In the case of Portal Financial Services LLP v Financial Ombudsman Service Limited [2022] EWHC 710 (Admin) the court has, on appeal, refused Portal permission to apply for Judicial Review of 16 decisions of FOS. The...
Category - Uncategorized
FIN. TeamPRA updates on capital arbitrage transactions approach
The PRA has issued a statement acknowledging that some PRA-regulated firms have conducted (or may be considering doing so) deficit reduction transactions with their defined benefit pension schemes that are structured to...
Emma RadmorePRA issues discussion paper on supporting liquid asset usability
PRA has today issued a discussion paper on supporting liquid asset usability. In response to the global financial crisis 2007/2008, banks were required to have a large enough stock of HQLA to meet their payment...
Harshil PatelCMA issues SME banking directions to HSBC
CMA has issued directions to HSBC under the SME banking undertakings 2002. The directions stem from breaches notified over the past 18 months in respect of 221 loans impacting 204 customers since 2002. They primarily...
Emma RadmoreEIOPA 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...
BoE to consult on Basel 3.1 at end of 2022
BoE has confirmed that it is continuing to develop proposals to implement Basel 3.1, following the two PRA policy statements of 2021. It notes that the timing of implementation was dependent on a number of factors, not...
HM Treasury publishes ringfencing Review
In 2020, the Treasury appointed an independent panel to: review the operation of the legislation related to ring-fencing; and review banks’ proprietary trading activities following a statutory report from the PRA...
APP Fraud and the extent of the Banks Duty – to be determined at trial
In the case of Philipp v Barclays Bank UK plc [2022] EWCA Civ 318, the Court of Appeal has allowed the appeal from Mrs Philipp against the decision of the High Court in 2021 to give judgment to Barclays Bank UK plc on...
PRA Occasional Consultation on minor changes
The PRA has issued a Consultation Paper setting out proposals to make minor amendments to UK Technical Standards (UKTS), PRA rules, supervisory statements, Legacy Supervisory Statements, and a Statement of Policy...
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...
IRSG criticises CRD6
The International Regulatory Strategy Group (IRSG) has published a narrative on the European Commission’s proposal for new rules for third country providers of banking services as part of the EU Capital...
PRA consults on definition of capital
The PRA has published a Consultation Paper which proposes updates to PRA SS 7/13 ‘Definition of capital (CRR firms). The proposed rules are set out in full in Appendix 3. This suggestion is part of the broader...
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...
Quincecare Duty – Supreme Court Appeal
The Court of Appeal decision in Stanford International Bank Ltd (in liquidation) v HSBC plc [2021] EWCA Civ 535 comes before the Supreme Court this week as SIB appeal the decision to strike out the loss claim it...
PRA sets out supervisory priorities for 2022
The PRA has sent Dear CEO letters to PRA-regulated international banks, insurance firms and UK deposit-takers setting out its supervisory priorities for 2022. For banks, the PRA’s priorities relate to: Financial...
FCA outlines new authorisation fee structure
The FCA has set out the new structure for authorisation application fees which takes effect on 24 January 2022. The current charges are being condensed into 10 simple pricing categories and the following additional...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
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...
PRA publishes feedback on UK prudential framework
The PRA has published a feedback statement summarising the responses to Discussion Paper (DP) 1/21, which set out the PRA’s proposals for developing a simpler prudential framework for non-systemic banks and...
PRA updates on the 2022 cyber stress test
The PRA has announced that it will invite a number of firms to participate in a voluntary cyber stress test. The stress test will focus on a severe data integrity incident as the disruption scenario and will test...
PRA publishes CRR mapping table
PRA has published a document showing which CRR provisions that Treasury has revoked since Brexit where PRA has made its own rules on the revoked matters.
FMLC reports on UK bank ring-fencing legislation legal uncertainties
Legislation requiring UK banks to separate the provision of core retail services from other activities within their groups has been in force since 1 January 2019. This so-called “bank ring-fencing regime”...
PRA publishes responses to CP13/21 occasional consultation paper
The PRA has published a policy statement (PS25/21) which sets out its final policy on the various proposals it consulted on in occasional paper CP13/21. These proposals included: For banks, building societies and PRA...
Government sets out net zero transition plans
The government has set out its plans for the UK to be the world’s first net zero aligned financial centre and has called for other countries to follow suit. The government has confirmed it will be introducing...
EU Banking Package 2021
The European Commission has today adopted a review of the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) to ensure that EU banks become more resilient to potential future economic...
UNEPFI publishes collective progress report on principles for responsible banking
The UN Environmental Programme Finance Initiative (UNEPFI) has published a collective progress report providing an update on the progress made by more than 200 signatories in implementing the Principles for Responsible...
PRA publishes final rules on Basel implementation
Following the publication of near-final rules in July, the PRA has published a policy statement (PS) setting out its CRR rule instrument to implement part of the Basel standards that still need to be implemented in the...
CMA to take no action against Lloyds for Retail Banking Order breach
CMA has confirmed it will not be taking any further action against Lloyds Bank following the bank’s failure to display required information in relation to SME loans on one page of its website, which potentially...
PRA consults on trading activity wind-down
The Prudential Regulation Authority’s (PRA) has published the Consultation Paper CP20/21: “Trading activity wind-down“, which sets out the proposed expectations in respect of firms’ engagement in trading...
PRA policy statement on UK leverage ratio framework
The Bank of England has published the Prudential Regulation Authority (PRA) policy statement PS21/21, which contains feedback from the Financial Policy Committee (FPC) and the PRA on responses to the Consultation Paper...
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...
CMA welcomes new power to tackle competition and consumer law breaches
The Competition and Markets Authority (CMA) welcomes the Government’s proposals in publishing its responses to the two recent consultations: “Reforming competition and consumer policy“ and “A new...
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…...
FCA consults on decisions on use of LIBOR
FCA is consulting on its proposed decisions to use its powers under the amended Benchmarks Regulation for certain LIBOR settings. It seeks views on whether and how to permit legacy use of 1 month, 3 month and 6 month...
Up next from the regulators
Nikhil Rathi and Sam Woods, CEOs of the FCA and PRA respectively, have set out the regulators’ current areas of focus. Highlights from Mr Rathi’s speech include that the FCA: is collaborating with...
Banks benefit from early adoption of green policies, says EBA
The BEA has published the results of its economy-wide stress test, which tested the impact of climate change on over 4 million firms worldwide and 1,600 euro area banks. The findings show that: firms and banks are to be...
Basel Committee calls for greater resilience against cyber threats
The Basel Committee has published a newsletter encouraging banks to adopt more resilient measures relating to cyber security. This was triggered in part by the increase in cyber threats since the beginning of the COVID...
Stick to the Basel III agreement, says EU
EU prudential supervisors and central banks have written to the EU Commission in support of a full, timely and consistent implementation of the Basel III agreement, saying that diluting the framework would not be in the...
Andrew Bailey writes to Chancellor on prudential regulation
PRA has published Andrew Bailey’s response to the Chancellor on Treasury’s recommendations on the PRA’s remit. He notes PRA’s work to ensure the Brexit transition period ended without any...
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...
Next steps for the Consumer Duty
The FCA’s consultation on a new Consumer Duty has now closed and the FCA has outlined its next steps. After considering the responses, the FCA will set out the proposed text for any new rules in a second...
EBA publishes stress test results
The EBA has published the results of its 2021 EU-wide stress test which involved 50 banks from 15 EU and EEA countries. The results show that under a very severe scenario, the EU banking sector would stay above a CET1...
FCA updates on platforms portfolio strategy
FCA has published an update to its strategy for its platforms portfolio of firms. It first set out its major concerns in February 2020, and has written to firms to update them on its focus going forwards. Its key...
Treasury consults on SMCR for Financial Market Infrastructures
HM Treasury is consulting on proposals to create an SMCR for financial market infrastructures (FMIs). The proposed regime would mirror the existing SMCR and would give the BoE new rule-making, supervisory and...
FPC meets to discuss financial stability
The BoE has published the record of the Financial Policy Committee’s (FPC) meeting held on 30 June 2021. Meeting highlights include: The UK financial system has provided support to households and businesses to...
PRA updates on shareholder distributions by large UK banks
On 10 December 2020, the PRA published a statement on “Capital distributions by large UK banks” in which it set out guardrails for distributions to ordinary shareholders in relation to full-year 2020 results...
BoE publishes Financial Stability Report July 2021
BoE has published the latest Financial Stability Report. Key messages include: pleasing strength in the banking markets to support the recovery of the economy – banks are able to lend to households and businesses...
PRA policy statement on Basel implementation
Following its consultation earlier this year, the PRA has published a policy statement (PS) on its proposed new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK...
PRA Policy Statement: Regulated fees and levies: rates for 2021/22
The PRA has published a policy statement which provides feedback to responses to the consultation paper ‘Regulated fees and levies: rates proposals 2021/22’. The policy statement also contains the PRA’s...
EBA reports on treatment of third country branches
The EBA has published a report on the treatment of incoming third country branches of credit institutions under the national law of Member States. The report sets out 14 high-level policy recommendations for further...
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
ECB consults on “fit and proper”
ECB has issued a consultation draft of its requirements when assessing members of management boards and those holding key functions within regulated institutions as “fit and proper”. It asks for comment by ...
FSB overview of responses to public consultation on outsourcing and third-party relationships
The Financial Stability Board (FSB) has published an overview of the responses it received to its November 2020 discussion paper on regulatory and supervisory issues relating to outsourcing and third-party relationships...
Prime Minister speaks with financial services leaders
Boris Johnson hosted a virtual roundtable with financial services leaders alongside the Chancellor Rishi Sunak and the BoE Governor Andrew Bailey. Topics discussed include: boosting home ownership by transforming...
PRA publishes policy statements on OCIR policy
In October 2020, BoE and PRA consulted on a package of proposals relating to operational continuity in resolution (OCIR) policy and the May 2020 resolution measures, to ease operational burdens on firms in response to...
UK-US Financial Regulatory Working Group issues joint statement
The Financial Regulatory Working Group has published a joint statement on its meeting on 20 May. The meeting focussed on seven key themes: international and bilateral cooperation; sustainable finance; updates on...
PRA publishes 2021/22 Business Plan
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2021/22. The PRA’s strategy will be delivered through the following strategic goals: Have in place robust prudential standards and...
FCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...
FCA publishes latest Regulatory Initiatives Grid
FCA has published the third edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. This edition marks the end of a successful one-year pilot exercise – the FCA has confirmed that...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
BoE speech: operational resilience – outcomes in practice
Lyndon Nelson, Deputy CEO & Executive Director, Regulatory Operations and Supervisory Risk Specialists at the BoE, delivered a speech at the UK Finance Operational Resilience Webinar on recent policy on operational...
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...
Stephen WilsonParliament 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...
Lender’s duties limited in asset disposal
In a helpful decision for Banks and lenders, the Court of Appeal decision in Morley (trading as Morley Estates) v Royal Bank of Scotland plc [2021] EWCA Civ 338 confirmed the limited extent of the duties a lender owes...
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...
BCBS publishes operational resilience Principles
The Basel Committee on Bank Supervision (“BCBS“) has published a report setting out its “Principles for Operational Resilience”. In the report, BCBS notes that the Covid-19 pandemic has...
ESAs publish report on complaints-handling
The Joint Committee of three European Supervisory Authorities (EBA, EIOPA and ESMA) (ESAs) have published a report on the application of their guidelines on complaints-handling. The report assesses how the guidelines...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
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...
LSB considers the customer journey in a digital world
In January this year the Lending Standards Board (LSB) released a thought piece on the customer journey in the digital space, with the aim of promoting best practice and good customer outcomes in the provision of...
Proprietary injunction and Bankers Trust Order made in fraud case involving cryptocurrency
In the unreported case of Ion Science Ltd v Persons unknown and others (21 December 2020 – Commercial Court), the Commercial Court granted a proprietary injunction, worldwide freezing order and ancillary...
BoE writes to banks on resolvability framework
BoE has written to banks on resolvability assessment framework preparations. The framework set out what banks need to do for the BoE to consider them “resolvable”. Submissions are due in October, and BoE is...
PRA reports on positive iNED meetings
PRA has written a letter to iNEDs, who participated in its pilot programme of virtual meetings. The meetings discussed current challenges, and PRA was pleased that, in principle: iNEDs thought firms had reacted well to...
PRA consults on Basel implementation
PRA is proposing a new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK. The consultation forms part of a wider exercise to transfer the text of existing rules...
National Courts can order parties to re-negotiate unfair terms, says the CJEU
In Banca B. SA v A.A.A (Case C 269/19) ECLI:EU:C:2020:954 the First Chamber of the Court of Justice of the European Union (CJEU) has held that National Courts can facilitate negotiations to replace an unfair term where...
The Unfair Contract Terms Directive is challenged but holds firm
In the case of Dexia Nederland BV v XXX and Z , the Court of Justice of the European Union (CJEU) gave judgment in two cases relating to the provisions of The Unfair Contract Terms Directive (93/13/EEC). The directive...
Treasury publishes ToR for ring-fencing and proprietary trading review
Treasury has announced the members of the panel for the review into ring-fencing and proprietary trading. It has also published the panel terms of reference. The panel has around a year to report on the impact of ring...
EBA begins 2021 stress test
Following the postponement of the 2020 exercise due to the pandemic, this year’s EU-wide stress test will provide valuable input for assessing the resilience of the European banking sector. The results might also...
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...
Quincecare Duty is limited to agents of the customer and does not extend to individual customers
In a decision that will be welcomed by the banking industry, the High Court in the case of Philipp v Barclays Bank UK plc [2021] EWHC 10 (Comm) has confirmed that the “Quincecare Duty” placed upon banks is...
UK Government announces expansion of the Dormant Assets Scheme
The UK Government has announced the expansion of the Dormant Assets Scheme, which is a major boost as the UK recovers from the coronavirus pandemic. £800 million is set to be made available to communities across the UK...
PRA consults on supervision of international banks
The PRA is consulting on proposals regarding its approach to supervising the UK activities of PRA-authorised banks and designated investment firms that are headquartered outside of the UK. This includes those firms...
Pay.UK reports on impact of Covid-19 on bank account switching
Pay.UK has published its report on how the Covid-19 pandemic has affected switching attitudes and behaviours in the UK. The report explains that research commissioned by the Current Account Switch Service (CASS)...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
PRA finalises BRRD II rules
PRA has published its policy statement and final guidance on BRRD II. it has also published its final policy in relation to the amended Contractual Recognition of Bail in and amended Stay in Resolution parts of its...
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...
BoE Financial Stability Report
The Bank of England published the Financial Stability Report for December. The report sets out the Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or...
PRA issues statement on capital distributions
In July, the PRA announced its intention to undertake an assessment of large UK banks’ distribution plans for 2020. The PRA has now completed that assessment and, noting that economic uncertainty as a result of...
EBA reports on Basel III implementation
The EBA has published a report on the impact of implementing the final Basel III reforms in the EU. The results do not reflect the economic impact of the Covid-19 pandemic as the reference date for this assessment is...
PRA makes CRD V changes
PRA has published a policy statement on further implementation of CRD V . It has also published its near-final rules which will not be changed, but PRA cannot make the rules until 28 December. The rules will make...
PRA consults on designating firms within certain banking UK consolidation groups
The PRA has published a consultation paper setting out its proposed approach to designating entities within certain banking UK consolidation groups as responsible for ensuring that consolidated prudential requirements...
PRA publishes feedback on recovery planning consultation
The PRA has published a Policy Statement providing feedback to responses to the PRA’s consultation on simplified recovery planning, as well as the PRA’s final policy decision. The respondents were supportive...