BIS has published a report outlining the key elements of the crypto ecosystem and their structural flaws. The report was submitted to the G20 Finance Minister and Central Bank Governors. The three key takeaways are:...
Category - Uncategorized
HSBC breaches retail banking order
The Competition and Markets Authority (“CMA“) has written to HSBK UK Bank Plc concerning its breaches of Part 2 of the Retail Banking Market Investigation Order 2017 (the “Order“). Part 2 of the...
High Court refuses JR application on FOS decision
The High Court has refused a renewed application for permission to apply for a judicial review of a FOS decision brought by Options UK Personal Pensions LLP (previously Carey Pensions UK LLP). FOS made a decision after...
Treasury updates AML advisory
Treasury has updated its money laundering advisory notice on high risk third countries. The following list has also been substituted for the current list in Schedule 3ZA of the MLRs: Albania Barbados Burkina Faso...
FSMB: Committee debates access to cash and more
On 1 November, the Public Bills Committee debated further clauses of the FSM Bill in the morning and afternoon sessions. They discussed: Clause 46 and Schedule 7 on the PSR: Andrew Griffith explained that these clauses...
LSB reports on access and disability recommendations for firms
LSB has published its report on inclusion in business banking and credit. The report provides insights for banks and lenders to help ensure their offerings are inclusive and accessible for disabled customers and those...
Launch of our re:connect hub
We are excited to launch our new re:connect hub, housing resources to help our clients tackle the challenges of today and tomorrow by making the most of every opportunity by connecting data, finance and people to ensure...
FCA portfolio letter to high-cost lenders
FCA has published its portfolio supervision letter in relation to high-cost lending products. The letter sets out the risks FCA believes high-cost firms pose to their customers and the markets in which they operate and...
FIN team thrilled with ranking and awards!
The FIN team are delighted to have both retained the Legal 500 rankings for the core team services and to have won two awards at the recent Compliance Register Platinum Awards – for Best Law Firm: Regulatory...
Call for evidence on PRA’s ‘Strong and Simple Framework’
PRA’s Framework seeks to mitigate the ‘complexity problem’ that can arise when the same prudential requirements, including to control risks and hold adequate capital, are applied to all firms regardless of their size...
PRA consults on model risk management principles for banks
PRA has issued a consultation which proposes that all firms adopt five proposed principles to establish an effective model risk management (MRM) framework. The five proposed principles are: Model identification and...
FCA update on market abuse and manipulation
Tackling market abuse is one of the FCA’s strategic priorities. Given recent press reports about the FCA’s approach, the FCA outlined the work it does to tackle insider trading and manipulation and to warn...
CMA publishes report on lessons learned review of Open Banking remedy
On 27 May 2022, the CMA published the final report of an independent review of the “lessons learned” review of the Open Banking remedy, which is part of the package of remedies introduced following the...
PRA sets out proposals for a definition of a ‘Simpler-regime Firm’
PRA has issued a consultation paper to define a ‘Simpler-regime Firm‘, as a first step towards designing a strong and simple framework. A Simpler-regime Firm would be subject to a simpler, but robust, set of...
EIOPA publishes Insurance Stress Test recommendations
In 2021, EIOPA carried out a European-wide stress test in accordance with Article 21(2)(b) of Regulation (EU) No 1094/2010 of 24 November 2010 of the European Parliament and of the Council (EIOPA Regulation). EIOPA has...
Bank of England renews its commitment to the FX Global Code
The Bank of England has renewed the Statement of Commitment to the FX Global Code, based on the revised Code dated July 2021. The Code sets out principles of good practice in the foreign exchange market and by signing...
Joint Statement from UK Financial Regulatory Authorities: Cryptoassets
On 11 March 2022, OFSI, the FCA and the Bank of England issued a joint statement on sanctions and the cryptoasset sector. The statement comes amid the conflict between Russia and Ukraine to ensure all firms are...
Hewlett Packard/Autonomy v Lynch – Claimants win on liability
The civil side of the long running dispute between Hewlett-Packard and Michael Lynch (Hewlett-Packard and othrs v Michael Richard Lynch and othrs) over the acquisition of Lynch’s business, Autonomy Corporation...
ESMA publishes appropriateness and execution only report
ESMA has published its final report on its guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements that apply for non-advised sales. ESMA’s work had shown a need for...
EBA publishes cover note for draft RTS on AML/CFT database
The EBA has published a cover note for its submission of the draft regulatory technical standards (RTS) under Article 9a(1) and (3) of Regulation (EU) No 1093/2010, setting up an AML/CFT central database. The database...
FCA publishes REP-CRIM data analysis
FCA has published its analysis of firm’s financial crime reports from 2017-2020. Over the period, it received over 5,500 reports from over 2,300 different firms. Among FCA’s key observations were: 111,000...
FCA updates GI pricing FAQs
FCA has added some questions to its FAQs on its new general insurance pricing practices Q&As. The new questions relate to incentives. These include clarification that sending out paperwork that results in tacit...
Legal 500 2022
We are pleased to retain our ranking in the financial services non-contentious category in the 2022 edition of Legal 500, as well as to work with so many colleagues whose expertise is recognised. People said…...
Tribunal confirms FCA ban on IFA following sex offence
The Upper Tribunal has published its decision relating to Jon Frensham, an IFA convicted of attempted sexual grooming of a child. FCA had decided to withdraw Mr Frensham’s approval and make an order prohibiting...
FCA publishes P2P strategy letter
FCA has published its portfolio supervision letter to loan-based P2P crowdfunding platforms, sent to relevant firms in May. In that letter, it identified 4 potential areas of harm for investors (lenders): the secondary...
Register now for FIN Live: 9 September
FIN subscribers will already have received an email enabling them to register for our webinar at 10:00 on 9 September, at which Lucy Hadrill, Emma Radmore and Peter Warcup will cover FCA’s business plan, possible...
FCA updates on SCA
FCA has updated its webpage on SCA, to confirm its decision to extend the deadline for full SCA compliance for e-commerce transactions to 14 March 2022. However, it also stresses its expectation that if firms can apply...
Court considers “by way of business” test
The High Court has considered the scope of the “by way of business” test for the purposes of FSMA. Mr and Mrs A were involved in property development. They took a loan from a Mr P when they were unable to...
FCA consults on 2021/22 fees and levies
FCA has opened a consultation on the following for the next financial year (2021/22): its periodic fees rates; further FCA fees policy proposals; the Financial Ombudsman Service general levy; the Money and Pensions...
Parliament publishes FS Bill Lords amendments
Parliament has published a full list of amendments made at the Lords Report stage of the Financial Services Bill. These include: requiring FCA to have regard to the principle that firms should not benefit from...
Regulators warn on deposit aggregators
PRA and FCA have written a Dear CEO letter warning firms of the risks associated with the increasing volumes of deposits placed via deposit aggregators. The letter says the regulators do not want to stifle innovation or...
Up next from FCA
FCA’s most recent Policy Development Update promises, by the end of April, only the rates proposals for 2021/22. The other planned consultation, on exit fees in investment platforms, has no scheduled date and will...
FS Bill amendments for Report stage
Among the amendments to the FS Bill to be discussed at report stage are clauses that: strengthen FCA’s consumer protection objective by requiring it to make rules imposing a duty of care owed by authorised persons...
FCA Publish consultation on CMC Charging
The FCA has published CP21/1: restricting CMC charges for financial services and products claims. The consultation looks to: address consumer harm by restricting the fees that a consumer can be charged for non-PPI...
Government calls for views on cross-border financial services framework
Treasury has published a call for evidence asking for views on the UK’s framework for cross-border financial services. Treasury wants to understand how the current overseas framework supports the UK’s...
FCA delays SEAR response date
FCA has updated its list of activities that have been delayed, or have changed deadlines. It has delayed the response date for its paper on the introduction of the SEAR to 15 December (from 1 October). It has still not...
UK Finance backs FCA mortgage plans
UK Finance is supportive of FCA’s plans for additional guidance to firms on mortgages and COVID-19. It says the industry has always said it is better fora customer who can afford payments to continue to make...
Treasury publishes annual AML/CFT supervision report
Treasury has published the annual report for AML and CFT for 2018-19. The report looks at the work done on supervisory activities and on promoting and ensuring compliance. There is a section devoted to the FATF key...
FCA adds more BI documents
FCA has now published the transcript of day 8 of its Business Interruption insurance test case and a number of supplementary notes.
Mortgage prisoners: FCA call for for mortgage intermediaries willing to help
Further to the FCA’s recent change to the rules around mortgage prisoners, they are now looking for mortgage intermediaries to sign up to become part of the new journey these customers can go through. The FCA see...
PRA release statement on the approach to the application of the Matching Adjustment during Covid-19
The PRA has released a statement (7 July 2020) to insurers on the application of the matching adjustment (MA) during Covid-19. The PRA considers that the MA has functioned as intended thus far throughout the Covid-19...
Payday Lending Market Investigation Order 2015: CMA secures loan write-off from payday lender
The CMA have written to Shelby Finance Limited regarding breaches of Part 4 of the Payday Lending Market Investigation Order 2015 (the “Order”). Shelby Finance breached the Order by failing to send out...
PSR confirms widespread implementation of Confirmation of Payee
The PSR have confirmed that from today (1 July 2020), there is now widespread coverage of Confirmation of Payee (CoP). This is the fraud prevention tool which allows people to check the name of who they want to pay...
FCA and PSR publish update on access to cash
The FCA and PSR have today published more information on their joint work to map access to cash and how this will shape their future work in this area. This is a follow up to their joint statement which was published on...
FCA publish statement on Wirecard
On 29th June the FCA provided written consent to allow Wirecard to resume issuing e-money and providing payment services on 29th June. The restriction on activities lifted today (30 June). This means that Wirecard can...
European Commission report on impact of Interchange Fee Regulation
On 29 June 2020, the European Commission published a report on the impact of interchange fees for card-based payment transactions which entered into force in June 2015 (the Interchange Fee Regulation (IFR)). The IFR...
Access to Cash: FCA and PSR publish their approach
Access to cash is a shared priority between HM Treasury, the Bank of England, the FCA and the PSR. On 16th June, the PSR and FCA published a joint statement on their approach to Access to Cash. Covid-19 The Statement...
Covid 19 – FCA confirms additional support measures for mortgage customers
Following its proposal published on 22nd May, the FCA has today (2nd June 2020) confirmed its new guidance for firms on how to deal with mortgage customers who are struggling financially as a result of Covid-19. The...
Covid 19 – FCA publishes proposed updated guidance for mortgages
On 22nd May, the FCA outlined its proposed additional guidance (following the original guidance on 20 March) for mortgage lenders, mortgage administrators, home purchase providers and home purchase administrators, in...
Corporate Insolvency and Governance Bill 2020
We have summarised the key proposals of the Corporate Insolvency and Governance Bill, published on 20 May.
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
SCA E-Commerce deadline extended
The FCA have today extended the deadline for firms to implement their e-commerce Secure Customer Authentication (SCA) by 6 months from 14 March 2021 to 14 September 2021. This is to minimise potential disruption to...
How does CLBILS work?
We have written an article on how the Coronavirus Large Business Interruption Loan Scheme works.
Treasury Committee progresses Covid-19 inquiry
Following its call for evidence on 18 March, the Treasury Committee now has terms of reference for its inquiry into the economic impact of Covid-19 and will be looking at the operational effectiveness, cost and...
CMA writes to Metro Bank on breaches of the Retail Banking Order
The CMA has written to Metro Bank’s CEO after the bank broke an Order requiring it to send customers text alerts before charging them for going into an unarranged overdraft, giving them time to act and...
Update on PSR Call for Input (CP20/2) on Payments Architecture
The PSR published an update today confirming that it will now be closing its call for input into competition and innovation in the UK’s new payments architecture on Monday 1 May 2020 at 5pm. Responses should be emailed...
Overdrafts and Coronavirus: New Rules
As noted earlier, the FCA has published the new rules that firms require to implement by 14 April 2020. In relation to the overdrafts, the FCA has implemented two measures (1) interest free overdrafts and (2) overdraft...
Regulators clarify SMCR obligations during Covid-19
PRA and FCA set out their expectations on dual-regulated firms under the SMCR. The regulators say they recognise firms will have to keep their governance arrangements under review, and intend to be flexible. It notes...
PSR publishes Annual Plan and Budget for 2020/2021
The Payment Systems Regulator (PSR) has published its annual plan and budget, which sets out its key aims and activities for the year 2020/21 alongside its expected costs. The PSR acknowledges that, due to the impacts...
Regulator Covid-19 update 31 March
Payment Services and SCA Today, the FCA has published an updated version of its webpage on strong customer authentication (SCA) under the Payment Services Regulations 2017 (PSRs 2017). Protecting customers –...
Regulators publish 2020/2021 MELL
PRA has published a feedback statement and final rules on the FSCS Management Expenses Levy Limit (MELL) for 2020/2021. In CP 1/20, the PRA and FCA consulted on a proposed MELL of £83.2 million for 2020/21, which...
FCA delays Directory publication
FCA had been due to publish the initial directory of certified and assessed persons on its Register at the end of March, but is now delaying it for at least a month. Dual-regulated firms had had to submit their data for...
Annual increase to FOS award limit confirmed
The FOS award limit is the maximum amount FOS can require a firm to pay when it upholds complaints. This limit is adjusted each year in line with inflation. From 1 April 2020, the new award limit will be: £355,000 for...
PSR release Confirmation of Payee update in light of Covid-19
On 20 March, the PSR released an update on Confirmation of Payee (CoP) in light of Covid-19. The PSR have considered their regulatory approach and all things considered have advised the directed banks that if they are...
PSR update on card-acquiring market review
On 16 March, the Payment System Regulator (PSR) released an update on their publication of the interim report on card-acquiring services. It was originally thought that the report would be published in late 2019 but it...
EBA sets out 2020 priorities for digital finance
On 3 March 2020, the EBA published a speech by José Manuel Campa, EBA Chair, from the 4th Annual Conference on Fintech and Digital Innovation: Delivering the Future. Various areas of digital finance including the...
New FCA webpage on PSPs
The FCA have today published a new page on their website on payment service providers (PSPs). The page is aimed at consumers and explains the different kinds of PSPs, and the protections afforded to consumers when...
Climate Change and Financial Services: COP26 Private Finance Agenda launched
On 27th February, Mark Carney launched the ‘COP26 Private Finance Agenda’ at the Guildhall in London. The overarching goal of the Agenda is that every professional financial decision will need to take climate change...
Unfair Treatment lands Moneybarn big fine
The FCA announced today that it was imposing a £2.77 million fine on Moneybarn Limited for not treating customers fairly between 1 April 2014 and 4 October 2017. The car finance provider had failed to provide adequate...
FCA writes to credit brokers
The FCA wrote to credit brokers on 13 February 2020 identifying the key drivers of harm within the credit broking portfolio. These include:- failure to understand regulatory requirements; poor oversight of staff and...
UK regulators announce data reforms
The FCA has released its new Data Strategy which outlines plans to develop its data capabilities through a renewed focus on the use of advanced analytics and automation techniques. The FCA hopes this strategy, an...
FCA publishes IDD general good table
FCA has published on its website the IDD “general good” rules that apply to incoming firms. The table refers to the existing guidance in SUP 13A Annex 1, and notes that many parts of FCA’s rules apply...
FCA secures £291,070 confiscation order against convicted fraudster
The FCA has issued a press release confirming that a confiscation order of £291,070.36 has been obtained against a convicted fraudster. Barry Starling is already serving a 5 years’ prison sentence for defrauding...
FCA publishes GI distribution chain guidance
FCA has published its finalised guidance for general insurance product manufacturers and distributors on the distribution chain. The guidance follows the findings from FCA’s thematic review in 2017 and 2018, and...
PRA tells GI firms of focus areas
The PRA has published a ‘Dear CEO’ letter detailing the PRA’s priority areas of supervisory focus for general insurance firms. These include: Reserve adequacy and associated reserving governance and...
Prudential appeals annuity transfer judgment
Prudential Plc has confirmed that it has lodged an appeal against the High Court’s refusal to approve the transfer of £11.2 billion worth of annuities from the Prudential Assurance Company to Rothesay Life. The...
PSR update on LINK interchange fees
On 9 September 2019, the PSR published a document setting out (1) the responses it had received to its call for views on the structure of LINK interchange fees and (2) a summary of the roundtable event which discussed...
No strong case to merge Ombudsmen
“There is not a strong case to merge TPO and FOS at the present time” is the conclusion of a tailored review of the Pensions Ombudsman (TPO) published by the DWP. A merger between the two Ombudsmen...
FCA tells CMCs to raise advertising standards
The FCA has conducted a review of financial promotions issued by CMCs. CMCs are required to provide information to consumers that is fair, clear and not misleading under rules that were introduced in April. The rules...
High Court refuses Prudential’s annuity transfer
The court process is not merely a “rubber stamping” exercise. The High Court has refused to sanction the transfer of £11.2 billion worth of annuities from the Prudential Assurance Company (PAC) to Rothesay...
ASA decisions on gender stereotyping
Nicky Strong has written an article and commented on the ASA rulings on gender stereotyping. You can read her comments here.
PRA sets out their approach to enforcement
In a recent speech, Miles Bake, head of the PRA’s enforcement and litigation legal division, provided insight into: the PRA’s rationale for enforcement recent examples of enforcement action key themes; and...
FCA’s Final Guidance on Cryptoassets published
Having issued a consultation earlier this year on its proposed guidance on categorisation of cryptoassets and the perimeter of regulated activities, the FCA has now published its finalised guidance. The FCA notes that...
FMLC notes uncertainty in MLD5 definition of ‘virtual currencies’
In their (late) response to the consultation of the transposition of the Fifth Money Laundering Directive into UK law, the Financial Markets Law Committee has alerted Treasury to a potentially unintended consequence in...
FCA publishes regulatory data transfer agreement
FCA has released the agreement setting out the administrative arrangements for the transfer of personal data between EEA and non-EEA authorities, with its signature page.
FCA Alternative to High-cost Credit Report
The FCA published its report on Alternatives to High-cost Credit on 22 July 2019. The report highlights that many people turn to high cost credit due to them not having access to mainstream credit due to factors such...
Regulatory framework review underway
The Chancellor has launched the first phase of the Financial Services Future Regulatory Framework review by publishing a call for evidence that looks primarily at how co-ordination between regulatory authorities could...
EU Council adopts crowdfunding position
The Council of the EU has adopted a position it hopes will make it easier for crowdfunding platforms to provide services across the EU, by setting minimum requirements that the platforms must meet and harmonising...
PRA proposes minor form changes
PRA’s latest Occasional Consultation Paper proposes minor changes to miscellaneous Rulebook Parts, Supervisory Statements and templates and LOG files in respect of: Solvency II: The quality of capital instruments...
IUA publishes cyber exclusion clauses
The International Underwriting Association (IUA) has published two new cyber exclusion clauses: Cyber Loss Absolute Exclusion Clause (IUA 09-081): provides a broad exclusion against losses arising from the use of a...
Paperless airports and strategic partnerships: what’s ripe for investment in fintech
Imagine walking into an airport without the need to use your passport. Mad right? But in reality, this is already happening. AI and the provision of strategic relationships by investors in the fintech sector are making...
MEPs back proportional rules for investment firms
MEPs from ECON have backed the Commission’s proposal for a proportionate regime for smaller, non-systemic investment firms. The proposals suggest that firms’ whose total average monthly assets over a 12...
EP publishes draft fund marketing report
The EP has published draft reports on the Commission’s proposals relating to fund marketing. The key concern of the rapporteur, Wolf Klinz, is that while it is a good idea to make pre-marketing to professional...
FCA publishes direction on recognised overseas investment exchanges
The Treasury is not planning to include EEA market operators in the proposed arrangements enabling incoming firms and businesses to continue to operate immediately after Brexit. Accordingly if EEA market operators are...
European Parliament resolution on the relationships between the EU and third countries concerning financial services regulation and supervision
The European Parliament has voted in plenary to adopt a resolution on regulatory and supervisory relationships between EU and third countries. In addition, it published a provisional edition of the resolution. In...
Carney and Cunliffe to continue in post
Treasury and the BoE have announced that Mark Carney is to carry on in his role as Governor of the Bank until 31 January 2020, an extension of 7 months to his originally agreed term, while Sir Jon Cunliffe, deputy...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation focuses on SUP. FCA proposes changes that will update the Gabriel validation rule and FCA guidance on the capital adequacy form for APIs, and update its supervisory principles...
Treasury updates Brexit draft laws
Treasury has published further drafts of Brexit-related statutory instruments: the EEA Passport Rights (Amendment, etc, and Transitional Provisions)(EU Exit) Regulations 2018 address the necessary amendments to...
FCA appoints new competition director
FCA has appointed Sheldon Mills, currently senior director of mergers and state aid at the CMA, as its new director of competition. He will take up the role in November.
ECON calls for equivalence reform
The Committee on Economic and Monetary Affairs has published a report on relationships between the EU and third countries on financial services regulation and supervision. The report calls for a Resolution requiring the...
Pakistan added to MLD4 high risk list
The European Commission has adopted a Delegated Regulation adding Pakistan to the list of high-risk third countries under MLD4. Member States will be bound to require application of EDD when dealing with any persons...
Treasury publishes CRR Brexit regulations
The latest draft Regulations anticipating Brexit relate to capital resources requirements. The draft Capital Requirements (Amendment)(EU Exit) Regulations 2018 are intended to make sure the CRR can continue to operate...
FCA consults on CMC costs and fees
FCA is consulting on how it proposes to set fees to recover its costs for setting up the regulatory regime for claims management companies and for ongoing supervision of the sector. The consultation covers fees under...