Emma RadmoreThe 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...
Category - Supervision
PSR publishes Annual Report
The PSR annual report for 2023/24 unsurprisingly highlights the regulator’s activities in relation to APP fraud and open banking. It notes: publication of the first set of APP fraud statistics; steps to...
FCA updates on whistleblower reports
The FCA has reported on whistleblowing disclosures made to it in the year to 31 March 2024 under the Prescribed Persons Regulations 2017. During the year it received 1,125 new reports (having seen a gradual increase...
FCA wants improvement in AR supervision
The FCA has reviewed how principals are supervising their Appointed Representatives and has concluded that supervision has improved, but that firms could do more. It saw many principals keeping clear records of how they...
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...
Tribunal backs FCA refusal of authorisation application on fit and proper grounds
The Upper Tribunal made its decision on the reference to it in respect of the FCA’s decision that the only proposed financial adviser of a firm did not meet the ‘fit and proper’ test, such that the...
Laura WilesFOS highlights record fraud and scam complaints
We previously reported on the last quarter’s record complaints figures to the FOS. It has followed up this data with details of fraud and scam complaints, which are at their highest ever quarterly level. In the...
FCA seeks views on EMIR reporting
The FCA is asking for views on its guidance for UK Trade Repositories on guidance on the changes to the derivative reporting framework under EMIR. Most of the new requirements take effect from 30 September, and the new...
FCA publishes steps to improve access to bank accounts
In a report concerning its findings from follow-up work on payment account access and closures, the FCA has set out its expectations of firms, and next steps encouraging account providers to provide more support to...
FCA releases latest skilled persons stats
In the quarter to end March 2024, the FCA commissioned 27 skilled persons reports. 10 related to retail investments, 7 to wholesale financial markets and 5 to retail banking and payments. 12 related to controls and risk...
Latest Financial Services and Markets Act 2023 Commencement Regulations published
Treasury has published the latest commencement regulations bringing into force provisions of the Financial Services and Markets Act 2023. In particular, the Financial Services and Markets Act 2023 (Commencement No. 7)...
CMA writes to Starling on Retail Banking Order breach
The CMA has written a letter to Starling regarding its breach of the Retail Banking Market Investigation Order (Order) in relation to the Service Quality Indicator (SQI) remedy. Part 3 of the Order requires Business...
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...
FCA to investigate pure protection market
The FCA is concerned that competition is not working well in the pure protection sector and is to start a market study into how pure protection products are sold. These products are mainly sold through intermediaries...
Tribunal backs FCA on Saranac/Kalaris decision
The Upper Tribunal has made its decision on the reference to it by Saranac Partners Limited in respect of the FCA’s decision not to approve its application for Thomas Kalaris to be its CEO and an executive...
FCA fines auditor for failing to report suspected fraud
The FCA has fined PwC £15m for failing to report suspicions of fraud that arose during its 2016 audit into London Capital & Finance. As PwC had been carrying out the audit, it had been faced with aggression from a...
FCA censures auditor for client asset report failings
The FCA has censured audit firm Macintyre Hudson LLP, which over a 4 year period did not prepare 4 client asset reports relating to 2 firms to the required standard. The reports did not report 25 rule breaches, which...
FCA consults on enhancing the National Storage Mechanism
Following the announcement earlier this year that it would be refreshing the National Storage Mechanism (NSM), the FCA is now consulting on proposals to change the requirements for submitting regulated information to...
Lucy HadrillFCA 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...
FCA publishes Q2 fin proms data
The FCA has published its financial promotions data for Q2 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 3,273...
Harry WellsFCA updates on crypto fin prom compliance
The FCA has published the findings of its review into how crypto firms have complied with financial promotion rules introduced in October 2023. In particular, the FCA analysed the application of ‘back end’...
BoE publishes second resolvability assessment of major UK banks
The BoE has published its second assessment of the resolvability of the eight major UK banks, finding that the banks have made significant progress in preparation for resolution, and have addressed issues outstanding...
Unauthorised mortgage broker to pay £4m
The FCA has secured an order of £4m in the High Court against two firms under the directorship of one individual, which respectively arranged mortgages and bought properties and rented them back to the sellers. Neither...
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...
FCA refuses application on fit and proper concerns
The FCA has published a decision notice setting out its intention to refuse to authorise an applicant firm Ancean Limited, whose sole director and proposed sole approved person would be an individual who was previously...
PSR publishes APP scams reimbursement information sheet
The PSR has published an information sheet to support firms’ compliance with Specific Direction 20 – the requirement for sending PSPs to inform consumers of their rights under the reimbursement requirement...
New FCA webpage on UK UCITS ManCo applications
The FCA has launched a new webpage setting out how firms can apply to become a management company (ManCo) for a UK UCITS. The webpage contains information on permissions, prudential requirements, and application fees...
FCA speech: 1 year on from the Consumer Duty
Sheldon Mills, Executive Director of Consumers & Competition at the FCA, has delivered a speech reflecting on the Consumer Duty a year on from its implementation. The speech welcomed the improvements demonstrated by...
IEO makes recommendations on new PRA competitiveness and growth objective
The BoE’s Independent Evaluation Office (IEO) has published its evaluation of the PRA’s approach to its new secondary competitiveness and growth objective (SCGO). The IEO is pleased that the PRA has invested...
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...
BoE and PRA consult on updates to international banking supervision
The BoE and PRA have launched a consultation on proposed updates to international banking branch and subsidiary supervision to reflect changes since introducing the PRA’s SS5/21. The proposed changes include:...
BoE and PRA set up CBA panel
The PRA and BoE have set up a cost benefit analysis panel (CBA Panel) to advise on the preparation of cost benefit analyses when the two bodies put forward new regulatory proposals. The CBA Panel is also able to...
FCA to extend DCA complaint “pause” period
The FCA plans to extend the “pause” to the time firms have to respond to complaints about motor finance involving discretionary commission arrangements., to 4 December 2025. It says it has taken longer than...
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:...
PRA publishes Policy Statement on omnibus reserve rules
The PRA has published its final policy on leverage ratio treatment of omnibus account reserves and amendments to the leverage ratio framework, as well as feedback to responses from its consultation earlier this year...
PSR publishes second Annual Review of Specific Direction 12
The PSR has published it second annual review of Specific Direction 12 (SD12), designed to ensure that LINK has a broad geographic spread of free to use ATMs and meets service user needs. The regulator has concluded...
FCA calls for input on retail conduct rules post-Consumer Duty
The FCA is calling for views on whether it can simplify its retail conduct rules and guidance following the introduction of the Consumer Duty. The regulator is seeking feedback specifically on any areas of retail...
FCA publishes policy statement on Cost Benefit Analyses
The FCA has published a policy statement on its approach to cost benefit analysis (CBA). Designed to assess the costs and benefits of policies introduced by the regulator, it aims to quantify the likeliest impact of...
FCA announces raft of measures for UK wholesale markets
The FCA has announced a variety of measures with the aim of strengthening the UK’s capital markets. 1. New public offers and admissions to trading regime A key aspect of the package includes proposals (CP24/12) to...
PRA finalises expectations on funded reinsurance
Following its consultation, the PRA has finalised its expectations in respect of insurers entering into or holding funded reinsurance (FundedRe) arrangements as cedants (SS5/24). The PRA has also issued a Dear CEO...
PRA publishes PS on approach to rule permissions and waivers
The PRA has published the final version of its SoP on its approach to rule permissions and waivers. It received 4 responses to its consultation, but has not made any change to the consultation draft following these...
CMA takes action under Retail Banking Order
The CMA has taken action against 4 banks for breach of the requirements of the Retail Banking Market Investigation Order 2017. HSBC, Lloyds, TSB and AIB failed to make correct data on their products and services...
FCA fines E-money firm £3.5m
The FCA has fined CB Payments Limited, an EMI which is part of the Coinbase Group, £3.5m for repeated breach of a requirement restricting it from offering services to high risk customers. The firm does not itself...
Regulators update on BSPS actions
The FCA, FOS and FSCS have published a report looking at the actions taken and results from the BSPS Redress Scheme exercise, as it comes to an end. Overall: £8.7m has been paid out by firms or the FSCS (significantly...
FCA publishes final rules on protecting access to cash
In December, the FCA used 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. The FCA has now published the...
FOS publishes ADR annual activity report
The FOS has published the annual figures for reports it received in the year to 8 July, It notes the figures don’t include complaints brought by businesses but may include some brought by charities and trustees...
Bond administrator enters liquidation
The FCA has announced the liquidation of London Court Limited, a bond administrator and ISA manager. The firm had been restricted from doing any new business since August 2023 after the FCA determined that the firm had...
FRC announces Stewardship Code changes
The FRC has announced major revisions to the UK Stewardship Code. It is making 5 immediate changes and has committed to a wider review. The key changes: will remove the “context” reporting expectations...
PSR consults on draft guidance on identifying APP scams
The PSR is consulting on draft guidance on distinguishing between APP scams and civil disputes, after engagement with industry. The draft guidance aims to support Payment Service Providers (PSPs) with identifying...
FCA consults on updates to PEPs guidance
Following recent changes to the MLRs and its PEP review, the FCA is consulting on changes to its guidance for firms on applying a proportionate and risk-based approach to UK PEPs, their relatives and close associates...
King’s Speech 2024 outlines pensions and banking resolution measures
Among the list of legislative proposals referred to in the King’s Speech are bills designed to strengthen pension investment and enhance the UK’s banking resolution regime. The Pension Schemes Bill aims to...
FSB consults on data flows and regulation in cross-border payments
The FSB has launched a consultation on its recommendations regarding increased alignment in data flows and greater consistency in the regulation and supervision of bank and non-bank payment service providers (PSPs) with...
PSR and FCA call for information on big tech and digital wallets
The PSR and FCA are seeking information and evidence on the benefits and risks posed by digital wallets to people and businesses. In particular, the regulators want to gather information on: the different benefits that...
PRA updates on dynamic insurance stress test
The PRA has published a statement setting out further information on the dynamic general insurance stress test (DyGIST) that it intends to run in 2025. As a reminder, the objectives of DyGIST are to: assess the UK...
PSR confirms APP reimbursement requirements
The PSR has published its policy statement confirming the requirements for the mandatory APP scams reimbursement policy which takes effect on 7 October 2024. The PSR consulted in April on proposed reporting requirements...
FOS publishes annual complaints data for 2023/24
FOS has published the annual complaints data for the 2023/24 financial year. Most notably, complaints about the banking sector are at their highest level in at least a decade. In the last financial year, consumers...
PRA publishes Life Insurance Stress Test approach
The PRA has published a set of documents setting out its approach to the 2025 Life Insurance Stress Test. The test will apply to UK life insurers active in the bulk purchase annuity markets and will contain a core...
PRA updates on Solvency UK
Gareth Truran of the PRA has given a speech in light of the updated Matching Adjustment regime for insurers going live on 30 June. He said insurers now have all they need to use the Solvency UK reforms to support their...
FCA quarterly consultation plans criminal background checks
FCA’s most recent quarterly consultation includes proposals on: carrying on criminal background checks on owners and controllers at the authorisation gateway. The FCA currently conducts these checks using a risk...
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...
CBI survey shows continuing sector growth
The CBI’s most recent quarterly survey shows that financial services business volumes continue to grow. Business volumes grew in Q2 2024 and are expected to rise at an even faster rate in the coming quarter. The...
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...
PRA publishes final rates for 2024/5
The PRA has published its feedback to the consultation on next year’s rates and the finally set rates. It received only 2 responses to its consultation and the new rules now take effect on 9 July.
PRA updates on skilled persons reports
The PRA commissioned 6 skilled persons reports in Q4 2023/24. 5 related to credit institutions and one to insurers, and all but one related to controls and risk management frameworks.
DEI in financial services: can regulators shift the dial?
We have written an article for Compliance Monitor on the impact of the Sexism in the City report and the reaction of the financial regulators to it.
FCA makes final fees rules
The FCA has published its final fees and levies for 2024/25. It has made minor changes to the amounts it consulted on. One of the most contentious proposals had been that it would split the costs for its cryptoasset...
FCA updates sustainability and disclosure labelling regime webpage
The FCA has updated its sustainability and disclosure labelling regime webpage to include information on notifications when using an investment label. The update also includes details of applications to make associated...
New FCA webpage on overseas ARs
The FCA has published a new webpage which sets out expectations for firms with overseas appointed representatives (OARs). In particular, principal firms should consider whether customers dealing with an OAR will receive...
FCA to run Consumer Duty webinar
The FCA is hosting a webinar on 31 July 2024 to mark one year since the implementation of the Consumer Duty. It will focus on: the impact the Duty has had in its first year; examples of good practice and areas for...
BoE publishes scenarios for the 2024 stress test
BoE has published the scenarios that will be used in its 2024 desk-based stress test. The exercise will test the resilience of the banking system (firms that account for c.75% of the sector’s lending to the UK...
FCA publishes product sales data
The FCA has published a breakdown of the product sales data it has collected from firms in the period 1 January 2019 to 31 December 2023. The data covers firms operating in the mortgages, retail investments and...
FPC publishes policy summary
BoE has published the FPC’s latest financial summary and record. Key points to note are: global growth is projected to rise in the medium term, although several risks to that outlook remain; improved transparency...
FCA updates on Consumer Duty board reports
The FCA has updated its Consumer Duty – information for firms webpage to include further detail around annual board reports. From July the FCA will be reviewing a broad sample of firms’ board reports and...
FCA publishes findings from insurance multi-firm Consumer Duty review
The FCA has published the key findings from its review of 20 larger insurance firms’ approaches to outcomes monitoring under the Consumer Duty. These included general insurers, life insurers, intermediaries and...
Complaints Commissioner criticises FCA’s response to MLRs complaint
The Complaints Commissioner has criticised the FCA for refusing to review a complaint made about its legal obligations under the MLRs. The complainant had written to the FCA asserting that the regulator had been grossly...
FCA keeping trading apps under review
The FCA has carried out an online experiment involving over 9,000 consumers, involving a trading platform app that the FCA created. It wanted to test the effect of different digital engagement practices on trading...
Court rejects application for JR review of FOS decision
The Court has dismissed an application made by Linear Investments Limited for judicial review of a FOS decision. The FOS had heard that a customer of Linear (Professor W) was an eligible complainant under its rules...
FCA updates on finfluencer trial
Following the FCA’s decision to charge 9 “finfluencers” in relation to promotions of an unauthorised FX trading scheme on social media, it has updated that three individuals have pleaded not guilty...
FCA bans individual for failing to disclose conviction
The FCA has banned Graham Lilley, formerly an authorised sole trader, from carrying on any regulated activity carried on by any person and has cancelled his permissions. It discovered that Mr Lilley had been convicted...
FCA clarifies open banking expectations relating to run off firms
The FCA has updated its information page on firms in the Contractual Run Off scenario following Brexit. It has clarified that ASPSPs are not obliged to provide CRO firms with access to payment accounts given that CRO...
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...
Conservative manifesto highlights fintechs
The Conservative Manifesto, published on 11 June, contains few surprises for financial regulation. It priorities: building on the various co-operation agreements it has already signed, including with the EU and...
FCA shares latest Mortgage Charter uptake data
The FCA has reported that there are now 49 signatories to the Mortgage Charter, and that the signatories represent about 90% of the mortgage market. The latest data suggests that well over 1m mortgages benefited from...
Regulators publish Wider Implications Framework Annual Report
The 2023/24 Wider Implications Framework Annual Report from the FCA, FOS, FSCS, TPR and MaPS notes that during the period the report covers, the new duty in FSMA 2023 on the FCA, FOS and FSCS to cooperate on issues that...
Tenet firms enter administration
The Tenet Group Limited is winding down its operations, which has now resulted in two of its hosting firms entering administration. The firms closed to new business at the end of March, and most of their advisers either...
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...
City Corp and Climate Policy Initative report on progress to net zero
A research report from the City of London Corporation and the Climate Policy Initiative looks at the significant progress financial services firms have made in efforts to address climate change. They say increasing...
Building societies amendment law published
The Building Societies Act 1986 (Amendment) Act 2024, which was voted through in the Parliamentary wash-up process, has been published. It will take effect from 24 July and will: amend the funding limit restrictions to...
Chris Hemsley to leave PSR
Chris Hemsley is standing down as managing director of the PSR from 7 June to take up another position. David Geale will take over as interim managing director, having been director of retail banking at the FCA and...
FCA sustainability disclosure and labelling regime takes effect
The FCA’s new anti-greenwashing rules and guidance took effect on 31 May. Firms must make sure any claim about the sustainability of their products and services is clear, fair and not misleading. They should also...
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...
Committee stops accepting FCA enforcement evidence
The Financial Services Regulation Committee is no longer accepting evidence on the FCA’s enforcement proposals following the prorogation of Parliament on 24 May. Its website says that any committees appointed...
FCA publishes operational resilience tips
The FCA has published its observations on firms’ preparations for complying with its operational resilience rules by 31 March 2025. The rules apply to dual regulated firms as well as RIEs, enhanced scope SMCR...
Treasury Committee writes to FCA on enforcement proposals
The Treasury Sub-Committee on Financial Services Regulations has written to the FCA on its enforcement proposals prior to the dissolution of the Committee before the general election. The letter outlines the...
FCA updates Consumer Duty webpage
The FCA has updated its Consumer Duty – information for firms webpage to include guidance on identifying vulnerable customers. For example, firms should: set up systems and processes that enable customers to...
PSR writes to FPS participants on APP reimbursement
The PSR has written to Faster Payments System participants to set out areas of focus for implementing the mandatory APP scams reimbursement policy. In order to ensure effective and timely implementation by 7 October...
FCA allows firms to restart GAP insurance sales
Following the pause in GAP insurance sales implemented earlier this year, the FCA has permitted several firms to recommence their sales of GAP. The firms permitted to resume sales of GAP insurance have materially...
FCA updates on plans for asset management sector
Ashley Alder, FCA Chair, has a delivered a speech on the FCA’s agenda for the UK asset management sector. Key highlights include that FCA: wants to ensure that feedback from all stakeholders, including from their...
FOS consults on CMC fees
Following the publication of Treasury’s draft legislation, FOS has announced a consultation on proposals to charge Claims Management Companies and other professional representatives up to £250 to lodge a case. The...
PRA updates on insurance branch supervision
The PRA has provided feedback on the responses received to its consultation on the PRA’s approach to the authorisation and supervision of insurance branches. 10 responses were received, which generally supported...
BoE responds on requirements on FMIs consultation
BoE has provided feedback following responses received during its consultation on its proposed approach to statutory notice decisions for use of its requirements powers. BoE has been given new powers under FSMA 2023 to...