The FCA has published the Financial Services and Regulatory Initiatives Forum’s latest biannual Regulatory Initiatives Grid. This will allow the financial services industry and other stakeholders to understand and...
Category - Uncategorized
FIN. TeamFSB publishes 2023 G-SIB list
FSB has published the 2023 list of globally systemically important banks (G-SIBs) using end-2022 data and applying the assessment methodology designed by the Basel Committee on Banking Supervision (BCBS). Compared to...
Basel Committee publishes discussion paper on digital fraud
The Basel Committee on Banking Supervision has issued a discussion paper on digital fraud and banking. The paper is a high-level assessment of the supervisory and financial stability implications of digital fraud for...
UK Finance responds on SME lending
UK Finance has responded to the Treasury Select Committee call for evidence on availability of finance for SMEs. Its response notes that 2022 saw the highest SME lending since comparable records began in 2012, on the...
Emma RadmoreRegulators consult on BoE levy regulations
the BoE and Treasury are consulting on how to implement the new levy based arrangement which will replace the Cash Ratio Deposit scheme. Deposit-taking firms (except credit unions and friendly societies) with eligible...
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...
Estonian bank business transfer scheme permitted
The court has sanctioned a business transfer scheme under section 111 FSMA for Estonian bank AS LHV Pank (LHV) to transfer the deposit-taking, banking and regulated payment services business currently being carried on...
Laura WilesFCA 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...
PRA consults on rules replacing retained Securitisation Regulation
PRA is consulting on proposed rules to replace retained EU law requirements on PRA-authorised persons contained in provisions of the Securitisation Regulation. Following the enactment of FSMA 2023, Treasury plans that...
CME publishes annual report on SME banking behavioural undertakings compliance
CMA has published its annual report on compliance with the SME banking behavioural undertakings 2002, covering the period from 1 July 2021 to 30 June 2022. The report analyses how well 8 UK banks have complied with...
Supreme Court rules in favour of Barclays in APP fraud case
The Supreme Court has handed down its decision in the case of Philipp v Barclays Bank UK PLC [2023] UKSC 25. Barclays had appealed a decision from the Court of Appeal that it owed the customer a contractual duty not to...
FPC publishes Financial Stability Report
BoE has published the July 2023 Financial Stability Report, setting out FPC’s view on the stability of the UK financial system and what it is doing to remove or reduce any risks to it. FPC notes that the current...
BIS publishes report on crypto ecosystem and risks
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:...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
LSB publishes SME green finance report
LSB has published a report highlighting challenges in the SME green finance market and exploring how banks and lenders can support their customers to become more sustainable. The report concludes that while demand for...
BCBS consults on core principles for banking supervision
BCBS is consulting on revisions to its Core principles for effective banking supervision (Core Principles). In its April 2022 review, BCBS sought to reflect supervisory and regulatory developments, structural changes in...
Call for evidence on Treasury’s SME finance review
The Treasury Committee has issued a call for evidence as part of its inquiry into the financing of SMEs. On industry issues, the Committee asks: What are the key challenges SMEs face when seeking finance? Through which...
US dollar LIBOR panel ends
The US dollar LIBOR panel has ended, meaning that the overnight and 12-month US dollar LIBOR settings have permanently ceased. All new use of synthetic US dollar LIBOR is now prohibited under the Benchmarks Regulation...
PRA sets fees and levies for 2023/24
Following its April consultation, PRA has published a policy statement confirming the fees and levies payable for the 2023/24 fee year. Respondents welcomed the reduction year-on-year to the Annual Funding Requirement...
PRA consults on solvent exit planning for non-systemic firms
PRA is consulting on expectations on non-systemic banks and building societies in terms of preparing for, and if necessary being able to execute, an orderly exit. It plans to: require firms to prepare for a solvent exit...
BoE launches system-wide exploratory scenario
BoE has launched its first system-wide exploratory scenario exercise. The exercise will include banks, insurers, CCPs and a variety of funds and will look to see how all these market players behave in stressed market...
LSB reviews business lending code
LSB is consulting on its review of the Standards of Lending Practice for business customers. The consultation contains questions relating to: The impact of economic and regulatory developments Protections for customers...
FCA fines ED&F Man for cum-ex trading oversight failings
FCA has fined ED&F Man Capital Markets Ltd £17.2m for serious failings in its oversight of cum-ex trading which allowed it to collect fees to trading strategies that were designed to enable its clients to...
PRA publishes its 2023/24 Business Plan
The PRA Business Plan sets out PRA’s strategy, workplan, and budget for 2023/24. It will be delivered through the following strategic goals: Maintain and build on the safety and soundness of the banking and insurance...
LSB publishes its 2023/24 Business Plan and Budget
The Lending Standards Board (LSB) has published its Business Plan and Budget for 2023/24. Its focus areas this year will include financial resilience and digital journeys, and its ongoing work on the prevention of APP...
PRA censures Wyelands Bank for governance failings
PRA has censured Wyelands Bank Plc for wide-ranging and significant failings in its governance, controls and risk management procedures over a period from the end of 2016 to mid 2020. The failings related to: large...
FCA requires IBA to continue to publish synthetic US dollar LIBOR
Following its November 2022 consultation, FCA has decided to require LIBOR’s administrator, ICE Benchmark Administration Limited (IBA) to continue to publish the 1, 3 and 6 month US dollar LIBOR settings on a...
Government responds on Silicon Valley UK rescue
The BoE and Government have responded to the Treasury Committee’s queries on the collapse and subsequent purchase by HSBC of Silicon Valley Bank UK. BoE was asked how the bank was supervised before its collapse...
FSM Bill 9th Grand Committee session
The 9th Lords Grand Committee session on the FSM Bill took place on 21 March. Topics debated were: the proposal to limit the powers of PRA to prevent a matching adjustment being applied to a portfolio of high risk or...
Government and BoE facilitate sale of Silicon Valley Bank UK to HSBC
On 13 March 2023, Silicon Valley Bank (UK) Ltd (SVB UK) was sold to HSBC for £1, enabling customers of SBV UK to access their deposits and banking services as usual. The sale was facilitated by BoE in consultation with...
BoE consults on the non-performing exposures capital deduction
The BoE (PRA) has published its consultation paper (CP6/23) on the non-performing exposures capital deduction. The PRA is proposing to remove the Common Equity Tier 1 (CET1) deduction in the PRA Rulebook, which relates...
BoE reports on climate risks and regulatory capital frameworks
The BoE has set out its latest thinking on climate-related risks and regulatory capital frameworks. The report includes updates on: capability and regime gaps; capitalisation timelines; and areas for future research and...
SME liaison panel gives BBRS views
Antony Townsend, Chair of the SME liaison panel, has responded to the BBRS Post Implementation Review. The panel is pleased the report recognised the issues the scheme faced. However, the panel is concerned that the...
Treasury calls for evidence on ring-fencing
Treasury has published a call for evidence looking at the practicalities of aligning the ring-fencing and resolution regimes for banks. The proposals build on the Skeoch review, which found that the benefits of ring...
Regulators update Regulatory Initiatives Grid
The Financial Services Regulatory Initiatives Forum has published the sixth edition of the Regulatory Initiatives Grid. The edition was due last November, but has been held back to allow the regulators to consider how...
FCA re-recognises LSB business lending code
FCA has renewed its recognition of LSB’s Standards of Lending Practice for business customers as from 6 February. The recognition expires on 10 February 2026. The standards address lending to SMEs with a turnover...
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...
Stephen WilsonBBRS calls for SMEs to register old complaints
The Business Banking Resolution Service‘s “historical scheme” will close to new registrations on 14 February 2023. The scheme covers complaints first registered between 1 December 2001 and 31 March...
BoE (PRA) publishes Dear CEO Letters – 2023 Priorities for Insurance supervision, International Banks active in the UK, and UK Deposit Takers Supervision
On 10 January 2023, the BoE (PRA) published the following Dear CEO letters outlining its key supervisory priorities for insurers, international banks active in the UK, and UK Deposit Takers in 2023: Insurance...
FSMB completes second reading in Lords
The FSMB had its second reading in the Lords on 10 January. Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...
FCA Publishes Portfolio Strategy Letter for CMCs
The FCA has published its Portfolio Letter outlining its Portfolio Strategy for Claims Management Companies (CMCs). The FCA sets out its updated view of harm and key risks that CMCs pose to their customers, its...
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...
BoE releases annual report on supervision of FMIs
The BoE has published its 2022 annual report on its supervision of financial market infrastructure firms (FMIs). FMIs provide services, such as payments, and networks that facilitate financial transactions. The...
Regulators consult on removing bonus cap limits
The FCA and PRA have released their consultation paper (PRA CP 15/22 | FCA CP22/28) on their joint proposed rule changes to remove the existing limits on the ratio between fixed and variable components of total...
ECB publishes report on climate stress testing
The ECB has published the results of its 2022 climate stress test, which has helped banks to develop climate risk-related stress testing capabilities. The report highlights both physical and transition risks which...
Barclays granted permission to appeal to Supreme Court in APP fraud case
Barclays Bank UK plc has been granted permission to appeal to the Supreme Court in the case of Philipp v Barclays Bank UK plc [2022] EWCA Civ 318. As a reminder, Mrs Philipp issued a claim against Barclays Bank seeking...
FCA to compel extra year of LIBOR publishing
FCA has published a decision notice issued to ICE Benchmark Administration Limited ordering it to continue to publish 3 month sterling LIBOR for another year. The final version was originally due to be published on 30...
BoE consults on wholesale cash distribution
The Bank of England is consulting on how it will use the new powers it expects to get under the FSMB to ensure effective, resilient and sustainable distribution of wholesale cash. The current wholesale distribution...
BoE publishes December 2022 Financial Stability Report
The Bank of England’s Financial Policy Committee (FPC) has published its December 2022 Financial Stability Report setting out its view on the stability of the UK financial system and what it is doing to remove or...
BoE publishes letter responding to Financial Policy Committee’s remit
Andrew Bailey has written to Jeremy Hunt, with the Financial Policy Committee’s response to HM Treasury’s ‘Remit and Recommendations for the Financial Policy Committee’. The letter welcomes the...
Treasury responds on ring-fencing changes
Treasury has published the Government response on the recommendations of the Independent Panel on ring-fencing and proprietary trading. The report had made several recommendations to reduce the rigidity of the regime...
Treasury publishes FS law Brexit strategy
Treasury has published a Policy Paper setting out how it intends to deal with retained EU law in the financial regulatory sector. The Policy Paper says that the FSMA model, with the operationally dependent regulators...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
FSM Bill report stage on 7 December
The FSM Bill is to have its report stage and third reading in Parliament on 7 December, after receiving the Bill with amendments from the Public Bills Committee. It is possible for Parliament to make amendments at...
Treasury and BoE consult on Basel 3.1 implementation
Both HM Treasury and the BoE/PRA have published consultation papers on the implementation of the Basel 3.1 standards. These are expected to be the final elements of the Basel reforms to be implemented following the 2008...
PRA confirms decision to freeze O-SII buffer rates
PRA has issued a statement confirming its decision to maintain firms’ Other Systemically Important Institutions (O-SII) buffer rates for 2022. This means that the O-SII buffer rates will thus be maintained at 2019...
PRA amends approach to identifying O-SIIs
PRA has published a policy statement setting out amendments it will be making to its approach to identifying other systemically important institutions (O-SIIs). The statement also contains PRA’s feedback to the...
FCA launches consultation on ‘synthetic’ US dollar LIBOR
In June 2022, FCA’s consultation CP22/11 sought information on US dollar LIBOR exposures. Having considered these in its latest consultation, FCA considers that there is a case for: requiring publication of the 1...
Harshil PatelRegulators respond to MP on HBOS investigation queries
Sam Woods (PRA) and Nikhil Rathi (FCA) have written to Kevin Hollinrake MP on behalf of the APPG on Fair Business Banking. The regulators have responded to Mr Hollinrake’s questions following the closure of...
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...
PRA’s observations post-administration of the Arena Holdings Group of companies
Following the administration of Arena Holdings Group of companies, the PRA asked banks to provide details of lessons learnt from that event. The PRA has conducted a cross-firm review of banks’ lessons learnt and...
EU agrees plan to implement Basel III reforms
The Council has reached an agreed position on the implementation of the Basel III reforms designed to boost the resilience of banks operating within the EU and strengthen their supervision and risk management. The...
TPT launches ‘gold standard’ for climate transition plans
The Transition Plan Taskforce (TPT) has published its Disclosure Framework and accompanying Implementation Guidance. The Framework makes recommendations for companies and financial institutions to develop gold-standard...
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...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...
Emma RadmoreLaunch 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...
BoE consults on AI discussion paper
The BoE is consulting on its discussion paper about how artificial intelligence (AI) may affect financial regulation. The discussion paper looks at how the current regulatory framework applies to AI; it considers how...
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...
FCA confirms cessation of 1 and 6 month synthetic sterling LIBOR at end-March 2023
FCA required IBA to continue its publication of 1-, 3- and 6-month sterling and yen LIBOR settings for an additional year after end-2021. Following FCA’s consultation earlier this year, the majority of respondents...
BIS calls for swift Basel III implementation
The Basel Committee has reiterated its expectation that all aspects of the Basel Framework should be implemented as consistently and fast as possible. More than 66% of jurisdictions plan to implement all or most of the...
PRA writes to Treasury Committee on “strong and simple”
Sam Woods has written to Mel Stride answering the Treasury Committee’s follow up questions about the Strong and Simple framework. The letter explains that PRA received 19 responses to its consultation and says: in...
The future of Open Banking and the Joint Regulatory Oversight Committee
FCA, PSR, CMA and HM Treasury have published a joint statement on the future of open banking, announcing the creation of a joint regulatory oversight committee. The committee, co-chaired by the FCA’s Executive Director...
Clarity for lenders dealing with borrowers in distress
The Supreme Court has refused the Appellant’s application for permission to appeal against the Court of Appeal’s decision in Morley (t/a Morley Estates) (Appellant) v The Royal Bank of Scotland Plc...
UK Finance supports “simpler-regime”
UK Finance has responded to PRA’s consultation paper on its proposed definition of a simpler-regime firm. It supports the principle, but has suggested it would be appropriate to increase the ceiling below which...
Need more detail on the Financial Services and Markets Bill?
We’ve produced a detailed summary of the key aspects of the Financial Services and Markets Bill, following up on our headline post. While the Bill won’t be having its second reading until September, keep an...
FCA’s CEO speaks on how the UK will regulate for the future
Nikhil Rathi, Chief Executive of the FCA, gave a speech on how it intends to regulate financial services for the future. A different regulator? He stressed that the FCA was: redesigning its operational platform to...
PRA finds evidence that banks are reluctant to use their capital buffers
Victoria Saporta, Executive Director of Prudential Policy, gave a speech discussing banks’ reluctance to use their capital buffers. PRA requires UK banks to hold capital ‘buffers’, but the PRA has found evidence...
BoE provides update on risks from climate change
Anil Kashyap, a member of BoE’s Financial Policy Committee, has delivered a speech about the BoE’s work to ensure UK banks and insurers understand the risks from climate change. He discussed the following...
ECB finds that banks must sharpen their focus on climate risk
The European Central Bank (ECB) has published the results of its 2022 climate risk stress test, which show that banks are not yet sufficiently incorporating climate risk into their stress-testing frameworks and internal...
BoE issues Financial Stability Report for July 2022
The BoE’s Financial Policy Committee (FPC) seeks to ensure that the UK financial system is prepared for and resilient to the wide range of risks it could face. The BoE has published the summary and record of the...
High Court determines that the restructuring of a corporate loan to an individual was not unfair
In Bank of Beirut (UK) Ltd v Moukarzel [2021] EWHC 3777 (Comm), the High Court considered the Bank of Beirut (UK) Ltd’s (Bank’s) application for summary judgment in respect of a counterclaim brought against...
FCA consults on winding down ‘synthetic’ sterling LIBOR
FCA is consulting on winding down the 1, 3 and 6- month synthetic sterling LIBOR settings. As a reminder, FCA, the BoE, other international regulators and industry working groups in the LIBOR currency jurisdictions...
PRA sets fees and levies for 2022/23
Following its consultation in the spring, the PRA has published a policy statement to confirm the final regulated fees and levies rates for 2022/23. The rates meet the PRA’s annual funding requirement for the...
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...
Eurogroup issues statement on the future of the Banking Union
Since its creation in 2014, the Banking Union has made significant progress on an EU single rulebook, concerning the establishment of a new European architecture for supervision and resolution, and on reducing risks. In...
BoE publishes first resolvability assessment of major UK banks
In its first resolvability assessment of 2022, the BoE has found that, if a major UK bank were to fail today, customers would be able to access their accounts and business services as normal. The BoE found that...
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...
Privy Council declines to extend the Quincecare duty to protect beneficial owners of funds
The Privy Council has handed down its decision in Royal Bank of Scotland International LLP (Bank) v JP SPC 4 and another [2022] UKPC 18, in which it confirmed that as a matter of law, banks do not owe a duty of care...
BoE publishes results of 2021 Biennial Exploratory Scenario
The BoE has published the results of the Climate Biennial Exploratory Scenario (CBES). The key findings included: Projections of climate losses are uncertain. UK banks and insurers have made progress but still need to...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
EU reaches deal on DORA
The EU Commission, EU Council and EU Parliament have reached agreement on the Commission’s proposal for a Digital Operational Resilience Act (DORA). The new rules aim to harmonise and strengthen digital...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
PRA issues policy statement on trading activity wind-down
Following the four responses received to its consultation paper, the PRA has published its final policy on trading activity wind down. The policy statement is relevant to all PRA-authorised UK banks, their qualifying...
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...
PRA poses alternative approach to bank capital requirements
PRA CEO, Sam Woods, delivered a speech at City Week 2022 in which he set out “a radical, alternative approach” to bank capital requirements. The proposed approach would involve: a single capital buffer...
PRA publishes Business Plan 2022/23
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2022/23. The PRA’s strategy will be delivered through the following strategic goals: Retain and build on the strength of the banking and...