Following its consultation on the failure of Digital Settlement Asset firms, the government has now published the consultation outcomes. In the consultation, the government sought responses to its approach on managing...
Category - Supervision
Vida FatemiGovernment confirms plans for fiat-backed stablecoins
The government has provided an update on its plans for bringing fiat-backed stablecoins into the UK’s regulatory perimeter for financial services. This follows the January 2021 consultation on the UK regulatory...
Treasury confirms next steps in crypto regulation
Treasury has published its response to its consultation and call for evidence on the future regulatory regime for crypto assets. Broadly, it will proceed with the proposals it consulted on, and will: develop a...
Emma RadmoreFCA launches new crypto registration webpage
FCA has launched a new webpage for cryptoasset businesses applying for registration under the MLRs. The new webpage sets out FAQs on how to prepare for registration, associated individuals and what happens once an...
BoE speaks on money and payments
Jon Cunliffe (BoE Deputy Governor, Financial Stability) has given a speech on money and payments. Highlights include: G20 roadmap to improve cross-border payments Whilst improvements have been made since 2020, there is...
Lucy HadrillTreasury and FCA hold perimeter meeting
Treasury and FCA have published the record of their July meeting to discuss aspects of the regulatory perimeter. The issues discussed included: discussion of FCA’s plans around expectations on firms carrying out...
Regulators feed back on AI
PRA and FCA have published a feedback statement following their and BoE’s discussion paper on AI and machine learning. The paper asked for views on the role supervisors should play in supporting the safe and...
FCA publishes sample business plan
FCA has published guidance on a sample business plan for firms putting together an RBP. It says that following it should help firms to ensure they are ready, willing and organised to be authorised by FCA. The guidance...
Treasury responds on Edinburgh Reforms progress
Treasury has responded to a request from the Treasury Committee for an update on delivering the Edinburgh Reforms. It notes: reform of the ring-fencing regime: this is in progress with draft legislation being published...
HCSTC lender goes into administration
FCA has announced the administration of Novaloans Limited, an online only high-cost short-term lender and provided details of its administrators and the entity the administrators have instructed to collect all...
FCA issues further crypto-marketing warnings
FCA has continued to look closely at cryptoasset promotions following the new rules that took effect from 8 October. It has identified 3 common problems in these promotions: promotions that make claims about the safety...
FOS releases half-yearly complaints data
FOS has published data showing the number and outcome of the complaints it has handled about financial businesses for the period of January to June 2023. The key take-aways are: FOS received a total of 93,114...
FCA confirms no changes needed on SME access to FOS
On 1 April 2019, rules extending access to the FOS for more SMEs came into force. The rules allowed SMEs to access the FOS if they have a turnover of less than £6.5 million and fewer than 50 employees, or a balance...
Regulators confirm removal of bonus cap
PRA and FCA have confirmed the decision to remove the limits on the ratio between fixed and variable remuneration with effect from the end of October 2023 and which will apply to current and future performance years...
Parliament launches inquiry into regulator independence and accountability
The Industry and Regulators Committee has published a call for evidence seeing views on the work of the UK regulators, looking at their relationship with Government and how they are held to account. The inquiry covers...
FCA updates complaints data
FCA has published updated complaints data based on returns from firms. Snapshots from the 2023 H1 data include: a slight increase in complaints from the previous 6 months (5%); most significant increases in the...
FCA updates on skilled persons reports
FCA has published the numbers of skilled persons reports commissioned in the first two quarters of 2023: From April to June it commissioned 11 reports, of which 4 related to retail investments and 3 to wholesale...
Government updates on Swiss FTA
The Department for Business and Trade has provided an update on negotiations towards an enhanced Free Trade Agreement between the UK and Switzerland. The second round of talks is now complete and a third round is...
JROC welcomes OBL data collection frameworks
The Joint Regulatory Oversight Committee has welcomed the publication of two data collection frameworks by Open Banking Limited, one on levelling up availability and performance and the other on mitigating the risks of...
“Sexism in the City” evidence published
The Parliamentary Committee looking into “Sexism in the City” has published 46 pieces of written evidence it received. The evidence from FCA highlighted: more diverse and inclusive firms can support better...
PRA speaks on bank failures
Sam Woods spoke at Mansion House on prudential regulation and supervision in the particular context of bank failures – looking specifically at SVB and Credit Suisse. He said that there is much to be done to...
FCA speaks on objectives
Nikhil Rathi has spoken about how to achieve the objective of international competitiveness and growth over the medium to long term. Rathi highlighted 5 key ingredients for achieving this: An operationally effective...
Basel Committee consults on crypto exposure disclosure
In December 2022, Basel Committee published its final prudential standard on the treatment of cryptoasset exposures. Following on from this, a consultation on the disclosure of banks’ cryptoasset exposures has...
PSR publishes revised penalty statement
PSR has published its revised penalty statement. The statement aims to clarify the penalties that are imposed and what to expect if PSR identifies non-compliance. PSR places ever-increasing requirements on an...
FCA fines Equifax £11m for cyber-security breach failings
FCA has fined Equifax Ltd for £11,164,400 for failing to manage and monitor the security of UK consumer data it had outsourced to its US parent, in breach of Principles 3, 6 and 7. In 2017, cyber-hackers caused Equifax...
Emma RadmoreFCA publishes quarterly whistleblowing data
FCA has published the latest data on new whistleblowing reports received between April and June 2023. In this period: There were 300 new whistleblowing reports which is an increase compared to the same period in 2022...
FCA restricts Modulr from onboarding new agents
FCA has published a restriction on Modulr, an authorised EMI, preventing it from onboarding any new agent or distributor without FCA’s consent. Existing agents and distributors may continue to distribute and...
FCA decides to fine and ban Jes Staley
FCA has decided to fine former Barclays CEO Jes Staley £1.8m and ban him from holding any senior management or significant influence function, after finding that, while he was CEO of Barclays, he had recklessly failed...
ABI urges insurers not to get left behind on DEI
ABI has published an update on progress against its three priorities of Attract, Grow and Advance set out in its DEI blueprint published this time last year. It has seen an increase in firms that now collect data on...
FPC updates on stability risks
The Financial Policy Committee’s summary of the financial stability risks following its October review notes: that more persistent inflation, higher interest rates and geopolitical tensions continue to make the...
Judicial review on ATM rate provision dismissed
PSR is pleased that the High Court has dismissed an application by NoteMachine for judicial review of PSR’s decision not to intervene in a dispute concerning concerns NoteMachine had over the fees it received for...
SFO investigates funeral plan provider
SFO has written to authorised firms asking for information to help its criminal investigation into suspected fraud by a pre-paid funeral planner, Safe Hands Plans Limited and its parent company. Nearly 50,000 plan...
PRA publishes Occasional Consultation
PRA’s latest Occasional Consultation consults on: changes to the Depositor Protection Part of the PRA Rulebook to make it easier for the FSCS to make electronic payments to eligible depositors of insolvent deposit...
FCA stops firm from approving crypto promotions
On 10 October, FCA imposed restrictions on rebuildingsociety.com Ltd to stop it from approving crypto financial promotions. The firm, which is authorised to operate an electronic system in relation to lending, was also...
FCA updates crypto application stats
FCA has updated the statistics on applications for registration by crypto firms, and its feedback on good and poor applications. As at 1 October, it had received 326 applications since registration began in January...
TPT Disclosure Framework published
The TPT Disclosure Framework, published by the Transition Plan Taskforce, contains guidance and recommendations to help companies make disclosures that are high quality, consistent and comparable. The aim of this is to...
FCA issues first alerts under new crypto marketing regime
FCA has issued 146 alerts about financial promotions in the first 24 hours of the new crypto marketing regime. These alerts contain the names of companies which may be illegally communicating cryptoasset promotions. The...
PRA annual assessment of credit unions
The PRA has written to credit unions following its annual assessment of the sector. Key messages for both large (those with total assets between £10m and £50m) and small (those with total assets up to £10m) credit...
Diversity and Inclusion are regulatory concerns
See our detailed analysis on the background to and proposals in PRA and FCA’s current consultations on D&I in the financial marketplace.
FCA notifies of changed Form A
As part of FCA’s overall update of authorisation application forms it is now formally launching Form A and has started contacting firms to tell them how they can access it to take part in public testing. It plans...
FCA publishes CRA undertaking
FCA has published an undertaking from Wirex Limited, in respect of unclear terms in the firm’s e-money contract, which FCA obtained using powers under the Consumer Rights Act. FCA was concerned about terms: that...
Debt packager referral fee ban implementation period ends
In June 2023, FCA published its policy statement and final rules on debt packager referral fee bans, which took effect from 2 June 2023 for new debt packager firms and their newly appointed ARs, but which existing debt...
LSB joins UK Regulators’ Network
LSB has joined the existing network of UK regulators which, from the financial services side, already includes FCA and PSR.
PRA to run dynamic insurance stress test in 2025
PRA has announced a change in approach for its 2025 insurance stress tests. The objectives of the exercise will, as ever, be to assess solvency, liquidity and risk management against specific adverse scenarios, but in...
PRA reviews Written Auditor Reporting policy
PRA has evaluated the Written Auditor Reporting policy to assess how it is delivering against its original objectives and how to refine its approach to the policy to make it a more efficient and effective supervisory...
FCA publishes platform portfolio letter
FCA has written a letter to firms that it identifies as providing a platform service, setting out the key harms in the sector, expectations of these firms and a summary of the work FCA intends to do. This follows the...
FCA speaks on financial inclusion
Nikhil Rathi has spoken on how FCA is looking for solutions to tackle financial exclusion, but that it needs help from industry and technology to do so. He explained that FCA does not have the remit or powers to tackle...
Treasury to enable action against debanking
The Chancellor has announced a plan that will enable regulators to take action if any bank is found to undermine or fails to protect its customers’ rights. Treasury plans to consult soon on how best to deliver the...
FCA review: terminal illness benefits in life insurance products
FCA has published the findings from its review of terminal illness benefits within life insurance protection products. A terminal illness benefit provides an early lump sum pay-out of a life insurance policy where the...
PRA consults on reforms to Matching Adjustment
PRA is consulting on reforms to the Matching Adjustment (MA) as part of a package of measures on Solvency II. The proposals covers reforms to MA regulation relating to greater investment flexibility and revised...
FCA portfolio letter to Corporate Finance firms
FCA has written to all corporate finance firms (“CFFs”) outlining the harms to consumers and markets that it believes are most likely to arise from the business models of the CFFs and the strategy to address...
PRA proposes RFB policy updates
PRA has proposed rule and policy updates in respect of the establishment and maintenance of third-country branches and subsidiaries within RFB sub-consolidation groups. HM Treasury is consulting on legislative changes...
Treasury publishes ring fencing response
In response to the recommendation from a panel of independent experts led by Sir Keith Skeoch on the longer-term future of the ring-fencing regime, the government issued in March 2023 a Call for Evidence on aligning the...
FCA publishes AR supervision data
Following the introduction of rules and guidance on how to improve how principal firms oversee their ARs in December 2022, principals must now give the FCA more information about their ARs. This information is used by...
UK Finance respond to ban on cold calling
UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...
FCA publishes review of high-risk investment compliance
FCA has released its findings of its review on how firms offering restricted mass markets investments (RMMIs) have complied with new rules on the customer journey. This follows the 2022 policy statement on strengthening...
Commons publishes research briefing on access to cash
The House of Commons Library has released a research briefing that looks at the future of local banking services and access to cash. The paper looks at the latest statistics on cash usage and availability of free to use...
PRA updates on Basel 3.1
PRA has published an update on its plans for implementing Basel 3.1 into its rules. Its consultation finished at the end of March and it has been considering responses. It has now decided to move the implementation...
FCA speaks on encouraging investment
Sarah Pritchard has spoken on the role of regulation in encouraging investment in the City. She noted that proportionate regulation and a debate around risk appetite are key considerations in the review of financial...
PSR publishes autumn newsletter
Unsurprisingly, the PSR’s Autumn 2023 newsletter focuses on the busy summer the regulator has had with not only the new APP fraud reimbursement rules, but also its market reviews into scheme fees and cross-border...
Regulators consult on boosting D&I in financial services
In consultation papers published by the FCA and PRA today, proposals have been set out to boost diversity and inclusion in financial services firms. The aim of these proposals is to support healthy work cultures, reduce...
Latest Ombudsman News updates on proactive settlement
The latest edition of Ombudsman News highlights the latest complaints data and updates on FOS’ extended trial to proactively settle complaints. It’s helped to resolve over 900 complaints as part of the trial...
FCA updates on insurance market priorities
FCA 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...
FCA reports on bank account access and closures
FCA has published its initial findings in its review of bank account access and closures. It has based its conclusions on information provided for the year to June 2023 by 34 firms. The key conclusion is that no firm...
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 speaks on international collaboration
Ashley Alder has spoken on the importance of collaboration in international financial services. He touched on the UK-EU MoU and current IOSCO initiatives. He spoke of global initiatives such as climate and...
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...
FCA 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...
FIN. TeamGovernment 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.