial stability
The Financial Stability Board (FSB) has published a report on the relevance of climate transition plans for financial stability. The FSB found that in providing forward looking information, climate transition plans can...
Ring fencing changes regulations made
Changes to the ring-fencing regime will take effect in February and will implement changes to improve how the regime works. The changes both resolve unintended consequences of the current law, provide greater...
OFSI and OFAC sign MoU
HMT has published a MoU between the Office of Financial Sanctions Implementation (OFSI) and the United States Office of Foreign Assets Control (OFAC), to facilitate the exchange of information between the organisations...
BoE updates on digital pound
The BoE has published a report setting out the work it has done in the last year on the digital pound and the evolving payments landscape. The regulator has been working with HMT to explore the possibility of a digital...
FCA sets out expectations on redress liabilities and “polluter behaviours”
The FCA is increasingly seeing firms attempt to avoid potential or actual liabilities whilst still benefitting from the assets of the business, which it calls “polluting behaviour”. It has published new...
PRA outlines insurance supervision priorities for 2025
The PRA has published a Dear CEO letter to PRA-regulated insurance firms, setting out its supervision priorities for 2025. The key priorities reflect the ongoing developments in the context for life and general...
Regulators consult on FSCS management expenses levy limit 2025/26
The FCA and PRA are consulting on proposals for the Management Expenses Levy Limit (MELL) for the FSCS in 2025/26. The regulators propose the MELL for 2025/26 will be £108.6m, consisting of: the FSCS management expenses...
FCA sets out strategy for credit reference agencies and service providers
The FCA has published a portfolio letter to credit reference agencies (CRAs) and credit information service providers (CISPs) setting out its strategy for the next two years. The priorities will focus on: Embedding of...
FCA objects to Change in Control due to notification failures
The FCA has issued a final notice objecting to the proposed acquisition of Olampicaran Limited by Mr Ahmed, who had failed to notify and seek approval from the FCA. Olampicaran was a small payments firm providing money...
FCA hints at P2P sector review
The FCA’s response to the Complaints Commissioner report in relation to a complaint about a P2P firm suggests it may be considering a more detailed review of the sector. The complainant had alleged that the FCA...
Court refuses JR application on mis-advised SIPP investment
The High Court has refused an application for judicial review of the FSCS’s refusal to reconsider a compensation determination in respect of three investors who lost money after transferring funds from their...
Lords Committee writes to FCA on motor finance commission cases
The House of Lords Financial Services Regulation Committee has written to the FCA asking it to clarify certain elements of its position on the motor finance commission cases, as set out in a letter dated 13 November...
Regulators review MoU on payments systems
The BoE, FCA, PRA, PSR have reviewed their MoU on payments systems in the UK, as they are required to do on an annual basis. The regulators noted that over the past year they have taken steps to improve the sharing of...
FCA issues Supervisory Notice to Hydrogard Legal Services
The FCA has published a First Supervisory Notice against Hydrogard Legal Services Limited, a firm with claims management permissions, requiring it to immediate cease carrying on all regulated activities other than with...
FCA sets out updates to the National Storage Mechanism
Following a consultation, the FCA has set out its enhancements to the National Storage Mechanism (NSM). The changes will introduce more comprehensive metadata requirements to improve functionality, making it easier for...
FCA publishes latest Handbook Notice
The FCA has published its latest Handbook Notice, which confirms the following updates: Introduction of criminal background checks on owners and controllers at the authorisation gateway. The change is in line with a...
Regulators publish cyber findings for 2024
The BoE, PRA and FCA have published their latest annual CBEST thematic report. The report assesses the cyber resilience of key financial institutions through security testing performed in ‘live’ corporate...
FCA asks Collateral investors to come forward for an apology
The FCA has apologised to people who invested in peer-to-peer firm Collateral, whose directors fraudulently changed the firm’s details on the FCA’s interim permission register to make it look like it had...
FCA and BoE update MoU
The BoE and FCA have updated their Memorandum of Understanding, which they use to co-ordinate and co-operate in carrying out supervision of FMIs.
FCA charges former WealthTek partner
The FCA has brought criminal charges against John Dance, the principal partner at WealthTek LLP, in relation to 9 criminal offences, including multiple counts of fraud and money laundering. WealthTek, then known as...
PRA sets out policy on solvent exit planning for insurers
Following a consultation, the PRA has published a policy statement on solvent exit planning for insurers. The PRA had proposed new rules and expectations that firms must prepare for a solvent exit as part of their...
PRA postpones launch of dynamic insurance stress test
The PRA has announced that it is postponing the launch of the dynamic general insurance stress test (DyGIST) until May 2026. The delay is intended to reduce the burden on general insurers in 2025 as they prepare to...
FCA sets out findings on young investors’ decision-making
The FCA has found that two thirds of young investors take less than 24 hours to make an investment decision. Their latest research surveyed 2,000 UK investors aged 18 – 40, who had purchased a viral trend and...
Employment legislation update December 2024
The Employment Rights Bill is the key legislative development to keep an eye on in the employment space, and you can follow developments on our new timeline, but it’s not the only development of interest in the...
Dan FawcettHigh Court backs FOS on DCA complaint
The High Court has dismissed all 3 grounds of appeal brought by a lender under a discretionary commission arrangement (DCA) for motor finance, following a FOS decision to uphold a customer complaint. The grounds of...
Duncan ScottFCA successfully appeals Upper Tribunal decision
The Court of Appeal has allowed the FCA’s appeal against an Upper Tribunal decision which asked the regulator to reconsider a proposed ban against an individual and directed that a fine should not be imposed. In...
Employment cases update – December 2024
We are pleased to introduce into FIN a series of monthly updates from our employment team. This post looks at a few interesting cases. De Bank Haycocks v ADP RPO UK Ltd [2024] EWCA Civ 1291 The Court of Appeal had to...
Jon HalesFCA consults on PISCES platform framework
The FCA is consulting on the proposed framework for its Private Intermittent Securities and Capital Exchange System (PISCES). PISCES will be a new type of trading platform, enabling intermittent trading of private...
LSB review highlights importance of SME protections
The LSB’s review of registered firms’ application of its Standards of Lending Practice for business customers has found 102 areas where action has been required to bring firms into compliance with the...
PRA publishes authorisations performance report for Q3 2024
The PRA has published its report on its authorisations performance during Q3 2024/25, During the relevant period from 1 September to 30 November 2024, the PRA achieved 100% compliance with its service standards across...
BoE speaks on future of RTGS service
Victoria Cleland, Executive Director of Payments at the BoE, has given a speech on the Future Roadmap for BoE’s Real Time Gross Settlement (RTGS) service, at FinTech Connect. The BoE published a discussion paper...
FCA seeks comments on cryptoasset market abuse and admission and disclosure regimes
The FCA is seeking comments on its approach to cryptoasset Admissions and Disclosures, and the Market Abuse Regime for cryptoassets (MARC). In November 2024, the government confirmed it will proceed with legislation to...
FCA publishes markets supervision letters
The FCA has published a further series of portfolio supervision letters. They are addressed to: data reporting services providers; custody and fund services providers; contracts for differences providers; trading...
Regulators consult on operational incident and third party reporting
The FCA has published a consultation paper on proposals to require firms to report operational incidents and their material third party arrangements. The requirements will apply to authorised firms and PSPs as well as...
FCA publishes discussion paper on pensions regulation
The FCA has published a discussion paper on adapting requirements in the pensions sector. The FCA noted that these is a programme of policy changes underway to this area of the market, but wants the paper to stimulate...
FCA consults on reforms to advice guidance boundary for pensions
As part of its Advice Guidance Boundary Review, the FCA is consulting on targeted support reforms for pensions. The FCA identified a gap in the market between regulated, holistic advice to individuals at one end, and...
FCA conducts literature review on bias in supervised machine learning
The FCA has published a literature review on bias in supervised machine learning. It is the first of a series of planned research notes on bias in AI. The research note found: The main potential source of bias was data...
FCA sets out areas for improvement in complaints and root cause analysis
Following a review into 40 firms across a range of sectors, the FCA has set out guidance on good practice and areas for improvement for firms’ approaches to complaints and root cause analysis. The FCA identified...
FCA sets out good practice for Consumer Duty board reports
Following a review into 180 firms’ approaches to completing the first annual Consumer Duty board report, the FCA has set out guidance on good practice and areas for improvement. The FCA noted that the best reports...
FOS publishes Independent Assessor’s annual report for 2023/24
The FOS has published the Independent Assessor’s report for the financial year 2023/24. During this period, the FOS resolved 192,077 cases, with 1.8% of those customers lodging complaints about the service. Of the...
Treasury kickstarts financial inclusion strategy
Several large financial institutions including Lloyds Banking Group, Aviva and Experian as well as consumer bodies are forming a new committee which will feed in to the Government’s development of next...
FCA highlights Consumer Duty focus areas
The FCA has set out its priorities under the Consumer Duty for the rest of 2024 and 2025. These are: embedding the Duty and raising standards: within this priority, the FCA wants to understand how firms are improving...
FCA updates perimeter report
The FCA has updated its Perimeter Report. The report highlights the FCA’s remit and powers, including the new Designated Activities Regime, and then lists the key areas of harm linked to the perimeter and some key...
FCA quarterly consultation includes PEMC limit increase
The FCA’s latest quarterly consultation includes proposals to: clarify some consumer credit product PSD reporting; increase the current £100 medical condition premium trigger that means firms must signpost...
Lords Committee publishes FCA enforcement position letter
The House of Lords Financial Services Regulation Committee has published a letter from Nikhil Rathi answering some questions the Committee has asked following the FCA’s appearance before them. The letter mainly...
Treasury makes Singapore equivalence decision
The Markets in Financial Instruments (Equivalence) (Singapore) Regulations 2024 take effect on 31 December 2024 and designates a list of 18 Singaporean trading venues as equivalent to the UK in terms of regulatory...
Michael LewisFCA 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...
BoE 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...
IRSG 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...
FCA 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...
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...
Treasury 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...